Professional Documents
Culture Documents
Business Plan Format
Business Plan Format
Business Plan Format
Rice is the staple food of Filipinos. For them, meals will not be completed without
rice, as it is not normal to see a typical Filipino who eats fried chicken partnered with a
slice of loafed bread, or a piece of pan de sal. For them, every viand is forever
Before, rice has also been the staple food in Filipino cuisines, but plain and fried
were the only varieties they knew. It was only a few years ago that they started playing
around with rice recipes such as java, garlic, chili, and Chinese. But, what seem to be a
hit among Filipinos are rice toppings, wherein meat and vegetable dishes are served on
top of a box of rice. It is the same old Filipino food, but packed in a light, convenient
way. These packages are seen and are being sold in malls, sidewalks, and school
cafeterias.
Moreover, one thing that comes to a typical Filipino mind when it comes to
breakfast is “SILOG”. From its origins, the syllable “SI” of the Filipino term “Sinangag”
for fried rice, and the syllable “LOG” of the Filipino term “Itlog” for egg, SILOG and a
variety of favorite Filipino viands to choose from has slowly become the National
It is in the above context that the proponents have come up with the idea of
Boxsilog is a rice take-out meal; a variety of fried rice and rice toppings in a very
affordable price and packed into ready-to-go boxes. It has egg and different meat
toppings such as tocino, beef tapa, and longganisa which varies from menu selections.
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The proponents chose this kind of business because it is projected to be highly
marketable in the locality. Based on observation, it can be seen that many establishments
sell different short order rice meals in San Jose, Occidental Mindoro. The proponents
consider that a large number of community people will patronize the product because of
its convenient production; it is very handy and timesaving. With the foregoing attributes,
the product is anticipated to become more popular as the time goes on. With the expected
popular demand of the product, the proponents decided to venture on this kind of
business.
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CHAPTER I
BACKGROUND OF THE STUDY
Business Name
“Boxsilog”
Business Owners
(list all the owner of the business with their respective address in table form)
Business Background
(formulate the vision and mission statement of the business and discuss it briefly)
Business Objectives
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Market Description
The target market of the proposed business is the municipality of San Jose,
specifically the population of the urban barangays. The proponents choose the
Municipality of San Jose to establish the business due to the fact that it is the center of
trade and industry in the province. The continuous establishment of different business
industry as well as government agencies and private offices is a good economic engine
According to the latest 2015 census of Philippine Statistic Authority (PSA) of San
Jose, the municipality has a total population of 143, 430 with a growth rate of 1.71%
annually. Among the 38 barangays in the municipality, 24 barangays are situated in the
rural areas while the remaining 14 barangays are in the urban areas which include
Barangay Poblacion 1-8, Bagong Sikat, Bubog, Caminawit, Labangan, Pag-asa and San
Roque with a total population of 69,036 individuals. The potential target market of the
proposed business will be the individuals under the age bracket of 15 to 65 years old
which comprises 58% of the total population in the urban areas of the municipality. In
summary, the proposed business has a potential target market of 40,041 as of the year
2015.
As per market trend, there was a growing demand of silog meals in the market
due to the continuous increase of the population and working force in the municipality.
Moreover, most people do not have the time to prepare breakfast and it is more
convenient for them to just buy ready-to-go meals in fast food chains. In regards with
this, the supply of silog meals in the market is not enough to satisfy the demand of the
product. The proposed business will surely surpass the competition in the market because
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of the uniqueness of the product offered by the business which is more economical and
Demand Analysis
The proponents of the proposed business conducted a market research among the
target market of the proposed business. The following tables illustrates the result of the
market survey.
The table below shows the demand of demand of the products for the past year.
Table 1. Historical demand of silog meals in urban barangays of San Jose, Occidental
Mindoro, 2014-2016.
Year N n (78%) q Quantity
2014 39,368 30,707 12 368,483
2015 40,041 31,232 12 374,784
2016 40,726 31,766 12 381,193
Table 2 shows projected demand of silog meals in San Jose, Occidental Mindoro
5% annually.
