A.

Introduction
Whether it's their beautiful frosting, their petite size, or their ability to light up a smile,
cupcakes really do have ultimate treat appeal. Every generation loves them and even
the grumpiest cant help but help themselves to these tasty pieces of art.
Cupcakes come in many varieties and sizes but there are a few factors that are always
the same. Cupcakes are generally baked in muffin pans that are lined with baking
paper. They are small in size and are usually frosted and decorated. The best thing
about cupcakes is that you can be as basic or as unique as you want with them. Almost
any type of cake or brownie can be made into a cupcake with some tweaks of the recipe
and a little ingenuity.
Cupcakes may seem Americanized or westernized but you can find cupcakes almost
anywhere you go.

In Southeast Asia, Thailand, Iceland, Brazil, Argentina, Britain,

Hungary etc. In the Philippines you can find rice cakes steamed in banana leaf cups.
The varieties are endless and the adaptions are unique to every baker.
Many great classic cupcakes can be served frosted, like Chocolate Butter cream
Cupcakes or Mint Chocolate Cupcakes. Others are great plain like Applesauce and
Cinnamon Cupcakes or Rum Raisin Cupcakes.
Whether you are a child or an adult, a novice or an experienced baker, once you get
started with my cupcake recipes you'll realize just how fun baking and decorating
cupcakes can be!

B. Projected Demand
Survey out of 100 x 12 months = Demand
( 100% x 12 = 1,200 )
In determining the Projected demand of RICZEL Cupcakes (Sweet place for you ), we
based our computation on the survey that we conducted among a number of people
living within the Angeles City especially , those Barangay and school which are near in
our market area.

YEAR

Table B.1
TOTAL NO. OF DEMAND PER YEAR

2015

1, 200

2016

1,218

2017

1,236

2018

1,255

2019

1,274

As the population increase the demand of the services also increases. And as the
result, a percentage of 12% was recorded as an increase of demand per year.
C. Projected Supply
Table C.1
YEAR

TOTAL NO. OF SUPPLY PER YEAR

2015

36, 000

2016

36, 540

2017

37, 088

2018

37, 644

2019

38, 209

D.Projected Demand and Supply

In determining the Projected Demand of Riczel cupcake, we based our computation on

the survey that we conducted among the number of people living within the Angeles City
specifically those barangays that are the near the market area. As a result of the survey
it shows that:
Table D.1
Age
DEMAND
SUPPLY
GAP
MARKET
SUPPLY

C. Potential number of Customer

Table D.2
BARANGAY

POPULATION

PERCENTAGE

SAMPLE SIZE

F. Market Area
RICZEL Cupcakes (Sweet Place for you) is a hang out place here in Pampanga.
Pampanga is one of the better places to start up a business. Our business is operating
from 9 AM to 9 PM. Our target markets are: Students, Employees, Teenagers, Couples
Families and Others.
About the Students, we have three (3) student markets. The first is the High School
Students, then the College Students and the Elementary Students. High School teens
represent one of the fastest growing populations here in our country. Teens significant
buying power both in their own right and context of their family purchasing decisions.
College Students are difficult to reach, typically between 18 years old to 20 years old
something. They are also hard to find with direct mail because they are highly transient.

Our most critical step is to understand our customers needs and to meet those more
effectively than the competition. Constantly, we are focusing on the customer and what
he/she needs and wants to buy, not what products or services we need or want to sell.
G. Buying Power
Based on the survey, we found out that the potential consumers are as follows:
Table G.1
CUSTOMER

FREQUENCY

PERCENTAGE

Students

47

47%

Employees

34

34%

Couples

10

10%

Families

3%

Others

6%

TOTAL

100

100%

In determining the buying power for the potential customers. We the surveyors of the
feasibility study used questionnaires and acquire interviews to the people around the
market area in order to gather data.

H. Market Share

The market share determines the total share of each business. It is according to the
survey in which shows the computed share of each business.
Table H.1

36% of the respondents prefer to eat in Competitor 1, 30% in Competitor 2, 25% in

Competitor 3 and the remaining 11% prefer to eat at RICZEL Cupcakes.

I.

