I.

EXECUTIVE SUMMARY

Name of Business : Bamboo Lighting Corporation

Location : Sawangga Bacon District, Sorsogon City

Proponent : ALDIN B. BONAOBRA

Form Of Organization : Corporation

Production Line : Native products

Total Production Cost : 15,000

Return Of Investment. : 35%

Payback Period : 6 months and 20 days

Source Of Fund : Personal Savings and Family Means

Target Implementation : March 2019

II. VISION / MISSION STATEMENT

A. Present Situation

The consumer concern about that the bull are easy to busted that can may be

cause of electric shock or can be fire that is very dangerous to the house. That is

why, the proponent has come up with the entrepreneurial endeavor that will answer

these demands at least expensive price and to avoid electric shock or the bull will

busted that can cause fire. Because the bamboo is not conductor of electricity it

can serves as as insulator or avoid electric shock even you can touch it, and the

same time provide incentive to small business.

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 B. Vision and Mission Statement

Vision

Lighting bamboo made to be resourceful and leading manufacturer of quality

and low cost/price and quality, and improve the house in more decorative because

of the unique bamboo lamp shade.

Mission

Lighting bamboo is improving in not just a simple bulb but unique and more

decorative and give the light in any houses or establishment and give safety to

many people to avoid electric shock. And be the one of the business not only in

Prieto-Diaz or Sorsogon City but in the whole Bicol region as well.

C. Objective

 To provide employment.

 To become resourceful, not to use plastic materials that is the threat to

the environment.

 To enhance innovative entrepreneurial skills of Bicolanos, and

continuously develop products and services to become more

competitive in the local, national and international.

III. COMPANY OVERVIEW

A. Legal Business Description

The business will secure the necessary Business permits issued by the LGU,

Department of Trade and Industry (DTI) registration, Social Security System (SSS)

Also, the business will be registered with the Bureau of Internal Revenue (BIR).

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 Registration with these government agencies is important to meet the necessary

legal requirements to operate the business.

B. Strategic Alliance

In order to reach potential markets, the proponent will establish linkages with

various institutions such as:

 Department of Trade in Industry (DTI) – a government agency promoting

livelihood programs to the local community and help them understand more

about the opportunities outside that will give them additional profit or

income;

 Local Government Units (LGU) - The institution that will be issuing

mayor’s and sanitary permit, sanitary clearance, health certificates and

certificate of potability which are essential to legalize the existence of the

enterprise.

 Philippine Electrical Code –The code that need to be follow & check the

connection of the bull & to have a permit to the PEC to install safety the

wiring connection & to have a good & quality connection to avoid improper

electrical connection.

IV. ORGANIZATION MANAGEMENT

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 Chart 1
A. Organizational Structure

OWNER / MANAGER
Aldin B. Bonaobra

CASHIER ELECTRICIAN
Jake Saclausa Renzky D. Doringo

B. Job Description

Owner / Manager

 Supervise and manage the overall performance of staff.

 Takes charge of employee selection, career development, succession

planning and periodic training.

 Facilitate production.

 Purchases of materials for the machine

 Assemble and manufacture the water vending machine.

 Look for and assisting prospect clients.

 Explain the products and its features to the clients.

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  In charge of the advertising and promotions of the product.

 Ensuring timely delivery

 Research and report about external opportunities

Cashier

 Keep financial records and prepare financial reports.

 Responsible of processing business permits and other clerical works.

 Collect payments from customers or clients.

 Disburse cash.

 Prepare the daily collection form for submission it to the operations

manager.

Electrician

 Assist the Manager in assembling the unit

 On call electrician for electrician support to all clients

 In charge of buying some raw material and other things needed in the

production process.

 Maintain the orderliness of the work place and helps in assisting

customers.

C. Compensation

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 For the first 2 years, the salary of the employees will be under

commission basis. The Owner / Manager will receive Php300 commission,

for the Electrician, Php100 per unit sold. The Cashier will receive incentives

during peak periods. In the case of the customers they have invited to avail

of the products and services, they will also receive the same commission.

In that manner, employees of this entrepreneurial activity will be motivated

to help the company to be more productive and stable.

D. Allocation of Profits

About 65% of the profit earned by the enterprise will be allocated to

business expansion and the remaining 35% will be distributed as salary.

V. PRODUCT SERVICE STRATEGY

A. Product or Service Description

Bamboo lamp shade main product is a beautiful and fashionable

appearance, energy saving & low power consumption because of the LED

Bulb, The proposed business will be located near in Paguriran Beach resort

in Sawanga, Sawanga Bacon District, Sorsogon City.

