Entrep Everything

JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY

Senior High School Department
City of Koronadal, South Cotabato
POLYBAG
Submitted by:
Acop, Anuar Jr.
Garcia, Maryelle Antoinette
Hechanova, Myke Ian
Jamorabon, Michelle Anne
Lariosa, Vanessa
Navarro, Ma. Angelica Shane
Nicor, Jeric
Villanueva, Gellie
12-St. Maria Goretti

JMJ Marist Brothers
1.1 Product Description
Value Proposition
The polybag is used for holding or carrying personal things or school

materials/supplies. It is typically used to keep your things in order especially the
papers.
Unique Selling Proposition
The polybag, unlike other bags, its main purpose is for educational or work
purposes, thus easier to carry without the need for a big backpack. The polybag is
made out of old or unused denim clothes and it is separated according to its use. It
has many rooms that serve as an organizer such as a container for a pen. The
polybag is built to have a flat rectangular structure so that papers or documents will
not be folded. Additionally, it also has a calculator holder that can be used without
removing it and put your necessary valuables like your wallet and ID's in the bag.
Sample Product
Figure 1 Figure 2
JMJ Marist Brothers
Sample Packaging
Figure 3
1.2 Market (Main Customer)
The entrepreneurs will sell their product to consumers who belong to Generation Z
whose age ranges from 12 to 18 years old. Hence, these customers can be classified as
students. The demand for school supplies increases because students need something
that will be helpful in their studies. These students are practically organized and only
choose products that are convenient for them. They are the fruits of the generation that
relies heavily on products that will make their life easier.
JMJ Marist Brothers
1.3 Market Area
The entrepreneurs’ chosen market area is Koronadal City. Since Koronadal City
is the centerpoint of trade and industry of South Cotabato, the entrepreneurs
decided to venture their business in the said location.
Figure 4
1.4 Supply
Sling bag
Company No. of supplies per year
Direct Competitor none 0
KCC 4,000
Ace 3,500
Gaisano 3,300
Indirect City Mall 3,000
Competitors Unitop 2,500
Maunlad 2,300
Novo 2,000
3 F’s 1,500
Shang Shang 1,300
Others 814
TOTAL 26,220
JMJ Marist Brothers
1.5 Demand
The business will be established in Koronadal City, South Cotabato wherein,

according to the survey that was conducted by CENSUS Koronadal City last 2018, the
total number of residents in the said location is 189,381. The total number of residents
whose ages are ranging from 12-18 years old is 28,226. Thus, 15% of the total population
of Koronadal City is identified by the entrepreneurs as the customers of the Polybag.
1.6 Supply and Demand Analysis
In the area where the business is located, eight (9) indirect competitors are identified.
These nine indirect competitors that supplies sling bag, which is an alternative for the
entrepreneurs’ product, can be considered as a threat to the sales of the company. But
these threats could also urge the company to create more unique products. Since the
total population of the target market is 28,226 and the total supply of the nine indirect
competitors is 26,220 then the company will need to supply 2,006 products.
1.7 Selling Price
Raw Materials Price

Denim Pants Php 20.00
Buttons Php 5.00
Board (Base) Php 13.00
Designs Php 20.00
TOTAL Php 48.00
The estimated cost of the materials is Php 200.00 each polybag. Considering the
direct labor for the product, we have to:
Direct Labor Cost ÷ Total Demand per day = Labor
Php 2,600.00 ÷ 20 = Php 200.00
To get the selling price, we have to:

JMJ Marist Brothers
Cost + Desired Profit + Labor + Promotional Budget =

Selling Price
Product Cost Desired Profit Labor Selling Price

Php 48.00 45% Php 130.00 Php 200.00
1.8 Market Share

The nine indirect competitors of the polybag have a higher market share. Since the
business is just starting and new to the market, their aim is to have less than 10% market
share and that would be approximately 2,006 of the total target market.
MARKET SHARE
A-Corp, 7%, 6% KCC, 9%, 8%
Others , 3%, 3%
Shang Shang, 7%,
6% Ace Centerpoint, KCC
14%, 13% Ace Centerpoint
Gaisano
3 F's, 9%, 8%
City Mall
Unitop
Maunlad
Novo, 7%, 6% Novo
Gaisano, 16%, 15%
3 F's
Shang Shang
Maunlad, 11%, 10% Others

