Business Plan Example

Business Plan
A Requirement In
Elective 1: Entrepreneurial
Management
The Good Chips

( A pack of Happiness and Helathiness )
Prepared by:
BSBA 1A - Group 1
Constantino, Zacchaeus Rayle DC.
Constantino, Zakiya Rayne DC.
Submitted to:
LEALYNNE DELA CRUZ
May 2024
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I. Executive Summary
Introduction
The Good Chips is a business that belongs to the Food Industry for it being a local food store.
It will be owned and managed by four entrepreneurs. The Good Chips will provide a
comfortable and accommodating atmosphere where the customer can receive quality service
and affordable goods. The Good Chips will offer a variety of unique and affordable choices
to the customers and provide new taste. To acquire potential customers the business will have
a physical store and will do deliveries.
Mission
The Good Chips is dedicated to give you a new and improved taste of your ordinary chips.
Serving to deliver the promise of our business. To provide comfort to our customers by
satisfying and complying to their demands. To provide safeness and accommodating service.
Vision
The Good Chips aims to be a well-known brand of chips business in the country by offering
good quality services and products. To make The Good Chips the place of choice that gives
you an option to start healthy living in a delicious way. To be a store that is flexible and
offers the best tasting healthy chips in the Country.
Business Owners
The Two entrepreneurs are namely Mr. Zaccheus Rayle Constantino and Ms. Zakiya Rayne
Dela Cruz. All of them are capable enough in handling a business for they all have
background knowledge in organization and management of a business. Ms.
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Constantino is responsible for cash flows and will be the ones to create the marketing
strategies and promotions while Mr. Constantino will be in charge of the cycle and
preparation of the business and operations.
Products and Services
The Good Chips provides customers with a variety of different kinds of Healthy Chips. The
Good Chips offers a variety of healthy chips originated from different parts of the country
and innovate their own dishes and recipes. They also offer saice perfect for the healthy chips.
To fully satisfy customers the quality of raw materials used are monitored by the owners. The
products are accurate in size and proportions and even can receive freebies in purchasing. It
also comes in an assorted type bag so that the customers can enjoy each flavor we are serving.
The Packaging used is made of papers for the business promotes environment friendly
environment and also for the comfort and convenience of the customers.
Foods
 Healthy Chips
Cucumber Chips
Sweet Potatoes Chips
Apple Chips
Spinach Chips
Eggplant Chips
Carrot Chips
 Sauce
Oregano White Sauce
Red Caesar Sauce
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Services
Walk-in Services
The Good Chips are available in physical stores. In that way, loyal customers will be given
the privilege to avail and receive other freebies when purchasing the chosen product. We give
friendly and accommodating services to our customers.
Delivery Services
Delivery Service will also be offered so that the customers who are too busy to visit the store
will still be able to buy.
Online Shop Service
The products are available to purchase online. Products will be posted through different
social media. The Good Chips are available on facebook for nearby customers. And Shoppee
for distant customers, also it will be posted in Instagram for faster and wider engagement of
the product.
Market
Filipinos are very known for being a snack lover. Snacks are always present on any occasion
and Filipinos love to invent, especially when it comes to food. There are multiple kinds of
chips and we think that we can add a little spice and not just sell ordinary chips. The Good
Chips offers a new flavor that shocks the customers because of its own uniqueness, using
local healthy ingredients it provides healthy benefits also. The target market of our product is
all ages, including the vegetarian and other people who love enjoying healthy foods. We aim
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to attract all ages customers because this is one of the on the go grab snacks. For Filipino
respondents, snacking is viewed primarily as a source of nutrition (74%) Consumers in the
Philippines are looking for fresh snacks which offer health and nutrition benefits. Filipinos
are the most environmentally conscious consumers along with the Vietnamese. More than
half of Filipino respondents say that it is very important that snacks include ingredients that
are organic and 40% prefer to use local herbs.
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II. The Competitive Environment
*Industry Analysis
Porter’s Five Forces Analysis
The company chooses the Porter’s Five Forces Model of Competition to test the
attractiveness of the business.
a.) Threat of New Entrant/Potential Competitors
Assessment: Medium Pressure
The threat of potential competitors is marked as medium pressure. Possible new competitors
can easily enter the market especially when healthy chips become a hit in this area. It will be
easy for other entrepreneurs to enter the market but the threat is not much of a worry since for
