The Feasibility Study of Dellicieux Ballitaw in

Alexander St. Urdaneta City

A Feasibility Study Presented

To the Faculty of Panpacific Business School
Panpacific University

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management

Araman, Christine
Obedoza, Andrea Nicole
Velasco, Christine

March 2022
MARKETING STUDY

This chapter covers the overall product description, target market, demand analysis,
supply analysis, marketing strategies, distribution strategies, SWOT analysis and pricing
strategies of Ballitaw.

Product Description
The proposed name of the business will be 'Dellicieux Ballitaw'. Our team

decided to make a new face which adds the word 'Ball' from the traditional delicacy called

‘palitaw’. Palitaw is originally flat sticky rice that has a shredded coconut on top but this time we

will be giving it a new twist in which it will be seen as a round sticky rice that has different

filling on the inside of it like cheese, Chocolate, Ube, Pandan and Peanut butter. The Dellicieux
Ballitaw provides customers products that suit their preferred filling and even offers made-to-

order products. The size of our Ballitaw is the same size as a donut midget and it has assorted

colors.

GEOGRAPHIC AND DEMOGRAPHIC DESCRIPTION

The proposed business will be located at Alexander Street, Poblacion, Urdaneta City,

Pangasinan. The proponents chose Urdaneta City where the product will be offered and

distributed because Urdaneta City is the perfect area for this kind of business and there is no one

else selling this kind of product. It is available to 3 to 70 years old (male and female) and they

can choose whatever flavor they want. We are also open for delivery.

DEMAND

The proponents use an online poll via Google forms to gather the necessary information

for the study's demand analysis. Because of the present pandemic, the proponents used

convenience sampling for their online poll. Alexander Street Poblacion, Urdaneta City,

Pangasinan has a total population of 7,285 with male and female. Using Slovin's Formula, the

proponents came up with a total of 379 people who need to reply. The demand will be identified

in the question “Do you buy this product?"

Slovin's Formula = N / (1+ (N×e×e)

Where: N= total population = 7,285

e = margin of error = 0.05
n = total respondents = ?

Solution
n= 7,285
1+ (7,285 x 0.05 x0.05)

n = 7,285
19.2125
n = 379
SUPPLY

All of the ingredients for the products can easily be found in groceries and supermarkets.

Since the product is easy to make, the maximum target per day is to make 166 packs and 996

packs per week. Per pack will contain 12 pcs size bite Ballitaw which will sum up to 11,958 pcs

Dellicieux Ballitaw in the end of the week.

DEMAND AND SUPPLY GAP

The demand and supply gap can be beneficial to a company since it displays how much

of a product is consumed and purchased over a given period of time. It is critical to understand

demand because it will assist them in determining the product's and industry's trends. After

completely analyzing the demand, we can forecast the total number of quantities of the product

that we will create daily, weekly, monthly, and annually.

Table 1.1 Demand

Total Respondents (Costumer) 379

Respondents who are willing to buy Dellicieux Ballitaw 379

Respondents who are not willing to buy Dellicieux Ballitaw 0

Demand 379

Table1.2 Supply

Demand 379

Competitor 0

Supply 379
 DEMAND AND SUPPLY

Demand 379

Less: Supply 0

Demand and Supply Gap 379

SALES
Category Qty. Selling price Daily Monthly Annually

Dellicieux Ballitaw 1,993 ₱5.00 ₱ 9,965 ₱ 259,090 ₱3,109,080

Total 1,993 ₱5.00 ₱ 9,965 ₱ 259,090 ₱3,109,080

FIVE YEAR SALES

Category 2022 2023 2024 2025 2026

Dellicieux ₱ 3,109,080 ₱ 3,627,848 ₱ 3,887,655 ₱ 4,147,552 ₱ 4,251,978.8

Ballitaw

STRENGTH AND WEAKNESSES ANALYSIS

Dellicieux Ballitaw is a challenging product wherein it is the new face of the traditional

‘palitaw’ and we, my team, believe that this is one of the strengths that our product has. A lot of

people will be curious about it and will definitely end up trying it. The only weak part of our

product is that it must consume right away or else it will be spoiled.

OPPORTUNITIES AND THREATS ANALYSIS

This product will definitely make a huge change in the market, it gives us an opportunity

to showcase our traditional delicacies with a twist that will surely hit the market. The only threat
that we can acknowledge here is that we may encounter spoilage when it comes to the

ingredients but nonetheless that will be all the threats that we may face.

SWOT ANALYSIS AND STRATEGIES

The analysis below shows the business internal factors that require care and awareness. It

also acts as a reference for developing a thorough corporate plan and formulating appropriate

approaches. it identifies the strength , weakness, opportunities and threats of the Ballitaw . using

the SWOT analysis, it is possible to efficiently improve the business core elements. This will

also assist management in becoming a futuristic thinker in order to examine the data and

determine which methods are most effective.