A-Corp
City Mall, 13%, 12%

Unitop, 14%, 13%
1.9 Promotional Measures

Promotion objectives of Polybag will consist of creating consumer awareness,
generating interest, and moving customers to purchase. Accordingly, the
entrepreneurs will utilize the measures as followed:
JMJ Marist Brothers
Year 1 (January to December 2020) – Posters or tarpaulins which will

contain data or knowledge about the product such as its price, location, and contact
information for further queries will be placed within the target area. Chosen colors and
layout of the poster or tarpaulin will aid in capturing the attention of the target
customers as it will appear pleasing to the eye and will surely boost their interests
toward the product. Flyer distributing will also be considered since it can spread the
product’s information on a wide range of possible customers.
Year 2 (January to December 2021) – Once the company has helped our
first few clients, the company will then explore relationships with local newspapers.
Being located in a city, public relations will be relevantly essential for the business.
Thus, participating in universities and involving in community activities will be an
extremely valuable method and will help the company to gain increased exposure.
Doing so will not only help the company to receive more business from locals but will
also increase the company’s chance of referrals in the community as it will provide
positive exposure.
Year 3 (January to December 2022) – In the third year of the business,
if the company’s product will prosperously reach its target market share, additional
new branches located in various areas will then be opened to the public.
Aside from the mentioned promotional measures above, the
entrepreneurs will also carry out more means to enhance the product’s value and to
promote the product more effectively. Practical and actionable marketing and
business strategies, as well as continuous improvement of the products with quality
and durable materials, are also important actions. By simply building customer
awareness, interest, and desire consumer purchases will increase, and will, therefore,
raise the company’s sales and lead to the product’s success.
JMJ Marist Brothers
1.10 Promotional Budget
ANNUAL PROMOTIONAL BUDGET
Marketing Strategy Estimated Quantity Estimated Cost

3 Php 500.00
TARPAULINS
-- Php 1000.00
SOCIAL MEDIA
PROMOTION
(INTERNET)
300 Php 400.00
FLYERS
-- Php 3000.00
LOCAL NEWSPAPER
PROMOTION
TOTAL ANNUAL PROMOTIONAL BUDGET Php 4900.00
The estimated cost varies annually depending on the marketing strategy and
promotional measures.
1.11 Competition
As a competitor, KCC is a very large market of products. Due to its ability to
accommodate the customer’s needs and wants, it could be considered as a great
competitor that could produce a large number of products. The price it gives for a
normal sling bag is Php 170.00. KCC is a company that has many strengths, therefore,
it rarely shows its weakness in terms of product availability, price and, quality.
However, due to considering the quality of their product, they promote high-priced
branded products that result in consumers to buy similar products that are cheaper
elsewhere.
Gaisano is a large producer of clothes and necessities; they hardly focus on
school supplies yet, they do have products such as sling bags and other school things.
The price for their sling bag is Php 135.00. Although Gaisano sells products for school
JMJ Marist Brothers
necessities, they have a lower quantity of those products since it is not their specialty
and it is considered to be not in demand in their field of market.
Unitop is similar to that of Gaisano since they also focus on clothing, necessities
and, a field of appliances in the market. Thus, they also have a low quantity of products
for those products like school necessities since it is not in demand. The value or price
of their sling bag is Php 140.00.
1.12 Sales Forecast
Month No. of Units Price Sales

