FUR-FECT MATCH

A Project Feasibility Study Presented to the Faculty of

School of Business Administration and Accountancy
University of Baguio

In Partial Fulfillment
Of the Requirements for the Course
Strategic Feasibility Study

Labnas, Nicole Kate

Lagare, Divine Jewel
Mamaclay, Gemmalyn
Oca, Shoumei Lynn
Osay, Clarice Faye
Prudencio, Ana Chelsea
Ribac, Andrea Mae
Yabut, Elvira
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

APPROVAL SHEET

This FINAL FEASIBILITY STUDY entitled, “FUR-FECT MATCH PET DATING SHOP”
prepared and submitted by NICOLE KATE LABNAS, DIVINE JEWEL LAGARE,
GEMMALYN MAMACLAY, SHOUMEI LYNN OCA, CLARICE FAYE OSAY, ANA
CHELSEA PRUDENCIO, ANDREA MAE RIBC, AND ELVIRA YABUT in partial
fulfillment of the requirements for the degree BACHELOR OF SCIENCE IN BUSINESS
ADMINISTRATION MAJOR IN FINANCIAL MANAGEMENT have been examined and
is recommended for acceptance and approval.

RHODA MARIE C. MANANSALA, CPA, MBA

Adviser

APPROVED by the THESIS EXAMINATION COMMITTEE

MR. JEFFREY B. ESTIMADA, DBA

Member

MR. FRANCO DEAN G. CAOILI, CPA, CMA

Member

MS. KHRISTINE CHELONEI V. ABUAN

Member

KAREEN B. LEON, CPA, CMA,PhD,DBA

Dean, School of Business Administration and Accountancy

ACKNOWLEDGEMENT

2
 The proponents of this feasibility study are very grateful to the combined efforts of all the
people who helped in making this study a success.
First and foremost, we thank God Almighty, for his guidance and the grace he bestowed
upon us throughout all our undertakings for the completion of this project.
We would like to express our gratitude to our subject instructor and adviser, Ma’am Rhoda
Marie C. Manansala, for her continuous support, patience, motivation, enthusiasm, and immense
knowledge. Without her timely wisdom and counsel, the making of our feasibility study would
have been impossible.
We would also like to thank our panelists, Mr. Jeffrey B. Estimada, Mr. Franco Dean
G. Caoili, and Ms. Khristine Chelonei V. Abuan, who have helped us in refining our study
better. Without the constructive criticisms and the excellent recommendations they have given
during our defense, we would not come up with an excellent project.
We are also highly grateful to the respondents who have willingly and actively participated
during our market survey, their participation helped us gather useful data for our study.
Finally, to our families, friends, and the University of Baguio School of Business
Administration and Accountancy, for providing us the resources, support, and encouragement we
need to continue pursuing the required activities and outputs for this project feasibility study
amidst the challenges we encountered.

TABLE OF CONTENTS
TITLE PAGE.................................................................................................................. 1
Acknowledgement.......................................................................................................... 2
Table of Contents............................................................................................................ 3

3
List of Tables and Figures.............................................................................................. 7
ASPECTS
I. PROJECT SUMMARY
Name of Enterprise................................................................................8
Location.................................................................................................9
Descriptive Definition of the Project.....................................................9
Major Assumptions and Summary of Findings.....................................11
II. MARKET STUDY
Product Description................................................................................14
Demand-Market Analysis.......................................................................15
4Ps Study (Price, Place, Promotion, Product.........................................18
Factors Affecting the Market.................................................................22
Survey Results.......................................................................................23
Analysis of Data Gathered....................................................................33
Five-Year Sales Forecast and Assumptions…......................................34
Product Pricing......................................................................................37
Canvas of Marketing Scheme................................................................38
Five-Year Schedule of Marketing Costs................................................39
III. TECHNICAL STUDY
The Service Process...............................................................................40
Operational Capacity and Schedule…...................................................42
Materials and Input................................................................................44
Five-Year Schedule of Equipment, Supplies and Materials, with
Assumptions…......................................................................................59
Floor Plan…......................................................................................... 62
Location and Vicinity Map.................................................................. 62
Office Layout....................................................................................... 64
Lease Contract/Title/Tax Declaration….............................................. 65
Enterprise’s Sample Documents and Accountable Forms…………. . 67
Breakdown of Costs/Appendices......................................................... 70
IV. SOCIO-ECONOMIC STUDY
Employment and Income.....................................................................76
Taxes....................................................................................................76
Supply of commodities........................................................................77
Demand for materials..........................................................................77
V. ORGANIZATION AND MANAGEMENT STUDY
Formulation of Goals and Objectives..................................................78
Basic Considerations...........................................................................78
Form of Ownership..............................................................................78
Organizational Chart............................................................................79
Officers and Key Personnel..................................................................79
Project Schedule...................................................................................82
VI. ENVIRONMENTAL IMPACT ANALYSIS.......................................88
VII. FINANCIAL ASPECT
Presentation of major assumption…………………………………….90

4
 Summary of Project Cost……………………………………………..92
Sources of Financing the Project……………………………………..93
Projected Financial Statements……………………………………….94
Financial Analysis……………………………………………………112
Decision Criteria……………………………………………………. .117
Sensitivity Analysis…………………………………………………..120
Analysis of ‘With or Without Project’………………………………. 122

VIII. CONCLUSION AND RECOMMENDATION………………………127

REFERENCES……………………………………………………………………….128
APPENDICES
Survey Questionnaire.....................................................................................129
Survey Results................................................................................................132
Proponents’ Curriculum Vitae........................................................................139

List of Tables and Figures

Table
1 Price
2 Pet owners
3 People who wants to have pet in the future
4 People who find it easy to look for a possible match for their pets
5 Breeding of female pets
6 Breeding of male pets

5
7 Factors that pet owners consider in choosing the partner for their pets
8 Pet owners who are willing to avail for pet dating services
9 Pet owners who are willing to spend for pet dating services
10 Pet owners who take their pets for activities
11 Taking pets for activities
12 Activities pet owners engage their pets
13 Pet owners who are willing to avail pet activities
14 Pet owners who are willing to spend for pet activity services
15 Pet owners who suffers inconvenience
16 Pet owners who are willing to avail for pet boarding services
17 Pet owners who are willing to avail for pet boarding service
18 Forecasted Sales in Units
19 Unit Prices per Services
20 Forecasted Sales in Pesos
21 Five-Year Sales Forecast
22 5 years forecast of marketing cost
23 Cost of Rent
24 5 years projection of service capacity
25 Salaries of Employees
26 Employee Benefits
27 Renovation Materials
28 Machineries
29 Equipments
30 Office Equipments
31 Furnitures
32 Activity Supplies
33 First Aid Supplies
34 Sanitary and Cleaning Supplies
35 Office Supplies
36 5-year Construction Materials Schedule of Cost
37 5-year Materials and Supplies Cost Schedule
38 5-Year Machineries, Equipment & Furnitures Cost Schedule
39 Raw Materials Estimated Monthly Cost
40 Activity Supplies Estimated Monthly Cost
41 First Aid Supplies Estimated Monthly Cost
42 Sanitary and Cleaning Supplies Estimated Monthly Cost
43 Office Supplies Estimated Monthly Cost
44 Machineries
45 Equipments
46 Office Equipments
47 Furniture and Fixtures
48 Construction Materials
49 Work Schedule
50 Number of Employees
51 Gantt Chart
52 Tasks for Gantt Chart

6
 53 Allowance for Uniform
54 Measurement Criteria
55.1 Sensitivity Analysis
55.2 Sensitivity Analysis
Figure
1 Logo
2 Flyer
3 Sales Promotion
4 Sign Board
5.1 Social Media, Facebook
5.2 Social Media, Twitter
5.3 Social Media, Instagram
6 Pet Owners
7 People who wants to have pet in the future
8 People who find it easy to look for a possible match for their pets
9 Breeding of female pets
10 Breeding of male pets
11 Factors that pet owners consider in choosing the partner for their pets
12 Pet owners who are willing to avail for pet dating services
13 Pet owners who are willing to spend for pet dating services
14 Pet owners who take their pets for activities
15 Taking pets for activities
16 Activities pet owners engage their pets
17 Pet owners who are willing to avail pet activities
18 Pet owners who are willing to spend for pet activity services
19 Pet owners who suffers inconvenience
20 Pet owners who are willing to avail for pet boarding services
21 Pet owners who are willing to avail for pet boarding service
22 5-years Sales Forecast of the 3 Classified Services
23 Pet Dating Flow
24 Pet Service Flow
25 Service Flow Chart
26 5-year Materials and Supplies Cost Schedule
27 Business Layout
28 Location and Vicinity Map
29 Office Layout
30.1 Lease Contract
30.2 Lease Contract
31 Business Permit Form
32 Office Receipt Form
33 Bill of Sales
34 Organizational Chart
34 A New Project
35 General Manager Uniform
35.1General Manager Uniform
36 Pet Expert and Veterinarian Uniform

7
37 All rounder staff Uniform
38 Name Plate
39 With or Without Project Analysis
40 With or Without Modernization Project
41 With or Without Loss Prevention Project
42 With or Without Improvement Project

8
 I. PROJECT SUMMARY
A. Name of Enterprise

● Name
Fur-fect Match
● Logo

Figure 1: Logo

Our logo consists of letters, words, shapes, and colors, everything you would normally expect with
the difference being that this is a culmination of our collective efforts that while simplistic is
packed with details that are rich in meaning and purpose.

Fur-fect Match
The name of our business is Fur-fect Match. The word ‘per’ in perfect, was changed to ‘fur’ which
simply means the hair of animals. Thus creating a new word which is Fur-fect, has the same
meaning as the word perfect. The second name is a match which means equal. If you add both it
means a perfect equal. We formulated this name intending to help provide the perfect match for
fur parents' pets.

Tag Line
‘Happy pet, happy owner’ is our tagline because the business wants to embody that the happiness
of the pet is also the happiness of the owner.

Color Blue
Blue as a background of our logo symbolizes serenity showing that in our business, customers and
pets will feel calm after they experience and relax with our services. In that case, we wanted them

9
to have peace of mind when they entered our business establishment. Moreover, pets are the main
focus of our business wherein we identify the things that are close to them, like the color blue,
which is a dominant color they can see so it shows that we are informed of their wants and are
close to their hearts.

Color Violet
Violet represents the ability to nurture and have profound peace. For pets, it is emotionally calming
too.

Color Pink
The pink color means tenderness and kindness. It is also the same as the color red which is related
to love. It shows the affections of every pet that comes to our shop. Because of this, we will give
love and kindness to every customer of our shop where they will feel it through our services. We
will take care of their pets with kindness.

Heart with Dog Paw

The heart with the paw represents the love of pets to their owners and vice versa. It also shows the
love for animals.

Human
The human figure refers to the employees. The human figure is pushing the heart with a paw. This
means that the employees are working with the utmost intention and giving their best to provide
comfort to the pets and deliver to the wants of pet owners.

Cat
The cat represents all the pets. It’s catching the falling ‘fur-fect’. It means that without pets the
business is useless. The pets are the reason why the business is here. Without them, the Fur-fect
Match will completely fall.

B. Location
Casa Vallejo Building 2, Upper Session Road, Baguio City

C. Descriptive Definition of the Project

● Related National Program
Republic Act No. 10631:
An act amending certain sections of Republic Act No. 8485, otherwise known as “The Animal
Welfare Act of 1998. As stated in Section 1. It is the purpose of this Act to protect and promote
the welfare of all terrestrial, aquatic and marine animals in the Philippines by supervising and
regulating the establishment and operations of all facilities utilized for breeding, maintaining,
keeping, treating or training of all animals either as objects of trade or as household pets. For
purposes of this Act, pet animals shall include birds.
Furthermore, Section 2 of the Act requires that certificates of registration are obtained by anyone
involved with the commercial use of animals (including in pet shops, kennels and veterinary
clinics), and such certificates will only be issued upon proof, and on condition, that the facilities
will not be used for, nor will they cause, pain and suffering to the animals. This project is, in line

10
with such an end, to provide a regulated, safe, and optimal place to facilitate both personally
intended and for commercial purpose dating and breeding of pets.

● Affinity to Regional or Sectoral Studies

According to Quinain (2018) in his Journal Freeman Cebu Lifestyle, the relationship of pets and
humans has not always been today. Pets were raised for a specific purpose up until the 18th century
when the word man’s best friend hit on the mind of human beings. Nowadays, pets are treated
differently by their owners. They have taken different functions, aside from being a family bet,
they also become a humans’ companion and bestfriends. They become the owner’s stress reliever,
a service animal, a security, and also give them a teaching responsibility to childrens. Owners treat
their pets as members of their family in return, pets give them an abundance of joy and love. But
pet owners are not the only ones who need friendships and love, pets also thus need those things
from other pets of their kind.
This project supports the concept of pets as being part of one’s family. Although, there is no
significant research that tackles pet dating shops or any business which promotes pet match
making. Most of the studies at the present time state how pets help their owners to find friendship
from different types of sources like pet dating apps, different organizations of pet owners and even
as simply as parks where owners walk their pets. If humans are looking for their perfect match,
pets also do need to find their fur-fect match for procreation of new generations of perfect fur
babies.

● Projected Potential and Proponent

The pet industry has been experiencing explosive growth in recent years. According to The
American Pet Products Association, almost 85 million households have a pet and over the last 30
years pet ownership has gone from 56% to 68% of all households. Some of the changes in pet
ownership are due to technology and the advent of online purchasing. But most of the growth is
because of changes in culture. As millennial and Generation Z consumers have come into
adulthood, they have embraced the pet-owning and pet-loving lifestyles to a far greater extent than
their elders. While baby boomers account for 32% of pets owned, households headed by younger
cohorts account for 62% of pet ownership (ppdba.com.au, 2020)
In the Philippines, the pandemic-induced “Homebody Economy” amplified pet ownership and
human-pet relationship, with more people spending time with their pets, and even consider
engaging in breeding more, for commercial purposes (Lim, 2021). However, breeding pets, such
as dogs, takes time, patience, a great willingness to learn, the ability to be humble, and sometimes
a little luck. To be considered a “successful breeder”, one is required to have years of relevant
knowledge and experience. Additionally, aside from breed anatomy, knowledge and experience
with artificial insemination techniques and other reproductive techniques, as well as experience
birthing animals may also be required (akc.org, 2021).
These findings indicate how great the potentialities are and the importance of responsible pet
breeding professionals, including the establishment of an optimal site or place for it to take place,
given how strict the law provides for when it comes to animal treatment. Fur-fect Match pet dating
shop intends to lawfully offer a healthy, safe, and guided environment for both pet owners who
wish to engage in pet dating and breeding activities and for their pets, taking advantage of the
surging trend in the pet industry. Specifically, this project aims to create a place and serve as a
platform for pet owners, with or without breeding knowledge, to meet and have their pets date and
engage in various activities, thereby allowing recreation for both pets and their owners.

11
To oversee the project , there are eight partners and they are Nicole Kate Labnas, Divine Jewel
Lagare, Gemmalyn Mamaclay, Shoumei Lynn Oca, Clarice Faye Osay, Ana Chelsea Prudencio,
Andrea Mae Ribac, and Elvira Yabut. They will take on a general partnership as it is the most
fitting type of organization considering their number. With this type of partnership, they can
combine their resources both in physical and nonphysical forms such as money, experiences, and
knowledge all the while sharing all profits and losses equally. They will also all give the same
amount of money in the capital formation.

D. Major Assumptions and Summary Findings

● Market Feasibility
Fur-fect Match strives to bring something new to the industry with its service which is a pet dating
shop. The proponents have come up with this service after a long process of deliberation. To know
the projected demand of the product, the proponents have distributed 100 questionnaires randomly.
After the results have been tallied the proponents have come to realize that 74% of the respondents
have pets and 26% are willing to have pets in the future. 90% of the respondents are willing to
avail for pet dating service, 92% for activity services, and 83% for pet boarding service. The
proponents then mentioned the possible price for the services, and when asked if they are still
willing to avail the services, 88% answered yes for pet dating, 83% on pet activities while 78% on
pet boarding.

The proponents then proceed to analyze the five year sales forecast with assumptions considering
annual average increase of pet ownership and annual growth of pet service in the Philippines. The
forecast also includes unit sales in price which is computed based on the current average inflation,
and revenue in pesos for its five year of operation.

Here, the proponents also discussed the prices of services. Target pricing method and cost-based
pricing methods were considered. In addition, the proponents also discussed marketing strategies
to promote the business and they are, social media advertisement, print media advertisement and
sales promotion.

● Technical Feasibility
Fur-fect match offers three different services namely; pet dating, pet boarding, and other available
pet activities. With the given services, these are not yet available to the target market. Hence, this
is the first-ever business inside Baguio City that offers these kinds of services. Moreover, Fur-fect
match wants to help those pet owners that are having a hard time finding a perfect match for their
fur babies. Wherein, they do not need to worry for the supplies or resources that the business
needed are already available in the market. The business prefers local products to be used in every
service to ensure its availability and accessibility, also to support local businesses, and have a
lesser cost expense compared to imported products and resources. Resources like machinery,
equipment, utilities, technology, laborers and all other items that are directly necessary for the
accumulation of services are all available in sufficient quantities and also at a reasonable cost.
Here, the procedures, resources needed, the enterprises' documents, and projection of 5 year
accumulated cost or expenses are thoroughly discussed. The efficiency and effectiveness of
resources are ensured that they will be reasonably attained.

● Organizational and Management Feasibility

12
A Fur-fect Match will be organized and managed through innovative thinking to formulate a good
quality of service offered and to promote a good relationship to everyone, especially within the
business. Also, it shows what are the goals and objectives of this business which will lead them to
achieve the desired results that want to happen in the future.
The proponents will create a structure to know what and who should be hired or qualified to work
in this business and to coordinate its various tasks. In that case, managing the entire staff and other
responsibilities will be easy to handle. Initially, the business will have a general manager, who will
be in charge of planning, directing, and organizing the business's or organization's operations.
There is a pet expert, who will be responsible for providing the daily services and care for the pets.
They will assist with all activity-related duties to ensure that pets are relaxed and enjoy all of the
services provided. Also, the all-rounders who are in charge of demonstrating the business’s
services to the target market and also managing all transactions made by the customers.
It also states the schedule of tasks which shows when the business started planning until the
processing of the business operation. In this part, it will find the responsibilities that need to be
done in order for the business to run smoothly and efficiently.

