Executive Summary

Our business “Deliceiux Palitaw Hauz” is a kind of Kakanin foods with a different
flavors. Deliceiux is a French world meaning Delicious. The product’s price will surely
fit with the student’s and other customer budget and whoever want to purchase. It is just
P25.00 pesos for every unit of delicious and nutritious Kakainin. We have decided to sell
outside the school campus because our target markets aren’t just the students and
teachers. Our product is available for anyone who is craving for a Palitaw product. We
want everyone to taste and experience the product that we offer. It is very affordable for
those who want to buy it.

The advantage of the business is focuses to serve one product that has a different
features and compare to the competitors the Deliicieux Palitaw Hauz. The uniqueness of
this product is that there’s no entrepreneur build a business like Palitaw Hauz here in
Tacurong City. Palitaw Hauz offers different kind of Palitaw flavor. The business has two
kind of product, the Palitaw Original and the Palitaw Special. The flavor of Palitaw
Original is Sugar Cane Bar and the flavor of Palitaw Special are chocolate, yema and
ube,

The working capital of the business is P153,626 and it will be from our personal
investments and it will be divided by seven that will cost us P21,946.57 each. Our
business is open every day, we expect the everyday sales of the business is 3,750 pesos
because we produce 150 boxes of Palitaw product that cost of 25 pesos per box. The cash
flow and the expenses will be recorded to monitor whether our business is going well or
not. The business decisions will come from the partners.

Based on our research ,the proponents found out that though the competitors have a
lot of strengths they can’t penetrate bigger marketsbecause some customers perceived
cleanliness as an important factor in food industry. Being new in the market the
proponents saw this weakness as an opportunity to enter the market.
Palitaw being a native delicacy is a good product as long as it is rebranded and
provided a new image as a dessert not only for fiesta but for all occasions. The

Delicieux Palitaw Hauz ǁ 1

manufacturing of the product must be established to assure the quality of the product so
that customers will be satisfied, and will come coming back for more.
The proponents believe that the best form of business ownership for this business is a
general partnership because it has a bigger capcity to provide finaces and at the same
time there are more skilled worker that can be a help in the growth of the business.
Based on the results shown in the financial aspect this business is profitable. The
payback period is determined to be at 293 days, therefore the proponents will wait for
293 days for their investment to be returned.

Delicieux Palitaw Hauz ǁ 2

 I. Introduction

A. Name and Address of Business

The Business will be small Snack Hauz name “Delicieux Palitaw Hauz” the
place of business is located at Buenaflor, National Highway front of STI College
Tacurong City and Public Market Buluan Maguindanao.

B. Name(s) and Address(es) of Principal(s)

This small business owned by seven persons namely:

1. Haifa B. Kamsa 4.. Noramin T. Amba

09755062360 09951824797
Tacurong City Tacurong City
Haifakamsa@gmail.com Noraminamba@gmail.com

2. Baidido M. Paglas 5. Harun S. Kadatuan

09051964469 097590499891
Tacurong City Tacurong City
Paglasbaidio@gmail.com Kadatuanharun@gmail.com

3. Aipha K. Mangelen 6. Maisarah K. Labay

09365847938 09971691673
Tacurong City Tacurong City
Aipzhany@gmail.com LabayMhai@gmail.com

Delicieux Palitaw Hauz ǁ 3

 7, Johanna Dimaguil

09354633477
Tacurong City
Dimaguiljho@gmail.com

C. Nature of the Business

The business has a hybrid form, since the entity shall be manufacturing the
products and be responsible also of selling their products directly to their customers.
The raw materials will be from the contracted supliers and these will be converted as
palitaw which will be subsequently sold to target markets.

D. Statement of Financing Needs

The beginning capital of our business is P150,000.00 which will be from our
personal investment. The P153, 626 which will be divided into 7, so we will be
investing P21, 946.57 each.