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Supply Analysis
The proposed business has existing suppliers in San Jose, occidental Mindoro.
Table 3. Historical supply of silog meals in urban barangays of San Jose, Occidental
Mindoro, 2016.
Indirect Competitors Quantity Sold
Acacia Food Court 72,000
Macky's Eatery 54,000
Maan's Eatery 18,000
Candida's Eatery 27,000
Arcega Eatery 10,800
Emmanuel's Eatery 7,200
Others 36,000
TOTAL 225,000
Based on the historical supply, it is projected that the quatity supliers will increase
by 5% in the succeeding years. Table 4 shows the projected supply of silog meals in
Table 4. Projected supply of silog meals in urban barangays of San Jose, Occidental
Mindoro, 2018-2020.
Year Supply in quantity
2018 248,063
2019 260,466
2020 273,489
The data on demand and supply were taken from the quantity in Table 2 and 4.
Demand and supply gap is the difference between the demand and supply. The
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The percentage of market share was obtained by dividing production capacity by the
demand.
Table 5. Demand and supply analysis of silog meals in urban barangays in San Jose,
Occidental Mindoro, 2018-2022.
Year Demand Supply D/S Gap Unsatisfied Demand Market Share
2018 441,278 260,466 180,812 41% 13%
2019 463,342 273,489 189,853 41% 13%
2020 486,509 287,163 199,346 41% 13%
Marketing Strategies
The proposed business will use different marketing strategies which were based
Product Strategies
The proposed business will offer a new variety of silog meals which is different
from other silog meals available in the market. Boxsilog is a new variety of silog meals
that will be surely patronized by the customers, because it is very common and
considered to be one of the most favorite food by many. The product will be packed in a
box with the logo of the business. The materials and ingredients to be used will be fresh,
Price Strategies
The common prices of silog meals in the market are ranging from Php 30.00 to
Php 50.00. The proposed business will offer the product at Php 30.00 per pack. The
product will be priced lower than the established competitors so that it will be more
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affordable to the customers and will more-likely to be patronized by the targeted
costumers.
Place Strategies
To properly distribute the product to the target market, the proposed business will
provide a small food cart at the Municipal Plaza of San Jose, Occidental Mindoro which
will be the production site of the business and where the customers can avail or purchase
Promotional Strategies
Promotion will also be a good marketing strategy in order for the business to
surpass the competition in the market. The proposed business will promote the business
through posting of tarpaulins in different public places of the municipality. The product
will also be promoted by joining product bazaars or trade fairs specifically the agbiliwa
trade fair sponsored by the local government of the municipality. Lastly, the business will
also be promoted through different social media sites to encourage more customers not
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CHAPTER III
Operational Plan
Product Description
The proposed business will produce different silog meals that will surely be patronized
by the customers. The business offers three kinds of silog meals namely tapsilog, tocilog and
longsilog. Tapsilog is a combination of fried tapa, fried rice and fried egg. Tocilog are made from
tocino, fried rice, and fried egg. Longsilog is a combination of longganisa, fried rice and fried
egg.
Fig. 1. Sample product of Boxsilog Food Cart in San Jose, Occidental Mindoro.
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Production Process
In order to produce 50 packs of each variety of silog meals or a total of 150 packs of silog
Table 6. List of raw materials of Boxsilog Food Cart in San Jose, Occidental Mindoro.
Quantity Description
9 kilos Rice
2 kilos Tapa
2 kilos Tocino
2 kilos Longganisa
90 pieces Egg
3 bottles Cooking Oil
3 packs Seasonings
90 pieces Packaging Box
In selecting the right quality of ingredients of the product, the following are suggested to
3. In other frying pan, fried the egg. The fried may vary based on the preference of the
5. Assemble the fried rice, fried egg, and fried tapa/tocino/longganisa in a box.
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Equipment, Furniture and Fixtures
The following list of equipment, furniture and fixtures that are needed for the proposed
On production equipment, the proposed business requires 1 unit of double burner stove
Table 7. Production equipment of Rice in a Box Food Cart in San Jose, Occidental
Mindoro.
