CHAPTER 3

VIABILITY OF ESTABLISHING AN ERRAND-RUNNING BUSINESS IN CENTRAL BONTOC

A. IN TERMS OF MARKETING ASPECT

Marketing refers to activities undertaken by a company to promote the buying or selling of

a product or service. Marketing includes the advertising, selling, and delivering of products to
consumers or other businesses (Alexandra Twin).

Though this aspect, the proponents would attempt to determine the viability of an errand-
running business through an analysis of demand and supply which would verify whether there is
an available market for the proposed business.

Before the demand-supply analysis, the proponents conducted a survey in order to gather
the needed data. The result of the survey is as follows:

1. Do you hire people to do errands for you (Laundry, Babysitting, Housecleaning, etc.)?
 Yes
 No (Proceed to Question 3)

Response Percentage
Yes No Total Yes No Total
169 217 386 43.78% 56.22% 100.00%

This question seeks to determine whether the people of Central Bontoc pay for external
help in doing chores. Based on the result, people do pay for external help in doing chores
however, a greater percentage of the sample prefer not to. This would imply that the Bontoc
people prefer to do their chores by themselves.

2. How do you acquire people to do errands for you? (You may check more than one)
 We ask family members to do the errand or help us do them.
 We inquire from friends and neighbors if they know anyone who would like to do the
errand/work for/with us.
 Others (Please specify):

Item Response
Family Members 131
Friends and
90
Neighbors

This question determines the channels by which the respondents acquire the help they
need. Based on the result, the respondents still prefer to acquire help from family members
which means they prefer not to pay people to do so which coincides with the result of the first
question.
3. If we are to put-up an errand -running business, are you willing to avail of our services?
 Yes
 No (End) Please provide your reason:

RESPONSE PERCENTAGE
Yes No Total Yes No Total
307 79 386 79.53% 20.47% 100%

This question would help the proponents determine the existence of a potential market
for the proposed business and based on the result, a potential market does exist.

4. Below are the services that the business will be offering. If you are willing to avail of the given
service, please mark the boxes corresponding to the price you are willing to pay for the service
and the frequency of availing them. If you will not be availing the given service, please leave the
boxes blank.
Laundry A: Clothing-Hand Wash
Response Percentage Price Load Frequency
Yes No Total Yes No ₱40-50 ₱51-60 ₱61-70 1 to 4 5 to 9 10 1 2 3 4 5 6 Everyday
239 68 307 77.85% 22.15% 161 47 31 149 64 26 130 49 29 11 5 13 4

Laundry B: Clothing-Machine Wash

Response Percentage Price Load Frequency
Yes No Total Yes No ₱30-40 ₱41-50 ₱51-60 1 to 4 5 to 9 10 1 2 3 4 5 6 Everyday
226 81 307 73.62% 26.38% 154 43 29 131 56 38 118 49 29 7 5 12 6

Laundry C: Other Fabric-Hand Wash

Response Percentage Price Load Frequency
Yes No Total Yes No ₱60-70 ₱71-80 ₱81-90 1 to 4 5 to 9 10 1 2 3 4 Everyday
222 85 307 72.31% 27.69% 153 37 32 132 64 25 148 37 18 10 8

Laundry D: Other Fabric-Machine Wash

Response Percentage Price Load Frequency
Yes No Total Yes No ₱50-60 ₱61-70 ₱71-80 1 to 4 5 to 9 10 1 2 3 4 Everyday
232 75 307 75.57% 24.43% 158 51 23 131 66 30 156 34 17 11 8

Housekeeping
Response Percentage Price Frequency
Yes No Total Yes No ₱350-360 ₱361-370 ₱371-380 1 2 3 4 5 6 Everyday
239 68 307 77.85% 22.15% 97 54 88 152 35 20 12 5 9 6

Grocery Shopping A-Groceries Worth Less Than ₱1,000

Response Percentage Price Frequency
Yes No Total Yes No ₱60-70 ₱71-80 ₱81-90 ₱91-100 1 2 3 4 5 6 Everyday
188 119 307 61.24% 38.76% 112 31 13 32 99 32 27 13 5 5 7

Grocery Shopping B-Groceries Worth More than ₱1,000

 Response Percentage Price Frequency
Yes No Total Yes No ₱80-90 ₱91-100 ₱101-110 ₱111-120 1 2 3 4 5 6 Everyday
183 124 307 59.61% 40.39% 89 43 25 26 98 34 23 8 4 5 11

Garden and Field Work

Response Percentage Price Frequency
₱350- ₱361- ₱371- ₱381- ₱391-
Yes No Total Yes No 1 2 3 4 Everyday
360 370 380 390 400
225 82 307 73.29% 26.71% 120 19 19 14 53 112 32 23 13 44

Babysitting
Response Percentage Price Frequency
Yes No Total Yes No ₱350-360 ₱361-370 ₱371-380 1 2 3 4 5 6 Everyday
184 123 307 59.93% 40.07% 77 22 85 23 14 19 9 46 10 56

