Feasibility Study

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Chapter 1
EXECUTIVE SUMMMARY
Name of the Applicant
The name of the applicant is Jhonalyn M. Galdones, currently enrolled in
Tomas Claudio Colleges with the degree of Bachelor of Science in Accountancy.
Currently residing at Brgy. Plaza Aldea Tanay, Rizal.
Name of the Firm
JE Naturals Co. is the name of the firm. “JE” is derived from the initial (first
name) of the partners, Jhonalyn M. Galdones and Edna Rona T. Montimor.
“Naturals”, on the other hand, connotes the products being pure and healthy. The
name of the product “BNN” came from the word Banana, where the proponent just
remove the vowel letter “a”. The name is very simple and short yet elegant to say
and read. It also signifies that the products offered by Blank Company are pure
and natural. With its name, the proponent wanted to inform everyone that banana
is not just a food but also a best way to improve the skin and hair along with some
natural ingredients.
Location
The proposed business will be located at Sampaloc Rd. Brgy. Plaza,
Aldea Tanay, Rizal. The area is about 400 sq. m near the establishments like
Savemore, Puregold and Tanay Public Market. The proponent will buy the land
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together with the building, which will be subjected to renovation. The location is
also an. advantage because all target towns in Rizal is near from it so there will
be no delay nor problem when it comes to distribution. The proponent also think
that the chosen location will be accessible to everyone
Project Description
BNN Personal Care offers some of the most basic products everyone used
in their everyday living. It is composed of shampoo and conditioner, soap, and
lotion. These products will be manufactured every day in order to attend all the
demand in the market (see table distribution channel). The proponent came up
with this project in her feasibility study because of her want to introduce products
that are non-toxic, healthy, and natural not only for the skin and hair but also for
the environment.
BNN Personal Care uses Banana Extract in particular because it is found
to be a good source of having a healthy and beautiful skin and hair. The other
natural ingredients incorporated in the products brought this to an even more
effective products.
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Project Summary
Market Study
The role of packaging has been becoming quite significant in order to get
consumers notice your product, the very reason why JE Naturals Co. has focused
on this section as part of their marketing strategy. BNN Personal Care products
will be put in a biodegradable and recyclable containers. Logo, benefits,
ingredients, directions on how to use it, contact no. and social media address for
concerns are all included in the packaging. Designs used are
Part of marketing strategy is to know who your competitors are. BNN being
a manufacturer of personal care products has a lot of competitors, both direct and
indirect. Direct competitors are those that also manufactures personal care that
are organic. While indirect competitors are those commercial products that are
common to the public. (See Table 3,4 &5)
The business adapted the cost-plus pricing method where all cost
attributable in making the products are added together plus a mark-up to arrive at
a certain price. The mark-up varies per product; for Shampoo and Conditioner in
a bottle (25%), Shampoo and Conditioner sachet (10%), Soap (45%) and Lotion
(50%). Price of each product will increase by 3% annually.
BNN’s advantages over its direct and indirect competitors are enough to
satisfy and attract customers. One of this major advantage over the others is its
ingredients, which are carefully selected to ensure a quality output. The products’
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prices are also an advantage because of it being lower than its indirect
competitors. The company believes that everyone, not only those who can afford,
can use a quality and very natural product at the same time at an average price.
BNN products will be available through wholesale and retail. By wholesale
(B2B), products will be delivered to the respective target business, this include but
not limited to salons and general merchandise stores. (See Table 6 and 7). On the
other hand, these products are available also to those who want to purchase
directly to the site (B2C). Mode of payment in wholesaling may be through cash or
credit terms while in retailing it is strictly to be in cash.
Advertisement plays also an important role for a company and products to
become known to the market. Because of a booming e-commerce and online
marketplace, where consumers can access a wide range of products from any part
of the world, the business created various account of social medias (see Figure 7).
This will allow customers to know more about what the business offers as well as
to enable them purchase through it, without any hassle. Products will be also
advertised through flyers, tarpaulins and free samplings to leave an image to the
customers’ minds. Contacts and linkages will also be developed for prospective
buyers and suppliers. For further promotional and advertising strategy the
business will participate in various local trade fair events around Rizal.
The business target market are those aging 13-79 years old. This is based
on both the survey and research conducted by the proponent wherein this group
of age are the most likely health conscious that they are willing to purchase
products that are made of natural ingredients.

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For the first five-year projection, consumers of the proposed products will
be from some towns in Rizal. These towns are Jala-jala, Pililla, Tanay, Baras,
Morong and Teresa. The business will extend their market to different towns in
Rizal like Antipolo, Cardona, Taytay, Angono, Binangonan and Cainta after five
years of operation.
Through further research and development, owners will be able to create
new ideas and produce more products that are also made from the main ingredient
banana extract or from other extract. Through this, the business will generate more
sales and create a name in the personal care industry.
Technical Study
BNN Personal Care is composed of four products. These are the shampoo,
conditioner, soap and lotion. These products are made of all natural ingredients
with its main ingredient banana extract.
BNN products has a lot of benefits given that it is natural. From its main
ingredient, banana, which is rich in anti-oxidants and other nutrients that everyone
might not know, can give better benefits to skin and hair other than using
commercial products. Other ingredients are shea butter, cocoa butter, essential
oils, carrier oils, and natural preservative which are all proven healthy and natural.
These ingredients are carefully selected due to its nature.
Since, these products are organic in nature it has to be infused with a
preservative. To retain the products as 100% natural, the proponent research
about a preservative that doesn’t contain chemicals. This preservative is called the
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Phytocide Elderberry, a natural botanical preservative. By adding this, life of the
personal care products BNN offers can last within 1-2 years.
The machines and other resources of the business will be able to produce
the projected demand every year. 33,325 bottles of Shampoo & Conditioner,
35,889 dozen of sachet of Shampoo & Conditioner, 36,621 pieces of Soap, and
29,297 bottles of Lotion will be produced for the first year of operation (see Table
30, 31, 32 & 33).
The business will operate 8 AM to 5 PM, a total of 8 hours per day, Monday
to Saturday.
The building is divided into several areas which are the production area,
storage room, laboratory room, office room, garage, comfort room and hallway.
Enough spaces are given to each area to make the daily operation effective and
efficient.
Utilities required are water, telecommunications and electricity which will be
supplied by Tanay Water District, MERALCO and PLDT, respectively.
The business will have a proper waste disposal and will be following the
local community’s rules and regulations when it comes to wastes. As well as the
regulations established by Department of Environment and Natural Resources
(DENR). Wastes will be disposed via municipality’s waste collection day. All
employees will also be taught of how to manage disposals.

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Management Study
The proposed project will be in the form of partnership, two individuals
contributing money to finance the operation of the business.
The business will be employing 13 workers including one of the partner,
Jhonalyn M. Galdones being both the General Manager and Accountant. The other
employees are the Sales Manager (1), Production Manager (1), Quality Control
Specialist (1), Machine Operator (2), Production Worker (2), Cashier (1), Delivery
Driver (1), Delivery Man (1), Utility Man (1) and Security Guard (1). All employees
will be paid according to their skills, nature of work and time spent in the factory.
There are also entitled for benefits like 13th month pay, SSS, Pag-IBIG and
PhilHealth.
The business will be keeping a daily time record to know whether
employees are present or absent. Close supervision will also be conducted every
day to ensure that everyone is doing their job.
Financial Study
The proposed project will be a partnership type of business where both
partner will be responsible for all the financial decisions of the business. Partners
are responsible for contribution of three million five hundred pesos (Php
3,500,000). The partnership agreement according to profit and loss will be equal.
The business will have an increasing and acceptable net income for the first
five years of operation. For 1st Year 1,115,012; 2nd Year 2,042,355; 3rd Year
3,194,581; 4th Year 4,803,558; 5th Year 6,350,591.

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The payback period for the investment is 3 years and 2 months and 11 days.
Socio-Economic Study
Sustaining the business’ life and earning profit are the starting point of how
a business could impact the society and the economy. Thus, the proponent will
exert lot of efforts and will devote time achieving those goals which in turn help the
whole province of Rizal generate employment. The business will also pay the right
amount of taxes as a contribution to the government. This payment of tax will
indirectly contribute to the public as this is used as funds of the government like
for education system.
The proposed project will serve as an inspiration to the next generations
who are dreaming of having their own business and creating products out of their
ideas and through research.
The business is also an environmentally friendly because it uses materials
that are not harmful, it doesn’t uses any chemicals that can destroy the natural
environment.
The business will help different foundation every year in Rizal. It will also
conduct seminars for people in Rizal teaching them how to establish their own
business.
Part of being responsible is complying with all the requirements needed in
establishing the business. Thus, the company ensured that they have all the
licenses to operate a business.

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Chapter 2
PROJECT BACKGROUND AND HISTORY
Project Background
The proponent wants to change the idea of many people about banana
being only as a fruit that is eaten, into a perspective, that this fruit can be the main
ingredient of our personal care products. Producing benefits as other commercial
products can give and in an even more natural way.
Banana, as everyone knows, contains a lot of vitamins that our body needs.
But aside from this, it is proven that it can be also a good source of having a healthy
hair and skin. The very reason why the proponent conceptualize the idea of
creating and introducing externally applied products using extract from banana.
Project Promoter
The promoter is Ms. Jhonalyn M. Galdones, residing in Brgy. Plaza Aldea,
Tanay, Rizal. As a proponent, she will invest money for the business, manage it
and assures that the business complies with certain rules and regulations in
concern with her chosen business and its location.

