i

FEASIBILITY STUDY OF ESTABLISHING A FARM RESORT IN

POLOMOLOK, SOUTH COTABATO

PRESENTED TO

THE FACULTY OF THE COLLEGE OF THE BUSINESS

EDUCATION RAMON MAGSAYSAY MEMORIAL COLLEGES

GENERAL SANTOS CITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN

FEASIBILITY STUDY

BY:

MC JOSHUA L. SENTILLANOSA

JUNE 2024
 RAMON MAGSAYSAY MEMORIAL
COLLEGES COLLEGE OF BUSINESS
EDUCATION TOURISM AND HOSPITALITY
MANAGEMENT
Pioneer Avenue, General Santos City

APPROVAL SHEET

This Feasibility Study entitled “A FEASIBILITY STUDY OF

ESTABLISHING A FARM RESORT IN POLOMOLOK, SOUTH COTABATO”
has been prepared and submitted by MC JOSHUA L. SENTILLANOSA, in partial
fulfillment of the requirements in Feasibility Study (FS1) for the degree of BACHELOR
OF SCIENCE IN TOURISM MANAGEMENT (BSTM) has been
examined and is recommended for acceptance and approval.

RANICE GLAIZA A. MEJARES

Adviser

PANEL OF EXAMINERS

MARIVIC B. PEÑAFLOR, CPA, PhD.

Chairperson

GINA G. RAPATAN, PhD. JULIE ANN C. VILLACERAN, CPA

Panel Member Panel Member

Accepted and Approved on June 2024 in partial fulfillment of the

Requirements in Feasibility Study (FS1) for the degree of BACHELOR OF SCIENCE
IN TOURISM MANAGEMENT (BSTM).

MARIVIC B. PEÑAFLOR, CPA, PhD.

Dean, College of Business Education
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DEDICATION

This research is dedicated to my parents and friends, whose continuous support

and encouragement helped me complete it. Your belief in me has been my biggest source

of encouragement. Thank you for your unending love and patience.

First, I dedicate this research to my parents. Your endless love, patience, and

belief in my abilities have been a constant source of strength and motivation. To my

friends, your support and understanding have provided me with a balance of joy and

perseverance. All your encouragement during moments of doubt and our celebrations

during times of achievement have made this journey all the more meaningful.

Also, this feasibility study is dedicated to the faculty and staff of Ramon

Magsaysay Memorial Colleges. Their commitment to excellence and dedication to their

students have helped shape my academic journey and prepare me for the challenges of

the real world, and especially to Ma’am Ranice Glaiza A. Mejares, whose guidance,

insight, and unwavering support have been invaluable throughout this journey.

Lastly, thank you to our powerful God for his help, strength, wisdom, safety, and,

most importantly, good health. In this research, we offer all of these to you.

Mc Joshua L. Sentillanosa
The Researcher
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ACKNOWLEDGEMENT

I would like to extend my heartfelt gratitude to all those who contributed to the

successful completion of this feasibility study.

First, I want to thank my feasibility study adviser, Ma'am Ranice Glaiza A.

Mejares, for her guidance, support, and encouragement during the research. Their help

and knowledge were very important in making this study, and I am very thankful for their

help.

I also want to thank the panel of examiner members, Dr. Gina G. Rapatan,

Julie Ann C. Villaceran, CPA, and Marivic Peñaflor, CPA, PhD., for their time,

knowledge, and helpful feedback during the research defense. Their wise comments and

ideas made this feasibility study better and more refined.

I appreciate the participants who kindly spent their time and talked about their

thoughts and experiences. If they hadn't helped, this research couldn't have happened. I'm

thankful they wanted to join in this study.

I want to say thanks to my family and friends, especially my sister, Jemieneth

L. Sentillanosa, who has always been there for me from the very beginning. I also want

to thank my friend Gelynne Zyrah S. Centina for giving me a lot of help. I couldn't

have done it without the support of these people. Their constant support helped me stay

focused and dedicated to this feasibility study. Also, I want to thank God for helping me

through this feasibility study to see if something is possible. I couldn't have done this

study without God's help and good things.

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Last but not least, I wanna thank me. I wanna thank me for believing in

me. I wanna thank me for doing all this hard work. I wanna thank me for having

no days off. I wanna thank me for, for never quitting. I wanna thank me for

always being a giver and tryna give more than I receive. I wanna thank me for

tryna do more right than wrong. I wanna thank me for just being me at all times.

Once again, I extend my heartfelt thanks to all who contributed. Your support and

collaboration have been invaluable to this feasibility study.

Mc Joshua L. Sentillanosa
The Researcher
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EXECUTIVE SUMMARY

The researcher proposed a business of establishing a farm resort in Polomolok,

South Cotabato. This study was conducted to determine the feasibility of putting up Farm

Resort in Polomolok South Cotabato and its viability in marketing, technical,

management and organization, financial, and socio- economic aspects of the industry.

The study was limited to the boundaries of the studies in terms of subjects, objectives,

areas and the issue to which the research is focused. The data gathered and presented

were based from the information given by the respondents during the interview process.

For the marketing aspect, the proposed business provides quality services

within the area. The primary target market of the proposed business will primarily be the

tourists like foreign and domestic who visited Polomolok, South Cotabato. A competitive

base pricing strategy, where competitors influence the price point. They will charge a

premium rate to stay ahead of the competition stated by (Amaral, M., & Guerreiro, R.

2019) cost-based pricing in their research, emphasizing its dominance in pricing practice

despite theoretical preferences for value-based pricing. They explain that cost-based

pricing can effectively incorporate competitor and value information, allowing firms to

maintain simplicity in pricing while being responsive to market dynamics.

For the technical aspects, the suppliers of cost-effective superior materials

necessary for the proposed business are the sources of the enterprise's raw materials. The

recommended business suppliers who have been prepared in compliance with the

standards required for the business can be found at the stores

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in Polomolok, South Cotabato and General Santos City.

For the management and organization aspect, the form of the proposed

business will be sole proprietorship. A sole proprietorship is a type of business entity

owned and operated by a single individual, making it the simplest and most common

form of business structure. The proposed business will need eleven (11) employees,

which are; 3 Room attendant, 3 Cashier, 2 Life Guard and 3 Utility Personnel that can

handle duties and responsibilities of the Farm Resort.

For the financial aspect, the study will show the investment cost, financial

forecast, projected financial statements, financial analysis, and its financial statement-

supporting schedule. The business is to be established in the form of sole proprietorship

and its initial capitalization will be P8,095,469.

For the socio-economic aspect, as a result, the researcher concluded that the

proposed business is viable to establish in Polomolok, South Cotabato. The proposed

business will contribute to the economy and society in many ways; Community

Engagement and Social Interaction, Promoting Recreation and Wellness, and Local

Employment Opportunities. It will also assist the economy through its Promotion of

Local Culture and Heritage, Improve the quality of social and Community, and Taxes and

Revenue to the Local Government.

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TABLE OF CONTENTS

TITLE PAGE i

APPROVAL SHEET ii

DEDICATION iii

ACKNOWLEDGMENT iv

EXECUTIVE SUMMARY vi

TABLE OF CONTENTS viii

LIST OF FIGURES xiv

LIST OF TABLES xv

LIST OF EXHIBITS xvii

LIST OF SCHEDULES xviii

LIST OF APENDICES xix

CHAPTER 1 – INTRODUCTION

Background of the Study 1

Rationale of the Study 3

Objectives of the Study 4

Scope and Limitations 4

Significance of the Study 5

Research Methodology 7

Research Design 7

Respondents 9

Locale of the Study 9

Data Gathering Tool 10

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Data Gathering Procedure 10

Definitions of Terms 10

CHAPTER II – THE INDUSTRY AND THE BUSINESS DESCRIPTION

Services 12

Major Players in the Industry 12

Market Trends and Direction 14

Key Success Factor s 14

General Description of the Venture 15

Product and Services Labelling 15

Potential of the Venture 16

Business Strategic Plan 16

Vision 17

Mission 17

Objectives of the study 17

SWOT Analysis 18

Strength 18

Weaknesses 19

Opportunities 19

Threats 20

CHAPTER III – MARKETING ASPECT

Market Research and Analysis 22

Target Market 22

Demand and Supply 23

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Market Demand 23

Demand Projection 24

Supply Projection 30

Estimated Market Share 31

Demand and Supply Analysis 32

Estimated Market Percentage 32

Capacity of the Business 33

Intensity of Competition 35

Marketing Strategy 36

Sales and Distribution Strategy 36

Pricing Strategy 36

Pricing Structure 37

Advertising Promotion 38

Advertising 38

CHAPTER IV – TECHNICAL ASPECTS

Service Flow 41

Business Location 43

Location Map 43

Vicinity Map 44

Layout 45

Capital Expenditure, Source, Estimated cost 50

and Contracts

Equipment, Furniture and Fixture, and Supplies 51

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in the services

Equipment 51

Furniture and Fixture 55

Supplies 58

Utilities 62

Electricity Consumption 62

Water Consumption 63

Telephone/Internet 64

Waste Management 64

Hazardous Waste Disposal 65

Conserving Biodiversity, Ecosystem, and Landscape 65

CHAPTER V – MANAGEMENT AND ORGANIZATION ASPECT

Form of Business Organization 66

Organizational Structure 66

Personnel Qualifications 67

Personnel Duties and Responsibilities 69

Personnel Salary Structure 71

Pre-Operating Activities 71

Conducting Feasibility Study 71

Securing Business Permits and Licenses 71

Building Construction 72

Acquisitions of Equipment and Furniture and Fixtures 72

Personnel Hiring and Processes 72

Promotion of the Business 72

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Launching of the Business 72

Time-Table 73

CHAPTER VI – FINANCIAL ASPECT

Financial Assumption 74

Revenue 74

Expenses 74

Taxation 75

Investment Cost 75

Source of Financing 76

Capital Structure 76

Projected Financial Statement 77

Projected Statement of Financial Performance 77

Projected Statement of Financial Position 78

Projected Statement of Cash Flow 79

Projected Statement of Changes in Owner’s Equity 79

Financial Ratio and Analysis 80

Liquidity Ratios 81

Current Ratio 81

Profitability Ratio 82

Profit Margin 82

Return to Total Assets 82

Efficiency Ratio 83

Total Assets Turnover Analysis 83

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Leverage Ratio 84

Equity to Assets Ratio 84

Debt to Equity Ratio 85

Capital Investment Analysis 86

Return on Investment Analysis 86

Payback Period 87

CHAPTER VII – SOCIO-ECONOMIC ASPECT

Benefits to the Economy and Society 88

EXHIBITS xx

SCHEDULES xv

APPENDICIES liii

BIBLIOGRAPHY lxiii

CURRICULUM VITAE lxiv

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LIST OF FIGURES

Figure Description Page

1 Research Design 8

2 Business Logo 16

3 Estimated Market Share 33

4 Proposed Venture Brochure/Flyers 39

5 Service Flow 41

6 Location Map 44

7 Vicinity Map 44

8 Room Floor Plan 46

9 Building Perspective 47

10 Front View Layout 47

11 Room Layout 48

12 Parking Layout 48

13 Pool Area Layout 49

14 Camping Site Layout 49

15 Flat Organizational Structure 67

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LIST OF TABLES

Table Description Page

1 Existing Major Player 13

2 Target Market Size 23

3 Market Demand 24

4 Average Annual Frequency 25

5 Supplies from Direct Existing Player 31

6 Demand and Supply Analysis 32

7 Estimated Market Share Percentage 32

8 Projected Annual Capacity 33

9 Price List 37

10 Inclusions Rate 38

11 Advertising 40

12 Minutes Consumed in Service Flow 42

13 Construction Cost 50

14 Equipment Specification 51

15 Furniture and Fixture Specification 55

16 Supplies Specification 58

17 Electricity Consumption 63

18 Water Consumption 64

19 Telephone and Internet Services 64

20 Salary Structure 71

21 Gantt Chart 73
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LIST OF TABLES

Table Description Page

22 Investment Cost 76

23 Summary of Projected Statement of Financial Performance 78

24 Summary of Projected Statement of Financial Position 78

25 Summary of Projected Statement of Cash Flow 79

26 Summary of Projected Statement of Owner’s Equity 80

27 Current Ratio 81

28 Return on Sales 82

29 Return on Total Assets 83

30 Total Assets Turnover Analysis 84

31 Equity to Assets Ratio 84

32 Debt to Assets Ratio 85

33 Return on Investment Analysis 86

34 Payback Period 87
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LIST OF EXHIBITS

Exhibit Description Page

1 Projected Statement of Financial Performance xxi

2 Projected Statement of Financial Position xxii

3 Projected Statement of Cash Flows xxiii

4 Projected Statement of Changes in Equity xxiv

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LIST OF SCHEDULES

Schedules Description Page

1 Projected Service Revenue xxvi

2 Projected Salaries Expense xxvii

3 Projected Security Expense xxviii

4 Projected SSS, Philhealth, Pag-ibig Expense xxix

5 Projected Supplies Expense xxx

6 Projected Advertising Expense xxxi

7 Projected Depreciation Expense xxxii

8 Projected Utilities Expense xxxv

9 Projected Repair and Maintenance xxxvii

10 Projected Business Permits and Licenses xl

11 Projected Miscellaneous Expense xli

12 Projected Income Tax Expense xlii

13 Projected Property, Plant and Equipment xliii

14 Projected Accumulated Depreciation xlvi

15 Projected SSS, PHIC and PAG-IBIG Payable xlix

16 Projected Income Tax Payable l

17 Projected Vat Payable li

18 Expanded Withholding Tax Payable lii

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LIST OF APEPENDICES

Appendix Description Page

A Letter of Request liv

B Interview Guide lv

C Survey Questionnaire lvii

D Interview Guide Questionnaire lviii

E Engineer License and Certification lx

F Certification of Grammarian lxii

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Chapter I

INTRODUCTION

This chapter discuss about the background of the study, rationale of the study,

objectives of the study, the scope and limitation, significance of the study, research

methodology, research design, respondents, locale of the study, data gathering tool, data

gathering procedure and definitions of terms.

Background of the Study

The proposed business is a farm resort located in Polomolok, South Cotabato, that

provides lodging and dining options so that visitors can engage in or enjoy interactive on-

farm activities and enhance other attractions that will enhance their experience of farm

life. The concept of Farm resort provides excellent services and security for our

customers, a safe working environment, training, suitable salaries, bonuses, and other

benefits for the best employees. This Farm resort would be an environmentally friendly

organization that offers more job opportunities for the community. The tourism industry

is seen as a vital way to revitalize local economies, with increasing demand for diverse

recreational activities. Farm tourism, which involves modifying farming practices or

providing additional services, is advocated as an alternative for agricultural development.

Resorts have evolved from modest, modest facilities to luxurious, extravagant facilities.

The hospitality industry dates back to biblical times, with the first hotels being private

homes. In the 19th century, Switzerland’s resort industry developed exclusive resort

facilities for privacy and wealthy visitors. Farm Resort became popular, and small

tourism-dependent island countries faced pressure to develop resources to

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meet increased demand. The Philippines’ resorts cater to overcrowded urban areas, with

local governments investing in hotels and resort projects to increase the number of

resorts. The rise in tourism in small, fragile resort countries is positive for economic

growth. The tourism industry in the Philippines is one of the major contributors to the

economy and the nation’s progress. It gives a lot of opportunities in different business

sectors, creating job opportunities for both local people and foreign individuals. One of

the reasons why the tourism industry is so successful is because of tourist attractions or

tourist destinations. Farm Resort is a growing recreational sector that combines travel

with food and farming experiences. It is gaining popularity due to its potential to generate

supplemental income for farmers. However, traditional agricultural producers face

challenges in transitioning from a wholesale business to a hospitality and service

business. The Philippines, with its tropical climate, fertile soil, and rich fauna and flora,

offers diverse agricultural products and services that can attract visitors. The country’s

English-speaking population and its ability to communicate with locals make it more

tourist-friendly. Despite its importance in the economy, the agriculture sector’s

importance has dropped over the past decades.

One of the prime tourist destinations in the Philippines is South Cotabato, the “Land of

the Dream weavers.” It is located in Mindanao. The province is known for its abundance

of wildlife, lakes, waterfalls, vast pineapple plantations, and well- preserved culture and

tradition. Polomolok is a first-class municipality in the province of South Cotabato,

where the Farm Resort is located. The study is anchored on the assumption that Farm

Resort has the capabilities to create more

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job opportunities in Polomolok and will become a competitive resort that aggressively

seizes future opportunities by leveraging its citizens’ culture and tradition, skills, and

talents. It includes attractions, events, services, and facilities. As well as other local

resources, to encourage awareness of local culture, heritage, and tradition through

personal contact with the local people.

Tourism farming is a farm operation that utilizes rural scenery and natural ecological

and environmental resources to join agricultural production, agri- business operations,

rural culture, and farm livelihood to provide recreation activities and enhance the public’s

experience of agriculture and rural activities. (Council of Agriculture. 2015).