B. Importance of Product

The product will be of benefit to the customers; because it is low price

and high qaulity of the buld, the bamboo lamp shade will.give your home

beautiful light and extra design. This entrepreneurial venture will also help

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 customers save money because it is low price and energy saving. Aside

from that, this product will help create employment in the community and

Sorsogon City.

C. Packaging, Labeling, and Branding

The product will be more presentable to the market, both side of the

lampshade be cover with sticker with attractive designs, On the upper front

is the name of the business.

D. Other Features

A user’s manual and warranty card will be included as part of the

packaging for the lamp shade.

VI. MARKET ANALYSIS

A. Market Definition

The proposed business is conveniently located Paguriran Beach

Brgy. Sawanga Bacon District Sorsogon City. The main office is in Purok 1

Talisayan Prieto-Diaz Sorsogon. Businessmen, canteen owners, teachers,

retirees and other interested entrepreneurs who are willing to invest are the

top target market for the product. The product will be displayed in schools,

offices, public market, terminals and any other places with more people

coming.

Compared to other competitors Bamboo lighting Corporation will

produce the lamp shade at low cost with different unique design & quality.

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B. Customer’s Profile

Table 1

Institutions Customers

Schools (both for Public and Private) Canteen Owners, School

Management, etc.

Beach/resort Beach owner, tourists,

Management, etc.

Offices, Banks, and other agencies (Commercial and Canteen Owners, Management,
Government) etc.

Food Chain Restaurants (Micro and Macro Enterprises) Business Owners

This proposed business plan will cater to the following clientele:

C. Competition

The product is purposely developed for your home transform to

simple become beautiful & fashionable appearance, safer and cheaper

cost. Affordable price of bulbs & bamboo, and other products of existing

bamboo lamp shade will determine the high competitiveness of the earning

capability of the product in the market.

Based from observations, there are local competitors who are

conducting the similar business idea using bamboo lamp shade but there

are no competitors yet in the market that manufactures bamboo lamp shade

with very low and yet, competitive pricing & energy saving. Rest assured

that the quality of the product will be improved through continuous

innovation of the product that will benefit both the business owners and the

end users of the product and services.

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 D. Demand and Supply

It is highly evident that our home become beautiful because of the

native materials like bamboo or bamboo lamp shade. The potential market

for related businesses capturing basic services and products engaged with

bamboo lamp shade. There are thousands of people in Sorsogon such as

schools, offices, beaches etc. which we determined as our main target for

operations on the first year of our product’s existence. Native materials used

in producing the product are available in the market. In fact, the proponents

determined several suppliers for the native materials for continuous

production and sufficiently meet the demand.

E. Risk

Competition due to the increasing number of related products and

services as bamboo lamp shade, the typical many bamboo trees use or sold

in the market and the existing bamboo lamp shade may arise, but the big

advantage of bamboo lamp shade is far to compete when it comes to the

price and potential market, so to speak.

VII. MARKETING PLAN

Presently many people are not aware that they can have a sure profit in small

business out of minimal capital like this project. In this entrepreneurial endeavor,

we choose to focus our marketing plan into our TRIPLE B strategies such as:

Branding; Breakthrough and; Beyond.

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A. Sales Strategy

a. Branding

This approach will be applied within a one year term. During this

period, we opt to launch and form massive campaigns to introduce and

establish the brand image of the product among the prospect clients

through seminars and other engagements. Information drive and

promotions will be done through the use of social media and other printed

materials. The target growth will evolve around Sorsogon City and nearby

towns.

b. Breakthrough

Along this line, the project continuously innovates within the term of

one to five years (1-5 years) leaping forward to the peak of its

entrepreneurial success. The proponent will engage into a joint venture

with different lamp shade to further the services offered to its clientele.

Further, this venture at this instant constantly grows in the whole Bicol

region and neighboring provinces due the design of the lamp shade of the

lighting bamboo in the market.

c. Beyond

Conservatively, the product reaches its peak after ten years and is

now ready to take its place in the national and perhaps globally. The project

would consider expansion of its product offers and additional features.

Furthermore, the proponent will invest into research and development

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 activities to assess new opportunities based on consumers’ needs and in

the context of the direction set by the government and other institutions.

B. Distribution Channel

The product distribution plan is through cash or installment bases. Also,

the proponent considers engaging in consignment basis to consider financial

stability of the customers. Another option is by engaging into direct selling to

reach as far and as many as customers as can be.

C. Advertising & Promotion

For advertising and promotion campaigns, tarpaulin, sign board flyers

and calling cards will be used. Information will be disseminated using the

internet through social media or networking sites to maximize the advertising

activity for the product.