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Project History
History of Personal Care Products
People have wanted to look and feel attractive since the earliest days of
civilization. Many ancient societies stressed the importance of personal hygiene.
For example, Hindu texts, such as the Vishnu Purana and the Manusmritihad
detailed codes of hygiene. Archaeologists have found evidence of the use of
cosmetics as far back as ancient Egypt and Greece. The ancient Romans had
elaborate public bathhouses. Today, in our image-obsessed world, taking care of
one’s personal appearance and demonstrating good hygiene are extremely
important. Studies have shown that those who present a good personal image
have a better chance of success in life—from finding a life partner to landing a job.
The personal-care products industry aims to help people look better and
feel better about themselves. It creates, manufactures, and sells personal-care,
beauty, and hygiene products. Examples include cosmetics, toothpastes,
sunscreen, razors, shaving cream, deodorant, soaps and other products for
bathing, hair care products, skin care products, nail and cuticle care products,
fitness products (such as specialized running shoes and supports and braces), and
many other items. Products are sold in retail stores, door-to-door, by mail order,
and online.
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Feasibility Study
The feasibility study entitled “BNN Personal Care” is prepared by Jhonalyn
M. Galdones, a 4th year Bachelor of Science in Accountancy student, for the
ordering party, Mrs. Estela G. Pascual, CPA, MBA, Professor and Dean of the
College of Business and Accountancy. This study is done in partial fulfilment in the
requirements for the degree Bachelor of Science in Accountancy
Table 1
Cost of Preparatory Studies
Description Cost
Research and Internet 550
Folders, Envelopes and Papers 50
Printing 700
Photocopying 50
Bookbinding 400
TOTAL COST 1,750

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Table 2
BNN Personal Care
Projected Time Table
Activities July Aug. Sept. Oct. Nov. Dec. Jan.
Feasibility
Study
Registration
and Securing of
Business
Permits
Renovation of
Business
Premises
Acquisition of
Equipment and
Raw Materials
Hiring of
Employees
Start of
Business
Operations
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Chapter 3
MARKET STUDY
Business Logo
The logo depicts how the business’ wants for its customers to view what
kind of product they offer. Banana, at the center, signifies that products offered
by the proponent was her main ingredient and by just one look everyone can
recognize it being natural. The proponent believes that less is more, reason why
the logo is very simple. Being simple means purity of the products.
Figure 1
Business Logo
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Packaging
The business exert effort in designing the package because they believe
that one of the key factor in attracting customers and creating a brand is through
product packaging.
BNN personal care products will be put into biodegradable and recyclable
containers and boxes in order not to harm the environment. It will also serve as
protection of the products while in transit for distribution. All the information needed
by the potential buyers are included on it. These are the business’ logo, the
benefits, the ingredients used, and the directions on how the products should be
used, business’ contact number, social media accounts and linkages.
Figure 2
Shampoo Packaging (Bottle 180ml)

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Figure 3
Conditioner Packaging (Bottle 180ml)
Figure 4
Shampoo and Conditioner Packaging (Sachet 11ml)

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Figure 5
Soap Packaging (115g)
Figure 6
Lotion (200ml)
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Competition
The business direct competitors that offers almost the same and related
products and its indirect competitors are the following:
Table 3
BNN Shampoo & Conditioner Competitors
Direct Competitors Indirect Competitors
Naturals by Watsons Dove

Argan Oil Shampoo & Conditioner Palmolive
Novuhair Herbal Shampoo Sunsilk
Human Nature Clear
Palmers Olive Oil Organic Pantene
Creamsilk
Table 4
BNN Soap Competitors
Mestiza Safeguard
Carrot Soap Bioderm
Glutamansi Soap Silka
Human Nature Dove
All in One Soap Palmolive
Kojic
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Table 5
BNN Lotion Competitors
Cetaphil Nivea
Nature Republic Avon Lotions
Be Organic Lotions Vaseline
Cocoline Naturals Dove
Johnson
Competitive Advantages
The proponent include all the competitive advantage of its products. The
price of shampoo, conditioner, soap, and lotion are lower than its direct
competitors. All ingredients used in the products are free from hazardous chemical
that many commercial products (indirect competitors) offer, have its active main
ingredient, banana (extract), which everyone knows only for its flesh being eaten.
Banana, other than knowing it as a food itself, is proven to be effective in human
skin and hair producing a lot of vitamins such as Potassium, Vitamin B3,B5,B6,
Vitamin C, Zinc and more . Added with this, are all natural ingredients which made
the products even more effective and healthier. The packaging of the products are
sealed well, designs are made attractive to customers and the containers used are
eco-friendly. The business will deliver earlier than what is required to assure that
it will reach the customers on time.

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Marketing Strategies
Market is a critical aspect of building a business and marketing is the way
of introducing products to the market. BNN Personal Care will give discount to
those who’ll order in bulk. They will be given also products for testing to assure
that all cited benefits are true as well as its quality.
For the first three months as part of their promotional strategy, the business
will offer an all-in-one package where all BNN products are present at a price lower
than it should be (at a discount).
The business will also focus on how they will advertise their product to
encourage the market other than their prospective buyers to purchase the
products. Products will be known to the public through online advertising by
creating social media accounts like Facebook and Instagram which are among the
top applications used by many Filipinos. Flyers, tarpaulins and free samplings are
also part of the strategies. All the things a customer must know will be on the said
advertisement strategy for them to remember the products and the business.
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Figure 7
Website and Social Media Accounts

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Distribution Strategy
The business will be using channel to deliver the products. It will offer to the
customer through wholesale or retail. The business will acquire a delivery truck for
faster distribution of the products to the different towns in Rizal.
Manufacturer/Supplier
Wholesale/Retail
Customer
Figure 8
Distribution Channel
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Table 6
Distribution Channel (Jala-Jala, Pililla & Tanay)
Jala-Jala Pililla Tanay
Jala-Jala Public Market Bonjo’s Pharmacy and Gen. Merch. Tanay Public Market
Conel Minimart MEM General Merchandise Savemore Tanay
Mina Gracia Store Pillila Supermart Puregold Tanay
Vilma Store Mhy Groceries Thriftmart Tanay
Coney Mart One Stop Budget Mart Eastern Tanay
SSP Shane Store Watsons Tanay
Diane Drugstore Thale Drugstore Joy & Vista Groceries
Maria Beauty Salon Diana Beauty Salon Nini Raymundo Grocery Store
Ann Polanen Salon Leonora Salon Triple A Store
Erwin Store Miguel Store Gilbert Store
Realyn Hair & Beauty Salon Myra Beauty Salon John Well Rose Drugstore
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Table 7
Distribution Channel (Baras, Morong & Teresa)
Baras Morong Teresa
Budget Wise Supermart Savemore Morong Teresa Public Market
Baras Public Market ThriftMart Morong ThriftMart Teresa
Tokyo Salon Med Spa Wellness Center UNITOP
M & K Salon Loreto Ramos Grocery Ylen General Merchandise
Sonny Grocery Sto. Domingo Celestina Grocery Melojoy General Merchandise
Assenet Grocery Morong Drug and Gen. Merch. Raymund Drugstore
MRF Drugstore and Gen. Merch Morong Ceegel Pharmacy Corp. Jannet Drugstore
Anjie Pharmacy Duenas Beauty Salon Fixmeup Salon
KB Beauty Salon Noelle Unisex Salon Cut Encarnacion Group of Salon

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Table 8
Distribution Schedule
Monday Wednesday Friday

Tanay Morong Pililla
Baras Teresa Jala-jala
Figure 9
Distribution Route
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Supplier
The business will purchase materials once a month to its trusted suppliers.
Materials will be delivered in the business’ location to save time and other
unnecessary expenses.
Table 9
List of Suppliers
Supplier Address Products
Sarian Farm Teresa, Rizal Banana
2/F ARB #11 Don Jose

Essential Oils
ext. cor. Samonte Road,
Eunice Inc. Carrier Oils
Brgy. Holy Spirit, Diliman
Quezon City
Glycerin
1425 G. Araneta Avenue Tocopheryl Acetate
Alysons’ Enterprises. Inc. Quezon, City Metro Phenoxyethanol
Manila, Philippines Liquid Castile Soap
Pearl Powder
2110, Hilltop Road Shea Butter

Shea Butter Philippines kumintang Ibaba Cocoa Butter
Batangas, City Honey
Tanay Public Market,
Alkaline Water Distilled Water
Tanay, Rizal
Bottle
Unlipack Packaging 1514 Zamora St. Tondo,
Sachet
Philippines Manila
Soap Box
350 Tullahan Road, Sta.

Prime Worldwide Paper
Quiteria Caloocan City, Box
Packaging Corporation
Metro Manila, Philippines
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Target Market
The business’ target market are those aging 13-79 years old, male or
female. According to research conducted by Kantar Worldpanel, women found to
be more interested than men in using personal care products that are made of
natural ingredients, of these women, ages 25-34 constitute the highest percentage,
43%, said they preferred natural organic made products, while 38% at ages 13-
17, 39% at ages 18-24, at ages 35-49, 37% at ages 50-64 and 32% at ages 65+.
For the men, the least amount of interest came at ages 13-17 (20% preferred
personal care with natural/organic ingredients) and 65% (also a 20% preference),
while men ages 18-24 and 25-34 both showed 33% had a preference to personal
care products with natural/organic ingredients—the top level in men’s interest.
The products will be distributed in various market, stores, salons and
drugstores. The consumers of the products are some municipalities in Rizal. These
are the town of Jala-jala, Pililla, Tanay, Baras, Morong, and Teresa.
The target market of 32% of population is based on the survey conducted
by the proponent, this percentage is stable for the projected initial five years of the
business. While the percentage of the potential buyers is based on the estimation
of the expected buyers from those who has the capacity and interested to buy the
products. This percentage will increase 3.4% annually, this is based on the
research about the increasing demand for personal care product annually in the
Philippines.
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Demand
For the first year of operation of the business, the demand for the products
will only have minimal rate of customers but is highly probable that it will increase
annually as population grow.
Supply
The proponent carefully studied about supply. A supply analysis was
prepared in order to help the production and the management on deciding how
many products should produce to meet customers’ demand.
Pricing Strategy
BNN Personal Care products will be priced through cost-plus pricing
method. The cost of direct materials, direct labor and manufacturing overhead will
be added together to arrive at the total cost of each product plus a mark-up to
create a profit margin and it will also help to determine the price of each product.
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Table 10
Schedule of Costing (Shampoo)
ml/g per per 12 Total

Cost
unit units Cost
Distilled Water 30 360 Php 20/1000 ml 7.2
Liquid Castile Soap 115 1380 Php 300/1000ml 414
Glycerin 15 180 Php 250/1,000 ml 45
Vitamin E 1 12 Php150/50ml 36
Tea Tree Oil 1 12 Php 100/100ml 12
Essential Oils 1 12 Php 500/1000ml 5.4
Triethanolamine 3 36 Php 100/500ml 7.2
Pearl powder 8g 96 Php 230/1kg 22.08
Phytocide Elderberry 1 12 Php 1000/100ml 18
Banana Extract 40 480 Php 35/1L 16.8
Packaging 5 60 Php 4250/850pcs. 60
Total Direct Material Cost per 12 units of Shampoo (bottle) 643.68
Total Direct Material Cost per unit 53.64
Table 11
Schedule of Costing (Shampoo)
ml/g per per 12 Total

Cost
unit units Cost
Distilled Water 1.8 21.6 Php 20/1000 ml 0.432
Liquid Castile Soap 7 84 Php 300/1000ml 25.2
Glycerin 0.9 10.8 Php 250/1,000 ml 2.7
Vitamin E 0.07 0.84 Php150/50ml 2.52
Tea Tree Oil 0.07 0.84 Php 100/100ml 0.84
Essential Oils 0.07 0.84 Php 500/1000ml 0.42
Triethanolamine 0.25 3 Php 100/500ml 0.6
Pearl powder 0.6 7.2 Php 230/1kg 1.656
Phytocide Elderberry 0.07 0.84 Php 150/100ml 1.68
Packaging 0.75 9 9
Total Direct Material per dozen of Shampoo (sachet) 46.31
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Table 12
Schedule of Costing (Conditioner)
g/ml per per 12 Total

unit units Cost Cost
Shea Butter 150 1800 Php 250/1kg 450
Vitamin E 1 12 Php 150/50ml 36
Coconut Oil 76 912 Php 250/1000g 228
Essential Oils 2 24 Php 500/1000ml 8.4
Packaging 5 60 Php 4250/850pcs. 60
Total Direct Material per unit of Conditioner (bottle) 813
Total Direct Material Cost per unit 67.75
Table 13
Schedule of Costing (Conditioner)