January 166 200 Php 33,200
February 166 200 Php 33,200
March 166 200 Php 33,200
April 166 200 Php 33,200
May 166 200 Php 33,200
June 166 200 Php 33,200
July 166 200 Php 33,200
August 166 200 Php 33,200
September 167 200 Php 33,400
October 167 200 Php 33,400
November 167 200 Php 33,400
December 167 200 Php 33,400
TOTAL 1,996 Php 399,200
JMJ Marist Brothers
Sales 2019
33450
33400
33350
33300
33250
33200
33150
33100
Sales 2019
The table and graph indicate that the sale of the POLYBORD on its first year of
operation is based on the projected demand discussed in the preceding pages which is
166 units. A 1% increase is expected every 7 Months as a result of promotional measures
which will be employed by the company. In each year, the business is expected to target
another percent of demand to increase its sales. There will be additional features to
address the demand. For now, the target market is between 12 to 18 years old in the next
years, the target is expected to increase.
JMJ Marist Brothers
2.1 Production Process
2.1.1 Process Flow Chart
 Gather necessary Prepare necessary Prepare necessary

materials (5 minutes) materials (5 minutes) materials (5 minutes)
 Prepare stage board
Cut the jean fabrics into Cut the fabric into small
Attach stage board clip to the appropriate sizes for square shapes (15
fiberboard (10 minutes) sewing (15 minutes) minutes)
Sew the fabrics to form

Sew the fabrics to form the pockets for the final
the jean layer for the final product (20 minutes)
product (20 minutes)
ASSEMBLY
(30 minutes)
Finished Product
(Output)
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2.2 Fixed Capital
Description Qty. Amount Useful Depreciation Sources Repairs and

Life Maintenance
Tables 3 Php 2,250.00 10 yrs Php 225.00 KCC
Cash 1 Php 9,554.00 10 yrs Php 955.40 Lazada Php 1,000.00

Register
Display Shelf 2 Php 20 yrs Php 1,150.00 Mandaue Php 500.00

23,000.00 Foam
Chairs 4 Php 1,720.00 5 yrs Php 344.00 Mandaue

Foam
Sewing 2 Php 10 yrs Php 1,900.00 Brother Php 1,500.00

Machine 19,000.00
Aircon 1 Php 10 yrs Php 6,200.00 Emcor Php 2,000.00

62,000.00
Stand Fan 1 Php 929.00 5 yrs Php 185.80 KCC Php 500.00
Counter 1 Php 17,000 10 yrs Php 1,700.00 Mandaue Php 500.00

Table Foam
Rotating 1 Php 1,300.00 5 yrs Php 260.00 KCC

Rack
Glue Gun 2 Php 818.00 5 yrs Php 163.60 KCC
Ceiling Fan 1 Php 3,600.00 10 yrs Php 360.00 Ace Hardware Php 500.00
Production 2 Php 6,500.00 10 yrs Php 650.00 Mandaue Php 500.00

Table Foam
Scissors 3 Php 270.00 2 yrs Php 135.00 KCC

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Fire 2 Php 2,400.00 1 yr Php 2,400.00 Marbel Fire

Extinguisher Extinguisher
Total Fixed Capital Php 150, 341.00
2.2.1 Life of Fixed Capital
The life of fixed capital varies on what materials or asset is subjected. The
table in 2.2 describe the predicted or assumed life expectancy for each equipment
that are needed to put up the business.
2.2.2 Sources of Fixed Capital
The company will get its capital on the owners’ resources since the
company type is a corporation, all of the assets and finances will be shouldered
and divided equally by the whole group. In the long run, the company would also
have term loans from banks to help in the finances of the company. Moreover, term
loans are suited to small businesses considering that this kind of company is still
on the developing stage.
2.2.3 Maintenance and Repairs
Maintenance and repairs are important since most of the equipment are
used on a daily basis and it is very much expected that depreciation would occur
in these tools and equipment. The company will allocate specific amounts for
maintenance and repairs for every equipment and materials in the fixed capital.
JMJ Marist Brothers
2.3 Business Location
The location of the said business is a stand-alone store within a downtown
community. In selecting the location, the entrepreneurs considered the fact that the
business is focused on school-related materials. Thus, the target market, which are the
students, are more likely to visit in the said location in search for school supplies.
2.4 Business Layout