● Socio-economic Feasibility
A business always aims to profit, grow, and expand but it is also a must to look at how the business
operates. The business must observe and realize that it has responsibilities to live up to. The
business will aim to not only be profitable itself but also to all the entities involved. The business
will make sure that the responsibilities it has towards employment & income, supply of
commodities, taxes, and demand for materials is achieved. In regards to employment & income,
the business will ensure that it earns enough profit to be able to provide jobs to individuals. For
taxes, the business will pay the correct taxes and comply with all the legal duties. For supply of
commodities, the business will be able to help in the local community and environment through
providing opportunities for small businesses and controlling the consumption of basic necessities
like water. For demand for materials, the business will consider using local products for its
business operation to help the community.

● Environmental Impact Feasibility

Fur-fect Match will strictly follow the environmental policy and regulations, since it is unable to
avoid creating pollution in an area where it is allowed. The proponents are working on many ways
to comply with these policies and regulations to protect the environment. In order to prove it, the
business will be disposing of its garbage in an environmentally friendly manner, such as
segregating it properly, in accordance with the city’s legislation and policies. There are some
strategies that the business does, like in the air while the business is operating it will use an air
purifier to avoid bad odors caused by pets. Also, to the people, particularly customers and staff,
which will ensure they are safe and secured here since the business has provided everything they
need.
● Financial Feasibility
The financial aspect is used to analyze the performance of the service for 5 years with the use of
financial statements, specifically income, balance sheet, and cash flow. We also computed the
project cost. Financial analysis was made by computing the different ratios such as, liquidity ratio,
debt-service ratio, profitability ratio, operating leverage ratio and capital investment ratio.
In addition, payback period, net present value, internal rate of return, and cost-benefit analysis
were also computed.

13
These are all crucial for the operation of the business and they show whether or not the business
is profitable from the very start or after a certain period of time. It informs the proponents if the
business is worth it or not.
E. Conclusion
Fur-fect Match is a pet shop located in Baguio City that has its own twist from the matching to its
other available pet services. As a business, not only does it aim for its own growth, goal, and
objectives but also it also aims for the well-being of its customers and its employees that are a part
of it. Together with its aims for the employees and customers, the business will specifically reach
its target to profit and exam as the earnings or income is what will help the business in continuing
its operations and supporting its constituents Furthermore, the business will also fulfill not only its
financial and legal obligations, but also its responsibilities to the environment wherein Fur-fect
Match will strictly adhere and uphold environmental policy and regulations despite with its line of
business.

14
 II. MARKET STUDY

A. Product Description

● Name of the service

To come up with the most ideal name for our service, the project proponents have undergone a
series of decisive processes to achieve a desirable and attractive business name considering
prospective customers and the market. We started with listing down suggestions as per our
personal preferences and experiences, followed by process of selection considering the following
criteria: (1) The ability of the name to attract attention, (2) length and retainability, (3) relevance
to the product/service we are offering, and (4) The overall appeal of the name. The final name
selected through the process, “Fur-Fect Match Pet Dating Shop”, was unanimously determined to
have the highest marketability considering the given criteria since it is easy to remember, generally
appealing to hear, and descriptive of the services we aim to provide.

● Features of the service

The services to be provided by the establishment include a variety of activities primarily to help
both pets and their owners experience casual and fun recreation in a safe and guided manner as
they engage in pet dating. The business concept also covers other services, including pet care-
taking and boarding, to offer pet owners peace of mind should they want to do other engagements
but are afraid to leave their pets unattended.

To serve the purpose of creating the best environment for pets and their owners, the following
considerations have been determined with regards the client’s boarding experience: A dedicated
washroom space for pets will be provided to ensure the majority of pet messes are relegated to one
area when owners need to groom their dogs or give their cats space to relieve themselves.

As for the general store establishment, we are to offer an interactive pet-playground design that
encourages agility from pets, such as a course with hoops, ramps, tunnels, hurdles and the likes,
which can help pets have fun and exercise as they get to know their matches, and give the owners
an opportunity to interact with their dogs and teach them commands through activities like
scavenger hunts and fetch. Material-wise, we will be using those made from natural, sustainable
and eco-friendly sources such as bamboo, wood, sisal and hemp as these materials are kinder to
both a pet's health and the environment.

● Uses of the service

The use of our service is to provide comfort, assurance, and entertainment for pets and pet owners.
It will serve as comfort because pet owners will not have the difficulty to look for their pet's match
if they avail of our services. Also, it would not be an inconvenience if they had a necessary
appointment because they could leave their pet with us. We will assure them that we will take good
care of their fur baby. We will also provide entertainment, not just for pets but also for pet owners,
by giving activities they will surely enjoy.

With the technical use out of the way, let us discuss the other one. We are in a generation where
some people prefer to have pets rather than to have babies. Pets are known as comforting
companions; they play and show love; basically they keep us happy. They are stress relievers to
most, and with the help of mainstream media, this creates the mindset for the newer generation

15
that having pets is better than having babies. We then took this as an opportunity to swoop in with
our service and deliver on that mindset. We are implying that the services would cater for the needs
and entertainment of the pets they consider as a family. The love of their fur babies will be
reciprocated when they will avail our services. Also, they will have the chance to add more
members to their family and have more fur babies with the breed of their choice.

● Major users of the service

The major users of our product/service provided in the fur-fect match pet dating shop are pet
owners since our business focuses on bringing comfort to pets by engaging them with activities,
specifically the canine and feline race. The target market has a wide scope with no specific sector
since owners may vary. Pet parents are the major users considering that our product/service caters
to their fur babies needs, and some pet lovers ensure that their pets get to experience the best
comforts they can offer to them. The main customers who will be in need of the services are owners
who seek a mate for their beloved pets through interaction with other pets and owners who seek
temporary boarding while they are away. Seeking mates is not an ordinary task because each of
the customers has a preferred standard which they will assess with the help of the offered activities
that will exercise the pet’s activeness and behavior towards other pets. Having a pet comes along
with responsibilities that pet parents have to accomplish out of love and care and is not just taken
lightly.

● Geographical areas of dispersion

As Baguio City is the actual study location, the first Fur-Fect Match Pet Dating Shop will be
specifically placed on the fourth floor of Casa Vallejo Building 2, Upper Session Road, Baguio
City. Unlike other pet shops in Baguio City, the company will be delivering different and one-of-
a-kind services. The service that we will provide is brand new to the market. Furthermore, our
preferred location does not provide pet dating services.

Fur-Fect Match Pet Dating Shop also intends to expand in the future once it has amassed the cash
to do so. The initial target regions for development would be Baguio City's neighboring towns,
such as La Trinidad, Benguet, La Union, Pangasinan, Pampanga, Tarlac, and other parts of North
Central Luzon, as well as the whole island of Luzon. Despite the fact that there are services
available for pet care and such, there is no specific service for locating a suitable match for pets.
Our service has the potential to distinguish itself from the competition.

B. Demand and Market Analysis

Demand for the Service

The project proponents see a positive demand for the services that the business project aims to
offer. Initially, the project was inspired by the idea of the increasing breeding activities to which
pet owners personally engage. Through observations and experiences shared by the proponents
during the planning stage, it was identified that while pet breeding is increasing in demand, there
are not enough individuals who facilitate such an event and these breeders even travel to farther
places when their services are required. As such, we see that our business concept would bring
positive light to such a gap in the marketplace that is expected to continuously intensify throughout
the coming years. (See other supporting articles under ‘Projected Potential and Proponents,’ pp.
10-11.)

16
Target Market

The target market of our services is pet owners since our business focuses on bringing comfort to
pets by engaging them with activities, specifically the canine and feline race. The target market
has a wide scope with no specific sector since owners may vary. Pet parents are the target market
considering that our services cater to their fur babies' needs, and some pet lovers ensure that their
pets get to experience the best comforts they can offer to them. The main customers who will be
in need of the services are owners who seek a mate for their beloved pets through interaction with
other pets and owners who seek temporary boarding while they are away. Seeking mates is not an
ordinary task because each of the customers has a preferred standard which they will assess with
the help of the offered activities that will exercise the pet’s activeness and behavior towards other
pets. Having a pet comes along with responsibilities that pet parents have to accomplish out of
love and care and is not just taken lightly.

Size of the Initial Target Market

The size of our initial target market was determined by identifying the estimated number of
potential customers availing the services of businesses that closely relate to our offered services
(indirect competitors), multiplied by the estimated penetration rate of our proposed business as
determined through the administered market survey. According to the data extracted from the
Bureau of Animal Industry’s August 2021 report, the number of potential customers of the
identified registered indirect competitors of Fur-fect Match in Baguio City is estimated to be at
8,600 households. With respect to the conducted market survey, it was identified that 90% of the
respondents were willing to avail of the pet dating/breeding service and 85% are willing to pay for
such primary services given the price rates provided (see figure 7 and 8 below). Using such
figures, the proponents assumed a lower rate of 75% market penetration rate (considering
adjustments on operational capacity limits). The initial market size identified for the business is a
total of 6,450 households (8,600 households x 75% market penetration rate) with respect to the
primarily unique service of the project which is pet dating and breeding services.

Direct and Indirect Competition

Having a pet to take care of has become a norm among people with different reasons and
perspectives. According to some studies animals play an important role in many people’s lives and
are also valued as companions. The study deals with indirect competitors because it offers pet
matching through recreational activities and pet lodging along with pet care-taking in the market.
It is an indirect competitor because there are several implemented pet shops but there is a difference
from some of the product/service that the fur fect match pet dating shop offers. According to the
Bureau of Animal Industry (August 2021), there are 350 total number of registered veterinary
clinics, pet grooming or pet shops in the Philippines. There are already numerous pet shops that
have been established but there is still no shop that caters to the needs of pet parents which is the
breeding or matching for their beloved pets. Fur Fect Match Pet Dating Shop will provide the
services that will let customers evaluate and select the possible matches for their pets.
● Direct Competitors

17
The direct competitors of our business are pet shops who offer the same services. Like pet boarding
shops, pet grooming shops and pet daycare centers. This also includes professionals like
veterinarians and breeders who are much more knowledgeable about pets.

● Pauws Haus Pet Care (Honeymoon Rd, Brgy.Holy Ghost) – It offers pet transport from
home to home, boarding small,medium and large breeds, and pet sitting.
● R. G. O. Kennel (#106 Sta. Scholastica Village, Baguio City) - This shop breeds pets,
especially dogs, which cater to the customer's preferences and they are responsible for the
pet breeding. Also, they sell affordable and quality Siberian Huskies , English bulldogs ,
German Shepherd , Pomeranian , Pug , Chow chow , Beagle , Corgi , American Bully and
many more other dog breeds.
● Paw Park (L3 Sky Terrace, SM Baguio City) - it offers activities for the dog where they
can play with other dogs and also it will provide pleasure or happiness for the pets since
they enjoy it.

Indirect Competitors
The indirect competitors of our business are businesses or corporations who make pet goods and
pet products. This also includes small retail shops who sell pet products and pet shops who sell
pets. Pet shops who sell pet supplies are considered as indirect competitors because there’s a
possibility that pet owners will buy the pet supplies rather than to avail of our services.

● Diskubre Pet Shop and Vet Clinic (SM City, Luneta Hill Drive) – caters to any veterinary
services along with grooming the pets, boarding and also sells pet supplies.
● Baguio Pet Habitat (Luneta Hill Dr, Baguio) – This shop sells different pet supplies, cute
accessories and souvenirs, and also sells different breeds of animals.
● Pawspurr (2nd Floor, Assumption Road, Baguio City) - This business was created to
provide more accessible and affordable pet supplies to all pet owners, such as pet foods,
accessories, etc.

SWOT Analysis
● Strength
- Online booking for appointments
- Accessible location
- Knowledgeable and professional staffs
- Lower price compared to competitors
● Weaknesses
- Offer similar goods or services
- No established reputation
- New start-up business
● Opportunities
- Partnership with vet shop
- New Service
● Threat
- Local Competitors (Examples are as mentioned above: Pauws Haus Pet Care, R. G.
O. Kennel)
- High Cost

18
 - Seasonal variations
- Barriers to entry

C. 4P’S

● Price

Price is one of the factors that were being considered by the market aside from the quality of the
services that they avail. So the business has come up with a brilliant pricing strategy to capture its
target market. Since Fur-fect Match pet dating is quite new in the market, it can have its advantage.
The drawback is that it is a bit more expensive than the traditional pet shop since we will offer a
lot more services and we are a pet dating shop. The business then should make a strategy that can
still balance the cost and the revenue as not to yield loss for the business.

For our main service, it is pet dating. Other services included are pet care, pet boarding and pet
activities. The business considered using the target pricing strategy and cost-based pricing strategy.

Main Service Prices for the Services/Activities

Pet Dating
Inclusions: P 350 for the whole service until the
- Finding a possible match facilitation of breeding engagements
- Activity date for pets

Pet Care-taking / Pet Boarding P150.00/Hour

*P50 for the Additional/Extended Hour

Pet Activities P 200/Hour

Inclusions: *P50 for the Additional/Extended Hour
- Scavenger Hunt
- Fetch
- Course
- Ball pool
- etc
Table 1: Price

● Place

Fur-Fect Match will be located at the fourth floor of Casa Vallejo Building 2, Upper Session Road,
Baguio City. The town and distribution areas are 15 to 20 minutes distant. Session road is the
central business area here in Baguio and is very close to shopping facilities. We chose Casa Vallejo
Building 2, Upper Session Road, Baguio City because the store is located on high traffic commuter

19
routes, so it is easier for us to catch customers going to or from work while they are out for lunch
or on a shopping expedition.

Our organization will meet all of the essential conditions in order to obtain the aforementioned
location. If the specified location is unavailable, our organization will look for another location for
the business.

● Promotion

Promoting the business will help to boost up its sales or income. The management will use different
types of promotional elements for the business to be known. These promotional elements are as
follows:

Flyer:

Figure 2: Flyer

Sales Promotion:

20
 Figure 3: Sales Promotion (sample material format only)
Sign Board:

Figure 4: Sign Board

Social Medias:

21
Figure 5.1 Social Media, Facebook

Figure 5.2 Social Media, Twitter

22
 Figure 5.3 Social Media, Instagram

D. Factors affecting the market

The factors that may affect the demand for our services include foremost the shifting preference
of the market (especially the younger generation) a towards pet-loving lifestyle, which was
significantly induced during the pandemic, the price of our services as compared to the price of
alternatives such as procuring a new pet/pet match, consumer expectations and level of income,
and extent of marketing and promotion efforts for the service. As for the supply, a major influence
foreseen is the existence of strict regulatory provisions for pet care and animal treatment. Other
factors that may affect the supply of our service include operating costs to be covered that could
limit its provision, alternatives to the service such as procuring new pets/pet matches, and
environmental conditions such including the present societal restrictions and weather effects.
Finally, the primary drivers considered for the pricing are costs to operate and other relevant
expenses, consumers’ capacity and willingness to afford the service, the existence of alternatives
and level of competition, and the general economic condition.

E. Sources of Data
The proponents gathered the data through a survey questionnaire that was administered online, in
Google forms format, to all who wanted to voluntarily participate via email and social media
platforms.

● Survey Results

23
 Figure 6. Pet Owners

Yes No

74% 26%
Table 2. Pet owners

Figure 7. People who wants to have a pet in the future

Yes No

24
 100% 0%
Table 3. People who wants to have a pet in the future

Figure 8. People who find it easy to look for a possible match for their pets

Yes No

44% 56%
Table 4. People who find it easy to look for a possible match for their pets

Figure 9. Breeding of female pets

25
Every Every Two Every Four Every Not Don’t have
Week Month Months Months Year Planing male pets

0% 20% 20% 9% 46% 4% 1%

Table 5. Breeding of female pets

Figure 10. Breeding of male pets

Once a Once Every Once Every Six Months Twice a Year Not Planning
Year Two Year Four Years

57% 21% 11% 9% 1% 4%

Table 6. Breeding of male pets

26
 Figure 11. Factors that pet owners consider in choosing the partner for their pets

Breed Price Pedigree Mating Behavior PCCI None

Documentation Ability Document

84% 42% 28% 29% 49% 39% 1%

Table 7. Factors that pet owners consider in choosing the partner for their pets

Figure 12. Pet owners who are willing to avail for pet dating services

27
 Yes No

90% 10%
Table 8. Pet owners who are willing to avail for pet dating services

Figure 13. Pet owners who are willing to spend for pet dating services.

Yes No

85% 15%
Table 9. Pet owners who are willing to spend for pet dating services

28
 Figure 14. Pet owners who take their pets for activities

Yes No

92% 8%
Table 10. Pet owners who take their pets for activities

Figure 15. Taking pets for activities

Once a Week Twice a Week Once a Month Twice a Month At least Four Times

29
 41.3% 28.3% 19.6% 9.8% 1.1%
Table 11. Taking pets for activities

Figure 16. Activities pet owners engage their pets

Scavenger Hunt Fetch Course Ball Pool Jogging/Walking Hunting

47% 73% 38% 38% 4% 1%

Table 12. Activities pet owners engage their pets

30
 Figure 17. Pet owners who are willing to avail pet activities

Yes No

92% 8%
Table 13. Pet owners who are willing to avail pet activities

Figure 18. Pet owners who are willing to spend for pet activity services

31
 Yes No

83% 17%
Table 14. Pet owners who are willing to spend for pet activity services

Figure 19. Pet owners who suffers inconvenience

Yes No

75% 25%
Table 15. Pet owners who suffers inconvenience

32
Figure 20. Pet owners who are willing to avail for pet boarding services

Yes No

83% 17%
Table 16. Pet owners who are willing to avail for pet boarding services

Figure 21. Pet owners who are willing to avail for pet boarding service

33
 Yes No

78% 22%
Table 17. Pet owners who are willing to avail for pet boarding service

F. Analysis of Data Gathered and Summary of Results

Descriptive analysis was performed to analyze and organize all the data gathered in this study.
This analysis has two types, namely: primary and secondary data; where we used for collecting
the data. As a result, we look over the basic information of the pet owners and their babies and
analyze them. Based on the information that was obtained from it, the questions for the survey
were formed. A survey was used as a data tool, and questionnaires were distributed using a random
sampling method. Emails, social media platforms, and other methods were used to obtain the
responses. The questions were developed to determine how satisfied pet owners are, with Fur-fect
Match Shop's existing services. One hundred random owners of pets, especially cats and dogs, as
well as people who are interested in becoming pet parents, are the ones who filled out the
questionnaire. The questionnaire was distributed in Baguio City's district. The questionnaire might
be accessed online. The questionnaire was manually checked for validity once it was completed
and all of the responses were collected. It was done by checking that each question was answered
in accordance with the questionnaire's requirements.