Cost
unit units Cost
Shea Butter 9.375 112.5 Php 250/1kg 28.125
Vitamin E 0.07 0.84 Php 150/50ml 2.52
Coconut Oil 4.75 57 Php 250/1000g 14.25
Essential Oils 0.125 1.5 Php 500/1000ml 0.75
Phytocide Elderberry 0.08 0.96 Php 150/100ml 1.44
Banana Extract 1.875 22.5 Php 35/1L 0.7875
Packaging 0.75 9 Php 9
Total Direct Material per dozen of Conditioner (sachet) 56.87
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Table 14
Schedule of Costing (Soap)

Cost
unit units Cost
Distilled Water 75 1800 Php 20/1000ml 36
Lye 100 2400 Php 1800/25kg 172.8
Honey 2 48 Php 500/1000ml 24
Coconut Oil 4 96 Php 250/1000ml 24
Essential Oils 1 24 Php 500/1000ml 12
Packaging 1.25 30 Php 1250/1000pcs. 30
Total Direct Material per 24 units of Soap 368.40
Total Direct Material per unit 15.35
Table 15
Schedule of Costing (Lotion)
g/ml per per 12 Cost Total

unit units Cost
Shea Butter 75 900 Php 250/1kg 225
Cocoa Butter 75 900 Php 250/1kg 225
Coconut Oil 75 900 Php 250/1000g 225
Almond Oil 20 240 Php 250/1000ml 60
Vitamin E 1 12 Php 150/50ml 36
Essential Oils 0.5 6 Php 500/1000ml 3
Honey 1 12 Php 500/1000ml 6
Phenoxyethanol 1 12 Php 150/100ml 18
Packaging 5 60 Php 1250/850pcs. 18.75
Total Direct Material Cost per 12 units of Lotion 870.60
Total Direct Material per unit 72.55
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Notes and Assumptions:
1. Cost of raw materials are computed by multiplying the amount needed in
the products with the price of materials.
2. Amount of raw materials used in the products may vary due to different
amounts of solid/liquid component being added to it.
Table 16
Pricing Strategy
Direct Direct Overhead Total Mark- Selling

Material Labor Cost Cost up (%) Price
BNN Shampoo
53.64 3 6 62.64 55% 78
(Bottle 180ml)
BNN Shampoo
(Sachet 46.31 3 6 55.31 10% 61
11ml/dozen)
BNN
Conditioner 67.75 3 6 76.75 25% 96
(Bottle 180ml)
BNN
Conditioner
56.87 3 6 65.87 10% 72
(Sachet
11ml/dozen)
BNN Soap
15.35 3 6 24.35 45% 35
120 g
BNN Lotion
72.55 3 6 81.55 50% 122
200 ml
32
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Table 17
Projected Population for 5 Years
Base Growth Year Year Year Year Year Year Year

Municipal
Year Rate 2017 2018 2019 2020 2021 2022 2023
Jala-Jala 32,254 2.97% 34,198 35,214 36,260 37,337 38,446 39,588 40,763
Pililla 64,812 3.63% 69,603 72,129 74,748 77,461 80,273 83,187 86,206
Tanay 117,830 2.65% 124,158 127,448 130,825 134,292 137,851 141,504 145,254
Baras 69,300 3.55% 74,308 76,946 79,677 82,506 85,435 88,468 91,608
Morong 58,118 2.44% 60,989 62,477 64,001 65,563 67,163 68,801 70,480
Teresa 57,755 3.93% 62,384 64,835 67,383 70,032 72,784 75,644 78,617
Total
400,069 425,639 439,049 452,895 467,192 481,951 497,191 512,929
Population
1. Population is based on 2015 Census of Population multiplied by the annual growth rate to arrive at 2019 total
population.
2. Growth Rate of the population is with respect to each municipality.

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Table 18
Population by Age
Age Distribution Total
0-9 years 600,378
10-19 years 575,608
20-29 years 524,057
30-39 years 444,017
40-49 years 335,354
50-59 years 225,902
60-69 years 124,287
70-79 years 41,887
80+ years 12,737
All ages 2,884,227
Target Market Rate (2,127,210/2,884,227) 74%

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Table 19
Projected Population for 5 years (Age Group 13-79)
Population
Base Growth
Municipal (Base Year 1 Year 2 Year 3 Year 4 Year 5
Year Rate
year*74%)
Jala-Jala 35,214 26,058 2.97% 26,832 27,629 28,450 29,295 30,165
Pililla 72,129 53,376 3.63% 55,313 57,321 59,402 61,558 63,793
Tanay 127,448 94,311 2.65% 96,811 99,376 102,010 104,713 107,488
Baras 76,946 56,940 3.55% 58,961 61,054 63,222 65,466 67,790
Morong 62,477 46,233 2.44% 47,361 48,517 49,700 50,913 52,155
Teresa 64,835 47,978 3.93% 49,864 51,823 53,860 55,977 58,177
Total Population 439,049 324,896 335,142 345,721 356,643 367,922 379,567
Note and Assumption:
1. Base year is multiplied by 74%, which is the proportion of age group of the target market ages 13-79 to
come up with the total market.

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Table 20
Projected Potential Buyer
Year 1 Year 2 Year 3 Year 4 Year 5
Total Population 335,142 345,721 356,643 367,922 379,567
Percentage of the Target

32% 32% 32% 32% 32%
Market
Projected Target Market 107,245 110,631 114,126 117,735 121,462

Percentage of Potential
10% 13.4% 16.8% 20.2% 23.6%
Buyers
Projected Potential
10,725 14,825 19,173 23,782 28,665
Buyers
1. The target market is 32% of population. The rate used is based on the survey conducted by the proponent
with regards to their willingness and possibility in buying the products.
2. The % of Potential Buyers are estimations of the expected buyers from those who have the capacity to buy,
and those with stable income that are interested in buying the products.
37
Table 21
Projected Potential Buyer per Product
% of
Demand
Shampoo & Conditioner 35% 3,754 5,189 6,711 8,324 10,033
Soap 25% 2,681 3,706 4,793 5,946 7,166
Lotion 40% 4,290 5,930 7,669 9,513 11,466
1. % of Demand is based on the survey regarding about what they would most likely to purchase among
products offered.
2. Projected Potential Buyer per Product is computed by multiplying Total Projected Potential Buyer per Year
with the % of Demand per Product.

38
Table 22
Specific Projected Demand for Bottles and Sachet (Shampoo & Conditioner)
Projected Potential Buyers 3,754 5,189 6,711 8,324 10,033
Percentage for the Bottles 65% 65% 65% 65% 65%

Projected Demand for the
2,440 3,373 4,362 5,411 6,521
Bottles
Percentage for the Sachet 35% 35% 35% 35% 35%
Projected Demand for the
1,314 1,816 2,349 2,913 3,511
Sachets
1. Percentage for the Bottle (65%) and Percentage for the Sachet (35%) are based on the survey regarding
about in what volume they buy personal care products.
2. Projected demands for the bottle and sachet are computed by multiplying Projected Potential Buyers with
their respective percentage.

39
Table 23
Projected Demand for Shampoo & Conditioner
Demand (Bottles 180ml) 2,440 3,373 4,362 5,411 6,521
Consumption Per Year 12 12 12 12 12
Total Projected Demand 29,278 40,471 52,343 64,926 78,255
Demand (11ml) 1,314 1,816 2,349 2,913 3,511
Consumption per Year 24 24 24 24 24
1. The consumption per year is 12 bottles. The potential buyers have a capacity to purchase 12 pieces in one
year.
2. The consumption per year is 24 dozen of sachet in a year.

40
Table 24
Projected Demand for Soap
Demand (120g) 2,681 3,706 4,793 5,946 7,166
1. The consumption per year is 12 pieces.

41
Table 25
Projected Demand for Lotion
Demand (200ml) 4,290 5,930 7,669 9,513 11,466
1. The consumption per year is 6 bottles. Potential buyers will buy 6 pieces of lotion in one year.
42
Table 26
Projected Sales for 5 Years (Shampoo)

Projected Demand
14,639 20,235 26,171 32,463 39,128
(Bottle 180ml)
Price per Bottle 78 81 83 86 88
Projected Sales for

1,146,234 1,631,969 2,174,014 2,777,556 3,448,214
Bottle
Projected Demand
15,765 21,792 28,185 34,960 42,137
(Sachet 11ml)
Price per Sachet 61 63 65 66 68

Projected Sales for
959,129 1,365,574 1,819,139 2,324,162 2,885,345
Sachet
Table 27
Projected Sales for 5 Years (Conditioner)

Projected Demand
14,639 20,235 26,171 32,463 39,128
(Bottle 180ml)
Price per Bottle 96 99 102 105 108
Projected Sales for

1,404,430 1,999,579 2,663,723 3,403,216 4,224,943
Bottle
Projected Demand
15,765 21,792 28,185 34,960 42,137
(Sachet 12 ml)
Price per Sachet 72 75 77 79 82
Projected Sales for

1,142,334 1,626,416 2,166,617 2,768,105 3,436,481
Sachet
43
Table 28
Projected Sales for 5 Years (Soap)

Projected Demand
32,174 44,474 57,519 71,347 85,995
(115g)
Price per Unit 35 36 37 39 40
Projected Sales for

1,135,971 1,617,356 2,154,548 2,752,686 3,417,339
Soap
Table 29
Projected Sales for 5 Years (Lotion)

Projected Demand
25,739 35,579 46,016 57,078 68,796
(200ml)
Price per Unit 122 126 130 134 138
Projected Sales for