Comparative Analysis Along Of Competitors

Every Individual deserves the best value of their money. And it is practical to
choose the products with highly quality that will satisfy the constantly changing
demands of the customer at affordable price. The lower the price, the higher customer
you will have. But, quality must also be considered.
Table E.1
Product Name

RICZEL CUPCAKES

DOMINIC CUPCAKERY

Red Velvet

60

65

Chocolate

45

50

Vanilla Cupcakes

45

50

Peppermint Mocha

50

50

Dark Chocolate

55

70

Banana

40

45

Strawberry

45

50

Brown Sugar Butterscotch

50

60

Nutella Chocolate Chip

30

35

White Chocolate Molasses

Cookies

30

35

Red Velvet Oreo Brownies

30

35

Peanut Butter Cup Crunch

Brownies

25

30

Hot Coffee ( Brewed )

30

30

Chocolate Shake

25

27

Fruit Shakes

25

27

Pandan Shakes

25

27

Coffee Shake

35

40

J. Gantt Chart

ACTIVITY

SEPTEMBE
R

OCTOBER

NOVEMBE
R

1 2

Project and
Conceptual
preparation of
business plan
Incorporation
and business
registration
Construction
of the building
Recruitment,
selection,
hiring and
training of
employees
Purchased of
tools,
materials and
equipments
Advertising
and
Promotion
Dry run and
business
operation

K. SWOT Analysis

DECEMBE
R
1

JANUARY
1

Is a structural analysis for analyzing the business strength, weaknesses, opportunities

and threats to know how to manage it right.

STRENGTH

Colorful
Accessible location
Affordable products and Good customer service
Relaxing ambiance
Security Guard

WEAKNESSES

Limited Space
Limited Flavors to offer to the market
The Business is new in the market
No Delivery

OPPURTUNITIES

Market Growth
Seasons
Innovation

THREATS

Entry of new competitors

Product Pricing
Price increase of raw materials

L. Description of Products
CUPCAKE

RED VELVET
CUPCAKES
Buttery red velvet
cupcakes with creamy
cheese frosting on top.

CHOCOLATE
CUPCAKES
Rich, tender Chocolate
cupcakes made of
unsweetened natural
cocoa powder topped
with vanilla frosting and
sprinkles.

VANILLA CUPCAKES
Vanilla Cupcakes made of
vanilla almond milk &
yogurt with Vanilla bean
frosting.

PEPPERMINT MOCHA
CUPCAKES
Deep Chocolate
cupcakes flavored with

PRICE

60.00

PRICE

45.00

PRICE

45.00

PRICE

50.00

peppermint and coffee

topped with peppermint
vanilla frosting, candy
canes and a chocolate
drizzle

DARK CHOCOLATE
CUPCAKES
Dark Chocolate
Cupcakes topped with
dark chocolate frosting.
Good for Chocolate
lovers.

BANANA CUPCAKES
The ultimate trio of your
favorite flavors! Supermoist banana chocolate
chip cupcakes with milk
chocolate and peanut
butter swirled frosting on
top.

STRAWBERRY
CUPCAKES
These fresh strawberry
cupcakes are made
purely from scratch with
real strawberries. Top
them with strawberry
whipped cream.

PRICE

55.00

PRICE

40.00

PRICE

45.00

BROWN SUGAR
BUTTERSCOTCH
CUPCAKES

PRICE

50.00

Brown sugar cupcakes

filled with homemade
butterscotch sauce,
topped with vanilla
frosting and more
butterscotch.

COOKIES

Nutella Chocolate Chip

Cookies
Covered with butter and
nutella Chocolate.

PRICE

30.00

White Chocolate Chip

Molasses Cookies
Soft and chewy brown
sugared molasses
cookies with lots of
sweet white chocolate
chips.

PRICE

30.00

BROWNIES

Red Velvet Oreo

Brownies
red velvet brownies
layered with Oreo
frosting, chocolate
ganache, and topped
with Oreos.

PRICE

30.00

Peanut Butter Cup

Crunch Brownies
Made of Semi-Sweet
Chocolate Baking Bars ,
topped with peanut and
creamy peanut butter

PRICE

25.00

DRINKS

Brewed Coffe
Made of Coffee and
Milk

PRICE

30.00

Chocolate Shake

PRICE

Made of Chocolate
powder & Milk for
sweet taste.