Project Cost (in Php)

Working Capital

Materials 36,361
Salaries and wages 25,000
Equipment 40,000
Kitchen Supplies 25,000
Rent 5,000
Permits and Licenses 3,050
Prepaid Advertising 1,399
Utilities 3,950
Total Working Capital 139,660
Total 139,660
Contingency (10%) 13,966
Total Project Cost P 153,626

Delicieux Palitaw Hauz ǁ 4

 Supplies Quantity Amount Total
In 12 months
Dishwashing 16 units 45 per Unit 8,640
Liquid
Sponge 16 units 30 per Unit 5,760

Steel Wool 16 units 15 per Unit 2,880

Pens 1 box 59.75 per Box 717

Receipts 8 pcs 16.25 1,560

Journal 8 pcs 22.5 2,160

Grand Total of P 21,717.00

Supplies/year

Salaries Total

5 personnel P 5000/m *12 months P 300,000/year

Fringe Benefits Total

PhilHealth 5 personnel *12 months 6,000
100/month
SSS 5 personnel *12 months 22,698
378.30/month
Total in 1 year P 28,698.00
Source: PHIC, SSS Websites

Delicieux Palitaw Hauz ǁ 5

Repair and 2 stalls 150/month P 3,600/year
Maintenance

Waste Disposal 2 stalls 45/month P 1,080/year

Total P 4,680.00/year

Depreciation P 4,000 every year = 40,000/ 10 years useful life

Permits and Licenses P 3,050

Delicieux Palitaw Hauz ǁ 6

 II. Industry Analysis

A. Future Outlook and Trends

The Delicieux Palitaw Hauz will be expected to become a well-known stall

business throughout Tacurong and Buluan. The business improve their service and
add more product to attract more customer and build a new branch of Palitaw Hauz in
other place.

B. Analysis of Competitors
Native Delicacies are only sold through some micro enterprise in the area
specifically in the market. The entity considers them as primary competitors.
Based on researches the proponents come up with the following analysis;

Strength
 Customer loyalty, since these native delicacies had been offered by our
competitors long time ago. Thus they already have established a strong
connection among their customers.
 They already perfected their production process thus they are able to
reduce their price. Also they already have a strong supply chain.

Weakness
 Sanitation. Most customers considers the cleanliness of the products, thus
they can’t penetrate other distribution channels such as big supermarkets
in the locality.

Delicieux Palitaw Hauz ǁ 7

 Opportunities
 The entity considered the weakness of the existing competitors as an
opportunity to enter the market. The entity shall be offering the palitaw
with an impression that it is clean and free from contamination.

Threats
 Since the competitors already have a strong connection with their
customers, the researchers perceived that it will be a threat to the new
business.
 Also it is perceived by the researchers that the suppliers of raw materials
can control the price thus the entity can’t set its production lower than the
competitors who are already in the market.

Market Segmentation

The business aims to target the households of Tacurong City, Sultan Kudarat.
Filipinos love to eat native delicacies especially during celebrations like birthdays or
fiesta. The entity will focus on meeting the demands of the household sectors of
Tacurong City.

Demographic

People now a days spending more time eating various foods such as street foods,
fast foods and instant foods etc. According to Kantar Worldpanel, which tracks the
shopping behavior of 3,000 Filipino homes in urban and rural areas across the country
for a period of two years, food categories strongly associated with native food choice
registered notable growth.

Delicieux Palitaw Hauz ǁ 8

 Geographic
Tacurong City is considered as a cross road of four major cities in
Mindanao. Given this strategic location, the proponents believe that this will help
the business to grow. Also Tacurong City is considered as a melting pot of culture
in Sultan Kudarat thus creating a distinct characteristic in the area. Given this fact
people in the area are well aware of different variances of kankanin such as
palitaw.

Behavioral and Psychographic

The poverty incident in Tacurong City is very low, imposing a rate of
2.48%. The buying pattern in the area is well observed. Most of the income of
every households are utilized for purchase of food. Most of the families believe
that it is better to buy food rather than to have leisure.

C. Industry and Market Forecasts

Estimated Market Share

The figure show below the market share of Palitaw Hauz from the
competitors.

8%
12%
50%
30%

High-end Medium-end Low-end Palitaw Hauz

Delicieux Palitaw Hauz ǁ 9

 III. Description of Venture

A. Product

The product of Delicieux Palitaw Hauz is offers palitaw. It is a native delicacy

made up of refined sticky rice and other native materials such as coconut. It is mostly
served during celebrations because it is considered as a dessert. Most people from the
barangays offers this type of food to their visitors during fiesta. It is sometimes
mixed with sesame seeds and white sugar. Yet our product is different due to its
filling. We tried this to rebrand palitaw not only as a native delicacy but also a new
dessert that can be served in restaurants.