The purpose of this research Is to construct a farm resort in Polomolok, South

Cotabato. A new farm resort is a type of rural tourism destination that offers a variety of

agriculturally-related recreational alternatives in a farm environment, together with first-

rate lodging and dining options. Thus, encouraging the preservation of local culture and

customs is a key objective of the facility preservation of local culture, customs, and ideas

farm resort. Guests that participate in agricultural activities learn about local traditions,

customs, and ways of life.

Rationale of the Study

The purpose of this research is to offer sincere, heartfelt hospitality for both the

guest’s experience and employment. This research aims to add a competitive tourist

destination in South Cotabato and highlight the beauty of Polomolok. This study aims to

promote tourism and hospitality in Polomolok by creating a

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development plan for farm resorts. Furthermore, knowing how to approach visitors who

have varying expectations for the services offered at farm resorts will be one of many

challenges that this resort may face. Agricultural activities, accommodations and

services, recreational amenities, and farm size were identified as the four main

characteristics of the farms based on factor analysis. It is advised that the resort farms

being looked into for this study adopt a pursuing strategy for accommodations and

services.

Objectives of the study

The study intended to determine the feasibility of establishing a farm resort in

Polomolok, South Cotabato.

1. Analyze the farm resort as a tourist destination Polomolok, South

Cotabato.

2. Describe the proposed business of Farm Resort in Polomolok, South

Cotabato.

3. Determine the viability of the proposed farm resort as a tourist

destination in the following aspects:

3.1 Marketing;

3.2 Technical;

3.3 Management and Organization;

3.4 Financial; and

3.5 Socio-economic;

Scope and Limitation

This study is mainly focused on a farm resort, a successful enterprise

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that provides possible, concrete methodologies that the researchers believe are helpful in

modernizing agriculture. The paper revolves around these five (5) major components of

the proposed business's feasibility and viability in the aspects of marketing, technical,

management, organization, financial, and socio-economic aspects. The study’s findings

are restricted to the information obtained from the three (3) respondents during the

interviews that were held to get crucial facts and information from the firms.

Furthermore, further research on the preferences of youth regarding their interests and

prospective careers was also recommended to cater to the limitations of the study.

Significance of the Study

The researcher chooses to conduct a feasibility study on establishing a farm resort

to determine its feasibility as well as its significance. The study will be conducted with

the hope that it will benefit the following:

Internal Stakeholders

The outcome will help internal stakeholders determine the feasibility of the proposed

firm and its effects on investment prospects. Similarly, it will enable the owner to choose

a course of action based on the study's results and recommendations.

Owners- This study will offer a mutually beneficial opportunity for owners who

want to establish a tourist spot business because it fosters economic growth and preserves

cultural heritage and natural resources.

Management- This study will offer trustworthy and helpful data to the

management, who played a crucial role in ensuring that the customers’ demands
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and wishes would be effectively met. This would assist them in producing fresh concepts

that might form the basis of their marketing tactics to draw in more clients. External

Stakeholders

The final result will assist external stakeholders in assessing the feasibility of the

proposed business, which has an important impact on the consumer and thus requires

priority treatment.

Customers- The respondents of this study, by receiving feedback or their ideas on

what people anticipate from the resort, will fill out the questionnaire, which will help the

farm resort provide a quality service, product, location, and price.

Suppliers- The findings of the study will assist the farm resort in reducing waste,

minimizing stockouts, and ensuring that the proper goods and supplies are always

accessible.

Local Government- The results of the study, the government will obtain

knowledge on how to get involved with Farm Resorts operations within its purview.

Researchers- The findings of this study will help in the researcher's

evaluation of the business environment and operations to determine what needs

improvement on the part of management.

Future Researchers- The findings of this study would offer pertinent data on any

firm focused on providing food or services, as well as data from other studies on topics

related to customer satisfaction. This study will encourage other researchers to conduct

similar studies on a wider scope and include variables not covered in this research.
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Research Methodology

This study shows and discusses the feasibility studies of researcher design, respondents, and

data gathering procedures.

Research Design

This study investigated and identified the perception positioning of tourists on

major farm resorts and its implications for management strategies. Farm resorts are

popular rural tourism destinations characterized by exceptional accommodations and

meal services in a farm setting, which provides diverse agricultural-related recreation

options. However, little is known about the tourists’ perceptions of the farm resorts.

Figure 1. The next page shows the entire picture of how the feasibility study was

conducted. This summarizes the flow of specific step, from the establishment of the

objectives to the data.

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A Feasibility Study of Establishing a Farm Resort in Polomolok, South

Cotabato

Objectives of the Study Research Methodology

Research Design
Industry Analysis

Descriptive-Exploratory
Business Description

Respondents
Viability of the Study
Durian Garden Resort
Marketing
Dolores Farm Resort
Technical
Herds Pine Farm Resort
Management and Organization
Locale of the Study

Financial Polomolok, South Cotabato

Socio-economic Data Gathering Tool

InterviewinGuide
A Feasibility Study of Establishing a Farm Resort Polomolok, South Cotabato

Data Gathering Procedure

Figure 1. Research Design

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Respondents

The respondents of the proposed study were the managers and customers

who visited the existing Durian Garden Resort located at National Highway,

Awas Sulit, Polomolok, South Cotabato, from 1995 until present, Dolores Farm

Resort located at Barangay Pagalungan Highway, Polomolok, South Cotabato,

from 2015 to present and Herds Pine Farm Resort located Barangay Masagana,

Polomolok, South Cotabato from 2015 to present. These respondents provided

information and shared experiences on how to deal with people's concerns about

the service and potential challenges.

The researcher chooses the managers of these three (3) major players in

the industry because they have been in the business for several years and are

reliable in providing relevant information. They are knowledgeable enough due to

their experience in managing and operating the business. Customers can give their

feedback based on their experiences to the following resorts: customer feedback

can be the basis for determining how effective the services, product, location, and

price are. Locale of the Study

The proposed business will be sited and conducted located at Polomolok,

South Cotabato. It will be the best location to have this business in this area because

there are a lot of sights that tourists can enjoy while visiting. By having this kind of

business, it generates sustainable and eco- friendly electrical energy for the local.
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Data Gathering Tool

In getting the information from the respondents, the researcher formulated an

interview guide. An interview guide is a formal document that contains questions

about marketing, technical, management and organization, financial, and socio-

economic. It is a good advantage of providing an interview guide to clearly specify

what the researcher wants to ask the respondents. This will help the researcher gain

more knowledge about this kind of business and assess the needed data to fully

recognize how feasible the study is.

Data Gathering Procedures

In gathering the data for the study, the researcher used a systematic

procedure to get more information from the respondents. The first stage is for the

researchers to formally request permission from the respondents to conduct the study

in a letter. In the second stage, with consent, an interview was done using an

interview guide. After that, the data was compiled, supplemented with vital

questions about the company, and recorded on cell phones. Finally, the information

was translated and transcribed by the researcher for analysis, and the data was

presented using figures and tables.

Definition of Terms

The following terms are defined operationally for better understanding about this

study:

Accommodation- It is typically by a rental agreement, though occasionally

through another arrangement.

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Farm Resort- This refers to an agricultural establishment that provide lodging and

food services to visitors who wish to engage in interactive on-farm activities and other

attractions designed to enhance their experience of rural living.

Financial Aspects- This refers to the evaluation and analysis of the financial

considerations and implications associated with a proposed business.

Management and Organization Aspect- This refers to important aspects

related to the implementation, operation, and structure of a proposed business.

Services- Refers to activities that are abstract but individually recognizable and

satisfy needs.

Socioeconomic Aspect- This refers to the evaluation and analysis of the social

and economic impacts and implications associated with a proposed business.

Technical Aspect- This refers to the evaluation and analysis of the technical

requirements, capabilities, and considerations associated with a proposed business.

Tourism Industry- Defined as the total number of enterprises that directly

support business, pleasure, and leisure activities outside of the home environment.

Tradition- Refers to a long-standing behavior pattern that members of a certain

civilization or community have continued to practice.

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Chapter II

THE INDUSTRY AND BUSINESS DESCRIPTION

This chapter present and discusses the business profile, industry background, and

general description of the proposed business. This section also includes the products and

services, major players in the industry, market trends and direction, and key success

factors of the study and business strategic plan.

Services

The industry of Farm resort offers accommodation and dining services, providing

guests with an immersive experience. The customers recognize this channel of trade for

its accessible locations, flexible hours, high level of customer care, and reasonable prices.

Farm resort is to provide a place for relaxation, leisure, and recreation. This farm resort

often offers amenities such as swimming pools, camping, and outdoor activities. The need

for a resort arises from people’s desire to escape their daily routines, unwind, and enjoy a

vacation in a comfortable and luxurious environment.

This industry will offer a glamorous experience with a view of majestic mountains

and rice fields, as well as lodging and dining options, giving guests a special chance to

engage in agricultural tasks. It also possesses incredible scenery that can satisfy nature

lovers.

Major Players in the Industry

The researcher chose these three (3) registered businesses as the major players

that provide lodging services. These businesses are considered the major players in the

industry because of their viability, the services they offer, the duration
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of their operation, and the volume of sales they have achieved through investing in the

Farm Resort business.

The table below provides an overview of the existing major players in Farm

Resort business.

Table 1

Existing Major Player

Name Location Services Facilities Number of

years
existing
Durian National  Day Tour  Garden 28 years
Garden Highway,  Accommodation  Mini-Zoo
Resort Awas, Sulit,  Patio
Polomolok,  Function Rooms
South
Cotabato  Guest Rooms
 Dormitory
 Restaurant

Dolores Barangay  Accommodation  Mini-Zoo 8 years

Farm Pagalungqan  Laundry Services  Restaurant
Resort Highway,  Function Hall
Polomolok,
South  Guest- rooms
Cotabato  Safety deposit
Box
 Parking space
 Airport Transfer

Herds Pine Barangay,  Day Tour  Hotel Room 8 years

Farm Masagana,  Accommodation  Pavilion
Resort Polomolok,  Garden Event
South  Parking space
Cotabato
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Market Trends and Directions

The population of in Polomolok, South Cotabato, is still growing because of the

growing economy. There are many Commercial establishments, which raises the demand

for more workers. The target market of the proposed business is not only those living in

Polomolok, South Cotabato, but also tourists and vacationers from other places.

Therefore, based on demographic expansion, the projected firm will develop and generate

more revenue, increasing the likelihood that it will turn a profit. As a result, the planned

company’s business model remains unchanged.

Key Success Factors

The following are the key success factors of the Farm Resorts businesses:

Customer Satisfaction. The Farm Resort is crucial for a hotel’s profitability,

retention, and growth. To achieve this, Farm Resort should provide excellent service,

personalize their stay, address guest complaints, offer rewards, and invest in technology,

ensuring a comfortable atmosphere and multiple communication channels.

Government Support. In order to help farmers and the government of this farm

resort innovate and diversify their operations by providing food, wellness, and

recreational activities to tourists, the government offers a variety of assistance initiatives

that contribute to the growth of farm resorts. This helps farm owners make the most of

their property, create jobs, and improve the food security of the farm resort.

Location. This is a good location because it is area or roots such as a majestic

ambience and relaxing place so the visitor can enjoy their stay in this location to
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help them easy access to this resort and also place to rest after a long trip.

Recreation facilities. By providing camping, participating in farm activities, and

retail, lodging, and entertainment services, it will help the farm resort grow.

General Description of the Venture

This section presents the business name, service style, and service label of the

venture.

Product and Services Labelling

“G FARM’’ will be the name of the proposed venture. It is named G

FARM because of its unique concept of offered service, which in these worrying

times, the green scenery, the euphonious sounds coming from various animals,

and the soothing breeze of the farm entail complete healing that everyone truly

deserves to feel. Aside from that, the researcher believes that the business name is

catchy, has a beautiful place to genuinely experience, and is easy to pronounce

and understand. With this, the customers will easily remember the name of the

business.

The researcher decided that the proposed business logo would be simple

yet easy to remember. In the logo, it indicates the business name and also the

tagline, which is “Manami kag Matawhay." Manami means "beautiful,” while

Matawhay means “peaceful or comfortable," which is the type of the proposed

business. Mt. Matutum enables each guest to connect and experience the healing

power of Mother Nature. The trees, barn, windmill, and plantation of crops

highlight and showcase the natural as well as the common patterns that can be

obviously observed in every farm

 16

setting. The pineapple symbolizes the home of the biggest pineapple plant.

In figure 2 shows the business logo of the proposed business.

Figure 2. Business Logo

Potential of the Venture

The proposed venture is capable of satisfying its target market because of

the quality of the services it offers. The proposed farm resort venture offers

competitive services and amenities, contributing to local economies and

sustainable tourism. It offers unique services and benefits to consumers while also

contributing to community development, food security, and additional income for

farmers. Farm tourism, including camping, farm activities, retail, lodging, and

entertainment, fosters economic growth and preserves cultural heritage and

natural resources.

Business Strategic Plan

The proposed firm has a strategic plan to ensure that its goals, mission, and vision

assist in clarifying thinking, emphasizing critical factors to focus on, and

 17

providing stakeholders with knowledge and confidence.

Vision- The proposed business envisions being the best-managed hospitality

organization in the region and the world, with managers and service workers who

continually strive to provide the highest levels of customer service at all times and in all

situations.

Mission- To attain its vision, the proposed business is committed to exceeding the

expectations of both first-time and returning customers by exceeding their expectations of

what we can provide, by recognizing and appreciating the contributions and involvement

of our employees, by ensuring fair and reasonable returns to our shareholders, and by

being accountable, responsible, moral, and reliable corporate citizens.

Objectives of the Study

The objectives of the proposed business are the following:

1. To generate profit at 20% with an increase in prices and/or lower costs.

2. Market share is the percentage of revenue that one resort makes as

compared to the overall competitive market of a farm resort.

3. To enjoy guests by providing the best farm resort experience services that

will exceed their expectations and satisfy their needs that gives unique and

memorable experience.

4. To expand the farm resort and offer other distinctive services.

 18

SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the strengths,

weaknesses, opportunities, and threats of the proposed business. This portion discusses

the company’s strengths, weaknesses, opportunities, and threats.

Strengths

Skilled employees- Skilled employees have the expertise to personalize

the service they provide based on each customer's unique needs and preferences.

By listening actively, understanding customer requirements, and offering high-

quality services to satisfy clients, skilled employees can create personalized

experiences that exceed customer expectations.

Service quality- Providing excellent service ensures that guests have a

positive experience during their stay at the farm resort. Satisfied customers are

more likely to return in the future, recommend the resort to others, and leave

positive reviews, thereby enhancing the resort's services can give positive aspects

to the farm resort that make you stand out from competitors.

Unique Experience- A unique experience provides compelling content

for marketing and promotional efforts. It gives the farm resort a story to tell and

creates an unforgettable moment that can be shared through various marketing

channels, including social media, and blogs.

Sustainability- Embracing sustainability enhances the farm resort's

brand image and reputation as a responsible and ethical business. Guests

 19

are more likely to view the resort favorably and perceive it as sustainable tourism,

attracting mindful tourist who appreciate environmentally friendly practices and

supports from local business.

Weaknesses

Seasonal Demand- Seasonal demand results in fluctuations in revenue,

with peak seasons it affects the business operations that results to a lower demand.

This can lead to revenue instability and financial challenges for the farm resort, as

it may struggle to cover operational expenses.

Location- The farm resort is situated far from major cities or well-

known tourist destinations, it may be challenging for guests to reach, particularly

those without private transportation. Poor accessibility can delay guests and limit

the resort's market reach, resulting in lower occupancy rates.

Opportunities

Diversification of Services- Diversified services cater to a wider range

of guest preferences and interests, enhancing the overall guest experience and

satisfaction. Guests have the opportunity to customize their stay by choosing from

a variety of activities and amenities that suit their preferences, leading to higher

guest satisfaction and positive reviews. It can also help mitigate the impact of

seasonal demand fluctuations on the farm resort's revenue. By offering a mix of

indoor and outdoor activities, as well as year-round amenities, the resort can

attract guests throughout the year

 20

and reduce dependence on peak seasons for revenue generation.

Changing consumer Trends- There is a growing trend among

consumers towards experiential travel, where they seek authentic and immersive

experiences that connect them with nature, culture, and local communities. A

farm resort can capitalize on this trend by offering unique experiences such as

farm-to-table dining, recreational activities and cultural exchanges, attracting

travelers seeking meaningful and memorable experiences.

Threats

Competition- Farm resorts are becoming increasingly popular, which

might increase competition for visitors. It’s possible that the availability of

farm resorts will be impacted by the addition of farm experiences by other rural

B&Bs, vacation rentals, and conventional hotels. Weather conditions-

Severe weather events, including floods, storms, or droughts can damage

infrastructure and facilities at the farm resort, leading to costly repairs.