S- New Product

W-Spoilage of Ingredients

O-Market Expansions

T-Large Businesses

PRODUCT STRATEGY

Dellicieux Ballitaw is a kind of sweet delicacy that has a taste mixture of sticky rice with

different fillings on the inside. The appearance of the product depends on the customer's flavor

desire. To make it presentable, the proponents put assorted colors and toppings of shredded

coconuts. The product is a ball-shape the same size as donut midgets. The packaging of the

product has a box size with a labeling sticker that puts the logo of the business and it has 12

pieces of Dellicieux Ballitaw inside of it.

PRICING STRATEGY
 The price of Dellicieux Ballitaw came up using the unit cost to know the selling price.

The unit cost of the product per piece is 3.28 and since the product must sell to everyone, the

selling price per piece of product is ₱ 5.00. The price of the product per box is ₱60.00 which

consists of 12 pieces in a box.

Manufacturing Cost of Dellicieux Ballitaw

Direct Materials 39,780.00

Direct Labor 46,656.00

Factory Overhead

13th Month Pay 37,856.00

Promotional Expenses 1,210.00

Transportation Expenses 3,380.00

Utility Expenses 1,300.00

Miscellaneous Expenses 3,674.00

Communication Expenses 1,200.00

Premium Expenses 3,865.00

Indirect Material 31,200.00

TOTAL AMOUNT 170,121.69

Unit cost

= Total cost daily

Total quantity produced

= 170,121.69
51,818
= P 3.28 per piece

Selling Price
=(Unit Cost × 50%) + Unit Cost

= (3.28× 50%) + 3.28

=₱ 4.92 or ₱ 5.00 per piece

PROMOTIONAL STRATEGY

The goal of promotion is to raise brand recognition, develop interest and product sales or

brand loyalty. The proponents will be using Tarpaulin, Flyers, Stickers, Social Media Page to

promote online the business and free taste to promote the business to everyone.

 TARPAULIN

It will be posted in front of the store with a stand in the back so that the customers

passing by the store can see it immediately.

 FLYERS

Proponents will distribute flyers to other people to inform them about the business.
 STICKERS

Stickers will be posted to public places like in the post so they can see the new opening

store near them. Also, some stickers will be given to the customers as their freebies.

 SOCIAL MEDIA

To promote the business, the proponents gave up an idea to promote online. Since almost

everyone has a social media account, they will surely notice the business page and

directly contact the store through a private message.

 FREE TASTE
 During the grand launch of the business, the proponents give the public a free taste of

Ballitaw. This purpose is to provide an overview of product and to crave them for

Ballitaw

Promotional Expenses

CATEGORY QUALITY PRICE TOTAL COST

Tarpaulin 1 110.00 110.00

Flyers 50 7.00 350.00

Stickers 40 10.00 400.00

Free taste 50 5.00 250.00

TOTAL AMOUNT P 1,210.00

TECHNICAL STUDY
 This chapter will help us to know the efficacy of our proposed product which is the
Dellicieux Ballitaw. As we go through this chapter we will be more knowledgeable about how
Dellicieux Ballitaw will be produced and what are the techniques we will be using to make the
production more effective. We will also tackle here the packaging and different types of
deliveries we may offer to our future customers.

PRODUCT SERVICE OFFERED

The Classic palitaw is often bland and flavorless. That's why we came up with our
product that will give a new face in it. Assorted Dellicieux Ballitaw is our product; it was
inspired by one of our country’s delicacies, the ‘palitaw’. Which comes in a white oval or
circular shape, it is also in a sugary form and is enjoyed as a snack or dessert. Instead of being
flat or the traditional face of it, our product will be in ball shape with various kinds of fillings
that can add excitement and satisfaction to our customers. Customers may choose with the
different flavors such as chocolate, ube, pandan, and peanut butter. We also came up with made
to order Dellicieux Ballitaw to those customers who wanted to have a reservation. Our
Dellicieux Ballitaw is also a bite size that you can enjoy wherever you go.

PRODUCT SERVICE PROCESS

Ingredients of Ballitaw
 Glutinous rice (Malagkit)
 Water
 Food Coloring
 White sugar
 Sesame seeds
 Desiccated coconut
 Cheese
 Chocolate bar
 Ube
 Strawberry jam
 Pandan filling

PROCESS

 Mix glutinous rice with water and food coloring until dough is form
 Roll like a ball and flatten with your hands
 Prepare the different types of filling that will be put on the ball shape figure
  Use a clean food syringe and Insert the syringe with designated filling to the ballitaw
 Boil 3 cups of water
 Put all the Dellicieux Ballitaw to the boiling water and wait a few minutes to float.
( Palitaws are cooked when they already float )
 Let it cool and dole them one by one in a fine desiccated coconut
 When it’s done, put it on latter and assemble it on its packaging.