After collecting and checking all the data gathered, we used graphs and tables to summarize all of
the answers from the survey we gathered. In that case, most of the respondents who answered our
survey were pet owners, and they are willing to avail themselves of the services, such as dating,
pet activities, pet care, and others, offered by our shop. While the other respondents were someone
who is planning on having a pet someday. Moreover, these are the results of our gathered data on
spending money on the services we proposed: 78% of pet owners answered ‘yes’ because they
were willing to spend the price we have stated where they want to experience our pet boarding at
a low cost. Next, 83% of pet owners agreed on the price we offered in pet activities due to the low
price compared to others that offer this kind of service. Lastly, 85% of pet owners are willing to
spend money on dating services that we have provided. Hence, we found out that most pet owners
are willing to spend money on the price we set because our prices are very affordable and they will
not have a hard time finding such a service that provides expensive fees.

Relatively, 56% do not find it easy to look for a possible match for their pets while 44% are the
opposite. That being said, an average of 90% are still considering availing of pet dating services,
while 10% do not. When asked if they are willing to spend with a price range of Php 300-350,
85% are willing while 15% are not. In pet activities, 8% are not considering taking their pet in
activities we offered, on the other side, 92% are willing to avail the activities. We asked them if
they are willing to spend with a price range of Php 200 plus the additional charge, 83% are availing,
and 17% are not availing. Lastly the pet boarding, 75% are finding it inconvenient in shopping and
others, to not bring their pets due to there are places that they can’t be taken to, while 25% are the

34
opposite. When we asked if they are willing to spend with a price range of Php 150 plus an
additional charge, 78% are willing to pay and 22% are not.

G. Five-Year Sales Forecast Schedule and Assumptions

The five-year sales projection of the project is hereby drawn from the implications of the above
survey figures with regards the expected number of customers considering the estimated initial
market size. The percentages of respondents willing to avail each given service of the company
are multiplied to the initial market share, with the following assumptions applied:

a) With an annual average of 12% increase in pet ownership and 7.13% average annual
growth of the pet service industry in the Philippines (statista.com), the proponents are
seeing a positive annual revenue growth of 17%.
b) Sales price increases are based on the current 4.4% (latest) average inflation rate in the
Philippines.
c) Operations are assumed at 85% of full capacity for the first two years and 90% in the
succeeding years. Note however that the sales in units projected below are adjusted further
in accordance with the size of the potential market share of the business. (Full capacity as
identified in the technical aspect of this study is at 30 pets a day, or a maximum of 9,390
pets per year assuming 313 working days.)

Figure 22. 5-years Sales Forecast of the 3 Classified Services

35
Sales revenue as indicated are increased at a rate of 17%, in line with the expected growth of the
potential market and the inflation rate provided, except for Year 3 which shows an 18% increase
in units and 23% in value due to the consideration of the increased operational capacity from 85%
in Year 2 to 90% in Year 3. The detailed breakdown is shown in the following tables:

Sales in Units
Services Year 1 Year 2 Year 3 Year 4 Year 5

Pet Dating
and Breeding 2,661 2,980 3,337 3,738 4,186

Pet
Recreational
Activities 2,598 2,910 3,259 3,650 4,088

Pet Boarding 2,880 3,225 3,612 4,046 4,531

TOTAL 8,138 9,115 10,208 11,433 12,805

Table 18. Forecasted Sales in Units

The projected sales quantities per type of service above is computed based on the number of
household expected to be served (6,450 households), as computed using the market penetration
rate, then equally distributed into three services, and the exact amount number identified using the
availment percentages of each service that were identified through the conducted market survey
which are 85%, 83%, and 78% for pet dating and breeding, pet recreational activities, and pet
boarding respectively. The number of serviceable households is then adjusted by the expected
increase in market years for Year 2 and the succeeding years.

Unit Sales Price

Services Year 1 Year 2 Year 3 Year 4 Year 5

Pet Dating 350 365.40 381.48 398.27 415.79

and Breeding

Pet 200 208.80 217.99 227.58 237.59

Recreational
Activities

Pet Boarding 150 156.60 163.49 170.68 178.19

Table 19. Unit Prices per Services

Revenue in Pesos
Services Year 1 Year 2 Year 3 Year 4 Year 5

Pet Dating 931,175 1,088,804 1,273,117 1,488,630 1,740,626

36
 and Breeding

Pet
Recreational
Activities 519,580 607,535 710,378 830,631 971,240

Pet Boarding 431,940 505,059 590,555 690,524 807,416

TOTAL 1,882,695 2,201,398 2,574,050 3,009,785 3,519,282

Table 20. Forecasted Sales in Pesos

Sales are computed using the ‘base-price’ sales prices indicated in the survey questionnaire for
each service (additional per hour costs above the minimum transaction fee are not included) so as
to not overstate the total sales projected.

Sales Forecast for 5 Years

YEAR 1 Php 1,882,695

YEAR 2 Php 2,201,398

YEAR 3 Php 2,574,050

YEAR 4 Php 3,009,785

YEAR 5 Php 3,519,282

Total Php 13,187,210

Table 21. Five-Year Sales Forecast

H. Product Pricing

Inorder for the business to make profit and to meet its quota, we will be using two pricing methods.
These are:

Target Pricing

In target pricing, it is a method by which the price of the product or service offered in the
marketplace is determined. It shows how we establish prices for our service that will serve as a
guide for our customer and to the market we will undertake. We set the price based on the cost of
production of our services and adding some profit margin for obtaining on what range the cost
limit will be carried out in the market. By following this method, we can ensure that we earn a
good profit across our services lineup and we will not be troubled by any low-profitability services.

Cost-based Pricing

37
In cost-based pricing, there is a process of determining the prices based on the cost of the goods
or services being offered or sold. The goods and service costs are used as the basis for pricing in
the operation of our business. We calculate the price of our service being offered by summing up
all of the costs and producing profit in our price. This method is suitable or advantageous for us,
as a pet entrepreneur, who is selling a product and providing service in a well-known market where
it gives low costs to a customer which strongly counts in their decision of purchasing goods and
service they are looking for.

I. Marketing Strategies

● Social Medias Advertisement

Connecting socially is very important, considering we are in the digital era. Social media like
Twitter, Facebook, and Instagram would be a great help in promoting our business. They will reach
a wider audience and are cheaper since almost everyone is on their SNS. Just a few posts will boost
the shop's popularity.

● Print Media Advertisement

We will be using print media like flyers and posters. It is much cheaper compared to media
advertisements. Print media are still very effective and have a higher appeal on visual learners.
This is also best for local targeting considering that our shop will be established here in Baguio
City.

● Sales Promotion

Sales promotions like discounts, vouchers, and incentives on special occasions will be inviting.
Discounts can attract new customers, while incentives to existing customers can boost sales. It can
add unique value to customers and it can be a reason for them to always choose our services.

J. Canvas of marketing scheme

Our decisions and behaviors are often the result of a goal or motive that we will possess. Any pet
shop's primary purpose is to sell animals. You want to get this done as soon as possible, not only
to maximize your profit margin, but also because pets in loving homes live and grow considerably
better than those in even the best pet stores. The animals are in desperate need of their new owner's
tender care. To that purpose, the business should take the time to match appropriate pets with
appropriate people, as well as pets with their ideal match. Families will need more than just a pet
to take home as they come in and out of your establishment. The pet store should make every effort
to provide new owners with the information they require, such as local and emergency veterinary
phone numbers, grooming options, food descriptions and alternatives, and any specific
instructions. Give customers paperwork on the breed or type of animal they're buying so they can
read it as they get to know their new pet. People will feel that both they and their pets are being
looked after. In this way, provide resources even if you don't make a sale. Fur-fect match, have
partnered with shops to help with marketing strategy, such as tarpaulins, signboards, flyers,
discount coupons, vouchers and social media sites like Facebook, Instagram and Twitter. Lazer
Marketing Printer Service Centers are well-known and have provided their fair amount of

38
advertising, which will help the business gain popularity by providing high-quality services. Also,
our business will be active on social media channels, with the material serving as our business's
advocate in promoting our services. Using the different social media platforms would surely
promote our business and enable us to become the talk of the town in the industry. It's also the
most efficient nowadays since social media allows us to reach a wider audience

K. Five year schedule of Marketing Costs

Advertisement and Year Year Year Year Year

Promotions 1 2 3 4 5

Flyers P 500 P 574 P 659 P 757 P 869

Sign Board P 1, 500 P 1, 566 P 1, 635 P 1, 707 P 1, 782

Poster P 800 P 835 P 872 P 910 P 950

Promotional Discounts P 10, 000 P 11, 000 P 12, 100 P 13, 310 P 14, 640

Social Media 0 0 0 0 0

TOTAL P 12, 800 P 13, 975 P 15,266 P 16, 684 P 18, 241
Table 22. 5 years forecast of marketing cost

The cost if advertisement is computed as follows:

a) The cost of advertisement increases yearly by 4.4% based on the current inflation rate.
b) There is an additional 10% increase on the number of flyers distributed yearly.
c) Promotional discounts increase yearly by 10% because of some promotional discounts for
special occasions. The amount was specifically identified as said amount will be distributed
as a certain applicable discount percentage or in specific peso discounts for a certain
number of customers.

39
d) Promoting in social media will be free since we will not avail for social media
advertisements, thus we will just use the platform to post services, events and other
information that will help boost the shop.

40
 III. TECHNICAL STUDY

A. Description of Business Operation

Fur-fect Match Pet Dating Shop offers four services. These are pet dating, boarding and
activities.

● Pet Dating
For pet dating, they can contact us on our social media or come to our shop. We would then
assist them and let them fill out a form. The form consists of questions about their pets and what
characteristics they are looking for a possible partner for their pets. After the filing of the form
we would then look for potential partners and set up a meet up date where both parties are
available. The meet up will be at our shop. If they both agreed, we would then set a breeding
date. We could refer them to a veterinary clinic, and if they don’t have time we can take their
pets ourselves for breeding on our veterinary clinic partners.

Figure 23. Pet Dating Flow

● Pet Services
For the boarding and activity services they can either contact us on our social media accounts or
business number for reservation or come to our shop. They need to provide us with information
like how long they are going to leave their pet, activities they are going to avail. If they choose a
reservation we will set the time and date they are available. If they choose walk-in, when they
arrive they would need to log in and fill in some information. We would then conduct the
service/s they avail. On the last part which is the log-in, that would be the time payment will be
collected.

41
 Figure 24. Pet Services Flow
● Service Flow Chart

Figure 25. Service Flow Chart

B. Store Capacity

42
Store Size

The space, where Fur Fect Match Pet Service will be established, will have a total area of 60 square
meter. Wherein, 4 square meters will be designated for the receiving area, 8 square meter space
will be designated for the office and storage room, 30 square meter for the pet’s pet dating area
and pet playground wherein 15 square meter each is designated for cat and dog, 8 square meter for
the pet’s pet boarding/cage banks, 5 square meter for the lounge and pet dating area.

Square Meter Cost

60 P 31, 320
Table 23. Cost of Rent
Service Capacity

The Fur Fect Match Pet Service can service 30 pets per day because it will be estimated to take
each service up to one hour. As for the additional services/activities each employee would be able
to attend 5-8 pets per day. This will depend upon the services that the customer availed. Customers
can make an early reservation to a slot and a specific date. The service hours will be from 9:00Am-
6:00Pm, business hours will be from 9:30am- 5:30pm.

The service will be operating for 7 days from Mondays to Sundays. The regular business hours
will be from 9:00am-5:00pm. Every working day will have at least 3 employees to serve and each
employee will be having a day off each week . Working hours for employees will be 8 hours a
day and they will be having an hour break for lunch.
Service Capacity

YEAR WORKING TOTAL WORKING TOTAL

HOURS CAPACITY DAYS
PER DAY

2021 8 Hours 30 313 9, 390

2022 8 Hours 30 313 9, 672

2023 8 Hours 30 313 9, 962

2024 8 Hours 30 313 10, 261

2025 8 Hours 30 313 10, 569

Table 24. 5 years projection of service capacity

This table shows the service capacity of the proposed business. The services and the activities will
be finished after one hour depending if they wanted to extend the time limit in availing the service.

43
The total capacity for one day is at least 30 pets with an estimated total of 49, 881 pet’s for the
first 5 years of operating.

Salaries of Employees

POSITION HOURLY DAILY NO. OF MONTHLY YEARLY

RATE RATE EMPLOYEES COMPENSATIO TOTALS
N

General 130.72 1,045.77 1 27,190.00 326,280.00

Manager

Veterinarian 120.19 961.52 1 25, 000.00 300,000.00

Pet Expert 96.15 769.23 2 20,000.00 240,000.00

(alternating)

All-Rounder 50 400 2 10,400.00 124,800.00

Staff
Table 25. Salaries of Employees

Employee Benefits

POSITION BENEFIT EMPLOYER EMPLOYEE TOTAL

SHARE (PHP) SHARE
(PHP)

General Manager SSS 2,155.00 1,125.00 3,280.00

PHILHEALT 475.83 475.83 951.66

H

PAG-IBIG 100.00 100.00 200.00

Veterinarian SSS 2,155.00 1,125.00 3,280.00

PHILHEALT 343.75 343.75 687.50

H

PAG-IBIG 100.00 100.00 200.00

44
 Pet Specialist (2) SSS 1,730 x 2 = 900 x 2 = 5,260.00
3,460.00 1,800.00

PHILHEALT 350 x 2 = 700.00 350 x 2 = 700.00 1,400.00

H

PAG-IBIG 100 x 2 = 200.00 100 x 2 = 200.00 400.00

All-Rounder SSS 1,242.50 x 2 = 652.50 x 2 = 3,790.00

Staff (2) 2,485.00 1,305.00

PHILHEALT 253.60 x 2 = 507.20 253.60 x 2 = 1,014.40

H 507.20

PAG-IBIG 100 x 2 = 200.00 100 x 2 = 200.00 400.00

TOTALS P 12,881.78 P 7,981.78 P 20,863.56

Table 26. Employee Benefits

C. Materials and Input

Renovation
The following table below shows the materials that will be used for the construction of the shop:
(items costs are indicated in table 45 under breakdown of cost).

SPECIFICS PICTURE USE

Grass Carpet It is for the flooring of the pet

playground.

45
Paint It is for the repainting of the
shop.

Primer and Undercoat It is a primer coat before applying

the final paint for a smoother
surface.

Paint Brush Set It is for applying the paint.

Paint roller and tray Set It is for Applying the paint so that
it won’t get messy.

46
Adhesive tape To achieve sharp lines in
25mm/50mm*30mm applying the paint.

Sand Paper (A4) To smoothen surfaces.

Plywood (½ thick 4ft x For division and making of the

8ft) office.

Kiln Dried Lumber It will serve as the foundation of

2x4 inches x 8 ft the division.

47
Nails To fasten pieces of wood
1½ together.
3

Door Knob To close and open the door.

Indoor Wooden Fence It will be used to divide the dog

and cat area.

Door Hinge Allows doors to pivot on one

edge as they open and close

48
 Wooden Door It is used to change the front and
office door for safety and privacy
purposes.

Socket (3 pcs outlet) It is used for outlets of cable

wires like computers, aircons,
etc.

Table 27. Renovation Materials

Machineries, Equipment & Furnitures

The following tables below present the machineries, equipment and furniture needed in order for
the business to operate and cater its services to the customers. They are separated into categories
depending on its features and purposes: (items costs are indicated in table 41 to 44 under
breakdown of cost).

SPECIFICS PICTURE USE

Cash Register It is where payments are

processed and stored.

49
Air Filters/Purifiers It will remove unnecessary
odors and prevent the spread
of virus or bacteria. It also
helps as an anti allergy.

Table 28. Machineries

SPECIFICS: PICTURE USE

Food and Water Dispensers It is a double bowls food and

water automatic feeder which
will be more convenient to be
used.

Trash Bins with Pedal It is where pet waste will be

thrown to and has a pedal to
avoid using the hands in
opening it.

Infrared Thermometer with Check the temperature of

Stand Holder and Sanitizer customers before entering the
shop.

Agility Equipment This set can be used to train

● Tunnel the agility and direction of
● Jump Ring dogs, enhance the fun of a
● Jump Pole dog's boring life, and enhance
● Weave Pole the relationship between dogs
and owners.

50
Collapsible Ball Pool This equipment will be filled
by soft plastic balls which will
serve as an additional
entertainment for pets.

Hurdle Cones This equipment will serve as

obstacles which will help pets
to have fun while improving
their skills.

Mini Slide This slide will also be an

additional equipment for the
pet’s indoor playground.

Tree Tower Climbing Frames Tree towers are useful

especially to cats who like to
scratch,climb,rest and sleep.

Cat Scratcher Relaxing Stand This tool is useful for cats to

keep their claws sharp, to
exercise and stretch their
muscles.

Scratch Pads with Catnips It helps cats shed their old

nails, strengthen their back
muscles, and relieve stress.

51
Aro Agility Slalom This equipment will help cats
to be more active and improve
their agility.

Non-slip Cage Mats This will be put inside the

cage to provide comfort for
pets.

Muzzle This adjustable muzzle will be

used for protection purposes in
case there are changes in the
dogs behaviour.

Padlocks It will be used for securing the

office and the shop itself.

Table 29. Equipments

NAME PICTURE USE

Computer Set It will help the shop operate

more efficiently by saving
records and in facilitating
transactions.

Telephone and Wifi Router The telephone will be used for

contacting customers and also
for customers to easily reach
us. The wifi router is helpful
in the daily operation of the
business and in the
implementation of marketing.

52
Printer This printer has 3 in 1 features
which is print, scan and
photocopy which will be
beneficial for the shop’s daily
operation.
Table 30. Office Equipments

NAME PICTURE USE

Cage Banks It will be used for the service

1 set has 2 cages which is the boarding of pets.

Office Table It includes drawers and

cabinets for easy storing of
documents which will be
placed in the office.

Swivel Chair Paired with the Office Table

and provides comfort with its
adjustable height.

Reception Table It will be placed in the

reception area to help aid with
the customers needs and
where payments are
processed.

53
 L Shape Sofa Set These will be placed in the
lounge area to provide comfort
for waiting customers.

Tables This table will be used by

customers in discussing their
agreement in breeding their
pets once they have chosen a
match.

Shelves It will be placed in some areas

in the pet shop in need of a
storage space especially for
supplies.

Cabinets It will be placed in different

parts in the pet shop in need of
storage spaces.