Damage to buildings, roads, utilities, or landscaping can compromise guest

safety, disrupt services, and affect the

resort's ability to operate effectively.

Regulations- Regulatory requirements imposed by government agencies

or local authorities may entail significant compliance costs for the farm resort.

This can include obtaining permits, licenses, certifications, and inspections, as

well as implementing safety, health, environmental, and zoning regulations.

Penalties by the Department of Tourism (DOT) the farm

 21

resort being closed down may result from non-compliance.

Public relations- Negative publicity, whether from guest complaints,

environmental controversies, or social media negative feedbacks from the

customers can damage the reputation of the farm resort and can affect the

potential guests. Instances of poor service, safety incidents, environmental

violations, or other negative events can quickly spread through different social

media platforms, impacting the resort's image and credibility.

 22

Chapter III

MARKETING ASPECT

This chapter discusses the market research analysis, intensity of competition,

marketing strategy, pricing strategy, and promotional strategy.

Market Research and Analysis

In this section, the market research and analysis examine the various aspects

influencing marketing success, such as the target market, estimated market share, and

level of competition.

Target Market

The target market of the business will primarily be the tourists like foreign

and domestic who visited Polomolok, South Cotabato and above will be separated

into two groups: individual families with children and groups like school groups,

senior groups, church groups, civic groups, daycare groups, children and youth

groups, and tour groups. These markets are those particular children or youth that

are frequently targeted on weekdays, while adults are often targeted on weekends

and holidays. This makes them more likely to seek adventure, thrill, and

relaxation through various activities and yield health benefits.

The secondary target market is those residing in nearby municipalities and

cities in the South Cotabato area.

 23

Table 2

Target Market Size

2023 population % of willing Total Less: Adjusted Target

of local and respondents Margin of Market Per Age
foreign tourist in error Bracket
Polomolok
10%
16,234 100% 16,234 1,623 14,611

Based on the data from the Arts, Culture, Tourism and Museum Development

Promotion Units of the Province of South Cotabato, the total number of tourist arrival for

the year 2023 is 16,234. Through the survey that was conducted online with 100

respondents, including a walk-in survey, the number of willing respondents was

identified. A total of 100 respondents are willing to patronize the proposed business,

which implies that the business will be profitable to establish at this time, given its new

and unique way of life. In addition, the researcher used a 10% margin of error to calculate

an adjusted market size of 14,611.

Demand and Supply

In this section, the researcher presents the items undertaken by demand. It consists

of the business target market, the past demand pattern evaluations, and the demand and

supply projections. The researcher would use demand and supply analysis to determine

how the connection between demand and supply could fulfill customer satisfaction while

minimizing opportunity costs. The proposed business in Polomolok, South Cotabato, has

three direct competitors.

 24

Demand Projection

The demand projection presents the industry’s potential demand, which is

a favorable opportunity for the market. The next page summarizes the frequency

of the market.

Table 3

Market Demand

Particulars Total
Adjusted Market Size 14,611
Multiplied by: Average Frequency 23
Total Market Demand 336,053

The table above shows the calculation for getting the total market demand for the

proposed business. The adjusted market size is computed as shown in this table of the

study with 14,611 which is to be multiplied by the average frequency in a year which is

23. The total demand will be used to determine the market share of the business,

considering its direct competitors. Therefore, total market demand is 336,053.

The next page shows the average frequency per activity of the proposed business

in a year. The researcher gathered all of the data and information from the Google form,

which serves as the survey questionnaire. The frequency in a year was multiplied by the

number of willing respondents to arrive at an approximate number for the total

frequency.
 25

Table 4

Average Annual Frequency

Respondents Accommodation

Single Twin Family King Queen

Room Room Room Room Room

1 2 9 10 9 2

2 10 0 2 5 4

3 5 1 6 1 3

4 1 5 2 9 9

5 2 1 10 3 1

6 4 6 2 2 9

7 10 0 9 4 5

8 5 1 2 9 3

9 8 10 5 5 4

10 0 6 2 1 1

11 1 3 0 2 10

12 2 9 4 1 9

13 5 8 3 10 4

14 2 5 5 3 3

15 6 0 0 9 5

16 9 2 2 0 7

17 2 0 2 4 3

18 4 8 0 8 4
 26

Respondents Accommodation

Single Twin Family King Queen

Room Room Room Room Room

19 5 0 1 3 5

20 5 1 4 0 5

21 0 4 8 5 2

22 6 0 0 9 1

23 7 2 0 1 10

24 8 6 3 3 6

25 9 4 4 6 3

26 10 1 3 1 4

27 9 0 9 10 5

28 2 9 2 5 4

29 2 0 6 9 2

30 1 8 5 3 1

31 3 3 2 5 10

32 1 8 7 9 9

33 2 1 1 10 5

34 10 9 2 6 4

35 6 4 4 5 6

36 1 3 7 4 7

37 10 8 3 1 5

38 5 1 10 10 4
 27

Respondents Accommodation

Single Twin Family King Queen

Room Room Room Room Room

39 9 0 1 6 2

40 4 6 0 5 1

41 2 5 0 6 0

42 6 1 6 7 9

43 0 1 0 10 3

44 4 7 1 5 4

45 6 9 7 9 5

46 1 1 2 4 1

47 9 0 9 1 0

48 2 9 4 8 4

49 3 2 3 6 5

50 4 1 4 4 9

51 10 5 8 9 8

52 6 1 3 0 10

53 1 3 4 0 8

54 10 9 9 10 4

55 3 4 2 6 5

56 4 2 10 0 3

57 1 6 0 0 10

58 2 4 0 5 1

59 4 8 8 9 10
 28

Respondents Accommodation

Single Twin Family King Queen

Room Room Room Room Room

60 1 4 4 0 2

61 1 10 6 0 4

62 2 5 5 2 10

63 4 9 7 0 9

64 10 4 0 6 2

65 1 5 4 9 2

66 2 3 2 5 4

67 3 0 1 0 9

68 0 0 5 10 4

69 3 10 7 3 3

70 10 9 3 5 5

71 5 10 9 4 8

72 1 6 2 9 4

73 0 1 0 4 9

74 0 5 5 5 5

75 2 9 4 9 2

76 4 3 0 0 3

77 1 0 0 6 1

78 7 9 8 5 8

79 8 1 10 7 10
 29

Respondents Accommodation

Single Twin Family King Queen

Room Room Room Room Room

80 1 6 2 4 3

81 9 5 2 5 10

82 10 8 5 0 1

83 9 9 3 9 10

84 6 1 8 3 5

85 5 6 0 4 9

86 7 2 1 6 5

87 1 5 8 5 1

88 1 9 1 0 8

89 0 6 5 2 9

90 7 1 2 4 4

91 10 0 8 0 3

92 7 6 4 6 8

93 10 9 3 5 1

94 10 5 5 2 10

95 2 3 2 4 9

96 10 9 9 0 8

97 9 8 6 0 6

98 9 4 4 4 10

99 0 0 1 6 10

100 10 8 5 8 1
 30

TOTAL 465 443 394 466 521

Divide by:

Number of

Responses 100 100 100 100 100

Average

Frequency per

product 5 4 4 5 5

Total Annual Frequency 23

Supply Projection

The supply projections for the services will be based on an upward trend

in the availability of accommodation facilities, and recreational amenities to meet

the anticipated demand from guests seeking rural retreat experiences. The

researcher will use the monthly customers handled by the existing players to

define the estimated annual supply of the business. Determining the supply of

competitors is significant since it will determine the free market for the proposed

business.

The table on the next page shows the summarized total annual supply of

competitors for the business.

 31

Table 5

Supplies from Direct Existing Players

Average number of
Number of working
Existing Business customers per Annual supply
months in a year
Month
Durian Garden Resort 678 12 8,136
Dolores Farm Resort 892 12 10,704

Herd Pine Farm Resort 745 12 8,940

Total Supplies from Direct Existing Players 27,780

The table above shows that the proposed business has three (3) direct competitors

once established. The average number of a customer catered in a month shown in the

second column. The number of working months in a year in the third column. The total

number of working months in a year which is twelve (12), is the next factor to consider.

Finally, the researcher multiplies the average number of customers to number of working

months in a year, and multiplies to each month by the annual supply of the existing

players.

Estimated Market Share

Estimated market share is the approximate percentage of an industry that is earned

by a particular business over a specified time period. The measurement indicates a

company’s size within its market. To determine the market share of the proposed

business, free market and annual capacity of the proposed business were determined.
 32

Demand and Supply Analysis

The table below shows the demand-supply analysis of the proposed venture.

Table 6

Demand and Supply Analysis

Particulars Total
Total Market Demand 336,053
Less: Total Supplies from Existing Players 27,780
Free Market 308,273

Table 6 shows in the free market figure of 308,273, which is computed by

subtracting the total supplies from direct competitors.

Estimated Market Share Percentage

Shown below is the estimated market share of the proposed business.

Table 7

Estimated Market Share Percentage

Particulars Total
Estimated Annual Capacity 3,504
Divided by: Free Market 308,273
Estimated Market Share Percentage 1.13%

The market share of the proposed business is computed by using the total

estimated annual practical capacity, 3,504, to be divided by the free market of 308,273

that was computed in the proceeding table. The market share of the proposed business is

1.13%.
 33

Figure 3, presented below, shows the percentage of the estimated market shares of

the proposed business.

Existing Player 30%

Proposed Business 1.13%

Free Market 68.87%

Figure 3. Estimated Market

Share Capacity of the Business

The capacity of the business is the maximum capability of the business to

produces the production necessities to cater to the needs of the customers and patrons of

proposed business. The proposed venture is a Farm resort, which is presented in the table

below.

Table 8

Projected Annual

Capacity

Single Room

Total number of Single Room 2

Multiply by: Annual Operating Days 365
Total Accommodation 730
Multiply by: Practical Capacity Rate 80%
Total Estimated Annual Capacity for Single Room 584
 34

Twin Room

Total number of Twin Room 4

Multiply by: Annual Operating Days 365

Total Accommodation 1,460

Multiply by: Practical Capacity Rate 80%

Total Estimated Annual Capacity for Twin Room 1,168

King Room

Total number of King Room 1

Multiply by: Annual Operating Days 365

Total Accommodation 365

Multiply by: Practical Capacity Rate 80%

Total Estimated Annual Capacity for King Room 292

Queen Room

Total number of Queen Room 1

Multiply by: Annual Operating Days 365

Total Accommodation 365

Multiply by: Practical Capacity Rate 80%

Total Estimated Annual Capacity for Queen Room 292

Family Room

Total number of Family Room 4

Multiply by: Annual Operating Days 365

Total Accommodation 1,460

Multiply by: Practical Capacity Rate 80%

Total Estimated Annual Capacity for Family Room 1,168

 35

OVERALL TOTAL OF ROOMS

Single Room 584
Twin Room 1,168
King Room 292
Queen Room 292
Family Room 1,168
Total Estimated Annual Capacity 3,504

The proposed business's annual capacity is estimated in the table above. The

proposed business would operate based on the room that the customers occupied. The

facility's entire capacity was determined by each service offered in that particular activity.

The total number of rooms per day will be multiplied by the 365 business days in a year

after being determined.

The resulting annual capacity will now be multiplied by the 80% practical

capacity rate to obtain the anticipated annual capacity for each activity, which will then

be added together to obtain the Farm Resort's overall annual capacity. This is used to

determine annual capacity in order to maintain the data's conservatism. Therefore, the

total estimated annual capacity is 3,504.

Intensity of Competition

The intensity of competition for the proposed business is very low if it will

operate be there are three existing businesses in the locale. The existing business is

located in Barangay Koronadal Proper, while the proposed business will be located in a

rural place. Because of the business's location, there is less intense competition.
 36

Marketing Strategy

This section outlines the primary marketing strategies and tactics that aim to

attract and engage the local community. With the city’s diversification A well- thought-

out marketing plan is essential for establishing the proposed farm resort in Polomolok,

South Cotabato.

Sales and Distribution Strategy

The proposed Farm Resort in Polomolok, South Cotabato, must effectively

market and deliver services to meet the target market’s demands, focusing on

service strategies that consider essential components and factors. Customers of

the proposed firm will engage in direct sales of the services provided. There won't

be any agents or channels. Through walk-in transactions, customers will have

immediate access to the service through in-person transactions. Contacting the

advised business's website or doing so over the phone, both landline and cellular,

will also be able to accommodate an online direct transaction. Direct contact will

be made with the company.

Pricing Strategy

Pricing is an important component in running a business since it defines the value

of the services to be provided and the available clients to use. Thus, to meet the main goal

of the proposed business, which is to gain profit, the pricing plan must be inspected, well-

computed, and properly managed to achieve business profitability and success.

 37

The proposed business will use a competitive base pricing strategy, where

competitors influence the price point. They will charge a premium rate to stay ahead of

the competition. They will consider pricing strategies like Growing, Skim, Follow, and

Pursuit, focusing on accommodation and services to maximize revenue and maintain

customer satisfaction.

Pricing Structure

In a service industry, such as a farm resort, a pricing structure entails setting

prices for various services, activities, and amenities provided to customers. A base

pricing structure, membership program, package deals, or group events will be the

pricing structure of the proposed venture.

Table below shows the prices of each product.

Table 9

Price List

Rooms No. of Room Inclusions Room Rate

Single Room 2 1 single bed and TV 950/night

Twin Room 4 2 single beds, and TV 1,200/night

King Room 1 1 king size bed, and TV 2,400/night

Queen Room 1 1 queen size bed, and 2,400/night

TV,
Family Room 4 3 double deck beds, 3,600/night
TV, and refrigerator
 38

Table 10

Inclusions Rate
Inclusion for Booking:

ENTRACE FEE

SERVICES:

TRAMPOLINE- FREE

Advertising Promotion

This section outlines strategies to be adopted for distributing the proposed

business recognition connecting with target markets, to build loyal client base, vital for

the feasibility analysis of the proposed business in the Farm Resort industry.

Advertising

This section outlines strategies to be used in order to establish the

proposed business, connect with target markets, and build a loyal client base, all

of which are necessary for the feasibility analysis of the proposed business in the

leisure center industry. The planned venture will use a variety of sales and

promotion tactics to reach the market and develop its appeal.

Social Media Platform. The researcher recognized the increasing

importance of various social media platforms where users may share their reviews

and comments on a variety of subjects. A Facebook page will be built and

regularly updated with the entity's business name, location, contact information,

services, costs, and promotions to provide information

 39

to target markets. Additionally, this will be used to assist customers who have

inquiries about the products and places where they may make reservations.

Facebook will be utilized to advertise the proposed business two months prior to

launch and will do so during the first year of operations. Brochures/Flyers.

Serving as the ideal opportunity to serve as a popular rural tourism

destination distinguished by exceptional

accommodation and meal services in a farm setting that offers a variety of

agriculturally-related recreational options. To serve as the ideal introduction to the

business regarding the tourist perceptions of the farm resort. The entity's name,

address, phone number, services, prices, and marketing for the target market will

all be included in the brochures and flyers. A brochure or flyer is 8.5 by 11

centimeters. This will be dispersed in areas with a lot of

people, such as malls and busy streets.

In figure 4 shows the sample of the proposed venture’s brochures and flyer

layout is presented in this figure on the succeeding page of this paper.

Figure 4. Proposed Venture’s Brochure/Flyers Layout

 40

Tarpaulin. Traditional advertisements tarpaulins and other materials will

also be used. The tarpaulin ads will be updated daily to notify target markets of

the entity's business name, address, phone number, services, prices, and

promotions. This will be placed in prominent locations like busy streets and

highways where plenty of people can view it. The proposed firm will hang a 3 by

5 foots tarpaulin in 23 barangays in Polomolok, South Cotabato, as well as in 10

other municipalities and cities.

Table 11

Advertising

Advertising Quantity
Activity Size / reach Amount Frequency/ Total Amount
Time Frame
Social Media Mindanao 600 12 7,200
Wide
Brochure/ 8.5 x 11 cm 500 50 pcs per 25,000
Flyers month

Tarpaulin 3 x 5 sq foot 700 50 pcs per year 35,000

 41

Chapter IV

TECHNICAL ASPECT

This chapter addresses the proposed business technological feasibility and

the proposed location, vicinity map, location review and comprising layout. This chapter

also shows the flow of service and the availability of resources, equipment, and facilities

for its equal operations.

Service Flow

The proposed business farm resort service flow shows the process of availing of

the proposed business farm resort. It helps to have a smooth transaction and process

between the customer and the personnel. Also, service flow would affect the markets’

support of the proposed business services, showing how fast and convenient the service

process is for consumers. The figure shown below is an illustration of how G Farm

approaches and entertains its customers.