Product schedule per piece

Category Daily Monthly 1 Year

Dellicieux Ballitaw 1,993 51,818 621,816

Total Pieces of product 1,993 51 818 621,816

Production Volume
Demands- 379
Total Population-7,285
Total Demand- 7,664
Daily- 26%
Total Pieces daily- 1,992.64 or 1,993 piece per day

Schedule
Monday Tuesday Wednesday Thursday Friday Saturday

Main Venue 9AM-5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM- 9AM-5PM

5PM

Delivery 10AM- 10AM- 10AM- 10AM- 10AM- 10AM-

Schedule 4PM 4PM 4PM 4PM 4PM 4PM

Materials and Equipment

Category Unit Price Total Amount

Freezer 1 2,921.00 2,921.00

Water dispenser 1 1,500.00 1,500.00

Mixing bowl 2 84.00 168.00

 Strainer 2 49.00 98.00

Measuring cups 2 39.00 78.00

Rubber scraper 2 39.00 78.00

Knife 2 37.00 74.00

Glass container 5 180.00 900.00

Casserole 2 400.00 800.00

Food syringe 10 120.00 1,200.00

Gas stove 1 2,100.00 2,100.00

TOTAL AMOUNT ₱ 9,917.00

The table shows that used to create a product includes some machinery and Equipment to operate
continuously.

Raw Materials / Ingredients of Dellicieux Ballitaw

Category Unit Price Total Weekly Monthly Annually
Amount

Glutinous rice 5kg 50.00 250.00 1,500.00 6,500.00 78,000.00

(malagkit)

Water 2 gallon 20.00 40.00 240.00 1,040.00 12,480.00

Food coloring 5 bottle/ 20 ml 36.00 180.00 1,080.00 4,680.00 56,160.00

per bottle

Sesame seed 1 kl 200.00 200.00 1,200.00 5,200.00 62,400.00

Desiccated 3 coconut 25.00 75.00 450.00 1,950.00 23,400.00

coconut

Cheese 2 box 50.00 100.00 600.00 2,600.00 31,200.00

Chocolate bar 1kl 245.00 245.00 1,470.00 6,370.00 76,440.00

Ube 70pcs 1.00 70.00 420.00 1,820.00 21,840.00

Strawberry jam 250 grams 120.00 120.00 720.00 3,120.00 37,440.00

 Pandan filling 70 pcs 1.00 70.00 420.00 1,820.00 21,840.00

White Sugar 3kl 60.00 180.00 1,080.00 4,680.00 56,160.00

TOTAL
AMOUNT 1,53.00 9,180.00 39,780.0 477,360.00
0

Furniture and Fixtures

Category Unit Price Total amount

Table 2 1,299.00 2,598.00

Chairs 10 270.00 2,700.00

Display Cabinet 1 450.00 450.00

Fan 1 900.00 900.00

Fluorescent lights 3 250.00 750.00

TOTAL AMOUNT ₱ 7,398.00

Packaging Materials
Category Unit Price Total Amount Monthly Annually

Labeling Stickers 200 2.50 500.00 13,000.00 156,000.00

Plastic box packaging 200 3.00 600.00 15,600.00 187,200.00

TOTAL AMOUNT 1,300.00 31,200.00 343,200.00

Table 2.7 Transportation Equipment

Category Quality Price Daily Monthly Annually

Premium Gas 2 Liter 65.00 130.00 3,380.00 40,560.00

TOTAL AMOUNT 65.00 130.00 3,380.00 40,560.00

BUILDING
Category Cost

Rent of Building 6,000.00 monthly

TOTAL AMOUNT 6,000.00

UTILITY EXPENSES
Category COST MONTHLY

Water 300.00

Electricity 1,000.00

TOTAL AMOUNT 1,300.00

MISCELLANEOUS (Cleaning Supply)