Table 31. Furnitures

Materials and Supplies

As the project proposal is service-based, materials and supplies are deemed only complimentary
to the primary services to be offered by the project. Such items were selected upon the materials,
functions, and features as per discussed in the market study which are: natural, sustainable, eco-
friendly and pet-appropriate materials. The following table shows the list of supplies essential to
the operations of the project: (items costs are indicated in tables 36 to 40 under breakdown of
cost).

SPECIFICS: PICTURE USE

54
Dog and Cat Foods and For feeding pets with a
Treats complete and balanced
nutrient requirements.

Pet Toys To aid in the well-being of

pets and for recreation
purposes.

Disposable Gloves For hand protection and

other sanitary purposes.

Table 32. Activity Supplies

SPECIFICS: PICTURE USE

Sterile gauze pads For general cleaning,

dressings, prepping,
packing and debriding
wounds.

Bandages and Tapes For attaching dressings to

skin around wounds.

Antibiotic Ointments/ For first aid treatment and

Disinfectants disinfection of wounds.

Table 33. First Aid Supplies

55
SPECIFICS: PICTURE USE

Litter Box with Poop For indoor pet feces and

Scoopers urine collection where the
littering sand will be
placed. It helps clean pet
wastes easily.

Litter Poop Brooms These mini poop brooms

help in cleaning the dirt
more easily and
conveniently.

Littering Sand It will serve as an indoor

feces and urine collection
utility for pets.

Spray Bottles It will be used for different

purposes like in sanitation
and cleaning.

56
Pet-friendly Multi-purpose For cleaning contaminants
Surface Cleaners such as grease or oil off of
surfaces such as industrial
equipment or mechanical
components, disinfect or
sterilize equipment,
laboratories, and similar
applications.

Flea Preventative To protect pets from fleas

and ticks.

Stain and Odor Remover To help maintain fresh

smelling utilities and clean
up tough bio-based
messes.

Floor Mop Used to soak up liquid, for

cleaning floors and other
surfaces, to mop up dust,
or for other cleaning
purposes.

Cleaning Rags For cleaning in general of

all types of messes.

Broom Set For sweeping and

collecting dry messes
around the whole business
premises.

Garbage bags For disposing of garbage

and other wastes and for
other storing purposes

57
 Table 34. Sanitary and Cleaning Supplies

SPECIFICS: PICTURE USE

Bond Papers For printing business

forms, other transactions,
and other materials that
need printing.

Printer Inks Printer fill inks for printing

business forms, reports,
other transactions, and
other materials that need
printing.

Log book/Record Book For record keeping of

time-in and outs and other
transactions that need to be
documented (i.e., in case
computerized logging in is
unavailable)

Thermal Papers For issuing printed

receipts to the customers.

Pens and Markers For writing down

necessary details by
customers, and all other
purposes that need
writing/documenting.

58
Clips, Binders, Staplers For grouping or binding
sheets of papers (i.e
business forms) together.

Tapes and Adhesives Miscellaneous supplies

used to bond or join
objects together.

Organizers To arrange documents,

craft supplies, pens,
pencils and more in one
place for quick and easy
access.

Fluorescent Bulbs For various store lighting

purposes.

Table 35. Office Supplies

59
 D. Five Year Schedule of Equipment, Supplies and Materials, With Assumptions

Renovation Materials Schedule

The following table represents the 5 year schedule list of construction materials essential to the
operations of the project, with the following computations and assumptions applied:
1) The inflation rate applied in the projection is 4.4%
2) The construction materials are for one time used only. The basis if it needs a change is
based on its lifespan. For construction materials it has a lifespan of more than 5 years. As
per the door knob and carpet their life span is not stable for the possibility that it might
get broken or be damaged.

YEAR YEAR 2 YEAR 3 YEAR YEAR 5 TOTAL

1 4

Grass Carpet P 528 P 551.23 P 575.48 P 601 P 627.44 P 2,883.15

Paint P 987 - - - - P 987

Primer and Undercoat P 481 - - - - P 481

Paint Brush Set P 165 - - - - P 165

Paint roller and tray Set P 110 - - - - P 110

Adhesive tape P 208 - - - - P 208

25mm/50mm*30mm

Sand Paper (A4) P 6.50 - - - - P 6.50

Plywood (½ thick 4ft x P 680 - - - - P 680

8ft)

Kiln Dried Lumber P 240 - - - - P 240

2x4 inches x 8 ft

Nails P 275 - - - - P 275

1½
3

Door Knob P 200 P 209 P 218 P 228 P 238 P 1, 093

Door Hinge P 34 - - - - P 34

Wooden Door P 1710 - - - - P 1, 710

60
 Socket (3 pcs outlet) P 255 - - - - P 255

TOTAL P 760.23 P 793.48 P 829 P 865.44 P 9, 098

Table 36. 5-year Construction Materials Schedule of Cost

Materials and Supplies Schedule

The following figure shows the 5-year schedule of the list of supplies essential to the operations
of the project, with the following computations and assumptions applied:
1) Prices of each material and supplies are based on the current prices in the existing
online markets (i.e., shopee, lazada, etc.)
2) The inflation rate applied in the projection is 4.4%, the current average inflation
rate in the Philippines.
3) An additional 10% annual increase in the cost (or a 12% increase in volume but
cost is expected to be lower due to purchase discounts that the management would
seek to take advantage) of raw materials, activity supplies, and first-aid supplies
was further provided to account for the projected increase in operations capacity
to accommodate the 12% average yearly expected growth of the potential market.

Figure 26. 5-year Materials and Supplies Cost Schedule

61
The following tables show the detailed breakdown of the above materials and supplies projection:

Sanitary and
Raw Activity First Aid Cleaning Office
Materials Supplies Supplies Supplies Supplies TOTAL
YEAR 1 ₱101,004.00 ₱70,352.40 ₱4,092.00 ₱74,249.76 ₱41,694.00 ₱249,698.16
YEAR 2 ₱115,992.99 ₱80,792.70 ₱4,699.25 ₱77,516.75 ₱43,528.54 ₱279,001.69
YEAR 3 ₱121,096.69 ₱84,347.57 ₱4,906.02 ₱80,927.49 ₱45,443.79 ₱291,277.77
YEAR 4 ₱126,424.94 ₱88,058.87 ₱5,121.88 ₱84,488.30 ₱47,443.32 ₱304,093.99
YEAR 5 ₱131,987.64 ₱91,933.46 ₱5,347.25 ₱88,205.78 ₱49,530.82 ₱317,474.12
TOTAL ₱596,506.26 ₱415,485.00 ₱24,166.41 ₱405,388.07 ₱227,640.47 ₱1,441,545.73
Table 37. 5-year Materials and Supplies Cost Schedule

Machineries, Equipment & Furnitures Schedule

The following table presents the 5 year schedule of the machines, equipment, furnitures and
fixtures, with the following computation and assumptions:
1) The inflation rate used in computing for the projection of prices is 4.4%.
2) The basis for knowing if the machine, equipment, furniture and fixture needed to change
is its estimated lifespan. For machines its estimated lifespan is 6-9 and 26 years for
transport equipment, computers and machinery. While for the home furnishings like sofa,
desks, and office chairs has an average lifespan of 7-15 years. (breakdown of useful life
are in the latter part of financial statements in the financial aspect)

Office Furniture and

Machineries Equipments Equipments Fixtures TOTALS

Year 1 ₱11,595.00 ₱22,344.48 ₱13,649 ₱76,425.80 ₱124,014.52

Year 2 0 ₱5,967.54 0 0 ₱5967.54
Year 3 0 ₱6,230.10 0 0 ₱6230.1
Year 4 0 ₱6,504.20 0 0 ₱6504.2
Year 5 0 ₱6,790.27 0 0 ₱6790.27
TOTALS ₱11,595.24 ₱47,836.59 ₱13,649 ₱76,425.80 ₱149,506.63
Table 38. 5-Year Machineries, Equipment & Furnitures Cost Schedule

62
E. Floor Plan

The plant layout is well-designed to ensure that the proposed project or business, Fur-Fect Pet
Dating Shop, operates or runs well. The receiving area is a place where customers can inquire
about the services and products that the shop provides and it will assist or help the customers in
everything they need to know and to do. There will be an office area which will cater to the
transactions related to business, while the storage area will be a place where the equipment and
supplies that will be needed in the shop are stored. The pet dating area will be the place where
pet owners and their pets will meet and they will build a good relationship for their pets. The pet
playground is an area where pets can play in activities provided by the shop, such as pet toys,
hurdles, tunnels, etc., while they are idle or when their pet owners leave them due to something
they need to take care of. The pet products area will be the place where the customers can
purchase products, such as dog and cat foods, treats and toys, for their pets. The pet boarding
will be the area where pets can stay while waiting for their pet owners.

Figure 27. Business Layout

F. Location and Vicinity Map

Fur-Fect Match Pet Dating is located on the fourth floor of Casa Vallejo Building 2, Upper
Session Road, Baguio City. The location has a backdoor access from or exit to Leonard Wood
Rd, thus helping in accessibility or transporting materials. The availability of the raw materials
and their accessibility to the source is quite distant to the shop. The shop is located near the city
center where raw materials are found in the distance. Despite the distance from the source to the

63
shop, there are companies wherein they offer help in delivering and making the raw materials
accessible in a less hassle way regardless of the desired location. The availability of utilities such
as power and water are present in the location mentioned as most commercial buildings are
known for submetering. Submetering is custom-designed metering for tenant usage profile which
makes it cost-efficient. Nevertheless, the availability of utilities are moderately priced as the
establishment where the shop is located is known and considered to be one of the newly built
buildings in the city.

For the combined cost of transporting raw materials to the plant site, mentioned beforehand that
some companies offer services where the overall transportation is included. In that way, the shop
can save time and money instead of getting it manually from the supplier. Our shop is located
where a variety of businesses are found. Moreover, as it is placed near the city center, its
proximity is not too far, making the distribution very convenient and accessible. There are also
many routes creating different options that can be taken by the supplier or our distribution of
service.

For the availability of skilled and unskilled labor, it is not difficult to acquire or look for such
laborers as usual job hunters are looking more at the city center as more opportunities are open.
Furthermore, as it is located near the center, the foot traffic is high, making more people see the
availability of the labor.

Below is the location of the proposed business.

64
 Figure 28 .Location and Vicinity Map

G. Office Layout

The office will serve as the working area for the General Manager and will also serve as a
storage area for the shop.

Figure 29. Office Layout

65
H. Lease Contract/Title/Tax Declaration

Figure 30 Lease Contract

66
 Figure 30.1 Lease Contract

ENTERPRISE’S SAMPLE DOCUMENTS AND ACCOUNTABLE FORMS

67
Figure 31. Business Permit Form

68
Figure 32. Official Receipt Form

69
 Figure 33. Bill of sales

I. Breakdown Costs (Estimated Costs for One Month for the 1st Year of Operations)

70
Raw Materials and Supplies

PARTICULARS QUANTITY UNIT COST TOTAL COST

Dog Food 3 sack (20kg) P995/sack P2,985.00

Cat Food 3 sack (20kg) P1,464/sack P4,392.00

Assorted Pet treats 5 packs (4kg) P208/pack P1,040.00

TOTAL P8,417.00
Table 39. Raw Materials Estimated Monthly Cost

PARTICULARS QUANTITY UNIT COST TOTAL COST

Pet Simulation Toys 20 pcs (set) P474/set P474.00

Swim Balls 1000 pcs P464/set of 100 P4,640.00

Drying Towels 1 dozen P499.70/dozen P499.70

Disposable Gloves 100 pcs P249/100pc P249.00

TOTAL P5,862.70
Table 40. Activity Supplies Estimated Monthly Cost

PARTICULARS QUANTITY UNIT COST TOTAL COST

Sterile gauze pads 1 set P88/set P 88.00

Bandages and Tapes 2 pcs P30/pc P 60.00

Antibiotic Ointments/ 1 set (antibiotic P193/set P193.00

Disinfectants ointment and
antiseptic)

TOTAL P341.00
Table 41. First Aid Supplies Estimated Monthly Cost

PARTICULARS QUANTITY UNIT COST TOTAL COST

Litter Box with Poop 2 P132 P264.00

Scoopers

71
Litter Poop Brooms 2 P272.44 P544.88

Littering Sand 5 (10Lb pack) P468/pack P2,340.00

Spray Bottles 5 P 26.00 P130.00

Pet-friendly Multi- 2 gal P476.30/gal P952.60

purpose Surface
Cleaners

Flea Preventative 1 set P464/set P464.00

Stain and Odor Remover 1 gal P358/gal P358.00

Floor Mop 1 (set) P250 P250.00

Cleaning Rags 2 set (15 pcs/set) P43/15pcs P 86.00

Broom and Dustpan Set 2 (set) P255 P510.00

Garbage Bags 100 pc M-sized bags P288/set P288.00

(set)

TOTAL P6,187.48
Table 42. Sanitary and Cleaning Supplies Estimated Monthly Cost

PARTICULARS QUANTITY UNIT COST TOTAL COST

Bond Papers 1 set (1 ream each of P474/set P474.00

A4, long, and short)

Printer Inks 1 set (4 color) P463.50/set P463.50

Log book/Record 1 P99 P 99.00

Book

Thermal Papers 1 set (10 pcs) P474/set P474.00

Pens 2 dozen P83/dozen P166.00

Markers 2 dozen P125/dozen P250.00

Clips and Binders, 1 set P99/set P 99.00

Stapler and Staple 2 set P98/set P196.00

Wires

Tapes and Adhesives 1 set (office tape, P89/set P 89.00

72
 masking, packaging at
2pc, 10m each)

Organizers 1 P464 P464.00

Fluorescent Bulbs 5 P140 P700.00

TOTAL P3,474.50
Table 43. Office Supplies Estimated Monthly Cost

Machineries, Equipment & Furnitures

PARTICULARS QUANTITY UNIT COST TOTAL COST

Cash register 1 5,231.24 5,231.24

Air Filters/Purifiers 2 3,182.00 6,364.00

TOTAL P 11,595.24
Table 44. Machineries

PARTICULARS QUANTITY UNIT COST TOTAL COST

Food and Water 10 sets 339.00 3,390.00

Dispensers

Trash Bins with Pedal 4 pcs. 199.00 796.00

Infrared Thermometer 1 set 1,134.00 1,134.00

with Stand Holder and
Sanitizer

Agility Equipment 1 set 4,957.00 4,957.00

● Tunnel
● Jump Ring
● Jump Pole
● Weave Pole

Collapsible Ball Pool 1 1,047.00 1,047.00

Hurdle Cones 1 2,061.00 2,061.00

Mini Slide 1 1,469.00 1,469.00

Tree Tower Climbing 1 2,269.00 2,269.00

Frames

73
Cat Scratcher 2 436.00 872.00
Relaxing Stand

Scratch Pads with 2 293.00 586.00

Catnips

Aro Agility Slalom 1 1,803.48 1,803.48

Non-slip Cage Mats 20 pcs. 49.00 980.00

Muzzles 10 76.00 760.00

Padlocks 2 110.00 220.00

TOTAL P 22,344.48
Table 45. Equipments

PARTICULARS QUANTITY UNIT COST TOTAL COST

Computer Set 1 set 6,868.00 6,868.00

Telephone and Wifi 1 set 1,899.00 1,899.00

Router Package

Printer 1 4,882.00 4,882.00

TOTAL P 13,649
Table 46.Office Equipments

PARTICULARS QUANTITY UNIT COST TOTAL COST

Cage Banks 5 sets 4,966.00 24,830.00

Office Table 1 3,013.80 3,013.80

Swivel Chair 1 999.00 999.00

Reception Table 1 13,024.00 13,024.00

L Shape Sofa Set 1 set 7,500.00 7,500.00

Tables 3 3,451.00 10,353.00

Shelves 4 2264.00 9.056.00

Cabinets 3 2,550.00 7,650.00

74
 TOTAL P 76,425.80
Table 47.Furniture and Fixtures

Construction Materials
Materials Cost Quantity Amount

Grass Carpet P 528/2.5 square 8 pcs P 4,224

meter

Paint P987/4liter 2 P 1,974

Primer and Undercoat P481/liter 7 P 3,367

Paint Brush Set P165/5psc 1 P 165

Paint roller and tray P110 3 P 330

Set

Adhesive tape P208 4 P 383

25mm/50mm*30mm

Sand Paper (A4) P 6.50/piece 100 pcs P 650

Plywood (½ thick 4ft P 680/piece 10 pcs P 6, 800

x 8ft)

Kiln Dried Lumber P240/piece 30 pcs P 7, 200

2x4 inches x 8 ft

Nails P 275
1½ P144/kg 1kg each
3 P131/kg

Door Knob P 200/piece 2pcs P 400

Door Hinge P 34/piece 2pcs P 68

2pcs

Wooden Door P 1710/door 1 P 1, 710

Socket (3 pcs outlet) P 255/piece 7pcs P 1,785

Indoor Wooden Fence P 1640/12piece 2 set P 3,280

(40cm x 30cm)

3 Laborer (350/day) 1,050 3 days P 3,150

75
Total P 35,761.00
Table 48. Construction Materials

76
 IV. SOCIO-ECONOMIC STUDY

A. Employment and Income

Employees are a company's or any business entity's most valuable asset in the business world.
They are critical to the success of a firm because they control and direct it to ensure that it earns
enough money to stay in the game. The Fur-fect Match Pet Dating Shop will simply provide jobs
to qualified individuals, allowing them and their families to live comfortably while achieving its
primary purpose of generating cash. Employees' need for money is critical because it is where they
receive funds to satisfy their own demands. A good income is required for a firm to be successful
and flourish. The business may assist employees to work hard and appreciate their presence in the
business by enhancing their abilities and knowledge. As the firm becomes more successful in terms
of continual growth, it generates more income and may also generate job chances.

As a service-based business project, the availability and quality of human resources is a highly
significant concern for the realization of the vision, mission, and objectives of Fur-fect Match Pet
Dating Shop. In line with this, the project proposal is expected to contribute to an increased level
of employment in the Cordilleras, specifically in Baguio City's pet service industry. With pet care-
taking as a very familiar task for almost everyone, the dispersion of the employment opportunity
that Fur-fect Match seeks to bring is highly encompassing, with the staff positions being available
to everyone as no specific experience is required, thus providing equal employment opportunities
to almost every available job seeker.

B. Taxes

Throughout the entire country, there are a lot of businesses that operate illegally, and this is all
done so that they could pay fewer taxes or no tax at all. This is a big problem because the
government would have less money to spend which means lesser projects for the people and lower
GDP.