JMJ Marist Brothers
2.5 Raw Materials and Supplies
The table below shows the materials needed to make the product.
Table 2.1 List of Raw Materials
Raw Materials Description
Old Maong Pants This is the main material used to make the
product.
Chipboard This is the base structure of the product.
Buttons and Velcro Tapes This is used to secure the bag or product.
Designs (Beads) This is used to enhance the aesthetic

appeal of the product.
2.5.1 Cost of Raw Materials

Table 2.2 Cost of Raw Materials
Raw Materials Cost
Old Maong Pants Php 15.00/piece x 166 = Php 2,490.00
Chipboard Php 11.00/piece x 166 = Php 1,826.00
Buttons and Velcro Tapes Php 3.00/piece x 166 = Php 498.00
Designs (Beads) Php 5.00/piece x 166 = Php 830.00
TOTAL Php
5,644.00/month
JMJ Marist Brothers
2.5.2 Sources of Raw Materials

The business will purchase the needed raw materials from the suppliers.
Table 2.3 Sources of Raw Materials
Raw Materials Suppliers Address
Old Maong Pants Thrift Shops Brgy. GPS, Koronadal City
Clipboard KCC Koronadal City
Buttons or Velcro Tape KCC Koronadal City
Designs (Beads) KCC Koronadal City
2.6 Labor (Availability, Productivity)

Based on the sales forecast, the total amount of products per month is 166.
One labor could produce four (4) polybags for 8 hours per day; hence, it could
produce 84 products in a span of 21 working days in a month. Therefore, two (2)
labors are needed to cover the estimated goal production monthly.
2.6.1 Cost of Labor

Table 2.4
Labor Rate
2 Php 305.00/day
JMJ Marist Brothers
2.7 Factory Overhead Expenses

Particulars Cost
Threads Php 20.00
Fabric Glue Php 150.00
TOTAL Php 170.00
2.8 Production Cost

Particular Cost
Raw Materials Php 5,644.00
Overhead Expenses Php 510.00
Labor Cost Php 12,810.00
TOTAL Php 18,964.00

JMJ Marist Brothers
3.1 Form of Business Ownership
The A-Corp is a carrying partnership company of young entrepreneurs. This enables

the liability and ownership of co-founding partners to equally divided and distributed
among each other.
The Business is composed of 8 co-founding partners: Anuar Jr. D. Acop, Maryelle

Antoinette S. Garcia, Myke Ian A. Hechanova, Michelle Anne D. Jamorabon, Vanessa F.
Lariosa, Angelica Shane A. Navarro, Jeric Ryan B. Nicor, and Gellie V. Villanueva. Each
member will be designated based on their competencies and skills in managing and
regulating a business. Thus, they have their major roles and significance in growing the
business.
3.2 Organizational Structure
Manager
Marketing Human Production

Head Resource Head
Leng Kim
2 Crafts
2 Sales
Man
Lady
Cashier
JMJ Marist Brothers
3.3 Key Officers and Personnel
In this section of the paper, it is composed of three divisions, which are Key
Officers/Personnel, Qualifications, and Responsibilities and Duties. These divisions could
determine the work description of each employee based on the Organizational Structure
of the company in which the compensation and benefits will be given to each employee.
3.3.1 Qualifications /Duties and Responsibilities
Key Qualifications Responsibilities and

Officers/Personnel Duties
General Manager  Has a strong  To supervise the

leadership to guide the company
company  To strengthen the
 Have prior knowledge structures of the
on running the company as well as
company the employees
 Firm in making  To make decisions
decisions and manage control
 A good strategic leader in overall sector of
the company
Finance  Has a good  Ensures that records
mathematical ability to and files of the
analyze and interpret company are safe
logically specifically financial
 Have knowledge on records
the needs of the  Present and develop
company budget plans
 Great organizational  Provide guidance
skills and expertise to the
 Being a problem solver employees regarding
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 Have characteristics of financial strategies

being trustworthy and and company’s
ethical operation
 Have prior ability to  Supervises and
communicate and monitors investment
present reports strategies and the
effectively assets of the
company
 Supervise the
management of
finance or cash spent
by the company
Marketing Head  Bachelor’s degree in  To create strategies

marketing or Business that can help the
Administration company meet their
 Needs Industry sales objective
experience  Crafting strategies for
 Has effective verbal all marketing teams
and written including Digital,
communication Advertising,
 Can be creative under Communications and
pressure Creative
 Has knowledge in  Prepare and manage
current marketing monthly, quarterly
trends and annual budgets
 Has strong budgeting, for the marketing
internet and computer department
skills  Set, monitor and
 Good organization report on team goals
skills  Develop plans to
 Ability to work help establish the
effectively within a company
team and
independently
 Related job and
internship experience
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Research and  Bachelor’s or Master’s  Leading major