Child Transport
Response Percentage Price Frequency
Yes No Total Yes No ₱30-40 ₱41-50 ₱51-60 1 2 3 4 5 6 Everyday
175 132 307 57.00% 43.00% 112 33 30 19 7 10 7 76 10 46
This question in turn, determines the existence of a market for each of the services to be
offered by the proposed business. The results show that all of the services have potential market.
Based on these results above, the proponents could then conduct the demand-supply
analysis as follows:

Table 3A-1: Potential Market of the Proposed Business

Response Percentage
Yes No Total Yes No
307 79 386 79.53% 20.47%
*Refer to the result of question number 3 in the questionnaire

Table 3A-2: Summary of the Demand for the Services of the Proposed Business
Service Response Percentage
Yes No Total Yes No
Laundry - A 239 68 307 77.85% 22.15%
Laundry - B 226 81 307 73.62% 26.38%
Laundry - C 222 85 307 72.31% 27.69%
Laundry - D 232 75 307 75.57% 24.43%
Housekeeping 239 68 307 77.85% 22.15%
Grocery Shopping – A 188 119 307 61.24% 38.76%
Grocery Shopping – B 183 124 307 59.61% 40.39%
Garden and Field Work 225 82 307 73.29% 26.71%
Babysitting 184 123 307 59.93% 40.07%
Child Transport 175 132 307 57% 43%
*Refer to the results of question number 4 of the questionnaire
Table 3A-3: Analysis of Demand and Supply for Laundry
Laundry
Demand Free Market
Projected Target Suppl
Year A B C D
Population Market y
77.85 73.62 72.31 75.57 43.78% A B C D
% % % %
2020 12769 10155 7906 7476 7343 7674 4446 3460 3030 2897 3228
2021 12790 10172 7919 7489 7355 7687 4453 3466 3035 2902 3234
2022 12907 10265 7991 7557 7423 7757 4494 3497 3063 2929 3263
2023 13131 10443 8130 7688 7551 7892 4572 3558 3116 2979 3320
2024 13514 10748 8367 7912 7772 8122 4705 3662 3207 3066 3417
*Refer to the result of question number 1 for computation of supply rate
*Supply is product of the supply rate and Target Market
*Free Market is the difference between Demand and Supply

Table 3A-4: Analysis of Demand and Supply for Housekeeping

HOUSEKEEPING
Projected Target Market Demand Supply
Year Free Market
Population (79.53%) (77.85%) (43.78%)
2,020 12,769 10,155 7,906 4,446 3,460
2,021 12,790 10,172 7,919 4,453 3,466
2,022 12,907 10,265 7,991 4,494 3,497
2,023 13,131 10,443 8,130 4,572 3,558
2,024 13,514 10,748 8,367 4,705 3,662

Table 3A-5: Analysis of Demand and Supply for Grocery Shopping

GROCERY SHOPPING
Target Demand Free Market
Projected Supply
Year Market A B
Population (43.78%) A B
(79.53%) (61.24%) (59.61%)
2,020 12,769 10,155 6,219 6,054 4,446 1,773 1,608
2,021 12,790 10,172 6,229 6,063 4,453 1,776 1,610
2,022 12,907 10,265 6,286 6,119 4,494 1,792 1,625
2,023 13,131 10,443 6,395 6,225 4,572 1,823 1,653
2,024 13,514 10,748 6,582 6,407 4,705 1,877 1,701

Table 3A-6: Analysis of Demand and Supply for Garden and Field Work
GARDEN AND FIELD WORK
Projected Target Market Demand
Year Supply Free Market
Population (79.53%) (73.29)
2,020 12,769 10,155 7,443 4,446 2,997
2,021 12,790 10,172 7,455 4,453 3,002
2,022 12,907 10,265 7,523 4,494 3,029
2,023 13,131 10,443 7,654 4,572 3,082
2,024 13,514 10,748 7,877 4,705 3,172

Table 3A-7: Analysis of Demand and Supply for Babysitting

 BABYSITTING
Projected Target Market Demand
Year Supply Free Market
Population (79.53%) (59.93%)
2,020 12,769 10,155 6,086 4,446 1,640
2,021 12,790 10,172 6,096 4,453 1,643
2,022 12,907 10,265 6,152 4,494 1,658
2,023 13,131 10,443 6,259 4,572 1,687
2,024 13,514 10,748 6,441 4,705 1,736

Table 3A-8: Analysis of Demand and Supply for Child transport

CHILD TRANSPORT
Projected Target Market Demand
Year Supply Free Market
Population (79.53%) (57%)
2,020 12,769 10,155 5,788 4,446 1,343
2,021 12,790 10,172 5,798 4,453 1,345
2,022 12,907 10,265 5,851 4,494 1,357
2,023 13,131 10,443 5,953 4,572 1,381
2,024 13,514 10,748 6,126 4,705 1,421

