Prof. Ryan C. Roque, CPA, MBA

A Feasibility Study Presented To The
Faculty of the School of Business and Accountancy of
La Consolacion College Manila
In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Accountancy
Submitted To:
Prof. Ryan C. Roque, CPA, MBA

Adviser
By:
Madrio, Trisha Ramine P.
Mendoza, Krizhelle Anne D.
Salayo, Dharlene Jeanne A.
Soliman, Jenine Alyssa R.
Suba, Ruth M.
June 30, 2020

TABLE OF CONTENTS
Contents Page
Part A : Summary of the Study
Name of the Project 1
Business Logo 1-2
Location 2
Brief Description of the Project 2
Project Rationale 2
Nature of Industry 2
Type of Organization 2
Vision 2
Mission 2
Executive Summary
· Market Aspect 3-4
· Management and Legal Aspect 4
· Technical Aspect 4-6
· Financial Aspect 6
· Socio- economic Aspect 6
Part B : Detailed Presentation of All Aspects
I. Market Aspect
 Market Description 8
 Target Area 8
 Competitive Situation 8-10
 Target Market 10-11
 Sampling Area 11
 Sampling Size 11-12
 Sampling Method 12
 Survey Results 12
 Projected Demand 13-30
 SWOT Analysis 30-32
 Promotion Strategy 32-34
 Pricing Strategy 34-35
 Marketing Program (4 P's Summary) 35-36
II. Management Aspect
 Form of Business Organization 38
 Legal Requirements 38-43
 Project Time Table (Gantt Chart) 43
 Employees Duties and Functions 45-46
 Organizational Policies 46-48
 Internal Controls 48-51
 Waste Disposal Management 51
 Legal Aspect 51-54
 Salary Scale 55
III. Technical Aspect
 Pre- Operation and Operation/Service Process 58-59
 Supplies Purchasing Process 60-61
 Operating and Employees Schedule 62-63
 Business Location 63-64
 Floor Plan of the Building 64-72
 Property, Plant and Equipment 73-77
 Supplies and Tools 77-84
 Total Projected Cost 84
IV. Financial Aspect
 General Assumptions 86-88
 Form of Financing 89
 Financial Statements 90-101
 Financial Statements Analysis 101-102
 Break-Even Analysis 103
V. Socio-Economic Aspect
 Description of the Industry 105
 Employment 105
 Taxes 105
 Health Matters 105
Attachments
 Articles of Partnership 106-110
 Survey Questionaire 111
Name of the Project: LibHub Ltd.
Business Logo
Pencil Lead
Windows
Pencil Eraser
Figure 1
LibHub is a shorten term of two words “Library Hub”. Pencil symbolizes of life's experiences and
knowledge. It means that a persons’ life develops; depending on how he writes (creates)
decision in his journey. On the other hand, windows represent opportunity. Furthermore, orange
color represents enthusiasm, fascination, happiness, creativity, determination, attraction,
success, encouragement, and stimulation. While blue symbolizes trust, loyalty, wisdom,
confidence, intelligence, faith, and truth.
Location: The business will be established at Mega One Building, Along Espana near Rotanda,
Sta, Teresita, Quezon City, 1008 Metro, Manila. It is near within University Belt where there is a
high concentration of colleges and universities in the city thus would make it accessible for our
target market.
Brief Description of the Project:
Now a day’s reviewers and students like us tend to look for a place with materials that
they need in studying. Library would be a good choice but then, with limited hours and
1
with a lot of restrictions some students might find it uncomfortable and inconvenient.
Also, coffee shop is a nice place, but there are students cannot focus when their
surrounding is a bit noisy and it is a hassle bringing all the materials they need in
studying. Therefore, the proponents came up with the idea of LibHub, a study hub with a
combination of a library. LibHub offers a comfy place to study with review materials and
books plus we are also providing conference room for group discussions and meetings,
photocopying and printing, and free coffee.
Rationale of the Project: This project was designed to help students and reviewers (especially
those who are under BSA program) to have a more convenient and comfortable way of
studying.
Nature/ Kind of Industry: Rental Services
Type of Organization: Limited Partnership
Vision
LibHub aims to be “the place” of students in spending their efficient review and study time.
Mission
 LibHub aims to provide students/reviewees the coziest and worthwhile place to stay,
getting them the most out of their study experience.
 A study space, with learning ambiance and free use of books and reviewing materials for
every aspirant accountant.
 Promote to be a space free of distractions that gives students flexibility to be productive
and achieve their academic goals.
Market Aspect
2
 Product
Alternative learning models such as study hubs that enable learning available anytime and
anywhere will benefit not just only students but for a wider community, too. LibHub will provide
study and conference spaces, internet access, and other accessories to support those who
struggle finding comfort studying in a different environment- a clean & pleasant space is a must,
for easier communication with peers through conferences and making stay worthwhile with the
use of free study materials provided.
 Price
LibHub’s study space environments include office spaces arranged on a per hour basis, as well
as workshops and meeting spaces, and desk spaces. With these varieties of services are the
rates that are based on the capacity of the students’ budgets pooled on data gathered from the
survey. LibHub applies cost-plus pricing strategy, where a markup is placed on cost to at least
prevent deficit. Since the business is on its startup stage, competition-based strategy may be
used in the long-run.
 Promotion
Advertisement will lead an important role to a starting small business like LibHub. A large
percentage will be given to e-advertising such as administrating social media, making good use
of content marketing, referral programs and boosting sales through earning regular customers
with a decent loyalty programs.
 Place
LibHub will be placed near a high concentration of learning community near University-belt. It
will be situated at Mega One Building, Along Espana near Rotanda, Sta, Teresita, Quezon City,
1008 Metro, Manila. The business will take advantage of the target market especially positioned
3
beside a commercial residence - taking into consideration the students and professionals who
are possible customers, and where the building is easily seen with a considerably large
commercial signage to reach more customers.
Management and Legal Aspect
 Form of Organization
LibHub is a limited partnership. Limited partnerships are comprised of two or more partners but
it is mandatory that there should be at least (1) general partner. On the other hand, Libhub is
composed of (3) three general partners and (2) two limited partners. Limited partnership allows
limited partners to limit their own liability for business debts according to their portion of
ownership or investment. Partners shared resources provides more capital for the business and
each partner shares the total profits of the company.
 Composition of Organization
The organization is composed of a manager which is the managing partner of the partnership,
one (1) cashier and two (2) receptionists in day shift, one (1) on call staff on support shift, also
one (1) cashier and two (2) receptionist in night shift, and an outsourced accountant.
Technical Aspect
 Total Project Cost
Table 1
LIBHUB LTD.
Total Project Cost
Current Assets Amount
Operating Supplies 502,167.86
4
Operating Tools 49,580.36
Office Supplies 51,107.14
Office Tools 4,374.11
Storage Tools 1,776.79
Input VAT 113,831.54
Total Current Assets 722,837.80

Non-Current Assets
Leasehold Improvements 2,880,000
Machinery and Equipment 120,768.53
Office Equipment 49,330.36
Furniture and Fixtures 169,491.07
Other Asset (Security Deposit ) 292,500.00
Total Non-current Assets 3,512,090

Pre-Operating Expenses
Licenses & Legal Fees 26,960.00
Hiring expense 10,000.00
Advertising Expense 600,000.00
Rent Expense 1,170,000.00
Total Pre-Operating Expenses 1,806,960.00

TOTAL PROJECT COST 6,041,887.75
Less: Investment 10,000,000.00
Ending Balance, Cash 3,958,112.25
The business will be classified as limited partnership in which each partner will invest
2,000,000.00 with a total initial investment of 10,000,000.00.
 Operation Process
Employees shall enter and time-in the establishment 30 minutes earlier before the opening of
Libhub to set up and the clean up the entire place. Before the operation starts, the manager will
check if all facilities are working specially the CCTV and the counter machine. Also, the manger
will check if there are sufficient change funds in the cashier. Furthermore, the manager will
check if the employees properly clean up the entire place.
5
Upon entering the employees will greet the customer, when the customer reached the counter
the cashier will assist and answer the inquiries of the customer, afterwards , the customer will
be given a form to be filled up with name and time-in, then the receptionist will now assist the
customer to his/her designated area.
When the customer’s chosen time slot is near to end, the receptionist will approach them and
will ask whether they are going to extend or not. If the customer decided to extend the
receptionist will update the record and filled up form of the customer. Before leaving, the
customer will be assisted by the receptionist to the reception area to pay for services rendered
and the cashier will issue a receipt.
Financial Aspect
All assumptions in Financial Statements are projected as if there is no Pandemic. The business
will be classified as limited partnership in which each partner will invest 2,000,000.00 with a total
initial investment of 10,000,000.00.The financial calendar of the business will presume to start
on January 1, 2021. All capital and other operating expenses are financed by the Partners'
Contribution. Imprest system will be implemented.
6
MARKETING
ASPECT
Objectives of the Study / Statement of the Problem
● Is there a demand for the project?
● Who will be the target market?
● What are the marketing strategies used to promote the product?
● What makes the product more unique than the competitors’ product?
● Who are the existing competitors?
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Market Description
Target Area
According to Newberry (2018), “Defining your target market is one of a marketer’s most
important tasks. It is the foundation of all elements of your marketing strategy, from how you
develop and name your products or services right through to the marketing channels you use to
promote them.” This does not mean that everyone residing in that particular area is included but
only those who are a good fit to the business/service. The location of the business is a vital
factor in determining expenses and revenues as well as profits and losses. If the business is not
situated strategically, it will definitely cost the business some money and might soon lead to
bankruptcy which is why the proponents have decided to place the business in Mega One
Commercial Center in Quezon City. It aims to provide co-working spaces for students and
professionals who are having a hard time finding a place where they can study or work
efficiently.
Mega One Commercial Center is an ideal location for this type of business because it is located
at the heart of the boundaries between Quezon City and Manila which is home for a lot of
businesses. There is a call center right on top of this establishment and its neighboring
condominium, namely Sun Residences, houses a lot of students and young professionals. A
ride away to E. Rodriquez are basically hospitals and medical laboratories and to the opposite,
España, is what we call the University Belt which houses universities like the Far Eastern
University, Far Eastern University – Institute of Technology, University of Santo Tomas,
University of the East, San Beda University, Centro Escolar University and La Consolacion
College of Manila.
Competitive Situation
8
LibHub is categorized under Monopolistic Competition through extensive analysis of its market
and competitors. Monopolistic competition characterizes an industry in which many firms offer
products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a
monopolistic competitive industry are low, and the decisions of any one firm do not directly
affect those of its competitors. Although LibHub is not the first of its kind, the proponents made
sure to analyze the current market and take into consideration whatever that is in need of
improvement.
The key factor of this establishment is its ability to offer low rates despite its high grade facilities.
Equipped with a study area that surrounds a table-free amphitheater which is designed to give
more comfort to the customers who wanted to do their work whilst relaxing as it extends into a
paralleled mezzanine with chairs and table of its own, giving its customers a cohesive and
creative place that projects a comfortable and productive place to do their works. Stationed
within the space are printing sections to cater their technical works, a pantry that will give them
free snacks and drinks and also the freedom to dine in any outside food that they might need
within the duration of their stay, giving the customers more convenience unlike the traditional
co-working spaces. Conference rooms are also provided although a separate rent will be asked
of the customers
Competitor’s as it is excluded from the normal hourly rate.
Analysis
Table 2.1 Competitors

Direct Logo Address Price/Hour
Desk: P45/hour
#902 Eloisa St
Plug It Conference Room:
Manila, Philippines
P 400/hour
Desk: P 50/hour
#933 G.M Tolentino
933 Co-Working MNL St. Sampaloc, Conference Room:
Manila, Philippines
P 500/hour
9
Orange Desk España Blvd. Corner Desk: P 40/hour
Coworking Space and P. Noval Street,
Manila, Philippines Conference Room:
Study Lounge 1015 N/A
GF Torre Central, Desk: P 50/hour