Palitaw Special

Delicieux Palitaw Hauz ǁ 10

B. Service

The business is open at 7:30am to 8:00pm everyday. The customer can enjoy
eating the palitaw at home because Delicieux Palitaw Hauz is open for takeout.

C. Size of business

The business is considered as small scale business. The proponents believe that
they must start with a low level of capital because they are in the market. Though
they are a manufacturing and merchandising business, only a minimal amount is
needed since the raw materials are abundant in the are.

D. Office Equipment and Personnel

The partners will be responsible in the operation of the business. They will have
their own job responsibilities, each according to their expertise and field of studies.

E. Background of Entrepreneur

The owner of the Business is a group of 7 members and they are friends since
they studied in college days they decided to build a business because they have
enough skills to manage their business.

Being a graduate and having knowledge in entrepreneurship, the proponents

believe that their endevour will be successful. They believe that having a knowledge
in marketing, accounting and costing they will be able to meet the adversities of the
business.

All of the owners are well equipped with technical know-how in business making
them good owners.

Insert info nyo ditto guys like name, address, course and skills for business.

Delicieux Palitaw Hauz ǁ 11

 IV. Production Plan

A. Manufacturing Process

The process of how the business works every day is their materials and
ingredients that they use is from the supplier. The supplier deliver the raw materials
that the business needed.

These are the ingredients:

 Pilit
 Sugar
 Sugar cane bar
 Coconut
 Special flavor (Ube, Yema, Chocolate)
 Condense milk
Procedure:

 Combine Pilit and Condense milk in a large bowl

 Knead the dough until it becomes smooth and stretchy
 Formed a ball dough and insert the flavor
 Boiled water in 5-6 minutes
 Put the palitaw into a hot water
 Remove dough patties from the boiling water
 Combine the sugar and coconut in a bowl.
 Serve the palitaw


Purchase of Cooking Preparing Packing

Raw materials Procedures

Delicieux Palitaw Hauz ǁ 12

 V. Operational Plan

A. Description of Company’s Operation

Delicieux Palitaw Hauz will start it’s operation by forging first contracts with the
suppliers for raw materials. Through these contracts sustainability is assured. The
entity shall hire employees who are well equipped with skills and knowledge to
assure that the they will be able to produce products which is of high quality. Through
assuring the quality of the products, the proponents believe that they will be able to
gain customers and achieve their loyalty.

B. Flow of Orders for Goods and/or Services.

Cashier Cooking Preparing Delivery/Pick Up

The service will start in the placement of orders with the cashier, after the order
has been placed, the number of units ordered shall be cooked and be prepared for
delivery.

C. Technology Utilization

The entity shall use the social media to increase its visibility in the community.
The technology is very cheap yet it will greatly affect the operations of the entity. It is
also perceived by the proponents that through social media more people can be able to
have access with their menu and have more sales.

Delicieux Palitaw Hauz ǁ 13

 VI. Marketing Plan

A. Pricing

Delicieux Palitaw Hauz pricing strategies will be cost plus mark up method. The
cost to produce a pack of palitaw which is consist of 3 pieces is P14.49. the selling price
for a pack of palitaw is P25.00. Thus the gross margin per pack is P 10.51 or 42.04%.

B. Distribution

The way of distributing the product is very common because most of the business are
using distribution channel like from Supplier to Delicieux Palitaw Hauz and finally to the
customers. The supplier of the business is located at Public Market Tacurong City the
figure below shown how the distribution of raw materials to Delicieux Palitaw Hauz and
Customer.

Supplier Delicieux Palitaw Hauz Customer

C. Promotion

The business will use social media they have their own Facebook page also they use
Flyers and Tarpaulin to introduce the product of the business.

Delicieux Palitaw Hauz ǁ 14

 D. Product Forecast

The product forecast will enable us to manage our business more effectively. The
minimum number of customer we got from competitors is 8%. Every day we produce
150 packs of Palitaw, and we sell it 25 pesos per unit. The total sales that we got per day
is 3,750 pesos.