The tables above all express a positive result with Grocery Shopping A and Housekeeping
as the most demanded services while Child Transport as the least demanded. However, the
computed free market for each service is too great for the proposed business to cater them all.
Thus, the proposed business will be using the normal capacity of the business in computing for
its projected revenue which is shown below:
Note: The maximum daily capacity of each worker is 12 hours with excess over 8 hours
considered as overtime. The proponents assumed that the normal daily capacity of each worker
is 8 hours.
Table 3A-9: Projected Annual Revenue for Laundry (In Philippine Peso)
LAUNDRY - A
Total
Completion Average Load Per
Daily Frequency
Time Per Number of Transaction Price Per Annual
Year Capacity of Demand
Transaction Transactions in Transaction Revenue
(in in a Week
(in Hours) in a Day Kilograms
Hours)
2020 16 3 5 4 45.00 1 36,000.00
2021 16 3 5 4 45.00 1 36,000.00
2022 24 3 8 4 45.00 1 57,600.00
2023 24 3 8 4 45.00 1 57,600.00
2024 32 3 10 4 45.00 1 72,000.00
LAUNDRY - B
Total
Completion Average Load Per
Daily Frequency
Time Per Number of Transaction Price Per Annual
Year Capacity of Demand
Transaction Transactions in Transaction Revenue
(in in a Week
(in Hours) in a Day Kilograms
Hours)
2020 8 3 2 4 35.00 1 11,200.00
2021 8 3 2 4 35.00 1 11,200.00
2022 16 3 5 4 35.00 1 28,000.00
2023 16 3 5 4 35.00 1 28,000.00
2024 24 3 8 4 35.00 1 44,800.00
 LAUNDRY - C
Total
Completion Average Load Per
Daily Frequency
Time Per Number of Transaction Price Per Annual
Year Capacity of Demand
Transaction Transactions in Transaction Revenue
(in in a Week
(in Hours) in a Day Kilograms
Hours)
2020 16 3 5 4 65.00 1 15,600.00
2021 16 3 5 4 65.00 1 15,600.00
2022 24 3 8 4 65.00 1 24,960.00
2023 24 3 8 4 65.00 1 24,960.00
2024 32 3 10 4 65.00 1 31,200.00
LAUNDRY – D
Total Average
Completion Load Per
Daily Number of Frequency
Time Per Transaction Price Per Annual
Year Capacity Transactions of Demand
Transaction in Transaction Revenue
(in in a Day in a in a Month
(in Hours) Kilograms
Hours) Day
2020 8 3 2 4 55.00 1 5,280.00
2021 8 3 2 4 55.00 1 5,280.00
2022 16 3 5 4 55.00 1 13,200.00
2023 16 3 5 4 55.00 1 13,200.00
2024 24 3 8 4 55.00 1 21,120.00

Table 3A-10: Projected Annual Revenue from Housekeeping

HOUSEKEEPING
Total
Completion Average
Daily Frequency
Time Per Number of Price Per Annual
Year Capacity of Demand
Transaction Transactions Transaction Revenue
(in in a Week
(in Hours) in a day
Hours)
2020 24 8 3 355.00 1 55,380.00
2021 24 8 3 355.00 1 55,380.00
2022 32 8 4 355.00 1 73,840.00
2023 32 8 4 355.00 1 73,840.00
2024 40 8 5 355.00 1 92,300.00

Table 3A-11: Projected Annual Revenue from Grocery Shopping

GROCERY SHOPPING -A
Total
Completion Average
Daily Frequency
Time Per Number of Price Per Annual
Year Capacity of Demand
Transaction Transactions Transaction Revenue
(in in a Week
(in Hours) in a Day
Hours)
2020 16 1.5 10 65.00 1 33,800.00
2021 16 1.5 10 65.00 1 33,800.00
2022 24 1.5 16 65.00 1 54,080.00
2023 24 1.5 16 65.00 1 54,080.00
2024 32 1.5 21 65.00 1 70,980.00
 GROCERY SHOPPING -B
Total
Completion Average
Daily Frequency
Time Per Number of Price Per Annual
Year Capacity of Demand
Transaction Transactions Transaction Revenue
(in in a Week
(in Hours) in a Day
Hours)
2020 8 2 4 85.00 1 17,680.00
2021 8 2 4 85.00 1 17,680.00
2022 16 2 8 85.00 1 35,360.00
2023 16 2 8 85.00 1 35,360.00
2024 24 2 12 85.00 1 53,040.00

Table 3A-12: Projected Annual Revenue from Garden and Field Work
GARDEN AND FIELD WORK
Total
Completion Average
Daily Frequency
Time Per Number of Price Per Annual
Year Capacity of Demand
Transaction Transactions Transaction Revenue
(in in a Month
(in Hours) in a Day
Hours)
2020 24 8 3 355.00 1 12,780.00
2021 24 8 3 355.00 1 12,780.00
2022 32 8 4 355.00 1 17,040.00
2023 32 8 4 355.00 1 17,040.00
2024 40 8 5 355.00 1 21,300.00