Category Quality Price Total Amount

Fire Extinguisher 1 1,900.00 1,900.00

Trash Bin 3 147.00 441.00

Trash Bag 100 bag 94.00 94.00

Floor Map 1 230.00 230.00

Sponge 1 20.00 20.00

Bleach Toilet 1 142.00 142.00

Hairnet 50 pcs 131.00 131.00

Face Mask 50 pcs 73.00 73.00

Gloves 20 pair 135.00 135.00

Dustpan & Broom 1 257.00 257.00

Handwash 1 257.00 257.00

TOTAL 3,674.00

COMMUNICATION EXPENSE
Category Monthly Annually

Wi-Fi 1,200.00 14,400.00

TOTAL 1,200.00 14,400.00

OFFICE SUPPLIES
Category Quality Price Total Amount

Cash Roll 100 rolls 186.00 186.00

Ballpen 1 box 34.00 34.00

Record Book 1 70.00 70.00

Sticky Note 100 pcs 17.00 17.00

Tape 1 box 49.00 49.00

Stapler 1 39.00 39.00

Bond paper 1 box 145.00 145.00

Stapler wire 1 box 69.00 69.00

TOTAL 609.00 609.00

OFFICE EQUIPMENT
Category Quality Price Total Amount

Office Chair 1 730.00 730.00

Calculator 1 95.00 95.00

Laptop 1 16,799.00 16,799.00

CCTV Camera 1 1,689.00 1,689.00

Cashier Counter Machine 1 10,935 10,935

 TOTAL 30,298.00 30,298.00

PERMIT AND LICENSES

Category AMOUNT

Mayor's permit 5,00.00

DTI Permit 240.00

Barangay’s Permit 250.00

BIR Permit 500.00

Sanitary Permit 120.00

TOTAL 6,110.00

LABOR DESCRIPTION

Job Title: CASHIER

Job responsibilities:
 Provide a positive customer experience with fair, friendly and courteous service.
 Responds to client concerns and enquiries.
 Balance the cash draw by counting the cash at the start and end of each work shift.
 As needed, contribute to the team effort by completing related findings.
Job Qualifications:
 Male/Female
 At Least 18-40 Years Old
 Senior High School diploma or an equivalent
 Experience in customer service or Cashier
 Capacity to handle transactions in a responsible and accurate manner
 Computer Skills

Job Title: Sales Agent

Job responsibilities:
 Excellent communication skills
 Flexible work hours
 Basic mathematics skills
 Prior Experience
  Excellent Costumers service skills
 Motivation to work through busy shifts
Job Qualifications:
 At least 20-30 years old
 A degree in sales, marketing, commerce or a related field would be advantenous
 Male/ Female
 At least 1 year experience related in marketing
Job Title: COOK/ CHEF/ PACKAGER

Job Responsibilities:
 Experience in using cutting tools and cookware
 Knowledge of various cooking procedures and methods
 Ability to follow all sanitation procedures
 Ability to work in a team
 Very good communication skills
Job Qualifications:
 Male/Female
 At Least 20-40 Years old
 Senior High School diploma or General Education Degree (GED) required
 At Least 1 year service or restaurant experience required

Job Title: DELIVERY MAN

Job Requirements:
 Reviewing orders and making modifications to delivery to ensure that orders are
complete, changes are correct, and customers are satisfied.
 Accepting payments for delivered items
 Providing great customer service, including answering questions and resolving consumer
problems.
Job Qualifications:
 Male
 At Least 20-40 years old
 Ability to listen and follow instruction
 Good driving skills with a valid license ID

PROJECTED SALARY AND WAGES EXPENSES

Administrative Worker Daily Monthly Annually 13th Month Pay

Cashier 273.00 7,098.00 85,176.00 7,098.00

 Sales Agent 273.00 7,098.00 85,176.00 7,098.00

Delivery Man 1 280.00 7,280.00 87,360.00 3,380.00

Delivery Man 2 280.00 7,280.00 87,360.00 3,380.00

Cook 1 325.00 8,450.00 101,400.00 8,450.00

Cook 2 325.00 8,450.00 101,400.00 8,450.00

TOTAL 1,756.00 46,656.00 547,872.00 37,856.00

PROJECTED PREMIUM EXPENSES

Administrative Worker SSS PhilHealth Pag-ibig Monthly Annually

Cashier 319.41 150.225 107.76 577.395 6,928.74

Sales Agent 319.41 150.225 107.76 577.395 6,928.74

Delivery Man 1 327.60 170.10 125.20 622.9 7,474.8

Delivery Man 2 327.60 170.10 125.20 622.9 7,474.8

Cook 1 386.75 386.75 145.60 732.55 8,790.00

Cook 2 386.75 386.75 145.60 732.55 8,790.00

TOTAL 2,067.52 1,041,05 757.12 3,865.69 46,388.3

Building, Machinery, Equipment amd Facilities

 Plant Layout

The building is divided into four sections: the kitchen, the counter, the comfort room, and
the eating area which has two tables and 8 seats for customers. At the counter, there will be a
display cabinet with necessary supplies. The water dispenser will be at the counter's front. A
freezer, a gas burner, and shelves for some of the ingredients may all be found in the kitchen.

MACHINERIES AND EQUIPMENT

Freezer
This item will be kept in the kitchen and will
be used to store food for a long time
 Water An appliance that dispenses water is known as
Dispenser a water dispenser. It will be situated at the front
of the counter and will be utilized to provide
easy access to drinking water.

Table The table will be used as an eating table for

customers that prefer to dine in.