Figure 5. Service Flow

 42

The service flow used by the proposed business starts with the inquiries of the

customers about the services offered to the personnel. The staff will entertain customers’

queries by guiding them to the facilities and accommodations. The staff will let the

customer decide whether to avail the services or not. If yes, the staff will accommodate

the services of the customers and receive the payment automatically after the services

have already been taken.

Presented on the table below are the following steps in the service flow, including

the minute(s) it takes to complete the said process.

Table 12

Minutes Consumed in Service Flow

Minutes
Service Flow Consumed per
Process

Step 1 5 minutes

Step 2 5 minutes

Step 3 1,200 minutes

Step 4 10 minutes

Step 5 -

Total Minutes Consumed 1,220 minutes

 43

Business Location

This section discusses the specifics of the proposed business, which is G FARM,

which is crucial to determining whether the planned business is feasible. Depending on

how many customers can easily see and visit the location, it determines how marketable

the service is. G FARM takes into consideration a number of elements before selecting a

company location, including accessibility, consumer and foot traffic, the area's reputation,

and nearby businesses.

This section also discusses the site and surrounding area map, plan layout, capital

expenditures, sources, projected costs, and contracts.

Location Map

The location is important to a business's success. Finding the ideal location

certainly gives the business an important advantage. This section will explain the

locations where the G Farm will be open throughout the day. The researcher made

the choice to locate the planned business in the easily accessible in Polomolok,

South Cotabato.

There are 5 hectares of land there in total. The area is one where natural

resources preservation and conservation are maintained. Farming is underway for

a variety of crops and useful tress, including corn, mango trees, pineapple fields,

and coconut trees. Approximately 60.9 kilometers have been traveled in one hour

and five minutes.

 44

Figure 6. Location Map

Vicinity Map

This section illustrates the place of business and its neighboring

establishments. It also shows where the G FARM will be exactly situated during

the operation. The figure below shows the vicinity map of the proposed business.

Figure 7. Vicinity Map

 45

Layout

Layout describes how the proposed business is technically set up. It is a

floor plan of the actual buildings that are used for facility. The G FARM

business's website development is shown in this section. It specifically shows the

general perspective as well as the specifics of the planned business's exterior.

The business layout serves as an illustration of the design the researcher

selected, which will be the layout of the building for the proposed business,

displaying the available space, machine arrangements, personnel area, and other

amenities. The researcher's evaluated design utilized, and it took into account

factors like building safety, aesthetic appeal, provisions for quick services, and

most significantly, the comfort of the clients.

The next page shows the figure that presents the floor plan proposed by

the business. It illustrates the total area accumulated by the premises, which will

determine the total capacity that the business can accommodate considering the

dimensions of the equipment, furniture, fixtures, and supplies used by the

business, as well as the identified personnel areas.

The proposed business will be buying land, as shown in the illustration on

the next page.

 46

Figure 8. Room Floor Plan

 47

Figure 9. Building Perspective

Figure 10. Front View Layout

 48

Figure 11. Room Layout

Figure 12. Parking Layout

 49

Figure 13. Pool Area Layout

Figure 14. Camping Site Layout

 50

Capital Expenditure, Source, Estimated Cost and Contracts

The proposed business will be buying a 5-hectare lot of space in

Polomolok, South Cotabato. The business will be spending money on the buying

land it cost P500,000. The business will incur some expenses for the building,

which are charged for land contractual. The proposed farm resort facility will be

constructed by S.W. Rouzie Enterprises has a total estimated cost of P2,418,000.

Table 13

Construction

Cost

Particulars Amount

I EARTH WORK 200,000

II CONCREATE WORK 100,000
III STEEL WORK 170,000
IV FORMS AND SCAFFOLDINGS 100,000
V MASONRY 130,000
VI CARPENTRY WORK 180,000

VII ROOFING WORKS 150,000

VIII DOORS AND WINDOW 140,000
IX PLUMBING WORKS 160,000
X ELECTRICAL WORKS 120,000
TOTAL MATERIALS COST 1,450,000
LABOR WORKS 968,000
TOTAL PROJECT COST 2,418,000
 51

Equipment, Furniture and Fixture, and Supplies used in the services

In this section, the proposed business will show what machinery, equipment,

furniture, fixtures, and supplies are needed to run the business effectively. These

resources are used for administrative and selling activities and are available locally. Each

piece of equipment, furniture, and fixture and supplies is depreciated over its useful life.

Equipment

This section presents the equipment needed to conduct the operation,

including other tools and devices needed in the establishment of the proposed

business.

Table 14

Equipment Specifications

Item Descriptions/ Price/ Quantity Estimated Suppliers

specifications unit Useful life

Computer Set Acer Aspire TC1750 is a 38,049 3 10 years Dwinar

Window 11 Home laptop Compute
with 8GB DDR4 memory Center
and a 21.5- inch
1950x1080
monitor.

Printer HP Smart Tank 520 All 9,791 2 5 years HP Concept

-in- One: This offers print, Store
scan, and copy with manual
two-sided printing, USB 2.0,
and up to 6,000 black or
6,000 color pages included.
 52

Item Descriptions/ Price/ Quantity Estimated Suppliers

Specifications Unit useful life

Air conditioner Carrier Aura Inverter, full 37,500 4 5 years RS air-

DC inverter with ECO gear, condition and
high CSPF energy savings, Refrigeration
services
and intelligent eye censor
reduce energy
consumption.
Television Samsung Neo QLED 4K 50,000 10 6 years JMA TV
with 65 inches has a multi- Solution
screen capability picture
right to the edge with an
infinity display.

Ventilator Fan Standard SDF-10 Duct 1,530 5 8 years KCC Mall of

Fan Gensan
Dimension: 245mm
x 245 mm Wattage:
35 W

Wifi PLDT Home Fiber delivers 2,999 5 6 years PLDT company

the fastest fiber speed of 10
GB/s.

Telephone Communication or sharing of 5,000 10 5 years KCC Mall

information between two of Gensan
people where they are not
present face to face.

CCTV Mijia CCTV camera 1,200 10 5 years Sun light Home

has a dual motorhead Automation and
with a 360-degree Services Inc
horizontal and 96-
degree vertical view. It
has a F2.1 aperture
for a better night.
Pool Cleaning A set of tools and 30,000 1 10 years SMV
Equipment equipment designed to Enterprises
facilitate the cleaning
and maintenance of
swimming pools.
 53

Item Descriptions/ Price/ Quantity Estimated Suppliers

Specifications Unit useful life

Trampoline A trampoline is a device 30,000 1 3 years Lazada,

consisting of a piece of taut, Phillippines
strong fabric stretched between a
steel frame often using many
coiled springs. People bounce on
trampolines for recreational.

Fog Disinfectant Chemical application 10,000 1 7 years ACE Hardware

method where very fine SM City General
droplets of disinfectant are
sprayed throughout a room
in a fog.

Refrigerator Toshiba 661L double- 60,000 2 10 years SM

door refrigerator. This is Appliance Center
an automatic ice maker
with an ultra- fresh zone
and an LED hybrid
deodorizer.
Dimension: Length-35inch
Width-36inch Height-72
Inch
Freezer Unions Dura chest model is 17,000 2 5 years SM
a chest freezer for meat Appliance Center
storage.
Dimension: Length-35 inch
Width-22inch Height- 33.3 inch

Pool Vacuum A cleaning device designed 5,000 2 7 years SMV Enterprises

to remove debris, dirt, and
grime from your pool
periods.

Emergency Tool Any auxiliary fossil 50,000 1 3 years ACE

fuel-powered that is used Hardware SM
only in emergency
situations. city Gensan
 54

Item Descriptions/ Price/ Quantity Estimated Suppliers

specifications Unit useful life

Laundry Machine Agitating the fabric with 35,200 2 6 years SM

water and detergent, Appliance
which helps to removed Center
dirt and stains.
Dimension:
Length-345mm
Width-239 mm
Height- 235 mm

Solar Panel Energy generated by the 60,000 2 5 years Alectric

sun that is harnessed Engineering
directly or indirectly for Services
human use.
Dimension:
Length- 156 mm
Width- 156mm

Water Tank Large containers used to 150,000 2 10 years NDSCGSC

store water. Water Tank

Fire Extinguisher A portable device that 399 8 5 years Kcc Mall

discharges a jet of water, of Gensan
foam, gas, or other material to
extinguish a fire.
 55

Furniture and Fixture

This section presents the furniture and fixture needed to conduct the

operation, including other substantial and secured needed in the establishment of

the proposed business.

Table 15

Furniture and Fixtures Specification

Descriptions/ Price Quantity Estimated Suppliers

Item
specifications Unit useful life

Office Table Piece of furniture with a flat 20,000 3 10 years GII Mktng and
table-style work surface. Office Supply

Office chair Seat designed for use in and 5,000 5 6 years GII Mktng and
office or workspace. Office Supply

Office Cabinet A piece of office furniture for 15,000 3 5 years GII Mktng and
storing paper documents in file Office Supply
folder.

Office Couch Essential piece for reception 20,000 1 8 years GII Mktng and
areas and staff breakout spaces, Office Supply
offering visitors and staff a
comfortable spot to relax.
 56

Descriptions/ Price/ Quantity Estimated Suppliers

Item Specifications Unit useful life

Plastic Table Item of furniture with a 430 10 10 years Metro Plaz

raised flat top and is Plastic
supported most Center
commonly by 1 to 4
legs.

Plastic Chair A seat, especially for one 300 100 10 years Metro Plaz
person, usually having four Plastic
legs for support and a rest Center
for the back and often
having rest for the arms.

Wooden Ceiling The ceiling of a room or 3,000 18 6 years ACE

Fan space, usually electrically Hardware
powered, it at uses hub-
SM city
mounted rotating blades to
circulate air. Gensan

Room Cabinet Case or cupboard with 10,000 25 10 years Home

Shelves and /or drawer Solutions
for Depot Plus
storing or displaying
items.

Queen Size Bed Larger than a double 14,980 5 10 years Suppliers

bed, but smaller than from
king-size, usually 60 wood
workers
inches wide and
80 inches long.
 57

Item Descriptions/ Price/ Quantity Estimated Suppliers

Specifications Unit useful life

King Size Bed Larger or longer than 14,950 5 10 years Suppliers

usual from
Size 72 inches in width wood worker
and 72 to 78 inches.

Double Deck Stacked on top of 21,870 10 10 years Suppliers

Bed another, from
allowing two or more wood worker
sleeping space to occupy
the floor space usually
required by
just one.
Folding Bed The bed can be easily 3,500 5 8 years Mandaue
folded up and stored Foam
away
when not in use.

Single Bed Bed use for single 10,100 5 10 years Suppliers

person from
wood worker

File Cabinet A piece of office furniture 5,000 2 10 years Home

for storing paper Solution
documents Depot Plus
in file folders.
 58

Supplies

This section presents the supplies needed to conduct the operation,

available to the consumer needed in the establishment of the proposed

business.

Table 16

Supplies Specification

Item Descriptions/ Price/ Quantity Suppliers

Specifications Unit

Bond Paper Uncoated stock that is used for 200 20 reams Crown
writing, drawing, and of course Bookstore
printing things like letterhead
and business documents.

Paper bag Made from used paper which is 45 1000 pcs Crown
reprocessed for different Bookstore
purposes.

Pencil Writing utensil with a graphite 8 20 pcs Crown

lead embedded in a wooden Bookstore
shaft.

Ink Fluid or viscous substance used 250 30 set Ink Now

for joining papers together. Gensan
 59

Item Descriptions/ Price/Unit Qty Suppliers

specifications

Envelope Flat paper container with a 20 1000 pcs Crown

sealable flap, used to Bookstore
enclosed a letter or
document.

Stapler Set Mechanical device used for 40 7 pcs Crown

joining papers together. Bookstore

Pen An ink filled tool that you use 10 50 pcs Crown

for writing or drawing. Bookstore

Folder An icon on a computer screen 20 100 pcs Crown

that can be used to access a Bookstore
directory containing related files
or documents

Marker An ink-filled pen with a wide 30 5 pcs Crown

tip. Bookstore

First aid and medicine Holds supplies used to treat 1,360 10 sets Amesco Drug
kit minor injuries including cuts,
scrapes, burns, bruises and
sprains.
 60

Item Descriptions/ Price/ Quantity Suppliers

Specifications Unit

Broom stick A cleaning tool consisting of 15 20 pcs Citi Hard Ware

usually stiff fibers, is thus a Gensan
variety of bush with a long
handle.

Dust pan Flat handheld receptacle into 120 10 pcs Citi Hard
which dust and waste can be Ware
swept from the floor. Gensan

Gloves Covering for the hand worn for 110 20 pairs ACE
protection against cold or dirt Hardware
and typically having separate SM City
Gensan
parts for each finger and the
thumb.

Hand sanitizer Either spray or gel are essential 100 20 pcs MJ-AM
products that, when applied Trading
correctly, can reduce the
presence of potentially harmful
germs on your hands.

Flower Basket Large handle and is 50 1000 pcs Jedefleur

traditionally used to carry cut Flower Shop
flower.

Boots Footwear designed and made for 400 20 pairs ACE

a specific need, namely Hardware
providing gardeners with SM City
Gensan
sufficient support and protection
as they go about with their daily
duties.
 61

Item Descriptions/ Price/Unit Qty Suppliers

Specifications

Trash Bag Disposable bag used to 20 1000 pcs MAPI

contain solid waste Packaging
Depot

Bed and Pillow sheet It is a rectangular cloth and 1,000 500 sets Mandaue
has four corners and sides Foam
with a secured drawstring.

Towel Plain white towels that are 380 50 pcs SM

generally used in Store
accommodation. Gensan

Lights Used to convert electricity 3,200 50 pcs Sun light

into light, consisting of a Home
source of illumination. Automation
and Services
Inc

Trash Bin A bin that holds rubbish until it 150 30 pcs KCC Mall
is collected. of Gensan

Emergency Light Battery-backed light device that 540 9 pcs Sun light
switches on automatically when Home
building experience, a power Automation
and Services
outage or when a lightning
Inc.
circuit fails.

Infrared Lights Electrical devices which emit 1,580 5 pcs Sun light
infrared radiation. Home
Automation
and Services
Inc.
 62

Item Descriptions/ Price/ Quantity Suppliers

specifications Unit

Pool Chlorine Chlorine is used in pools and 5,000 5 pcs SMV

other chlorinated aquatic venues Enterprises
to kill germs.

Laundry soap Detergent in the form of a 200 10 gallons KCC Gensan

powder or liquid that is used for
washing clothes and other
things made of cloth.

Utilities

Utilities are significant elements for the business to operate and serve its

customers. Electricity and water supply will then be supplied by South Cotabato II

Electric Cooperative, Inc. (SOCOTECO II) and Polomolok Water District, respectively.

Electricity consumption

Electricity is essential to the operation of the business. Electricity usage

will come from machinery used to produce and store food products. Overusing

electricity is not a good idea, for it could add additional expenses to the business.

The next page shows the table of electricity consumption for the proposed

business.
 63

Table 17

Electricity Consumption

Annual
No. Of Divide
Rate utilities
hours 1,000
Particulars Quantity Wattage Total Kwh per expense
in a kilo
kw (inclusive
day watts
of vat)
Computer
3 183 8 4,392 1,000 4.39 10 16,031
Set
Printer 2 100 6 1,200 1,000 1.20 10 4,380
Air-
4 3,500 15 210,000 1,000 210.00 10 766,500
Conditioner
Television 10 75 8 6,000 1,000 6.00 10 21,900
Ventilator
5 35 24 4,200 1,000 4.20 10 15,330
Fan
Wi-Fi 5 88 24 10,560 1,000 10.56 10 38,544
Telephone 10 2 24 480 1,000 0.48 10 1,752
Lights 50 22 12 13,200 1,000 13.20 10 48,180
CCTV 10 15 24 3,600 1,000 3.60 10 13,140
Refrigerator 2 400 24 19,200 1,000 19.20 10 70,080
Freezer 2 180 24 8,640 1,000 8.64 10 31,536
Laundry
2 1,400 5 14,000 1,000 14.00 10 51,100
Machine
Pool
2 1,110 4 8,880 1,000 8.88 10 32,412
Vacuum
Water Tank 2 4,500 24 216,000 1,000 216.00 10 788,400

Total 1,899,285

Water consumption

Water supply plays a role for the business to operate to maintain sanitation

and cleanliness. Water consumption in the proposed business to pool area,

washing the dishes, equipment, and hands for sanitary purposes.

The next page shows the table of water consumption for the proposed

business.
 64

Table 18

Water Consumption

No. of Water
Monthly Water Price per
Monthly months Expense
Activity Consumption in cubic
Consumption in a
cubic meter meter
year
WATER FUSE 40 700 28,000 12 336,000

Telephone/Internet

PLDT Home Fibr will provide Internet access to the company. A fixed

monthly internet price of P38,544 will be paid. It will be used in a variety of

internet transactions, such as client inquiries and online purchases. Without it, the

proposed organization would be impossible to function properly. It will also be

used to search other websites for new products that have been released onto the

market.