As a business entity, we understand the value of paying the correct amount of tax that would be
beneficial to the government and most especially to the citizens of the country. The government
requires tax money to operate and in return, it gives its people products and services to improve
their living conditions. We, as a business entity therefore shall see to it that we will comply with
all the necessary and legal requirements needed from us by the government.

Our business will be responsible and surely will comply with all the legal duties by having the
necessary licenses, permits, and certifications. All the activities and operations of the business will
be recorded and the outcomes will be honestly stated, with supplementary evidence to show our
integrity as a legitimate organization.

All of the aforementioned things stated above will be executed with the utmost intention of helping
the government.

C. Supply of Commodities

77
The Fur Fect Match Pet Shop is estimated to offer their services up to 30 pets each day in which
each employee would be able to attend 5-8 pets a day depending on the services that the customers
will avail. The total estimated capacity for the first 5 year business operation is 46, 950 pets. The
factor that will affect the change of its services offered is the number of its competitors directly
and indirectly which also operate in the city. Direct competitors which also offer the same services
like pet boarding, pet day care, veterinarians and breeders who are much more knowledgeable
about pets. Indirect competitors which are the businesses who make pet goods and products.

D. Local Community
Fur-Fect Match pet service is expected to benefit the most in the locality of Baguio City. Including
the employment opportunity to the community as well as helping them to become a productive
member of the society; the local supplier who will profit through supplying raw materials directly
to the Business; the opportunities for other small businesses that will supply the Business’s full
operation; and especially its customers in the city who will benefit in the services satisfying result.

E. Environment
As an environmentally friendly business, Fur-Fect Match pet service aims to contribute in
maintaining and preserving our environment. The business will control and avoid those activities
which can harm the environment, this includes controlling the supply and use of water and
electricity consumption, as a business that uses more botanical and natural resources rather than
strong chemicals, the business production will not harm the environment . In addition, the business
would also like to maximize its impact by investing in eco-friendly technology and refillable
bottles of corfume. These business practices would help the business to grow its reputation and
preserve the environment at the same time.

F. Demand for materials

Demand for materials is closely linked to demand for services that requires specific products for
the implementation of services. The business would consider using local products on the business
operations. Materials are important in the implementation of services, without them, services are
impossible. Using local products will help small and local businesses to grow and earn profit. This
will also help the business to lessen the expenses that may be incurred because local products are
way cheaper than imported products. Also it will not be difficult for the business to locate all the
products needed for its business operation. Buying local products will create opportunities for the
local manufacturing industry to gain competitive advantage and given that competition between
imported and local products are increasing continuously.

78
 V. ORGANIZATION AND MANAGEMENT STUDY

A. Formulation of Goals and Objectives

To the Customers:
● To offer a variety of pet services at affordable prices.
● To cater their needs and enhance customer relationships through responsiveness.
● To ensure a safe and fun environment for pets.

To the Employees:
● Establish good quality jobs for employees.
● Provide more jobs.
● Provide experiences.

To the Business:
● To expand the pet shop in 5 years.
● To expand the business operation in more parts of the country in 10 years.

B. Basic Consideration

Fur-fect Match aims to achieve the goals such as improving and expanding the services and its
quality in the country. Also, it serves the best environment to the pet owners and their babies in
terms of the services offered. This is relevant considering that the business encourages the pet
owners to take care of their babies with love and happiness.

Fur-fect Match is a pet dating business, where the customers will find a new friend for their babies
and be able to experience good care for them. It offers some goods and services like other shops
so that it becomes less attention to others. However, it promotes low/affordable prices for the
offered services and some goods where it will leave a positive impact on the customers. Fur-fect
match promotes a good relationship to everyone and pays attention to the skills and personality of
one another for customers to see how well they interact with the business and to build their trust
and loyalty in our shop.

At the starting year of the business, it is not instantly visible or increases on the profit since it has
just begun in the market and there is a lot to do and experience in terms of business. In order to
grow and be profitable, we need to learn what competitors can do, to find out the strengths’ and
weaknesses in generating the profit and become stable.

C. Form of Ownership

Partnership type of organization was chosen, more specifically General Partnership as it was the
most suitable type for the people involved. There are more than two people involved so it is not
advisable to form sole proprietorship, and the corporation is out of the league because the people
involved don't have sufficient funds to cater everything a corporation requires. The business will
have eight proprietors who are responsible for their own tasks and obligations.

79
Choosing a partnership type of organization entails a lot of benefits. One, it is inexpensive to start
due to the number of people involved. They will have the privilege to combine resources thus
lessening the burden and expenses of putting up a business. Lastly, any losses the business may
face will be shared by all partners.

D. Organizational Chart

Figure 34. Organizational Chart

E. Officers and Key Personnels

Officer

● General Manager

They are responsible for the planning, directing and coordinating the operations of the business or
organization. They set policies, operations, create and maintain budgets and coordinates with local
management in the business.

Job Specification:

80
 - Coordinate Daily business operation.
- Deliver superior customer service.
- Regularly review the service quality.
- Monitoring and motivating staff to improve productivity.
- Managing operational costs and identifying measures to cut expenses.
- Improving administration process.
- Create detailed reports on weekly, monthly and annual revenues and expenses.
- Formulating policies that will maintain service operation.
- Involve in hiring employees.

Job Qualification:
- College Graduate with Business Administration Degree
- Male or Female, 21-36 years old.
- At last 2 years worth of experience.
- With good verbal and written communication skills.
- Leadership skills.
- Hardworking and good with employee relations.
- With a pleasing personality.

Key Personnels

● Pet Expert

He or She is responsible for supporting the pets in providing the highest level of treatment and
care for patients. They will facilitate all the activities related duties necessary to ensure that pets
are relaxed, and will enjoy all the services the pet owners avail. They should be able to comply
with the pet owners' instructions as well as accommodate any special requests that they may have.
Ultimately, a top-notch Pet Smart will treat all animals with the utmost love and care. They should
specialize in training pets, and are knowledgeable on how to handle pets.

Job Specification:
- Performs emergency procedures such as control of bleeding, resuscitation with oxygen,
opening airways, and external cardiac massage.
- Performs physical examinations; records observations on patients.
- Accommodating special requests that pet owners may have.
- Making sure the pets are comfortable and safe at the duration of activities.
- Facilitate in matching the pets and making sure that both demands of customers are met.
- Taking good care of the pets with utmost care.
- Provide excellent customer services.
- Excellent verbal communication skills.
- Kind and punctual in dealing with the customers.
- Maintains positive, cooperative relationships with other employees.

Job Qualification:
- Have a certificate in any short term courses for pet care and activities.

81
 - Have at least a knowledge in breeding pets.
- Male or Female 25-36 years old.
- At least 2 years worth of experience.
- Caring and patience with animals.
- Feels comfortable to both big and small breeds of pets.
- Excellent customer service.
- With a pleasing personality.

● Veterinarian

Veterinarian is a doctor, who is responsible for pets that will avail services. They will treat any
adverse situation that happens to pets, like treatment of injured or illness pets while they are in the
services we provide, with the use of different equipment. Their attention is on pets to guard or
watch over them from unfortunate incidents and keep the pets in good condition during performing
the services they have applied for.

Job Specification:
- Examine the pets to determine what type of injury or disease they have.
- Provide care of the pets to keep them healthy and keep away from any disease or injury.
- Advise or recommend to pet owners on how to protect, conditions, and general care for
their pets to promote good health.
- Performing surgery, dressing and treating wounds, and prescribing medication.
-

Job Qualification:
- Have a Doctorate Degree or Bachelor’s Degree in veterinary medicine.
- Have to pass a licensing exam and certification for specialties.
- Male or female, 24-40 years old.
- Ability to make prudent decisions regarding the welfare and well-being of animals.
- Strong fondness for pets.
- Outstanding communication and organizational skills.

● All rounder staff

All-rounder staff are responsible for processing payments and transactions. Duties include
accepting payments, ensuring all quantities are accurate and providing receipts to all customers.
An all-rounder staff will also perform a variety of cleaning and maintenance duties. Attention to
detail and a positive attitude is a must and punctual, thorough but fast, and eager to learn.

Job Specification:
- Managing transactions with customers using the cash register.
- Cleaning out cage banks and tidying the shop to ensure cleanliness.
- Making sure the temperature and condition of the shop are correct for the pets.
- Ordering, receiving and unpacking stock and filling shelves.
- Ability to calculate sales and make change quickly.
- Excellent customer service and people skills.

82
 - Ability to work in a fast-paced, stressful environment.
- Ability to multitask to perform tasks fast and accurately.
-
Job Qualification:
- Atleast highschool graduate.
- Female, 18-26 years old.
- Good math and computer skills.
- Attention to detail and sanitary rules.
- With a pleasing personality.

F. Project Schedule

● Work Schedule

POSITION WORK START WORK END NUMBER OF

TIME TIME HOUR

General Manager 10:00 AM 7:00 PM 8 hours (with 1

hour lunch break)

Pet Expert 1 10:00 AM 7:00 PM 8 hours (with 1

hour lunch break)

Pet Expert 2 10:00 AM 3:00 PM 4 hours (with 1

hour lunch break)

Veterinarian 3:00 PM 7:00 PM 4 hours

All Rounder Staff 1 10:00 AM 3:00 PM 8 hours (with 1

hour lunch break)

All Rounder Staff 2 3:00 PM 7:00 PM 4 hours

Table 49. Work Schedule

● Number of Employees

Position Number

83
 General Manager 1

Veterinarian 1

Pet Trainers 2

All Rounder 2

Total 6
Table 50. Number of Employees
● Gantt Chart

FUR-FECT MATCH
PROJECT SCHEDULE
August
Project Start 9,2021

1 1 1 1 1 1 1 1 1 1 1
Month Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Onwards
31 30 31 30 31 31 28 31 30 31 30
FEASIBILITY
STUDY
BUILDING EQUITY
PROCESSING
LEGAL
DOCUMENTS
LEASING AND
RENOVATION
CANVASSING
PURCHASING &
INSTALLATION OF
EQUIPMENTS
PREPARATION OF
OPERATIONAL
MATERIALS
HIRING AND
TRAINING
PERSONNEL
PROMOTIONAL
CAMPAIGN
START OF
BUSINESS

84
OPERATION
Table 51. Gantt Chart

TASKS START DAYS END

FEASIBILITY STUDY 08/09/2021 128 12/15/2021

BUILDING EQUITY 12/16/2021 32 01/17/2022
PROCESSING LEGAL DOCUMENTS 01/18/2022 35 02/22/2022
LEASING AND RENOVATION 02/23/2022 15 03/10/2022
CANVASSING, PURCHASING & INSTALLATION
OF EQUIPMENTS 03/11/2022 30 04/10/2022
PREPARATION OF OPERATIONAL MATERIALS 04/11/2022 10 04/21/2022
HIRING AND TRAINING PERSONNEL 04/11/2022 30 05/11/2022
PROMOTIONAL CAMPAIGN 05/13/2022 1 05/14/2022
START OF BUSINESS OPERATION 05/15/2022
Table 52. Tasks for Gantt Chart

● Conduct of Feasibility Study

On the conduct of the feasibility study this is where fur-fect match started. It contains the different
aspects such as scio-economic, marketing, technical, and financial that are crucial in starting a new
business in the industry.

● Building of Equity
At this stage the proponents are going to prepare for the capital needed in starting the business.
The proponents will need to invest equal shares into the business.

● Processing of Legal Documents

This includes the processing of business permits, sanitary permits, and other permits and
documents needed in putting up a pet shop. The proponents will need to register the business in
respective government agencies to avoid legal problems in the future.

● Processing of Leasing and Renovation

It is all about the location of the pet shop wherein the proponents need to inquire and prepare for
the leasing and renovation of the business in the chosen location.

● Canvassing, Purchasing and Installation of Equipments

This includes the canvassing for the cheapest price but high quality equipment.

● Preparation of Operational Materials and Supplies

This includes all the furniture & fixtures, supplies and materials needed for the daily operation of
the business.

85
 ● Hiring and Training Personnel
This is all about the recruitment of manpower that are best suitable for the jobs. This will also
include basic training that will help them to be more equipped for the business to ensure that best
services are provided to customers.

● Promotional Campaign
In this stage the promotion of the business will start. Print media such as flyers will be distributed.
Sign boards will be posted on different areas in Baguio City.

● Start of Business Operation

Everything that is needed in conducting business operations are all settled in this stage. The
business is fully ready to operate and give the customers the best service the business can offer

G. Uniform of Employees

● Long Sleeve Polo and Trouser (General Manager)

For Male For Female

Figure 35. General Manager Uniform

Figure 35.1General Manager Uniform

86
● Scrub Suit (Pet Expert and Veterinarian)

Figure 36. Pet expert and veterinarian uniform

● Polo Shirt (Allrounder Staff)

Figure 37. All rounder staff uniform

87
 ● Name Plate

Figure 38. Name Plate

Uniform Cost Quantity Amount

Polo Shirt P 190 6 P 1, 140

Scrub Suit P 800 9 P 7, 200

Long Sleeve Polo and Trouser P 2, 000 3 P 6, 000

Name Plate P 50 6 P 300

Total P 14, 640

Table 53. Allowance for Uniform

88
 VI. ENVIRONMENTAL IMPACT ANALYSIS

The most important responsibility of business owners is to protect the environment, but businesses
cannot avoid causing pollution in a place where it’s sustained. As an organization, Fur-fect match
will see to it that environmental regulations are strictly being followed to mitigate pollution as
much as possible. The business will also take measures to help the environment by disposing its
garbage by segregating properly. The business will practice the environmental policies,
regulations, and guarantees to do its part to protect the environment.

The business will provide services such as pet dating, activities and boarding to pet owners. The
proposed location would be on the fourth floor of Casa Vallejo Building 2, Upper Session Road,
Baguio City..

● Construction

Noise Impact
There might be noise pollution during the construction of the space. It might cause some
disturbance to mall goers. However, this impact will be temporary.

Waste Disposal
Wastes produced during the construction of the space will be properly disposed of in order not to
harm the environment.

● Operation

Noise Impact
Since the business will cater for pets, mall goers might experience some noise due to (eg. dog
bark). It will be inevitable but we will make sure to minimize the noise as much as possible.

Waste Disposal
Cleanliness should be observed in the workplace to provide comfort to customers and workers. To
maintain cleanliness and discipline in waste disposal the business will properly segregate its waste.
There will be trash cans inside the shop for workers and customers to practice proper disposal of
garbage. Utilizing these wastes will prevent bacteria from spreading that can cause harm to people.

Air
To keep the space for the operation of the business odor free, air purifiers will be present. It will
help in filtering the air to remove unwanted smell that pets might cause and remove bacterias that
might cause sickness.

● People
The proposed project has no constituted risk on the health of individuals because the organization
is making sure that services are being rendered in an environmentally friendly manner and is
following the environmental regulations. The organization also provides a safe workplace for its
employees by providing the equipment and materials they will need in rendering services to
customers.

89
 ● Pets
The business will see to it that the needs of the pets will be catered while they are in our care. The
shop will be pet friendly and professionals will be hired to take good care of their needs.

Recommendations on most significant issues:

● Waste Management
Waste management is very important not only in the environment but also in the business, where
cleanliness can be seen in the workplace. To maintain cleanliness and discipline in waste disposal,
Fur-Fect Pet Dating Shop divides proper disposal into three, namely:

Biodegradable waste includes food waste from the customers while waiting, human waste, manure
or waste of pets, and others that came from an action of microorganism, or mineral origin.
Non-biodegradable, which is capable of being broken down or decomposed into smaller products
such as plastic cups, plastic bottles.
Recyclable waste can be recycled and used for other purposes such as papers, aluminum cans,
plastics, and many more.

Utilizing these wastes will prevent/avoid bacteria, viruses, or any waste that comes from the pet
that causes harm to human health. The cost of waste disposal of the shop is already included in the
rent which we depend on the policy of the mall since it is the place of our shop. These ways in
disposing of waste will help customers to see and know that within the business, there is cleanliness
which will give them a good impact and they will come over and over again.

● People’s Well-being
The business will make sure that all electronics equipment is safe to use. Electrical wirings are
properly hidden. All personnel must know how to use the fire extinguisher. It is also a must that
the employees know the proper exit and what to do if there’s unforeseen events (e.g. fire,
earthquake, explosion, strike). These practices will help to avoid and prevent accidents, losses
from happening.

The business promises to contribute to the sustainability of a healthy environment. The business
will follow all the regulations necessary for keeping the environment clean and safe to live with.
The organization will follow the proper way of segregating the garbage in accordance with the
city’s legislation and policies. Through this, the business can help a little and not add to the
problem of environmental challenges such as pollution (water, air, land).

90
 VII. FINANCIAL STUDY

Presentation of Major Assumptions

The following assumptions will be used as a basis for the future expenses and revenues of the
business.
A. Annual Operating Days
There will be 313 days of operation excluding special and regular holidays. The operating time of
the business is 9:00 am to 5:00 pm.
B. Annual Services
The business is expected to cater 30 maximum pets per day. A total of 9,390 pets per year. The
business will increase its service capacity by 5% every year (business is at 85% operational
capacity in the first year of operations).
C. Sales
The proponents decided that the services will be 100% sold on cash.
D. Cost of Revenue
The proponents assumed a 10% increase in cost of revenue considering that there is an increase of
services rendered every year.
E. Materials and Supplies
Materials and supplies are expected to increase in price by 4.4% based on the present inflation
rate. While 3% on the quantity.
F. Depreciation Expense
The depreciation expense for the depreciable assets will be computed using the straight line
method without salvage value. The assets mentioned are the machineries, equipment, furnitures
and fixtures where in its value depreciate over time.
G. Utilities Expense
Utilities will have a 2% increase inclusive of increases in price and usage.
H. Rent Expense
There would be a 5% increase in rent yearly as the business renews its contract.
I. Salaries Expense
The salaries of the employees will be given monthly and benefits like SSS, Philhealth and Pag-
ibig will also be administered. There would be an increase of 5% on the salary of the employees
starting on the 4th year operation of the business onwards.
J. Gains and Loses
The proponents will share the profits and losses equally. If there is profit, 20% of the profit will
be held for the operation of the business while 80% will be distributed equally to the partners.
K. Drawings
The business will allow the partners to withdraw Php.5,000.00 of their share in net income and
capital beginning if there is too much cash in the business.
L. Capital

91
There are 8 partners in the business. The investment of each partner is Php. 51,103.21. All the
capital needed and other operating expenses will be financed by the member’s contribution and
bank loans for the first 5 years.
M. Tax
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, signed on 26 March
2021 and is set to take effect on 11 April 2021, amends the Philippine corporate income tax and
incentives system in a bid to attract increased foreign investment and help the Philippine economy
recover from the COVID-19 pandemic. This Act provides that effective July 1, 2020, the corporate
income tax (CIT) rate is reduced from 30% to 20% for domestic corporations with net taxable
income not exceeding PHP5 million (US$100,000) and with total assets (excluding land where the
business entity's office, plant and equipment are situated) not exceeding PHP100 million (US$2
million). For this purpose, the term corporation includes general partnerships.
N. Uniform Allowance
An increase of 9% for the cost of uniform for the third year of operation of the business.