Controls

The business maintain the interpersonal relationship to their customers. We will

review our business on a regular basis. The cash flow and the expenses will be recorded
to monitor whether our business is going well or not.

Delicieux Palitaw Hauz ǁ 15

 VII. Organizational Plan

A. Form of ownership

The Deliceiux Palitaw Hauz business is owned by the seven partners which is
located in Buenaflor, National Highway Tacurong City. The form of the business is
general partnership in order for them to pool their resources such as financial and skills.

The objective of this business is to earn profit and to satisfy the customer by giving
them a unique and delicious taste of Palitaw kakanin. In the menu of the business there is
a different kind, Style and flavor of Palitaw Kakanin that customer can be chosen.

B. Identification of partners or Principal Shareholders

All the members of the business will be liable for all business debts and obligations,

including court judgments and the members is equally manage the business. 100% of the

total project cost will be coming from personal investment of principal owners and

Partners’ will share profits equally.

C. Authority of the Principals

The partners will be responsible in the operation of the business. They will have their
own job responsibilities such as partners are always visit the store and communicate to
each other. The partners will not actually working at the business because they have five
employees who work every day to operate their business.

Managing Partners

Service Service Cashier Cooker Cooker

Crew Crew

Delicieux Palitaw Hauz ǁ 16

 D. Management Team Background

Before the business establish the owners make first the plan to start the business and
monitor first the area where the best to establish their business. The owners of the
business is graduated at STI College Tacurong and they currently working at different
kind of organization here in Tacurong they decide to build a business as a partnership
form of organization.

E. Rules and Responsibilities of members of organization

Team member help each other succeed to accomplish the company goals and provide
their expertise on different project and duties. Each members had equally roles they have
equal responsibility because their shares in a business is equally divided.

Delicieux Palitaw Hauz ǁ 17

 VIII. Assessment of Risk

A. Evaluate Weakness of Business

Business weakness that the principals of the business should consider the possible
problems can encounter such as Lack of cash, Lack of differentiation, Season, and Lack
of supplies from suppliers that can affect the operations of business.

B. New Technologies

The new technology for business is emerging and many well established businesses
are taking advantage of this new technology for business. For our business to succeed and
gain competitive advantage, we need to drop old out-aged technologies for business and
implement new technologies which will make our services better.

1. Use Internet Resources

2. Two Computer units,
3. Fridge, Freezer-storage
4. Heater

Delicieux Palitaw Hauz ǁ 18

 X. FINANCIAL PLAN

Summary of Basic Financial Assumptions

a. 100% of the total project cost will be coming from personal investment of

principal owners.

b. Partners’ will not be withdrawing their share from the profit until the end of 3th

year.

c. Partners’ will share profits equally.

d. The depreciation method that the business will use is straight line method.

e. The useful life of the equipment is 10 years with no salvage value.

f. The sales price will increase annually at 5% and the cost of raw materials will

increase at 2% every year.

g. Salaries and wages, advertising expense, supplies expenses, utilities, permits and

licenses will increase by 3% every year.

h. Employee benefits will increase depending on the salary rates given by DOLE

every year.

i. All finished goods inventory are sold out.

j. All sales and purchases transactions are cash basis.

Delicieux Palitaw Hauz ǁ 19

A. Income Statement (3 –Year Projection)
The Statement of Financial Performance or Income Statement shows the

result of operations of an entity. The entity’s operation for 2018-2020 is projected

and presented in the next table. It can be noted that the sales 2018, 2019 and 2020

are increasing. The cost of goods sold or the necessary amount to produce the

products for 2018, 2019, and 2020.

Net Profit is defined as the residual amount after deducting all expenses

from operations and selling.