now, there are only a few businesses that sell fruits and vegetable chips and it is mostly found
online especially if customers live in Nueva Ecija, so it means the business will attract loyal
customers first other than possible new entrants in the market as it is new to customers’ eyes
in Talavera, Nueva Ecija. Also, The Good Chips have some interesting value propositions
and unique selling propositions that will surely capture the interests of customers, especially
those who love buying online and claiming freebies.
b.) Threat of Substitute Products
Assessment: Low Pressure
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In this time of pandemic, some researcher conducted a survey and it resulted that most
consumers prefer something healthy as their choice of food or snacks, so the threat of
substitute chips is marked as a low pressure. Fruits and vegetables chips are also new to most
customers so “The Good Chips” must promote their products perfectly to attract the
customers in preferring to buy healthy chips instead of some unhealthy junk foods. But since
some people got used to eating junk chips snacks, it can also be a threat to the business. In
terms of The Good Chips’ online services, the threat is some shops who sell different kinds of
chips with lots of high ratings and a high number of chips sold in the Shopee app.
c.) The Bargaining Power of Buyer
The bargaining power of buyer is marked as medium because prices of the chips are already
set to match the level of the existing stores who sell different kinds of chips but the buyer can
get a medium control in terms of available consumer sales promotion especially on the early
days of the store after opening. Healthy chips are not that common so it is just right to have
an affordable price for other customers to try and risk their money for these chips. The
business already had set consumer sales promotion especially on the first days after opening
the store, so consumers gained their power through these incentives.
d.) The Bargaining Power of Supplier
Assessment: Low Pressure
Most customers prefer an acceptable and affordable price to try something new in their
preferences. It is the reason why bargaining power of supplier is low especially on the early
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stage of the business. A fair price for the customer and supplier are set so it is just fine to not
make an increase or decrease in prices except in situations that fruits and vegetables increase
in price that the entrepreneurs of “The Good Chips” can’t reach their targeted profit.
e.) Rivalry Among Existing Firms
There are one competitor in Talavera, Nueva Ecija which is the Savemore and an online
shops in Shopee app which are the Veggie chips and Hope’s Premium Taste. Savemore is a
supermarket and they sell banana, tahong and garlic chips in their specific sections. Veggie
chips in shopee sell a variety of vegetable chips like ampalaya, malunggay, garlic and onion
chips. Hope’s Premium Taste also offers different vegetable chips like ampalaya, garlic and
tahong. It is not so difficult to compete with the other shop because there are more unique and
different healthy chips in The Good Chips that the customers will be able to try and discover
plus the two sauces that will make the healthy chips more delicious. The thing that the
entrepreneurs are worried about is the fact that customers already got used to buying chips in
Savemore. Veggie chips and Hope’s Premium Taste have good ratings and it already sold a
lot of chips online through the Shopee app.
Competitive Matrix
To know in full details the status of business against its competitors from Talavera, Nueva
Ecija and online shops, the entrepreneurs created a competitive matrix containing the factors
that the business needs to success and how important it is.
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Critical Success Factors Rating The Good Savemore Hope’s Veggie
Chips Premium Taste Chips
Low Price 15 15 10 15 15
Variety of fruits and 10 10 8 10 10
vegetable chips
Uniqueness of chips 12 12 8 10 10
offered
Employee Standards 10 10 8 8 8
Packaging 10 10 8 8 8
Safety of Customers 10 10 10 10 10
Services 10 10 8 8 8
Promos 10 10 8 8 8
Interpretations
 The Good Chips, Hope’s Premium Taste and Veggie Chips have low prices and their
prices are applicable to the grams of every pack of chips, while Savemore have higher
prices than other stores who sell healthy chips.
 The Good Chips, Hope’s Premium Taste and Veggie Chips offer a lot of different
types of fruit and vegetable chips while a few kinds of healthy chips are offered at
Savemore.
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 The Good Chips offer the most unique kinds of healthy chips because the
entrepreneurs carefully think of new chips to capture customers’ interest and they also
offer two types of sauce. Veggie chips and Hope’s Premium Taste have almost the
same type of chips being offered to the public. Savemore has limited healthy chips
offered and what they’re offering is common healthy chips.
 In terms of employee standards, The Good Chips is the only business that requires
some professional employees because the business is the one who makes their own
chips while the other three competitors don't need professional employees in making
healthy chips because they just got their healthy chips from a supplier who are also
professionals.