Quantity Description Unit cost (PhP) Total (PhP)
1 unit Double Burner Stove 2,500.00 2,500.00
1 unit Gas tank 1,500.00 1,500.00
1 unit Rice Cooker 2,500.00 2,500.00
Total 6,500.00 6,500.00
For the service vehicle of the proposed business, the proponents will purchase a
mobile food cart that will serve as the production area and selling store of the business.
Table 8. Service vehicles of Rice in a Box Food Cart in San Jose, Occidental Mindoro.
Quantity Particulars Unit Costs Total Cost
1 unit Mobile Food Cart 50,000.00 50,000.00
Total Php 50,000.00
For the production tools, the proposed business needs two pieces of icebox for
storage of ingredients. The following tools like frying pan, spatula, measuring cup and
spoon, knife and chopping board are essential in manufacturing the boxsilog.
Table 8. Production tools of Boxsilog Food Cart in San Jose, Occidental Mindoro.
Quantity Particulars Unit Costs Total Cost
2 Pcs. Ice box Php500.00 Php1,000.00
2 pcs. Frying Pan 750.00 1,500.00
2 pcs. Spatula 100.00 200.00
2 pcs. Measuring cup 50.00 100.00
5 Pcs. Measuring Spoon 20.00 100.00
3 pcs. Ladle 75.00 225.00
3 pcs. Knife 95.00 285.00
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3 pcs. Basin 110.00 330.00
2 pcs. Chopping Board 120.00 240.00
Total Php 3,980.00
Sanitation and food production ethics are to be highly observed. So the following
The proposed business will provide a mobile food cart instead of renting a small space.
The mobile cart will be the production area and store of the business. The mobile cart will stay at
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Location
The proposed business will be established at San Jose Municipal Plaza along Quezon St.,
San Jose, Occidental Mindoro. The location of the business was strategically located because it
was surrounded of different government agencies, private offices, and business establishments.
The location of the proposed business was also surrounded by different public and private schools
namely Occidental Mindoro State College, San Jose Pilot Elementary School, and Divine Word
Figure 3. Vicinity map of Boxsilog Food Cart in San Jose, Occidental Mindoro.
The proposed business intends to produce 50 packs of each silog meals in a box namely
tosilog, tapsilog and longsilog meals every day or the proposed business has the capacity of 150
The proposed business will operate seven days a week from 6:00 in the morning up to
7:00 pm in the evening. The table below shows the production capacity of the proposed business.
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Table 10. Production capacity of Boxsilog in San Jose, Occidental Mindoro.
Product Daily Monthly Annually
Tapsilog 50 packs 1,500 packs 18,000 packs
Tosilog 50 packs 1,500 packs 18,000 packs
Longsilog 50 packs 1,500 packs 18,000 packs
Total 150 packs 4,500 packs 54,000 packs
Production Cost
Production cost is the amount of money used in producing the product. Included in the
production cost are the costs of direct materials, direct labor and overhead cost. The total
Table 11. Production cost of Boxsilog Food Cart in San Jose, Occidental Mindoro.
Particulars Daily Monthly Annual
Direct Materials
Rice 360.00 10,800.00 129,600.00
Tapa 400.00 12,000.00 144,000.00
Tocino 400.00 12,000.00 144,000.00
Longanisa 400.00 12,000.00 144,000.00
Egg 900.00 27,000.00 324,000.00
Cooking Oil 90.00 2,700.00 32,400.00
Seasonings 60.00 1,800.00 21,600.00
Box 300.00 9,000.00 108,000.00
87,300.00 939,600.00
Direct Labor
Production Workers 8,000.00 96,000.00
13th Month Pay 8,000.00
8,000.00 104,000.00
Factory Overhead
Depreciation 3,800.00
Production Tools 282.92 3,395.00
Production Supplies 22.50 270.00
LPG Gas 1,500.00 18,000.00
1,805.42 25,465.00
Total Production Cost Php 97,105.42 Php 1,177,065.00
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Utilities
The proposed business will use the local electric cooperative, the Occidental Mindoro
Electric Cooperative (OMECO). The water supply will come from San Jose Water District
(SJWD). The communication and fuel will come from SMART Tel Co. and Petron.