Chair Customers who will wait for their orders or

dine in will sit in these chairs.

Display It is a cabinet in which the displayed food will

Cabinet be kept here
WASTE DISPOSAL

In terms of our waste disposal, our team decided that we will be segregating the
biodegradable materials to non-biodegradable. We will be providing garbage bags in our stall
that will separate those materials. When it comes to the expenses on our garbage disposal the
main expenses will only be the garbage bags and the collecting fee of the garbage truck.
 ORGANIZATIONAL AND MANAGEMENT ASPECT

This chapter covers the foundations of the study. It includes the Type of Organization,

Organizational Structure, Qualifications, Duties and Responsibilities of the Management Team,

staff requirements, benefits and compensation of the employees and organizational policies.

FORM OF BUSINESS

"Dellicieux Ballitaw" is owned and operated as a partnership. Partners combine money,

skills, and other resources, and profit and loss are shared according to the partnership

agreement's conditions. In the absence of such an agreement, a partnership is assumed to exist in

which the enterprise's members agree to proportionately share the related risk and profits. Each

pattern's complementary abilities and additional contacts can help them achieve bigger financial

achievements together than they might alone. For the business to exist longer, it need mutual

support and motivation.

TYPE OF BUSINESS

The type of business is a partnership. Partnership is a formal arrangement by two or more

parties to manage and operate a business and share its profits.In a broad sense, a partnership can
be any endeavor undertaken jointly by multiple parties. The parties may be governments,
nonprofits, enterprises, businesses, or private individuals. The goals of a partnership also vary
widely.

COMPANIES VISION, MISSION, GOALS, AND OBJECTIVES

VISION

Serving the best palitaw with the lowest cost possible while maintaining the best quality

MISSION
  To build the best product, cause no unnecessary harm, use business to inspire and

promote our own

 To meet or exceed the customer’s expectations for an exceptional quality palitaw

 To offer a product in a friendly manner and easily accessible to the customers

GOALS

 Reach out to different places

 Strengthen Customer Service

 Increase or maintain profits

 Keep the employees focus on growth

 Install tools and systems to increase productivity

OBJECTIVE

The Ballitaw objective is to be known not only in Urdaneta City but also to other places

that are near it, it will help to increase the profits which can help our employees and to hire new

people to manage the upcoming future stores in different areas.

OFFICERS OF THE BUSINESS

OWNER

 Christine Joy Araman

 Christine Velasco

 Andrea Nicole Obedoza

MARKETING MANAGER

 Christine Joy Araman

FINANCIAL MANAGER
  Christine Velasco

PRODUCTION AND OPERATING MANAGER

 Andrea Nicole Obedoza

ORGANIZATIONAL STRUCTURE

The figure above shows the organization structure of the proposed business. The structure

consists of four main parts, the owner, sales staff, the product assembler and the delivery staff.

The owners or the partnership who own and manage the inside and outside or the overall aspects

of the business. He or she must maintain the proper operation of the business from the opening

time until the closing time of the business. Also, the owner must observe the wellness of the
business and their products. Sanitation as well as product modification are also observed by the

owner. The sales staff was tasked to manage the financial aspect which includes the incoming

sales and outgoing products of the proposed business. Also, the sales staff was tasked to manage

the accounting and other financial related work. Lastly, the product assembler was tasked to

create the ballitaw where he or she has undergone some lessons from the owner in order to

produce the same products with the same process. The product assembler was also tasked to

inventory with regards to the materials and the created product stocks.

The management of the proposed business will need a total of four (4) employees. One

(1) employee for the sales staff/cashier and two (2) employees for the product assemblers/cook

and package and One (1) delivery staff.

STAFF REQUIREMENTS
Job Title: CASHIER

Job responsibilities:
 Provide a positive customer experience with fair, friendly and courteous service.
 Responds to client concerns and enquiries.
 Balance the cash draw by counting the cash at the start and end of each work shift.
 As needed, contribute to the team effort by completing related findings.

Job Qualifications:
 Male/Female
 At Least 18-40 Years Old
 Senior High School diploma or an equivalent
 Experience in customer service or Cashier
 Capacity to handle transactions in a responsible and accurate manner
 Computer Skills

Job Title: Sales Agent

Job responsibilities:
  Excellent communication skills
 Flexible work hours
 Basic mathemstics skills
 Prior Experience
 Excellent Costumers service skills
 Motivation to work through busy shifts

Job Qualifications:
 At least 20-30 years old
 A degree in sales, marketing, commerce or a related field would be advantenous
 Male/ Female
 At least 1 year experience related in marketing

Job Title: COOK/ CHEF/ PACKAGER

Job Responsibilities:
 Experience in using cutting tools and cookware
 Knowledge of various cooking procedures and methods
 Ability to follow all sanitation procedures
 Ability to work in a team
 Very good communication skills

Job Qualifications:
 Male/Female
 At Least 20-40 Years old
 Senior High School diploma or General Education Degree (GED) required
 At Least 1 year service or restaurant experience required

Job Title: DELIVERY MAN

Job Requirements:
 Reviewing orders and making modifications to delivery to ensure that orders are
complete, changes are correct, and customers are satisfied.
 Accepting payments for delivered items
 Providing great customer service, including answering questions and resolving consumer
problems.