 The Good Chips have an eco-friendly packaging while the three competitors offer
some normal and usual packaging of healthy chips.
 All four businesses have high ratings in terms of safety because physical stores of the
Good Chips and Savemore have CCTV and security guards while online stores in
Shopee ensure a safe and hassle free transaction.
 The Good Chips have more services offered as they offer ordering through online,
delivery and walk in while Hope’s Premium Taste and Veggie Chips is just available
on Shopee. Savemore doesn’t have neither delivery nor online services but they offer
walk in.
 The Good Chips are the only business who offers promos to customers.
The Good Chips got the highest score with 87 point while Hope’s Premium Taste and Veggie
chips both got 77 points. Healthy chips of Savemore only got 68 points.
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Competitive Strategy
Differentiation Strategy
The Chips offer different touches of products, that includes innovation in the world
of Snacks. Specialities in the Chips are the business’ first priority. The menu of the business
will be dissimilar from the others. The business owners will create a varied menu and use
different ingredients for producing a variety of products. The Good Chips also has lots of
services and promos that is in favor for customers especially in this new normal situation.
Other competitors have few services similar to The Good Chips but they’re not offering all of
it especially the promos that the customers will receive from this business.
III. Marketing Plan
1. Product or Service Offering
The Good Chips use different fruit and vegetables to make delicious chips and are flavored
by natural ingredients and lots of passion.The Good Chips has nice services such as delivery
to nearby areas and online shop through social media and Shopee. The Good Chips make sure
that customers will feel happy, healthy and completely satisfied in the products and also in
services offered
2. The Value Proposition and Unique Selling Proposition
Proposed VP: (A pack of happiness and Healthiness) The Good Chips will make sure to
make everyone happy and feel healthy by eating chips. It is not just a common chips because
the business’ chips have different kinds of vegetables and fruits. In this time of pandemic,
most customers in every age prefer something healthy for their snacks to live a healthy life.
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Apple, Sweet Potato, Spinach, Eggplant and Carrot will be made as delicious chips to the
point that its taste will be attractive to customers’ taste buds. The business also prepares a
sauce perfect for these chips. It also has an affordable price to make it accessible to different
social class and age stages. With its delicious taste, uniqueness and acceptable
price, customers will be able to discover and try something new like these healthy chips that
The Good Chips are offering.
Proposed USP: The good chips will offer 5% cashback for every 3 purchases of any chips
and every customer will be given a card that helps to count the number of chips they bought.
For every 10 pieces, the business will give them a free 1 pack of chips.
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3. The 7P’s of Marketing Mix
A. Product
Healthy Chips
1. Cucumber chips
2. Sweet Potato chips
3. Apple chips
4. Spinach chips
5. Eggplant chips
6. Carrot chips
Sauce
1. Oregano White Sauce
2. Red Caesar Sauce
B. Place
The Good Chips will have a physical store in the town of Talavera, Nueva Ecija near
the Municipality of Talavera. We will use this store as our storage room and we will
also cook our product here. For people who want to taste our product but they are far
from Talavera we will make our products available in Shopee so that everyone who
wants to have a taste of our product can try it, we will also create a Facebook page
and Instagram account for the post updates about our product. For our costumers who
wants a delivery, they can message us and send their addresses and orders through our
Facebook/Instagram page so that we can process their orders.
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C. Pricing
Chips
1. Cucumber Chips
Ingredients for Cucumber chips Price
(1 Week Supply)
Cucumber(80 kg) 6,000
Onion Powder(40 g) 80
Garlic Powder(40 g) 80
Black Pepper(20 g) 60
Salt(32g) 40
All Purpose Flour(2kg) 120
Paprika Powder(40g) 120
Oil(8 L) 560
Water(4 L) 60
Total 7,120
Amount of Ingredients for 10 Packs
Variable Cost Fixed Cost
Item Value Item Value
Ingredients Measurements
Cucumber 1kg 75 LPG Tank 15
Onion Powder 5g 10 Electricity 20
Garlic Powder 5g 10
Black Pepper 2.5g 7.5
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Salt 4g 5
All Purpose 1/4kg 15
Flour
Paprika Powder 5g 15
Oil 1Liter 70
Water 0.5Liter 7.5
Total Variable Cost 215 Total Fixed 35
Cost
Value per pack: ₱25
Mark up (40%): ₱10
Vat (12%): ₱3
Packaging: ₱0.35
Final Price: ₱38.00
2. Sweet Potato Chips
Ingredients for Sweet Potato chips Price
(1 Week Supply)
Sweet Potato (80kg) 6,400
Onion Powder(40g) 80
Garlic Powder(40g) 80
Black Pepper(20g) 60
Salt(32g) 40
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Oil(8L) 560
Water(4L) 60
Total 7,520
Sweet Potato 1kg 80 LPG Tank 15
Garlic Powder 5g 10
Salt 4g 5
Flour
Oil 1Liter 70
Water 0.5Liter 7.5
Cost
Value per pack: ₱25.5
Mark up (40%): ₱10.2
Vat (12%): ₱3.06
