@Paller, Jr., T.

2021Sample Business Plan

Business
Plan

Submitted to:
TORIBIO E. PALLER JR.
Subject Teacher- Entrepreneurship

CYRANE TERESA A. RELLAP

OLLA E. LAPREL
ROMEO A. PADULLO
EVA R. ROLA
NELIE E. NAVIDAD
GENELYN G. ABUG

Congressional Integrated Highschool-Senior

Highschool
Via Verde Village, San Agustin II

202
Dasmarinas City, Cavite

Tel: 650.555.2021
Email: Clije@yahoo.com

VERSION
04/30/2021

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 @Paller, Jr., T.2021Sample Business Plan

Legal Page

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Charong ni Coreng in
this business plan is confidential; therefore, reader agrees not to disclose it without the
express written permission of CYRANE TERESA A. RELLAP, OLLA E. LAPREL, ROMEO A.
PADULLO, EVA R. ROLA, NELIE E. NAVIDAD, GENELYN G. ABUG.

It is acknowledged by reader that information to be furnished in this business plan is in all

respects confidential in nature, other than information which is in the public domain through
other means and that any disclosure or use of same by reader, may cause serious harm or
damage to Charong ni Coreng.

Upon request, this document is to be immediately returned to CYRANE TERESA A. RELLAP,

OLLA E. LAPREL, ROMEO A. PADULLO, EVA R. ROLA, NELIE E. NAVIDAD, GENELYN G. ABUG

TORIBIO E. PALLER JR.

May 12, 2021

This is a business plan. It does not imply an offering of securities.

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Table of Contents

1.0 Executive Summary...................................................................................................1

1.1 Objectives.................................................................................................................1
1.2 Mission.........................................................................................................................1
1.3 Keys to Success.........................................................................................................1
2.0 Company Description................................................................................................1
3.0 Market Analysis Summary..........................................................................................2
3.1 Market Segmentation.................................................................................................2
Table: Market Analysis........................................................................................................2
3.2 Competitive Analysis..................................................................................................3
4.0 Marketing and Sales Strategy.........................................................................................4
4.1 Milestones.................................................................................................................4
Table: Milestones................................................................................................................4
5.0 Management Summary..................................................................................................5
5.1 Organizational Chart..................................................................................................5
Figure: Organizational Chart.............................................................................................6
5.2 Personnel Plan...........................................................................................................6
Table: Personnel.................................................................................................................7
6.0 Financial Plan................................................................................................................7
6.1 Markup......................................................................................................................7
Table: Mark-up, Selling Price and Mark-up Rate.................................................................7
6.2 Projected Profit and Loss............................................................................................7
Table: Profit or Loss.........................................................................................................8
6.3 Cash Flow..................................................................................................................8
Table: Cash Flow.............................................................................................................9
Table: Projected Cash Flows April 1, -June 30, 2021........................................................10
6.4 Projected Balance Sheet...........................................................................................10
Table: Projected Balance Sheet..........................................................................................11
7.0 Contingency Plan.........................................................................................................11
Appendix.......................................................................................................................13

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1.0 Executive Summary

Charong ni Coreng is a general partnership small business formed on March 22, 2021. Charong ni
Coreng will at first be a home-based start-up and serving customers in the locality of Dasmarinas
area. After this Corona Virus pandemic as planned, we will move into a leased space. As sales
increase, we will hire additional personnel.

Not everyone eats to live; there are many who live to eat. They want to know what is going into
their tummies, if it appeals to their taste buds, why they should eat it, and so on. Charong ni
Coreng provides opportunity to sell variety of chicharron which is delicious, crispy, and affordable to
satisfy customer’s needs.

Charong ni Coreng will offer variety of delicious chicharron that will surely satisfy the taste buds of
the customers in a very affordable price. Charong ni Coreng has decided to focus mainly on the
small business market. The owners will offer an affordable, on-demand service for customers who
are chicharron lovers and customers who aggressively needs chicharron instantly.

