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BUSINESS PLAN

Submitted to:

Ms. Czarinna Suzanne R. Eruela

Submitted by:

CARTIN KYLA

DE MESA MA. MARGARET

UMAYAM MARGARET GLAYSAH

WENDY ARQUIZA

IRIS CELESTE

ABM-12

FEBRUARY 2020
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TABLE OF CONTENTS
CHAPTER Page

Business Description 4
Industry Background 4

2 5
Competitors Analysis 5
Marketing Plan 5
Facebook 6
Twitter 7
Instagram 8
The Layout of the Poster 9

3 10
Operational Plan 10
Process 11
Purchasing of Raw Materials 12
Equipment 13
SSS 14
PhilHealth 15
Management and Organizational Plan16
Business Structure 16
Organization Chart 16
Responsibilities and Qualifications Personnel 1 17
Responsibilities and Qualifications Personnel 2 18

4 19
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Financial Plan19
Source of Funds 19
Projection of Statement of Financial Position 20
Projection of Statement of Comprehensive Income 21
Journal Entries 22
T-Accounts 22
Financial Statements 23
Statement of Financial Position 23
Statement of Comprehensive Income 24
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CHAPTER 1

BUSINESS DESCRIPTION

The Churros al Chocolatto is located at Divisoria beside K2C2 Enterprise that will

produce churros with crunchy texture on the outside and a soft and tender texture on the inside,

dipped into a creamful of chocolate. Aside from being delicious, it is also affordable, for only

P8.00 the customers will have a bright and churful day.

INDUSTRY BACKGROUND

Churros is a fried-dough pastry. Churros are a hot item with food service operators.

Churros are a common street-food in Spanish and Latin American cultures in the past decades. It

is currently in what’s known as the adoption stage and is considered unique in a variety of

establishments (Brian Amick).

A good example of how churros are being accepted in the market is the Churreria La

Lola. It has 14 branches nationwide serving mainly churros in both classic and relative forms.

Churreria La Lola also opened its first international branch in Singapore way back in 2018. La

Lola was an overnight hit. It soon became the most popular food stall (Cyrene de la Rosa).
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CHAPTER 2

COMPETITORS ANALYSIS

Churros City is a Zamboanga based stall that is located inside the KCC Mall de

Zamboanga. Their churros are famous for having a plate of crunchy churros with varieties of

dipping’s that is love by the Zamboanguenos.

The strength of their business is that they have a good location that is accessible to

everyone and they also have lots of varieties in terms of their dipping’s. Their weakness is that

they don’t really appeal to the people since they don’t do much advertising. Their opportunity is

that even though they don’t advertise their product and appeal to people they still have time to

improve product to attract customers. The many emerging stalls that offer high quality

beverages that is also delicious and affordable is a threat to their business.

MARKETING PLAN

The Churros al Chocolatto is a business based in Divisoria that is why the marketing

strategy will be used are the social media specifically Facebook, Twitter, Instagram and print

media, specifically poster that is sponsored by owners and the word of mouth. The posters will

be posting into different location specifically, the two posters will be posted at the side of the

southway building, the other two will be posted inside of the gateway building and the last one

will be posted at Divisoria beside K2C2 Enterprise.

Table 1. Poster

Pieces Size
5 8x13”

Facebook
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Instagram

Twitter
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The Layout of the Poster

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CHAPTER 3

OPERATIONAL PLAN

Churros al Chocolatto is located at Divisoria beside K2C2 Enterprise in Zamboanga City.

The business will acquire 2 personnel.

Table 2. Number of Personnel

Personnel Gross SSS PhilHealth PAG – Net Salary Annual

Salary IBIG Salary

1 ₱ 11, 180 ₱1, 210 ₱ 165 ₱ 224 ₱ 9, 581 ₱ 114, 972

(430 x 26)

2 ₱ 10, 400 ₱1, 155 ₱ 151.25 ₱ 208 ₱8, 886 ₱106, 632

(400 x 26)

Total Month Salary ₱18, 467

Total Annual Salary ₱221, 604

Table 2 shows the computation of the annual net salary of personnel 1 and 2. The gross salary is

based from the minimum wage of Zamboanga City but the proponents increase it to ₱430 and

₱400 respectively multiply by the normal working days of 26. To get the net salary, the gross

salary is deducted by the benefits of the personnel. The amount of the SSS and the PhilHealth

contribution was taken from the table that was provided by the government. While PAG – IBIG

contribution is 2% of the gross salary. The monthly net salary is multiplied by the total month in

a year to get the annual net salary.