Table 12. Utilities to be used by Boxsilog Food Cart in San Jose, Occidental Mindoro.
Waste Management
Program. Wastes generated from production will be segregated as biodegradable and non-
biodegradable. Garbage bins will be provided to collect biodegradables and wastes which can no
longer be recycled and reuse will be disposed by the Waste Management unit of the local
government unit. Non-biodegradables such as cans, plastic bottles and containers, and glass
bottles will be sold to junk shops which will augment income of the proposed business. For the
welfare of the personnel and customers of the business, daily cleaning and sanitation of the
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CHAPTER IV
MANAGEMENT PLAN
Form of Ownership
The form of business organization to be applied by the proposed business will be
partnership. Medina 2013 defined partnership as “two or more persons bind themselves
together to contribute money, property or industry to a common fund with the intention
equally and the profit of the proposed business will also be divided equally among the
partners.
The name of the proposed business will be “BOXSILOG FOOD CART”, which
describe the product offered by the proposed business. The business name will be
registered to the Department of Trade and Industry (DTI) and it will pay the income tax
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Personnel Requirements
The proposed business will need three workers, composed of two production
worker and a manager/cashier. The position of the manager/cashier will be exclusive only
for the partners and must meet the qualification standard set by the partnership.
MANAGER/CASHIER
PRODUCTION PRODUCTION
WORKER WORKER
Fig. 5. Organizational chart of Boxsilog Food Cart in San Jose, Occidental Mindoro.
Qualification Standard
The proposed business will need qualified personnel to perform all the duties and
responsibilities in order for the business to operate efficiently and effectively. The
Manager/Cashier
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Production Workers
• Male/Female
• Physically fit
Job Description
The following are the duties and responsibilities of the personnel of the proposed
business.
Manager/Cashier
business.
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Production Workers
Compensation Package
Salaries for all employees will be paid on monthly basis plus 13th month pay that
Table 13. Compensation package of Boxsilog Food Cart in San Jose, Occidental
Mindoro.
Position Monthly Salary 13th Month Pay Annual Salary
(Php) (Php) (Php)
Manager/Cashier 8,000.00 8,000.00 104,000.00
Production Worker 1 5,000.00 5,000.00 65,000.00
Production Worker 2 5,000.00 5,000.00 65.000.00
Total 18,000.00 18,000.00 234,000.00
A Gantt chart of activities was presented to show the different activities that will
The operation will start on the 3rd week of July 2018. (see next page)
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Table 14. Gantt chart of pre-operating activities of Boxsilog in San Jose, Occidental
1. Formation of business
2. Pooling of capital
4. Purchasing of materials
5. Hiring of personnel
6. Start of operation
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CHAPTER V
FINANCIAL PLAN
Project Cost
The needed capital to start the business was determined by calculating the
estimated project cost. The estimated project cost is Php 290,658.33 consisting of pre-
operating expenses of Php 10, 000.00, capital outlay of Php 56, 500.00 and working
capital of Php 224,158.33. The working capital was computed for the first two months of
operations.
Working Capital
Production cost 111,886.67
Salaries and Benefits 1,333.33
Utilities Expense 1,600.00
Rent Expense 6,000.00
Depreciation Expense 12,920.00
Repair and Maintenance 2,000.00
Miscellaneous Expense 2,000.00
Promotion and Advertising 3,000.00 140,740.00
206,040.00
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Sources of Financing
Based on the calculation, the needed capital to start the operation is two hundred
six thousand forty pesos and 33 centavos (Php 206, 040.00). Since the proposed business
required to equally invest forty eight thousand four hundred forty three peos and six
centavos (Php 35, 585.56). Capital investment will come from their personal savings and
Projected Statement of Cash Flow and Projected Statement of Financial Position. The
projected Financial Statements of xxxxx for the first five years of operations are
for a given period of time. The performance of the entity is primarily measured in terms
of the level of income earned by the entity through the effective and efficient utilization
of resources (Valix, Peralta and Valix, 2016). Thus, to show the results of operation of
the proposed business in five years of operations Projected Income Statement was
prepared.