Table 19

Telephone and Internet Services

Particulars Monthly Annual Utilities Vat

INTERNET 38,544 462,528

Waste Management

Waste management refers to the gathering, moving, processing, or disposing of

waste products, typically those produced by human activity, with the goal of minimizing

their impact on public health or neighborhood aesthetics or amenities. By properly

disposing of waste, businesses may draw in more customers and reduce the pollution that

comes from people's trash and garbage trucks. Every food business generates waste,

some of which must be recycled,

 65

some of which must be stored in a particular manner, and some of which are harmful.

Hazardous waste disposal

G Farm Resort is specialized in food waste and is highly vulnerable to producing

awful smells or odors. Usually, there might be leftovers, and that waste is subject to

contaminants, so it is necessary to dispose of it separately from other garbage or waste.

Having an extra trash can intended only for food waste and left- overs is necessary and

beneficial to maintaining cleanliness.

Conserving Biodiversity, Ecosystem, and Landscape

G Farm Resort will be created to preserve biodiversity, ecosystems, and

landscapes while attracting tourists. On the other hand, it strategically maintains the

natural resources inherited intact from the land itself, even when development is infinite.

This way, use this thing to make the farm more developed and attract more tourists.
 66

Chapter V

MANAGEMENT AND ORGANIZATION ASPECT

This chapter presents the form of business organization, the organizational

structure, personnel qualifications, personnel duties and responsibilities, personnel salary

structure, pre-operating activities, and a Gantt chart for various activities to be done

before the actual operation.

Form of Business Organization

The proposed business will be in the form of sole proprietorship. Sole

proprietorship is the simplest and most common form of business organization. It is an

unincorporated business owned and run by one individual, with no distinction between

the business and the owner. This means that the owner is entitled to all profits and is

responsible for all the business's debts, losses, and liabilities. A sole proprietorship is a

business entity owned and operated by a single individual, with no legal distinction

between the owner and the business (Longenecker, J.et al., 2020). This form of business

is particularly advantageous for those starting with a low initial investment and operating

on a smaller scale (Johnson, J., & Smith, R. A. 2023).

Organizational Structure

The proposed business will have a flat organizational structure. This flat

organizational structure is a type of organizational structure characterized by having few

or no levels of middle management between staff and executives. This structure aims to

empower employees, promote open communication, and improve decision-making

speed. Flat organizational structure is a management

 67

system with few managerial positions, and workers can move up or down throughout the

company as needed. In more flat organizational structures, there are several common

traits, such as faster decision-making and responses and improved communication

(Johnson, S. 2023).

The figure below, presents the flat organizational structure of the firm in which

researchers presents those perspective individuals in the organization and its

environment.

Owner/Manager

Cashier Room AttendantUtility Personnel Life Guard

Figure 15. Flat Organizational

Structure Personnel Qualifications

In assigning personnel to the position, it is vital to evaluate their characteristics in

order to ensure adequate filling of the organizational structure. The job prerequisites for

applicants to be hired by the proposed business are as follows.

Cashier
 Bachelor’s Degree in Business or related field.

 At least 25 years old

 Preferably female

 Single

 With or without experience

 68

 Cashier should have experience with cash handling and point-of-sale system

 Having a good, pleasing personality

 Have excellent communication skills

Room Attendant

 Senior High School Diploma or Graduate in Hospitality Management

 At least 25 years old and above

 Preferably Female/Male

 Single/Married

 At least 2 years of experience as a room attendant and experience with

industrial cleaning and products.

 A polite and pleasant personality, and lots of energy

 Ability to communicate in English is preferred

 Flexibility to work in shifts

Utility Personnel
 Senior High School Diploma

 At least 25 years old

 Preferably Male

 Single/Married

 At least 2 years working experience in the same field

 Knowledge of cleaning equipment and technique

 Ability to read and interpret written work order

Life Guard
 Senior High School Diploma
 69

 At least 23 years old

 Preferably Male

 Single

 At least 2 years working experience in the same field

 Must be particular to the compliance to Pool Rules/Regulations, Guidelines, and

Policies

Personnel Duties and Responsibilities

Duties and responsibilities will serve as guidelines for the personnel to effectively

carry out their respective task.

Cashier

 Collecting money from guests for lodging, food, drinks, room services, and phone

or computer use.

 Balancing Cash to handling cash transactions, maintaining financial records, and

providing excellent customer service.

 Processing Payment providing customer service, and ensuring smooth financial

transactions within the hospitality setting.

 Counting Money handling financial transactions and guest interactions.

 Recording expenses for each customer in a manner that reflects the unique aspects

of the business.

 Tracking charges for room service, telephone calls, and valet service.

Room Attendant

• Cleaning and sanitizing rooms, hallways, stairways, and guest areas

• Keeping the linen room stocked and laundry the linen and fabric
 70

• Maintaining a safe and healthy environment in guest rooms

• Keeping an eye on the tidiness of the lobby

Utility Personnel

 Cleaning and maintenance encompass a range of responsibilities aimed at ensuring

the cleanliness, functionality, and safety of various facilities and infrastructure.

 Garbage removal involves a range of duties related to waste management and

sanitation to ensure cleanliness and hygiene to the farm resort.

 Storage routines encompass a variety of tasks and responsibilities related to managing

and maintaining storage facilities efficiently.

 Inventory control aimed at managing and optimizing inventory levels within a utility

business.

Life Guard

 Scanning the swimming area to monitor swimmers and identify potential

hazards.

 Enforcing safety rules and providing guidance on proper swimming techniques.

 Acting quickly and decisively in emergencies, including performing water rescues.

 Administering first aid and CPR to injured or medically emergencies.

 Providing assistance and information to guests.

 Collaborating with other lifeguard personnel and resort staff for effective water safety

and guest service.

 71

Personnel Salary Structure

The table below shows the salary structure of the personnel of the proposed

business. Salary is according to the position of an employee in the establishment.

Table 20

Salary Structure
Rate Total Annual
No. Annual
per Daily Night Annual Salaries
Position Of Overtime
Day Wage Differential Salary Expense
Ee Pay
Pay
Room 403 403
Attendant 3 90,675 10,881 540,016 576,286
Cashier 3 403 403 90,675 10,881 540,016 576,286
Life Guard 2 403 403 292,306 316,486
Utility 403 403
Personnel 3 90,675 10,881 540,016 576,286

Pre-Operating Activities

The pre-operating activities of the proposed business were completed over a (11)

months period. The following activities must be completed before the business starts to

operate. It includes conducting a feasibility study, applying for business permits and

licenses, building construction, acquisitions of equipment and furniture and fixtures,

personnel hiring and processes, promoting of the business, and launching the business.

Conducting Feasibility Study. The activity is done to ensure that the

business venture is viable and to identify those opportunity that can lead to its success.

This activity would take two (2) months to complete.

Securing Business Permits and Licenses. It takes two (2) months

to apply for business permits and licenses, and the owner must do so to ensure that the

proposed business is legally operational in accordance with government

 72

laws. This activity is required to ensure the safety of the building and to allow a business

to legally operate and register.

Building Construction. The proposed business is a building reaction,

and the construction of the business and other facilities will take six (6) months to

complete.

Acquisitions of Equipment and Furniture and Fixtures. The

activity entails purchasing equipment, furniture and fixtures that will be needed and used

in the operation of the proposed venture. It takes three (3) months to purchase all of the

necessary equipment, and furniture and fixtures.

Personnel Hiring and Processes. In this phase, the owner hires a

cashier, room attendant, utility personnel, and life guard to undertake hiring procedures in

order to fill positions needed in the proposed business with the most qualified candidates

available. The hired personnel will be trained and oriented about their job descriptions

and other management policies, which will take four (4) months to complete.

Promotion of the Business. It is the phase in which the business is

introduced to the general public, and it takes two (2) months to make the business known

to the market.

Launching of the Business. This is the start of the operation of the

business and now ready to serve the market, after the promotion one (1) month duration.

Time Table (Gantt Chart)

A Gantt chart, which is widely used in project management, is one

 73

of the most popular and useful methods of displaying activities against time. The chart

has a list of activities on the left and a time scale along the top. Each activity is presented

by a bar, with the position and length of the bar reflecting the activity’s start, duration,

and end dates.

This section presents time schedule in doing all the pre-operating

activities prior to commencement of business operations.

Table 21

Gantt

Chart

Pre-operating Activities Month

1 2 3 4 5 6 7 8 9 10 11
Conducting Feasibility Study
Securing Business Permits and Licenses
Building Construction
Acquisition of equipment and Furniture and
Fixtures
Personnel Hiring and Processes
Promotion of the Business
Launching of the Business
 74

Chapter VI

FINANCIAL ASPECT

This chapter shows and discusses the financial forecast for the proposed business

including the financial assumptions, the investment costs, the financial statements and the

financial analysis. Moreover, this chapter also summarizes the source and uses of funds.

Financial Assumptions

This section states the financial assumptions to be implemented by the proposed

business regarding financial related issues of the entity. These are based on the data

gathered by the researchers from interviews in their competitors in the business industry.

Revenue

This portion of the study states the financial assumption with regards to the computation

of the revenues for the proposed business.

1. Service Revenue will increase by 10% annually starting from its

second operation.

2. 13th month pay will be provided to the employees.

3. Security Services will be consistent for 5 years.

Expenses

This portion of the study states the financial assumption with regards to

the computation of the expenses for the proposed business.

1. Salaries, Wages, and SSS/PHIC/HDMF Contribution, are

considered to be fixed expenses.

 75

2. Supplies Expense will increase 3% annually.

3. Advertising Expense will increase 2% annually.

4. Depreciation is computed using the straight-line method

5. Utilities Expense will increase 3% annually.

6. Repair and maintenance will increase 2% annually.

7. Permits and license annual expenses are constant except

community tax which a tax of Php 1 one for each Php 1000 of the

total revenue.

8. Miscellaneous is 2% of total expenses and will increase by 2%

annually.

9. Income tax Expense is computed based on the Tax Table

10. SSS/PHIC/HDMF Payable are considered to be fixed expenses.

Taxation

This portion of the study states the financial assumptions that may affect the

other sections of the projected financial statements of the proposed business.

Philippine Peso will be used as the currency in preparing the financial statements of

the proposed business.

1. The business is taxable the revenue exceeds php 3,000,000 and is

required to be vat- registered.

2. Withholding tax of 2% is withheld on contractor.

Investment Cost

Initial capital or capital is the money and other assets initially subscribed to
 76

invest into the plan. The total capitalization of the proposed business is P8,095,469.

Table 22

Investment Cost
Particular Amount

Supplies 900,150

Advertising Expense 67,200

Business Permits and Licenses 11,503

Land 500,000

Building 2,418,000

Land Improvement 1,618,000

Equipment 1,645,966

Furniture and Fixture 934,650

TOTAL INVESMENT COST 8,095,469

This investment will be used in the acquisition of equipment, furniture and

fixtures, buildings, land, and supplies. This will also be used to purchase other

expenditures necessary for the establishment of the proposed business, especially during

the pre-operating years. Presented above is the table of investment costs for the proposed

business.

Sources of Financing

Capital Structure

The capital structure of the proposed G Farm Resort would be a sole

 77

proprietorship, which means a single individual owns and operates the proposed venture.

Investments used to finance the operation will come from the owner's assets. Hence, the

business target capital structure percentage (target weight) would be 100% of the owner's

equity or contributions. However, it has been acknowledged that risks could exist, and the

weighted average cost of capital would be higher using this structure.

Projected Financial Statements

This section provides information about the financial statements of the proposed

business. Financial statements provide information that is useful to a wide range of users.

These are the balance sheet, income statement, cash flows, and changes in owner’s

equity. A summary of these statements is presented below and on the following pages,

while detailed information is shown in the exhibit section.

Projected Statement of Financial Performance

This section shows the financial performance of the proposed business.

The Statement of Financial Performance provides information about the

summarized earned revenue and expenses incurred in a particular period of time

to measure the profitability of the business.

The researcher prepares a five (5) year period of financial performance for

the proposed business, showing the comparison and the expenses incurred.
 78

Table 23

Summary of Projected Statement of Financial Performance

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 6,752,500 7,427,750 8,170,525 8,987,578 9,886,335

Less: Operating
Expenses 6,555,015 6,657,573 6,763,199 6,871,990 6,984,045

Net Income Before Tax 197,485 770,177 1,407,326 2,115,587 2,902,290

Less: Income Tax - 96,535 254,331 437,176 673,187

Net Income After Tax 197,485 673,642 1,152,994 1,678,411 2,229,103

Projected Statement of Financial Position

This section shows the financial condition of the firm as a whole. It shows

the controlled asset, owned liability, and owner’s equity of the business on the

given dates. The purpose of the balance sheet is to show the financial pattern of

the business.

The researcher prepared a five-year period of the financial position and

condition of the business, showing assets, liabilities, and owner’s equity at year-

end.

Table 24

Summary of Projected Statement of Financial Position

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Current Asset 2,404,049 3,400,689 4,563,068 5,996,552 7,721,031

Non-Current Assets 5,826,8256 5,299,530 4,772,234 4,244,938 3,717,643

Total Assets 8,230,875 8,700,219 9,335,302 10,241,491 11,438,673
Total Liabilities 36,664 169,187 227,773 294,757 377,388
Total Owner's
Capital 8,194,211 8,531,032 9,107,529 9,946,734 11,061,286
Total Liabilities
8,230,875 8,700,219 9,335,302 10,241,491 11,438,673
and Equity
 79

Projected Statement of Cash Flow

This section outlines the cash flow activities, particularly operating,

investing, and financing. The Statement of Cash Flows shows the inflows and

outflows of cash during the operation. It also shows the liquidity of the firm over

a given period of time. Aside from that, it also assesses the ability of the business

to generate cash in order to pay its obligations.

Presented below is a summary of the 5-year cash flow statement, showing

cash movements in the operating, investing, and financing activities of the

proposed business.

Table 25

Summary of Projected Statement of Cash Flow

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Net income 197,485 673,642 1,152,994 1,678,411 2,229,103
Add: Depreciation
Expense 527,296 527,296 527,296 527,296 527,296
Cash income 724,780 1,200,937 1,680,290 2,205,707 2,756,399
Net cash provided by
711,770 1,383,135 1,738,876 2,272,690 2,839,030
operating activities
Net cash provided by
investing activities 6,354,121 - - - -
Net cash provided by
7,996,726 336,821 576,497 839,205 1,114,552
financing activities
Net increase/decrease in
2,354,375 1,046,314 1,162,379 1,433,485 1,724,478
cash
Add: Cash, Beginning - 2,354,375 3,400,689 4,563,068 5,996,552
Cash, ending 2,354,375 3,400,689 4,563,068 5,996,552 7,721,030

Projected Statement of Changes in Owner’s Equity

This section presents the changes in owner’s capital that result from

earnings and losses. This business’ financial statement reconciles the

 80

opening and closing balances of the equity in a company during a particular

reporting period. It provides information on how the capital or fund has been

used.

The table below shows the summary of the projected statement of owner’s

equity for the span of 5 years. The equity is increasing from year 1 to year 5,

which means that items that increase equity constitute more than items that

decrease equity. The detailed information in this statement regarding the items

that increase or decrease the owner’s equity is presented in the exhibit section of

the paper.

Table 26

Summary of Projected Statement of Changes in Owner’s Equity

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Capital Beginning 8,095,469 8,194,211 8,531,032 9,107,529 9,946,734

Add: Profit 197,485 673,642 1,152,994 1,678,411 2,229,103

Less: Withdrawal 98,742 336,821 576,497 839,205 1,114,552

Capital, End 8,194,211 8,531,032 9,107,529 9,946,734 11,061,286

Financial Ratio Analysis

The researcher used ratio analysis showing the liquidity ratio, the profitability

ratio, the solvency or stability ratio and period, discounted cash flow adequacy, and

investment analysis using the payback period and internal rate of return methods in

analyzing the financial performance, position, and cash flows of the business. This is a

method of financial evaluation whereby the relationship

 81

between the items found in the Statement of Financial Performance Statement of

Financial Position, and Statement of Comprehensive Income, or both, established.

Liquidity Ratios

Liquidity ratios are ratios that show the relationship of a firm's cash and

other current assets to its current liabilities. Liquid assets are assets that can be

converted into cash quickly without having to reduce the asset's price very much.

Thus, ratios in liquidity measure those liquid assets.

Current Ratio

The current ratio indicates the extent to which current liabilities are

covered by the current assets expected to be converted to cash in the near future.

Table below shows the current ratio analysis of the proposed business.