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Process A: For Churros

Step 1: put ½ of the butter in the pan and melt it with the temperature of 50◦c.

Step 2: when the butter is melted, put ½ cup of water and let it boil for at least 15 seconds.

Step 3: put 4 spoons of sugar and ½ teaspoon of salt then stir.

Step 4: turn off stove and put 5 spoons of flour and 1 egg the mix.

Step 5: put another 15 spoons of flour and mix till it’s a little bit firm and sticky.

Step 6: let it cool down for at least 50 seconds.

Step 7: put it inside the icing equipment/ decorator and deep fry till its golden brown.

Process B: For Chocolate

Step 1: put 2 spoons of chocolate in a bowl (glass).

Step 2: add half a cup of evaporada a teaspoon of butter.

Step 3: put it in the microwave to melt for at least 30 seconds

Step 4: put it out of the microwave and mix it fill its creamy

Step 5: put it in a container and store in the refrigerator.

Step 6: put churros and chocolate in a round plate then serve.

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Purchasing of Raw Materials

Table 3. Raw Materials

Ingredients Quantity Brand Price Total

Butter 6 bars Magnolia ₱ 42. 75 ₱ 256. 5
Flour 5kg Unclefelix ₱ 49. 50 ₱ 247. 5
Sugar white 2 ½ kilo Refined Sugar ₱ 24. 50 ₱ 50. 00
Egg 2 dozen Organic ₱ 90. 75 ₱ 181. 5

Selenium

Enriched
Evaporada 4 cans Cowbell ₱ 21 ₱ 84
Salt 1 ₱3 ₱3
Chocolate 4 bottles Goya ₱ 105 ₱ 420
Oil 3 bottles Minola ₱ 83. 23 ₱ 249. 69
Cinnamon 1 sachet McCormick ₱ 19. 25 ₱ 19. 25
Total Monthly Expenses ₱ 1, 511. 44
Total Annual Expenses ₱ 18, 137. 28

Table 3 shows the different raw materials purchased. The followings are the ingredients used,

quantity, price and the total. The total amount of monthly expenses is ₱ 1, 511. 44 taken from the

prices of the ingredients to be purchased multiplied by the quantity. To get the total annual

expenses which amounted to ₱ 18, 137. 28, the total amount of monthly expenses is multiplied

by the number of months in a year. The total amount of the annual expenses is accurate,

assuming that the prices of the ingredients will not change.

Table 4 Equipment

Equipment Quantity Brand Price Total

Refrigerator 1 Hanabishi ₱ 5, 770 ₱ 5,770
Sauce pan 2 Dynamex ₱ 399 ₱ 798
Styro (hm1) 4 packs Grand champ ₱ 21. 75 ₱ 85
Electric stove 1 Hanabishi HIC ₱ 450 ₱ 450
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Tong 2 GPADDY ₱ 115 ₱ 230

Measuring spoons 1 pack ROYAL KING ₱ 104. 08 ₱ 104.08

Lids and cups 3 packs Styro plast ₱ 88 ₱264

Icing bags and tip 1 Nozzle ₱73 ₱73

Siomai paper 3 pack ₱21 ₱63

plate
Total monthly expenses ₱ 7,827.08

Total annual expense ₱ 93,924.96

Table 4 Shows the different equipment purchased. The followings are the equipment used, the

quality, prices and the total. The total amount of monthly expense is ₱ 7, 827.08 taken from the

prices of equipment to be multiplied by the quantity. To get the total annual expense of ₱

93,924.96 the monthly expense was multiplied by the number of months in a year. The total

amount of the annual expenses is accurate, assuming that the prices of the equipment will not

change.
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Management and Organizational Plan

Business Structure

Churros al chocalatto is a partnership business between 5 people; Kyla Shanynne Cartin,

Margaret Glaysah Umayam, Wendy Arquiza, Iris Joy Celeste and Ma. Margaret De mesa. A

business partnership is a specific kind of legal relationship formed by the agreement between two

or more individuals to carry on a business as co-owners. (Murray,2019)

Chart 1 Organization Chart

Kyla Shanynne Ma. Margaret Margaret Wendy Iris Joy

Cartin De Mesa Glaysah Arquiza Celeste

(PARTNER) (PARTNER) Umayam (PARTNER) (PARTNER)

(PARTNER)

Personnel 1 Personnel 2

(Cook & Inventory (Cashier & Server)

of stocks)
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Kyla Shanynne Cartin, Ma. Margaret De Mesa, Margaret Glaysah Umayam, Wendy

Arquiza, and Iris Joy Celeste are the owners/partners who established Churros al Chocolatto with

2 personnel. The partners are equal because they have given equal contributions/ investments in

the business.