D. Pricing Strategy

Bamboo lighting considers its costumers as life-long business

associates, so it is prepared to give a reasonable price for them to earn more

profits and quick turnover. The cost of a single unit will be Php 350.00 with 3

months service. A lampshade will sell Php400.00 each and all units will be

delivered free of charge within the nearest location. Based on the price of a unit

present in the market Bamboo lighting© is still selling in a very affordable price.

The proponent will make sure that the customer will be satisfied for the quality

of the product and services rendered.

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 The proponent will buy all materials for production in Prieto-Diaz and will

assemble the finished product in Brgy. Talisayan.

VIII. PRODUCTION PLAN

Chart 2

A. Production Process of the Bamboo lamp shade

Prepare all necessary tools and materials in assembling the

bamboo lamp shade.

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 Remove some parts of the bamboo that unnecessary to the

lamp shade and make it presentable

Make sure that the wiring and devices are correctly and

properly installed

Test the Device

B. Location Layout

Chart 3

The business is located at Sawangga Bacon District, Sorsogon City

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C. Tools and Equipment

Table 2

Equipment Materials
Pliers Bamboo
Screw Drivers Electrical tape
Hacksaw #16 AWG wire
Grinder
Nitto
Scissor Lamp holder

IX. FINANCIAL PLAN

A. ASSUMPTION

1. Bamboo lamp shade consider an average of 3 units considered as

monthly sales (5 units x 12 months = 60 units sold/year) and with an

average of 15% increase in sale in the next year of operation and

another 14% increase in the following year;

2. In 2019, there is a projected increase in selling price of the unit

amounting to Php 350, this is due to the price increase of raw

materials in the market;

3. Sales of lampshade with case considered with 10% annual increase

in the following year (2018) and with an increase 1.5% in sales in the

year 2019. Sixty (60) units will be sold in the first year of operation;

4. Staff will have increases in their benefits of 5% in 2015;

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 5. Employees’ salaries, building rentals and inventory of raw materials

will have a 5% increase annually;

6. There will be an annual increase of 2.5% in utility bills and

transportation;

7. Straight-line method is used in calculating the depreciation expense

in 3 years’ time;

B. CAPITAL REQUIREMENT

The project shall source out its fund part from the proprietor in his

savings. The total investment cost to start this project is PhP 15, 000;

income earned from monthly sales will form part of additional fund for further

production in anticipation for subsequent years’ operations.

AVENDGERS WATER VENDING MACHINE

Projected Income Statement
For the Calendar Years Endend 2013 – 2015
Table 3

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Sales
2013 2014 2015

Water Vending Machine 480,000.00 638,000.00 816,000.00

Water Vending Machine case 30,000.00 70,000.00 120,000.00

Water Container

Total 510,000.00 708,000.00 936,000.00

Less: Cost of Goods Manufactured and Sold

Raw Materials Beg. Bal. 0.00 0.00 0.00

Purchase:

Water Dispenser 212,000.00 237,800.00 285,600.00

Dispenser Case 15,000.00 36,000.00 63,000.00

Other Raw Materials 74,200.00 92,800.00 122,400.00

Sub-Total: 301,200.00 366,600.00 471,000.00

Freight In 14,400.00 15,120.00 15,876.00
Total: 315,600.00 381,720.00 486,876.00
Less: Ending Inventory 0.00 0.00 0.00
Total Direct Materials 315,600.00 381,720.00 486,876.00
Direct Labor (Wages ) 37,100.00 42,630.00 52,479.00
Overhead: 6,601.67 6,931.75 7,278.34
Total Cost of Goods Manufactured 359,301.67 431,281.75 546,633.34
Finished Goods Beg. Inventory 0.00 27,000.00 28,500.00
Finished Goods Ending Inventory (27,000.00) (28,500.00) (30,000.00)
Total Cost of Goods Sold 332,301.67 429,781.75 545,133.34
Gross Profit 177,698.33 278,218.25 390,866.66
Less: Operating Expenses
Benefits 20,400.00 21,420.00 22,491.00
Advertising 3,696.00 3,880.80 4,074.84
Office Supplies 3,760.00 3,948.00 4,145.40
Utilities 3,600.00 3,780.00 3,969.00
Permits and Licenses 4,515.00 4,740.75 4,977.79
Gasoline 4,800.00 5,040.00 5,292.00
Rented Service Vehicle 18,000.00 18,900.00 19,845.00
Building Rental
Total 58,771.00 61,709.55 64,795.03
Income Before Tax 118,927.33 216,508.70 326,071.63
Less: Income Tax 23,785.47 54,127.17 97,821.49
Net Income After Tax 95,141.86 162,381.52 228,250.14