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Packaging: ₱0.35
3. Apple Chips
Ingredients for Apple chips Price
(1 Week Supply)
Apple (80kg) 6,000
Salt(32g) 40
Oil(8L) 560
Water(4L) 60
Total 7,120
Apple 1kg 75 LPG Tank 15
Garlic Powder 5g 10
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Salt 4g 5
Flour
Oil 1Liter 70
Water 0.5Liter 7.5
Cost
Mark up (40%): ₱10
Vat (12%): ₱3
Packaging: ₱0.35
4. Spinach Chips
Ingredients for Spinach chips Price
(1 Week Supply)
Spinach(80kg) 4,800
Salt(32g) 40
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Oil(8L) 560
Water(4L) 60
Total 5,920
Spinach 1kg 60 LPG Tank 15
Garlic Powder 5g 10
Salt 4g 5
Flour
Oil 1Liter 70
Water 0.5Liter 7.5
Cost
Mark up (40%): ₱9.40
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Vat (12%): ₱2.82
Packaging: ₱0.35
Final Price:₱36
5. Egg Plant Chips
Ingredients for Eggplant chips Price
(1 Week Supply)
Egg Plant(80kg) 6,000
Salt(32g) 40
Oil(8L) 560
Water(4L) 60
Total 7,520
Egg Plant 1kg 75 LPG Tank 15
20
Garlic Powder 5g 10
Salt 4g 5
Flour
Oil 1Liter 70
Water 0.5Liter 7.5
Cost
Mark up (40%): ₱10
Vat (12%): ₱3
Packaging: ₱0.35
6. Carrot Chips
Ingredients for Carrot chips Price
(1 Day Supply)
Carrot(80kg) ₱6,400
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Salt(32g) 40
Oil(8L) 560
Water(4L) 60
Total 460
Carrot 1kg 80 LPG Tank 20
Garlic Powder 5g 10
Salt 4g 5
Flour
Oil 1Liter 70
Water 0.5Liter 7.5
Cost
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Mark up (40%): ₱10.2
Vat (12%): ₱3.06
Packaging: ₱0.35
Ingredients for Oregano White Price
Sauce
(1 Day Supply)
Japanese Mayo(800ml) 440
Garlic(1/2) 40
Black Pepper(10 g) 30
Salt(10 g) 10
Oregano Leaves(30 g) 60
Total 580
Amount of Ingredients for 15 sauce
Japanese Mayo 100ml 55 Electricity 10
Garlic 2cloves 5
Salt 2.5g 2.5
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Oregano Leaves 7.5g 10
Cost
Mark up (50%): ₱3.00
Vat 12%: ₱0.72
Packaging: ₱0.25
Ingredients for Red Caesar Sauce Price
(1 Day Supply)
Caesar Dressing (800ml) 600
Garlic(1/2) 20
Black Pepper(10 g 30
Salt(10 g) 10
Oregano Leaves(30 g) 60
Total 720
Amount of Ingredients for 15 sauce
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Caesar Dressing 100 ml 75 Electricity 10
Garlic 2cloves 5
Salt 2.5g 2.5
Oregano Leaves 7.5g 10
Cost
Mark up (50%): ₱3.65
VAT (12%): ₱0.0876
Packaging: ₱0.25
D. Promotion
The good chips will distribute flyers in the town where it will be built and we will
also post these flyers on our official facebook page and Instagram account for people
we can't reach with flyers. We will put the location of our store and also the link of
our Shopee account in those accounts. The entrepreneurs also plan to offer a
consumer sales promotions which are the cash back and the card that will be given to
every customers.
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E. Packaging
Entrepreneurs plan to offer an eco-friendly brown bags for the healthy chips and also
an eco-friendly cup for the available sauce. The business’ logo will be visible on the
packaging.
F. People
The Good Chips will hire At least 4 Staff and one cook. One staff is for our physical
store, one for online shop and taking deliveries, one will serve as our delivery man
and the last staff is the packer of chips. The Manager of The Good Chips which are
also the owners will take the full responsibility on managing our business and can
assure our dearly costumers that our staffs are going to be friendly and will be
approachable. Our good and well trained cook can assure our customers that they will
have a delicious and tasty healthy chips.
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G. Process
Process will be further discuss in operation plans under methods.
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IV. Operation Plan
1. Methods
A. Manufacturing or Sourcing of Goods or Source Delivery Process
The business owners decide that The Good Chips will source healthy chips’
ingredients from Sangitan Public Market, Cabanatuan, Nueva Ecija and
Friendship. Since The Good Chips aims to have an affordable price, the
owners have chosen sources that offer lower or wholesale prices than usual but
offer a good quality of food. A week before opening, The Good chips will buy
the ingredients to start making the healthy chips.
B. Distribution Method
The Good Chips have a physical store which is located near the schools,
church and municipality of Talavera. Customers can go to the store to buy
their preferred healthy chips. They also can order online for reservation and
they can pick it up at the store or it can be delivered to their houses the same
day if it is located in Talavera or nearby places. The healthy chips will also be
distributed in different cities and provinces through a Shopee checkout.
C. Payment Process
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In a physical store, they can pay using their cards, cash and the business also
accepts Gcash payment after they choose what healthy chips they will buy. In
delivery and Shopee checkout, the business offers cash on delivery, Gcash
payment and cards.
2.Manpower
A. Job Description
● Manager
Is a person responsible for supervising and motivating employees and for directing progress
of the business.
● Packer
The ones who are preparing finished products for packaging and selling. Typically, a packer
will be assigned to a specific area, retrieve the items needed from the inventory, check that