Table 27

Current Ratio

YEAR Current Assets Current Liabilities Current Ratio

Year 1 2,404,049 36,664 65.57%
Year 2 3,400,689 169,187 20.10%
Year 3 4,563,068 227,773 20.03%
Year 4 5,996,552 294,757 20.34%
Year 5 7,721,031 377,388 20.46%

The current ratio is computed by dividing the current assets by the current

liabilities. The table shows that the proposed business has an increasing current ratio,

which indicates that it has enough assets to pay its maturing obligations for five years. It

indicates that the said project business is capable of paying back its
 82

short-term assets.

Profitability Ratios

Profitability ratios reflect the net result of all of the firm's financing policies and

operating decisions. These are the ratios that show the combined effects of liquidity, asset

management, and debt on operating results.

Profit Margin

This ratio provides substantial data on the percentage of the result of the

operations from its revenue and sales. This is often called the net profit margin as

well. The table below shows the profit margin ratio.

Table 28

Return on Sales

YEAR Net Income Total Sales Return on Sales

Year 1 197,485 6,752,500 3%
Year 2 673,642 7,427,750 9%
Year 3 1,152,994 8,170,525 14%
Year 4 1,678,411 8,987,578 19%
Year 5 2,229,103 9,886,335 23%

The return on sales is computed by dividing net income by the total sales of the

business. The ratios each year are increasing as the business incurs lower operating

expenses.

Return on Total Assets

This measure describes the ratio of net income to total assets. This

measures the percentage of the net income or operational results in the

total assets of the business.

 83

Table 29

Return on Total Assets

YEAR Net Income Total Assets Return on Assets
Year 1 197,485 8,230,875 2%
Year 2 673,642 8,700,219 8%
Year 3 1,152,994 9,335,302 12%
Year 4 1,678,411 10,241,491 16%
Year 5 2,229,103 11,438,673 19%

The return on total assets is calculated by dividing net income by total

assets, providing a measure of how effectively the business generates income

relative to its total assets. It is observed that this ratio has been increasing each

year, indicating a rising return on total assets as business operations progress.

This trend suggests that the business is becoming more efficient in generating

income from its assets over time.

Efficiency Ratio

This ratio measures a business ability to use its assets and manage its

liabilities effectively in the current period or in the short-term.

Total Assets Turnover Analysis

This ratio used to assess a company’s efficiency in generating sales

revenue from its assets. It measures how effectively a company utilizes its assets

to generate sales.
 84

Table 30

Total Assets Turnover Analysis

YEAR Total Sales Total Assets Asset Turnover Ratio

Year 1 6,752,500 8,230,875 0.82
Year 2 7,427,750 8,700,219 0.85
Year 3 8,170,525 9,335,302 0.88
Year 4 8,987,578 10,241,491 0.88
Year 5 9,886,335 11,438,673 0.86

The table shows that the G Farm Resort asset turnover ratio changes each year,

demonstrating improved efficiency in generating sales relative to its total assets. This

trend reflects positively on the business's operational performance.

Leverage Ratio

The composition of leverage ratios measures how leverage the business is and

what extent of loads of debts the business holds, and thus measuring the risk of the firm.

Equity to Asset Ratio

This ratio measures the number of resources provided by the owners of the

business.

Table 31

Equity to Asset Ratio

YEAR Total Equity Total Assets Equity Ratio

Year 1 8,194,211 8,230,875 1.00
Year 2 8,531,032 8,700,219 0.98
Year 3 9,107,529 9,335,302 0.98
Year 4 9,946,734 10,241,491 0.97
 85

YEAR Total Equity Total Assets Equity Ratio

Year 5 11,061,286 11,438,673 0.98

The equity-to-asset ratio reveals the extent to which the business relies on

owner's equity rather than external financing, reflecting prudent financial

management and a solid foundation for growth. This ratio is pivotal in assessing

the business's financial health and its ability to withstand economic fluctuations.

Debt to Equity Ratio

This section used to measure a company’s leverage by comparing

its total debt to its total equity. It’s calculated by dividing total debt by

total equity.

Table 32

Debt to Equity Ratio

YEAR Total Liabilities Equity Debt to Equity

Year 1 36,664 8,230,875 0.0044
Year 2 169,187 8,700,219 0.0194
Year 3 227,773 9,335,302 0.0243
Year 4 294,757 10,241,491 0.0288
Year 5 377,388 11,438,673 0.0032

The debt-to-equity ratio shown in the table indicates an increasing trend.

A higher ratio typically suggests higher financial risk for the company. This ratio

is computed by dividing total liabilities by shareholders'

equity and serves as a measure of a company's leverage and financial health.

 86

Capital Investment Analysis

An investment analysis is a look back at previous investment decisions

and the thought process of making the investment decision. This section involves

examining and assessing economic and market trends, earnings prospects,

earnings ratios, and various other indicators and factors to determine suitable

investment strategies.

Return on Investment Analysis

This section is used to evaluate the profitability of an investment

by dividing the net profit by the total investment.

The table below shows the return on investment analysis of the

proposed business.

Table 33

Return on Investment Analysis

YEAR Net Income Total Investment Return on Investment

Year 1 197,485 8,095,469 2%
Year 2 673,642 8,095,469 8%
Year 3 1,152,994 8,095,469 14%
Year 4 1,678,411 8,095,469 21%
Year 5 2,229,103 8,095,469 28%

The table above shows that the return on investment is increasing,

indicating that the profitability of the investment is improving over time. This

trend is positive for the business or investment portfolio.

 87

Payback Period

This is the length of time required to recover the cost of an investment.

Table 34

Payback Period

Net Cash Flows Unrecovered Investment Cost

Year 0 8,095,469
Year 1 711,770 7,383,698
Year 2 949,576 6,434,122
Year 3 1,662,329 4,771,793
Year 4 2,187,601 2,584,193
Year 5 2,744,517

The proposed business generates approximately its investment in four years and

six months of its operation. Hence, the proposed business will be profitable and can

generate cash from its operation equal to the owner’s investment only for a short period

of time.
 88

CHAPTER VII

SOCIO-ECONOMIC ASPECT

This chapter discusses the benefits of the proposed business to the society and to

the economy. It will describe how the said venture affects society and economy.

Benefits to the Economy and Society

In conducting a feasibility study on the establishment of a farm resort, it is

essential to assess the benefits it offers to both the economy and society. By examining

its potential economic contributions and societal impacts, we can gain insight into the

viability and significance of this business.

The following are the benefits of the proposed to the economy and

society:

Community Engagement and Social Interaction. The proposed business

farm resort serves as a community hub, hosting events and workshops. This fosters social

cohesion, strengthens community ties, and promotes a sense of belonging among

residents and visitors. By fostering connections between residents and visitors, a farm

resort creates opportunities for local businesses to thrive. Whether through purchases of

locally sourced products, participation in community events, or patronage of nearby

establishments, increased social interaction contributes to economic growth by

circulating money within the community.

Promoting recreation and Wellness. The proposed business farm resort

provides recreational opportunities for visitors to reconnect with nature, engage in

outdoor activities, and experience tranquility in a rural setting. Access to green

 89

spaces and nature-based activities contributes to physical and mental well-being.

Participating in recreational and wellness activities promotes physical health, mental

well-being, and stress reduction among residents and visitors alike. By offering

opportunities for relaxation and connection with nature, a farm resort supports healthier

lifestyles and reduces healthcare costs associated with sedentary behavior and stress-

related illnesses.

Local Employment Opportunities. The proposed business will provide

employment to those who are currently unemployed. This business will recruit and create

new positions, hiring individuals who are qualified to manage and organize the business.

Local employment opportunities provided by a farm resort are a significant benefit to

both the economy and society, contributing to sustainable development, community well-

being, and economic resilience. By creating jobs within the local community, the farm

resort can stimulate economic growth, reduce unemployment, and foster social cohesion,

ultimately enriching the fabric of the region. One of the primary benefits of local

employment is its contribution to economic growth and prosperity. By hiring locally, the

farm resort circulates money within the community as employees spend their wages on

goods and services provided by other local businesses.

Promotion of Local Culture and Heritage. The proposed business farm

resorts reflect the local culture and traditions of providing guests with an authentic

experience. This business promotes local identity and heritage, contributes to cultural

preservation, and attracts cultural tourists. Promoting local culture and heritage within a

farm resort not only enriches the guest experience but also yields
 90

significant benefits for both the economy and society. One of the primary benefits of

promoting local culture and heritage is its contribution to economic growth and

prosperity. By showcasing the rich tapestry of traditions, customs, and craftsmanship

unique to the region, the farm resort attracts cultural tourists seeking authentic and

captivating experiences.

Improve the Quality of Social and Community. The proposed business

considers any social and community benefits that the farm resort may bring, such as

improved quality of life, increased community engagement, and support for local events

and initiatives. Enhancing social and community life can lead to numerous economic and

societal benefits. Social capital fosters trust, cooperation, and collaboration, encouraging

entrepreneurship, innovation, and investment. Health and well-being are improved

through better physical and mental health outcomes. Social cohesion and resilience are

essential for withstanding challenges and attracting investment and skilled workers.

Culturally vibrant communities attract visitors and tourists, stimulating economic growth

through tourism revenue and cultural exchange. Sustainable communities prioritize

environmental conservation, renewable energy adoption, and eco-friendly practices,

reducing their ecological footprint and mitigating climate change impacts. Enhancing

social and community life can create inclusive, resilient, and prosperous environments for

all.

Taxes and Revenue to the Local Government. The proposed business

generates its funds by contributing taxes. By paying the permits and licenses for the

proposed venture, the local government will also have additional income. Taxation on

farm resorts can generate revenue for local governments, promoting

 91

sustainable growth. It includes property, tourism, sales, business, environmental, and

special assessments, ensuring fair and transparent tax policies. One of the primary

benefits of generating taxes and revenue for the local government is its contribution to

economic growth and prosperity. It enables the local government to invest in

infrastructure projects and community development initiatives that benefit residents and

visitors alike. Whether through the construction of new roads, parks, or public facilities

or the implementation of programs to enhance cultural, recreational, and tax revenue, it

plays a crucial role in shaping the physical and social landscape of the community
EXHIBIT
xx
EXHIBIT 1
G FARM RESORT
PROJECTED STATEMENT OF FINANCIAL PERFORMANCE

Particulars Schedule No. Year 1 Year 2 Year 3 Year 4 Year 5

Service Revenue 1 6,752,500 7,427,750 8,170,525 8,987,578 9,886,335
Less: Operating Expenses
Salaries Expense 2 2,045,343 2,045,343 2,045,343 2,045,343 2,045,343
Security Services 3 225,000 225,000 225,000 225,000 225,000
SSS Contribution Expense 4 151,800 151,800 151,800 151,800 151,800
Phil health Contribution Expense 4 79,794 79,794 79,794 79,794 79,794
Pag-ibig Contribution Expense 4 26,400 26,400 26,400 26,400 26,400
Supplies Expense 5 803,705 827,817 852,651 878,231 904,577
Advertising Expense 6 60,000 61,200 62,424 63,672 64,946
Depreciation Expense 7 527,296 527,296 527,296 527,296 527,296
Utilities Expense 8 2,408,761 2,481,024 2,555,455 2,632,119 2,711,082
Repairs and Maintenance 9 100,413 102,422 104,470 106,559 108,691
Business Permits and Licenses 10 11,503 12,178 12,921 13,738 14,636
Miscellaneous Expense 11 115,000 117,300 119,646 122,039 124,480
Total Operating Expense 6,555,015 6,657,573 6,763,199 6,871,990 6,984,045
Income Before Tax 197,485 770,177 1,407,326 2,115,587 2,902,290
Less: Income Tax 12 - 96,535 254,331 437,176 673,187
Net Income After Tax 197,485 673,642 1,152,994 1,678,411 2,229,103

xxi
EXHIBIT 2
G FARM RESORT
PROJECTED STATEMENT OF FINANCIAL POSITION

Schedule No. Year 1 Year 2 Year 3 Year 4 Year 5

Assets
Current Assets
Cash and Cash Equivalents Exh. 3 2,354,375 2,967,131 4,052,962 5,401,358 7,031,323
Creditable Input Vat 49,674 433,559 510,105 595,195 689,707
Total Current Assets 2,404,049 3,400,689 4,563,068 5,996,552 7,721,031
Non-Current Assets
Property, Plant and Equipment 13 6,354,121 6,354,121 6,354,121 6,354,121 6,354,121
Accumulated Depreciation 14 527,296 1,054,591 1,581,887 2,109,183 2,636,479
Total Non-current Assets 5,826,826 5,299,530 4,772,234 4,244,938 3,717,643
Total Assets 8,230,875 8,700,219 9,335,302 10,241,491 11,438,673
Liabilities and Owner's Equity
Liabilities
SSS Premium Payable 15 18,590 18,590 18,590 18,590 18,590
PHIC Premium Payable 15 13,299 13,299 13,299 13,299 13,299
Pag-ibig Premium Payable 15 4,400 4,400 4,400 4,400 4,400
Income Tax Payable 16 24,134 63,583 109,294 168,297
Vat Payable 17 108,390 127,526 148,799 172,427
Expanded Withholding tax payable 18 375 375 375 375 375
Total liabilities 36,664 169,187 227,773 294,757 377,388
Owner's Equity
Capital 8,194,211 8,531,032 9,107,529 9,946,734 11,061,286
Total Liabilities and Capital 8,230,875 8,700,219 9,335,302 10,241,491 11,438,673

i
xxi
EXHIBIT 3
G FARM RESORT
PROJECTED STATEMENT OF CASH FLOWS

Year 1 Year 2 Year 3 Year 4 Year 5

Net income 197,485 673,642 1,152,994 1,678,411 2,229,103
Add: Depreciation Expense 527,296 527,296 527,296 527,296 527,296
Cash income 724,780 1,200,937 1,680,290 2,205,707 2,756,399
Operating Activities
Increase / (Decrease) in Creditable Input Tax 49,674 383,884 76,547 85,089 94,512
Increase / (Decrease) in Income Tax Payable - 24,134 39,449 45,711 59,003
Increase / (Decrease) in Vat Payable - 108,390 19,137 21,272 23,628
Increase / (Decrease) in SSS Premium Payable 18,590 - - - -
Increase / (Decrease) in Philhealth Premium
Payable 13,299 - - - -
Increase / (Decrease) in Pag-ibig Premium
Payable 4,400 - - - -
Increase / (Decrease) in Expanded Withholding
Tax Payable 375
Net cash provided by operating activities 711,770 949,576 1,662,329 2,187,601 2,744,517
Investing Activities:
(Increase) / Decrease in PPE 6,354,121 - - - -
Net cash provided by investing activities 6,354,121 - - - -
Financing Activities:
Investment 8,095,469
Withdrawal 98,742 336,821 576,497 839,205 1,114,552
Net cash provided by financing activities 7,996,726 336,821 576,497 839,205 1,114,552
Net increase/(decrease) in cash 2,354,375 612,756 1,085,832 1,348,395 1,629,966
Add: Cash, beginning 2,354,375 2,967,131 4,052,962 5,401,358
Cash, ending 2,354,375 2,967,131 4,052,962 5,401,358 7,031,323

i
xxii
EXHIBIT 4
G FARM RESORT
PROJECTED STATEMENT OF CHANGES IN OWNER’S EQUITY

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Capital Beginning 8,095,469 8,194,211 8,531,032 9,107,529 9,946,734
Add: Profit 197,485 673,642 1,152,994 1,678,411 2,229,103
Less: Withdrawal 98,742 336,821 576,497 839,205 1,114,552
Capital, End 8,194,211 8,531,032 9,107,529 9,946,734 11,061,286

xxiv
SCHEDULES
xx
v
SCHEDULE 1
G FARM RESORT
PROJECTED SERVICE REVENUE

Rooms Annual Capacity Price Annual Sales Output Tax Sales Net of Vat
Single Room 584 950 554,800 59,443 495,357
Twin Room 1,168 1,200 1,401,600 150,171 1,251,429
King Room 292 2,400 700,800 75,086 625,714
Queen Room 292 2,400 700,800 75,086 625,714
Family Room 1,168 3,600 4,204,800 450,514 3,754,286
Total 3,504 7,562,800 810,300 6,752,500

Assumption: Service Revenue will increase by 10% annually starting from its second year of operation.

xxvi
SCHEDULE 2
G FARM RESORT
PROJECTED SALARIES EXPENSE

Special Annual
Regular Regular Annual
Non- Night Annual 13th Month Salaries
Position No. Of Ee Holiday Annual Salary Overtime
Working Differential Salary Pay Expense
Pay (W/O Holiday) Pay
Holiday Pay Pay
Room
Attendant 3 13,117 411,391 13,952 90,675 10,881 540,016 36,270 576,286
Cashier 3 13,117 411,391 13,952 90,675 10,881 540,016 36,270 576,286
Life Guard 2 8,745 274,261 9,301 292,306 24,180 316,486
Utility
Personnel 3 13,117 411,391 13,952 90,675 10,881 540,016 36,270 576,286
Total 1,912,353 132,990 2,045,343

Assumption: 13th month pay will be provided to the employees.