A. Summary of Project Cost

PROJECT
COST

92
ASSETS Note
Fixed Assets
Leasehold Improvement 1 35,761.00
Activity Equipments 2 22,344.48
Office Equipments 3 13,649.00
Furniture and Fixtures 4 76,425.00
Machineries 5 11,595.00
Total Fixed Asset 159,774.48
Current Assets
Sanitary and Cleaning Supplies 6 6,187.48
Office Supplies 7 3,474.50
Activity Supplies 8 14,279.70
First-Aid Supplies 9 341.00
Taxes and Licenses 10 1,000.00
Advertising Expense 11 12,800.00
Utilities Expense 12 3,799.00
Rent Expense 13 31,320.00
Salaries Expense 14 82,590.00
Employee Benefits Expense 15 12,881.78
Uniform Allowance 16 14,640.00
Total Current Asset 183,313.46
TOTAL PROJECT COST 343,087.94
Add: Contingency Funds 75,737.75
TOTAL INVESTMENT COST 418,825.69

B. Sources of Financing the Project

The business has a General Partnership type of organization since there are 8 partners in all which
will help each other out from starting the business until its day of operation. The contribution of
each partner will be based on the total investment cost which will be divided equally. Each partner

93
will be contributing a total of Php 51,103.21 personal investment in the capital of the business to
help in financing the necessary costs in starting the business.

94
 C. Projected Financial Statements

FUR-FECT MATCH
Projected Income Statement
For the year ended December 31, 2022
(in peso)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Pet Dating/Breeding Activities 931,175.00 1,088,804.00 1,273,117.00 1,488,630.00 1,740,626.00
Pet Recreational Activities 519,580.00 607,535.00 710,378.00 830,631.00 971,240.00

Pet Boarding 431,940.00 505,059.00 590,555.00 690,524.00 807,416.00

Total Revenue 1,882,695.00 2,201,398.00 2,574,050.00 3,009,785.00 3,519,282.00

Less: Sales Discounts All expenses are 10,000.00 11,000.00 12,100.00 13,310.00 14,640.00
formed part of
Net Revenue 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
assets upon the
establishment of
the project and
Cost of Service thus, no operating
profit/loss were
Pet Food Supplies recognized. 101,004.00 115,992.99 121,096.69 126,424.94 131,987.64

Activity Supplies 70,352.40 80,792.70 84,347.57 88,058.87 91,933.46

Total Cost of Services 171,356.40 196,785.69 205,444.26 214,483.81 223,921.10

Gross Margin 1,711,338.60 2,004,612.31 2,368,605.74 2,795,301.19 3,295,360.90

Operating Expenses
Salaries and Wages 1,128,761.78 1,128,761.78 1,128,761.78 1,184,555.78 1,184,555.78

Depreciation Expense 23,183.76 23,183.76 23,183.76 23,183.76 23,183.76

Supplies Expense 100,029.80 107,432.01 115,381.97 123,920.24 133,090.34

Advertising Expenses 2,800.00 2,975.00 3,166.00 3,374.00 3,601.00

Rent Expense 281,880.00 394,632.00 414,363.60 435,081.78 456,835.87

Utilities Expense 45,588.00 46,499.76 47,429.76 48,378.35 49,345.92

Other (Uniform Allowance) 14,640.00 - 15,957.60 - -

Total Operating Expenses 1,596,883.34 1,703,484.31 1,748,244.47 1,818,493.91 1,850,612.66

Operating Income 104,455.26 290,128.00 608,261.27 963,497.28 1,430,108.24

Other Income - - - - -

Income Before Tax 104,455.26 290,128.00 608,261.27 963,497.28 1,430,108.24

Taxes 20,891.05 58,025.60 121,652.25 192,699.46 286,021.65

Income After Tax 83,564.21 232,102.40 486,609.02 770,797.82 1,144,086.59

TAX COMPUTATIONS:
Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Cost of Service 1,300,118.18 1,325,547.47 1,334,206.04 1,399,039.59 1,408,476.88
Gross Margin 572,576.82 864,850.53 1,227,743.96 1,597,435.41 2,096,165.12
Allowable Deductions 468,121.56 574,722.53 619,482.69 633,938.13 666,056.88

96
Taxable income 104,455.26 290,128.00 608,261.27 963,497.28 1,430,108.24
RCIT rate 0.2 0.2 0.2 0.2 0.2
RCIT 20,891.05 58,025.60 121,652.25 192,699.46 286,021.65

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Income (taxation) 572,576.82 864,850.53 1,227,743.96 1,597,435.41 2,096,165.12
MCIT rate 0.01 0.01 0.01 0.01 0.01
MCIT 5,725.77 8,648.51 12,277.44 15,974.35 20,961.65

Year 1 Year 2 Year 3 Year 4 Year 5

Income tax payable (Higher) 20,891.05 58,025.60 121,652.25 192,699.46 286,021.65

**Gross Margin Percentage 31% 39% 48% 53% 60%

FUR-FECT MATCH
Projected Statement of Cash Flows
For the year ended December 31, 2022
(in peso)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow from Operating Activities
Receipts
Collections from Customers 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Payments
Payments to Supplier - 271,386.20 - 304,217.70 - 320,826.23 - 338,404.05 -357,011.44
-₱ -₱ -₱ -₱ -₱
Payments to Employees 1,128,761.78 1,128,761.78 1,128,761.78 1,184,555.78 1,184,555.78
For Income Tax - 20,891.05 - 58,025.60 - 121,652.25 - 192,699.46 - 286,021.65
Other Expenses Paid - 344,908.00 - 444,106.76 - 480,916.96 - 486,834.13 - 509,782.79

97
 -₱ -₱ -₱ -₱ -₱
Total Cash Payments 1,765,947.03 1,935,111.84 2,052,157.22 2,202,493.42 2,337,371.65
Net Cash Inflow(Outflow)Operating
Activities 106,747.97 255,286.16 509,792.78 793,981.58 1,167,270.35

Cash Flow from Investing Activities

Working Capital (first month) - 192,713.46 - - - - -
Business Registration/Permit Fees - 1,000.00 - - - - -
Store Construction Cost - 35,761.00 - - - - -
Purchase of Machines and Equipment - 47,588.48 - - - - -
Purchase of Furnitures and Fixtures - 76,425.00 - - - - -
Net Cash Outflow from Investing
Activities - 353,487.94 - - - - -

Net Cash Flow Before Financing - 353,487.94 106,747.97 255,286.16 509,792.78 793,981.58 1,167,270.35

Cash Flow from Financing Activities

Owner's Capital 408,825.68 - - - - -
Owner's Drawings - - - 480,000.00 - 480,000.00 - 480,000.00

Net Cash Inflow (Outflow) 55,337.74 106,747.97 255,286.16 29,792.78 313,981.58 687,270.35
Cash - Beginning Balance - 55,337.74 162,085.71 417,371.87 447,164.65 761,146.23
Ending Cash 55,337.74 162,085.71 417,371.87 447,164.65 761,146.23 1,448,416.58

98
 FUR-FECT MATCH ENTERPRISE
Projected Statement of Financial Position/ Balance Sheet
For the year ending December 31, 2022
(in peso)
Note Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets
Cash 55,337.74 162,085.71 417,371.87 447,164.65 761,146.23 1,448,416.58
Trade and Other Receivables - - - - - -
Prepaid Expenses 1 130,935.86 249,723.51 255,614.52 319,318.67 390,444.92 483,847.74
Total Current Assets 186,273.60 411,809.22 672,986.39 766,483.32 1,151,591.15 1,932,264.32

Noncurrent Assets
Machineries - net 2 11,595.00 9,662.50 7,729.50 5,797.00 3,864.50 1,932.00
Furnitures and Fixtures - net 3 76,425.80 63,687.50 50,950.00 38,212.50 25,475.00 12,737.50
Office Equipments - net 4 76,425.80 11,699.14 9,749.29 7,799.43 5,849.57 3,899.71

99
Activity Equipments - net 5 22,344.48 17,875.58 13,406.69 8,937.79 4,468.90 -
Leasehold Improvement - net 6 35,761.00 33,666.00 31,571.00 29,476.00 27,381.00 25,286.00
Total Non-current Assets 222,552.08 136,590.72 113,406.48 90,222.72 67,038.97 43,855.21
TOTAL ASSETS 408,825.68 548,399.94 786,392.87 856,706.04 1,218,630.12 1,976,119.53

LIABILITIES AND OWNER'S EQUITY

Liabilities
Current Liabilities
Accounts Payable 7 - 35,119.00 3,874.98 3,952.48 4,031.53 4,112.16
Current Tax Liability 8 - 20,891.05 58,025.60 121,652.25 192,699.46 286,021.65
Noncurrent Liabilities - - - - - -
Total Liabilities 56,010.05 61,900.58 125,604.73 196,730.99 290,133.81
Equity
Owner's Capital - Beg. 408,825.68 408,825.68 408,825.68 408,825.68 408,825.68 408,825.68
Income (net of withdrawals)* 83,564.21 315,666.61 322,275.63 613,073.45 1,277,160.04
Total Equity 408,825.68 492,389.89 724,492.29 731,101.31 1,021,899.13 1,685,985.72
TOTAL LIABILITIES AND
OWNER'S EQUITY 408,825.68 548,399.94 786,392.87 856,706.04 1,218,630.12 1,976,119.53

NOTES TO FINANCIAL STATEMENT (5 YEARS PROJECTION)

Note 1 - Prepaid Expenses

Prepaid Advertising Expenses 2,975.00 3,166.00 3,374.00 3,601.00 3,752.27
Supplies 246,748.51 252,448.52 315,944.67 386,843.92 483,847.74
Total 249,723.51 255,614.52 319,318.67 390,444.92 487,600.01

Note 2 - Machineries
Beginning Balance 11,595.00 9,662.50 7,730.00 5,797.50 3,865.00

100
Depreciation Expense 1,932.50 1,932.50 1,932.50 1,932.50 1,932.50
Machineries 9,662.50 7,730.00 5,797.50 3,865.00 1,932.50

Note 3 - Furnitures and Fixtures

Beginning balance 76,425.80 63,688.17 50,950.53 38,212.90 25,475.27
Depreciation Expense 12,737.63 12,737.63 12,737.63 12,737.63 12,737.63
Furnitures and Fixtures 63,688.17 50,950.53 38,212.90 25,475.27 12,737.63

Note 4 - Office Equipment

Beginning Balance 13,649.00 11,699.14 9,749.29 7,799.43 5,849.57
Depreciation Expense 1,949.86 1,949.86 1,949.86 1,949.86 1,949.86
Office Equipment 11,699.14 9,749.29 7,799.43 5,849.57 3,899.71

Note 5 - Activity Equipment

Beginning Balance 22,344.48 17,875.58 13,406.69 8,937.79 4,468.90
Depreciation Expense 4,468.90 4,468.90 4,468.90 4,468.90 4,468.90
Activity Equipment 17,875.58 13,406.68 8,937.79 4,468.89 0.00

Note 6 - Leasehold Improvements

Beginning Balance 35,761.00 33,666.00 31,571.00 29,476.00 27,381.00
Depreciation Expense 2,095.00 2,095.00 2,095.00 2,095.00 2,095.00
Leasehold improvements 33,666.00 31,571.00 29,476.00 27,381.00 25,286.00

Note 7 - Trade and Other Payables

Accrued Utilities 3,799.00 3,874.98 3,952.48 4,031.53 4,112.16
Rent Payable 31,320.00 32,886.00 34,530.30 36,256.82 38,069.66
Total 35,119.00 36,760.98 38,482.78 40,288.34 42,181.82

Note 8 - Current Tax Payable

101
 Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Cost of Service 1,308,099.96 1,333,529.25 1,342,187.82 1,407,021.37 1,416,458.66
Gross Margin 564,595.04 856,868.75 1,219,762.18 1,589,453.63 2,088,183.34
Allowable Deductions 468,121.56 574,722.53 619,482.69 633,938.13 666,056.88
Taxable income 96,473.48 282,146.22 600,279.49 955,515.50 1,422,126.46
RCIT rate 20% 20% 20% 20% 20%
RCIT 19,294.70 56,429.24 120,055.90 191,103.10 284,425.29

Gross Income (taxation) 564,595.04 856,868.75 1,219,762.18 1,589,453.63 2,088,183.34

MCIT rate 1% 1% 1% 1% 1%
MCIT 5,645.95 8,568.69 12,197.62 15,894.54 20,881.83

Income tax payable (Higher) 19,294.70 56,429.24 120,055.90 191,103.10 284,425.29

NOTES FOR PROJECT COST

Note 1: Leasehold Improvement

Particulars Quantity Unit Cost Total Cost
Grass Carpet 6 pieces 528 4224
Paint 8 liters 987 1974
Primer and Undercoat 7 liters 481 3367
Paint Brush Set 1 piece 165 165

102
Paint roller and tray set 3 pieces 110 330
Adhesive tape 4 pieces 208 383
Sand Paper (A4) 100 pieces 6.5 650
Plywood 10 pieces 680 6800
Kiln Dried Lumber 30 pieces 240 7200
Nails (1 ½, 3) 1 kilogram 275 275
Door Knob 2 pieces 200 400
Door Hinge 2 pieces 34 68
Wooden Door 1 pieces 1710 1710
Socket 7 pieces 255 1785
Inside Wooden Fence 2 set 1640 3280
3 Laborers (350/day) 3 days 1050/day 3150
Total Leasehold Improvement 35761

Note 2: Activity Equipments

Particulars Quantity Unit Cost Total Cost
Food and Water Dispensers 10 pieces 339 3,390.00
Trash Bins with Pedal 4 pieces 199 796
Infrared Thermometer with Stand
Holder and Sanitizer 1 set 1,134.00 1,134.00

Agility Equipment Set: Tunnel

Jump Ring
Jump Pole 1 set 4,957.00 4,957.00

103
Weave Pole

Collapsible Ball Pool 1 piece 1,047.00 1,047.00

Hurdle Cones 1 set 2,061.00 2,061.00
Mini Slide 1 piece 1,469.00 1,469.00
Tree Tower Climbing Frames 1 piece 2,269.00 2,269.00
Cat Scratcher Relaxing Stand 2 pieces 436 872
Scratch Pads with Catnips 2 pieces 293 586
Aro Agility Slalom 1 piece 1,803.48 1,803.48
Non-slip Cage Mats 20 pieces 49 980
Muzzles 10 pieces 76 760
Padlocks 2 pieces 110 220
Total Activity Equipment 22,344.48

Note 3: Office Equipments

Particulars Quantity Unit Cost Total Cost
Computer Set 1 set 6,868.00 6,868.00
Telephone and Wifi Router Package 1 set 1,899.00 1,899.00
Printer 1 piece 4,882.00 4,882.00
Total Office Equipment 13,649.00

Note 4: Furniture and Fixtures

104
Particulars Quantity Unit Cost Total Cost
Cage Banks 5 sets 4,966.00 24,830.00
Office Table 1 piece 3,013.80 3,013.80
Swivel Chair 1 piece 999 999
Reception Table 1 piece 13,024.00 13,024.00
L Shape Sofa Set 1 set 7,500.00 7,500.00
Tables 3 pieces 3,451.00 10,353.00
Shelves 4 pieces 2264 9,056.00
Cabinets 3 pieces 2,550.00 7,650.00
Total Furniture and Fixture 76,425.80

Note 5: Machineries
Particulars Quantity Unit Cost Total Cost
Cash register 1 5,231.00 5,231.00
Air Filters/Purifiers 2 3,182.00 6,364.00
Total Machineries 11,595.00

Note 6: Sanitary and Cleaning

Supplies
Particulars Quantity Unit Cost Total Cost
Litter Poop Scoopers 2 107.9 215.8
Litter Poop Brooms 2 285.54 571.08
Littering Sand 5 (10Lb pack) 468/pack 2,340.00

105
Spray Bottles 5 26 26
Pet-friendly Multi-purpose Surface
Cleaners 2 gal 476.30/gal 952.6
Flea Preventative 1 set 500/set 500
Stain and Odor Remover 1 gal 358/gal 358
Floor Mop 1 (set) 250 250
Cleaning Rags 2 set (15 pcs/set) 43/15pcs 86
Broom and Dustpan Set 2 (set) 300 600
100 pc M-sized
Garbage Bags bags (set) 288/set 288
Total Sanitary and Cleaning Supplies 6187.48

Note 7: Office Supplies

Particulars Quantity Unit Cost Total Cost
1 set (1 ream
each of A4, long,
Bond Papers and short) 474/set 474
Printer Inks 1 set (4 color) 463.50/set 463.5
Log book/Record Book 1 99 99
Thermal Papers 1 set (10 pcs) 474/set 474
Pens 2 dozen 83/dozen 166
Markers 2 dozen 125/dozen 250
Clips and Binders, 1 set 99/set 99

106
Stapler and Staple Wires 2 set 98/set 196
1 set (office tape,
masking,
packaging at 2pc,
Tapes and Adhesives 10m each) 89/set 89
Organizers 1 464 464
Fluorescent Bulbs 5 140 700
Total Office Supplies 3474.5

Note 8: Activity Supplies

Particulars Quantity Unit Cost Total Cost
Pet Simulation Toys 20 pcs (set) P474/set 474
Swim Balls 1000 pcs P464/set of 100 4,640.00
Drying Towels 1 dozen P499.70/dozen 499.7
Disposable Gloves 100 pcs P249/100pc 249
Dog Food 3 sack (20kg) P995/sack 2,985.00
Cat Food 3 sack (20kg) P1,464/sack 4,392.00
Assorted Pet treats 5 packs (4kg) P208/pack 1,040.00
Total Activity Supplies 14279.7