they are in good condition, and wrap them securely.
● Cashier
An employee who takes money, makes change, issues receipts and otherwise helps to
facilitate customer transactions.
● Delivery Staff
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Is responsible to note down the address and has to deliver the food items to the customer who
has placed the home delivered order.
● Cook
Is a person responsible for managing food stations, producing meals, preparing and serving
the chips.
● Customer Service Representative
Is responsible for handling/receiving orders from online. Customer service representatives
answer questions or requests from customers or the public..
B. Employee Qualifications
● Manager
 Preferably graduate for 4 year commercial coarse and related fields
 Must have experience in work involving managing
 Has a strong personality
 Must know how to handle employees
 No criminal records
 Have passion and determined in work
 Have a problem solving skills
 Must know how to socialize with workers
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 Has a pleasing personality
● Packer
 Can be college or senior high school graduate
 Has experience in working as a packer
 The ability to work well with others
 Patience and ability to remain calm in stressful situations
 Physically skills like movement, coordination and dexterity
● Cashier
 Can be a college or senior high school graduate
 His/her course must be related to business management
 Honest
 Know to deal with customer
● Delivery Staff
 Know how to drive
 Must have a driver license
 Can be a high school graduate
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 Must be patient and honest
● Cook
 Must be graduated from a hotel and management restaurant or related course
 Must have an experience in making chips
 Has a knowledge of sanitation principle, food presentation and nutrition
 Has a long patience
● Customer Service Representative
 Can be a college or senior high school graduate
 Experienced working with customer support
 Ability to to stay calm when customers are stressed or upset
 Knowledgeable using computers/ digital devices
C. Selection of Job Applicants
1. Should undergo the initial screening or checking the resume
2. Should pass the aptitude test
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3. Should pass the interview to test all the information written in the resume correct
4. Should pass the given exam related to the job, after passing all the above requirements
the applicant then will be hired to work as a casual worker.
D. Job Offer
Job Openings may be shared on social media sites such as Facebook, Twitter, Instagram and
the company’s website to be easily reached by the applicants. The credentials will also be
posted on the website. Because of covid-19, applicants can submit their resumes in private.
The above- mentioned test will be conducted online.
E. Employee Development
The manager or the business owners will give the employee seminars, training, and tasks for
new ideas related to a particular job. Seminars include team building and brainstorming.
The lecture will include how to approach consumers properly. Smiling and saying good
morning and good afternoon would brighten the customers day. In addition, the employee
and boss must have a strong working partnership on a joint basis. Employees should be
trained on the job on a regular basis.
3. Machines
A. Equipments and other Physical Facilities
1) Gas Stove (3)
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- We will use three gas stoves for cooking our products. So we will use three gas stoves
firstly so that we can produce chips faster that will be sold to our customers and secondly so
that the taste of our product does not mix because if we only use one gas stove we can only
use two stoves and if we cook our chips here the taste of every chips will mix and we do not
want that to happen, we also do not easily run out of gas tank because our product does not
require long cooking.
2) Cash Register (1)
- It will be used by the cashier for recording payments of our dearly customers.
3) Air Conditoner (1)
- This will be used for our customers to be comfortable when they go to our physical
store.
4) Refrigerator (2)
- For storing the ingredients of our product.
B. Telecommunications and information technology.
1) Computer (1)
- This will be used for our online shop and for updating our customers via our
Facebook page and Instagram account.
2) Cellphone (1)
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- It will be used for taking delivery orders.
3) CCTV and CCTV Monitor (2)
- It will be used for security purposes.
4. Materials
A. Suppliers
Sangitan Public Market
- It is where the business will buy fresh harvested Fruits and Vegetables and some
ingredients.
Friendship Supermarket, Talavera
- It is where the business will buy all the remaining ingredients.
B. Logistic
a.) Warehousing
>The business will have a refrigerator and a pantry in the kitchen to store some ingredients
while the packed and finished healthy chips are stored in the main pantry of the store.
b.) Transportation
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> The business owners have a service vehicle owned by the business and that will be used to
purchase all of the ingredients.
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V. Financial Plan
The Good Chips