i
xxvi
SCHEDULE 3
G FARM RESORT
PROJECTED SECURITY SERVICES

Monthly Security Annual Security Annual Security

Position No. of EE Vat
Services Services Services, Net of Vat

Security Guard 2 10,500 252,000 225,000 27,000

Assumption: Security Services will be consistent for 5 years.

i
xxvii
SCHEDULE 4
G FARM RESORT
PROJECTED SSS, PHILHEALTH, AND PAG-IBIG EXPENSE

Position No. Of Employees Monthly Salary SSS - Er Phic - Er Pag-Ibig - Er

Room Attendant 3 12,090 41,400 21,762 7,200
Cashier 3 12,090 41,400 21,762 7,200
Life Guard 2 12,090 27,600 14,508 4,800
Utility Personnel 3 12,090 41,400 21,762 7,200
Total 48,360 151,800 79,794 26,400

Assumption: Salaries, Wages, and SSS/PHIC/HDMF Contribution, are considered to be fixed expenses.

xxix
SCHEDULE 5
G FARM RESORT
PROJECTED SUPPLIES EXPENSE

SUPPLIES
Annual Cost Supplies
Description Quantity Unit Cost Input Tax
Vat Inclusive Expense
Bond Paper 20 200 4,000 3,571 429
Paper Bag 1000 45 45,000 40,179 4,821
Pencil 20 8 160 143 17
Ink 30 250 7,500 6,696 804
Envelope 1000 20 20,000 17,857 2,143
Stapler Set 7 40 280 250 30
Pen 50 10 500 446 54
Folder 100 20 2,000 1,786 214
Marker 5 30 150 134 16
First Aid and Medicine Kit 10 1,360 13,600 12,143 1,457
Broom Stick 20 15 300 268 32
Dust Pan 10 120 1,200 1,071 129
Gloves 20 110 2,200 1,964 236
Hand Sanitizer 20 100 2,000 1,786 214
Flower Basket 1000 50 50,000 44,643 5,357
Boots 20 400 8,000 7,143 857
Trash Bag 1000 20 20,000 17,857 2,143
Bed and Pillow Sheet 500 1,000 500,000 446,429 53,571
Towel 50 380 19,000 16,964 2,036
Lights 50 3,200 160,000 142,857 17,143
Trash Bin 30 150 4,500 4,018 482
Emergency Light 9 540 4,860 4,339 521
Infrared Lights 5 1,580 7,900 7,054 846
Pool Chlorine 5 5,000 25,000 22,321 2,679
Laundry Soap 10 200 2,000 1,786 214
Total 900,150 803,705 96,445
Assumption: Supplies Expense will increase 3% annually.

xxx
SCHEDULE 6
G FARM RESORT
PROJECTED ADVERTISING EXPENSE

Particulars Quantity Price Total Cost Vat Inclusive Advertising Expense Input Tax
Social Media 12 600 7,200 6,429 771
Flyers 50 500 25,000 22,321 2,679
Tarpaulins 50 700 35,000 31,250 3,750
Total 67,200 60,000 7,200

Assumption: Advertising Expense will increase 2% annually.

xxxi
SCHEDULE 7
G FARM RESORT
PROJECTED DEPRECIATION EXPENSE

EQUIPMENT
Total Cost Vat
Description Quantity Cost Total Cost Useful Life Depreciation Expense
Exclusive
Computer Set 3 38,049 114,147 101,917 10 10,192
Printer 2 9,791 19,582 17,484 5 3,497
Air conditioner 4 37,500 150,000 133,929 5 26,786
Television 10 50,000 500,000 446,429 6 74,405
Ventilator Fan 5 1,530 7,650 6,830 8 854
Wifi 5 2,999 14,995 13,388 6 2,231
Telephone 10 5,000 50,000 44,643 5 8,929
CCTV 10 1,200 12,000 10,714 5 2,143
Pool Cleaning Equipment 1 30,000 30,000 26,786 10 2,679
Trampoline 1 30,000 30,000 26,786 3 8,929
Fog Disinfectant 1 10,000 10,000 8,929 7 1,276
Refrigerator 2 60,000 120,000 107,143 10 10,714
Freezer 2 17,000 34,000 30,357 5 6,071
Pool Vacuum 2 5,000 10,000 8,929 7 1,276
Emergency Tool 1 50,000 50,000 44,643 3 14,881
Laundry Machine 2 35,200 70,400 62,857 6 10,476
Solar Panel 2 60,000 120,000 107,143 5 21,429
Water Tank 2 150,000 300,000 267,857 10 26,786
Fire Extinguisher 8 399 3,192 2,850 5 570
Total 1,645,966 1,469,613 234,121

i
xxxi
SCHEDULE 7.2
G FARM RESORT
PROJECTED DEPRECIATION EXPENSE

FURNITURES & FIXTURES

Total Cost Vat Depreciation
Description Quantity Cost Total Cost Useful Life
Exclusive Expense
Office Table 3 20,000 60,000 53,571 10 5,357
Office chair 5 5,000 25,000 22,321 6 3,720
Office Cabinet 3 15,000 45,000 40,179 5 8,036
Office Couch 1 20,000 20,000 17,857 8 2,232
Plastic Table 10 430 4,300 3,839 10 384
Plastic Chair 100 300 30,000 26,786 10 2,679
Wooden Ceiling Fan 18 3,000 54,000 48,214 6 8,036
Room Cabinet 25 10,000 250,000 223,214 10 22,321
Queen Size Bed 5 14,980 74,900 66,875 10 6,688
King Size Bed 5 14,950 74,750 66,741 10 6,674
Double Deck Bed 10 21,870 218,700 195,268 10 19,527
Folding Bed 5 3,500 17,500 15,625 8 1,953
Single Bed 5 10,100 50,500 45,089 10 4,509
File Cabinet 2 5,000 10,000 8,929 10 893
TOTAL 144,130 934,650 834,509 93,008

i
xxxii
SCHEDULE 7.3
G FARM RESORT
PROJECTED DEPRECIATION EXPENSE

LAND IMPROVEMENT

Total Cost Vat Depreciation

Description Quantity Cost Total Cost Useful Life
Exclusive Expense

Pool Area 750,000 669,643 15 44,643

Parking Area 280,000 250,000 15 16,667
Camping Area 588,000 525,000 10 52,500
Total 1,618,000 1,444,643 113,810

BUILDING
Description Total Cost Total Cost Vat Exclusive Useful Life Depreciation Expense
Earth Work 200,000 178,571
Labor work 100,000 89,286
Steel Work 170,000 151,786
Form and Scaffolding 100,000 89,286
Masonry 130,000 116,071
Carpentry Work 180,000 160,714
Roofing Work 150,000 133,929
Door and Window 140,000 125,000
Plumbing Work 160,000 142,857
Electrical Work 120,000 107,143
Total Material Cost 1,450,000 1,294,643
Labor work 968,000 864,286
Total Project Cost 2,418,000 2,158,929 25 86,357
Grand Total 6,616,616 5,907,693 527,296
Assumption: Depreciation is computed using the straight-line method.

xxxiv
SCHEDULE 8
G FARM RESORT
PROJECTED UTILITIES EXPENSE

ELECTRICITY
Annual
No. Of
Divide Rate Utilities Annual
Hours
Particulars Quantity Wattage Total 1,000 Kwh Per Monthly Expense Utilities Input Tax
in a
Kilowatts Kw (Inclusive of Expense
Day
Vat)
Computer Set 3 183 8 4,392 1,000 4.39 10 1,336 16,031 14,313 1,718
Printer 2 100 6 1,200 1,000 1.20 10 365 4,380 3,911 469
Air- Conditioner 4 3,500 15 210,000 1,000 210.00 10 63,875 766,500 684,375 82,125
Television 10 75 8 6,000 1,000 6.00 10 1,825 21,900 19,554 2,346
Ventilator Fan 5 35 24 4,200 1,000 4.20 10 1,278 15,330 13,688 1,643
Wi-Fi 5 88 24 10,560 1,000 10.56 10 3,212 38,544 34,414 4,130
Telephone 10 2 24 480 1,000 0.48 10 146 1,752 1,564 188
Lights 50 22 12 13,200 1,000 13.20 10 4,015 48,180 43,018 5,162
CCTV 10 15 24 3,600 1,000 3.60 10 1,095 13,140 11,732 1,408
Refrigerator 2 400 24 19,200 1,000 19.20 10 5,840 70,080 62,571 7,509
Freezer 2 180 24 8,640 1,000 8.64 10 2,628 31,536 28,157 3,379
Laundry Machine 2 1,400 5 14,000 1,000 14.00 10 4,258 51,100 45,625 5,475
Pool Vacuum 2 1,110 4 8,880 1,000 8.88 10 2,701 32,412 28,939 3,473
Water Tank 2 4,500 24 216,000 1,000 216.00 10 65,700 788,400 703,929 84,471
Total 1,899,285 1,695,790 203,495

INTERNET

Particulars Monthly Annual Utilities Expense (Inclusive of Vat) Annual Utilities Expense Input Tax

Internet 38,544 462,528 412,971 49,557

Assumption: Utilities Expense will increase 3% annually.

xxxv
SCHEDULE 8.2
G FARM RESORT
PROJECTED UTILITIES EXPENSE

WATER CONSUMPTION
Monthly
No. of Annual
WATER Water Price per cubic Monthly Annual
months Utilities Input Vat
CONSUMPTION Consumption meter Consumption Consumption
in a year Expense
in cubic meter
Water Fuse 40 700 28,000 12 336,000 300,000 36,000
Grand Total 2,697,813 2,408,761 289,051

Assumption: Utilities Expense will increase 3% annually

xxxvi
SCHEDULE 9
G FARM RESORT
PROJECTED REPAIR AND MAINTENANCE EXPENSE

EQUIPMENT
Description Quantity Sales Price Total Cost Vat Inclusive Total Cost
Computer Set 3 38,049 114,147 101,917
Printer 2 9,791 19,582 17,484
Air conditioner 4 37,500 150,000 133,929
Television 10 50,000 500,000 446,429
Ventilator Fan 5 1,530 7,650 6,830
Wifi 5 2,999 14,995 13,388
Telephone 10 5,000 50,000 44,643
CCTV 10 1,200 12,000 10,714
Pool Cleaning Equipment 1 30,000 30,000 26,786
Trampoline 1 30,000 30,000 26,786
Fog Disinfectant 1 10,000 10,000 8,929
Refrigerator 2 60,000 120,000 107,143
Freezer 2 17,000 34,000 30,357
Pool Vacuum 2 5,000 10,000 8,929
Emergency Tool 1 50,000 50,000 44,643
Laundry Machine 2 35,200 70,400 62,857
Solar Panel 2 60,000 120,000 107,143
Water Tank 2 150,000 300,000 267,857
Fire Extinguisher 8 399 3,192 2,850
TOTAL 1,645,966 1,469,613

Assumption: Repair and maintenance will increase 2% annually.

i
xxxvi
SCHEDULE 9.2
G FARM RESORT
PROJECTED REPAIR AND MAINTENANCE EXPENSE

FURNITURE & FIXTURES

Description Quantity Sales Price Total Cost Vat Inclusive Total Cost

Office Table 3 20,000 60,000 53,571

Office Chair 5 5,000 25,000 22,321
Office Cabinet 3 15,000 45,000 40,179
Office Couch 1 20,000 20,000 17,857
Plastic Table 10 430 4,300 3,839
Plastic Chair 100 300 30,000 26,786
Wooden Ceiling Fan 18 3,000 54,000 48,214
Room Cabinet 25 10,000 250,000 223,214
Queen Size Bed 5 14,980 74,900 66,875
King Size Bed 5 14,950 74,750 66,741
Double Deck Bed 10 21,870 218,700 195,268
Folding Bed 5 3,500 17,500 15,625
Single Bed 5 10,100 50,500 45,089
File Cabinet 2 5,000 10,000 8,929
Total 934,650 834,509

Assumption: Repair and maintenance will increase 2% annually.

i
xxxvii
SCHEDULE 9.3
G FARM RESORT
PROJECTED REPAIR AND MAINTENANCE EXPENSE

LAND IMPROVEMENT
Description Quantity Sales Price Total Cost Vat Inclusive Total Cost

Pool Area 750,000 669,643

Parking Area 280,000 250,000
Camping Area 588,000 525,000
Total Project Cost - 1,444,643
Grand Total 3,748,764
Multiply By: 3%
Total Cost Inclusive of Vat 112,463
Vat Output 12,050
Total Cost Exclusive of Vat 100,413

Assumption: Repair and maintenance will increase 2% annually.

xxxix
SCHEDULE 10
G FARM RESORT
PROJECTED BUSINESS PERMITS AND LICENSES

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Bir 900 900 900 900 900
Business Location Clearance 900 900 900 900 900
Business Tax 2,000 2,000 2,000 2,000 2,000
Permit Tax 500 500 500 500 500
Fire Safety Clearance 450 450 450 450 450
Community Tax 6,753 7,428 8,171 8,988 9,886
Total 11,503 12,178 12,921 13,738 14,636

Assumption: Permits and licenses annual expense are constant except community tax which a tax of Php 1 for each Php

1000 of the total revenue.

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SCHEDULE 11
G FARM RESORT
PROJECTED MISCELLANEOUS EXPENSE

Particulars Cost
Salaries Expense 2,045,343
Security Services 225,000
Sss Contribution Expense 151,800
Philhealth Contribution Expense 79,794
Pag-Ibig Contribution Expense 26,400
Supplies Expense 803,705
Advertising Expense 60,000
Utilities Expense 2,408,761
Business Permits and Licenses 11,503
Depreciation Expense 527,296
Repairs And Maintenance 100,413
Total 6,440,015
Multiply By 2%
Total 128,800
Vat 13,800
Total Miscellaneous Expense 115,000

Assumption: Miscellaneous is 2% of total expenses and will increase by 2% annually.

i
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SCHEDULE 12
G FARM RESORT
PROJECTED INCOME TAX EXPENSE

Year 1 Year 2 Year 3 Year 4 Year 5

Net Income Before Tax 197,485 770,177 1,407,326 2,115,587 2,902,290
Tax 22,500 102,500 402,500 402,500
Tax Excess 74,035 151,831 34,676 270,687
Total Income Tax Expense - 96,535 254,331 437,176 673,187

Assumption: Income tax Expense is computed based on the Tax Table.

i
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SCHEDULE 13
G FARM RESORT
PROJECTED PROPERTY, PLANT AND EQUIPMENT

EQUIPMENT
Description Quantity Cost Total Cost Total Cost Net of Vat Input Vat
Computer Set 3 38,049 114,147 101,917 12,230
Printer 2 9,791 19,582 17,484 2,098
Air conditioner 4 37,500 150,000 133,929 16,071
Television 10 50,000 500,000 446,429 53,571
Ventilator Fan 5 1,530 7,650 6,830 820
Wifi 5 2,999 14,995 13,388 1,607
Telephone 10 5,000 50,000 44,643 5,357
CCTV 10 1,200 12,000 10,714 1,286
Pool Cleaning Equipment 1 30,000 30,000 26,786 3,214
Trampoline 1 30,000 30,000 26,786 3,214
Fog Disinfectant 1 10,000 10,000 8,929 1,071
Refrigerator 2 60,000 120,000 107,143 12,857
Freezer 2 17,000 34,000 30,357 3,643
Pool Vacuum 2 5,000 10,000 8,929 1,071
Emergency Tool 1 50,000 50,000 44,643 5,357
Laundry Machine 2 35,200 70,400 62,857 7,543
Solar Panel 2 60,000 120,000 107,143 12,857
Water Tank 2 150,000 300,000 267,857 32,143
Fire Extinguisher 8 399 3,192 2,850 342
Total 1,645,966 1,469,613 176,354

i
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SCHEDULE 13.2
G FARM RESORT
PROJECTED PROPERTY, PLANT AND EQUIPMENT

FURNITURE & FIXTURES

Description Quantity Cost Total Cost Total Cost Net of Vat Input Vat

Office Table 3 20,000 60,000 53,571 6,429

Office Chair 5 5,000 25,000 22,321 2,679
Office Cabinet 3 15,000 45,000 40,179 4,821
Office Couch 1 20,000 20,000 17,857 2,143
Plastic Table 10 430 4,300 3,839 461
Plastic Chair 100 300 30,000 26,786 3,214
Wooden Ceiling Fan 18 3,000 54,000 48,214 5,786
Room Cabinet 25 10,000 250,000 223,214 26,786
Queen Size Bed 5 14,980 74,900 66,875 8,025
King Size Bed 5 14,950 74,750 66,741 8,009
Double Deck Bed 10 21,870 218,700 195,268 23,432
Folding Bed 5 3,500 17,500 15,625 1,875
Single Bed 5 10,100 50,500 45,089 5,411
File Cabinet 2 5,000 10,000 8,929 1,071
Total 934,650 834,509 100,141