Delicieux Palitaw Hauz ǁ 20

Income Statement (3 –Year Projection)

Product 2018 2019 2020

Sales Php1,125,000.00 Php1,181,250.00 Php1,240,312.50
Less: Cost of Sales Php652,050.00 Php665,091.00 Php678,392.82
Gross Profit Margin Php472,950.00 Php516,159.00 Php561,919.68
Less: Operating Exp
Salaries and Marketing Exp.
Internet Php11,988.00 Php12,347.64 Php12,718.07
Flyers Php1,200.00
Tarpaulin Php300.00 Php300.00 Php300.00
Total Sales and Marketing Exp. Php13,488.00 Php12,647.64 Php13,018.07
General Administrative Exp.
Salaries and Wages Php300,000.00 Php309,000.00 Php318,270.00
Fringe Benefits Php28,698.00 Php23,928.00 Php23,928.00
Permit and Licenses Php3,050.00 Php3,141.50 Php3,235.75
Supplies Php5,429.25 Php5,592.13 Php5,759.89
Utilities Php11,850.00 Php12,205.50 Php12,571.67
Repair and Maintenance Php3,600.00 Php3,708.00 Php3,819.24
Waste Disposal Php1,080.00 Php1,112.40 Php1,145.77
Depreciation Expense Php4,000.00 Php4,000.00 Php4,000.00
Total General and Administrative Exp. Php357,707.25 Php362,687.53 Php372,730.31
Total Operating Exp. Php371,195.25 Php375,335.17 Php385,748.38
Operating Income Php101,754.75 Php140,823.83 Php176,171.30
Income Taxes (30%) Php30,526.43 Php42,247.15 Php52,851.39
Net Profit (Loss) Php71,228.33 Php98,576.68 Php123,319.91

Delicieux Palitaw Hauz ǁ 21

B. Cash Flow Projections (3 –Year Projection)

Cash Flow projections show the cash inflows and outflows of the entity from its

operation. The entities cash shows a significant shift upwards which implies that the business is

doing well.

Delicieux Palitaw Hauz ǁ 22

Cash Flow
2018 2019 2020
Cash Beginning Php113,625.99 Php188,854.32 Php291,431.00

Cash Receipts
Sales Php1,125,000.00 Php1,181,250.00 Php1,240,312.50

Cash Disbursement
Cost of Goods Sold Php652,050.00 Php665,091.00 Php678,392.82
Internet Php11,988.00 Php12,347.64 Php12,718.07
Flyers Php1,200.00
Tarpaulin Php300.00 Php300.00 Php300.00
Salaries and Wages Php300,000.00 Php309,000.00 Php318,270.00
Fringe Benefits Php28,698.00 Php23,928.00 Php23,928.00
Permit and Licenses Php3,050.00 Php3,141.50 Php3,235.75
Supplies Php5,429.25 Php5,592.13 Php5,759.89
Utilities Php11,850.00 Php12,205.50 Php12,571.67
Repair and Maintenance Php3,600.00 Php3,708.00 Php3,819.24
Waste Disposal Php1,080.00 Php1,112.40 Php1,145.77
Income Taxes (30%) Php30,526.43 Php42,247.15 Php52,851.39
Cash Ending Php188,854.32 Php291,431.00 Php418,750.91

Delicieux Palitaw Hauz ǁ 23

C. Projected Statement of Financial Position (3 – Year Projection)

All assets are financed by the partners through their personal funds. Also the

entity is operating on a cash basis thus there are no liabilities incurred. The total owner’s

equity for the year 2018 to 2020 are the same with the assets, it also shows an increasing

trend.

Delicieux Palitaw Hauz ǁ 24

Assets
Current Assets Pre - Operation 2018 2019 2020
Cash Php113,625.99 Php188,854.32 Php291,431.00 Php418,750.91
Total Current Assets Php113,625.99 Php188,854.32 Php291,431.00 Php418,750.91
Non-Current Assets
Machineries and Equipment Php40,000.00 Php40,000.00 Php40,000.00 Php40,000.00
Acc.Dep-Machineries and Equipment Php4,000.00 Php8,000.00 Php12,000.00
Total Non-Current Assets Php40,000.00 Php36,000.00 Php32,000.00 Php28,000.00
Total Assets Php153,625.99 Php224,854.32 Php323,431.00 Php446,750.91

Liabilities
Current Liabilities
Accounts Payable
Total Current Liabilities
Non-Current Liabilities
Notes Payable
Total Non-Current Liabilities
Partner's Equity
Kamsa, Haifa Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Amba, Noramin Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Dimaguil, Johanna Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Kadatuan, Haron Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Paglas, Baidido Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Mangelen, Aipha Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Labay, Maisarah Php21,946.57 Php32,122.05 Php46,204.43 Php63,821.56
Total Partner's Equity Php153,625.99 Php224,854.32 Php323,431.00 Php446,750.91
Total Liabilities and Partner's Equity Php153,625.99 Php224,854.32 Php323,431.00 Php446,750.91