Table 3A-13: Projected Annual Revenue from Babysitting

BABYSITTING
Total
Completion Average
Daily Frequency
Time Per Number of Price Per Annual
Year Capacity of Demand
Transaction Transactions Transaction Revenue
(in in a Week
(in Hours) in a Day
Hours)
2020 24 8 3 355.00 7 383,400.00
2021 24 8 3 355.00 7 383,400.00
2022 32 8 4 355.00 7 511,200.00
2023 32 8 4 355.00 7 511,200.00
2024 40 8 5 355.00 7 639,000.00

Table 3A-14: Projected Annual Revenue from Child Transport

CHILD TRANSPORT
Number of Frequency
Number Number of
Transactions Price Per of Annual
Year of Transactions
in a Day per Transaction Demand in Revenue
Workers in a Day
Worker a Week
2020 15 2 30 35.00 5 210,000.00
2021 15 2 30 35.00 5 210,000.00
2022 22 2 44 35.00 5 308,000.00
2023 22 2 44 35.00 5 308,000.00
2024 29 2 58 35.00 5 406,000.00
 The results above shows that Babysitting would be providing the greatest revenue, without
considering the related expenses, to the proposed business. This is due to the higher number of
service crews and operating hours assigned to it. Laundry B, on the other hand, provides the least
revenue considering that it also has the least number of service crews and operating hours
assigned.

To further assess the viability of establishing an errand-running business in Central

Bontoc, a Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis was used. This
tool would be used as a guide for assessing the performance, competition, risk, and potential of
a business which would help tell the business where it needs to improve internally, as well as
develop strategic plans. The table that follows shows the summary of the SWOT Analysis.

Table 3-1: SWOT Matrix

Strengths: Weaknesses:
1. It is the only 1. New in the market place.
errand- running 2. The capacity of the
business in Central proposed business is far
Bontoc. lower than the demand
2. The business does for its services
not need a wide
space for its office.
3. Offers almost all
necessary
household chores.
4. Reliable, honest
and respectful
employees.
Opportunities: SO Strategies WO Strategies
1. No direct S1 S3 S4 O1 O2 O3 O4 W2O2
competitors 1. Continuous efficient 1. Increase in number of
2. Life is getting and effective service crews
busier advertisement of
3. Changing the business
Lifestyle 2. Continuous
rendering of quality
 4. Increasing service to maintain
Demand adhesion of
customers

Threats: ST Strategies WT Strategies

1. Local Practices S4 T1 T2 W1 W 2T1 T2
and Traditions 1. Continuous 1. Effective Pricing Strategy
2. Presence of Efficient and 2. Increase in number of
indirect effective service crews
competitors advertisement of
the business
2. Assuring excellent
customer service to
have advantage
over indirect
competitors.

“Location can influence a business’ ability to market itself, the competition it faces from
businesses, the total cost of operation, taxes the business owner has to pay and regulations they
must follow (Thomas Oppong).” The office of the proposed business will then be located at the
fourth floor of Fesway Building, Eyeb, Poblacion, Bontoc, Mountain Province. The location is quite
accessible and thus, the customers may conveniently visit the office for inquiries and reservations.

Moreover, in response to the low capacity of the business in meeting demand, the number
of service crews will be increased annually.

Pricing strategies also play a part in the success of the business. “It defines the value that
your product are worth for you to make and for your customers to use (Patrick Campbell)”.
Considering this, the proponents will be using a combination of Cost Plus Pricing, Perceived Value
Pricing, and Going-Rate Pricing Method. The costs of the services will first be estimated,
compared against the prices in similar businesses, before designing survey questionnaires that
will be floated to the customers in order to obtain the prices that they are willing to pay for each
service.
 The proposed business will also be employing various modes in order to give our
customers the easiest, fastest, and most convenient modes of availing our services and .
obtaining Customer Support Services. These shall include availing through Short Messaging
Services (SMS), Phone Calls, and Social Media Messaging Features. The customer may also
visit the office of the proposed business if they prefer a direct interaction in person.

“Well-designed marketing and promotional strategies ensure long-term success, bring in

more customers and ensure profitability for businesses (Ajeet Mishra);” thus, to facilitate this,
tarpaulins will be posted at Kadchog beside “Heritage”, at the overpass in Poblacion, at Finew,
and at Pakkil. Then, a signage will be placed at Fesway Building. Flyers will also be distributed
for the first months prior and after the opening of the proposed business. Social Media Networks
such as Facebook, Instagram, and Twitter would also be utilized to advertise and increase the
publicity of the proposed business. CSR activities to be conducted twice a month would also help
promote the business to the community.

“A logo is much more than just an image; it is a point of recognition for clients and an
important foundation for the branding of your company (thinkchrysalis). The logo of the business
is shown below with each of its features explained:

The proposed business will be named “Jack-for-All Errand Services”. Jack which means
manual labor (color dictionary) since the nature of proposed business is primarily to render
manual labor. For-All which denotes the market of the proposed business who are basically
everyone who has the capability and resources to avail the services of the proposed business.