Development degree research projects
 Leadership and and coordinating
managerial skills activities of other
 A strong sense of research workers
creativity  Develop and
 Communication and implement research
presentation skills projects, priorities
 Budgeting ability and targets
 Can envision projects  Access the benefits
from start to finish and monitor the costs
 Can communicate well and effectiveness of
with colleagues and research and
lower level staff development
activities
 May publish results
of significant
research projects
Human Resource  Good oral and written  Ensures employees
communication skills receive the proper
 Bachelor’s or Master’s compensation and
degree in Human benefits
Resource  Direct the
management, maintenance of
Business employee records
Administration or any  Manage overall
related field hiring, evaluation and
 Ability to use Human labor relations
Resource  Must stay up-to-date
Management software with policies that
govern employee
rights
 Organizing staff
training sessions and
activities
 Negotiating salaries,
contracts, working
condition or
redundancy
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packages with staff

and representatives
Production Head  Should have planning  Assessing project
and organizational and resource
skills to be able to run requirements
and monitor the  Ensures that health
production process and safety measures
 The ability to act are met
decisively and solve  Determining quality
staff or equipment- control standards
related problems  Planning and
 The ability to work in a organizing production
logical and systematic schedules
manner  Supervises the work
 Has the ability to of the junior staffs
communicate clearly  Selects, orders and
and persuasively with purchases the
your team, managers materials
and clients  Organizing relevant
 The ability to work training sessions
under pressure and  Re-negotiating time
motivate others to scales or schedules
meet deadlines as necessary
Labor  Well- organized and  Tasked to do the
has the ability to grasp overall assembling of
instructions easily the bag
 Flexible and has a  Assigned to do the
good communication product testing and
skills packaging
 Particular with jean-
cutting and sewing
JMJ Marist Brothers
3.3.2 Compensation and Benefits
1. Minimum Wage
Minimum wage rate in the Philippines differs per region and industry. Since the
company is established within the proximity of Region XII or SOCCSKSARGEN, the
minimum wage is Php 311.00 as of November 2018. This is based on a work week of 40
hours or 8 hours per day.
Salary Compensation
Key Personnel Minimum Wage Monthly Salary
General Manager Php 311.00 Php 41, 168.00
Finance Php 311.00 Php 42, 411.00
Marketing Head Php 311.00 Php 34, 265.00
Research and Php 311.00 Php 46, 689.00

Development
Human Resources Php 311.00 Php 49, 381.00
Production Head Php 311.00 Php 37, 607.00
Labor Php 311.00 Php 12, 000.00
2. Mandatory Government Benefits and Contributions
The following government contributions will be automatically deducted from regular

employees based on their salary, with the following benefits shown below:
JMJ Marist Brothers
Key Personnel Monthly SSS (11%) Pag-IBIG PhilHealth

Salary (2%) (2.75%)
General Manager Php 41, Php 4, 528.00 Php 823.00 Php 1, 132.00
168.00
Finance Php 42, Php 4, 665.00 Php 848.00 Php 1, 166.00

411.00
Marketing Head Php 34, Php 3, 769.00 Php 685.00 Php 942.00
265.00
Research Php 46, 689.00 Php 5, 136.00 Php 934.00 Php 1, 284.00
and
Development
Human Resource Php 49, Php 5, 432.00 Php 988.00 Php 1, 358.00
381.00
Production Head Php 37, Php 4, 137.00 Php 752.00 Php 1, 034.00
607.00
Labor Php 12,000.00 Php 1, 320.00 Php 240.00 Php 330.00