3,148,512 4,482,743 5,971,651 7,629,479 9,471,663
Lotion
44
Chapter 4
TECHNICAL STUDY
Products Offered
BNN Personal Care is composed of four (4) different but related products,
these are the BNN Shampoo, BNN Conditioner, BNN Soap and BNN Lotion. These
products are made of banana extract and other natural ingredients. Banana, aside
from it being a food, also gives a lot of benefits for nourishing skin and hair with all
the nutrients it has. To make it even better, these products are infused with some
natural ingredients such as essential oils, carrier oils, shea and cocoa butter, and
preservatives.
The Shampoo and Conditioner will be available in sachet (11ml) and in
bottle (180ml) while Soap will be available in 120g and Lotion in a bottle (200ml).
Products’ Benefits
Banana is one of the most widely consumed fruits in the world. It is rich in
antioxidants and other nutrients such as potassium, sodium, vitamins (A,B3,B5,B6
and C), magnesium, zinc, amino acid and fiber. Some of these nutrients are good
for skin and hair when applying externally. Added with this main ingredient are
other natural ingredients that are safe and can also give nutrients that the skin and
hair needs.
45
1. Benefits for the Skin - Potassium hydrates and moisturizes dehydrated
skin. B-vitamins protect against free radicals that cause oxidative stress and
premature aging. Vitamin A heals dry and withered skin, fades acne scars
and dark spots. Zinc fights acne causing germs. Vitamin C that is necessary
for the production of collagen for skin oil control. Lectin destroys bacteria
that cause acne and pimples. And amino acid which nourishes the skin and
helps maintain skin elasticity and strength.
Aside from what banana can do to skin, BNN soap and lotion are added
with essential oils, carrier oils, shea and cocoa butter, and natural
preservatives. Essential oils which has the ability to fight pathogens that are
responsible for dermatological infections, can calm irritated skin, and can
even help improve inflammatory skin conditions like eczema. Carrier oils on
the other hand, are a great source fat-soluble vitamins, minerals and
antioxidants. One of the most used carrier oil in BNN products is Vitamin E
oil which protects skin from UV damage, slows down the process of aging
and fights free radical damage to skin cells. Shea and Cocoa Butter, as also
part of the ingredients, help improve skin tone and promote collagen
production. Aside from these, each has skin healing benefits such as
reducing acne scars and each can protect the skin from damaging caused
by the environment. Lastly, is the safe and natural preservatives, which are
the Phytocide Elderberry and Vitamin E which help the products prolong its
life.
46
2. Benefits for the Hair – With all the nutrients banana contains it has also a
lot of benefits for the hair. Bananas are good for hair and scalp, it improves
manageability and shine of the hair, it can also prevent and control dandruff
and moisturize scalp. Bananas are rich in potassium natural oils,
carbohydrates and vitamins enough to soften the hair and protect the hair’s
natural elasticity, preventing split ends and breakage.
In making the shampoo even better it was added with other ingredients
including pure liquid castile soap which are not utilize by commercial
shampoos as surfactant. Instead, it typically uses sulfates which are not
necessarily good for the hair. Liquid castile soap doesn’t contain any
detergents that can strip the hair or scalp. Using this will make the hair clean
and soft and it has been found to be good for all hair types, but can be
especially beneficial for thick or dry hair.
Another ingredient in the shampoo is the glycerine, a natural humectant,
which is very beneficial in the treatment of dry hair and dry scalp problems.
Essential oils, Vitamin E and Tea Tree Oils are also part of the ingredients
which are the best for maintaining hair growth, unclog hair follicles, nourish
roots and give fragrance to the hair. Since the shampoo contains water it
should be preserved to prolong the life of the product, thus, a natural
preservative is also used.
Another product of BNN is its natural conditioner, which are also added with
shea butter (which keep moisturizing the hair and increase its softness),
47
coconut oil (for faster hair growth), Vitamin E, and Essential oils which aside
from giving nourish to hair it also give fragrance to it.
Product Storage and Shelf
BNN products used extract from banana thus, it has to be preserved to
prolong its life. Typically, personal care products used chemical preservatives but
in order to retain the BNN Personal Care as natural as possible it used a
preservative that is 100% natural. This preservative is called the Phytocide
Elderberry, a natural botanical preservative that is widely used in cosmetics and
beauty products. This inhibit the growth of bacteria, yeast or mold. By adding this
preservative products can have a longer life. It is estimated that the life of all BNN
Personal Care products can last for 1-2 years.
Production Capacity
The business selected machines that are able to produce the target demand
plus the desired inventory each year.
Blending tank machine has a maximum loading capacity of 20,000 ml-
50,000 ml per day. Soap cutting machine can cut 1,500 pieces of soap in an hour.
Bottling and filling machine can produce 15,000 bottles a day. Sachet packing
machine can produce 20,000 pieces in a day. Labelling machine can label 15,000
bottles/sachets a day. Soap wrapping machine can produce 10,000 of labelled and
wrapped soap in a day. These capacities able the business to produce all of its
products every day and are enough to produce the target demand and the desired
inventory every year.

48
The production capacity depends on the projected demand to be supplied
to different markets in Rizal. The proponent assumed 10% desired ending
inventory of next year projected demand to determine the number of units to be
produced for the respective years. For the first year of operation the business will
be able to produce 116 bottles of Shampoo & Conditioner, 125 dozen of sachets
of Shampoo & Conditioner, 127 pieces of Soap and 102 bottles of Lotion.
Production will increase annually as the demand per product increase.
Table 30
Projected Production for Shampoo & Conditioner (Bottle)

Projected Sales in
29,278 40,471 52,343 64,926 78,255
Units
Add: Desired
4,047 5,234 6,493 7,826 8,608
Ending Inventory
Total Needed 33,325 45,705 58,835 72,752 86,863
Less: Beginning
4,047 5,234 6,493 7,826
Inventory
Units to be
33,325 41,658 53,601 66,259 79,038
produced
49
Table 31
Projected Production for Shampoo & Conditioner (Sachet)

Projected Sales in Units 31,530 43,584 56,369 69,920 84,275
Add: Desired Ending
4,358 5,636 6,992 8,427 9,270
Inventory
Total Needed 35,888 49,220 63,361 78,347 93,545
Less: Beginning Inventory 4,358 5,636 6,992 8,427
Units to be produced 35,889 44,863 57,724 71,356 85,118
Table 32
Projected Production for Soap

Add: Desired Ending
4,447 5,752 7,135 8,599 9,459
Inventory
Total Needed 36,621 50,225 64,654 79,947 95,454
Table 33
Projected Production for Lotion

Add: Desired Ending
3,558 4,602 5,708 6,880 7,568
Inventory
Total Needed 29,297 40,180 51,723 63,957 76,363
50
Table 34
List of Raw Materials and its cost
Materials Price
Distilled Water Php 20/1L
Liquid Castile Soap Php 300/1L
Shea Butter Php 250/1kg
Cocoa Butter Php 250/1kg
Lye Php 60/1kg
Glycerin Php 250/1L
Esssential Oils Php 500/1L
Tea Tree Oil Php 100/100ml
Coconut Oil Php 250/1L/1kg
Vitamin E Php 150/50ml

Almond Oil Php 250/1L
Honey Php 500/1L
Phytocide Elderberry Php 1000/0.5L

Trithanolamine Php 200/1L
Pearl Powder Php 230/1kg
Amylase Php750/1kg
Banana Extract Php 30/1L
Bottle Php 4250/850pcs.
Sachet Php750/1000dozen
Soap Box Php 1250/1000pcs.

51
Weighing and
Measuring of Raw
Materials
Place and incorporate all the Raw

Materials in the blending tank
machine. Mix all the ingredients
until it becomes ready
Placing the mixture

in a storage tank
Filling the bottles and

sachets with shampoo
and conditioner
Packaging, Labelling
and Storing
Figure 10
Production Process (Shampoo & Conditioner)

52
Preparing Raw Materials
Weighing and Measuring

of Raw Materials
Place all of the Raw Materials in

the blending tank machine. Mix all
the ingredients until the mixture
becomes thick.
Allow the soap to stay in the mold

for 12-24 hours. Unmold, place to
soap cutting machine and cure for
4-6 weeks.
Packaging, Labelling and

Storing
Figure 11
Production Process (Soap)

53
Weighing and Measuring

Raw Materials
Place and incorporate all Raw

Materials in blending tank
machine. Mix all the ingredients
until it becomes ready
Placing the mixture in the

storage tank
Filling the bottles with

lotion
Packaging, Labelling
and Storing
Figure 12
Production Process (Lotion)

54
55
Table 35
Machineries and Equipment
Machineries & Total

Description Qty. Unit Price
Equipment Price
Standard Sieve
Used for extracting

2 4,475 8,950
juice from banana
Blending Tank
Machine
Used for mixing all

2 150,000 300,000
the raw materials
Soap Cutting
Machine
Used for soap

1 120,000 120,000
cutting
Bottling Machine
Use for filling the

bottle with the 1 420,000 420,000
product
56
Sachet Packing
Machine
Used for
packaging sachet 1 125,000 125.000
products
Storage Tank
Used for storing

2 100,000 200,000
the products
Labelling Machine
Used for labelling

1 285,000 285,000
the products
Soap Wrapping
Machine
Used for wrapping

1 150,000 150,000
the soap
Laboratory Table
Used for preparing
raw materials
1 7,500 7,500
needed to
production
57
Weighing Scale
Used for
measuring raw 2 5,000 10,000
materials
pH Meter
Used for
measuring the
hydrogen-ion 1 4,000 4,000
activity in water
based solutions
Freezer
Used for storing. 1 30,000 30,000
Electric Stove
Used for melting

3 2,000 6,000
the products
Double Boiler
Used for
extracting juice 2 3,600 7,200
from banana
58
Soap Curing Rack
Used for curing

the soap
necessary for 2 1,000 2,000
soap making
process
Rack and Shelves
Used for storing

4 1,000 4,000
finished products
Steel Cart
Used for placing

and moving
4 1,000 4,000
different tools and
products
Sous Vide
Used for
extracting juice 2 3,960 7,920
from banana
Aircon
Used to provide
2 30,900 61,800
ventilation
59
Computer
Used to record
transaction and for 2 12,000 24,000
communication
Printer
Used for printing
necessary
1 4,000 4,000
documents of the
business
Telephone
Used for
communicating to
1 1,500 1,500
customers and
suppliers
CCTV
Used for security 3 1,500 4,500
Total 2,099,220
60
Table 36
Furniture & Fixtures
Total
Furniture & Fixtures Description Qty. Unit Price
Price
Office table & chair
Used by the
manager and the 1 5,000 5,000
accountant
Conference table &

chairs
Used by the
business’
1 10,000 10,000
customers and
employees
Total 15,000
61
Table 37
Production Supplies
Total
Supplies Description Qty. Unit Price
Price
Large Measuring
Cups
Used for
measuring raw
5 165 825
materials needed
for production
Transparent
Container
Used for
extracting juice 2 500 1,000
from banana
Bag Containers
Used for
extracting juice 580 10 5,800
from banana
Gloves
Used for safety
and sanitation of
the production
15 100 1,500
workers
62
Face Mask
Used for safety

15 85 1,275
and sanitation of
the production
workers
Apron
Used for safety

and sanitation of
7 70 490
the production
workers
Hairnet
Used for safety

and sanitation of
7 20 140
the production
workers
Box
Used for
packaging 4,670 30 140,100
wholesale
Total 155,130
63
Table 38
Office & Maintenance Supplies
Office and Maintenance Description Qty. Unit Total

Supplies Price Price
Bond Paper
Used for the

5 180 900
office
Ballpen
Used for the

2 150 300
office
Log Book
Used for
recording and
3 45 135
tracking events
in the workplace
Folders
Used for file

20 12 240
keeping
64
Mop
Used for
2 320 640
cleaning
Broom & Dustpan
Used for
2 100 200
cleaning
Fluorescent and Bulb

Light Used for lighting
the workplace
6 250 1,500
Trash Cans
Used for
garbage 2 1,500 3,000
collection
Fire Extinguisher
Used for fire

2 150 300
emergency
Total 7,215
65
Table 39
Vehicle
Total
Vehicle Description Qty. Unit Price
Price
Delivery Vehicle
Used for the

delivery of
finished goods to 1 600,000 600,000
respective
customers
Total 600,000
66
Business Hours
The business facility will be operating its day-to-day operations from
Monday to Saturday. Operations and manufacturing of the products will start at
8:00 AM to 5:00 PM, a total of 8 hours a day.
Business Location
The business will be located at Sampaloc Rd. Brgy. Plaza, Aldea near
around the establishments of Tanay, Rizal. It will be a 400 sqm. land with a building
on it enough to accommodate all the equipment, production area and the
administration office. The building will be subject to renovation. The business
estimation for this renovation is Php 1,850,000 (see Table 44).
The building is divided into several areas which are the production area,
storage room, laboratory room, office room, garage, comfort room and hallway.
Production place constitute the widest area because it is where manufacturing of
the products happen. Laboratory and office room have enough space to enable
workers access the place easily. Office room has also enough space for the
owners, for meetings and clients. Hallway is made wider for finished products to
be easily walked out the premises and also serve as an option way for delivered
raw materials. Comfort room is divided in to two which is for men and women.
The location is really an advantage because electricity and water are
available and it would be accessible to its target market.