Note 9: First-Aid Supplies

Particulars Quantity Unit Cost Total Cost
Sterile gauze pads 1 set P88/set 88

107
Bandages and Tapes 2 pcs P30/pc 60
1 set (antibiotic
Antibiotic Ointments/ ointment and
Disinfectants antiseptic) P193/set 193
Total First-Aid Supplies 341

Note 10:Taxes and Licenses

Particulars Cost
Business Permit (City/Municipality 500
BIR Registration 500
Total Taxes and Licenses 1000

Note 11: Advertising Expense

Particulars Total Cost
Flyers 500
Poster 800
Sign Board 1500
Promotional Discounts 10,000
Social Media 0
Total Advertising Expense 12800

Note 12: Utilities Expense

108
Particulars Total Cost
Electricity Bill 1,000.00
Water Bill 900

Telecommunication 1899
Total Utilities Expense 3,799.00

Note 13: Rent Expense

Total Rent for Year 1 31,320.00

Note 14: Salaries Expense

Hourly Rate Daily Rate MonthlyCompensation
General Manager 130.72 1,045.77 27,190.00
Veterinarian 120.19 961.52 25,000.00
Pet Expert 96.15 769.23 20,000.00
All-rounder Staff 50 400 20,800.00
Total Salaries and Expense 92,990.00

Note 15: Employees Benefit Expense

Position SSS Philhealth Pag-ibig Totals
General Manager 2,155.00 475.83 100 2,730.83
Veterinarian 2,155.00 343.75 100 2,598.75

109
Pet Expert 3,460.00 700 200 4,360.00
All-Rounder Staff 2,485.00 507.2 200 3,192.20
Total Employees Benefit Expense 12,881.78

Note 16: Uniform Allowance

Uniform Quantity Unit Cost Total Cost
Polo Shirt 6 190 1,140.00
Scrub Suit 9 800 7,200.00
Long Sleeve Polo and Trouser 3 2,000.00 6,000.00
Name Plate 6 50 300
Total Uniform Allowance Expense 14,640.00

DEPRECIATION SCHEDULES

Machineries
Accumulated
Year Particulars Depreciation Depreciation Carrying Amount
Acquisition Cost 11,595.00
1 Depreciation for first year 1,932.50 1,932.50 9,662.50
2 Depreciation for secod year 1,932.50 3,865.00 7,730.00
3 Depreciation for third year 1,932.50 5,797.50 5,797.50
4 Depreciation for fourth year 1,932.50 7,730.00 3,865.00
5 Depreciation for fifth year 1,932.50 9,662.50 1,932.50
9,662.50

110
Furnitures and Fixtures
Accumulated
Year Particulars Depreciation Depreciation Carrying Amount
Acquisition Cost 76,425.00
1 Depreciation for first year 12,737.50 12,737.50 63,687.50
2 Depreciation for second year 12,737.50 25,475.00 50,950.00
3 Depreciation for third year 12,737.50 38,212.50 38,212.50
4 Depreciation for fourth year 12,737.50 50,950.00 25,475.00
5 Depreciation for fifth year 12,737.50 63,687.50 12,737.50
63,687.50

Office Equipment
Accumulated
Year Particulars Depreciation Depreciation Carrying Amount
Acquisition Cost 13,649.00
1 Depreciation for first year 1,949.86 1,949.86 11,699.14
2 Depreciation for secondyear 1,949.86 3,899.71 9,749.29
3 Depreciation for third year 1,949.86 5,849.57 7,799.43
4 Depreciation for fourth year 1,949.86 7,799.43 5,849.57
5 Depreciation for fifth year 1,949.86 9,749.29 3,899.71
9,749.29

Activity equipment
Accumulated
Year Particulars Depreciation Depreciation Carrying Amount
Acquisition Cost 22,344.48
1 Depreciation for first year 4,468.90 17,875.58
2 Depreciation for secondyear 4,468.90 8,937.79 13,406.69
3 Depreciation for third year 4,468.90 13,406.69 8,937.79

111
 4 Depreciation for fourth year 4,468.90 17,875.58 4,468.90
5 Depreciation for fifth year 4,468.90 22,344.48 -
22,344.48

Leasehold Improvement
Accumulated
Year Particulars Depreciation Depreciation Carrying Amount
Acquisition Cost 35,761.00
1 Depreciation for first year 2,095.00 2,095.00 33,666.00
2 Depreciation for secondyear 2,095.00 4,190.00 31,571.00
3 Depreciation for third year 2,095.00 6,285.00 29,476.00
4 Depreciation for fourth year 2,095.00 8,380.00 23,318.00
5 Depreciation for fifth year 2,095.00 10,475.00 20,950.00
10,475.00

Annual Total Depreciation 23,183.76

112
 D. FINANCIAL ANALYSIS

Year 1 Year 2 Year 3 Year 4 Year 5

1. Liquidity
a. Current Ratio
Current Assets 411,809.22 672,986.39 766,483.32 1,151,591.15 1,932,264.32
Current Liabilities 56,010.05 61,900.58 125,604.73 196,730.99 290,133.81
Total 7.35 10.87 6.10 5.85 6.66

The current ratio measures the ability of a business to pay its short term obligation as they fall due and seen on the presented data.
It is high in value and this bodes well with the business because it means that it can pay its short term obligations properly and on
time as they have the assets to do so. In year 1 the current ratio falls to 7.35 ratio which means that the business has 7 times more
current assets than current liabilities.

b. Quick or Acid-test Ratio

Current Assets - Inventories 411,809.22 672,986.39 766,483.32 1,151,591.15 1,932,264.32
Current Liabilities 56,010.05 61,900.58 125,604.73 196,730.99 290,133.81
Total 7.35 10.87 6.10 5.85 6.66

The acid test ratio indicates whether or not a business has sufficient short term assets to cover its short term liabilities. As seen on
the data from first year to fifth year of business operation which means that the business can cover current liabilities with its
assets. The business has no known inventories which makes the ratio exactly the same with the current ratio.

2. Debt-service
a. Debt-to-net worth ratio
Total Liabilities 56,010.05 61,900.58 125,604.73 196,730.99 290,133.81
Total Equity 451,119.48 654,340.22 646,403.19 902,205.25 1,469,454.62

113
Total 0.12 0.09 0.19 0.22 0.20

The debt-to-net worth ratio is used to measure how much of a company’s assets are financed by debt. The company has no long
term financial debt but is encouraged to present value based on its current liabilities to address other possible leveraging concerns.

b. Total capitalization ratio

Total Liabilities 56,010.05 61,900.58 125,604.73 196,730.99 290,133.81
Long-term Liabilities and Equities 492,389.89 724,492.29 731,101.31 1,021,899.13 1,685,985.72
Total 0.11 0.09 0.17 0.19 0.17

The total capitalization ratio is a solvency measure that shows the proportion of debt a business uses to finance its asset. The
company has no long term financial debt but is encouraged to present value based on its current liabilities to address other possible
leveraging concerns. The business has very low risk for insolvency.

3. Profitability
a. Profit Margin
Net Income after tax 83,564.21 232,102.40 486,609.02 770,797.82 1,144,086.59
Sales 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Total 4% 11% 19% 26% 33%

The net profit margin measures the profitability of a business. The net profit of the business’s first year of operation is 4% which
is very low but it is because the business is still starting and the business is unable to maximize its capacities yet. In the second
year of operation the net profit increases to 11%. Though from the third year to fifth year of operation the net profit relatively
increases.

b. Operating Profit Margin

Operating Income (EBIT) 104,455.26 290,128.00 608,261.27 963,497.28 1,430,108.24
Sales 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Total 6% 13% 24% 32% 41%

114
The operating profit margin reflects the percentage of profit a business produces from its operation. In the first year, since the
business is still starting the operating margin is not that high, it only reaches 6%. Though in the second year it more than doubles
to 13% percent, and continuously increases for the succeeding years of operation.

c. Gross Profit Margin

Gross Margin 572,576.82 864,850.53 1,227,743.96 1,597,435.41 2,096,165.12
Sales 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Total 31% 39% 48% 53% 60%

The gross profit margin indicates a company’s financial health. It tells investors how much gross profit every peso of revenue the
business is earning. The business shows an acceptable gross margin rate of 31% for the first year of its operations which positively
increases throughout the succeeding years of operations.

d. Return on owner's investment

Net Income 83,564.21 232,102.40 486,609.02 770,797.82 1,144,086.59
Stock Equity 451,119.48 654,340.22 646,403.19 902,205.25 1,469,454.62
Total 19% 35% 75% 85% 128%

The return on the owner's investment is a measure used to evaluate the efficiency of the profitability on the owner's investment.
With the data presented wherein owner's return on investment are increasing from the first year to fifth year of the business
operation we can say that the owner’s will be able to earn back their investments at a rate that is higher than other alternative
investments.

e. Return on net operating profit

Profit before interest and taxes 104,455.26 290,128.00 608,261.27 963,497.28 1,430,108.24
Total tangible assets 548,399.94 786,392.87 856,706.04 1,218,630.12 1,976,119.53
Total 19% 37% 71% 79% 72%

115
The return on net operating profit evaluates the business’s performance. Again, since the business is still starting, the percentage
of the return is at 19% but a dramatic increase in such a figure is foreseen for the following years.

f. Asset turnover
Sales 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Total tangible assets 548,399.94 786,392.87 856,706.04 1,218,630.12 1,976,119.53
Total 3.41 2.79 2.99 2.46 1.77

The asset turnover ratio measures the efficiency of a business’s assets in generating revenue or sales. An asset turnover of 2.5 is
considered good. In the first year to third year of operation, the turnover of assets is considered good. But in the fourth and especially
fifth year of operation the ratio is not favorable for the business. This means assets may be inefficiently utilized in generating total
sales which the business must specifically take into account and prepare considerable action plans for.

g. Return on assets, or earning power

Net income 83,564.21 232,102.40 486,609.02 770,797.82 1,144,086.59
Total tangible assets 548,399.94 786,392.87 856,706.04 1,218,630.12 1,976,119.53
Total 15% 30% 57% 63% 58%

The return on asset is a measure of how efficiently a firm utilizes its assets. As presented on the data above there’s a high return on
assets except for the first year of operations since the business is still starting. This means that the business will be able to utilize
all its assets properly in terms of making profits. Even if the return on assets declines in the fifth year, assets will still be utilized
properly because the percentage is still fairly high.

4. Funds-flow analysis
Operating Profit Margin 6% 13% 24% 32% 41%
Total Asset Turnover 3.41 2.79 2.99 2.46 1.77
Fixed Asset Turnover 13.71 19.31 28.40 44.70 79.91
Return on Equity 19% 35% 75% 85% 128%
Inventory Turnover - - - - -

116
The above summarizes some important figures of the previous items discussed, showing the efficiency of the entity in utilizing its starting
funds as well as the sustainability of the business project.

5. Operating leverage
a. Break-even volume analysis
Fixed costs 363,451.76 478,290.52 500,243.12 523,327.89 547,606.55
Selling price - variable cost/unit 70.36 94.88 120.27 139.72 163.70
Total (in units) 5165.72 5040.89 4159.24 3745.51 3345.20
The break-even volume analysis determines the sales volume a business needs to start making a profit. In the first year of operations,
we need to render a total of 5,166 services in order to cover the cost of services. Costs are increasing as the business continues
but the business is eyeing efficient commitments with its partners to increase cost-savings, which is why the break-even volume
decreases yearly.

b. Break-even cash analysis

Cash fixed costs 363,451.76 478,290.52 500,243.12 523,327.89 547,606.55
Gross Ratio 0.31 0.39 0.48 0.53 0.60
Total 1,188,721.36 1,211,361.46 1,043,864.10 981,660.31 915,559.98

The break even cash analysis shows a business’s minimum amount of revenue that is required to provide the business with positive
cash flow. The business needs to target a minimum of Php 1,188,721 for its first year of operations but is expected to decline in the
succeeding years in line with the decreasing break-even volume.

c. Break-even selling price analysis

Variable costs+ fixed costs ₱ 1,768,239.74 ₱ 1,900,270.00 ₱ 1,953,688.73 ₱ 2,032,977.72 ₱ 2,074,533.76
Unit volume 8,138 9,115 10,208 11,433 12,805
Average Break-Even Price ₱ 217.28 ₱ 208.48 ₱ 191.39 ₱ 177.82 ₱ 162.01
other approach:
Total cost x Selling price ₱ 409,130,869.80 ₱ 458,969,929.11 ₱ 492,623,923.97 ₱ 535,223,045.43 ₱ 570,135,300.94
Sales 1,872,695.00 2,190,398.00 2,561,950.00 2,996,475.00 3,504,642.00
Average Break-Even Price ₱ 218.47 ₱ 209.54 ₱ 192.28 ₱ 178.62 ₱ 162.68

117
The break-even selling price tells the minimum price a business should put on their product or service. As shown on the data, as
the years pass by, the business’s break-even price decreases, which could imply that the market growth may bring an increase in
the transaction volume of the entity and so price may be lowered to encourage patronage. But these figures are still for assessment
due to other forces that the entity could not control such as inflation rates which may increase costs to cover as well which will
affect pricing strategies of the entity.
a. Payback period in years
Annual Cash Flow Cumulative Cash Flow
year 0 -₱ 408,825.68 -₱ 408,825.68
year 1 106,747.97 - 302,077.71 1.00
year 2 255,286.16 - 46,791.55 1.00
year 3 509,792.78 463,001.23 0.09
year 4 793,981.58 1,256,982.81
year 5 ₱ 1,167,270.35 ₱ 2,424,253.16
Payback period 2.09

**The above figure will be further discussed under the following topic.

E. Decision Criteria

Cash Flows for the Year -₱ 408,825.68 ₱ 106,747.97 ₱ 255,286.16 ₱ 509,792.78 ₱ 793,981.58 ₱ 1,167,270.35
TOTAL ₱ 2,424,253.16

A. Payback Period

118
 The payback period of this project is 2.09 years which is less than the expected payback period of the business, which is at least
3 years. The investment of this project is desirable since it will be recovered in the early of expected period.
Computation:

Payback period Annual Cash Flow Cumulative Cash Flow

year 0 -₱ 408,825.68 -₱ 408,825.68
year 1 ₱ 106,747.97 -₱ 302,077.71 1.00
year 2 ₱ 255,286.16 -₱ 46,791.55 1.00
year 3 ₱ 509,792.78 ₱ 463,001.23 0.09
year 4 ₱ 793,981.58 ₱ 1,256,982.81
year 5 ₱ 1,167,270.35 ₱ 2,424,253.16
Payback period 2.09

B. Net Present Value

The proponents also looked into the net present value of cash flows of the project considering a 5-year time frame period. Using
a 15% required return which was provided on the basis of the current acceptable return on investment rate (ROI) for “good” long
term market investments (Speights, October 2021), the proponents have computed (through excel) the net present value of the
project at Php. 1,205,282.27.

Computation:

NPV of Cash Flows = total cash flows/(1+Required Rate Of Return)^n

₱ 2,424,253.16
(1+0.15)^5
= ₱ 1,205,282.27

C. Internal Rate of Return

119
 Also using excel functions, the computed internal rate of return of Fur-Fect Match Pet Dating Shop is at 73% over a five-year
time span.

Computation:
Present Value of Cash Flows -₱ 408,825.68 ₱ 61,674.64 ₱ 85,216.03 ₱ 98,318.38 ₱ 88,470.50 ₱ 75,146.12
IRR (excel generated formula) 73%

D. Cost-Benefit Analysis
The proponents calculated the present value of the project considering a 5-year period time frame and using a 15% required
return. The sum of present value from year 1 to 5 is divided by the initial investment, which resulted in a 3.53 profitability index.

Computation:

Present Value of Future Cash Flows ₱ 1,205,282.27

Profitability Index 2.948156957

Measurement Decision Criteria Value of Project Recommendation

Criteria
Payback Period Lesser than the required by the investor 2 years and 2 months Pursue the project
Net Present Value Greater than or equal to zero Php.1,205,282.27 Pursue the project
Internal Rate of Greater than or equal to the prevailing rate 73% Pursue the project
Return of Treasury Bills
If the ratio is greater than or equal to one 2.9 Pursue the project
Cost-Benefit Analysis the project is accepted and rejected if the
index is zero or less than one.
Table 54. Measurement Criteria

F. Sensitivity Analysis

120
The table below shows the following values of certain aspects in year 1 needed in making the sensitivity analysis. The following aspects
are: revenue from the three different services offered by the business and the expenses which will be incurred when the business will be
established and starts to operate. The following values are categorized into fixed and variable costs.

Revenue Fixed Cost Variable Cost

Pet Breeding Activities 931,175.00
Pet Recreational Activities 519,580.00
Pet Boarding 431,940.00
Total Revenue 1,882,695.00
Depreciation Expense 23,183.76
Salaries Expense 1,128,761.78
Supplies Expense 171,356.40
Promotional Materials 12,800.00
Rent Expense 281,880.00

Cleaning and Sanitary Expense 100,029.80

Utilities Expense 45,588.00
Total Operating Expense 1,492,213.54 271,386.20
Table 55.1. Sensitivity Analysis

The assumptions made in the table below is about the sales and variable costs having a decrease and increase by 20%. In computing for
the decrease, the original price is multiplied by 20% then the result is subtracted from the original price (Original Price - (Original
Price*20%)). While for the increase, the original price is multiplied by 20% then the result is added to the original price (Original Price
+ (Original Price*20%)). For classification purposes, salaries and wages are classified as fixed cost but for cost of service computation
purposes, the same item is added to arrive at the contribution margin (given that our business nature was a service-based entity) and thus
the item is in fact not considered an operating expense. For the break-even analysis, the formula for contribution margin is 1-(Variable
Cost / Total Revenue) and the break-even sales is Total Fixed Cost (excluding salary expenses which was considered part of the cost of
service)/ Contribution Margin.

121
 Pessimistic Expected Optimistic
20% Decrease Original Price (Annually) 20% Increase
Total Fixed Expenses 1,492,213.54 1,492,213.54 1,492,213.54
Variable Cost 217,108.96 271,386.20 325,663.44
Cost of Service 1,040,094.54 1,300,118.18 1,560,141.82

Gross Revenue 1,506,156.00 1,882,695.00 2,259,234.00

Break-Even Sales 950,977.08 1,188,721.36 1,426,465.63
Contribution Margin 458,061.46 572,576.82 687,092.18
Contribution Ratio 24% 31% 37%
Table 55.2. Sensitivity Analysis

With a 20% decrease in sales price/total sales, the entity may not be able to cover all its fixed expenses and may possibly sustain a loss
considering that the lion’s share of its services cost, salaries and wages, is in fact a fixed cost in nature and thus remains an obligation
for the entity. However, a 20% increase in sales price (even with an equal percentage increase in variable costs) would give the entity
a 37% contribution margin ratio which would cover all fixed operating expenses and thus give the entity a very good net profit.