The income statements are projected for the first five years of operations. For the
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Table 15. Summary of Projected Income Statement for the first five years of operations.
Year 1 Average for Five Years
Sales 1,603,800.00 1,772,401.48
Less: Cost of Sales 1,165,180.50 1,297,157.58
Gross Profit 438,619.50 475,243.90
Less: Operating Expense 177,300.00 183,509.95
Net Income Before Tax 261,319.50 291,733.95
Income Tax (30%) 78,395.85 87,520.19
Net Income After Tax 182,923.65 204,213.77
The figure below illustrates the graphical presentation of the net income of the
proposed business for the first five years of operations. The figure shows that the income
of the proposed business is increasing continuously, which means that the business is
operating efficiently.
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
-
Net Income After Tax
Cash flow provides users of financial statements with a basis to assess the ability
of the entity to generate cash and cash equivalent and the needs of the entity to utilize
those cash flows (Cabrera and Ocampo, 2014). It shows the cash generated and utilized in
the operating, financing and investing activities of the business. Essentially, the cash flow
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statement is concerned with the cash inflow and outflow of the business. Therefore, to
determine the cash to be generated and utilized of the proposed business for the five years
For the detailed computation of projected cash flow, see appendix “E” entitled
Table 16. Summary of Projected Cash Flow for five years of operations.
Year 1 Average for Five Years
Net Cash Flow From Operating 197,053.11 212,493.16
Net Cash Flow From Investing (56,500.00) (11,300.00)
Net Cash Flow From Financing 240,658.33 8,131.67
Cash Balance 381,211.45 703,288.00
Figure 7 illustrates the cash balance of the proposed business for the first five
years of operations. The figure shows that the capital resources that can be utilized by the
business is accumulating year by year which is a good indicator for the future success of
the business.
1,200,000.00
1,000,000.00
800,000.00
600,000.00
400,000.00
200,000.00
-
Year 1 Year2 Year 3 Year 4 Year 5
Fig. 7.
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A statement of financial position provides the users information about the
liquidity, solvency, financial structure and capacity for adaption of an entity. It is one of
the main financial statements that report the assets, liabilities and equity of an entity. To
determine the financial health of the proposed business, a projected statement of financial
The balance sheet statements are projected for the first five years of operations.
For the detailed computation of projected balance sheet see appendix “F” entitled
Table 26. Summary of Projected Balance Sheet for five years of operations
Year 1 Average for Five Years
Current Assets 392,980.95 716,288.16
Non-Current Assets 50,200.00 37,600.00
Total Assets 443,180.95 753,888.16
Liabilities 19,598.96 21,880.05
Capital 423,581.98 732,008.11
Total Liabilities and Capital 443,180.95 753,888.16
Figure 8 shows the summary of the statement of financial position of the proposed
1,200,000.00
1,000,000.00
800,000.00
600,000.00
400,000.00
200,000.00
-
Year 1 Year2 Year 3 Year 4 Year 5
The figure below shows the computed current ratio for Year 1 up to Year 5. The
figure below shows that the proposed business has a good financial standing and has the
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Test of Profitability
The computation below shows that the proposed business has good indication in
terms of profitability. Net profit margin shows an increasing percentage from first year to
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Return on Investment
The rate of retun on investment shows 62.93%. it means that the investment of the
proponents can get a higher percentage of 62.93% compared to the cost of their
investment.
= 182923.65
290658.3333
= 0.629342527
= 62.93%
Payback Period
the computation of payback period. The computation below shows that the proponents
can recover their initial investments after 1 year, 5 months and 19 days.
Payback Period
Initial Investment 290,658.33
Less: Net Cash Flow fro Operations (Year 1) 197,053.11
Balance 93,605.22
Net Cash Flow from Operations (Year 2) 200,707.65
0.47
CHAPTER VI
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RISK ASSESSMENT PLAN
SWOT ANALYSIS
Strength
Weakness
Threats
Opportunity
Contingency Plan
The table below shows the contingency plan of the proposed business.
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