Diligence Café
Galicia St, Sampaloc, Conference Room:
España Manila
N/A
#1042 G.M Tolentino Desk: P 50/hour
933 Creatives St. Sampaloc Conference Room:
Manila, Philippines
P 500/hour
Just-In-Time Study Mendiola Square, Desk: P 50/hour
Hub and Coworking Recto Ave, Quiapo,
Manila, 1001 Metro Conference Room:
Space Manila N/A
Panicroom GF Galleria Suites Desk: P 45/hour
Coworking Space 945 P. Noval Street,
Sampaloc Conference Room:
Manila Manila, Philippines N/A
#1563 España Blvd, Desk: P 50/hour
Stream Concept
Sampaloc, Manila, Conference Room:
Study Hub 1015 Metro Manila
N/A
Target Market
Market Structure
LibHub aims to cater students and young professionals by providing a coworking space
designed for their needs. Every detail of the establishment was thoroughly analyzed and studied
to suit its customers –– primarily the people with a monthly cash inflow of P5,000 to P30,000
and are from the Call Center in Mega One Center, doctors and nurses from United Doctors
Medical Center and St. Luke’s Hospital, students from the Far Eastern University, Far Eastern
University – Institute of Technology, University of Santo Tomas, University of the East, San
Beda University, Centro Escolar University and La Consolacion College of Manila. The location
10
of this establishment is accessible to the specified market considering it is at the heart of its
district and a ride away from the university belt.
Age Bracket
The target area of the business which mainly comprises of young students up to professionals is
a place where a lot of millennials and Gen Z’s are currently residing or working. Along with the
analysis of the location and market, it is derived that people within 16 to 30 years of age are the
frequent users of such facilities. This age bracket mostly encompasses students from the Senior
High level, the College lever and some even in the Post-Graduate level. The professionals who
are keen on using this type of services revolves more on the entry level staff up to the
supervisory level.
Sampling Area
The proponents of this study used surveying as their method of sampling. The survey
questionnaires were personally distributed by the proponents in areas with high frequencies of
visit from the competitors amongst España and Mendiola. Included in such areas were FEU,
FEU Tech, UST, UE, CEU, San Beda, and LCCM. Aside from the physical copies of the survey,
the proponents also utilized the use of internet by creating google forms and disseminating it
through Facebook to the students aforementioned.
Sampling Size
The proponents used the Slovin’s formula in order to compute for the sample size that will
represent the population of the whole. According to research per se, the total projected of the
target market for the year 2020 is 92, 641. This figure consists students from the Far Eastern
University (17, 201), FEU – Institute of Technology (6, 859), University of the East (8, 903), San
Beda University (11, 674), CEU (20, 000) and University of Santo Tomas (27, 804).
11
Furthermore, a probable client pool from St. Luke’s (150) and UDMC (50) completes this list.
The questionnaires were handed to 400 respondents based on the result of the computations.
Supporting computation is presented below.
Where:
n = number of samples
N = total population
e = margin of error
Sampling Method
The proponents decided on having Random Sampling as their sampling method because of its
ease and convenience. Random sampling is a part of the sampling technique in which each
sample has an equal probability of being chosen. A sample chosen randomly is meant to be an
unbiased representation of the total population. It is one of the simplest forms of collecting data
from the total population. Under random sampling, each member of the subset carries an equal
opportunity of being chosen as a part of the sampling process thus giving this study a fair and
just representation of the market’s demands, needs and wants. The proponents then relied on
the information given by the students and professionals on the survey in order to innovate and
improve their business.
SURVEY RESULTS
Survey Analysis
Presented below are the results of the survey conducted upon students from selected
universities of the proposed business.
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Figure 2.1
Respondents according on who’s fond of going to study hub.
17%
Yes
No
83%
Table 2.2
Respondents according on who’s fond of going to study hub.
Response Number Percentage
Yes 332 83%
No 68 17%
Total 400 100%
Figure # 2.1 and Table # 2.2 present the distribution of respondents who were fond of going to
study hub. From the data collected, 83% of the respondents were into a study hub while only
17% were not.
13
Figure 2.2
Respondents on how often they go to study hub.
23% 17%
12% Everyday
Thrice a week
Twice a week
9% Once a week
Thrice a month
14% 15% Twice a month
10%
Once a month
Table 2.3
Respondents on how often they go to study hub.
Everyday 56 17%
Thrice a week 39 12%
Twice a week 49 15%
Once a week 46 14%
Thrice a month 34 10%
Twice a month 30 9%
Once a month 78 23%
Total 332 100%
Figure # 2.2 and Table # 2.3 present the distribution of respondents on how often they went to a
study hub. The survey shows that the highest percentage was “once a month” with 23%,
14
followed by “every day” with 17%, twice a week with 15%, once a week with 14%, thrice a week
with 12%, thrice a month with 10%, and with the least percentage was twice a month with 9%.
Figure 2.3
Respondents on how long do they stay in study hub.
Hours
10% 4% 1% 5% 1
19% 2
2% 3
11% 4
5
6
7
8
More than 8
18%
31%
Table 2.4
Respondents on how long do they stay in study hub.
From Hours Number Percentage the

1 2 0%
data
2 17 5%
3 63 19%
4 102 31%
5 59 18%
6 36 11%
7 8 2%
8 32 10%
More than 8 13 4%
Total 332 100%
collected which are illustrated by figure # 2.3 and table # 2.4 shows that 31% of the respondents
15
stay in a study hub for 4 hours, 19% stays for 3 hours, 18% stays for 5 hours, 11% stays for 6
hours, 10% stays for 8 hours, 5% stays for 2 hours, 4% stays for more than 8 hours, 2% stays
for 7 hours, and 0% stays for 1 hour.
Figure 2.4
Respondents according on the amount they spend per hour.
In peso
9% 18% 40
14%
50
60
70
8% 80
90
6% 31% More than 90
13%
Q4: How much do you

spend for an hour?
Table 2.5
Respondents according on the amount they spend per hour.
Peso amount Number Percentage
40 61 19%
50 104 31%
60 42 13%
70 21 6%
80 27 8%
90 47 14%
More than 90 30 9%
16
Total 332 100%
Figure # 2.4 and Table # 2.5 shows the results of survey that 31% of the respondents were
spending 50 pesos per hour, 19% are spending 40 pesos, 14% are spending 90 pesos, 13%
are spending 60 pesos; 9% are spending for more than 90 pesos, 8% are spending 80 pesos,
and only 6% are spending 70 pesos per hour.
Figure 2.5
Respondents on whether or not they are availing conference room in a study hub.
25%
Yes
No
75%
Table 2.6
Respondents on whether or not they are availing conference room in a study hub.
Yes 82 25%
No 250 75%
Total 332 100%
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Figure # 2.5 and Table # 2.6 illustrates the distribution of the respondents on having a
conference room in a study hub. Out of 332 respondents, only 25% prefers having a conference
room and 75% are not in favor.
Figure 2.6
Respondents according on the amount they

Maximum
Maximum of
of10
6 persons
persons
20% spend on availing a conference room.

9% 5%
300
500
Table 2.7
9% 330 46%
550
600
360 52% Respondents according on the amount they
More than Maximum
34%
600
360
Maximum
spend on availingofa 6conference
persons room.of 10 persons
26%
No answer Price per Price per
Number Number
Percentage Percentage
hour hour
300 pesos 43500 pesos 52% 38 46%
330 pesos 28550 pesos 34% 21 26%
360 pesos 7600 pesos 9% 7 9%
More than More than

4 5% 0 0%
360 pesos 600 pesos
No answer 0No answer 0% 16 19%
As presented in Figure # 2.6 and TableTotal

# 2.7, it illustrates 82
the amount of100%
Total rent per
82hour for 100%
availing a conference room with a maximum of 6 persons and maximum of 10 persons. A
conference room for a maximum of 6 persons, out of 82 respondents who wants a conference
room, 52% is spending 300 pesos per hour, 34% is spending 330 pesos, 9% is spending 360
pesos, and 5% is spending for more than 360 pesos.
On the other hand, a conference room with a maximum of 10 persons, 38% is spending 500
pesos per hour. 26% is spending 550 pesos, 9% is spending 600 pesos, and 19% has no
answer.
Figure 2.7
18
Respondents according on their willingness to travel for a comfortable co-working space
36%
Yes
No
64%
Table 2.8
Respondents according on their willingness to travel for a comfortable co-working space
Yes 221 64%
No 121 36%
Total 332 100%
From the data collected which are illustrated in Figure # 2.7 and Table # 2.8 shows that out of
332 respondents, 64% are willing to travel for a comfortable co-working space and only 36% are
not.
Demand Projection
Figure 2.8
Respondents according on willingness to visit LibHub
19
1%
Yes
No
99%
Table 2.9
Respondents according on willingness to visit LibHub
Yes 330 99%
No 2 1%
Total 332 100%
Figure # 2.8 and Table # 2.9 shows the results of survey that out of 332 respondents 99% are
willing to visit our co-working space, LibHub and only 1% is not.
Figure 2.9
Respondents on
10%
how often they will
10% 12%
17%
Everyday visit LibHub.
Thrice a week
Twice a week
Once a week
9% 19% Thrice a month
24% Twice a month 20
Once a month
Table 2.10
Respondents on how often they will visit LibHub.
Everyday 34 10%
Thrice a week 38 11%
Twice a week 63 19%
Once a week 78 24%
Thrice a month 30 9%
Twice a month 55 17%
Once a month 32 10%
Total 330 100%
From the data collected which are illustrated by figure # 2.9 and table # 2.10 shows that 24% of
the respondents visits a study hub once a week, 19% for twice a week, 17% for twice a month,
11% for thrice a week, 10% for once a month and every day, and with the least percentage was
thrice a month with only 9%.
Figure 2.10
Respondents according on how long do they are willing to stay in LibHub.
21
10% 2% 1% 5% 15%
Hours
12% 2% 1
2
3
4
5
6
7
8
More than 8
22% 32%
Table 2.11
Respondents according on how long do they are willing stay in LibHub.
Hours Number Percentage
1 2 1%
2 15 5%
3 51 15%
4 104 31%
5 74 22%
6 40 12%
7 6 2%
8 32 10%
More than 8 6 2%
Total 330 100%
From the data collected which are illustrated by figure # 2.10 and table # 2.11 shows that
31% of the respondents stay in a study hub for 4 hours, 22% stays for 5 hours, 15% stays for 3
22
hours, 12% stays for 6 hours, 10% stays for 8 hours, 5% stays for 2 hours, 2% stays for 7 hours
and for more than 8 hours, and 1 hour with the least percentage of 1%.
Figure 2.11
Respondents according on the amount they are willing to spend per hour.
15% 6%
In Peso
50
43%
60
70
12% 80
90
More than 90
12% 13%
Table 2.12
Respondents
according on the amount they are willing spend per hour.
Peso amount Number Percentage
50 142 43%
60 44 13%
70 38 11%
80 38 12%
90 49 15%
More than 90 19 6%
Total 330 100%
Figure # 2.11 and Table # 2.12 present the distribution of respondents on the amount they are
spending per hour in a study hub. The results show that 43% of the respondents will spend 50
23
pesos per hour, 15% are spending 90 pesos, 13% are spending 60 pesos, 12% are spending
80 pesos, 11% are spending 70 pesos, and 6% are spending more than 90 pesos per hour.
Figure 2.12
Respondents according on operating hours they prefer.
28%
41%
12pm-6am
11am-5am
10am-4am
9am-3am
14% 17%
Table 2.13
Respondents
according on operating hours they prefer.
Operating hour Number Percentage
12:00pm-6:00am 135 41%
11:00am-5:00am 55 17%
10:00am-4:00am 47 14%
9:00am-3:00am 93 28%
Total 330 100%
As shown in figure # 12 and table # 13, 41% of the respondents prefer to go on a study from
12:00pm-6:00pm, 28% prefer 9:00am-3:00am, 17% prefer 11:00am-5:00am, and 14% prefer
10:00am-4:00am.
Figure 2.13
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Respondents on whether or not they are going to avail a conference room in
LibHub.
8%
Yes
No
92%
Table 2.14
Respondents on whether or not they are going to avail a conference room in LibHub.
Yes 302 92%
No 28 8%
Total 330 100%
Figure # 2.13 and Table # 2.14 illustrates the distribution of the respondents on having a
conference room in a study hub. Out of 330 respondents, 92% prefers having a conference
room and only 8% are not in favor.
Figure 2.15
Maximum
Maximum of
of10
6 persons
persons
Respondents according on the amount they are
270
450
26% 7%
300
500 willing to spend in availing a conference room.
33% 330
550
54%
More than
6% 330
550 60% 25
13% No answer
Table 2.16
Respondents according on the amount they are willing to spend in availing a conference
Maximum of 6 persons
room.
Price per
Number Percentage
hour
Maximum of 10 persons
270
180 60%
pesos Price per
Number Percentage
hour
300
101 33%
pesos 450 pesos 164 55%
330 500 pesos 40 13%

21 7%
pesos
550 pesos 19 6%
More
More than
than 330 0 0% 0 0%
550 pesos
pesos
No answer 79 26%
No
0 0%
answer Total 302 100%
Total 302 100%
As presented in Figure # 2.15 and Table # 2.16, it illustrates the amount of rent per hour for
availing a conference room with a maximum of 6 persons and maximum of 10 persons. A
conference room for a maximum of 6 persons, out of 302 respondents who wants a conference
room, 60% is spending 270 pesos per hour, 33% is spending 300 pesos, and only 7% is
spending 330 pesos.
On the other hand, a conference room with a maximum of 10 persons, 55% is spending 450
pesos per hour. 13% is spending 500 pesos, 6% is spending 550 pesos, and 26% has no
answer.
Figure 2.16
Respondents according on a form of advertisement they prefer.
26
8% 1%1%
Social Media
Flyers Table 2.17
Newspaper
Others Respondents
91%
according on a form of advertisement they prefer.
Form of
Number Percentage
advertisement
Social Media 299 91%
Flyers 25 7%
Newspaper 2 1%
Others 4 1%
Total 330 100%
From the data collected, Figure # 2.16 and Table # 2.17 illustrates the form of advertisement
that the respondents wants in able to reach them. It shows that social media has the highest
percentage with 91%, followed by flyers with 7%, and only 1% for newspaper and others.
Projected Demand
Market Population 92641