Fruit Shakes
Made of Different Fruit
Flavors and Milk

25.00

PRICE

25.00

M. Promotional Activites

Advertisement and Promotion

First week to Second Week

Posting of banners and Tarpaulins

Distribution of flyers

Third week to Fourth Week

Social Network Advertisement

Fifth week to sixth week

Promo and Free Taste

FLOOR PLAN
59.5 SQ.M
7.50 M

8
m
KITCHEN
2.30
m

CR
OFFICE
1.73

3.75
m
COUNTER
4M

3M
VICINITY MAP

Vi

Great
Dames
AUF

AUF
Medical
Center

Jollibee

AUF
College

Mega
X
Salon

Mister
Frosty

7-eleven

(7/11)

MC ARTHUR HI-WAY

Diego

Professi
onal
School
( AUF )

MCDO
( AUF )

Silang St.

AcquaOro

DOA AURORA ST.

Dominic
Cupcake
ry

Gene
rics
Phar
macy

Mercury
Drug
Shoulder
Boulder

ROYAL
E

Burgasm

RICZEL CUPCAKES
A Sweet place for
you

RICZEL
RICZEL
CUPCAKES
CUPCAKES

A
A Sweet
Sweet place
place for
for

you

5 Rat
Internet
Cafes

RICZEL
CUPCAKES

A Sweet place for

you

J. Perspective View

CUPCAKES-COOKIESBROWNIES
RICZEL
RICZEL
CUPCAKES
CUPCAKES
A
A Sweet
Sweet place
place for
for you
you

Chapter 3

In this Chapter, all the Management process of the business is tackled, starting from the
organizational structure down to Vicinity Map.
The nature of our business is Partnership. A partnership that is composed of five
partners, each partner will invest a 20 % share and will get a 20% dividend annually.

A. ORGANIZATIONAL STRUCTURE

MANAGE
R
BAKER
(1)
CASHIER/
CREW (1)

CASHIER/
CREW (2)

BAKER
(2)
MAINTENA
NCE/ CREW
(3)

B. Job Description
POSITION

JOB
SPECIFICATION
He/she must be 24
years old.
Graduate of a 4
years business
course.
Must have at least 2
year experience of
managing a
business.

JOB
DESCRIPTION
Responsible for
managing all the
aspects of the
business.
Responsible for
applying
commercial skills to
meet sales and
cost.

SALARIES AND
BENEFITS
500/day
Other mandatory
benefits by law such
as SSS, PHILHEALTH, PAG-IBIG
and 13th Month pay.

Baker

He/she must have a

passion for food or
in baking.
Creativity for
developing new
products or
decorating
confectionery.

Responsible for
baking, decorating
and create new
product.

400/day
Other mandatory
benefits by law such
as SSS, PHILHEALTH, PAG-IBIG
and 13th Month pay.

Cashier/ Crew

He/she must be 18
years old and
above.
At least College
Level must be a
trust worthy person.
-A crew must be 18
years old above,
easy to train and
have a pleasing
personality.

-A cashier is
responsible for
receiving payments
or cash handling.
- A crew is
responsible for
serving the order
and assisting
customers.

300/day
Other mandatory
benefits by law such
as SSS, PHILHEALTH, PAG-IBIG
and 13th Month pay

Maintenance

Must be 20-25
years old and
graduate of any
related course
about maintenance.

Responsible in
maintaining and
repairing the
equipments.

Security Guard

Must be 20-25
years old and have
an experience.

Responsible in
securing the store.

300/day
Other mandatory
benefits by law such
as SSS, PHILHEALTH, PAG-IBIG
and 13th Month pay
300/day

Manager

C. Employees Benefits
Social Security System(SSS)
All employees hired by private companies are
become an SSS
member(Republic Act No. 8282) . This system aims to protect its member for
when they are unable to work such as sickness, disability, maternity, old age and
death, or other such contingencies not stated but will result in loss of income or
result to a financial burden.

Philippine Health Insurance(PhilHealth)

The Philippine Health Insurance Corporation is the medical insurance company
of the Philippine. All employees are required to be contributors of this service
(Republic Act 7875). Members are given health and hospitalization subsidies
should they or a dependent be hospitalized. Monthly contribution are based on
actual employee monthly salaries and the amount of employee contribution is
matched equally by the employer.
PAG IBIG Fund
Home Development Mutual Fund Decree No. 1530,
employer contribution for housing purpose.

a system of employee-

13th Month Pay

According to Presidential Decree No. 851, all Filipino employees are entitled to a
year-end bonus equivalent to one (1) month salary regardless of the nature of
their employment.