Projected Income Statement
For 3 years
Account Titles Year 1 Year 2 Year 3
Sales 3,839,300.00 4,406,195.00 5,298,234.00

Sales Discount 15,962.50 18,356.00 22,028.25
Net Sales 3,823,337.50 4,387,839.00 5,276,205.75
Cost of Good Sold 2,303,580.00 2,643,717.00 3,178,940.40
Gross Profit 1,519,757.50 1,744,122.00 2,097,265.35
Operating
Expenses
Selling Expenses
Advertising
Expense 8,000.00 8,000.00 8,000.00
Administrative
Expense
Utilities Expense 60,000.00 60,000.00 60,000.00
Salaries Expense 720,000.00 720,000.00 720,000.00
Depreciation
Expense - Office
Equipment 7,700.00 7,700.00 7,700.00
Depreciation
Expense - Kitchen
Equipment 300.00 300.00 300.00
Depreciation
Expense -
Building 25,000.00 25,000.00 25,000.00
Total Operating
Expenses 821,000.00 821,000.00 821,000.00
Operating Profit 698,757.50 923,122.00 1,276,265.35
Tax Expense
(20%) 139,751.50 184,624.40 255,253.07
Net Profit 559,006.00 738,497.60 1,021,012.28
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The Good Chips
Projected Statement of Financial Position
For 3 years
Account Title Year 1 Year 2 Year 3
Current Assets
Cash 3,222,736.00 3,992,318.10 5,043,393.28
Inventory 12,770.00 14,685.50 17,622.60
Total Current Assets 3,235,506.00 4,007,003.60 5,061,015.88
Fixed Assets
Office Equipment
Cash Register 4,000.00 4,000.00 4,000.00
Air conditioner 15,000.00 15,000.00 15,000.00
Generator 16,000.00 16,000.00 16,000.00
Computer 25,000.00 25,000.00 25,000.00
Cellphone 10,000.00 10,000.00 10,000.00
Cctv 7,000.00 7,000.00 7,000.00
Kitchen Equipment
Gas Stove 4,500.00 4,500.00 4,500.00
Fixtures and Furnitures 75,000.00 75,000.00 75,000.00
Builiding 1,500,000.00 1,500,000.00 1,500,000.00
Land 700,000.00 700,000.00 700,000.00
Accumulated Depreciation - Office
Equipment (7,700.00) (15,400.00) (23,100.00)
Accumulated Depreciation - Kitchen
Equipment (300.00) (600.00) (900.00)
Accumulated Depreciation - Building (25,000.00) (50,000.00) (75,000.00)
Total Fixed Assets 2,323,500.00 2,290,500.00 2,257,500.00
Total Assets 5,559,006.00 6,297,503.60 7,318,515.88
Liabilities
Current Liabilities
Accounts Payable
Total Current Liabilities
Noncurrent Liabilities
Total Liabilities
Equity
Capital 5,000,000.00 5,559,006.00 6,297,503.60
Income 559,006.00 738,497.60 1,021,012.28
Total Equity 5,559,006.00 6,297,503.60 7,318,515.88
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VI. Conclusion and Recommendations
Conclusion
The Entrepreneurs decided that the most ideal location to open the Chips store was
in the area near at municipal of Talavera and not far away from schools. Although the
Talavera area was highlighted as one of the more suitable areas, the entrepreneurs
considered the fact that there were a lot of chips store on other areas that were competing
for market share compared to the Talavera area. Although this was not a major concern in
our location assessment, the location's close proximity to REH Montessori College,
Schola Christi and TNHS, as a major institution with numerous students, provided the
necessary customer base for a successful business.
There were 15% increase in sales during the second year while 20% increase in
sales during the third year of the business. This sales forecast shows that there’s a big
possibility that business will be stable and successful with its continuous unique
promotion. The income of the business continuously increases and it shows that the
owners can get their investment back on the third year of the business. The reason why
the business got a P5,043,393.28 cash balance is because of reduced expenses during the
next years while having an increase in their sales. The business obtained their great sales
due to being a flexible business as it offers online and physical shop. The owners also
bought all of the needed equipment, furniture and its land and building using their
P5,000,000 investment on the first year so it is valid that the business’ expenses are
higher than its profit.
39
The owners therefore conclude that with following business ethics, proper analysis
before deciding, proper planning for promotions and doing a clear financial statements,
the business will continue to grow its sales for succeeding years and be able to gain a
profit.
Recommendation
Establishing The Good Chips will require P 5,000,000. Competitive analysis of the
business shows The Good Chips can positively complete with the existing competitors
and that is already one of the reason why the business is feasible. The business will able
to have a P5,000,000 cash balance that results in having enough cash for the return of
investment due to its great sales and low expenses. Establishing this kind of business will
impose a high chance of success since the location, service and uniqueness of the product
and the kind of employees that are in the business are well planned and selected by the
business owners. The projected financial statements shows how feasible it is to be built.
40