x Percentage of student who are fond of going to study hub.
(Based on survey )
83%
Total market for study hub. 76892
x Percentage of student who are willing to visit LibHub.
(Based on survey )
99%
Total market for LibHub 76123
x Percentage of student who preferred conference room.
(Based on survey ) 27
92%
Total market for LibHub Conference Room 70033
Table 2.18
Projected Customers of LibHub
A = Frequency on how often the customers are willing to visit LibHub in a year.
B = Based on the demand survey result of “How often are you willing to visit us?”
C = (B) Number of respondent ÷ total number of respondents.
D = (C.) Percentage x 76,123 (Total Market Population for LibHub)
E = (A) Frequency in a year x (D) Market Population that are willing to try the service.
F = (E.) Number of customers per year ÷ 365 (Number of Days in a year)
G = (F) Projected number of customers per day ÷ 19 (Number of operating hours)
Table 2.19
Projected Customers of Conference Room (LibHub)
28
A = Frequency on how often the customers are willing to visit LibHub in a year.
B = Based on the demand survey result of “How often are you willing to visit us?”
C = (B) Number of respondent ÷ total number of respondents.
D = (C.) Percentage x 70,033 (Total market population for Conference Room)
E = (A) Frequency in a year x (D) Market Population that are willing to try the service.
F = (E.) Number of customers per year ÷ 365 (Number of Days in a year)
G = (F) Projected number of customers per day ÷ 19 (Number of operating hours)
SWOT
Figure 2.17
29
Weaknesses
Strengths
• The location is far compared to other study hub
• Has books and reviewers.
• New to industry
• Lends books.
• Allows outside foods without corkage.
•Printing and photocopy service
There
There are
are lots
lots of
Opportunity
of university
university around
around Manila,
Manila, specifically
SWOT
specifically U-Belt
U-Belt area.
area.
Threats
• High number of competitors
Location
Location is
is nearby
nearby aa condo
condo where
where many
many students
students resides.
resides.
• Virus outbreak
Strengths
Libhub is like a library that has books and reviewers available for customers to read within the
place. Furthermore students may borrow reviewers and books for a certain time. Also, Libhub
will allow student to bring their own snacks and we will not ask them for corkage fee; while other
studying facility such as library and other study hub won't allow outside food.
Libhub offers printing and photocopy exclusive in their first payment. Printing and photocopy
inside the premises is a big help for students especially those who doesn't have enough time to
go outside and find a computer shop
Weaknesses
The location is a little bit far compared to competitors that are only walking distance to some
school in u-belt. Another factor is that it is new to industry; it is always a weakness because
most people won't try a place if it is not known and trusted by many.
Opportunities
30
There are lots of universities around Manila specifically U-Belt meaning that there many
students which is the target market of the business. In addition, the location may also be an
opportunity because it is near a condo where many students reside, and it is just along the road
where many cars, PUV drop their passengers and it is one ride from u-belt.
Threats
There are many competitors in the industry that has been known for many years and trusted by
customers. It might be hard for them to change the place of their study if they were used to that
particular setting.
Just like the recent pandemic (COVID-19), outbreaks may occur in the future. It will have a big
impact in the profit especially if the outbreak becomes pandemic that may lead to lockdown of
Metro Manila. All of the stores will be close and classes will be suspended that will be a threat to
business.
Promotion Strategy
Digital Marketing – By this mean, we are targeting the audiences that are mostly influenced by
and/or critiques of contents and social advertising. It is proven that e-Commerce is the fastest
growing market in industry.
a.) Content Marketing – Although this indirect form of advertisement might take time to
effect, this strategy is the most convincing to create brand awareness. LibHub will
incorporate valuable information to customers about studying comfortably in a cozy
and pleasant environment.
b.) Social Media – Exposure is a great strategy. LibHub will create its own page and
space for Facebook and Instagram audience. This will create a relationship
between potential customers and our brand.
31
Figure 2.18
Facebook Page
Figure 2.19
Instagram Account
c.) Run Referrals – Building trust in the service is the most difficult to obtain.
LibHub will exercise promoting ‘word of mouth’ through a ‘referral program’ by
rewarding its customers who share their LibHub experience through social
32
media one (1) hour free of stay. This promo will run for the first two (2) weeks
of Libhub’s soft-opening.
Loyalty Program – It is proven that rewards changes spending behaviors. This is an
effective way to drive customer retention.
Figure 2.20
Front
Figure 2.21
Back
33
Pricing Strategy
Geographical pricing – it involves setting a price range based on the location. Factors may be
the supply and demand, location –specific rent, taxes, etc. For instance, the compatibility of the
business like LibHub in University-belt affects the overall costing.
Promotional pricing – this involves offering discounts or promos on services. This strategy
may be short-term or that can be run only for special days. LibHub incorporates this strategy in
the form of reward-card.
Value pricing – used mostly when external factors like multiple competitions or a recession
force a small business to provide value to its customers to maintain sales. In this case, LibHub
levels the edge from its pleasant interior design, additional reading materials, and promos.
LibHub service rates based on the most voted data are as follows.
Plus discount/promo
Promo-rate
Hourly-rate upon presentation of
(4 + 1 hour)
Loyalty Card
Desk-space Php 50.00 Php 200.00
Leg room Php 50.00 Php 200.00
Conference-room varies
Php 300.00 Php 1500.00
(small; max of 6pax)
Conference-room
Php 500.00 Php 2000.00
(large; max of 10pax)
Marketing Program
34
Product
Alternative learning models such as study hubs that enable learning available anytime and
anywhere will benefit not just only students but for a wider community, too. LibHub will provide
study and conference spaces, internet access, and other accessories to support those who
struggle finding comfort studying in a different environment- a clean & pleasant space is a must,
for easier communication with peers through conferences and making stay worthwhile with the
use of free study materials provided.
Price
LibHub’s study space environments include office spaces arranged on a per hour basis, as well
as workshops and meeting spaces, and desk spaces. With these varieties of services are the
rates that are based on the capacity of the students’ budgets pooled on data gathered from the
survey. LibHub applies cost-plus pricing strategy, where a markup is placed on cost to at least
prevent deficit. Since the business is on its startup stage, competition-based strategy may be
used in the long-run.
Promotion
Advertisement will lead an important role to a starting small business like LibHub. A large
percentage will be given to e-advertising such as administrating social media, making good use
of content marketing, referral programs and boosting sales through earning regular customers
with a decent loyalty programs.
Place
LibHub will be placed near a high concentration of learning community near University-belt. It
will be situated at Mega One Building, Along Espana near Rotanda, Sta, Teresita, Quezon City,
1008 Metro, Manila. The business will take advantage of the target market especially positioned
35
beside a commercial residence - taking into consideration the students and professionals who
are possible customers, and where the building is easily seen with a considerably large
commercial signage to reach more customers.
36
Management
and Legal
Aspect
Objectives of the Study/Statement of the Problem
● What are the legal requirements that must be complied with in order to start the
business?
● What are the manpower qualifications needed for the business?
● What are the compensation and benefits that will be received by the
employees?
● What are the organizational policies to control and monitor the business?
37
Form of Business Organization
LibHub is a limited partnership. Limited partnerships are comprised of two or more partners but
it is mandatory that there should be at least (1) general partner. On the other hand, Libhub is
composed of (3) three general partners and (2) two limited partners. Limited partnership allows
limited partners to limit their own liability for business debts according to their portion of
ownership or investment. Partners shared resources provides more capital for the business and
each partner shares the total profits of the company.
Legal Requirements
Step 1 – Register a company name with Securities and Exchange Commission (SEC) to
acquire SEC Certificate of Registration.
The following are the requirements to register a partnership:
Basic Requirements: (i) Name Verification Slip (online or at the name Verification Unit), (ii)
Articles of Partnership, and (iii) Written Undertaking to Change Partnership Name by any
partner.
Additional requirements: (i) Endorsement/clearance from other government agencies, if
applicable and (ii) For partnership with foreign national as partner a) FIA Form – 105.
Note: For limited partnership, the word “Limited” or “Ltd” should form part of the partnership
name.
Registration Process: (a.) Verify or reserve proposed name (100.00 pesos reservation fee
valid for 30 days), (b.) Present Articles of Partnership and By-Laws (Filling fee: 1/5 of 1% of the
Partnership’s capital but not less than 2000.00 pesos plus 1% of the amount as legal research
fee), (c.) Pay filling fee at the cashier, and (d.) Present official receipt to releasing unit.
38
Step 2 - Register with the Barangay to acquire Barangay Certification of Registration.
Registration Process: (a.) Go to the Barangay where the business is located to fill out an
application. (b.) In addition to application form, submit the following supporting documents: (i)
SEC Certificate of Business Registration, (ii) Two (2) valid IDs, (iii) Proof of residence (Contract
of Lease). (c.) Claim the Barangay Certificate of Registration (Cost: P500).
Step -3 Obtain Lessors Permit (This is usually the lease contract between the lessor and
lessee.)
Step 4 - Register the business in the Mayor’s Office
Registration Process: (a.) Go to the Municipal office where the business is located and secure
an application. (b.) Submit the completed application form together with the following: (i) SEC
Certificate of Registration, (ii) Articles of Partnership, (iii) Original Barangay Business
Clearance, (iv) Lease Contract, (v) Public Liability Insurance SPA for Authorized
Representatives with I.D, (vi) Building Permit. (c.) Pay for the corresponding fees and wait for
the releasing of the business permit and licenses (The fees vary depending on the local
government unit (city/municipality) issuing the mayor’s permit).
Estimates: (P900) sanitary permit fee + 0.2% of capital for licenses fee, (P2500) garbage
collection fee, (P360) occupational fee, (P905) occupational police clearance/health clearance,
(P1500) plumbing inspection fee, (P850) electrical inspection fee, and (P400) sign board permit
fee.
Step 5 - Register with the Social Security System (SSS)
Registration Process: (a.) Fill up the Employer Registration Form (SS Form R-1) and the
Specimen Signature Card (SS Form L-501) together with the original and photocopy of Articles
of Partnership. One partner is enough for this transaction. (b.) Employment Report Form (SS
39
Form R-1A) shall also be filled up to be submitted within 30 days upon hiring of employees. The
form shall be filled up with the complete employees’ information such as social security number,
birth dates, employment start dates, monthly compensation, and positions. Each employee is
assumed to have existing SSS, otherwise the employee must register on his/her own before
employment.
Step 6 – Register the business in the Bureau of Internal Revenue (BIR)
Application for Tax Identification Numbers (TIN): (i) Accomplish BIR Form 1903 (Application
for Registration), BIR Form 0605 (Payment Form), and BIR Form 2000 (Documentary Stamp
Tax Declaration/Return). and submit the same together with the required supporting documents
to the Revenue District Office (RDO) that has jurisdiction over the registered address of your
business establishment. The supporting documents to be attached to the Form 1903 are as
follows: (a.) SEC Certificate of Registration, (b.) Articles of Partnership, (c.) Barangay Clearance
(d.)Mayor’s Permit or application for Mayor’s Permit, and (e.) Contract of Lease. (ii) Pay the
Annual Registration Fee (partnership capital/200*2 Php for the partnership; and for lease, 3 Php
for the first 2,000 Php and additional 1 Php for every 1000 fraction) at the Authorized Agent
Banks (AABs) of the concerned RDO. (iii) Pay the Documentary Stamp Tax (DST) on
Subscription and Lease (BIR Form 2000). The DST on Subscription depends on the amount of
company’s capital while the DST on Lease depends on company’s monthly rental.
After receipt of the aforementioned requirements, BIR officials will inform company when the
BIR Certificate of Registration (Form 2303) is going to be available.
Step 7 - Register with Philippine Health Insurance Corporation (PhilHealth)
Registration Process: (a.) Go to the PhilHealth office and fill up Employer Data Record (ER1)
Form and PhilHealth Membership Registration (PMRF). Each employee is assumed to have
existing PhilHealth, otherwise the employee must register on his/her own before employment.
40
(b.) After process employer will be given: PhilHealth Employer Number (PEN); Certificate of
Registration; PhilHealth Identification Number (PIN); and Member Data Record (MDR) of
registered employees. (c.)Display the Certificate of Registration on the admin office.
Step 8 - Register Home Development Mutual Fund (Pag-IBIG Fund)
Registration Process: (a.) Go to Pag-IBIG office, fill up and submit Member’s Contribution
Remittance Form (MCRF), indicate each employee as new hire. Each employee is assumed to
have existing Pag-IBIG; otherwise the employee must register on his/her own before
employment.
Step 9 - Register Business Trademark/Logo with the Intellectual Property Office of the
Philippines.
Registration Process: (a.) Go to Bureau of Trademark of the IPO office. Fill up trademark
application form and pay for filing fee. An officer will examine the application form then an
application number will be provided. (b.)Series of examination and searching to determine the
uniqueness of the logo.(c.) If passed, the trademark is then published to IP Philippines
eGazette. The public is given 30 days for any opposition against the logo. (d.) Certificate of
Registration shall be given once verified by the Director of the Bureau of Legal Affairs that no
one opposed to the said logo. (e.) Certificate of Registration shall be published once again to
the IP Philippines eGazette. The certificate is valid for 10 years.
Table 3.1
Summary of Legal Requirements
Legal Requirements Documents Needed Fees to be Paid
SEC Registration Cover Sheet P100
Articles of Partnership P16,160
41
Business name P200(fare)
Total: P16,460
Barangay Clearance Cedula P100
Application Form P100 (fare)
Total: P 200
Lessor’s Permit - No Charge
Business Permit SEC Registration Estimations (fees may vary)
Articles of Partnership P900 (sanitary permit fee + 0.2% of

capital for licenses fee)
Barangay Clearance P2,500 (garbage collection fee)
Lease Contract P360 (occupational fee)
P905 ( occupational police

clearance/health clearance)
P1,500 (plumbing inspection fee)
P850 (electrical inspection fee)
P500 (building permit fee)
P400 (sign board permit fee)
Total: P 7,915
SSS SS Form R-1 No Charge
SS Form L-501
SS Form R-1A
BIR SEC Registration P500 Registration fee
Articles of Partnership 15 (Documentary Stamp)
Barangay Clearance P100 (Certification Fee)
Business Permit
Lease Contract
BIR Form 1903
BIR Form 0605
BIR Form 2000
42
Total: P615
PhilHealth ER1 No Charge
PMRF
Pag-IBIG MCRF No Charge
LTO License and Registration

applications
Trademark Business Logo P1,770

Certifiacate
Application Form
Figure 3.1
Project Time Table
Figure 3.2
ORGANIZATIONAL CHART
The Partners
Accountant
Manager (Managing Partner) (Outsourced)
43
Day Shift Support Shift Night Shift
On Call Staff
Cashier Receptionist (E 4) Cashier Receptionist (R3
(C 1) (R1 and R2) (C 5) and R4)
EMPLOYEES DUTIES AND FUNCTIONS
Manager
The partnership includes a Managing partner who will act as the manager of the business.
Being a manager, the managing partner is in-charge on financial, operating and human
resource management. Financial management, the manger maintains records of financial
transactions and manages the finances of the business. As to operating and human
resource management, the manager shall ensure the legal requirements and compliance.
Moreover, the manager provides oversight and direction to the employees in the operating
unit in accordance with the organization's policies and procedures. Hence, will create a
workplace culture that is consistent with the overall organization's and that emphasizes the
identified mission, vision, guiding principles, and values of the organization.
Cashier
The cashier will handle cash, collect payments and in-charge with the redemption of stamps
and coupons by the customers. Also the cashier will count money in cash drawers at the
beginning and end of shifts to ensure that amounts are correct and that there is adequate
change. Furthermore, the cashier must pleasantly deal with customers to ensure satisfaction.
44
The qualifications of the cashier are as follows : 20 to 35 years old ,at least a high school
graduate ,must have one-year work experience as cashier, good physical condition, basic math
and computer skills, ability to handle transactions accurately and responsibly, has experience
with developing a constructive working and interpersonal relationships with colleagues and
customers.
Receptionist
Receptionist serves customer by greeting, welcoming, and directing them appropriately. Also
the receptionist notifies cashier of customer arrival, maintains security and telecommunications
system and informs customer by answering or referring inquiries. Moreover, the receptionist
keeps a safe and clean reception area by complying with procedures, rules, and regulations.
The qualifications of receptionist are as follows: 20 to 35 years old, must possess at least a
High School Diploma, has the ability to work under pressure, must have great and cheerful
personality and can adjust in flexible work schedule.
Accountant
The accountant will verify and reconcile transactions monthly, prepare the set of financial
records of the company monthly, prepare budget forecasts, provide technical support and
advice. Also the accountant will reconciles financial discrepancies by collecting and analyzing
account information. Furthermore , the accountant shall comply with federal, state, and local
financial legal requirements by studying existing and new legislation, enforcing adherence to
requirements, and advising management on needed actions.
The qualifications of accountant are as follows: must be a Certified Public Accountant, 30 years
old and above full/wide experience, strong attention to detail and good analytical skills,
deadline-oriented and must have good communication skills.