Job Qualifications:
 Male
 At Least 20-40 years old
 Ability to listen and follow instruction
 Good driving skills with a valid license ID

SCHEME OF EMPLOYEE COMPENSATION AND BENEFITS

PROJECTED SALARY AND WAGES EXPENSES

Administrative Worker Daily Monthly Annually 13th Month Pay

Cashier 273.00 7,098.00 85,176.00 7,098.00

Sales Agent 273.00 7,098.00 85,176.00 7,098.00

Delivery Man 1 280.00 7,280.00 87,360.00 3,380.00

Delivery Man 2 280.00 7,280.00 87,360.00 3,380.00

Cook 1 325.00 8,450.00 101,400.00 8,450.00

Cook 2 325.00 8,450.00 101,400.00 8,450.00

TOTAL 1,756.00 46,656.00 547,872.00 37,856.00

PROJECTED PREMIUM EXPENSES

Administrative Worker SSS PhilHealth Pag-ibig Monthly Annually

Cashier 319.41 150.225 107.76 577.395 6,928.74

Sales Agent 319.41 150.225 107.76 577.395 6,928.74

Delivery Man 1 327.60 170.10 125.20 622.9 7,474.8

Delivery Man 2 327.60 170.10 125.20 622.9 7,474.8

Cook 1 386.75 386.75 145.60 732.55 8,790.00

Cook 2 386.75 386.75 145.60 732.55 8,790.00

TOTAL 2,067.52 1,041,05 757.12 3,865.69 46,388.3

COMPANY POLICIES

 Everyone must be accountable and disciplined.

 A person is not allowed to develop a relationship with his/her co-workers.
 All members must be open and honest with one another.
 Will be having a schedule of cleaning utensils and areas.
 Biodegradable and non-biodegradable materials are separated.
 Waste should be cleaned as soon as possible.
 Will have a schedule for garbage collection and disposal.
 All members must be informed about what is going on in the company.
 I'll be establishing a timetable to keep track of the members' attendance.

 We will work together as a team and assist one another in times of need.
 Time-in and time-out of the members must be signed by any manager on duty.
 Every member, including those on duty, is entitled to a 30-minute break.
 Everyone must adhere to the rules and regulations. If you do not comply, you will face
disciplinary action.
 FINANCIAL ASPECT

In this chapter, the Financial study focuses on the financial aspects of the study. it should
be conducted at the onset to determine the economic viability of a proposed endeavor before
proceeding to the preparation of a business plan. It identifies the initial expenses, forecasts
profits and cash flows, and calculates the investment return.

MAJOR ASSUMPTIONS

1. Employees normally receive statutory benefits such as SSS, PhilHealth and

HDMF/PAG-IBIG.

2. The type of business is partnership

3. Salaries expense remains constant yearly

PRE-OPERATING EXPENDITURES

PARTICULARS AMOUNT

Planning 2,000.00

Canvassing materials and equipment 1,500.00

Hiring Employees 1,756.00

Dry run 458.00

Launching Grand Opening 2,500.00

TOTAL 8,214.00
 Dellicieux Ballitaw

First-Year Projected Income Statement

For the Period ending December 31, 2022

Sales P 3,109,080.00

Cost of Goods Sold 867,980.04

GROSS INCOME P 2,241,099.96

Less: Operating Expenses

Salaries and Wages 547,872.00

Premium Expense 46,388.30

Miscellaneous Expense 44,088.00

Promotional Expense 1,210.00

Transportation Expense 40,560.00

Utility Expense 15,600.00

Communication Expense 14,400.00

Permit and Licenses Expense 6,110.00

Office Supply 37,606.00 753,834.30

NET INCOME P 1,487,265.66

 Dellicieux Ballitaw

First-year projected equity

For the period ending December 31,2022

Ballitaw Capital: 200,000.00

Add: Profit 1,487,265.66

Total: 1,687,265.66

Less: Withdrawals 1,356,264.05

Owner’s Equity 331,001.06

Dellicieux Ballitaw

First-year projected Balance Sheet

For the period ending December 31,2022

ASSET

Current Asset

Cash 867,980.04

Inventory 678,659.96
Total Current Asset 1,546,640

Non-Current Asset

Machineries 9,917.00
and Equipment
Furniture 7,398.00
 Building 72,000.00
Total Non-Current Asset 89,315.00