Chapter 4

Financial Aspect
Pre Operating Expense
Capital Fixed Cost
Building Improvement
Equipments
Furniture & Fixtures
Baking Utensils
Office Equipments

Total Capital Fixed Cost

100,000
123, 681.50
79, 310.00
4,406.00
12,421.00

219,818.50

Working Capital
Salaries & wages
Electricity
Water
Advertising
Permits & License
Raw Materials
Office Supply
Repair maintenance
Employee Contribution

65,000
5000
800
2,500
3,468
29,340
500
2,000
4, 833.50

Total

113,441.50

Total Capital Fixed Cost

219,818.50

Total Working Capital

113,441.50

Total

333,260.00

Salaries & Wages

Position

Daily Monthly Year 1

Year 2

Manager

500

13, 000

156,
000

171,600 188,760

Baker 1

400

10, 400

11,440 12,584

13,842.40 15,226.64 16,749.30

Baker 2

400

10, 400

11,440 12,584

13,842.40 15,226.64 16,749.30

Cashier/Crew 300

7,800

8,580

9,438

10,381.80 11,419.98 12,561.98

Cashier/Crew 300

7,800

8,580

9,438

10,381.80 11,419.98 12,561.98

Cashier/Crew 300

7.800

8,580

9,438

10,381.80 11,419.98 12,561.98

Security
Guard

7,800

8,580

9,438

10,381.80 11,419.98 12,561.98

300

2,500
Total

65,000

213,200

234,520

Year 3

Year 4

Year

207,636

228,399.60

257,972.1 283,769.2 312,146.12

SSS Payments
Position

Monthly

Year 1

Year 2

Year 3

Year 4

Year 5

Manager

333.30

3,999.6

4,399.56

4,839.56

5,323.47

5,855.82

Baker 1

266.70

3,200.40

3,520.44

3,872.48

4,259.73

4,685.70

Baker 2

266.70

3,200.40

3,520.44

3,872.48

4,259.73

4,685.70

Cashier/Crew

266.70

3,200.40

3,520.44

3,872.48

4,259.73

4,685.70

Cashier/Crew

266.70

3,200.40

3,520.44

3,872.48

4,259.73

4,685.70

Cashier/Crew

266.70

3,200.40

3,520.44

3,872.48

4,259.73

4,685.70

Security
Guard

266.70

3,200.40

3,520.44

3,872.48

4,259.73

4,685.70

28,074.40

30,881.85

Total

Phil health

19,335.50

23,202

25,522.20

33,970

Position

Monthly

Year 1

Manager

250

Baker 1

Baker 2

Year 3

Year 4

3,000.00 3,300.00

3,630.00

3,993.00 4,392

200

2,400.00 2,640.00

2,904.00

3,194.40 3,513.84

200

2,400.00 2,640.00

2,904.00

3,194.40 3,513.84

Cashier/Crew 200

2,400.00 2,640.00

2,904.00

3,194.40 3,513.84

Cashier/Crew 200

2,400.00 2,640.00

2,904.00

3,194.40 3,513.84

Cashier/Crew 200

2,400.00 2,640.00

2,904.00

3,194.40 3,513.84

Security
Guard

200

2,400.00 2,640.00

2,904.00

3,194.40 3,513.84

1,450

17,
400.00

Total

Pag-ibig

Year 2

Year 5

19,140.00 21,054.00 23,159.4 25,475.00

Year 6

Position

Monthly

Year 1

Year 2

Year 3

Year 4

Year 5

Manager

250

3,000.00

3,300.00

3,630.00

3,993.00

4,392

Baker 1

200

2,400.00

2,640.00

2,904.00

3,194.40

3,513.84

Baker 2

200

2,400.00

2,640.00

2,904.00

3,194.40

3,513.84

Cashier/Crew 200

2,400.00

2,640.00

2,904.00

3,194.40

3,513.84

Cashier/Crew 200

2,400.00

2,640.00

2,904.00

3,194.40

3,513.84

Cashier/Crew 200

2,400.00

2,640.00

2,904.00

3,194.40

3,513.84

Security
Guard

200

2,400.00

2,640.00

2,904.00

3,194.40

3,513.84

1,450

17, 400.00

19,140.00

21,054.00

23,159.4

25,475.00

Total

Statement of Major Assumption

In getting the projected sales for RICZEL Cupcakes , based on our survey we
conducted out of 50 person, 48 person are willing to have the product in service
we offer.
Formula:
Projected sales x transaction/day x 30 days x 12 month.
= 645 x 48 x 30 x 12
=11, 145,600 projected sales on first year of the business.