45
ORGANIZATIONAL POLICIES
Recruitment
 Job Posting– Positions available are posted online via job search engines and social
networking sites employed by the company. Initial requirements should be met to be due
for screening.
 Screening- Applications are assessed and evaluated by the managing partner, subject
to the approval of the remaining partners. Approved applicants are set for interview and
notified through email or text message. Interviews are held in the main office to be
personally interrogated by the managing partner mainly about work, education, health
concerns. They are also given simple situational scenarios to assess their emotional and
cognitive capacity.
 Requirements- After passing the interview, they are required to submit the minimum
requirements (birth and medical certificates, NBI and barangay clearances, SSS
photocopy and most recent identification picture (2x2)). Only upon submission of all
requirements shall the applicant may proceed to contract signing, to be held in the main
office.
Employment
Newly-hired employees must observe a 30-day probationary period before the regularization.
This process is beneficial for the company to retain quality employees that have pleasant
behavior and qualifications suitable for the service.
Resignation
Employees who want to file their resignation must submit a form 1-month prior the desired day
of leave. This is to allow the management to post for job openings for immediate substitution to
avoid disruption in the service.
46
Termination
Any violations cited under the Labor Code (Art. 282 and 285) may subject the employee for
termination.
Benefits/ Compensation
Salary and compensation are provided in detail on the legal aspect part of this paper. (See page
-)
Attendance
 Work Schedules- Employees are assigned eight (8) hours a day, five (5) times a week
on rotational basis, provided, a just compensation. Break times are exclusive on the
required service hours.
 Punctuality- Tardiness among employees is not conceited. They should arrive at least
15 minutes early before the time. Consecutive days of tardiness shall receive a sanction
from the managing partner.
 Absences- Employees should notify the managing partner ahead of time, through e-
mail, with their rea son of such absence. Failure of this duty may result to a sanction.
 Overtime- Exceeding hours are given an additional compensation equivalent up to at
least twenty-five (25%) percent of their regular wage. This should be recorded to the
employees’ corresponding log book .
 Under-time- Serving for less than eight (8) hours a day shall not be offset by overtime
work. Instead, they are compensated for an equivalent of their half day.
 Scheduled Leave- There are no compensation for this event. LibHub is exempted for
granting this in case of being a small business, as provided in the law.
Employee Work Behavior
LibHub services must be done accordingly with proper behavior and etiquette. This will help the
business gain more regular customers and foster nice environment. Rules and regulations must
47
be observed every time an employee is inside the workplace. This includes prohibition of illegal
possessions, using of inappropriate words and applying violence in work premises.
Dress Code and Sanitation
Fostering a nice environment is part of the LibHub’s mission to be the students’ first choice.
Pleasant surrounding and employees’ proper hygiene takes part in this area. Each is mandated
to wear presentable clothes partnered with name tags, hair should be neat, and no wearing of
slippers. Slight makeup is acceptable. Piercings and tattoos should be kept to a minimal.
INTERNAL CONTROL
These are protocols or guidelines for employees to follow, create a favorable environment, and
to ensure effective internal controls. By doing this, LibHub avoids the risk of fraud or losses in
the business. This is to make sure assets are safeguard, financial information are reliable, to
ensure compliance and to achieve the business objectives.
Financial Controls
 Cash Receipts. Collections are kept in the cash register. Any shortage of lower than 20 pesos is
tolerable, otherwise, overage is recorded as miscellaneous income.
 Purchases/ Disbursements. Petty Cash Fund will be established for small expenses under the
custody of cashier. Purchase order is requested to the managing partner and issue checks with
a signature in case of purchase assignment.
 Payroll. Managers can only access this account and password is updated often. This is
automated and is updated at least once a month by outsourced accountant. Salaries are
provided with a detailed pay slip or pay stub for counterchecking. Bank accounts are reviewed
to ensure each pay is disseminated.
48
 Authorization. It is required to have at least a signature from the managing partner when making
a check or deposit, especially when making large transactions such as buying monthly needs.
This is to prove that the transactions are seen and approved by the manager. Assign distinct
person to count and make the deposit.
 Periodic Reconciliation. This is to make sure balances from other entities are matched from the
book. This is done monthly by the accountant.
For Employees
 Clear duties. Employees of LibHub are properly oriented of their duties and responsibilities that
is made distinct for them to avoid collisions. Supervision is a must.
 Formalizing internal policies. Employees should know the basics of the policies and procedures
such as knowing when and where to address the problem, the guiding principles whenever
there are situations needed of personal judgment.
 Attendance. LibHub will use a bundy clock for time-checking.
 Open Communication. This is important for the employer-employee relationship to have
freedom to voice out their concerns and suggestions.
 Approval Authority level- There should be a purchasing authority levels for staff.
Feedback. - This is way for the employees to report breaches in internal controls and report
suspicious behavior.
Safety Assistance. - LibHub will provide a surveillance system, such as CCTV, in monitoring
cashier and entrance area.
Other Controls
Management Controls:
49
• In case of conflict between the customer and employee, the said employee should call the
attention of the manager/supervisor to resolve the conflict.
• Left behind items such as cellphones and laptops should be surrendered to the admin office,
and if the customer seeks the item, he/she should proceed to the admin office to prove his/her
ownership.
• Unexpected events such as robbery and fire must be informed to the local authorities
immediately to resolve the problem if possible.
• In case of injury to the customer assigned personnel/employee should assist the customer
immediately. First aid should be given immediately and if worse conditions happened the
employee should contact and seek the help of the nearest clinic or hospital.
• Damage or not working equipment should be removed from the premises or at least attached
with a notice note. In case of need for a repair, the admin should seek the service of the
equipment provider.
• Damaged equipment/facility/ property of company due to a customer's fault should be charged
to the said customer, the cost of repair or the replacement cost.
Waste Disposal Management
A receptionist shall be in charge of the overall cleanliness of the establishment. For proper
segregation, 3 types of trashcans shall be provided for the whole establishment. These are the
controls and policies that must strictly followed by the employees:
• A policy of “Clean as you go” (CLAYGO) shall be implemented in the establishment.
• Before opening the establishment, the employee shall ensure of its cleanliness.
• Waste left by the customer shall be properly dispose by the receptionist.

50
• Comfort room shall be maintained clean .
LEGAL ASPECT
Hours of work
The offices shall hold regular office hours for eight (8) hours a day, for five (5) days a week,
exclusive of time for meals. However, the LibHub will be operating for eighteen (18) hours a
days and six (6) days a week, or one hundred eight (108) hours.
Meal periods
Every employee is entitled to not less than sixty (60) minutes time-off for their regular
meals.
Night shift differential
Every employee shall be paid a night shift differential of not less than ten percent (10%)
of his regular wage for each hour of work performed between ten o’clock in the evening and six
o’clock in the morning.
Overtime work
Work may be performed beyond eight (8) hours a day provided that the employee is paid
for the overtime work, an additional compensation equivalent to his regular wage plus at least
twenty-five percent (25%) thereof.
Work performed beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least
thirty percent (30%) thereof.
51
Undertime not offset by overtime
Undertime work on any particular day shall not be offset by overtime work on any other
day. Permission given to the employee to go on leave on some other day of the week shall not
exempt the employer from paying the additional compensation required in this Law.
Right to weekly rest day
Each employee has a rest period of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal work days.
Compensation for rest day, Sunday or holiday work
Where an employee is made or permitted to work on his scheduled rest day, he shall be
paid an additional compensation of at least thirty percent (30%) of his regular wage. An
employee shall be entitled to such additional compensation for work performed on Sunday only
when it is his established rest day.
When the nature of the work of the employee is such that he has no regular workdays
and no regular rest days can be scheduled, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage for work performed on Sundays and holidays.
Work performed on any special holiday shall be paid an additional compensation of at
least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on
the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least
fifty per cent (50%) of his regular wage.
Right to holiday pay
52
Every worker shall be paid his regular daily wage during regular holidays, except in retail
and service establishments regularly employing less than ten (10) workers.
Right to service incentive leave
Those employed in establishments regularly employing less than ten employees or in
establishments exempted from granting this benefit by the Secretary of Labor and Employment
after considering the viability or financial condition of such establishment.
The grant of benefit in excess of that provided herein shall not be made a subject of
arbitration or any court or administrative action.
Minimum wages
Retail or Service Establishments employing 15 workers or less has a minimum wage rate of
₱500.00. However LibHub will have a wage rate of ₱520.00.
Forms of payment
LibHub will open a payroll account for each employee wherein they will have an ATM card
to have their personal salaries.
Time of payment
Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days. If on account of force majeure or circumstances beyond the employer’s control,
payment of wages on or within the time herein provided cannot be made, the employer shall pay
the wages immediately after such force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a month.
53
54
Table 3.2
Salary Scale
Total
Time Hourly Daily 10% Night Monthly Employee's Share Net Employer's Share Employer's
Differentia SSS PhilHealt SSS(8% PhilHealt
Schedule Rate Rate l Salary (4%) h HDMF Tax Amount ) h HDMF Share
15,158.3
M 77.50 620.00 - 16,120.00 640.00 221.65 100.00 - 5 1,310.00 221.65 100.00 1,631.65
12:00NN- 12,694.1
R1 9:00PM 65.00 520.00 - 13,520.00 540.00 185.90 100.00 - 0 1,050.00 185.90 100.00 1,335.90
12:00NN- 12,694.1
R2 9:00PM 65.00 520.00 - 13,520.00 540.00 185.90 100.00 - 0 1,050.00 185.90 100.00 1,335.90
12:00NN- 12,694.1
C1 9:00PM 65.00 520.00 - 13,520.00 540.00 185.90 100.00 - 0 1,050.00 185.90 100.00 1,335.90
13,340.8
E 6:00PM-2:00AM 65.00 520.00 676.00 14,196.00 560.00 195.20 100.00 - 0 1,130.00 195.20 100.00 1,425.20
13,654.1
R3 9:00PM-6:00AM 65.00 520.00 1,014.00 14,534.00 580.00 199.84 100.00 - 6 1,170.00 199.84 100.00 1,469.84
13,654.1
R4 9:00PM-6:00AM 65.00 520.00 1,014.00 14,534.00 580.00 199.84 100.00 - 6 1,170.00 199.84 100.00 1,469.84
13,654.1
C2 9:00PM-6:00AM 65.00 520.00 1,014.00 14,534.00 580.00 199.84 100.00 - 6 1,170.00 199.84 100.00 1,469.84
55
56
TECHNICAL
ASPECT
Objectives of the Study or Statement of the Problem
● What are the step-by-step procedures in making the proposed project?
● What are the required supplies for the proposed service?
● What is the Property, Plant, and Equipment to be used in the business
operation?
● What is the operation capacity of the business in a day?
● What is the total projected cost?
Pre- Operation and Operation/Service Process

57
Employees shall enter and time-in the establishment 30 minutes earlier before the opening of
Libhub to set up and the clean up the entire place. Before the operation starts, the manager will
check if all facilities are working specially the CCTV and the counter machine. Also, the manger
will check if there are sufficient change funds in the cashier. Furthermore, the manager will
check if the employees properly clean up the entire place.
Upon entering the employees will greet the customer, when the customer reached the counter
the cashier will assist and answer the inquiries of the customer, afterwards , the customer will
be given a form to be filled up with name and time-in, then the receptionist will now assist the
customer to his/her designated area.
When the customer’s chosen time slot is near to end, the receptionist will approach them and
will ask whether they are going to extend or not. If the customer decided to extend the
receptionist will update the record and filled up form of the customer. Before leaving, the
customer will be assisted by the receptionist to the reception area to pay for services rendered
and the cashier will issue a receipt.
58
Pre- Operation and Operation/Service Process Figure 4.1
Employees enter and

time-in the Start
establishment.
Set up and
Libhub Opening
The receptionist will

Greet and assist the update the record and
customer filled up form of the
customer,
Customer will fill up the Service Form

service form. Yes
The receptionist will assist The receptionist will Extend

the customer to its approach customer when time?
designated area. his/her chosen time slot is
near to end,
No
End
After the time was ended