AVENDGERS WATER VENDING MACHINE

Projected Cashflow Statement
For the Calendar Years Endend 2013 – 2015
Table 4

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 2013 2014 2015
Beginning Cash Balance
Initial Investment 30,000.00 103,738.53 286,671.81
Cash Inflows:
Cash Sales 510,000.00 708,000.00 936,000.00
Total 540,000.00 811,738.53 1,222,671.81
Cash Outflows:
Machinery and Equipment 5,405.00
Facility Renovation 10,000.00
Direct Materials:
Purchase of Dispenser 212,000.00 237,800.00 285,600.00
Purchase of Dispenser
Case 15,000.00 36,000.00 63,000.00
Other Raw Materials 74,200.00 92,800.00 122,400.00
Direct Labor 37,100.00 42,630.00 52,479.00
Operating Expenses:
Salaries and Benefits 20,400.00 21,420.00 22,491.00
Advertising 3,696.00 3,880.80 4,074.84
Office Supplies 3,760.00 3,948.00 4,145.40
Utilities 3,600.00 3,780.00 3,969.00
Permits and Licenses 4,515.00 4,740.75 4,977.79
Transportation 4,800.00 5,040.00 5,292.00
Rented Service Vehicle 18,000.00 18,900.00 19,845.00
Building Rental 0.00 0.00 0.00
Income Taxes 23,785.47 54,127.17 97,821.49
Total Cash Outflows 436,261.47 525,066.72 686,095.52
Cash Balance, End 103,738.53 286,671.81 536,576.29

AVENDGERS WATER VENDING MACHINE

Projected Balance Sheet
For the Calendar Years Endend 2013 – 2015
Table 5

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 2013 2014 2015
Assets
Current Assets:
Cash 103,739 286,672 536,576
Inventory, Dispenser 27,000 28,500 30,000
Total 130,739 315,172 566,576

Property, Plant and Equipment 15,405 15,405 15,405

Less: Accumulated Depreciation (5,135.00) (5,135.00) (5,135.00)
Net 10,270 10,270 10,270
Total Assets 141,009 325,442 576,846

Owners Equity

Avendgers Capital 141,009 325,442 576,846

Ending Capital 141,009 325,442 576,846

AVENDGERS WATER VENDING MACHINE

Projected Financial Analysis
For the Calendar Years Endend 2013 – 2015
Table 6

Financial Analysis (to the nearest units)

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 2013 2014 2015
A. Profitability Ratios
1. Profit Margins
( Net income to Sales) 19% 23% 24%
2. Return on Investment (ROI)
(Net income to total assets) 67% 51% 40%
3. Return on Equity (ROE)
(Net income to owner's 67% 51% 40%
Equity)

B. Payback Period - Schedule 1

Investment = Php30,000.00
(Cash)

Net Cash Flows: Recovered Investment

2013 = 95,141.86 95,141.86/12 =7,928.42 monthly

months
2014 = 162,381.52 30,000/7,928.42 3.78 months (payback
period)
2015 = 228,250.14

C. Internal Rate of Return (IRR) - Schedule 2

Investment Php30,000.00
Net Cash Flows:
2013 Php95,141.86
2014 162,381.52
2015 228,250.14
Php485,773.52

Php285,773.52 = Php161,924.51 Average Net Cash Flows

3 yrs

30,000
IRR = = 0.1853 at Period 3; 19%
Php161,924.5
1

D. FINANCIAL ANALYSIS

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 Balance sheet indicates the promising results as of total assets and

owners’ equity, with Php95, 445 for the first year, and favorable

increases on the subsequent years of operations.

Computed profitability ratios showed positive results with 19% profit

margin for the first year and better for the next two years. The Return

on Investment (ROI) and Return on Equity (ROE) will reach as high as

67% during the first year of operation.

The initial investment of Php30,000 reported in cash and capital

investments will be recovered within 5 and a half month from the time

of operation as shown in the payback period schedule. (Schedule #1).

The Internal Rate of Return (IRR) will have a 19% return of

investment based on the average net cash flow of Php161,924.51 for

the first 3 years of operations as shown in the computation in Schedule

2.

X. CONCLUSION

The proposed entrepreneurial venture is poised to pursue this project

not only for profit advantage but to push forward social, environmental and

economic relevance of technological development that will help businesses.

This project will give opportunity to those who do not have their own

businesses yet by buying this product they can earn favorable income.

As pioneer in producing bamboo lamp shade, this has a small market

share in surviving amidst the present and rising competition. Further, we

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give emphasis into selling bamboo lamp shade with the use of modern

techniques applied to our main product and with continuous research and

study we see various innovative plans into achieving an advance and state-

of-the-art merchandise.

I believe that if we consider reimagining our money, the water that we

intake, and our lives, we will be able to provide an entrepreneurial endeavor

with social responsibility to the community and the society as a whole.

With this good Branding image, we can see Breakthrough and Beyond.

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