The logo on the other hand shall contain the name of the business Jack-for-All colored
with brown, Errand services colored with blue, a clock and a man in place of the letter “a” in “Jack”,
and a house and two lines below colored with green, and a pair of wings.

The color brown symbolizes security, honesty, and dependability (Jennifer Bourn) which
are some of the various traits that the proposed business shall embody to deliver the best services
to its customers.

Blue as the color of the spirit invokes rest (Jennifer Bourn), which is one of the primary
purpose of the proposed business in envisioning itself as the primary partner of its customers in
conducting daily errand: to provide an opportunity for buy individuals to rest.

The clock and the man forming the letter “a” connotes time. The proposed business “gives”
time to its customers by doing their errands for them. This shall ultimately result to the meaning
of blue.

A house was used in the logo to symbolize that the nature of the business of rendering its
services within the home of the clients. The house, however, was not fully drawn to show that the
business does not limit itself in rendering its services in houses but also outside them. The house
was colored green to connote the “healing power” (Jennifer Bourne) of this color through rest.

The two green lines in the lower part of the logo connotes rice terraces which shall show
that the business also render its services on fields and gardens.

Lastly, the wings symbolizes the swiftness and efficiency of the services. It also
symbolizes the light feeling of not being overburdened with a lot of tasks.
B. IN TERMS OF TECHNICAL ASPECT

The technical aspect should also be examined in order to discern the viability of the
proposed business. Through this aspect, the proponents would plan the appropriate activities and
attempt to determine whether the needed materials including equipment, supplies, inventories,
and others are available for purchase and suitable for use to the business. The result of these
plan and determination would lead the proponents towards the determination of the viability of an
errand-running business in Central Bontoc in terms of technical aspect.

Following the objective above, the proponents were able to plan out the activities to be
done from the planning stage until the operation stage of the proposed business. These activities
are as follows:

A feasibility study will be conducted in order to determine the viability of the proposed
business. This would provide a framework and direction of the study. This study was scheduled
to be conducted from January to May of 2018.

Should the proponents be able to determine that establishing an errand-running business

in Central Bontoc is indeed viable, funds would have to be obtained in order to put-up the
business. The said funds would come from the contribution of the partners and from external loan
from financial institutions.

Afterwards, the Articles of Partnership and By-Laws of the proposed business will be
drafted and finalized by the partners before business permits and other legal requirements are
processed and accomplished.

The proposed business would then start hiring employees to help in establishing the
business and later on, to operate the business. They will be screened and those who passes the
screening will be formally hired and oriented regarding the policies of the business and the
specifics of their job.

The purchase of needed equipment, furniture, supplies, materials, and inventories would
follow before advertisement of the business starts. In this, flyers would be distributed, tarpaulins
would be posted, and social media networks will be utilized to facilitate the process of letting the
community know about the business and attracting customers.

When all of these were done, the proposed business would then formally operate.
Table 3B-1: Gantt Chart of Activities
2019 2020
ACTIVITIES
J F M A M J J A S O N D J
 Feasibility Study

 Securing of Funds

 Partnership Formation
 Processing of Business
Permits and Legal
Requirements

 Selection and Hiring of

Employees

 Purchase of Needed
Equipment, Furniture,
Supplies, Materials and
Inventories

 Advertisement of the
Business

 Start of Formal
Operation

Moreover, the proponents were able to determine that the needed assets including
equipment and other materials for the establishment of the proposed business were available.
These would be purchased within Bontoc, and those that are not available in the said location
would be purchased outside.

Another facet of the technical aspect is the flow of the business’ operation. The operation
of the business starts when the customer contacts the business either though social media
networks, text messages, calls, emails, or through direct contact. The receptionist who receives
the message from the customer determines whether the customer would be availing the service
of the business on the same day or if he/she would like to make a reservation for another day.
Service crews would immediately be called for Same-day transactions while reservations will be
marked on the business’ service schedule. The receptionist would also take the necessary
customer information. For new customers, a client information form will be brought to them prior
the conduct of the service.

When the service crew arrives to the office of the proposed business, the receptionist will
be giving him the necessary client information. The service crew will then locate the client’s
domicile, will be given instructions by the client if needed, and will perform the service. Afterwards,
a service completion form will be signed by the client.

An invoice will be sent to the client, and in the his/her most convenient time, he/she should
visit the office of the business and pay for the service rendered to him/ her to the cashier.
C. IN TERMS OF MANAGEMENT ASPECT

Management consists of interlocking functions of creating corporate policy and organizing,

planning, controlling, and directing an organization’s resources in order to achieve the objectives
of that policy (Peter Drucker).

The proponents sets to determine the viability of establishing an errand-running business

in Central Bontoc in terms of management aspect through the designing the appropriate policies
that suite the proposed business, setting standards for the employees, and making sure that the
personnel of the proposed business can and will work towards the success of the business.