TOTAL ASSET 1,635,955.00

LIABILITIES AND EQUITY

Current Liabilities

Statutory Payable 46,388.28

Vat Payable 51,021.11
Salaries and Benefits 585,728
Total current liabilities 683,137.39

Non-Current Liabilities

Service Revenue 621,816

Total Non-Current Liabilities 621,816

TOTAL LIABILITIES 1,304,953.39

OWNER’S EQUITY

BALLITAW CAPITAL December 31,2022 331,001.61

TOTAL LIABILITIES AND EQUITY 1,635,955

 Dellicieux Ballitaw

First-year projected Cash Flow

For the period ending December 31,2022

CASH FLOWS FOR OPERATING ACTIVITIES

Net Income 1,487,205.66

Adjustment for:

Depreciation 17,315.00

Income Before working capital changes 1,504,580.66

Increase (Decrease) in:

Statutory Payables 46,388.28

VAT Payable 51,021.10

Net cash generated (used) 1,601,990.04

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property (89,315.00)

Net cash generated (USED) (89,315.00)

CASH FLOWS FROM FINANCING ACTIVITIES

Initial Investments 2,269,012.56

Owner Withdrawals 1,356,204.04

Net Cash Generated (USED) 912,748.52

NET INCREASE IN CASH2 ,425,423.56

CASH AT THE BEGINNING OF THE YEAR -------------

CASH AT THE END OF THE YEAR 2,425,423.56

 NOTES OF FINANCIAL STATEMENT

Note 1- Cash

This Account consists of the following:

2022 2023 2024 2025 2026

Cash in 817,980.04 1,016,838.43 1,116,474.65 1,113,202.41 1,075,083.67
Bank
Cash in 50,000 50,000 50,000 50,000 50,00
Hand
CASH 867,980.04 1,066,836.43 1,166,474.65 1,163,202.41 1,125,033.67

Note 2- Inventory

2022 2023 2024 2025 2026

Finished Goods Inventory 578,653.36 533,418.21 388,824.88 290,800.60 281,270.67
End
Work-in process 76,138.6 53,768.49 53,783.23 56,062.01 58,713.30
Inventory End
Raw Materials 23,868 13,127.4 13,783.77 15,129.33 16,640.62
INVENTORY 678,659.96 600,314.1 456,391.88 361,991.94 356,624.59

Note 3- Statutory Payable

2022 2023 2024 2025 2026

SSS 24,810.2 24,810.24 24,810.24 24,810.24 24,810.24
4
PHILHEALTH 12,492.6 12,492.6 12,492.6 12,492.6 12,492.6
PAG-IBIG 9,085.44 9,085.44 9,085.44 9,085.44 9,085.44
STATUTORY 46,388.2 46,388.28 46,388.28 46,388.28 46,388.28
PAYABLE 8

Note 4- VAT Payable

2022 2023 2024 2025 2026

VAT 51,021.108 56,129.82 61,742.80 67,917.08 74,708.79
PAYABLE
Note 5- Service Revenue

2022 2023 2024 2025 2026

Daily Revenue 1,993 2,325.54 2,492.09 2,658.69 2,725.63
Multiply: Operating Days 312 312 312 312 312
Per Year
Service 621,816 725,569.6 777,531 829,510.4 850,396.76

Note 6- Cost of Service

2022 2023 2024 2025 2026

Annual Revenue 621,816 725,569.6 777,531 829,510.4 850,395.76
Multiply: Cost of 70% 70% 70% 70% 70%
service rate
COST OF SERVICE 435,271.2 507,898.72 544,271.7 580,657.28 595,277.053

Note 7-Salaries and Other Benefits

2022 2023 2024 2025 2026

Salaries expense 547,872 547,872 547,872 547,872 547,872
13th Month pay 37,856 37,856 37,856 37,856 37,856
Annual Total 585,728 585,728 585,728 585,728 585,728

Note 8- Utilities

2022 2023 2024 2025 2026

Electricity 1,000 1,100 1,210 1,331 1,464.1
Water 300 330 363 399.3 639.23
Wi-Fi 1,200 1200 1,200 1,200 1,300
Monthly 2,500 2,630 2,773 2,930.3 3,103.33
Total
Annual 30,000 31,560 33,276 35,163.16 37,239.96
Total

Note 9- Depreciation

2022 2023 2024 2025 2026

Equipment 9,917 9,917 9,917 9,917 9,917
Furniture 7,398 7,398 7,398 7,398 7,398
Depreciation 17,315 17,315 17,315 17,315 17,315
Note 10- Permit and Licenses