1.1 Objectives

1. To provide variety of delicious chicharron at an affordable price.

2. Constant growth in sales for 25%.
3. To generate 50-60% of net profit.
4. To generate customer satisfaction so that at least 40% of our customer base is repeat
business.
5. Increase the number of customers buying from Charong ni Coreng by 10% over five years.

1.2 Mission

Our goal is to provide variety of chicharron at affordable price with customers 100% satisfaction on
the product. Our customers will always receive one-on-one personal attention and very affordable
price of chicharron. Our customers will receive the highest quality and variety of chicharron product.
As the business grow over the year, our employees will receive extensive training, a great place to
work, fair pay and benefits, and incentives to use their own good judgement to solve customers'
problems.

1.3 Keys to Success

 Establishing a variety of chicharron product which is recognized in the market. 

 Responsiveness: fast response time.
 Quality: offering variety of chicharron at affordable price.
 Relationships: developing loyal customers.

2.0 Company Description

Charong ni Coreng is a general partnership small business formed on March 22, 2021. Charong ni
Coreng will at first be a home-based start-up and serving customers in the local Dasmarinas area.

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Charong ni Coreng will grow in one year from six-person, home-based profitable business. We will
acquire necessary trainings and production skills to respond to customers’ chicharron needs quickly,
friendly at affordable price.

3.0 Market Analysis Summary

Filipinos are always known to be adventurous in food. Chicharron is something scary and weird a
meal, but for those aggressive customers who craves for it, it is guaranteed savored. It is crispy,
flowered shaped and delicious to one you get past to the thought of its ingredient, this Filipino
appetizer will blow your mind. You never know, you might be craving for it after the first bite. To
increase our market penetration, an aggressive marketing campaign will be done to via social media
sites, creating blog during the store hours.

3.1 Market Segmentation

Customer A

Customer A will provide most of our business revenue. The customer A market will be defined as
customers within the 15 km radius craving for chicharron and in need quicky response and
service on time. The portion of customer A we are targeting is growing at around 7% per
month.

Customer B

Customer B market has low income from Customer A. The customer B market will be defined
also as customers within the 15 km radius who badly needs chicharron instantly as “pulutan,
ulam, and others that will serve as their additional food for picnic and any other activities. This
group is growing slightly faster and the increasing demand for this market is about 7% per
month. The computed CAGR (Compound Annual Growth Rate) which shown on the table
presents the estimated market size of the business.

Table: Market Analysis

Market Analysis
Month 1 Month 2 Month 3 Month 4 Month
5
Potential Growth CAGR
Customers
Customer A 7% 400 428 458 490 560 6.96%
Customer B 7% 100 107 114 122 140 6.96%
Other 0% 0 0 0 0 0 0.00%
Total 7% 500 535 572 612 700 6.96%

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3.2 Competitive Analysis
Opportunities
 Social Trends
 Provide delicious
chicharron at
affordable price
 Demand of chicharron
around Dasmarinas
area
 Develop
entrepreneurship skills
 Offer delivery services
and take-out or
setting up a drive-
through to meet the
needs of the
customers
Threats
 Other Chicharron-
Kiosk
 Well-established
chicharron business
nearby
 Customer choice
 Potential rising price
of supplies needed in
the production.
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STRENGTHS
 Innovative chicharron
product at affordable
price
 Quality Service
 Personal Skill
(production, social
media etc.)
 Good relationship with
customers.
Food affordability, Quality
Service is our greatest
strength after we classified
that social trends and food
we offer as opportunities
Our Strategy is to develop
and produce more different
types of chicharron that can
be a trend.
We view other stalls as a
threat, as our strategy we
are offering affordable &
unique food accompanied w/
our quality service. We will
also be observant on our
competitors to be aware and
@Paller, Jr., T.2021Sample Business Plan
WEAKNESSES
 Time Management
 Preparation &
Production
 Competitors (well
established chicharron
businesses)
 not getting consistent
supplies that result in
menu items not being
available
Production is the Core of our
business. Our Production
Team has enough skills and
can handle time pressure.
With the help of social
media, it will be easier as we
engaged in different aspects
of social trends as we can
promote our product not just
in actual interaction.
We will be acquiring the rule
"DO NOW or NEVER" which
implies as a business we
need to do our very best to
conquer any unwanted
circumstances. It is all about
time management and
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 @Paller, Jr., T.2021Sample Business Plan

 Partners who will

make possible adjustments. corrective plan measures
create new chicharron
business
unexpectedly.