“If your errand business has other goals such as sharing profits, attaining a large portion
of income and maintaining limited liability, opt for a partnership (Marie Huntington),” with that said,
the proponents suggests the proposed business to be established as a partnership. Based on
estimates, the capital needed for the formation of the business is not small and with partners
contributing to the said capital, the burden is shared and thus, not too great for one person to
bear. Furthermore, a corporation is not suited since the proposed business is small and so is the
locale.

When all members of an organization work together toward the collective good of a
company or group, it creates a sense of solidarity within the organization, because all team
members are sharing the same vision and conveying the same message (Lisa McQuerrey). Both
the vision and mission statements play an important role in the organization. These statements
are important tools of strategic planning, define the purpose of the organization and provide a
focal point that helps to align everyone with the organization, thus ensuring that everyone is
working towards a single purpose.

With that said, the proponents sets the following as the Vision, Mission, Goals and
Objectives of the proposed business:
Vision Statement
A sustainable provider of errand services which functions as the primary partner
of the people in the conduct of daily errands in Bontoc, Mountain Province.

Mission Statement
To provide high quality errand services through competent and efficient
workers.

Goals and Objectives

  To provide services that are not only effective but are also efficient.
 To develop a sustainable business surviving off on its own cash flow.
 To exceed customer expectations regarding the services of the business.
The management style of the proposed business also plays a major role as this can help
ensure loyalty from the employees. The proposed business will be using the Consultative Style
of Management in order to increase participation and thus, loyalty from employees. This style is
also simpler to implement since the business has only a few employees. Furthermore, this would
lead to better decisions since the opinions of the workers who directly interact with the customers
are taken into consideration (Grace College).

Detailing the workforce, the proposed business will be employing a manager, a cashier, a
receptionist, fifteen (15) part-time service crews and a part-time bookkeeper. The proposed
business would then operate for a total of 12 working hours from 7:00 am to 7:00 pm excluding a
one hour lunch break..

Furthermore, Richard Branson stated, “Clients do not come first. Employees come first. If
you take care of your employees, they will take care of your clients.” Thus, the proposed business
will be ensuring that employees will get all benefits that the proposed business can afford to award
them. The benefits to be given the employees include salaries, mandatory benefits including SSS,
PhilHealth, and HDMF, overtime pays, holiday pays, and other fringe benefits.

To ensure that the employees are at their best condition, they are also entitled to sick
leaves and emergency leaves that are both with pay. They are even entitled to vacation leaves.
Employees will also get trainings to enhance their skills and capabilities.

All of these aspects, in order to work, must be guided by a business policy. Business
policies are the guidelines developed by an organization to govern its actions. They define the
limits within which decisions must be made. Furthermore, business policy defines the scope or
spheres within which decisions can be taken by the subordinates in a organization. It permits the
lower level management to deal with the problems and issues without consulting top management
every time for decisions (Prachi Juneja).

Moreover, the proposed business would impose certain restrictions, qualifications, and
requirements concerning the recruitment, screening, and hiring of employees in order to make
sure that the proposed business would be providing quality services through its employees.

Policies regarding the behavior and attitude would also be imposed in order to thoroughly
screen prospective employees not only based on their achievements but also on their personality.
Furthermore, grounds regarding termination would also be established in order to make sure that
employees do not abuse the trust given to them.
D. IN TERMS OF SOCIO-ECONOMIC ASPECT

Businesses cannot exist without the participation of the various groups that holds an
interest in the establishment of the business. These groups would not have an interest in the
business if it does not provide them any benefit. Thus, examining the benefits of the proposed
business to its various stakeholders in order to keep them invested in it can aid in the
determination of the value and viability of establishing the proposed business in the chosen locale.

The government is one of the stakeholders of the proposed business that provides an
opportunity for the business to conduct its operation. It provides the business an environment
supported by peace and order. Compliance with government regulations would also show that
the business and its services are safe. With all these benefits that the government can provide to
the proposed business, it is only proper that the business can provide a benefit of its own.

Taxes are the main source of government funds in performing its various functions. With
that said, the proposed business can help the government in conducting its functions by paying
business taxes. Licenses and other regulatory fees that the proposed business will be paying
prior and during its operation (shown below) will also contribute to government funds.

Table 3D-1: Taxes and Licenses

Particulars Amount
BIR Annual Registration ₱500.00
SEC Registration 1,500.00
DOLE Fee 15.00
DTI Registration 200.00
Barangay Clearance 25.00
Police Clearance 45.00
Sanitary Permit and Inspection Fee 270.00
Mayor’s Permit 1,050.00
Business Plate 125.00
Business Sticker 100.00
Fire Code Inspection Fee 225.00
Total ₱4,055.00

Furthermore, the business can also provide employment which would help in the
government’s effort of solving unemployment. The proposed business, at its starting phase, won’t
be able to employ many, however, the number of people that it can employ will grow as the
business also expands. Moreover, with employment, the government can also collect for income
taxes.
 Unemployment is not only the government’s problem but also the community’s. Thus, the
establishment of the proposed business can help decrease the number of “tambays” in the
community. Furthermore, the business can also employ students, especially college students,
and can therefore help parents and students derive money that they can use in their studies.