Responsibilities and Qualification

For Personnel 1 (cook & inventory)

Qualifications

 Must be 18 years old to 40 years’ old

 Must at least have 1 – 2 years’ experience in making pastries

 Must have a good sanitary hygiene

 Must have no criminal record, and must present birth certificate and bio data

 Must be a college graduate

Responsibilities

 He/she will be in charge in marketing the pastry

 He/she will be in charge in maintaining the cleanliness of the kitchen

 He/she will be in charge in doing the inventory of supplies.

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For personnel 2 (cashier & server)

Qualifications

 Must be 18 years old up to 38 years’ old

 Must at least have 1-year experience in handling money

 Must at least know how to serve people

 Must have no criminal record, and must present birth certificate and bio data

 Must be a college graduate

Responsibilities

 He/she will be in charge of handling money

 He/she will be in charge of serving the customers

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CHAPTER 4

Financial Plan

Table 5. Source of Funds

PARTNER DISTRIBUTION
Kyla Shanynne Cartin ₱ 5,561.104
Ma. Margaret De Mesa ₱ 5,561.104
Margaret Glaysah Umayam ₱ 5,561.104
Wendy Arquiza ₱ 5,561.104
Iris Joy Celeste ₱ 5,561.104
Total ₱27,805.52

The table 5 shows that each partners contributed ₱ 5, 561. 104 in to the business from

their personal savings in total of ₱ 27,805.52 as their capital. The basis of their total funds are the

expenses of salary, raw materials and equipment purchased.

Churros al Chocolatto

Projection of Statement of Financial Position

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2020 2021
Assets
Cash ₱27, 805.52 ₱ 31, 976.348
Total assets ₱27, 805.52 ₱ 31, 976.348
Liabilities 0 0
Equity
Capital ₱27, 805.52 ₱ 31, 976.348
Total Liabilities & Equity ₱27, 805.52 ₱ 31, 976.348

There’ll be a 15% increase in cash and in capital.

There’ll be a 15% increase in capital and cash because Churros al Chocolatto would like

to have another stall at SM Mindpro, Zamboanga City.

Churros al Chocolatto

Projection of Statement of Comprehensive Income

2020 2021
Revenue ₱ 2,769 ₱ 3,184.35
Total Revenue ₱ 2,769 ₱ 3,184.35
Expenses
Cost of Goods Sold ₱ 1,412.65 ₱ 1,624.55
Total Expenses ₱ 1,412.65 ₱ 1,624.55
Net Income ₱ 1,356.35 ₱ 1,559.8
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There will be a 15% increase on revenue and expenses that will effect on the net income

of the business.

Journal Entries

Churros al Chocolatto

December 2020

Account Title Dr Cr
Cash ₱ 27, 805.52
Capital ₱ 27, 805.52
Cost of Goods Sold ₱ 1, 412.65
Cash ₱ 1, 412.65
Salaries Expense ₱ 18, 467
Cash ₱ 18, 467

T-Accounts

Dr Cash Cr Dr Cost of Goods Sold Cr

₱ 27, 805.52 ₱ 1, 412.65
₱ 18, 467 ₱ 1, 412.65
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Total ₱ 27, 805.52 ₱ 19, 879.65 Bal. ₱ 1, 412.65

Bal. ₱ 7, 925.87

Dr Capital Cr Dr Salaries Expense Cr

₱ 27, 805.52 ₱ 18, 467

Bal. ₱27, 805.52 Bal. ₱ 18, 467

Financial Statements

Churros al Chocolatto

Statement of Financial Position

December 31, 2020

Assets

Cash ₱ 7,925.87

Total Assets ₱ 7,925.87

Liabilities 0

Equity

Capital ₱ 27, 805.52

Net loss (19, 879.65)

Total equipment ₱ 7, 925.87

and liabilities
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Churros al Chocolatto

Statement of Comprehensive Income

As of February 28, 2020

Revenue ₱ 2, 796

Total Revenue ₱ 2, 796

Expenses

Cost of Goods Sold ₱ 1, 412.65

Total Expenses ₱ 1, 412.65

Net Income ₱ 1, 356.35