Receipt Cashier will
the receptionist will assist
issue receipt. Customer pays for the
the customer to the
service rendered.
cashier
59
Supplies Purchasing Process
Supplies will always be monitored by the receptionist, once the supplies reached the reordering
point he/she will inform the manager. The receptionist will create purchase requisition document
that list down the required supplies as well as the quantity needed. The purchase requisition
document will then be submitted to the manager, once submitted the manager then create a
purchase order to be forwarded to the supplier/s or vendor/s. Suppliers shall deliver the goods
and shall provide the sale invoice and delivery receipt to manager. To ensure the correct
quantity of the goods the manager or if not, the receptionist will count and check each good for
possible damages or deficiencies and shall provide receiving report to the manager. The
receptionist will inform (for any deficiencies) and give the receiving report to the manager. Once
verified the manager shall process the payment. Payment voucher shall be created for every
purchase made, and payment shall be given to supplier either on cash or check after the
delivery or within the discount period. Official receipts shall be provided by the supplier after
giving the payment. Purchase and payment transactions must be properly recorder in the
company’s ledger / books. All documents (Purchase Requisition, Purchase Order, Receiving
Report, Delivery Receipt, Sales Invoice, & Official Receipt) shall be compiled into one document
and shall be stored properly.
60
Figure 4.2 Supplies Purchasing Process
Start
Supplies checked
Receptionist prepares
Purchase
Requisition Requisition Form
No End
Approved by
Manager Manager prepares
check for payment
to supplier.
Yes
Selection of
Purchase
Supplier and
Order
Prepare Purchase
Order Match
Receiving Yes
Purchase Order
Report and goods
Send Purchase received? No
Order to Supplier
Supplier Receptionist receive

delivers the and
goods. Inspect goods
Inform
supplier
about
discrepancy
Debit Memo
61
Table 4.1 Operating and Employees Schedule
Day Shift Night Shift
Time Study Hub Cashier Receptionist Receptionist Manager Cashier Receptionist Receptionist Support
Schedule Shift
11:30 am Pre-opening
-12: 00 nn
12:00 nn Break
-1:00 pm
1:00 pm - Break Break
2:00 pm
3:00 pm - Break Break
4:00 pm
4:00 pm -
On Call
9:00 pm
9:00 pm -
10:00 pm Break
Operating
10:00 pm- Hours
12:00 am
12:00 am- Break Break
1:00 am
2:00 am- Break
3:00 am
3:00 am-
4:00 am Break
4:00 am-
5:00 am
62
5:00 am-
6:00 am
Operating hours is based on the result of the survey on the question “ What time would you prefer us
to operate?” majority answer of 41% says that they prefer the business to operate from 12:00 nn - 6:00
am.
Business Location
The business will be established at Mega One Building, Along Espana near Rotanda, Sta, Teresita,
Quezon City, 1008 Metro, Manila. It is near within University Belt where there is a high concentration of
colleges and universities in the city thus would make it accessible for our target market.
Figure 4.3
Façade of the Building
63
Figure 3.4
Figure 4.4
33ffdfsdsf
Vicinity Map
Floor Plan of the Building
Figure 4.5
64
Figure 4.6
Figure 4.7
65
Figure 4.8
Figure 4.9
66
Figure 4.10
Figure 4.11
67
Figure 4.12
RECEPTION AREA
Figure 4.13
STUDY HALL 68
MEZZANINE VIEW
Figure 4.14
Figure 4.16
MEZZANINE VIEW
69
CONFERENCE ROOM
GROUP STUDY
FigureFigure
4.15 4.18
Figure 3.15
AMPHITHEATER Figure 4.20
Table 4.2
Establishment Capacity Description
AREA CAPACITY
Study Hall, Individual 25
Amphitheater 20
Group Study 35
Property, Plant and Equipment
Group Table 35
Table 4.3
Machinery and Equipment Conference Room 20
TOTAL 130
Unit Total Cost net 70 Total Annual
Required Unit Cost Total Cost (in Input VAT of VAT Estimated Depreciation
Name Image
(per (in peso) pesos) (in pesos) (in pesos) useful life (in pesos)
piece)
Samsung Air-con Split-
type
Admin Chair
Model: 7 2 1,500.00 3,000.00 321.43 2,678.57 382.65
Table 4.4
AR09TYHYEWKNTC
4 26,998.00 107,992.00 11,570.57 96,421.43 15 6,428.10
Office Equipment
Cooling capacity: 1HP
Foldable
Table
4 Indoor/Outdoor
CCTV Camera
Size:Kit5
Package
60x40x28c 1 7,075.00 7,075.00 758.04 6,316.964 5 1,263.39
m 5 20 199.00 3,980.00 426.43 3,553.57 710.71
SKU: 4IOHkit5
Bowl: outer
Dell Vostro
dia.
3470
Epson EcoTank
29.5cm /
L3110 All-in-One Ink
inner dia.
Tank Printer 23,875.0 47,750.0 5,116.0 42,633.9
8cm 2 5 8,526.79
Desktop Intel 1 0 7,500.00
0 15,000.00
7 3
1,607.14 13,392.86 5 6,696.43
Core i3 8th
Gen Ubuntu
Printer Type: Print,
Linux 16.04
Wooden
Scan, Copy
Table 18,750.0
7 7 3,000.00
55,250.0 21,000.00
5,919.6 49,330.3 2,250.00 2,678.57
TOTAL 0
9,886.08
(Group) 0 4 6
TOTAL 135,260.75 14,492.22 120,768.53 14,748.12
Wooden
Table
(Individual) 100,000.0 10,714.2 89,285.7

7 25 4,000.00 12,755.10
0 9 1
37-3/8”W
Tablex 4.5
30”D Furniture
x 47- and Fixtures
7/8”H
Total Cost
Unit Total Annual
Estimated Unit Cost Total Cost (in Input VAT 23,258.9
Sofa
Book
Nameseat
Shelf Image 7 10
Required 2,605.00 26,050.00 2,791.07 net of VAT 3,322.70
Depreciation
useful3life 60 (in 90.00
peso) 5,400.00
pesos) (in578.57
pesos) 4,821.43
3 964.29
cushion (per piece) (in pesos)
(in pesos)
189,830.0 20,338.9 169,491.0

TOTAL 24,691.58
0 3 7
27,142.8
Chair 7 80 380.00 30,400.00 3,257.14 3,877.55
6
71
Table 4.6
Office Supplies
Total Input Total Cost

Unit
Unit Cost VAT net of VAT
Name Image Cost
Required (in (in
(in peso) (in pesos)
pesos) pesos)
Panda Black
Ballpen 1 120.00 120.00 12.86 107.14
(25pcs/box)
Official Receipt
(6 x 4 inches,
10 pads - 50
sets per pad,
duplicate on 10 450.00 4,500.00 482.14 4,017.86
carbonized
paper.)
Time Card
(100pcs per 1 80.00 80.00 8.57 71.43

pack)
Staple wire 2 35.00 70.00 7.50 62.50
TOTAL 4,770.00 511.07 4,258.93
Table 4.7
72
Office tools

Unit
Name Image Cost
Required (in (in
pesos) pesos)
Cash box 2 585.00 1,170.00 125.38 1,044.64
Casio MX12-B
ISBN
291028914000 2 285.00 570.00 61.07 508.93
8
Dual power
Stapler 2 492.00 984.00 105.43 878.57
Scissors 3 15.00 45.00 4.82 40.18
Mop
2 290.00 580.00 62.14 517.86
Dustpan 2 70.00 140.00 15.00 125.00
73
Broom
2 150.00 300.00 32.14 267.86
Trash bin 6 185.00 1,110.00 108.93 991.07
TOTAL 4,899.00 524.89 4,374.11
Table 4.8
Storage tools
Unit
Name Image Cost
Required (in (in
pesos) pesos)
4-tier kitchen
storage shelf
rack 1 1,000.00 1,000.00 107.14 892.86
(45 x 25 x
90cm)
Spoon storage 2 150.00 300.00 32.14 267.86
Storage Jar
500ml
3 230.00 690.00 73.93 616.07
Size:
8.9x11x5cm
TOTAL 1,380.00 1,990.00 213.21 1,776.79
Table 4.9
Operating Tools
74
Unit
Name Image Cost
Required (in (in
pesos) pesos)
Books and
100 500.00 50,000.00 5,357.14 44,642.86
reviewer
Drinking glass
5 box 120.00 600.00 64.29 535.71
(6pcs per box)
Coffee mug
2 box 1,200.00 2,400.00 257.14 2142.86
(36pcs per box)
Spoon
(12pcs per 6 packs 30.00 180.00 19.26 160.72

pack)
Cyclone Fire
Extinguisher
(5lbs)
2 1,000.00 2,000.00 214.29 1,785.71

Dry chemical
A.B.C. powder
type
First Aid Kit 1 kit 350.00 350.00 37.50 312.50
1 handpress
light
1 emergency
blanket
5 gauze swab
75
6 alcohol pads
20 band aid
Scissors
Medical tape
2 gauzes
Biogesic
Total
55,530.00 5,949.64 49,580.36
Table 4.10
Operating Supplies

Unit
Name Image Cost
Required (in (in
pesos) pesos)
15kg for
coffee
Kapeng barako grounds
(1kg is good for 455.00 9,100.00 975 8,125.00

at least 148
cups) 5kg of
coffee
beans
Brown sugar 30kg 45.00 1,350.00 144.64 1,205.36
76
Coffee creamer
45 packs 81.00 3,645.00 390.54 3,254.46
500grams
Mineral water
100pcs 35.00 3,500.00 375.00 3,125.00
(5 gallons)
Ice tube (10kg

200kg 150.00 30,000.00 3,214.29 26,785.71
per pack)
Dishwashing
1pc/gallon 200.00 200.00 21.43 178.57
soap
Scotch brite 2pcs 36.00 72.00 7.71 64.29
Trash bags
(100pcs per 2 300.00 600.00 64.29 535.71

roll)
Kitchen towel
Size: 4 12.00 48.00 5.14 42.86

27.5x25cm
20 box of
8.15 by 11 725.00
Inches
Bond Paper
10 box of
795.00 26,950.00 2,887.50 24,062.50
5reams/box 8.15 by 14
500sheets/rea inches
m
6 box of 750.00
A4 size
Epson T003 Ink 4 black ink 265.00 2,650.00 283.93 2,366.07

bottles
77
2 colored
ink bottle
each
TOTAL Cost
(Monthly) 78,115.00 8,369.46 69,745.54
TOTAL Cost 100,433.5

(Yearly) 937,380.00 7 836,946.43
TOTAL Cost
(Year1 ) with
Capacity
Usage of 60% 562,428.00 60,260.14 502,167.86
Table 4.11
Total Project Cost
LIBHUB LTD.
Total Project Cost
Current Assets Amount
Operating Supplies 502,167.86
Operating Tools 49,580.36
Office Supplies 51,107.14
Office Tools 4,374.11
Storage Tools 1,776.79
Input VAT 113,831.54
Total Current Assets 722,837.80
Non-Current Assets
Leasehold Improvements 2,880,000
Office Equipment 49,330.36
Furniture and Fixtures 169,491.07
Pre-Operating Expenses
Licenses & Legal Fees 26,960.00
Hiring expense
78
10,000.00
Advertising Expense 600,000.00
Rent Expense 1,170,000.00
Total Pre-Operating Expenses 1,806,960.00
Financial
Aspect
Objectives of the Study/Statement of the Problem
79
● How much is the capital investment needed in the proposed business?
● How much are the necessary expenses in operating the business?
● How long is the time required by the project to return the initial cost of investment?
● How much profit/loss will be earned in the initial year?
● To analyse the financial viability of the project.
80
General Financial Assumptions:
 All financial projections are created with the assumption that the environmental
factors are in normal condition. Thus, the proponents did not consider Pandemic as a
factor to this study.
 The business will be classified as limited partnership in which each partner will invest
PHP 2,000,000 with a total initial investment of PHP 10,000,000.
 The financial calendar of the business will start on January 1, 2021.
 The projections are made for 5 years from 2021 to 2025.
 Accrual basis of accounting shall be the basis of preparation of all financial records and
statements.
 All capital and other operating expenses are financed by the Partners' Contribution.
 The business is assumed to operate on 60% of its capacity on its first year of
operation and will increase 5% every year thereafter.
 All the suppliers ( supplies, equipment and tools) are VAT registered.
Cash
 Cash is stated at face amount. Cash includes Cash in Bank, Petty Cash Fund and Change
Fund/ Cash on Hand.
 Cash on Hand shall be maintained at ₱50,000 per year which is composed of ₱30,000
petty cash fund and ₱20,000 change fund.
 Imprest system will be implemented with PHP 30,000 maintaining balance for Petty cash
fund and PHP 20,000 for Change fund.
81
 Petty Cash Fund is established at ₱30,000 under the imprest fund system and will be used
to fund emergency situations and unprecedented events during the operating year.
 Change Fund of ₱20,000 will be established to be used exclusively for change.
Supplies
 Consumption of operating supplies will be based on operating capacity usage.
 In case that 100% of the supplies are exhausted before the year end, replenishment will
be taken from the Petty Cash Fund.
Property, Plant and Equipment
 Office equipment shall be carried at cost less accumulated depreciation and impairment
under the Cost Model in accordance with PAS 16.
 Straight Line Depreciation Method shall be used in computing for the depreciation and
amortization expense every year.
 It shall be disposed when fully depreciated and gain or loss on disposal shall be included in
profit or loss.
Expenses and Other Costs
 Utilities expense shall be paid as it becomes due. It includes electricity, water, telephone, and
internet, are projected to increase 2% annually in price rates and usage.
 The business will enter into 5 year lease contract, in which rate is Php 500 per sqm with an
area of 192 sqm. The agreement provided that the business will pay 3 month Security Deposit
which is equivalent to PHP 292,500 and prepaid rent of PHP 1,170,000 annually.
 Salaries shall be paid to all employees every 15 th and last day of the month.
82
 The Outsourced Accountant will receive a PHP 5,000 monthly Professional Fee with a 5%
increase annually.
 Low employee turnover will be assumed by the business. Hiring will be held once a year
with allocated cost of PHP 10,000.
 The business will allocate PHP 50,000 monthly for advertising expense with a total of PHP
600,000 per year.
 The Leasehold improvements will be classified as a “Class C” renovation that will cost PHP
15,000 per sqm with a total of PHP 2,880,000. The renovation includes materials such as
doors, lights, etc.; that will be amortized for five (5) years, with amortization amount of PHP
576,000 that will be accumulated annually.
INVESTMENT OF THE OWNERS
 LibHub is a limited partnership composing of five (5) Capitalist Partners and one (1) of them is an
Industrial Partner who will be managing the business and will be compensated through salary
compensation.
 Furthermore, Libhub is composed of (3) three general partners and (2) two limited partners.
Limited partnership allows limited partners to limit their own liability for business debts according to
their portion of ownership or investment. Partners shared resources provides more capital for the
business and each partner shares the total profits of the company, equally.
 Each partner will contribute PHP 2,000,000, having a total of PHP 10,000,000 contribution for
the business.
 Each partner is assumed to withdraw 50% of their total equity annually considering that the
yearly operations resulted to gain.
83
FORM OF FINANCING
LibHub, as a limited partnership, will be funded by the investments of the partners. This will serve as the
startup capital for the business’ pre-operating expenses. The partners stipulated equally in ratio as
contribution.
84
Table 5.1
Pre-operation Statement of Financial Position
LIBHUB LTD.
Pre- Operating Statement of Financial Position