67
68
Figure 13
Floorplan
69
Figure 14
Rizal Map
70
Figure 15
Location Map
71
Figure 16
Satellite
72
73
Utilities
The electricity will be provided by the Manila Electric Company
(MERALCO) for the power needs by the business on its day-to-day operation.
The water will be provided by Tanay Water District for the water supply
necessary as well, on its daily operation.
Internet Communication
The internet and telephone service will be provided by PLDT in Tanay. It
will be used for communicating to suppliers, dealers and customers regarding
about the business.
Waste Disposal
The business will have a proper waste disposal by means of segregating
the waste into biodegradable and non-biodegradable. All waste will be disposed
immediately to prevent it to be stuck up. All employees will be taught proper waste
disposal and cleaning their respective area to keep the surroundings safe.
Since the business uses banana as its main ingredient, all peels of it will be
given to the farmers and gardeners in Tanay to make it a fertilizer for their plants.
74
Chapter 5
MANAGEMENT STUDY
Form of Business Organization
BNN Personal Care is a partnership business between Jhonalyn M.
Galdones who will also act as the manager and accountant and Edna Rona T.
Montimor as a capitalist partner. Each has contributed money to cover all costs
necessary for its operation. All employees are entitled to a monthly salary with
respect to their work and duties.
General Partnership
Jhonalyn M. Galdones Edna Rona T. Montimor
Figure 17
Partnership Structure
75
Manpower Requirement
The employees will compensate according to their job and position and
the time they spend in the factory. There would be a daily time record in order to
monitor employees. The number of employees is 13 including the owner. The
General Manager and Accountant (1), Production Manager (1), Machine Operator
(2), Production Worker (2), Quality Control Specialist (1), Sales Manager (1),
Cashier (1), Delivery Driver (1), Delivery Man (1), Utility Man (1), and Security
Guard (1).
Table 40
Manpower Requirement
DUTIES AND NO. OF

POSITION QUALIFICATION
RESPONSIBILITIES EMPLOYEES
General - - Participate in Decision
Manager & Making
Accountant - Assign in monitoring all
the employees, in
1
production, in
distributing, and in
manufacturing of the
products
76
- Manage and Supervise
financial transactions of
the Company
Sales -Male or Female - Manage and Achieve
Manager -25-35 years old sales target that
-Must be a generates high revenue
bachelor degree - Maintains and

1
holder of BSBA Improves company-client
major in relationship
Marketing - Participate in Decision
Making
Production -Male or Female - Manage production
Manager -25-35 years old process of the business
-Must be a - Responsible for training
bachelor degree and disciplining

1
holder and a production workers
licensed
Industrial
Engineer
Machine -Male - Responsible for
Operator -25-35 years old machine and equipment

2
-Finish any set up
course related to
77
Heavy Machine - Operate the
Operating machineries and
- Have atleast 2 equipment during
years of work production time
experience
Quality -Male or Female - Responsible for
Control -25-35 years old inspection of products
Specialist -Must be a - Making sure the

1
graduate of BS in product’s quality and it’s
Medical in good condition
Laboratory
Cashier - Male or - Responsible for
Female handling cash.
- 20-35 - Responsible for
Years old collection of cash
- Atleast and other
high receivables from

1
school customers.
graduate - Responsible for
reporting on hand
cash to the
general manager/
accountant
78
Production -Male or Female - Responsible for putting
Worker -25-35 years old Raw Materials in
-Must be atleast a Machine
high school - Responsible for
graduate monitoring the products
- (Priority) Have while in process

2
atleast 1 year of - Responsible for putting
work experience the products in boxes
in a - Responsible for
manufacturing checking the products if
company there’s any physical
defects
Delivery -Male - Responsible for
Driver -25-40 years old delivering the products
- Must be a high safely to its destination
school graduate 1
-Must have a
professional
driver’s license
Delivery Man -Male - Responsible for
-25-40 years old bringing the products to 1
other business’ premises

79
-Must be a high
school graduate
-Good in
communication
-Physically Fit
Utility Man - Responsible for

-Male or Female
keeping the whole 1
-25-40 years old
premises clean.
Security -Male - Responsible for
Guard -25-35 years old securing the safety of

1
-Must have a the business
license
Total
Employees 13
80
General Manager
& Accountant
Production
Manager Sales Manager
Utility Man
Machine
Security Guard Operator Cashier
Production Delivery
Worker Driver
Quality Control Delivery

Specialist Man
Figure 18
Organizational Structure
81
Legal Requirements
The proponent must consider the legal requirements when starting the
business. The business secured all the necessary permits of the business.
Table 41
Legal Requirements
Required Permit Cost
Registration to SEC
7,000.00
BFAD Registration
21,800.00
Bureau of Internal Revenue
620.00
Registration
Building Permit
4,000.00
Mayor’s Business Permit
300.00
Barangay Business Permit
300.00
Sanitary Permit
120.00
Total
34,140.00
82
Chapter 6
FINANCIAL STUDY
Initial Capital Requirement
The investment capital will come from the contribution of the partners. They
are to contribute three million five hundred thousand pesos (Php 3,500,000) each
for their initial capital contribution. The partnership profit and loss ratio is 50:50.
Table 42
Partners’ Contribution
Partners Profit and Loss Ratio Contribution
Jhonalyn M. Galdones 50% 3,500,000
Edna Rona T. Montimor 50% 3,500,000
Total 100% 7,000,000

83
Table 43
Initial Projected Cost
Total Projected Cost
Land 1,200,000
Building 1,850,000
1,799,220
Machineries and Equipment
15,000
Furniture and Fixtures
162,345
Supplies
600,000
Delivery Vehicle
Pre-operating Expenses:
Pre-Investment Study 1,750
Legal Requirements 34,140
Recruitment and Training of Employee 15,000
Advertising and Promotional Activities 70,000 120,890
Total Initial Projected Cost 5,747,455

84
Table 44
Cost of the New Building
Materials 1,250,000
Labor 250,000
Other expenses 50,000
Cost of the Renovation 1,550,000
Add: Cost of the Building 300,000
Total Cost of the New Building 1,850,000

85
Table 45
Blank Company
Projected Income Statement
For the Year Ended December 31, 2019-2023

Sales 8,936,610 12,723,637 16,949,691 21,655,203 26,883,985
Cost of Goods Sold 5,298,724 7,871,961 10,408,584 12,817,777 15,772,606
Gross Income 3,637,885 4,851,676 6,541,107 8,837,426 11,111,379
Less: Pre-Operating Expenses 120,890 - - - -
Salaries Expense 878,400 878,400 922,320 922,320 968,436
Supplies Expense 162,345 170,462 178,985 187,935 197,331
Benefit Contribution 154,619 154,619 161,290 161,290 169,124
13th Month Pay 133,440 133,440 140,112 140,112 147,118
Depreciation Expenses 135,000 135,000 135,000 135,000 135,000
Audit Fee 72,000 72,000 72,000 72,000 72,000
Advertising Expense 150,000 120,000 96,000 76,800 61,440
Personnel Training and Development 30,000 27,000 24,300 21,870 19,683
Insurance Expense 70,000 70,000 70,000 70,000 70,000
Gasoline Expense 50,000 52,500 55,125 57,881 60,775
Utilities Expense 34,318 36,033 37,835 39,727 41,713
Repairs and Maintenance 24,000 25,200 26,460 27,783 29,172
Miscellaneous Expense 30,000 31,500 33,075 34,729 36,465
Doubtful Account Expense - 27,872 24,917 27,754 30,849
Total Operating Expenses 2,045,011 1,934,026 1,977,420 1,975,200 2,039,107
Income from Operation 1,592,874 2,917,650 4,563,687 6,862,226 9,072,273
Less: Provision for Income Tax 477,862 875,295 1,369,106 2,058,668 2,721,682
Net Income 1,115,012 2,042,355 3,194,581 4,803,558 6,350,591
86
Table 46
Blank Company
Projected Statement of Financial Position
December 31, 2019-2023

Current Assets:
Cash 1,267,861 3,137,009 6,139,518 10,522,802 14,641,272
Accounts Receivable 848,978 1,378,541 1,851,970 2,379,288 2,965,427
Inventories 1,832,299 2,576,798 3,419,294 4,216,086 5,216,444
Total Current Assets 3,949,138 7,092,348 11,410,782 17,118,177 22,823,143
Non-current Assets:
Land 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Building, net 1,757,500 1,665,000 1,572,500 1,480,000 1,387,500
Machineries and Equiment, net 1,518,233 1,237,246 956,259 675,273 394,286
Vehicle, net 560,000 520,000 480,000 440,000 400,000
Furniture & Fixtures, net 12,500 10,000 7,500 5,000 2,500
Total Non-current Assets 5,048,233 4,632,246 4,216,259 3,800,273 3,384,286
TOTAL ASSETS 8,997,372 11,724,594 15,627,041 20,918,449 26,207,429
Liabilities:
VAT Payable 404,498 691,933 905,987 1,204,275 1,479,650
Income Tax Payable 477,862 875,295 1,369,106 2,058,668 2,721,682
Total Liabilities 882,360 1,567,228 2,275,094 3,262,943 4,201,332
Partner's Equity:
Galdones Capital 4,057,506 5,078,683 6,675,974 8,827,753 11,003,048
Montimor Capital 4,057,506 5,078,683 6,675,974 8,827,753 11,003,048
Total Partner’s Equity 8,115,012 10,157,367 13,351,948 17,655,506 22,006,097
TOTAL LIABILITIES AND PARTNER'S EQUITY 8,997,372 11,724,594 15,627,041 20,918,449 26,207,429
87
Table 47
Blank Company
Projected Statement of Partner’s Equity
Jhonalyn M. Galdones
Investment 3,500,000 4,057,506 5,078,683 6,675,974 8,827,753
Less: Withdrawal - - 250,000 1,000,000
Add: Share in Net Income (Loss) 557,506 1,021,177 1,597,291 2,401,779 3,175,295
Balance 4,057,506 5,078,683 6,675,974 8,827,753 11,003,048
Edna Rona T. Montimor

