Source of Budget

The source of the budget that shall cover all the expenses

from the constructions of the MATOF Coffee Shop up to its

operations shall be from the partnership basis as agreed upon by

both parties. It will be a fifty-fifty basis.

Fifty percent (50%) of the total budget will be from the

personal money and account of the first partner and the

remaining fifty percent (50%) will be from the personal money

and account also of the other partner in this business.

 A. Planning Costs

Estimates for planning costs have to be determined separately. The

estimated pay for the contractor is 3,000 per square meter and 6,000

per square meter

For the architects. The Planning members of members of the planning

team can be estimated at 5% and the land costs are not included when

determining this estimate.

VI. A. Operating Capital

a. Cash on hand

The cash that will be handling by the cashier is P100, 000 which

will be used in the transaction of our establishment. And this will

also be used for any kinds of expenses.

B. Cash on Deposit

This includes for funds to meet the current payrolls, tools,

equipment and utility bills.

a. Payrolls

The Salary of each employee will be given every 15th and 30th of

each month. The compensation of all employees of MATOF

Coffee Shop is shown in this table.

V.FINANCIAL ASPECTS

A. Land and construction Cost Estimate

There are a lot of factors that we need to consider in

estimating the cost

Of a particular building. Basically there are three important

categories of expenditure involved and the resources must be

listed in an hierarchal order. It includes the cost of the land, cost

of the building and lastly the cost of the labor.

The payment for the cost of the land will be divided into

two. Payment for the first down is 20% so the total cost would be

P 180,000.00 and the remaining 80% will be pay as an

installment which cost P 60,000.00 monthly for one year. The

second account would be for the building materials. It includes

the following: tiles, steel, bricks, cement window glass and other

equipment used in the process of construction.

The final estimating will goes to the incurred labor which is

about 30% of the total cost.

 TABLE 1-1 is the list of cost needed for land and constructing our

building.

Permit
This is a one thing that we should follow to be able to start a one business.

This is a step to have a permit and to register a business:

*Register your name at Bureau of Department of Trade and Industry

*If the business is solely own partnership; DTI corporate-SEC

*Philippine Patent Office; Patented

-nobody can use their own logos.

*Register to BIR – (Bureau of Internal Revenue)

-to pay tax

*Register to SSS – (Social Security System)

*DOLE – Department Of Labor and Employment

*Engineering Department

-annual electrical fee

-sign board fee

-Building inspection fee

-mechanical fee

*Fire Department

-pay for annual fire fee

-storage fee

*Health Department
 -for sanitary inspection

*Office of Traffic Bureau

-parking area

*Mayors Permit