JMJ Marist Brothers
Under the Philippine Labor Code, employees are entitled to monetary benefits
such as the minimum wage, 13th month pay, and overtime pay, among many others,
regardless of the nature of the business and the number of workers hired within a
business. In addition, the Labor Code also requires employers to become members of
the Pag-IBIG Fund, PhilHealth, and SSS, as well as remit monthly contributions on behalf
of their employees to these government offices.
This ensures that employees have access to affordable house financing, health
insurance, and social security benefits, as mandated by the law.
SOCIAL SECURITY SYSTEM (SSS)
SSS provides private employees and their families with protection against disability,
sickness, old age, and death. Private sector workers who suffer from work-connected
sickness or injury resulting to disability, or their families in case of work-connected death,
may file claims for Employees’ Compensation benefits at the Social Security System.
PHILIPPINE HEALTH INSURANCE CORPORATION (PhilHealth)
PhilHealth is administered by the Philippine Health Insurance Corporation and

provides employees with a practical means of paying for adequate medical care in the
Philippines.
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Pag-IBIG Fund
A mandate of the Pag-IBIG Fund is to establish, develop, promote, and integrate a

nationwide sound and viable tax-exempt mutual provident savings system that is suitable
to the needs of the employed and earning groups. It also consists housing loan programs
and offers its members with home insurance options that help them secure both their
homes and the loans taken out with the corporation.
ORGANIZATION AND MANAGEMENT PLAN
This section of the business plan summarizes the information about the form and
nature of the business, the business' organizational structure, and business members'
duties and qualifications. Compensation and benefits are also included as well as the pre-
operating activities of the business.
Legal Form of Business
Entrep warriors, based on its form, is a sole P business which will be owned by 5
people.
Nature of Business
The business is considered to be manufacturing in nature because the business will

purchase raw materials for the intention of producing their own product.
Organizational Structure
Manager
Marketing Human Production

Head Resource Head
Leng Kim
JMJ Marist Brothers
2 Crafts
2 Sales
Man
Lady
Cashier
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Job Description and Specification
Position Job Description Job Specification
 Responsible for overseeing an  Has leadership skills

administrative functions in the  Flexible
business  Degree holder related to
 Delegates administrative tasks business & management
Manager
 Responsible for managing the  Bachelor’s degree in

company’s marketing initiatives Marketing, Business or a
 Oversees the production of all related field
promotional materials and  Strong effective
marketing campaign communicator
Marketing
Head
 Monitor the day-to-day financial  Has a degree in

operations within the company. Accountancy or Finance
 Review financial data and  CPA or MBA preferred
prepare monthly and annual  Gained professional work
reports experience
Financial
Head
 Manages, monitors, and  Planning and organization

evaluates the production and skills to be able run and
materials used in making the monitor the production
product process
 Ensures that the correct amount  Attention to detail to ensure
is produced at the right cost and high levels of quality
level of quantity.
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Production
Manager
 Develops design for the  High school diploma

products, adapts existing design  Needs superior finger and
for the product, or copies existing hand dexterity and good
design for the said product near vision to stitch
accurately and neatly.
2 Craft man
Compensation and Benefits
Monthly Wage Annual Wage
Manager
Marketing Head Php 18, 560 Php 222, 720
Financial Head Php 18, 560 Php 222, 720
Production Head Php 18, 560 Php 222, 720
Craft man Php 4,720 Php 56, 640
The manager will be paid Php 201 per hour while the three Department Heads will be
paid Php 116 per hour therefore in a month, they will be paid in the amount of Php 32,160
and Php 18, 560 respectively for both of them will be working five days a week. The
minimum wage of Php 295 per day is the basis of giving a salary to both the tailor and
delivery man. Since the tailor will only be working a maximum of 4 days in a week his/her
salary will only be Php 1,180 per week and Php 4,720 in a month.
JMJ Marist Brothers
They are also privileged to have the following benefits:
 Social Security System (SSS) Benefits