ASSETS
CURRENT ASSETS Note
Cash and Cash Equivalents 1 3,958,112.25
Operating Supplies 2 502,167.86
Office Supplies 4 51,107.14
Prepaid Expense 5 1,806,960.00
Operating Tools 3 49,580.36
Office Tools 6 4,374.11
Storage Tools 7 1,776.79
Input VAT 8 113,831.54
Total Current Assets 6,487,910.04
NONCURRENT ASSETS
Leasehold Improvements 12 2,880,000
Machinery and Equipment 9 120,768.53
Office Equipment 10 49,330.36
Furniture and Fixtures 11 169,491.07

TOTAL ASSETS 10,000,000.00

LIABILITIES

CURRENT LIABILITIES
Total Current Liabilities 0.00
NONCURRENT LIABILITIES
Total Non-Current Liabilities 0.00
TOTAL LIABILITIES 0.00
PARTNERS’ EQUITY
Madrio, Capital SCE 2,000,000.00
Mendoza, Capital SCE 2,000,000.00
Salayo, Capital SCE 2,000,000.00
Soliman, Capital SCE 2,000,000.00
Suba, Capital SCE 2,000,000.00
TOTAL PARTNERS’ EQUITY 10,000,000.00

TOTAL LIABILITIES AND PARTNERS' EQUITY
10,000,000.00
85
Table 5.2
Projected Statement of Financial Position
LIBHUB LTD
Projected Statement of Financial Statement

As the end of Notes 2021 2022 2023 2024 2025
ASSETS
Current Assets
Cash and Cash Equivalent 1 9,625,406.93 11,167,295.68 12,981,308.06 14,921,937.35 16,922,399.60
Prepaid Expense 5 1,806,960.00 1,806,960.00 1,806,960.00 1,806,960.00 1,806,960.00
Total Current Assets 11,432,366.93 12,974,255.68 14,788,268.06 16,728,897.35 18,729,359.60
Noncurrent Assets
Machinery and Equipment 9 120,769 120,769 120,769 120,769 120,769
Less: Accumulated depreciation - Machinery and Equipment 9 10,730 21,460 32,191 42,921 53,651
Office Equipment 10 49,330 49,330 49,330 49,330 49,330
Less: Accumulated depreciation - Office Equipment 10 9,866 19,732 29,598 39,464 49,330
Furniture and Fixtures 11 169,491 169,491 169,491 169,491 169,491
Less: Accumulated depreciation - Furniture and Fixtures 11 24,692 49,383 74,075 98,766 123,458
Leasehold Improvements 12 2,880,000.00 2,880,000.00 2,880,000.00 2,880,000.00 2,880,000.00
Less: Accumulated Amortization 12 576,000.00 1,152,000.00 1,728,000.00 2,304,000.00 2,880,000.00
Other Asset (Security Deposit) 292,500.00 292,500.00 292,500.00 292,500.00 292,500.00
Total Non-current Assets 2,890,802.06 2,269,514.17 1,648,226.28 1,026,938.39 405,650.50
TOTAL ASSETS 14,323,168.99 15,243,769.86 16,436,494.34 17,755,835.74 19,135,010.10
LIABILITIES
Current Liabilities
Utilities Payable 18 49,000.00 50,979.60 53,039.18 55,181.96 57,411.31
Income Tax Payable IS 4,280,385.69 4,705,799.36 5,141,519.87 5,575,239.75 6,006,873.13
Total Current Liabilities 4,329,385.69 4,756,778.96 5,194,559.04 5,630,421.71 6,064,284.44
Non- Current Liabilities 0.00 0.00 0.00 0.00 0.00
Total Non-Current Liabilities 0.00 0.00 0.00 0.00
TOTAL LIABILITIES 4,329,385.69 4,756,778.96 5,194,559.04 5,630,421.71 6,064,284.44
PARNERS' EQUITY
Madrio, Capital ( See Changes in Partners' Equity) SCE 1,998,756.66 2,097,398.18 2,248,387.06 2,425,082.81 2,614,145.13
Mendoza, Capital SCE 1,998,756.66 2,097,398.18 2,248,387.06 2,425,082.81 2,614,145.13
Salayo, Capital SCE 1,998,756.66 2,097,398.18 2,248,387.06 2,425,082.81 2,614,145.13
Soliman, Capital SCE 1,998,756.66 2,097,398.18 2,248,387.06 2,425,082.81 2,614,145.13
Suba, Capital SCE 1,998,756.66 2,097,398.18 2,248,387.06 2,425,082.81 2,614,145.13
TOTAL PARTNERS' EQUITY 9,993,783.30 10,486,990.90 11,241,935.30 12,125,414.03 13,070,725.66

TOTAL LIABILITIES AND EQUITY 14,323,168.99 15,243,769.86 16,436,494.34 17,755,835.74
86
19,135,010.10
Table 5.3
Pre-operation Statement of Cash Flow
LIBHUB LTD
Pre-operating Statement of Cash Flow

Cash Flows from Operating Activities
Cash Inflows -
Gross Profit -
Other Receipts -
Total Cash Inflows 0.00
Cash outflows
Cash paid for prepaid rent 1,170,000.00
Cash paid for purchase of office supplies 51,107.14
Cash paid for purchase of operating supplies 502,167.86
Cash paid for purchase of operating tools 49,580.36
Cash paid for purchase of office tools 4,374.11
Cash paid for purchase of storage tools 1,776.79
Cash Paid for Input Vat 113,831.54
Cash paid for license and fees 26,960.00
Cash paid hiring expense 10,000.00
Cash paid for advertising expense 600,000.00
Total Cash Outflows 2,529,797.80
Net Cash from Operating Activities -2,529,797.80

Cash Flows from Investing Activities
Cash Inflows
Initial Investment 10,000,000.00
Sale of Property, Plant and Equipment -
Total Cash Inflows 10,000,000.00
Cash outflows
Acquisition of Office Equipment 49,330.36
Acquisition of machinery and equipment 120,768.53
Acquisition of furniture and fixture 169,491.07
Cash paid for Lease Improvement 2,880,000.00
Cash paid for security rent deposit 292,500.00
Total Cash Outflows 3,512,089.96
Net Cash Flows from Investing Activities 6,487,910.04

Cash Flows from Financing Activities
Cash Inflows -
Loan -
Total Cash Inflows 0
Cash Outflows
Payment of Accrued Income Tax -
Withdrawal -
Total Cash Outflows 0
Net Cash from Financing Activities
Net Increase/(Decrease in Cash & Cash Equivalents 3,958,112.25
Add: Cash at the Beginning of the Year 0
Cash Balance at the End of the Year 3,958,112.25
87
Table 5.4
Comparative Statement of Cash Flow

LIBHUB LTD.
Comparative Statement of Cash Flow

For the year ended 2021 2022 2023 2024 2025
Cash Flows From Operating Activities
Net Income 9,987,566.61 10,980,198.50 11,996,879.69 13,008,892.76 14,016,037.30
Add: Depreciation Expense 621,287.89 621,287.89 621,287.89 621,287.89 621,287.89
Add/(Deduct ):
(Increase)/Decrease in Office Supplies 51,107.14 0.00 0.00 0.00 0.00
(Increase)/Decrease in Operating Supplies 502,167.86 0.00 0.00 0.00 0.00
(Increase)/Decrease in Operating Tools 49,580.36
( Increase)/ Decrease in Office Tools 4,374.11 0.00 0.00 0.00 0.00
( Increase)/ Decrease in Storage Room 1,776.79 0.00 0.00 0.00 0.00
(Increase)/Decrease in Input Vat 113,831.54 0.00 0.00 0.00 0.00
(Increase)/Decrease in Prepaid expense s 0.00 0.00 0.00 0.00 0.00
Increase/(Decrease in Utilities Payable 49,000.00 1,979.60 2,059.58 2,142.78 2,229.35
Increase/(Decrease) in Income Tax Payable 4,280,385.69 425,413.67 435,720.51 433,719.88 431,633.38
Net Operating Activities 15,661,077.98 12,028,879.66 13,055,947.67 14,066,043.31 15,071,187.92
Cash Flows From Investing Activities
Add/(Deduct ):
(Increase)/Decrease in Machine and Equipment - - - -
(Increase)/Decrease in Furniture and Fixtures - - - - -
(Increase)/Decrease in Leasehold Improvement - - - - -
Net Cash Flow from Investing Activities 0 0 0 0 0
Cash Flows from Financing Activities
Add/(Deduct ): - - - - -
Increase/(Decrease) in Invested Capital
Withdrawals -9,993,783.30 -10,486,990.90 -11,241,935.30 (12,125,414.03) -13,070,725.66
Net Increase/(Decrease) in Cash 5,667,294.68 1,541,888.76 1,814,012.37 1,940,629.29 2,000,462.26
Add: Cash at the Beginning of the Year 3,958,112.25 9,625,406.93 11,167,295.68 12,981,308.06 14,921,937.35
Cash Balance at the End of the Year 9,625,406.93 11,167,295.68 12,981,308.06 14,921,937.35 16,922,399.60
88
Table 5.5
Projected Profit and Loss
LIBHUB LTD
PROJECTION OF PROFIT AND LOSS

Revenues Note 2021 2022 2023 2024 2025
Service Revenue 16 19,375,271.54 20,946,224.48 22,558,162.32 24,170,341.01 25,782,767.46
Less:Other Operating Expense
Salaries and Remittances Expense 17 1,428,216.00 1,499,626.80 1,574,608.14 1,653,338.55 1,736,005.47
Professional Fees Expense 21 60,000.00 63,000.00 66,150.00 69,457.50 72,930.38
Operating Supplies Expense 2 502,167.86 554,895.48 609,531.35 666,130.68 724,750.18
Operating Tools Expense 3 49,580.36 50,571.96 51,583.40 52,615.07 53,667.37
Office Supplies Expense 4 51,107.14 52,129.29 53,171.87 54,235.31 55,320.02
Advertisement Expense 5 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
Rent Expense 5 1,170,000.00 1,170,000.00 1,170,000.00 1,170,000.00 1,170,000.00
Hiring Expense 5 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Utilities Expense 18 588000 611755.2 636470.1101 662183.5025 688935.716
License and Fees 5 26,960.00 26,960.00 26,960.00 26,960.00 26,960.00
Total Operating Expenses 4,486,031.36 4,638,938.73 4,798,474.87 4,964,920.61 5,138,569.14
Total Operating Income 14,889,240.19 16,307,285.75 17,759,687.45 19,205,420.40 20,644,198.32
Less: Interest, Depreciation, Amortization
Interest Expense 0.00 0.00 0.00 0.00 0.00
Depreciation Expense 45,287.89 45,287.89 45,287.89 45,287.89 45,287.89
Amortization Expense 576,000.00 576,000.00 576,000.00 576,000.00 576,000.00
Total Interest, Depreciation and Amortization 621,287.89 621,287.89 621,287.89 621,287.89 621,287.89
NET INCOME (LOSS) BEFORE INCOME TAX 14,267,952.30 15,685,997.85 17,138,399.56 18,584,132.51 20,022,910.43
Income Tax Expense (30%) 4,280,385.69 4,705,799.36 5,141,519.87 5,575,239.75 6,006,873.13
PROFIT (LOSS) 9,987,566.61 10,980,198.50 11,996,879.69 13,008,892.76 14,016,037.30
89
Table 5.7
Projected Statement of Partners’ Equity
LIBHUB LTD
Statement of Changes in Partners' Equity

Madrio Mendoza Salayo Soliman Suba Net Income Totals
Statement of Changes in Equity 2021
Beginning Equity 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 10,000,000.00
Net Income after taxes 9,987,566.61
Share in Net Income 1,997,513.32 1,997,513.32 1,997,513.32 1,997,513.32 1,997,513.32 9,987,566.61
Capital Withdrawal 1,998,756.66 1,998,756.66 1,998,756.66 1,998,756.66 1,998,756.66 9,993,783.30
Ending Equity 1,998,756.66 1,998,756.66 1,998,756.66 1,998,756.66 1,998,756.66 9,993,783.30

Ending Equity 2,097,398.18 2,097,398.18 2,097,398.18 2,097,398.18 2,097,398.18 10,486,990.90

Ending Equity 2,248,387.06 2,248,387.06 2,248,387.06 2,248,387.06 2,248,387.06 11,241,935.30

Ending Equity 2,425,082.81 2,425,082.81 2,425,082.81 2,425,082.81 2,425,082.81 12,125,414.03