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SCHEDULE 13.3
G FARM
RESORT
PROJECTED PROPERTY, PLANT AND EQUIPMENT

LAND IMPROVEMENT
Description Quantity Cost Total Cost Total Cost Net of Vat Input Vat
Pool Area 750,000 669,643 80,357
Parking Area 280,000 250,000 30,000
Camping Area 588,000 525,000 63,000
Total 1,618,000 1,444,643 173,357

BUILDING
Description Total Cost Total Cost Net of Vat Input Vat
Earth Work 200,000 178,571 21,429
Concreate Work 100,000 89,286 10,714
Steel Work 170,000 151,786 18,214
Form And Scaffolding 100,000 89,286 10,714
Masonry 130,000 116,071 13,929
Carpentry Work 180,000 160,714 19,286
Roofing Work 150,000 133,929 16,071
Door And Window 140,000 125,000 15,000
Plumbing Work 160,000 142,857 17,143
Electrical Work 120,000 107,143 12,857
Total Material Cost 1,450,000 1,294,643 155,357
Labor Work 968,000 864,286 103,714
Total Project Cost 2,418,000 2,158,929 414,429

LAND
Description Total Cost Inclusive Vat Total Cost Input Vat
LAND 500,000 446,429 53,571
Grand Total 7,116,616 6,354,121 917,852

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SCHEDULE 14
G FARM RESORT
PROJECTED ACCUMULATED DEPRECIATION

EQUIPMENT
Total Cost Vat
Description Quantity Cost Total Cost Useful Life Total
Exclusive
Computer Set 3 38,049 114,147 101,917 10 10,192
Printer 2 9,791 19,582 17,484 5 3,497
Air conditioner 4 37,500 150,000 133,929 5 26,786
Television 10 50,000 500,000 446,429 6 74,405
Ventilator Fan 5 1,530 7,650 6,830 8 854
Wifi 5 2,999 14,995 13,388 6 2,231
Telephone 10 5,000 50,000 44,643 5 8,929
CCTV 10 1,200 12,000 10,714 5 2,143
Pool Cleaning Equipment 1 30,000 30,000 26,786 10 2,679
Trampoline 1 30,000 30,000 26,786 3 8,929
Fog Disinfectant 1 10,000 10,000 8,929 7 1,276
Refrigerator 2 60,000 120,000 107,143 10 10,714
Freezer 2 17,000 34,000 30,357 5 6,071
Pool Vacuum 2 5,000 10,000 8,929 7 1,276
Emergency Tool 1 50,000 50,000 44,643 3 14,881
Laundry Machine 2 35,200 70,400 62,857 6 10,476
Solar Panel 2 60,000 120,000 107,143 5 21,429
Water Tank 2 150,000 300,000 267,857 10 26,786
Fire Extinguisher 8 399 3,192 2,850 5 570
Total 1,645,966 1,469,613 234,121

i
xlv
SCHEDULE 14.2
G FARM
RESORT
PROJECTED ACCUMULATED DEPRECIATION

FURNITURES & FIXTURES

Total Cost Vat
Description Quantity Cost Total Cost Useful Life Total
Exclusive
Office Table 3 20,000 60,000 53,571 10 5,357
Office chair 5 5,000 25,000 22,321 6 3,720
Office Cabinet 3 15,000 45,000 40,179 5 8,036
Office Couch 1 20,000 20,000 17,857 8 2,232
Plastic Table 10 430 4,300 3,839 10 384
Plastic Chair 100 300 30,000 26,786 10 2,679
Wooden Ceiling Fan 18 3,000 54,000 48,214 6 8,036
Room Cabinet 25 10,000 250,000 223,214 10 22,321
Queen Size Bed 5 14,980 74,900 66,875 10 6,688
King Size Bed 5 14,950 74,750 66,741 10 6,674
Double Deck Bed 10 21,870 218,700 195,268 10 19,527
Folding Bed 5 3,500 17,500 15,625 8 1,953
Single Bed 5 10,100 50,500 45,089 10 4,509
File Cabinet 2 5,000 10,000 8,929 10 893
Total 934,650 834,509 93,008

i
xlvi
SCHEDULE 14.3
G FARM RESORT
PROJECTED ACCUMULATED DEPRECIATION

LAND IMPROVEMENT
Description Quantity Cost Total Cost Total Cost Vat Exclusive Useful Life Total
Pool Area 750,000 669,643 15 44,643
Parking Area 280,000 250,000 15 16,667
Camping Area 588,000 525,000 10 52,500
Total 1,618,000 1,444,643 113,810

BUILDING
Total Cost Year 1 Year 2 Year 3 Year 4 Year 5
Useful
Description Total Cost Vat
Life
Exclusive
Depreciation
Earth Work 200,000 178,571 Expenses
Labor Work 100,000 89,286
Steel Work 170,000 151,786
Form And Scaffolding 100,000 89,286
Masonry 130,000 116,071
Carpentry Work 180,000 160,714
Roofing Work 150,000 133,929
Door And Window 140,000 125,000
Plumbing Work 160,000 142,857
Electrical Work 120,000 107,143
Total Material Cost 1,450,000 1,294,643
Labor Work 968,000 864,286
86,357 172,714 259,071 345,429 431,786
Total Project Cost 2,418,000 2,158,929 25
6,616,616 5,907,693 527,296 1,054,591 1,581,887 2,109,183 2,636,479
Grand Total

i
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SCHEDULE 16
G FARM RESORT
PROJECTED INCOME TAX PAYABLE

Monthly Phic – Phic – Pag-Ibig- Pag-Ibig

Position No. Of Ee Salary Sss - Er Sss - Ee Er Ee Er Ee
Room Attendant 3 12,090 41,400 19,440 21,762 21,762 7,200 7,200
Cashier 3 12,090 41,400 19,440 21,762 21,762 7,200 7,200
Life Guard 2 12,090 27,600 12,960 14,508 14,508 4,800 4,800
Utility Personnel 3 12,090 41,400 19,440 21,762 21,762 7,200 7,200
Total 151,800 71,280 79,794 79,794 26,400 26,400
Remittance 139,150 65,340 73,145 73,145 24,200 24,200
Total Payable 12,650 5,940 6,649 6,649 2,200 2,200
Grand Total 18,590 13,299 4,400

Assumption: SSS/PHIC/HDMF Payable are considered to be fixed expenses.

x
xli
SCHEDULE 15
G FARM RESORT
PROJECTED SSS, PHIC AND PAG-
IBIG PAYABLE
Year 1 Year 2 Year 3 Year 4 Year 5
Net Income Before Tax 197,485 770,177 1,407,326 2,115,587 2,902,290
Tax - 22,500 102,500 402,500 402,500
Tax Excess - 74,035 151,831 34,676 270,687
Total Income Tax Expense - 96,535 254,331 437,176 673,187
Income Tax Payable - 24,134 63,583 109,294 168,297

Assumption: Income tax Expense is computed based on the Tax Table.

l
SCHEDULE 18
G FARM RESORT
PROJECTED EXPANDED
WITHHOLDING TAX
Particular Year 1 Year 2 Year 3 Year 4 Year 5
Total Output Tax
Revenues 810,300 891,330 980,463 1,078,509 1,186,360
Less: Input Tax
Property Plant and Equipment 414,429
Security Services 27,000 27,000 27,000 27,000 27,000
Supplies Expense 96,445 99,338 102,318 105,388 108,549
Advertising Expense 7,200 7,344 7,491 7,641 7,794
Utilities Expense 289,051 297,723 306,655 315,854 325,330
Repairs And Maintenance 12,050 12,291 12,536 12,787 13,043
Miscellaneous Expense 13,800 14,076 14,358 14,645 14,938
Total Input Tax 859,974 457,771 470,358 483,314 496,653
Vat Payable (Creditable Input Vat) 49,674 433,559 510,105 595,195 689,707
Less: Remittance - 9 Months 325,169 382,579 446,396 517,280
Vat Payable End of The Year 49,674 108,390 127,526 148,799 172,427

Assumption: The business is taxable; the revenue exceeds php 3,000,000 and is required to be vat- registere

i
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SCHEDULE 17
G FARM RESORT PROJECTED VAT
PAYABLE

Year 1 Year 2 Year 3 Year 4 Year 5

Security Services 225,000 225,000 225,000 225,000 225,000
Expanded Withholding Tax on Contractors (2%) 2% 2% 2% 2% 2%
Expanded Withholding Tax on Contractor 4,500 4,500 4,500 4,500 4,500
Expanded Withholding Tax Payable on Contractor 375 375 375 375 375

Assumption: Withholding tax of 2% is withheld on contractor.

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APPENDICES
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APPENDIX A
LETTER OF REQUEST
Ramon Magsaysay Memorial College
Colleges Pioneer Avenue, General Santos
City
College of Business Education

MICHELLE F. JAYME, RN
Tourism Operations Officer
Polomolok Tourism Office
LGU Polomolok, South Cotabato

24 February 2024

Dear Madam,

Mabuhay!

The undersigned is a student of the Ramon Magsaysay Memorial Colleges- General

Santos currently enrolled in the subject Feasibility Study. I am currently conducting
research about my proposed business which is a Farm Resort in Polomolok.

In connection with this, I am respectfully asking permission from your good office to
allow me acquire the following data:
1. List of Existing Registered Farm Resorts in Polomolok
2. Tourist Arrival Statistics in Polomolok for the year 2023
These data will be useful for the completion of my study. Rest assured that all the data
will solely be used for the purpose of this research.
I look forward to your affirmative response to this request. Thank

you!

Sincerely yours,

Mc Joshua L. Sentillanosa
Researcher

Noted by:

Ranice Glaiza A. Mejares

Adviser
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APPENDIX B
INTERVIEW LETTER
Ramon Magsaysay Memorial College
Colleges Pioneer Avenue, General Santos
City
College of Business Education

MELVEE V. LUMAWAG
Manager
Durian Garden Resort
National Highway, Polomolok, South Cotabato 25

October 2023

Sir/Ma’am,

Mabuhay!

I am a 2nd year BS Tourism Management student of the Ramon Magsaysay College

General Santos who is currently conducting a Feasibility Study of Establishing a
Farm Resort in Polomolok, South Cotabato. This is part of our requirement in the
course Feasibility Study (FS 101).
Your business has been known to be one of the reputable and established Farm Resort in
terms of the length of your business’ operation, your quality of service, and the value you
provide to your customers. Given this, I have chosen your establishment to be one my
respondents.
In this connection, the undersigned would like to humbly ask permission to conduct an
interview with your reputable establishment to gather information for the study. Rest
assured that your responses will be used solely for academic purposes only and treated
with utmost care and confidentiality.
I am hoping for your positive response regarding this request.
Should you have any concerns, feel free to contact me through the mobile number
09976284469 or via e-mail at [email protected].

Sincerely yours,

Mc Joshua L. Sentillanosa
Researcher

Noted by:

Ranice Glaiza A. Mejares

Adviser

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APPENDIX C
SURVEY QUESTIONNAIRE
Ramon Magsaysay Memorial College
Colleges Pioneer Avenue, General Santos
City
College of Business Education

“A FEASIBILITY STUDY ESTABLISHING A FARM RESORT

IN POLOMOLOK, SOUTH COTABATO’’

Farm Resort is the proposed business of the researcher. This farm resort offers

lodging and dining options so that visitors can partake in or enjoy interactive farm

activities experience of farm life.

The data gathered in this survey will be used in a feasibility study that I

conducting to determine the preference of consumer of the market in the field of farm

resort specifically in the area of my proposed business.

This study is conducted so as to make sound decision in the allotment of

investment. I assure that the personal information shared in this survey will be treated

with utmost confidentially. Thank you for your participation.

Instruction: Kindly check () the blanks provided that corresponded to

your answer.

PART I. Demographic Profile of the Respondents

Name: Age:

Gender: Female Male Prefer not to say

Adress:

Civil Status:

Single Married
Widowed/Widower Separated lvi
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ii

Status:

High School Student College Student

Unemployed Employed

PART II. Resort Accommodation Services

Instruction: Kindly check your desired answer.

1. Are you willing to visit a farm resort that offers accommodations??

Yes No

2. Have you tried to check-in these facilities?

Yes No

3. What room do you usually take in the Farm Resort Room?

Single Room King Room
Twin Room Queen Room
Family Room

4. How frequent do you visit a farm resort with an accommodation

facility?
1-2 times 3-4 times
5-7 times more than 7 times

Date:
Signature:

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APPENDIX D
INTERVIEW GUIDE QUESTIONARE
Ramon Magsaysay Memorial College
Colleges Pioneer Avenue, General Santos
City
College of Business Education

I. COMPANY PROFILE

1. What is the name of your business?

2. Who is the owner/manager of this business?

3. Where is your business located?

4. How long has it’s been existing from the moment it started?

5. How many employees do you have?

6. Do you own this lot?

II. MARKETING

1. What are your actions if your customer had a complaint about your

services?

2. In what way do you promote your services?

3. What are your strategies to make your customer a repeat

customer?

4. How do you stabilize or maintain your prize?

5. What are your steps to overcome your competitors?

6. Where did you buy your products?

III. TECHNICAL

1. Does the quality of your services satisfy your customer?

2. Where did you market your services?

3. How much is the salary of your employees? lvi

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 lix

IV. FINANCIAL

1. How much is your capital to build this kind of business?

2. How much do you earn every month or year?

3. How much is the salary of your employee?

V. ORGANIZATIONAL AND MANAGEMENT

1. What form of organization do you have?

2. Why did you choose this farm resort as your business?

3. What are your policies toward your employee?

4. Did you build a relationship with your employee or to the owner or

manager?

5. What is your organizational structure?

VI. SOCIO-ECONOMIC

1. How does the business contribute to the local community's

development, in terms of its:

a. Benefits to the society

b. Benefits to the economy

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APPENDIX E
ENGINEER’S LICENSE AND CERTIFICATION
Ramon Magsaysay Memorial College
Colleges Pioneer Avenue, General Santos
City
College of Business Education

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CERTIFICATION OF ENGINEER
RAMON MAGSAYSAY MEMORIAL COLLEGES
Bachelor of Science in Tourism Management Pioneer
Av., General Santos City
Tel. No. 552-3348

CERTIFICATION
June 21, 2024

TO WHOM IT MAY CONCERN:

This is to certify that the floor plan layout of MC JOSHA L. SENTILLANOSA has

been verified and manually checked. Also, the bill of quantities was made with the

Engineer’s judgment and underwent professional estimation.

This certification is issued upon the request of the name mentioned above of the student for

educational purposes only.

Given this 21st day of June in our Almighty God’s year 2024.

I now affix my signature to confirm the correctness of the foregoing certification.

ENGR. CHERYLL M. ALFONSO

Engineer

lxi
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ii

APPENDIX F
Grammarian Certificate
Ramon Magsaysay Memorial College
Colleges Pioneer Avenue, General Santos
City
College of Business Education

lxi
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BIBLIOGRAPHY

Amaral, M., & Guerreiro, R. (2019). Cost-based pricing and its dominance in practice.

Journal of Business Research, 101, 103-111.

https://doi.org/10.1016/j.jbusres.2019.04.012

Council of Agriculture. (2015). Tourism farming: Utilization of rural scenery and

natural ecological and environmental resources in farm operations.

https://www.emerald.com/insight/content/doi/10.1108/JTF-06-2020- 0101/full/html

https://www.sciencedirect.com/science/article/abs/pii/S0167268123000501

Johnson, J., & Smith, R. A. (2023). Main street business initiatives and crime in small

towns. Journal of Economic Behavior & Organization, 209, 91-112.

Johnson, S. (2023) Flat organizational structure?

https://study.com/learn/lesson/flat-organizational-structure-hierarchy-

examples.html

Longenecker, J.et al., (2020) What is sole Proprietorship?

https://www.chamberofcommerce.org/sole-proprietorship-vs-corporation

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CURRICULUM VITAE

MC JOSHUA L. SENTILLANOSA
Purok 1A, Barangay
Koronadal Proper,
Polomolok, South
Cotabato
Cell # 09066583905
[email protected]

PERSONAL DATA

Date of Birth March 27, 2003

Age 21
Place of Birth Koronadal Proper, Polomolok, South Cotabato
Father’s Name James D. Sentillanosa
Mother’s Name Nenita L. Sentillanosa
Address Koronadal Proper, Polomolok, South Cotabato
Religion Roman Catholic

EDUCATIONAL BACKGROUND

Elementary Koronadal Proper Elementary School Koronadal

Proper, Polomolok, South Cotabato (2015-2016)

Junior High School General Santos Academy

Along National Highway,
Polomolok, South Cotabato
(2018-2019)

Senior High School Poblacion Polomolok National High School

Pagalungan, Polomolok, South Cotabato
(2020-2021)

College Ramon Magsaysay Memorial Colleges

Pioneer Avenue, General Santos City
(2023-2024)