2022 2023 2024 2025 2026

Mayor’s 5,000 5,000 5,000 5,000 5,000
Permit
DTI Permit 260 260 260 260 260
Barangay 250 250 250 250 250
Permit
BIR Permit 500 500 500 500 500
Sanitary 120 120 120 120 120
Permit
TOTAL 6,110 6,110 6,110 6,110 6,110
COST OF SALES 2022 2023 2024 2025 2026

Raw materials Beg. Bal. - 23,868 13,127.4 13,783.7 15,129.33

Purchase Raw materials 477,360 238,680 262,548 288,802.80 317,683.08

Total Raw materials 477,360 262,548 275,675.4 302,586.57 332,812.41

Less: Raw materials Bal. (23,868) (13,127.4) (13,783.77) (15,129.33) (16,640.62)

Total Raw materials Used 453,492 249,420.6 261,891.63 287,439.24 316,171.79

Direct Labor 559,872 559,872 559,872 559,872 559,872

Factory Overhead 507,408 181,938.57 200,132.43 220,145.67 242,160.3

Total Manufacturing Cost 1,522,772 999,231.17 1,021,896.06 1,067,456.91 1,118,204.03

Add: Work-in Process Beg. - 76,138.6 53,768.49 53,783.23 56,062.01

Goods Placed in Process 1,522,272 1,075,369.77 1,075,664.55 1,121,240.14 1,172,266.04

Less: Work-in Process End (76,138.6) (53,768.49) (53,783.23) (56,062.01) (58,713.30)

Cost of Goods Beg. Bal. 1,446,633.4 1,021,601.28 1,021,881.32 1,065,178.13 1,115,552.74

Add: Finished Goods Beg. Bal. - 578,653.36 533,418.21 388,824.88 290,800.60

Total Goods Available for Sales 1,446,633.4 1,600,254.64 1,555,299.53 1,454,003.01 1,406,353.34

Less: Finished Goods Ending Bal. (578,653.36) (533,418.21) (388,824.88) (290,800.60) (281,270.670)

TOTAL COST OF GOODS SOLD 867,980.04 1,066,836.43 1,166,474.65 1,163,202.41 1,125,083.67

Net Sales 2022 2023 2024 2025 2026

Sales in Unit 621,816 725,569.6 777,531 829,510.4 850,395.76

Selling Price 5.00 5.00 5.00 5.00 5.00

Total Sales 3,109,080 3,627,848 3,887,655 4,147,552 4,251978.8

Sales

Total Production 1,036,360 1,036,528 1,036,708 1,036,388 1,037,068

Percentage of Sales 60% 60% 60% 60% 60%

Sales 621,816 725,569.6 777,531 829,510.4 850,395.76

Financial analysis

- Financial analysis is the process of assessing the performance and suitability of

businesses, projects, budgets, and other financial transactions. Financial analysis is
typically used to determine whether a company is stable, solvent, liquid, or profitable
enough to warrant a monetary investment.

Ratio of Profit Margin

- The profit margin is the percentage of profit left over after all expenses have been paid.
The profitability of a product, service, or business is determined by the ratio of profits
earned to total sales receipts.

Profit Margin Ratio = Net Income/Revenue or Cash

1,487,265.66/2,425,423.00

= 0.6%

Return on Investment

- Return on Investment (ROI) is a popular profitability metric for determining how well an
investment has done. The return on investment (ROI) is calculated by dividing the
investment's net profit (or loss) by the investment's initial cost or outlay.

Return on Investment = Net Income/Investment

1,487,265.66/2,269,012.00

= 0.6%
Payback Period

- Simply put, it is a method for calculating the time required to recoup investment losses
through successive cash inflows. This aids in determining how long it will take to recoup
the project's initial cash outlay.

Payback Period = Capital/Cash Balance at end of the Period

= 912,148.52/2,425,423.00

= 1*12

= 12 months
 SOCIO-ECONOMIC

This chapter tackles the viability of the proposed business in terms of its effect on the
social and economic condition of the community and its government.

Revenue Generation: Municipality Government

The owner will pay taxes to the Municipality of Urdaneta. These taxes will create funds
to build the government projects like different infrastructures, public services, education etc. The
proposed business can also build relationships with the suppliers and improve the municipality’s
tourism that can further develop the image of Sual and the quality of product.

Employment Generation

The proposed business will contribute to the municipality's economic growth by

providing jobs for its residents. As a start-up business, the owner will need to hire two (2)
product assemblers who will be responsible to produce ballitaw, one (1) sales staff who will be
responsible for the financial aspects of the proposed business, including incoming sales and
outgoing products, accounting, and other financial related work, and one (1) delivery staff. SSS,
PhilHealth, PAG-IBIG, 13th Month Pay, and other necessary benefits will be provided to each of
them. As the projected firm grows, more employees will be required, providing more job
chances for those who are now unemployed in the neighborhood. This will further increase the
income to them and their families which can also improve their standards of living.