This provide meaningful protection and help to members and their
beneficiaries against the hazards of disability
 PhilHealth Benefits.
A member and their qualified dependents are entitled to benefits for medical
expenses for every sickness or operation.
 Overtime Pay
This is given to an employee who worked beyond the standard working
schedule as follows:
Pre-operating Activities
In order to startup the business, the company will first have to process and pay for
the regulatory expenses like permits and licenses. Then, they will scout for suppliers of
the raw materials and will buy equipment to be used in the production of the product. The
rent for the business location will have to be paid a month before the opening and
business will also incur expenses for the improvements to be done in the place, for the
signage, and for the promotional materials. Furthermore, they will also acquire office
furniture, office supplies and a computers and the business will not buy any vehicle yet
but rather use the one of the owner’s possession.
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Pre-operating Expenses
Pre-operating Expenses Amount (in Peso)
Payment for raw material 2,000
Promotional Materials 900
Permits and Licenses 5,700
Office Furniture 2,500
Office Supplies 1,000
Computer 2,500.00
Equipment 5,000.00
Total Pre-operating Expenses Php 19,600
Glue 200
Popsicle stick 500
Lights 500
Glue gun 500
Other material 300
Payment for raw material Php 2000

JMJ Marist Brothers
Barangay permits 500
BIR 500
DTI 800
Mayors permit 1300
SSS 1000
Philhealth 800
Pag-ibig 800
Permit and licenses 5,700

JMJ Marist Brothers
SECTION IV
FINANCIAL PLAN
4.1 Total Project Cost
The total cost of establishing the A-Corp’s Polybag breakdown for monthly rentals,
monthly supply, permits, and licenses, and monthly promotion of the product.
Table 13 presents the Total Project Cost
Expenses Amount
Rental (Monthly) ₱3,000.00
Raw Materials ₱5,644.00
Permits and Licenses ₱5,000.00
Promotion ₱1,300.00
Total: ₱14,944.00
The total project cost of A-Corp Company is ₱14,944.00. Most of the budget was
allotted for the raw materials needed for the product with ₱5,644.00 per month. A total of
₱5,000.00 is to be used for the permits and licenses from government agencies. Next is
JMJ Marist Brothers
the monthly rent which costs ₱3,000.00. For the tarpaulins, flyers, and other promotional
strategies, it resulted for a total cost of ₱1,300.00.
4.2 Sources of Financing
The owners of A-Corp Company are the ones who will supply the financial needs
of their business. Their respective money that was collected will be the funds that are to
be used in order to purchase the raw materials necessary to create the company’s product.
4.2.1 Equity
Since the business is a partnership, the initial investment will come from the
partners themselves with a total of a total cash of ₱200,000.
Particulars Amount
Cash ₱200,000.00
Total ₱200,000.00
4.2.2 Financial Statement
4.2.2.1 Cash Flow Statement
A – Corp
Statement of Cash Flows

For the Year ended December 31, 2019
JMJ Marist Brothers
Cash Flows from operating
Cash Received Php 399, 200

Cash Paid Php 141, 540
Total Cash Flows from operating Php 257 660
Investing Php 212, 259
Financing Php 200, 000
Cash Balance (End) Php 669, 919
4.2.2.2. Income Statement
A – Corp
Income Statement
For the Year ended December 31, 2019
Sales Php 399, 200

Less: Cost of Goods Php 67, 728
Gross Profit Php 331, 472
Less: Operating Expenses

Advertising Expenses (Php 12,000)
Utilities Expenses (Php 30,000)
Rent Expenses (Php 84,000)
Permit Expenses (Php 3,540)
Packaging Expenses (Php 12,000)
Net Income before Taxes Php 189, 932
30%
Net Income after Taxes Php 132, 952.4
JMJ Marist Brothers
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
ROI = 𝑥 100
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡
132,952.4
ROI = 𝑥 100
300,000
ROI = 44%
The income statement above is based on the company’s total assets, liabilities,
and equity. It includes the advertising expenses, utilities expenses, and regulatory
expenses.
4.3 Financial Analysis
Financial analysis involves using financial data to asses a company’s performance

and make recommendations about how the company can improve and continue going
forward.
4.3.1 Return of Investment (ROI)
Return of Investment is the amount of net profit from a business or other

investment compared with the total amount of capital invested. The company has a total
asset of 700,000 pesos including cash and inventory.
ROI = Net Income After Tax/Total Asset × 100
(132,952.4 ÷ 700,000 × 100) to get the return of investment.
ROI = 132,952.4/700,000 × 100 = 18.9932 or 19%
4.3.2 Break Even Point