Delicieux Palitaw Hauz ǁ 25

D. Break Even Analysis (3–Year Projection)

Break Even Analysis is a management tool to determine the required units to be sold by

the entity to cover its fixed cost. The fixed cost is the amount incurred by entity that doesn’t

fluctuate with production. In the first year operation the entity needs to sell 13,448 units, in 2018

12,951 units, in 2019 and 12,483units in 2020. The decreasing trend in the required units to be

sold every year signifies a positive impact on the entity. Though there is an increase in the fixed

cost every year the entity can be able to cover these costs. It can be inferred that the entity is

profitable.

Delicieux Palitaw Hauz ǁ 26

BREAK EVEN ANALYSIS 2018 2019 2020

Fixed Cost
Depreciation Expense Php4,000.0 Php4,000.0 Php4,000.0
Salaries and Wages Php300,000.00 Php309,000.00 Php318,270.00
Fringe Benefits Php23,928.00 Php23,928.00 Php23,928.00
Permit and Licenses Php3,050.00 Php3,141.50 Php3,235.75
Repair and Maintenance Php3,600.0 Php3,708.00 Php3,819.24
Waste Disposal Php1,080.0 Php1,112.40 Php1,145.77
Total Fixed Cost Php335,658.0 Php344,889.9 Php354,398.8

Divided by Weighted Contirbution Margin Per Unit Php24.96 Php26.63 Php28.39

Break Even Point 13448 12951 12483

Delicieux Palitaw Hauz ǁ 27

E. Sources and Application of Plan

Due to limited capital requirement the needed capital shall be financed directly by

the principals. They shall be investing equal amounts as follows;

1. Kamsa Tacurong City P21,946.57

2. Amba Tacurong City P21,946.57
3. Kadatuan Tacurong City P21,946.57
4. Mangelen Tacurong City P21,946.57
5. Dimaguil Tacurong City P21,946.57
6. Labay Tacurong City P21,946.57
7. Paglas Tacurong City P21,946.57

Delicieux Palitaw Hauz ǁ 28

Project Cost

Name of Entity
Project Cost (in Php)

Working Capital

Materials 36,361
Salaries and wages 25,000
Equipment 40,000
Kitchen Supplies 25,000
Rent 5,000
Permits and Licenses 3,050
Prepaid Advertising 1,399
Utilities 3,950
Total Working Capital 139,660
Total 139,660
Contingency (10%) 13,966
Total Project Cost P 153,626

The project cost represents the amount needed to operate the entity. The

estimated amount is P153,626. It is planned that no liability shall be loaned from

financing institutions.

Delicieux Palitaw Hauz ǁ 29

 XI Appendix
September 8, 2017

Lina O. Montilla
Mayor
Tacurong City, Sultan Kudarat
9800

Dear Ms. Montilla

Good day ma’am I’m Haifa B. Kamsa I here by apply for a license to display the
trademark of my business “Deliceiux Palitaw Hauz” here in Tacurong City area at front
of STI College Tacurong.

This application is in accordance with the regulations of the Business.

I am cognizant of the regulations of Deliceiux Palitaw Hauz that govern the display of
said trademark and the manner of conducting business, and I agree to abide by such
regulations at all times.

Very truly yours,

HAIFA B. KAMSA

Delicieux Palitaw Hauz ǁ 30

 A. Market Research Data

The Business use the Market Research Survey to know what strategy they use to
improve more the business and get the feedback of the customer to apply the changes in
the business. The survey is voluntary they can answer it or not.

Consumer Market Research Survey

Instruction: Put the check ( / ) in the box that correspondents to your answer.

Name:___________________________________ Age:__________

Gender:________________ Civil Status:________________________

1.How Satisfied are you with the Following:

The Product Satisfied Slightly Satisfied Unsatisfied

Taste

Price

Design

Size

The Service

Speed of Serving

Good relation of Staffs

Faclilities

Delicieux Palitaw Hauz ǁ 31