122
G. Analysis of With and Without the Project
A. A new project

Figure 39. With or without new project analysis

The graph above shows the difference between having (with) a new project and having without a new project, where it works on the
benefits and other opportunities in pursuing this kind of business. The yellow color represents the level with a new project, while the
orange color is the level of without a new project. The blue color symbolizes the level of this project, and as you can see in the year one,
it is in the negative since this is where the business started so there are not many benefits and other operations, while in the succeeding
years you will see the changes of this project especially in benefits and profits. This explains how a company can gain new opportunities
to increase earnings and attract investors by developing a new project plan. The graph indicates that by investing in a new project,
investors will profit from the annual growth of their investment, as well as the earnings generated by the business.

123
 B. Rehabilitation/Modernization project

Figure 40. With or without modernization project

This graph will give the business an opportunity, proving that the more modern the project, the more competitive it will be in the market.
It stated that the business must improve its procedures and strategies on a yearly basis in order to remain competitive, since there are
many rivals in the field that may represent a risk to the company's success. The color blue symbolizes the level of the benefits of
modernization projects. In the first year, the availability of benefits and other opportunities is still low since it is still struggling with its
competitors, on the other hand, the succeeding years increase the possibility of its benefits because it has already known the movements
of the competitor. The color yellow shows level of benefits with a project, while the color orange shows the level of benefit without a

124
project, implying that if the project does not initiate progress, this will continue constant for the succeeding years and becomes a company
risk.

C. Loss Prevention Project

Figure 41. With or without loss prevention project

A risk refers to a possibility that a business’s target or objectives may not go as planned. Risk can be influenced by a lot of factors such
as rising prices, cost of materials and supplies, competition, and many more. The graph shows that having a project may reduce loss and
risk, and that the business will be able to overcome problems in the future.

125
This graph shows the trend that may have an impact on the business in terms of risks if they will not be handled in a timely manner. The
color blue indicates the level of the profits. The color yellow line indicates the profit the business will make, while the orange color
indicates the danger the business may face.

D. Improvement/Rehabilitation Project

Figure 42. With or without improvement project

The graph depicts the possible outcome if the business will not launch a project and if the business will create a new project to enhance
the company. The yellow color line symbolizes the outcome of the business if projects are to be made in order to develop the business.
Whereas the orange color line symbolizes the outcome if the business will not have a project to enhance the business operation.

126
VIII. RECOMMENDATION

The implementation of the Project: Fur-Fect Match Pet Dating Shop is recommended to be
feasible, where it will offer three services which are the Pet Activities, Pet Boarding and lastly Pet
Breeding as the main service. The population of customers and households that own pets
continually increase which will then give opportunity to the business to cater their needs. Finding
a mate for their beloved pets will be much easier and favorable because the customers will be the
one evaluating the possible candidates including their own preferences. The location of the
business is another advantage since it is located near the center of the city and sources of raw
materials would not be a problem because business establishments are scattered around. The
distribution of financial resources will be much easier since the business is a form of General
Partnership which means that all required capital and responsibilities will be divided equally
among the partners. In the operation of the business, management of waste disposal will be strictly
followed through proper segregation to ensure the cleanliness and safety of both customers and
pets. Necessary equipment will also be used in preventing the spreading of bacterias, and other
microorganisms that will cause harm in the environment. The project is recommended to be
pursued because even though it has many competitors the business has still unique service to offer
which will be the first one to establish a pet dating shop.

REFERENCES
Artificial insemination for Pet Breeding. American Kennel Club. (n.d.). Retrieved from
https://www.akc.org/register/information/artificial-insemination/.

Blaser, M. (2020, April 6). Pethood. THE POLLINATR. Retrieved from

https://www.thepollinatr.com/read/2020/4/6/pethood.

Ernst & Young LLP. (2021, April 1). Philippines enacts law reducing corporate income tax
rates and rationalizing fiscal incentivesE. Ernst & Young Tax News Update. Retrieved
from https://taxnews.ey.com/news/2021-0679-philippines-enacts-law-reducing-corporate-
income-tax-rates-and-rationalizing-fiscal-incentives.

Kestenbaum, R. (2018, November 27). The biggest trends in the pet industry. Forbes. Retrieved
2021, from https://www.forbes.com/sites/richardkestenbaum/2018/11/27/the-biggest-
trends-in-the-pet-industry/?sh=33833639f099.

Lim, A. (2021, October 14). Pet lifestyle: Philippine made, made for the world. Pawdel
Philippines. Retrieved from https://www.pawdel.com/ph/pet-lifestyle-philippine-made-
made-for-the-world/#:~:text=The%20pandemic-induced%20%E2%80%9CHomebody%2
0Economy,registered%20with%20PCCI%20at%2093%2C320.&text=A%20proof%
20again%20that%20pets,we%20think%20we%20influence%20them.

Quinain, A. (2018, May 18). Dog: Man's friend and servant. Philstar.com. Retrieved from
https://www.philstar.com/the-freeman/cebu-lifestyle/2018/05/19/1816672/dog-mans-
frien
d-and-servant.

REPUBLIC ACT NO. 10631: AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC

ACT NO. 8485, OTHERWISE KNOWN AS "THE ANIMAL WELFARE ACT OF 1998″.
The LawPhil Project. (n.d.). Retrieved from https://lawphil.net/statutes/repacts/
ra2013/ra_10631_2013.html.

Speights, K. (2021, March 17). What is a good return on investment? The Motley. Retrieved
from https://www.inv.com/investing/how-to-invest/stocks/good-return-on-investment/.

APPENDICES

128
SURVEY QUESTIONNAIRE

Dear Respondent:

Greetings! We, the signatory University of Baguio - School of Business Administration and
Accountancy students, would like to take a few minutes of your time to participate in this short
survey.

Fur-fect Match Pet Dating Shop is a business that offers unique and special services to you and
your pet's convenience. In partial fulfillment of the feasibility study entitled Fur-fect Match Pet
Dating Shop, we are tasked to float a survey that will help us, researchers, gather the needed data
that will enable us to proceed. Kindly take your time in answering the questionnaire, and your
participation is much appreciated.

Rest assured that the information gathered will remain confidential and will be used for educational
purposes only. Thank you and God Bless.

Respectfully,
Andrea Mae Ribac
(Group Leader)

All information and data collected in this registration are treated with strict confidentiality as per
the Data Privacy Act of 2012 (RA 10173) and will be used only for the purpose of this study. No
data information will be disclosed to third parties without your consent.

Data Privacy: I understand that my personal information is protected by RA 10173, Data Privacy
Act of 2012, and that I am required to provide truthful information.

Yes, I understand.

The description and objective of the Feasibility Study is well explained. I consent in providing true
and honest responses to the questions as follows.
Yes
No

DO YOU OWN A PET?

YES
NO

IF NO, DO YOU PLAN ON HAVING A PET IN THE FUTURE?

YES
NO

DO YOU / WOULD YOU FIND IT EASY TO LOOK FOR A POSSIBLE PARTNER FOR
YOUR PET?

129
 YES
NO

HOW OFTEN DO YOU / WOULD YOU BREED YOUR PET?

FOR MALE PETS

ONCE EVERY WEEK

ONCE EVERY MONTH
ONCE EVERY TWO MONTHS
ONCE EVERY FOUR MONTHS
ONCE A YEAR
OTHERS:

FOR FEMALE PETS

ONCE A YEAR
ONCE EVERY TWO YEARS
ONCE EVERY FOUR YEARS
OTHERS:

WHAT ARE THE FACTORS / WHAT WOULD BE THE FACTORS YOU WILL CONSIDER
IN CHOOSING THE PARTNER FOR YOUR PET? (SELECT ALL THAT APPLIES)

BREED
PRICE / RENT
PEDIGREE DOCUMENTATION
MATING ABILITY
BEHAVIOR OF THE PET
PCCI DOCUMENTS
OTHERS:

IF WE ARE TO OFFER A PET DATING SHOP WHERE IN WE CAN FIND A POTENTIAL

MATCH FOR YOUR DOG ACCORDING TO YOUR PREFERENCES, WOULD YOU
CONSIDER AVAILING FOR THE SERVICE?

YES
NO

ARE YOU WILLING TO SPEND PHP300 - PHP350 FOR THIS SERVICE?

YES
NO

130
DO YOU FIND IT / WOULD YOU FIND IT INCONVENIENT WHENEVER YOU SHOP /
HAVE AN APPOINTMENT AND YOU CAN’T BRING YOUR PET WITH YOU?
YES
NO

IF WE ARE TO OFFER A PET BOARDING WHEREIN YOU CAN LEAVE YOUR PET
WITH US WHILE YOU SHOP OR DO YOUR ACTIVITIES, WILL YOU AVAIL OUR
SERVICE?

YES
NO

ARE YOU WILLING TO SPEND PHP150 FOR THIS SERVICE, WITH AN ADDITIONAL
CHARGE OF PHP 50 FOR EVERY SUCCEEDING HOURS?

YES
NO

DO YOU / WOULD YOU TAKE YOUR PET FOR ACTIVITIES?

YES
NO

IF YES, HOW OFTEN DO YOU / WOULD YOU TAKE YOUR DOG OUT FOR
ACTIVITIES?

ONCE EVERY WEEK

TWICE EVERY WEEK
ONCE EVERY MONTH
TWICE EVERY MONTH
OTHERS:

WHAT SPECIFIC ACTIVITIES DO YOU/WOULD YOU LIKE TO ENGAGE YOUR PET

INTO? (select all that apply)

SCAVENGER HUNT
FETCH
COURSE
BALL POOL
OTHERS (SPECIFY):

IF WE ARE TO OFFER A PET DATING SHOP WHEREIN YOUR PETS CAN ENJOY
ACTIVITIES WITH YOU, WOULD YOU CONSIDER TAKING YOUR PET IN OUR SHOP?

131
 YES
NO

ARE YOU WILLING TO SPEND PHP200 FOR THIS SERVICE, WITH AN ADDITIONAL
CHARGE OF PHP50 EVERY SUCCEEDING HOURS?

YES
NO

SURVEY RESULTS

132
133
134
135
136
137
CURRICULUM VITAE

138
NICOLE KATE BASILIO LABNAS
nicolekatelabnas.23@gmail.com
MD 185 Balite, Longlong, Puguis, La Trinidad, Benguet

PERSONAL INFORMATION

Date of Birth February 23, 2000

Place of Birth Baguio City
Civil Status Single
Citizenship Filipino
Language Spoken Ilocano, Kankanaey, Filipino, English

EDUCATION

Tertiary Bachelor of Science in Business

Administration
Major in Financial Management
University of Baguio
June 2018 - Present

Secondary Senior High School

Accountancy and Business Management
Baguio City National High School
Year Graduated: 2018

Junior High School

Baguio City National High School
Year Graduated: 2016

Elementary Longlong Elementary School

Year Graduated: 2012

Kindergarten Pinsao Proper Day Care Center

Year Graduated: 2006

SEMINARS, TRAININGS AND, WORKSHOPS ATTENDED

University of Baguio, General Luna Road,
FOREX Trading for Beginners Webinar Baguio City
October 23, 2021

139
Career Path: Preparation for the Future of Work University of Baguio, General Luna Road,
Webinar Baguio City
September 18, 2021

University of Baguio, General Luna Road,

Customer Service and Telephone Etiquette Baguio City
June 29,2019

University of Baguio, General Luna Road,

2018 Entrep Summit Baguio Baguio City
September 22, 2018

140
 CURRICULUM VITAE

DIVINE JEWEL V. LAGARE

divineejewell@gmail.com
#227 Cresencia Village Baguio City

PERSONAL INFORMATION

Date of Birth December 18, 2000

Place of Birth Baguio City
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English,

EDUCATION
Tertiary Bachelor of Science in Business
Administration Major in Financial
Management
University of Baguio
August 2019-present

Secondary Senior High School

Easter College Inc.
STEM
August 2017 – May 2019

Junior High School

Baguio Central University
Grade 10
August 2016- May 2017

Guisad Valley National High School

Grade 7- 9
June 2013- April 2016

Elementary Bonifacio Elementary School

Grade 5- 6
June 2011- April 2013

141
 Easter College Inc
Grade 1-4
June 2007- April 2011

SEMINARS, TRAININGS AND, WORKSHOPS ATTENDED

National Entrepreneurship Summit University of Baguio, General Luna Rd.
2019 Baguio City
September 2019

Orientation and Research Schemes University of Baguio, General Luna Rd.

Baguio City
August 2021

142
 CURRICULUM VITAE

GEMMALYN A. MAMACLAY
Gemaclay06@gmail.com
Panique, San Juan, Cervantes, Ilocos Sur

PERSONAL INFORMATION

Date of Birth June 6, 2001

Place of Birth San Fernando, La Union
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English, Ilocano

EDUCATION
Tertiary Bachelor of Science in Business
Administration Major in Financial
Management
University of Baguio
August 2021-Present
Bachelor of Science in Accountancy
University of Baguio
August 2019-2021
Secondary Senior High School
University of Baguio
Accountancy and Business Management
August 2017 - May 2019

Junior High School

Cervantes National High School
June 2013- March 2017

Elementary San Juan Elementary School

June 2006 - March 2013

CURRICULUM VITAE

143
SHOUMEI LYNN Y. OCA
oca.shoumei@gmail.com
#36 Purok 15, Irisan, Baguio City 2600

PERSONAL INFORMATION

Date of Birth April 10, 2000

Place of Birth Baguio City
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English, Ilocano, Pangasinan

EDUCATION
Tertiary Bachelor of Science in Accountancy
University of Baguio
August 2018-Present

Secondary Senior High School

University of Baguio - Senior High School ABM
August 2016-May 2018

Junior High School

St. Philomena’s Academy
June 2012-April 2016

Elementary Malasin Elementary School

June 2006-April 2012

SEMINARS, TRAININGS AND, WORKSHOPS ATTENDED

National Entrepreneurship Summit 2019 University of Baguio, General Luna Rd. Baguio City
September 2019

National Accounting Summit University of Baguio, General Luna Rd. Baguio City
2019 June 2019

144
 CURRICULUM VITAE

CLARICE FAYE OSAY

Clariceosay21@gmail.com
#Ar013 Riverside Ambiong La Trinidad Benguet 2601

PERSONAL INFORMATION

Date of Birth February 21 1999

Place of Birth Ampucao Itogon Benguet
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English, Ilocano, Ibaloi

EDUCATION
Tertiary Bachelor of Science in Accountancy
University of Baguio
August 2018-Present

Secondary Senior High School

Baguio Central University - Senior High School ABM
Year Graduate: 2018

Junior High School

Baguio Central University
Year Graduated: 2016
Saint Louis School of Aurora Hill
2012-2014

Elementary Ambiong La Trinidad Elementary School

Year Graduated: 2012

CURRICULUM VITAE

145
ANA CHELSEA CORPUZ PRUDENCIO
chelseaprudencio98@gmail.com
Block 27 Lot 15 San Felipe St., Fiesta Communities San Rafael, Tarlac City

PERSONAL INFORMATION

Date of Birth September 30, 2001

Place of Birth Alcala, Pangasinan
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English, Ilocano, Kapampangan

EDUCATION
Tertiary Bachelor of Science in Business
Administration Major in Financial
Management
University of Baguio
August 2019 − Present

Secondary Senior High School

STI Tarlac
Tech-Voc
July 2017 − April 2019

Junior High School

Tarlac National High School
June 2016 − April 2017

Camiling Colleges
June 2015 – March 2016

Cipriano P. Primicias National High School

June 2013 – March 2015

Elementary San Vicente Elementary School

June 2007 – March 2013

SEMINARS, TRAININGS AND, WORKSHOPS ATTENDED

146
Research Ethics, Tool Validation, and University of Baguio, General Luna Road
Reliability Baguio City
September 2021

R&DC’s Orientation of Its Policies, University of Baguio, General Luna Road

Procedures, Guidelines and Research Baguio City
Schemes August 2021

National Entrepreneurship Summit University of Baguio, General Luna Road

2019 Baguio City
September 2019

CURRICULUM VITAE

147
ANDREA MAE P. RIBAC
ribacandrea@gmail.com
OD 418 Banig Tawang, La Trinidad, Benguet

PERSONAL INFORMATION

Date of Birth January 30, 2001

Place of Birth La Trinidad, Benguet
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English, Ilocano

EDUCATION
Tertiary Bachelor of Science in Business
Administration Major in Financial
Management
University of Baguio
August 2019-Present

Secondary Senior High School

Baguio Central University
Accountancy and Business Management
August 2017 - May 2019

Junior High School

Saint Anthony’s Academy of Gonzaga
June 2013- March 2014
Pinget Elementary School
June 2014 - April 2017

Elementary Calayan Elementary School

June 2007 - March 2009
Balili Elementary School
June 2009 - March 2013

SEMINARS, TRAININGS AND, WORKSHOPS ATTENDED

National Entrepreneurship Summit University of Baguio, General Luna Rd.

2019 Baguio City
September 2019

148
ECOS Health and Wellness Webinar University of Baguio, General Luna Rd.
Baguio City
February 2021

Orientation and Research Schemes University of Baguio, General Luna Rd.

Baguio City
August 2021

Leadership Webinar University of Baguio, General Luna Rd.

Baguio City
November 2020

Understanding Stock Market: The University of Baguio, General Luna Rd.

Trading and Investing Baguio City
November 2021

149
 CURRICULUM VITAE

ELVIRA STA. MARIA YABUT

20170047@s.ubaguio.edu
Blk 19 Lot 11 Q.C. Ville TownHomes Brgy. Culiat,
Central Avenue Quezon City

PERSONAL INFORMATION

Date of Birth June 21, 2001

Place of Birth Baguio City
Civil Status Single
Citizenship Filipino
Languages Spoken Filipino, English

EDUCATION
Tertiary Bachelor of Science in Accountancy
University of Baguio
August 2019-Present

Secondary Senior High School

University of Baguio - Senior High School
ABM
August 2017-May 2019

Junior High School

Baguio City National High School
June 2013-April 2017

Elementary Emilio Aguinaldo Elementary School

June 2007-April 2013

SEMINARS, TRAININGS AND, WORKSHOPS ATTENDED

National Entrepreneurship Summit University of Baguio, General Luna Rd.
2019 Baguio City
September 2019

150