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Business Plan

The Good Chips

Constantino, Zacchaeus Rayle DC.

Constantino, Zakiya Rayne DC.

LEALYNNE DELA CRUZ

a physical store and will do deliveries.

offers the best tasting healthy chips in the Country.

background knowledge in organization and management of a business. Ms.

preparation of the business and operations.

Products and Services

Sweet Potatoes Chips

Oregano White Sauce

Red Caesar Sauce

friendly and accommodating services to our customers.

will still be able to buy.

Online Shop Service

respondents, snacking is viewed primarily as a source of nutrition (74%) Consumers in the

are organic and 40% prefer to use local herbs.

Porter’s Five Forces Analysis

attractiveness of the business.

a.) Threat of New Entrant/Potential Competitors

Assessment: Medium Pressure

those who love buying online and claiming freebies.

b.) Threat of Substitute Products

Assessment: Low Pressure

c.) The Bargaining Power of Buyer

Assessment: Medium Pressure

the store, so consumers gained their power through these incentives.

d.) The Bargaining Power of Supplier

Assessment: Low Pressure

e.) Rivalry Among Existing Firms

Assessment: Medium Pressure

lot of chips online through the Shopee app.

that the business needs to success and how important it is.

Chips Premium Taste Chips

Variety of fruits and 10 10 8 10 10

prices than other stores who sell healthy chips.

offered and what they’re offering is common healthy chips.

some normal and usual packaging of healthy chips.

Shopee ensure a safe and hassle free transaction.

III. Marketing Plan

1. Product or Service Offering

2. The Value Proposition and Unique Selling Proposition

The Good Chips are offering.

2. Sweet Potato chips

1. Oregano White Sauce

2. Red Caesar Sauce

Facebook/Instagram page so that we can process their orders.

Ingredients for Cucumber chips Price

Cucumber(80 kg) 6,000

All Purpose Flour(2kg) 120

Paprika Powder(40g) 120

Amount of Ingredients for 10 Packs

Variable Cost Fixed Cost

Item Value Item Value

Cucumber 1kg 75 LPG Tank 15

Onion Powder 5g 10 Electricity 20

Black Pepper 2.5g 7.5

All Purpose 1/4kg 15