Ending Equity 2,614,145.13 2,614,145.13 2,614,145.13 2,614,145.13 2,614,145.13 13,070,725.66
90
Table 5.8
Note 1: Cash and Cash Equivalents
Cash and Cash Equivalent Pre-operating 2021 2022 2023 2024 2025
Cash in Bank 3,908,112.2484 9,575,406.93 11,117,295.68 12,931,308.06 14,871,937.35 16,872,399.60
Petty Cash Fund 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Change Fund 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
TOTALS 3,958,112.25 9,625,406.93 11,167,295.68 12,981,308.06 14,921,937.35 16,922,399.60
Table 5.9
Note 2: Operating Supplies
Purchasin Pre-
Operating Supplies g operating 2021 2022 2023 2024 2025
Schedule (Yearly)
Epson Ink Monthly 28,392.86 28,960.71 29,539.93 30,130.73 30,733.34 31,348.01
BondPaper (Long ) Monthly 85,178.57 86,882.14 88,619.79 90,392.18 92,200.03 94,044.03
Bond Paper (A4) Monthly 48,214.29 49,178.57 50,162.14 51,165.39 52,188.69 53,232.47
158,464.2 161,633.5 164,866.2 168,163.5 171,526.8
Bond Paper (Short) Monthly 155,357.14
9 7 4 7 4
Mineral Water Daily 37,500.00 38,250.00 39,015.00 39,795.30 40,591.21 41,403.03
327,857.1 334,414.2 341,102.5 347,924.6 354,883.1
ice tube Daily 321,428.57
4 9 7 2 2
101,439.0 103,467.7 105,537.1 107,647.8
Coffee Monthly 97,500.00 99,450.00
0 8 4 8
Brown Sugar Monthly 14,464.29 14,753.57 15,048.64 15,349.62 15,656.61 15,969.74
Coffee Creamer Monthly 39,053.57 39,834.64 40,631.34 41,443.96 42,272.84 43,118.30
Dishwashing soap Monthly 2,142.86 2,185.71 2,229.43 2,274.02 2,319.50 2,365.89
Scotch brite Monthly 771.43 786.86 802.59 818.65 835.02 851.72
Trash bags Monthly 6,428.57 6,557.14 6,688.29 6,822.05 6,958.49 7,097.66
Kitchen towel Monthly 514.29 524.57 535.06 545.76 556.68 567.81
853,685.3 870,759.0 888,174.2 905,937.7 924,056.4
Total Operating Supplies 836,946.43
6 6 5 3 9
Capacity Usage Percentage 0.60 0.65 0.70 0.75 0.80 0.85
554,895.4 609,531.3 666,130.6 724,750.1 785,448.0
Total Operating Supplies Expense 502,167.86
8 5 8 8 1
Table 5.10
Note 3: Operating Tools
Purchasing
Operating Tools Pre-operating 2021 2022 2023 2024 2025
Schedule
Books and reviewer Annually 44,642.86 45,535.71 46,446.43 47,375.36 48,322.86 49,289.32
Drinking glass Annually 535.71 546.43 557.36 568.50 579.87 591.47
Coffee mug Annually 2,142.86 2,185.71 2,229.43 2,274.02 2,319.50 2,365.89
Spoon Annually 160.71 163.93 167.21 170.55 173.96 177.44
Cyclone Fire Extinguisher (5lbs) Annually 1,785.71 1,821.43 1,857.86 1,895.01 1,932.91 1,971.57
First Aid Kit Annually 312.50 318.75 325.13 331.63 338.26 345.03
Total Operating Tools 49,580.36 50,571.96 51,583.40 52,615.07 53,667.37 54,740.72 96
Table 5.11
Note 4: Office Supplies
Purchasin
Pre-
Office Supplies g 2021 2022 2023 2024 2025
operating
Schedule
Ballpen Monthly 1,285.71 1,311.43 1,337.66 1,364.41 1,391.70 1,419.53
49,178.5 50,162.1 51,165.3 52,188.6 53,232.4
Official Receipt Monthly 48,214.29
7 4 9 9 7
Time Card Monthly 857.14 874.29 891.77 909.61 927.80 946.35
Staple Wire Monthly 750.00 765.00 780.30 795.91 811.82 828.06
Total Office 52,129.2 53,171.8 54,235.3 55,320.0 56,426.4
51,107.14
Supplies 9 7 1 2 2
Table 5.12
Note 5: Prepaid
TableExpense
5.12
Note 5: Prepaid Expense
Pre-
Prepaid Expense 2021 2022 2023 2024 2025
operating
1,170,000.0 1,170,000.0 1,170,000.0 1,170,000.0 1,170,000.0 1,170,000.0
Prepaid Rent
0 0 0 0 0 0
Prepaid
600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
Advertisement
Hiring Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
License and fees 26,960.00 26,960.00 26,960.00 26,960.00 26,960.00 26,960.00
1,806,960.0 1,806,960.0 1,806,960.0 1,806,960.0 1,806,960.0 1,806,960.0
TOTALS
Table 5.13 0 0 0 0 0 0
Note 6: Office Tools
Table 5.13
Note 6: Office tools
Purchasin
Pre-
Office Tools g 2021 2022 2023 2024 2025
operating
Schedule
1,086.8 1,108.5
Cash box Annually 1,044.64 1,065.54 1,130.76 1,153.37
5 8
calculator Annually 508.93 519.11 529.49 540.08 550.88 561.90
Stapler Annually 878.57 896.14 914.07 932.35 950.99 970.01
Scissors Annually 40.18 40.98 41.80 42.64 43.49 44.36
Mop Annually 517.86 528.21 538.78 549.55 560.55 571.76
Dust pan Annually 125.00 127.50 130.05 132.65 135.30 138.01
Broom Annually 267.86 273.21 278.68 284.25 289.94 295.74
1,031.1 1,051.7
Trash Can Annually 991.07 1,010.89 1,072.77 1,094.22
1 3
Total Office 4,550.8 4,641.8
4,374.11 4,461.59 4,734.67 4,829.37
Tools 2 4
97
Table 5.14
Table 5.14
Note 7: Storage Tools
Note 7:Storage Tools
Purchasin
Pre-
Storage Tools g 2021 2022 2023 2024 2025
operating
Schedule
Shelf Annually 892.86 910.71 928.93 947.51 966.46 985.79
Spoon Storage Annually 267.86 273.22 278.68 284.26 289.94 295.74
Storade Jar Annually 616.07 628.39 640.96 653.78 666.85 680.19
1,848.5 1,885.5
Total Storage Tools 1,776.79 1,812.32 1,923.25 1,961.72
7 4
Table 5.15
Note 8:Input Vat
Pre-
Input VAT 2021 2022 2023 2024 2025
operating
Office Supplies 6,132.86 6,255.51 6,380.62 6,508.24 6,638.40 6,771.17
66,587.4 73,143.7 79,935.6
Operating Supplies 60,260.14 86,970.02 94,253.76
6 6 8
Operating Tools 5,949.64 6,068.64 6,190.01 6,313.81 6,440.08 6,568.89
Office Tools 524.89 535.39 546.10 557.02 568.16 579.52
Storage Tools 213.21 217.48 221.83 226.26 230.79 235.41
Machinery and
14,492.22 0.00 0.00 0.00 0.00 0.00
Equipment
Office Equipment 5,919.64 0.00 0.00 0.00 0.00 0.00
Furniture and Fixtures 20,338.93 0.00 0.00 0.00 0.00 0.00
79,664.4 86,482.3 93,541.0 100,847.4 108,408.7
TOTAL Input VAT 113,831.54
8 2 1 6 5
Table 5.15
Note 9:Machinery and Equipment
Pre-
Machinery and Equipment 2021 2022 2023 2024 2025
operating
120,768.5 120,768.5 120,768.5 120,768.5 120,768.5
3 3 3 3 3
Less: Accumulated depreciation - Machinery
0.00 10,730.24 21,460.48 32,190.71 42,920.95 53,651.19
and Equipment
Carrying Amount: Machinery and 110,038.2

120,768.53 99,308.05 88,577.81 77,847.57 67,117.34
Equipment 9
Table 5.17
Note 10:Office Equipment
Pre-
Office Equipment 2021 2022 2023 2024 2025
operating
49,330.3 49,330.3 49,330.3
Office Equipment 49,330.36 49,330.36 49,330.36
6 6 6
Less: Accumulated depreciation - Office 19,732.1 39,464.2 49,330.3 98
0.00 9,866.07 29,598.21
Equipment 4 9 6
29,598.2
Carrying Amount: Office Equiptment 49,330.36 39,464.29 19,732.14 9,866.07 0.00
1
Table 5.18
Note 12: Leasehold Improvements
Leasehold Improvements Pre-operating 2021 2022 2023 2024 2025

2,880,000.0 2,880,000.0 2,880,000.0 2,880,000.0 2,880,000.0
Leasehold Improvements 2,880,000.00
0 0 0 0 0
1,152,000.0 1,728,000.0 2,304,000.0 2,880,000.0
Less: Accumulated Amortization 0.00 576,000.00
0 0 0 0
Carrying Amount: Leasehold 2,304,000.0 1,728,000.0 1,152,000.0
2,880,000.00 576,000.00 0.00
Improvement 0 0 0
Table 5.19
Note 13:Gross Receipts
Table 5.19
Note 13: Gross Receipts
GROSS RECEIPTS 16 Hrs. 20 Days 12 Months 60.00% 65.00% 70.00% 75.00% 80.00%
Daily Monthly Annual
Hourly
Type of Service Gross Gross Gross 2021 2022 2023 2024 2025
Rate
Receipts Receipts Receipts
12,672,000.0 13,728,000.0 14,784,000.0 15,840,000.0 16,896,000.0
Individual 50.00 88,000.00 1,760,000.00 21,120,000.00
0 0 0 0 0
Conference Room (Max. of 2,000.0 10,752,000.0 11,520,000.0 12,288,000.0
64,000.00 1,280,000.00 15,360,000.00 9,216,000.00 9,984,000.00
10 persons per room) 0 0 0 0
152,000.0 3,040,000.0 36,480,000.0 21,888,000.0 23,712,000.0 25,536,000.0 27,360,000.0 29,184,000.0
TOTAL GROSS RECEIPTS
Table 5.20 0 0 0 0 0 0 0 0
Note 14:Output VAT
Table 5.20
Note 14: Output Vat
Output VAT 2021 2022 2023 2024 2025

21,888,000.0 25,536,000.0 27,360,000.0 29,184,000.0
Gross Receipts 23,712,000.00
0 0 0 0
Output VAT rate 12% 12% 12% 12% 12%
Table 5.21 Total Output VAT 2,626,560.00 2,845,440.00 3,064,320.00 3,283,200.00 3,502,080.00
Note 15:VAT Payable
Table 5.21
Note 15: VAT Payable
VAT Payable 2021 2022 2023 2024 2025

3,064,320.0 3,283,200.0
Output VAT 2,626,560.00 2,845,440.00 0 0 3,502,080.00
Table 5.22 Less: Input VAT 113,831.54 79,664.48 86,482.32 93,541.01 100,847.46
Note 16: Service Revenue 2,977,837.6 3,189,658.9
Total VAT Payable 2,512,728.46 2,765,775.52 8 9 3,401,232.54
Table 5.22
Note 16: Service Revenue
Service Revenue 2021 2022 2023 2024 2025

21,888,000.0 25,536,000.0 27,360,000.0 29,184,000.0
Gross Receipts 23,712,000.00
0 0 0 0
Less: VAT Payable 2,512,728.46 2,765,775.52 2,977,837.68 3,189,658.99 3,401,232.54
19,375,271.5 22,558,162.3 24,170,341.0 25,782,767.4
Service Revenue 20,946,224.48
4 2 1 6 99
Table 5.23
Table
Note 17: Salaries and 5.23
Remittances
Note 17: Salaries and Remittances
Salaries and
Annual 2021 2022 2023 2024 2025
Remittances
1,355,053.5 1,422,806.1 1,568,643.8
Salaries 1,290,527.16 1,290,527.16 1,493,946.50
2 9 3
SSS 109,200.00 109,200.00 114,660.00 120,393.00 126,412.65 132,733.28
PHIL 18,888.84 18,888.84 19,833.28 20,824.95 21,866.19 22,959.50
HDMF 9,600.00 9,600.00 10,080.00 10,584.00 11,113.20 11,668.86
1,499,626.8 1,574,608.1 1,736,005.4
Total 1,428,216.00 1,428,216.00 1,653,338.55
Table 5.24 0 4 7
Note 18: Utilities Expense
Table 5.24
Note 18: Utilities Expense
Utilities Expense Yearly 2021 2022 2023 2024 2025
454621.507
Electricity 420000 420000 436968 472988.2161 492096.94
2
70299.5628
Water 60000 60000 62424 64945.9296 67569.74516
6
Telephone and 116902.673 126539.213
108000 108000 112363.2 121625.5413
internet 3 1
636470.110
Total 588000 588000 611755.2 662183.5025 688935.716
2021 2022 2023 2024 2025

Utilities Expense (Monthl (Monthl (Monthl (Monthl (Monthl
y) y) y) y) y)
37885. 39415. 41008.
Electricity 35000 36414
13 68 08
5412.1 5630.8 5858.2
Water 5000 5202
61 12 97
Table 5.25 Telephone and 9741.8 10135. 10544.
9000 9363.6
Note 19: Advertising Expense internet 89 46 93
50979. 53039. 55181. 57411.
Total 49000
Table 5.25
Note 19: Advertising Expense
Advertising Expense Yearly 2021 2022 2023 2024 2025

Table 5.27 Visual Displays 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
NoteTable
21:Professional
5.26 Fees
Social media-related
Note 20:Depreciation Expense 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
promotions
Loyalty Card and
420,000.00 420,000.00 420,000.00 420,000.00 420,000.00 420,000.00
Discount Redemption
Total 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
100
Table 5.26
Note 20:Depreciation Expense
Depreciation Expense Notes 2022 2023 2024 2025

Machinery and Equipment 9 10,730.24 10,730.24 10,730.24 10,730.24
Office Equipment 10 9,866.07 9,866.07 9,866.07 9,866.07
Furnitures and Fixtures 11 24,691.58 24,691.58 24,691.58 24,691.58
Total 45,287.89 45,287.89 45,287.89 45,287.89
Table 5.27
Note 21:Professional Fees
Professional Fees 2021 2022 2023 2024 2025

Outsource Accountant
60,000.00 63,000.00 66,150.00 69,457.50 72,930.38
Fee
Financial Statement Analysis