Another problem in the community is the proper disposal of waste. To help the community
with regards to this matter, the proposed business plans to collect recyclable wastes from houses
and use them to create new products that can be used or sold, whichever is appropriate. The
employees of the business would also participate in Clean-up drive activities of the community at
least twice a year. The estimated expenses is as follows:

Clean-up Drive Expenses

Particulars Allocated Cost

Meals ₱6,000.00
Snacks 3,200.00
Garbage Bags 1,300.00
Total ₱10,500.00

Another stakeholder of the business are its customers. Without customers, there is no
company (Michael LeBoeuf). With that said, the business must ensure that its customers are
getting the benefits that they needed and more.

Availing the services of Jack-for-All Errand Services can help reduce the time constraints
and limitations that busy individuals encounter. They would then be able to focus on what they
are doing (i.e. work). Afterwards, they can use the remaining time to rest and recover. For
instance, the load of working parents would be lessened. They won’t have to clean the house or
wash the laundry just after coming home from work.
E. IN TERMS OF ACCOUNTING ASPECT

Accounting as the language of business (Warren Buffett) communicates the results of

business operations to various parties who are directly or indirectly interested in the economic
affairs of the business. It informs them the economic status of the business organization and gives
them insights regarding the true financial standing of the business.

Thus, determining the viability of an errand-running business in Central Bontoc in termns

of accounting aspect entails the discernment of whether the accounting system to be used is
appropriate and doable.

Considering the nature of the business, the proponents determined that a simple
accounting system should be used in the proposed business. With this, transactions would be
fast, simple, and still retains security. The accounting cycle of the business will be as follows:

1. Identification of transactions
 Transactions that causes a change in the firm’s resources or obligations are
identified and relevant economic data regarding these transactions are collected.
2. Recording in the General Journal
 The transactions are recorded in the general journal.
3. Posting to the General Ledger
 The journal entries are posted to the general ledger periodically. The general
ledger summarizes all transactions recorded in the journals.
4. Preparation of the Unadjusted Trial Balance
 This device is used to periodically test the equality of debits and credits as recorded
in the ledger accounts. This involves the transfer of the ledger account’s open
balances to another accounting form to check the accuracy of debit and credit
totals.
5. Journalizing and Posting of Adjustments
 Adjustments are used to bring assets, liabilities, revenues, and expenses up-to-
date at the end of the accounting period. These are recorded in the general journal
then posted to the ledger.
6. Preparation of the Adjusted Trial Balance
 This device is used to confirm the equality of debit and credit totals after
adjustments. The Adjusted Trial Balance also lists all the account balances that
will be used in the preparation of financial statements.
7. Preparation of Financial Statements
 These are formal reports showing the financial effects of transactions and other
events that are grouped into broad classes according to their economic
characteristics.
8. Journalizing and Posting of Closing Entries
 Closing Entries are journal entries that bring temporary accounts to zero balance
and transfer their balance to the permanent capital account at the end of the
accounting period.
9. Preparation of the Post-Closing Trial Balance
 The accounts in the post-closing trial balance are exactly the same as the open
accounts available at the beginning of the subsequent accounting year. These
accounts comprise the beginning balances of the SFP accounts.
10. Journalizing and Posting of Reversing Entries
 The use of reversing entries is optional in the accounting cycle because it does not
change the amount reported in the financial statements. This is done to simplify
the recording of recurring transactions of the next accounting period. Reversing
entries are journal entries made at the beginning of the next accounting period and
are exactly the reverse of some adjusting entries.

Furthermore, the books to be used by the proposed business are as follows:

General Journal

 This records all the transactions of the organization, other than those
recorded in special journals, in chronological order.
Cash Receipt Journal

 This is a specialized journal that records and tracks cash collections.