There would be a 10 % increase of gross income every year.

Income tax rate from year 1 to 5 remain constant ( 32 % )

Electricity, water, salaries and wages, advertising expense, office supplies

and
raw materials will increase 10 % annually.

From 1st year to 5th year the depreciation of fixed assets, repair and
maintenance, permits and licenses will remain constant.

Income Statement
Year
Year 1
Gross
11, 145,600
Income
Operating
Expense
Salaries &
213,200
wages
Electricity
60, 000
Water
9,600
Advertiseme 30,000
nt
Office
6000
expense
Raw
29,340
materials
Permit &
3,468
license
Repair &
24,000
maintenance
Annual
58, 002
Depreciation
Total
315, 608.00
Operating
Expense
Net Income
Less Income
Tax 32 %
Net Income
After tax

10,
829,992.00
3,465,597.4
4
7,364,394.5
6

Net Book Value

Year 2
12, 260, 160

Year 3
13,486,176

Year 4
14,
834,793.6

Year 5
16,318,272.9
6

234,520

257,972.1

283,769.2

312,146.12

66,000
10,560
33,000

72, 600
11,616
36,300

79.860
12,777.6
39,390

87, 846
14,055.36
43,923

6,600

7,260

7,986

8,784.6

32,274

35,501.40

39,051.54

42,956.69

3,468

3,468

3,468

3,468

24,000

24,000

24,000

24,000

63,802

70,182.42

77,200.66

84,920.73

474,224

446,299.92

487,722.86

534,254.50

11,785,936.0
0
3,771,499.52

13,
039,876.08
4,172,760.3
5
8,867,115.7
3

14,
347,070.74
4,591,062.6
4
9,756,008.1

15,784,018.4
6
5,050,885.91

8,014,436.48

10,733,132.5
5

Fixed Assests

Cost

Useful Life

Annual
Contributrion

Building
Improvement

100, 000.00

10

10, 000.00

Equipments

115, 501.00

10

11, 550.00

Furniture & Fixture

44, 122.00

10

4, 412.00

Total

259, 623

25, 962

Permits & License

Year

DTI

200.00

BIR

500.00

MAYORS PERMIT

300.00

SANITARY PERMIT

150.00

FIRE SAFETY

518.00

BUSINESS PERMIT

1,650.00

BARANGAY CLEARANCE

150

TOTAL

3,468.00

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Cash Inflow
Investment

333,260

Gross
Income

11,145,600

12, 260,160

13,486,176

14,834,793.6

16,318

11,145,600

12, 260,160

13,486,176

14,834,793.6

16,318

Operating
Expenses

315, 608.00

474,224

446,299.92

487,722.86

534,25

Tax
Payments
(32%)

3,465,597.44

3,771,499.52

4,172,760.35

4,591,062.64

5,050,

Total
Outflow

302,991.50 3,781,205.44

4,245,723.52

4,619,060.27

5,078,785.50

5.585,

Net5 Cash
Flow

30,268.50

Total Cash
Inflow

333,260

Cash Out
Flow
Building
100,000
Improvement
Equipments

123,681.50

Furniture &
Fixtures

79,310.00

Add. Cash
Beg. Balance
Cash Ending
Balance

10,829,992.00 11,785,936.00 13,039,876.08 14,347,070.74 15,784

30,268.50

30,268.50

Statement of Cash flow

10,860,260.50 22,646,196.50 35,686,072.58 50,033

10,860,260.50 22,646,196.50 35,686,072.58 50,033,143.32 65,817

Balance Sheet
Year

Year 1

Year 2

Year 3

Year 4

Year 5

Current

10,860,260.

22,646,196.

35,686,072.

50,033,143.

65,817,161.

Asset

50

50

58

32

77

Total
Current
Asset

10,860,260.
50

22,646,196.
50

35,686,072.
58

50,033,143.
32

65,817,161.
77

Building
Improveme
nt

90, 000

80, 000

70, 000

60, 000

50, 000

Equipments

111,313.35

100,182.01

90,163.81

81,147,43

73,032.69

Fixed Asset

Furniture &
Fixtures
Raw
Materials
Total Fixed
Asset

Liabilities
and
Equities
Accounts
payable
Equity
Capital
Retained
earnings
Total equity
Less:
Annual
Contributiu
on