Table 6.28
Table 6.28 Financial Statement Analysis

2021 2022 2013 2024 2025
Liquidity Ratios Formulas
Current Ratio TCA/TCL (see Tables of Data) 2.64 2.73 2.85 2.97 3.09
Acid Test Ratio C&CE/CL " 2.22 2.35 2.50 2.65 2.79
Working Capital CA-CL " 7,102,981.2 8,217,476.7 9,593,709.0 11,098,475.6 12,665,075.1
4 3 1 4 6
Solvency Ratios
Debt Ratio TL/TA (see Tables of Data) 0.30 0.31 0.32 0.32 0.32
Equity Ratio TE/TA " 0.70 0.69 0.68 0.68 0.68
Debt-to-Equity Ratio TL/TE " 0.43 0.45 0.46 0.46 0.46
Activity Ratio
NS/ Ave.Assets (see Tables of Data)
Asset Turnover 1.35 2.75 2.74 2.72 2.69

Profitability Ratios
Operating Profit Margin EBIT/ NS (see Tables of Data) 0.77 0.78 0.79 0.79 0.80
Net Profit Margin Net Inc/NS " 0.52 0.52 0.53 0.54 0.54
Return on Asset Net Inc/Ave. Assets " 0.70 1.44 1.46 1.47 1.46
Return on Equity Net Inc/ Ave. Equity " 1.00 2.09 2.13 2.15 2.14
Return on Sales Net Inc/NS " 0.52 0.52 0.53 0.54 0.54 101
Tables of Data
Table 6.29
Table 6.29
Account 2021 2022 2023 2024 2025
Cash and Cash Equivalent
9,625,406.93 11,167,295.68 12,981,308.06 14,921,937.35 16,922,399.60
(C&CE)
Total Current Assets (TCA) 11,432,366.93 12,974,255.68 14,788,268.06 16,728,897.35 18,729,359.60
Total Non-current Assets 2,890,802.06 2,269,514.17 1,648,226.28 1,026,938.39 405,650.50

TOTAL ASSETS (TA) 14,323,168.99 15,243,769.86 16,436,494.34 17,755,835.74 19,135,010.10

Total Current Liabilities
4,329,385.69 4,756,778.96 5,194,559.04 5,630,421.71 6,064,284.44
(TCL)
TOTAL LIABILITIES (TL) 4,329,385.69 4,756,778.96 5,194,559.04 5,630,421.71 6,064,284.44

TOTAL EQUITY (TE) 9,993,783.30 10,486,990.90 11,241,935.30 12,125,414.03 13,070,725.66

Net Sales (Service Revenue)
19,375,271.54 20,946,224.48 22,558,162.32 24,170,341.01 25,782,767.46
(NS)
EBIT (Operating Income) 14,889,240.19 16,307,285.75 17,759,687.45 19,205,420.40 20,644,198.32
Net Income 9,987,566.61 10,980,198.50 11,996,879.69 13,008,892.76 14,016,037.30

Average Asset 14,323,168.99 7,621,884.93 8,218,247.17 8,877,917.87 9,567,505.05
Average Equity 9,993,783.30 5,243,495.45 5,620,967.65 6,062,707.01 6,535,362.83
102
Break-Even Analysis
Table 6.30 Table 6.30
BREAKEVEN ANALYSIS

2021 2022 2023 2024 2025
19,415,444.9 20,982,079.2 22,589,509.6 24,196,986.2 25,804,509.9

Revenues Service Revenue 7 6 5 4 7
Operating
Variable Costs Supplies 502,167.86 554,895.48 609,531.35 666,130.68 724,750.18

18,913,277.1 20,427,183.7 21,979,978.3 23,530,855.5 25,079,759.7

Contributed Margin 2 8 0 6 8
CM Ratio (%) 97% 97% 97% 97% 97%

Fixed Costs 4,605,151.39 4,705,331.14 4,810,231.42 4,920,077.82 5,035,106.84

Fixed Cost
Ratio 90% 89% 89% 88% 87%

Breakeven
(Peso) 4,727,423.12 4,833,149.40 4,943,624.94 5,059,359.40 5,180,610.42
Breakeven (%) 24% 23% 22% 21% 20%
103
SOCIO ECONOMIC ANALYSIS
Objectives of the Study or Statement of the Problem
● What are the economic and environmental responsibilities involving the operation?
● What will be the impact of the proposed business to the economy particularly on the aspect of employment?
● What will be the impact of the proposed business to the government?
● How will the business engage in providing healthy working environment to the employees?
Description of the Industry
Education plays a crucial role in lifting millions of Filipinos from poverty and generating incomes through employment and other job opportunities.
That is the reason why students are finding ways to study effectively and efficiently.
104
Study hub is a comfortable and peaceful place where students can focus in their studies and even for workers in their tasks. It is like a library but
snacks and drinks are allowed inside. Some of the study hub has conference room that is available for those who wants to have a discussion with
their group mates.
Employment
The establishment of Libhub will create job opportunities and help improve the unemployment rate in the country. The business will also hire high
school graduate and they will receive the proper compensation and benefits. Libhub will also provide SSS, Philhealth and Pag-ibig to employees.
Taxes
Libhub ensures that it will comply and pay the taxes to the government to continue in increasing the funds to finance government activities. The
taxes that will be collected by the government will be used for the infrastructure project, public service, and other government programs. The
payment of taxes will benefit not only the citizens but as well as the economy of the country.
Health Matters
Libhub will have stocks of medicine in for some emergence due to stress and lack of sleep because some student who visit study hub does not
sleep until dawn. Libhub will also hire an employee that has knowledge in first aid.
ATTACHMENTS:
ARTICLES OF PARTNERSHIP
of
LIBHUB, LTD
KNOW ALL MEN BY THESE PRESENTS:

105
That we, the undersigned, all legal age and residents of the Republic Philippines have agreed to amend a limited partnership
under the terms and conditions herein set forth and subject to the provisions of existing laws of the Republic of the Philippines.
AND WE HEREBY CERTIFY:
ARTICLE I. That the name of partnership shall be:
LIBHUB, LTD.
ARTICLE II. That the principal office of the Partnership shall be located at Ground Floor, MegaOne Center, Along Espana near
Rotonda Sta Teresita Quezon City Metro Manila.
ARTICLE III. That the names, citizenship, residence and designation of the partners of said partnership are as follows:
Name Citizenship Residence Designation

Krizhelle Anne D. Mendoza Filipino General Partner
Trisha Ramine P. Madrio Filipino General Partner
Dharlene Jeanne A. Salayo Filipino Quezon Province General Partner
Jenine Alyssa Soliman Filipino Limited Partner
Ruth M. Suba Filipino Nueva Ecija Limited Partner
ARTICLE IV. That the term for which said partnership is 30 years from the original recording of said partnership by Securities and
Exchange Commission.
ARTICLE V. That the purpose for which said partnership is formed are as follows:
1. To provide a productive and collaborative environment for their dynamic inhabitants.
2. Designed to be a place of work—one where you are guaranteed to be productive, providing you with what you need to work your
best.
106
3. Provide a study space, with learning ambiance and free use of books and reviewing materials for aspiring professionals.
4. Promote to be a space free of distractions that gives students flexibility to be productive and achieve their academic goals.
ARTICLE VI. That the capital of this partnership shall be Ten Million Pesos, Philippine Currency contributed in cash by the partners
as follows:
Name Contribution
Krizhelle Anne D. Mendoza 2,000,000
Trisha Ramine P. Madrio 2,000,000
Dharlene Jeanne A. Salayo 2,000,000
Jenine Alyssa Soliman 2,000,000
Ruth M. Suba 2,000,000
TOTAL 10,000,000
That no transfer of interest which will reduce the ownership of Filipino citizens to less than the required percentage of capital as
provided by existing laws shall be allowed or permitted to be recorded in the proper books of partnership.
ARTICLE VII. That the profits and losses shall be divided among the partners as follows:
Name Percentage of Profit/Loss

Krizhelle Anne D. Mendoza 20%
Trisha Ramine P. Madrio 20%
Dharlene Jeanne A. Salayo 20%
Jenine Alyssa Soliman 20%
Ruth M. Suba 20%
TOTAL 100%
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ARTICLE VIII. That the firm shall be under the management of Krizhelle Anne D. Mendoza as General Partner and as such she
shall have charge of management of the affairs of the partnership.
ARTICLE IX. That the partners undertake to change the name of partnership immediately upon receipt of notice or directive from
Securities and Exchange Commission that another partnership, corporation, or person has acquired a prior right to the use of that name
or that name has been declared misleading, deceptive, confusingly similar to a registered name, or contrary to public morals, good
customs or public policy.
IN WITNESS WHEREOF, we have hereunto set our hands this 23rd day of May of 2020 at Manila, Philippines.
Krizhelle Anne D. Mendoza
xxx-xxx-xxx
TIN
Trisha Ramine P. Madrio Dharlene Jeanne A. Salayo
xxx-xxx-xxx xxx-xxx-xxx
TIN TIN
ACKNOWLEDGEMENT
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REPUBLIC OF THE PHILIPPINES
City of Quezon
BEFORE ME, a Notary Public, for and in Quezon City, Philippines this 23 rd day of May, 2018, personally came and appeared the
following persons:
Name TIN/ID/Passport No. Date and Placed Issued

Krizhelle Anne D. Mendoza xxxx xxxx
Trisha Ramine P. Madrio xxxx xxxx
Dharlene Jeanne A. Salayo xxxx xxxx
Known to me and known to are the same person who executed the foregoing Articles of Partnership constituting of 5 pages, including
this page where the acknowledgement is written, and they acknowledged to me that the same is their free and voluntary act and
deed.
WITNESS MY HAND AND SEAL on the date and place and written.
LA CONSOLACION COLLEGE
MANILA
109
Course:
If we are going to build a study hub on MegaOne Center building, Along Espana near
Are you fond of going to study hub? Rotonda, Sta Teresita, Quezon City, Metro Manila that offers:
 Yes
 Free use of books and reviewers.
 No
 Free coffee.
How often do you go on this kind of place?  Free wifi.
 Everyday  Also we will provide Photocopy and printing services.
 Thrice a month
 Thrice a week
 Twice a month Are you willing to visit us?
 Twice a week  Once a month
 Once a week  Yes
How long do stay do you usually stay in a study hub?  No

How often are you willing to visit us?
 1 hr.  4 hrs.  Everyday  Thrice a month
 7 hrs.  Thrice a week
 2 hrs.  5 hrs.  Twice a month
 3 hrs.  6 hrs.  8 hrs.  Twice a week  Once a month
Others:  Once a week
How much do you spend for an hour?
How long are you willing to stay?
 40 pesos.  80 pesos.  1 hr.  4 hrs.  7 hrs.
 50 pesos.  90 pesos.  2 hrs.  5 hrs.  8 hrs.
 60 pesos. Others:  3 hrs.  6 hrs. Others:
 70 pesos.
Are you availing conference room? How much are you willing to spend for an hour?
 Yes  50 pesos.  80 pesos.
 No  90 pesos.
 60 pesos.
 70 pesos.  Others:
If you do so, how much is the estimated amount
What time would you prefer us to operate?
you spend per room? Room with
maximum capacity of 6 persons? Room with maximum capacity of 10  12 pm – 6 am
 300 pesos/hr. persons?  11 am – 5 am
 330 pesos/hr. ❑ 500 pesos/hr.  10 am – 4am
 360 pesos/hr. ❑ 550 pesos/hr.  9 am – 3 am
 Other: Would you prefer a study hub having a conference room?
❑ 600 pesos/hr.
 Yes
Others:
Do you commute when going to a comfortable study hub?  No
 Yes If you do so, how much are you willing to spend per room?
 No Room with maximum capacity of 6 Room with maximum capacity of 10
persons? persons?
What attracts you to go to this kind of place? Rank it from 1-5, 1 is the most and  270 pesos/hr. ❑ 450 pesos/hr.
5 is the least
 300 pesos/hr. ❑ 500 pesos/hr.
Free unlimited coffee  330 pesos/hr.
Free lending of books and reviewers ❑ 550 pesos/hr.
Others:
Photocopy and printing services Others:
Free Wifi How would you like us to re
Free one serving of snacks ach you?
 Social Media
 Flyers
 Newspaper ads
 Others pls. specify.
110
111

Prof. Ryan C. Roque, CPA, MBA

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A Feasibility Study Presented To The

Faculty of the School of Business and Accountancy of

La Consolacion College Manila

Of the Requirements for the Degree of

Bachelor of Science in Accountancy

Prof. Ryan C. Roque, CPA, MBA

Madrio, Trisha Ramine P.

Mendoza, Krizhelle Anne D.

Salayo, Dharlene Jeanne A.

Soliman, Jenine Alyssa R.

June 30, 2020

color represents enthusiasm, fascination, happiness, creativity, determination, attraction,

confidence, intelligence, faith, and truth.

Brief Description of the Project:

photocopying and printing, and free coffee.

Nature/ Kind of Industry: Rental Services

Type of Organization: Limited Partnership

getting them the most out of their study experience.

every aspirant accountant.

 Promote to be a space free of distractions that gives students flexibility to be productive

and achieve their academic goals.

use of free study materials provided.

used in the long-run.

with a decent loyalty programs.

commercial signage to reach more customers.

Management and Legal Aspect

each partner shares the total profits of the company.

 Total Project Cost

2,000,000.00 with a total initial investment of 10,000,000.00.

check if the employees properly clean up the entire place.

customer to his/her designated area.

and the cashier will issue a receipt.

Contribution. Imprest system will be implemented.

● Is there a demand for the project?

● Who will be the target market?

● What are the marketing strategies used to promote the product?

● Who are the existing competitors?

University, Far Eastern University – Institute of Technology, University of Santo Tomas,

Table 2.1 Competitors

GF Torre Central, Desk: P 50/hour

district and a ride away from the university belt.

through Facebook to the students aforementioned.

Supporting computation is presented below.

improve their business.

universities of the proposed business.

Respondents according on who’s fond of going to study hub.

Respondents according on who’s fond of going to study hub.

Response Number Percentage

Yes 332 83%

Total 400 100%

17% were not.

Respondents on how often they go to study hub.

Respondents on how often they go to study hub.

Response Number Percentage

Thrice a week 39 12%

Twice a week 49 15%

Once a week 46 14%