Cash Disbursement Journal
 This is specialized journal that records and keeps track of the cash
outflows of the organization.
General Ledger
 This is where individual transactions from the general journal that comprises
the ordinary transactions of the business are posted, the adjusting and closing
entries as well.
 Aside from the accounting system, the proposed business will also be designing internal
control measures in order to increase the security, efficiency, and effectiveness of operation.
All cash collections must be recorded in the cash book of the cashier and also in the books
of the bookkeeper. Receipts shall also be issued every time that cash is collected and is kept by
the cashier. At the end of business hours, the cashier has the duty to count daily cash collections
of the business to be verified by the Manager. Afterwards, the cash collections shall be deposited
by the manager to the bank account of the business within the next banking hour. The original
copy of the deposit shall be kept by the manager while a copy shall be kept by the bookkeeper.
All cash disbursements must be recorded in the book of the cashier and also in the books
of the bookkeeper. Receipts shall also be issued every time a disbursement is made and are kept
by the Cashier. Disbursements for the purchase of supplies must be approved by the manager
while any major disbursements involving the purchase of equipment must be approved by the
partners.
The supplies to be used by the business shall be monitored by the manager. He must
ensure that there are sufficient supplies available for the use of the business and has the duty to
prepare the necessary documents for their procurement.
CCTV Cameras shall be installed at the head office of the proposed business to monitor
the premise. This will help secure the entity’s equipment from theft. Equipment shall also be
physically checked on a daily basis by the assistant manager.
Furthermore, the bookkeeper has the duty to record the liabilities of the business. Any
adjustment to these account shall be authorized and verified by the manager. Payrolls shall also
be prepared by the bookkeeper, authorized by the manager, and paid by the cashier. Salaries of
the workers shall be based on the transactions rendered to clients as recorded in the logbook of
workers.
F. IN TERMS OF FINANCIAL ASPECT
 II. FACTORS AFFECTING THE VIABILITY OF ESTABLISHING AN ERRAND-RUNNING
BUSINESS IN CENTRAL BONTOC

A company’s stability and profitability are interdependent on its ability to quickly identify
and respond to changes in the external environment (Tricia Jessee). The factors affecting the
viability of establishing a business definitely plays a major role in the conduct of a study with
regards to the determination of a business is viable or not.

With this, the proponents have also taken into consideration the fact that in order to fully
determine the viability of establishing an errand-running in Central Bontoc, both internal and
external factors must be determined in order to address any complication that may arise from
them.

With the conduct of these study, the proponents were able to determine the following
factors that mostly and least affect the viability of establishing an errand-running business in
Bontoc through the response gathered from the respondents through questionnaires and informal
interviews.

The top three factors that affects the viability of establishing an errand-running business
in Central Bontoc starting from the top are: The level of income of customers, The quality of the
services offered by the business, and the ease and convenience of availing the service/s.

“Adi kami makaavail si services nu maid pangbayad mi (we can’t avail for services if we
have nothing to pay for it)”, “Siyempre, tay nu afford mi et iavail mi (Of course, because if we can
affort it then we will avail them)”. These statements sum up the response of our respondents when
we asked why they have chose The Level of Income of Customers as the factors with the greatest
effect. Customers as one of the main stakeholders of a business can determine its fate. Without
customers, you don’t have a business, you have a hobby (Don Peppers). If customers have
income that exceeds what they need, the business can be able to entice more to avail of their
services. However, should the level of income of the customers be just enough to pay for their
basic necessities, then persuading them to avail for services of the business will be a lot more
difficult.

The Quality of the Services Offered by the Proposed Business ranked second as the factor
with the greatest effect. “Tay nu mayat an quality et adu ma attract ay customer, et once ay ma
ammuan da ay mayat nan quality, et they stay (Because if the quality is good, customers will be
attracted and once they find out the the quality is good, they’ll stay).” This statement basically
states the effect of having good quality products. Customers would continue to pay for services
only if they are satisfied with its quality and, in relation to the previous paragraph, they have the
means for it. Why would anybody keep on paying for things that are of low quality? Customers
remember the service a lot more than the price (Lauren Freedman).

Ease and Convenience of Availing the Service/s. “Nu pay nu layden mi ay i-avail ngem
adayu kadan mi? (What if we want to avail however, our location is far from you?”, “Mas nalaklaka
ay nan neighbor or kapamilya ay baunem kesa tawagan mi pailng dakayu or message ay
mabaybayag (It is easier to ask help from neighbors or family members than to call for a business
establishment that would take longer).” In this factor, the responses point out that no matter how
willing a customer is to avail for the services of the business, if availing such service is more of
an inconvenience, then it is for naught. Humans want things to be easy and the customers of the
business are human.

The three factors previously discussed poses the greatest possible effect to the viability
of establishing an errand-running business in Central Bontoc. These factors have great effects,
both negative and positive, to the objective of this study. Positive in the sense that if these factors
are present, then it is possible to say that it is viable to establish an errand-running business in
Central Bontoc. On the other hand, should these factors be absent it follows that the establishment
of an errand-running business in Central Bontoc is not viable. In response, the proponents have
given suggestions an strategies in order for these factors to be satisfied as discussed in the
previous discussions in this study.

Moving forward, the factors with the least effects to the viability of establishing an errand-
running business in Central Bontoc are The Contribution of the Proposed Business to the
Community; Laws, Regulations, and Norms Imposed in the Locality; and The Existence of Direct
and Indirect Competitors of the business. Accordingly, “Maid pakibyang mi nu sinu nan mangikkan
as long as masapu nan masapo (We don’t care who’ll do the job as long as it gets done.” Based
on the response to the informal interviews, these factors have the least effect since they do not
directly affect the respondents, as long as the top factors were satisfied, then it is fine.

However, regardless of how unlikely these factors can affect the viability of establishing
an errand-running business in Central Bontoc is, it is still important to note that theses factors still
have an effect, if not directly then indirectly.