JMJ Marist Brothers
At the break-even point, the A-Corp would generate profit or loss. Knowing the break-
even point is essential for making profit as it determines the number of goods they need
to sell to reach their break-even point in number of units would be
𝐹𝐶
𝑥=
(𝑃−𝑣)
To compute for the break-even point,
BEP in pesos = Unit price × BEP in units
Unit Price = 200
Variable Cost =
Fixed Cost =
4.3.3 Payback Period
Payback period is the length of time to recover the cost of the investment used to
produce the product. A-Corp invested a total of Php 200,000 to start the business and
produce the polybags. It takes one year for the A-Corp to recover the cost of investment,
thus, making the payback period equal to one year.

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JMJ Marist Brothers

NOTRE DAME OF MARBEL UNIVERSITY

12-St. Maria Goretti

1.1 Product Description

The polybag is used for holding or carrying personal things or school

Unique Selling Proposition

1.2 Market (Main Customer)

1.3 Market Area

The business will be established in Koronadal City, South Cotabato wherein,

1.6 Supply and Demand Analysis

1.7 Selling Price

Raw Materials Price

Direct Labor Cost ÷ Total Demand per day = Labor

Php 2,600.00 ÷ 20 = Php 200.00

To get the selling price, we have to:

Cost + Desired Profit + Labor + Promotional Budget =

Product Cost Desired Profit Labor Selling Price

1.8 Market Share

Maunlad, 11%, 10% Others

City Mall, 13%, 12%

1.9 Promotional Measures

Year 1 (January to December 2020) – Posters or tarpaulins which will

1.10 Promotional Budget

ANNUAL PROMOTIONAL BUDGET

Marketing Strategy Estimated Quantity Estimated Cost

1.12 Sales Forecast

Month No. of Units Price Sales

2.1 Production Process

2.1.1 Process Flow Chart

 Gather necessary Prepare necessary Prepare necessary

Sew the fabrics to form

2.2 Fixed Capital

Description Qty. Amount Useful Depreciation Sources Repairs and

Tables 3 Php 2,250.00 10 yrs Php 225.00 KCC

Cash 1 Php 9,554.00 10 yrs Php 955.40 Lazada Php 1,000.00

Display Shelf 2 Php 20 yrs Php 1,150.00 Mandaue Php 500.00

Chairs 4 Php 1,720.00 5 yrs Php 344.00 Mandaue

Sewing 2 Php 10 yrs Php 1,900.00 Brother Php 1,500.00

Aircon 1 Php 10 yrs Php 6,200.00 Emcor Php 2,000.00

Counter 1 Php 17,000 10 yrs Php 1,700.00 Mandaue Php 500.00

Rotating 1 Php 1,300.00 5 yrs Php 260.00 KCC

Glue Gun 2 Php 818.00 5 yrs Php 163.60 KCC

Production 2 Php 6,500.00 10 yrs Php 650.00 Mandaue Php 500.00

Scissors 3 Php 270.00 2 yrs Php 135.00 KCC

Fire 2 Php 2,400.00 1 yr Php 2,400.00 Marbel Fire

Total Fixed Capital Php 150, 341.00

2.2.1 Life of Fixed Capital

that are needed to put up the business.

2.2.2 Sources of Fixed Capital

on the developing stage.

2.2.3 Maintenance and Repairs

2.3 Business Location

The location of the said business is a stand-alone store within a downtown

2.4 Business Layout

2.5 Raw Materials and Supplies

Table 2.1 List of Raw Materials

Raw Materials Description