Investment 3,500,000 4,057,506 5,078,683 6,675,974 8,827,753
Withdrawal - 250,000 1,000,000
Add: Share in Net Income (Loss) 557,506 1,021,177 1,597,291 2,401,779 3,175,295
Balance 4,057,506 5,078,683 6,675,974 8,827,753 11,003,048

88
Table 48
Blank Company
Projected Statement of Cash Flows

Cash Flow from Operating Activities
Net Income 1,115,012 2,042,355 3,194,581 4,803,558 6,350,591
Add: Depreciation Expense 415,987 415,987 415,987 415,987 415,987
(Increase) Decrease in Accounts Receivable -848,978 -529,563 -473,429 -527,319 -586,139
(Increase) Decrease in Inventories -1,832,299 -744,498 -842,497 -796,791 -1,000,358
(Increase) Decrease in VAT Payable 404,498 287,435 214,055 298,288 275,375
(Increase) Decrease in Income Tax Payable 477,862 397,433 493,811 689,562 663,014
Cash Flow provided (used) by Operating Activities -267,919 1,869,148 3,002,509 4,883,285 6,118,470
Cash Flow from Investing Activities
Acquisition of Land -1,200,000
Acquisition of Building -1,850,000
Acquisition of Machineries and Equipment -1,799,220
Acquisition of Furniture and Fixtures -15,000
Acquisition of Delivery Truck -600,000
Cash Flow provided (used) by Investing Activities -5,464,220
Cash Flow from Financing Activities
Galdones's Capital 3,500,000
Montimor's Capital 3,500,000
Galdones's Withdrawal -250,000 -1,000,000
Montimor's Withdrawal -250,000 -1,000,000
Cash Flow provided (used) by Financing Activities 7,000,000 -500,000 -2,000,000
Net Increase/(Decrease) in Cash 1,267,861 1,869,148 3,002,509 4,383,285 4,118,470
Add: Cash Beginning 1,267,861 3,137,009 6,139,518 10,522,802
Ending Cash Balance 1,267,861 3,137,009 6,139,518 10,522,802 14,641,272
89
Table 49
Schedule of Accounts Receivable
Accounts
Sales Receivable Collection
Receivable
Year 1 8,936,610 893,661 - 893,661
Year 2 12,723,637 1,272,364 714,929 1,451,096
Year 3 16,949,691 1,694,969 1,196,623 1,949,442
Year 4 21,655,203 2,165,520 1,610,448 2,504,514
Year 5 26,883,985 2,688,399 2,071,410 3,121,503

1. 10% of Sales will be receivable
2. 80% of the balance of the current year will be collected next year and the residual
balance of 20% will be collected on the year after next year. Same goes for the
succeeding years.
90
Table 50
Schedule of Allowance for Doubtful Accounts and Doubtful Accounts Expense
Allowance for Doubtful
Accounts Accounts
Doubtful Account
Receivable Receivable, net
Accounts Expense
Year 1 893,661 44,683 - 848,978
Year 2 1,451,096 72,555 27,872 1,378,541
Year 3 1,949,442 97,472 24,917 1,851,970
Year 4 2,504,514 125,226 27,754 2,379,288
Year 5 3,121,503 156,075 30,849 2,965,427

1. Allowance for Doubtful Accounts is 5% of Accounts Receivable
91
Table 51
Schedule of Value Added Tax Payable
Sales 8,936,610 12,723,637 16,949,691 21,655,203 26,883,985

12% 12% 12% 12% 12%
Output VAT 1,072,393 1,526,836 2,033,963 2,598,624 3,226,078
Purchases 6,233,693 7,792,434 10,527,771 13,013,924 16,299,993

Percentage 112% 112% 112% 112% 112%
Purchases, net of VAT 5,565,797 6,957,531 9,399,796 11,619,575 14,553,566
12% 12% 12% 12% 12%
Input VAT 667,896 834,904 1,127,976 1,394,349 1,746,428
VAT Payable 357,314 624,755 816,497 1,089,941 1,337,709

92
93
Table 52
Schedule of Salaries and Wages
Monthly No. of
Salary Employees
Production:
Production Worker 8,400 2 201,600 201,600 211,680 211,680 222,264
Machine Operator 8,400 2 201,600 201,600 211,680 211,680 222,264
Direct Labor 403,200 403,200 423,360 423,360 444,528
Production Manager 14,400 1 172,800 172,800 181,440 181,440 190,512
Laboratory Technician 12,240 1 146,880 146,880 154,224 154,224 161,935
Indirect Labor 319,680 319,680 335,664 335,664 352,447
Distribution:
General Manager & 16,800 1 201,600 201,600 211,680 211,680 222,264
Accountant
Sales Manager 14,400 1 172,800 172,800 181,440 181,440 190,512
Cashier 8,400 1 100,800 100,800 105,840 105,840 111,132
Delivery Driver 8,400 1 100,800 100,800 105,840 105,840 111,132
Delivery Man 8,400 1 100,800 100,800 105,840 105,840 111,132
Security Guard 8,400 1 100,800 100,800 105,840 105,840 111,132
Utility Man 8,400 1 100,800 100,800 105,840 105,840 111,132
Salaries Expense 878,400 878,400 922,320 922,320 968,436
Total Salaries and Wages 1,601,280 1,601,280 1,681,344 1,681,344 1,765,411
Note:
1. Salaries and wages increase 5% every after 2 years

94
Table 53
Schedule of 13th Month Pay
No. of
Employees
Production Worker 2 16,800 16,800 17,640 17,640 18,522
Machine Operator 2 16,800 16,800 17,640 17,640 18,522
Production Manager 1 14,400 14,400 15,120 15,120 15,876
Laboratory Technician 1 12,240 12,240 12,852 12,852 13,495
General Manager &
1 16,800 16,800 17,640 17,640 18,522
Accountant
Sales Manager 1 14,400 14,400 15,120 15,120 15,876
Cashier 1 8,400 8,400 8,820 8,820 9,261
Delivery Driver 1 8,400 8,400 8,820 8,820 9,261
Delivery Man 1 8,400 8,400 8,820 8,820 9,261
Security Guard 1 8,400 8,400 8,820 8,820 9,261
Utility Man 1 8,400 8,400 8,820 8,820 9,261
13 133,440 133,440 140,112 140,112 147,118
Note:
1. Since salaries and wages increase by 5% every after two years, therefore, 13th month pay also
increase.
95
Table 54
Schedule of Benefit Contribution
For Year 1
PAG- PHIL Gross No. Of Gross

Compensation SSS Year 1
IBIG HEALTH Contribution Employees Compensation
Production Worker 16,800 636.20 100 100.00 836 2 1,672 20,069
Machine Operator 16,800 636.20 100 100.00 836 2 1,672 20,069
Production Manager 14,400 1,078.20 100 175.00 1,353 1 1,353 16,238
Laboratory Technician 12,240 894.00 100 150.00 1,144 1 1,144 13,728
General Manager &
16,800 1,208.70 100 200.00 1,509 1 1,509 18,104
Accountant
Sales Manager 14,400 1,078.20 100 175.00 1,353 1 1,353 16,238
Cashier 8,400 636.20 100 100.00 836 1 836 10,034
Delivery Driver 8,400 636.20 100 100.00 836 1 836 10,034
Delivery Man 8,400 636.20 100 100.00 836 1 836 10,034
Security Guard 8,400 636.20 100 100.00 836 1 836 10,034
Utility Man 8,400 636.20 100 100.00 836 1 836 10,034
133,440 8,713 1100 1,400.00 11,213 13 12,885 154,619
96
Table 55
Schedule of Benefit Contribution
Production Worker 20,069 20,069 20,952 20,952 22,135

Machine Operator 20,069 20,069 20,952 20,952 22,135
Production Manager 16,238 16,238 17,070 17,070 17,954
Laboratory Technician 13,728 13,728 14,612 14,612 15,204
General Manager & Accountant 18,104 18,104 18,254 18,254 18,404
Sales Manager 16,238 16,238 17,070 17,070 17,954
Cashier 10,034 10,034 10,476 10,476 11,068
Delivery Driver 10,034 10,034 10,476 10,476 11,068
Delivery Man 10,034 10,034 10,476 10,476 11,068
Security Guard 10,034 10,034 10,476 10,476 11,068
Utility Man 10,034 10,034 10,476 10,476 11,068
154,619 154,619 161,290 161,290 169,124
97
Table 56
Schedule of Operating Expenses

Utilities
Telecommunication 15,588 16,367 17,185 18,045 18,947
Electricity 120,000 126,000 132,300 138,915 145,861
Water 36,000 37,800 39,690 41,675 43,758
Total 171,588 180,167 189,176 198,635 208,566
Allocated to Production (80%) 137,270 144,134 151,341 158,908 166,853
Allocated to Administration (20%) 34,318 36,033 37,835 39,727 41,713
Total
Repair and Maintenance
Allocated to Production (80%) 96,000 100,800 105,840 111,132 116,689
Allocated to Administration (20%) 24,000 25,200 26,460 27,783 29,172
Total 120,000 126,000 132,300 138,915 145,861
Supplies Expense 162,345 170,462 178,985 187,935 197,331

Gasoline Expense 50,000 52,500 55,125 57,881 60,775
Depreciation Expense 135,000 135,000 135,000 135,000 135,000
Advertising and Promotion
150,000 120,000 96,000 76,800 61,440
Expense
Personnel Training and
30,000 27,000 24,300 21,870 19,683
Development
Insurance Expense 70,000 70,000 70,000 70,000 70,000
Miscellaneous Expense 30,000 31,500 33,075 34,729 36,465

1. Expenses allocated to production are part of Manufacturing Overhead.
2. Supplies Expense increases 5% annually
3. Utilities increase 5% annually due to chances of inflation
4. Repair and Maintenance increases 5% annually
5. Gasoline Expense increases 5% annually due to inflation
6. Advertising and Promotion Expense decreases by 20% annually
7. Seminar and Training Expense decreases 10% annually
8. Miscellaneous Expense increases annually by 5%

98
Table 57
Schedule of Depreciation (Building & Vehicle)
Original No. of Annual

Asset Year 1 Year 2 Year 3 Year 4 Year 5
Cost Life Depreciation
Building 1,850,000 20 92,500 92,500 185,000 277,500 370,000 462,500
Vehicle
Delivery Vehicle 600,000 15 40,000 40,000 80,000 120,000 160,000 200,000
Table 58
Schedule of Depreciation (Furniture & Fixtures)

Furnitures&Fixtures
Office table & chair 10,000 6 833 833 1,667 2,500 3,333 4,167
Conference table &
5,000 6 1,667 1,667 3,333 5,000 6,667 8,333
chairs
Total 2,500 2,500 5,000 7,500 10,000 12,500
99
Table 59
Schedule of Depreciation (Machineries & Equipment)

Standard Sieve 10,000 5 4,000 4,000 8,000 12,000 16,000 20,000
Blending Tank Machine 150,000 7 42,857 42,857 85,714 128,571 171,429 214,286
Soap Cutting Machine 120,000 7 17,143 17,143 34,286 51,429 68,571 85,714
Bottling and FillingMachine 420,000 7 60,000 60,000 120,000 180,000 240,000 300,000
Sachet Packing Machine 125,000 7 17,857 17,857 35,714 53,571 71,429 89,286
Storage Tank 100,000 7 42,857 42,857 85,714 128,571 171,429 214,286
Labelling Machine 285,000 7 40,714 40,714 81,429 122,143 162,857 203,571
Soap Wrapping Machine 150,000 7 21,429 21,429 42,857 64,286 85,714 107,143
Double Boiler 5,000 5 2,000 2,000 4,000 6,000 8,000 10,000
Weighing Scale 5,000 5 2,000 2,000 4,000 6,000 8,000 10,000
Ph Meter 4,000 5 800 800 1,600 2,400 3,200 4,000
Freezer 30,000 7 4,286 4,286 8,571 12,857 17,143 21,429
Soap Curing Rack 1,000 5 400 400 800 1,200 1,600 2,000
Electric Stove 2,000 5 800 800 1,600 2,400 3,200 4,000
Rack and Shelves 1,000 5 800 800 1,600 2,400 3,200 4,000
Steel Cart 1,000 5 800 800 1,600 2,400 3,200 4,000
Laboratory Table 7,500 5 1,500 1,500 3,000 4,500 6,000 7,500
Sous Vide 3,960 5 1,584 1,584 3,168 4,752 6,336 7,920
Aircon 30,900 5 12,360 12,360 24,720 37,080 49,440 61,800
Computer 12,000 5 4,800 4,800 9,600 14,400 19,200 24,000
Printer 4,000 5 800 800 1,600 2,400 3,200 4,000
CCTV 1,500 5 900 900 1,800 2,700 3,600 4,500
Telephone 1,500 5 300 300 600 900 1,200 1,500
Total 280,987 280,987 561,974 842,961 1,123,947 1,404,934
100
Table 60
Summary of Depreciation
Annual
Depreciation
Machineries & Equipment 280,987 280,987 561,974 842,961 1,123,947 1,404,934
Building 92,500 92,500 185,000 277,500 370,000 462,500
Delivery Vehicle 40,000 40,000 80,000 120,000 160,000 200,000
Furniture & Fixtures 2,500 2,500 5,000 7,500 10,000 12,500
Total Depreciation 415,987 831,974 1,247,961 1,663,947 2,079,934

101
Table 61
Projected Purchases (Shampoo)
Shampoo (Bottle) Year 1 Year 2 Year 3 Year 4 Year 5
DM cost per unit 53.64 53.64 56.32 56.32 59.14
Units to be Produced 16,663 20,829 26,801 33,130 39,519
Total Cost of Purchases 893,779 1,117,270 1,509,459 1,865,920 2,337,073
Shampoo (Sachet) Year 1 Year 2 Year 3 Year 4 Year 5
DM cost per dozen 46.31 46.31 48.62 48.62 51.05
Total Cost of Purchases 830,964 1,038,747 1,403,373 1,734,783 2,172,822

102
Table 62
Projected Purchases (Conditioner)
Conditioner (Bottle) Year 1 Year 2 Year 3 Year 4 Year 5
DM cost per unit 67.75 67.75 71.14 71.14 74.69
Total Cost of Purchases 1,128,888 1,411,167 1,906,522 2,356,751 2,951,840
Conditioner (Sachet) Year 1 Year 2 Year 3 Year 4 Year 5
DM cost per dozen 56.87 56.87 59.72 59.72 62.70

103
Table 63
Projected Purchases (Soap)
Soap Year 1 Year 2 Year 3 Year 4 Year 5
DM cost per unit 15.35 15.35 16.12 16.12 16.92
Total Cost of Purchases 562,132 702,694 949,357 1,173,549 1,469,875
Table 64
Projected Purchases (Lotion)
Lotion Year 1 Year 2 Year 3 Year 4 Year 5
DM cost per unit 72.55 72.55 76.18 76.18 79.99

104
Table 65
Summary of Projected Purchases
Shampoo 1,724,743 2,156,017 2,912,832 3,600,703 4,509,895

Conditioner 2,149,424 2,686,890 3,630,055 4,487,299 5,620,360
Soap 562,132 702,694 949,357 1,173,549 1,469,875
Lotion 2,125,482 2,656,961 3,589,621 4,437,316 5,557,757

1. The business assumes that Cost of Direct Materials per product increase by 5% every after 2 years.
2. Only 95% of Total Cost of Purchases can claim input VAT, the residual percentage (5%) is exempt from
VAT. Thus, to get the Total Cost of Purchases, Purchases net of VAT is added to Purchases not entitled
to VAT.
105
Table 66
Schedule of Cost of Goods Manufactured
Raw Materials Inventory, Beg. 589,389 795,705 1,074,959 1,337,948
Add: Purchases 5,893,886 7,367,659 9,953,889 12,304,518 15,411,460
Raw Materials Available for Use 5,893,886 7,957,047 10,749,594 13,379,478 16,749,408
Less: Raw Material Inventory, End 589,389 795,705 1,074,959 1,337,948 1,674,941
Raw Material Used 5,304,498 7,161,343 9,674,635 12,041,530 15,074,467
Direct Labor 403,200 403,200 423,360 423,360 444,528
Manufacturing Overhead:
Utilities 137,270 144,134 151,341 158,908 166,853
Repairs and Maintenance 96,000 100,800 105,840 111,132 116,689
Indirect Labor 319,680 319,680 335,664 335,664 352,447
Depreciation Related to
280,987 280,987 280,987 280,987 280,987
Manufacturing
Total Manufacturing Overhead 833,937 845,601 873,831 886,691 916,976
Total Manufacturing Cost 6,541,635 8,410,143 10,971,826 13,351,580 16,435,971
Add: Work in Process, Beg. 654,163 906,431 1,187,826 1,453,941
Total Cost of Work in Process 6,541,635 9,064,307 11,878,257 14,539,406 17,889,911
Less:Work in Process, End 654,163 906,431 1,187,826 1,453,941 1,788,991
Cost of Goods Manufactured 5,887,471 8,157,876 10,690,431 13,085,465 16,100,920
1. Raw Materials- End will be 10% of the Raw materials Available for Use
2. Work in Process- End will be 10% of Total Work in Process

106
Table 67
Schedule of Cost of Goods Sold
Cost of Goods Manufactured 5,887,471 8,157,876 10,690,431 13,085,465 16,100,920
Add: Finished Goods Inventory, Beg. 588,747 874,662 1,156,509 1,424,197
Total Cost of Goods Available for Sale 5,887,471 8,746,623 11,565,093 14,241,975 17,525,118
Less: Finished Goods Inventory, End 588,747 874,662 1,156,509 1,424,197 1,752,512
Cost of Goods Sold 5,298,724 7,871,961 10,408,584 12,817,777 15,772,606

1. Finished Goods Inventory- End will be 10% of the Cost of Goods Available for Sale
for the first five years of operation.

107
Table 68
Schedule of Inventories
Raw Material Inventory 589,389 795,705 1,074,959 1,337,948 1,674,941
Work in Process Inventory 654,163 906,431 1,187,826 1,453,941 1,788,991
Finished Goods Inventory 588,747 874,662 1,156,509 1,424,197 1,752,512
Total Inventories 1,832,299 2,576,798 3,419,294 4,216,086 5,216,444

108
Table 69
Financial Analysis

Liquidity Ratio:
Current Asset 1,115,012 2,042,355 3,194,581 4,803,558 6,350,591
Divided by: Current Liabilities 8,115,012 10,157,367 13,351,948 17,655,506 22,506,097
Current Ratio 14% 20% 24% 27% 28%
Profitability Ratio:
Net Income After Tax 1,115,012 2,042,355 3,194,581 4,803,558 6,350,591
Divided by: Sales 8,936,610 12,723,637 16,949,691 21,655,203 26,883,985
Profitability Margin on Sales 12% 16% 19% 22% 24%
Return on Equity
Divided by: Total Equity 8,115,012 10,157,367 13,351,948 17,655,506 22,506,097
Return on Equity 14% 20% 24% 27% 28%
Return on Asset:
Divided by: Total Assets 8,997,372 11,724,594 15,627,041 20,918,449 26,707,429
Return on Assets 12% 17% 20% 23% 24%
Asset Turnover
Sales 8,936,610 12,723,637 16,949,691 21,655,203 26,883,985
Divided by: Total Assets 8,997,372 11,724,594 15,627,041 20,918,449 26,707,429
Asset Turnover 0.99 1.09 1.08 1.04 1.01
Debt-to-Equity Ratio
Liabilities 882,360 1,567,228 2,275,094 3,262,943 4,201,332
Divided by: Total Equity 8,115,012 10,157,367 13,351,948 17,655,506 22,506,097
Debt-to-Equity Ratio 11% 15% 17% 18% 19%
109
Table 70
Payback Period
Year Cashflows Outstanding Balance
0 -7,000,000 -7,000,000
1 1,267,861 -5,732,139
2 1,869,148 -3,862,991
3 3,002,509 -860,482
4 4,383,285 3,522,802
5 4,618,470 8,141,272
860,482
Cash flow needed to reimburse the cost of capital
4,383,285
Divided by: Cash flow on the 4th year
Period required to reimburse the cost of capital on 0.196309895
the 4th year
Cumulative Year 3
Payback Period 3.196
Payback period is approximately 3 years, 2 months and 11 days.

110
Chapter 7
SOCIO-ECONOMIC STUDY
This chapter includes the socio-economic benefits of the proposed project.
It presents the social desirability and responsibility of the business to the
government and to its community. It is very important that entrepreneurs must
know the importance of innovating and starting a business that would largely
contribute to the society and the economy.
Inspiration to Entrepreneurs
The proposed project may inspire people who want to develop and start
their own desired business. With patience and hard-work in researching and
passion to do, it will all be possible.
Employment Generation
The proposed project will create employment. There would be job
opportunities for unemployed individuals. All employees hired will receive benefits
and gain experience and skills they can use in related fields.
Economic Contribution
The proposed business will provide positive impact to the economy. It will
pay the right amount of taxes and this is expected to contribute to the government.
111
Payment of tax will indirectly contribute public sectors such as taxes are used to
fund welfare and public services (e.g. education systems).
Environmental Contribution
Products of BNN Personal Care are made from all natural ingredients that
are not harmful and non-toxic to people and most especially to the environment.
The business aims to advocate everyone who also wants to make their own
business the use of natural components to create products in order not to harm
the environment and society.
Corporate Social Responsibility
The business will not only aim in making profit but also be socially
responsible by donating every year to any foundation in Rizal. The business will
also conduct seminars on how to establish their own business with relation to BNN
products and any other product that can be made out of banana. All peels that will
get from used banana will donate to the farmers and gardeners in Tanay, Rizal to
make it as their fertilizer because according to research banana peel is a great
source of nutrients to the plants.
Legal Responsibility
BNN Personal Care will comply with all the requirements needed in
establishing a business such as registering the business with the Bureau of Food
and Drugs (BFAD) to ensure the products are safe and licensed, Department of
Trade and Industry (DTI) to ensure the new business is registered, Bureau of
Internal Revenue (BIR) to ensure that the business will pay its tax and others.
112
CURICCULUM VITAE
JHONALYN M. GALDONES
Southville 10 Blk 12 Lot 16 Brgy. Plaza Aldea Tanay,Rizal
0975-885-0975
itsmejhonagaldones@gmail.com
I. PERSONAL DATA
Age : 19
Birthday : November 3, 1998
Birthplace : Tanay, Rizal
Occupation : Student
Nationality : Filipino
Sex : Female
Civil Status : Single
Father’s Name : Joel E. Galdones
Mother’s Name : Edna Rona M. Galdones
II. EDUCATIONAL ATTAINMENT

Tertiary : Tomas Claudio Colleges
Taghangin Morong, Rizal
Course : Bachelor of Science in Accountancy
(2015-2019)
Secondary : Tanay National High School
Tanay, Rizal
(2011-2015)
Elementary : Manguino-o Elementary School
Calbayog, Samar
(2005-2011)
113
III. ORGANIZATIONAL AFFILIATIONS

 Rotaract Club of Tomas Claudio Memorial Colleges
President 2018-2019
 Junior Philippine Institute of Accountants
Member 2015-2019
IV. TRAININGS/SEMINARS
 RAC Academy
PSBA, Manila
 Research Orientation
Tomas Claudio Colleges
 Be IT Seminar
DH Soriano Multimedia Hall
 Values Formation Seminar

 Drug Abuse Prevention, Treatment and Rehabilitation

National Training Service Program
V. ACHIEVEMENT AND AWARDS

 Consistent Dean’s Lister
 Certified Bookkeeper of United Kingdom with Distinction
 Participant, Basic Accounting 1 and 2, Academics Big Day Year III
Lyceum of the Philippines Batangas
 Pre- finalist, Regulatory Framework for Business Transaction, 21st
General Assembly, Colegio de San Juan de Letran Calamba Laguna
VI. CHARACTER REFERENCES

Estela G. Pascual, CPA, MBA
Dean, College of Accountancy and Business
APPENDICES
114
APPENDIX A
115
116
117
118
APPENDIX B
SURVEY RESULT
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Shampoo & Conditioner Soap Lotion
119
APPENDIX C
General Partnership
ARTICLES OF PARTNERSHIP
of
_____JE Naturals Co.____

(Partnership Name)
KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned partners, all of legal age, residents and citizens of the
Philippines, have on this day voluntarily associated ourselves together for the purpose of
forming a general partnership under the following terms and conditions and subject to existing
and applicable laws of the Republic of the Philippines:
AND WE HEREBY CERTIFY:
ARTICLE I. Partnership Name: That the name of this partnership shall

be JE Naturals Co.
and shall transact business under the said company name.
ARTICLE II. Business Purpose: That the purpose/s for which this partnership is
formed is/are:
Produce and offer personal care products in the market
ARTICLE III. Principal Place of Business: That the principal place of business of this
partnership shall be located at:
Sampaloc Rd.Brgy. Plaza Aldea, Tanay, Rizal
(complete address)
120
ARTICLE IV. Term of Existence: That this partnership shall have a term of 10 years
from and after the original recording of its Articles of Partnership by the Securities and Exchange
Commission.
ARTICLE V. Partners’ Circumstances: That the names, nationalities and complete

residence addresses of the partners are as follows:
Name Nationality Complete Residence Address
Jhonalyn M. Galdones Filipino Brgy. Plaza Aldea, Tanay, Rizal
Edna Rona T. Montimor Filipino Brgy. Plaza Aldea, Tanay, Rizal
ARTICLE VI. Capital Contributions: That the capital of this Partnership shall be the
amount of Seven Million pesos (P 7,000,000), Philippine Currency, contributed in cash by the
partners, as follows:
Name Amount Contributed
Jhonalyn M. Galdones Php 3,500,000

Edna Rona T. Montimor Php 3,500,000
That no transfer of interest which will reduce the ownership of Filipino citizens to less
than the required percentage of capital as provided by existing laws shall be allowed or
permitted to be recorded in the proper books of the partnership.
ARTICLE VII. Sharing Ratios: That the profits and losses of this partnership shall be
divided and distributed proportionately on the ratio of 50:50.
ARTICLE IX. Management: That this partnership shall be under Jhonalyn M.

Galdones, as General Manager, who shall be in charge of the management of the affairs of the
company. He shall have the power to use the partnership name and in otherwise performing
121
such acts as are necessary and expedient in the management of the firm and to carry out its
lawful purposes.
ARTICLE X. Undertaking to Change Name: That the partners undertake to change

the name of this partnership, as herein provided or as amended thereafter, immediately upon
receipt of notice or directive from the Securities and Exchange Commission that another
corporation, partnership or person has acquired a prior right to the use of that name or that the
name has been declared as misleading, deceptive, confusingly similar to a registered name, or
contrary to public morals, good customs or public policy.
IN WITNESS WHEREOF, we have hereunto affixed our signatures this 20th day of
December, 2018, at Tanay, Rizal.
______________________ _______________________
(name of partner) (name of partner)
TIN TIN
______________________ _______________________
(name of partner) (name of partner)
TIN TIN
(Names and Signatures of the partners and TIN)

122
ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)

____________________________) S.S.
BEFORE ME, a Notary Public, for and in _________________, this ____day of

_________, 20___, personally appeared the following persons:
Name TIN/ID/Passport No. Date & Place Issued
known to me and to me known to be the same persons who executed the foregoing Articles of
Partnership constituting of _____pages, including this page where the acknowledgement is
written, and they acknowledged to me that the same is their free and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and place above written.
NOTARY PUBLIC
Doc. No. ______;
Page No. ______;
Book No. ______;
series of 20 ______.
123
APPENDIX D
SSS CONTRIBUTION TABLE

124
APPENDIX E
PHILHEALTH CONTRIBUTION TABLE
‘
125
APPENDIX F
PAG-IBIG CONTRIBUTION TABLE

126
APPENDIX G
127
BIR FORM FOR PARTNERSHIPS/CORPORATIONS

128
129
APPENDIX H
FDA License to Operate

130
APPENDIX I
131
SANITARY PERMIT
132
BIBLIOGRAPHY
Internet
Population by Age, Rizal (Province Philippines)- Population Statistics
Retrieved from http://www.citypopulation.info/php/philippines-luzon-
admin.php?adm1id=0458
How to Price a Beauty Products, 2017
Retrieved from https://www.beautyindependent.com/price-beauty-product/
Cosmetics and Personal Care Market Share, 2018
Retrieved from https://www.statista.com/outlook/70000000/123/cosmetics-
personal-care/philippines
Preferences for Organic/Natural in Beauty and Personal Care See Growth

Space, 2014
Retrieved from
https://www.gcimagazine.com/marketstrends/segments/natural/Preferences-for-
OrganicNatural-in-Beauty-and-Personal-Care-See-Growth-Space-
261828421.html
Unpublished Materials
Jatico, Danie Boy Cocaloetus. 2017

Soriano, John Michael P. CaraBes. 2017

Feasibility Study

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1

Name of the Applicant

The name of the applicant is Jhonalyn M. Galdones, currently enrolled in

Tomas Claudio Colleges with the degree of Bachelor of Science in Accountancy.

Currently residing at Brgy. Plaza Aldea Tanay, Rizal.

Name of the Firm

name) of the partners, Jhonalyn M. Galdones and Edna Rona T. Montimor.

The proposed business will be located at Sampaloc Rd. Brgy. Plaza,

that the chosen location will be accessible to everyone

in their everyday living. It is composed of shampoo and conditioner, soap, and

BNN Personal Care uses Banana Extract in particular because it is found

natural ingredients incorporated in the products brought this to an even more

will be put in a biodegradable and recyclable containers. Logo, benefits,

concerns are all included in the packaging. Designs used are

common to the public. (See Table 3,4 &5)

(50%). Price of each product will increase by 3% annually.

BNN products will be available through wholesale and retail. By wholesale

credit terms while in retailing it is strictly to be in cash.

Advertisement plays also an important role for a company and products to

become known to the market. Because of a booming e-commerce and online

products that are made of natural ingredients.

Through further research and development, owners will be able to create

sales and create a name in the personal care industry.

with its main ingredient banana extract.

These ingredients are carefully selected due to its nature.

Since, these products are organic in nature it has to be infused with a

preservative. To retain the products as 100% natural, the proponent research

Phytocide Elderberry, a natural botanical preservative. By adding this, life of the

30, 31, 32 & 33).

Utilities required are water, telecommunications and electricity which will be

supplied by Tanay Water District, MERALCO and PLDT, respectively.

regulations established by Department of Environment and Natural Resources

employees will also be taught of how to manage disposals.

The proposed project will be in the form of partnership, two individuals

contributing money to finance the operation of the business.

The business will be employing 13 workers including one of the partner,

The business will be keeping a daily time record to know whether

day to ensure that everyone is doing their job.

The proposed project will be a partnership type of business where both

3,194,581; 4th Year 4,803,558; 5th Year 6,350,591.

amount of taxes as a contribution to the government. This payment of tax will

for education system.

The proposed project will serve as an inspiration to the next generations

ideas and through research.

The business is also an environmentally friendly because it uses materials

Part of being responsible is complying with all the requirements needed in

licenses to operate a business.

PROJECT BACKGROUND AND HISTORY

ingredient of our personal care products. Producing benefits as other commercial

products can give and in an even more natural way.

The promoter is Ms. Jhonalyn M. Galdones, residing in Brgy. Plaza Aldea,

concern with her chosen business and its location.

History of Personal Care Products

civilization. Many ancient societies stressed the importance of personal hygiene.

detailed codes of hygiene. Archaeologists have found evidence of the use of

elaborate public bathhouses. Today, in our image-obsessed world, taking care of

one’s personal appearance and demonstrating good hygiene are extremely

feel better about themselves. It creates, manufactures, and sells personal-care,

beauty, and hygiene products. Examples include cosmetics, toothpastes,

The feasibility study entitled “BNN Personal Care” is prepared by Jhonalyn

M. Galdones, a 4th year Bachelor of Science in Accountancy student, for the

requirements for the degree Bachelor of Science in Accountancy