4.0 Marketing and Sales Strategy

Charong ni Coreng will seek to first create customer awareness regarding the offered variety of
chicharron, develop the customer base, and work toward building strong customer loyalty. Charong
ni Coreng will also create a blog to make sure that our chicharron gets some online visibility and
convert strangers into visitors and visitors into customers. Our toll-free number is operational 24
hours a day, seven days a week, and from 8am to 9pm, we will be available to answer calls.
Charong ni Coreng will consider and follow safety protocols prescribe by the IATF in terms of selling
the chicharron product and for customers security and safety against this pandemic.

4.1 Milestones

Our milestones, listed in the table below, outline the major events that will promote, as well as
ensure the success of Charong ni Coreng and keep it a going concern well into the future. We
will measure our success in meeting these milestones every month and adjust the plan to keep
up with our objectives. Name recognition is very important to breaking into this market - we will
conduct a survey by calling 20 randomly selected small businesses from and asking them
whether they have heard of Charong ni Coreng, and if so, what their impression is of the quality
of chicharron and good service to customers. If any of the respondents have taste the product,
we will elicit feedback and suggestions for improvement. We will also ask if they would
recommend us to a colleague.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Department

Manager/
Personnel
Invest cash for 4/1/2021 4/1/2021 Php30,000 CORENG Department
Charong ni Coreng
Business
Procurement of 4/3/2021 4/30/2021 (Php10800) CORENG Department
chicharron raw
materials
Purchase gasoline 4/3/2021 4/3/2021 (Php600) CORENG Department
for transportation
purposes
Purchase 4/7/2021 4/7/2021 (Php20,000) CORENG Department
chicharron

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equipment
Opens the 4/7/2021 4/7/2021 Php0 CORENG Department
business
Start-up FB Ad, 4/10/2021 4/10/2021 (Php900) CORENG Department
blog Campaign
Targeted FB Ads, 4/15/2021 4/15/2021 Php0 CORENG Department
Blog Begin
Purchase 4/16/2021 4/16/2021 (Php300) CORENG Department
answering
service(load)
Purchase PPE 4/16/2021 4/16/2021 (Php500) CORENG Department
Direct marketing 4/16/2021 4/16/2021 Php0 CORENG Department
to Small
Businesses
Paid Utilities 4/22/2021 4/22/2021 (Php1210) CORENG Department
(internet, electric,
water)
Owners receive 4/28/2021 4/30/2021 (Php1200) CCORENG Department
Salaries
Expected sales 4/30/2021 4/30/2021 Php6480 CORENG Department
revenue for the
month
Total Php17,330

5.0 Management Summary

As the business started, the owners will oversee all aspects of the business. The owners will
maintain direct control over inventory ordering and bookkeeping. Part of our brand recognition
strategy is to identify Charong ni Coreng with owner’s efficiency, friendliness, and offering
delicious and affordable chicharron that every customer ever meets. The management will focus
on the business guidelines:

 the customer craves for chicharron, and we're here to help them.
 the customer is frustrated, upset, or confused - but that doesn't make the customer a
problem.
 the customer needs an instant chicharron and were here to offer them.

5.1 Organizational Chart

The purpose of these graphical representation is to illustrate the reporting relationships and
chains of command within the organization of Charong ni Coreng. Charong ni Corengs employee
names and titles and/or job positions are generally depicted in boxes with lines linking them to
other employees and departments. The expertise of each members is suited to their positions
and function.

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General Manager- CT experienced assessing her mother’s business managing for 2 years and
gives confident to improve efficiency and increase profits in managing the overall operations of
Charong ni Coreng business, her duties include managing staff, overseeing the budget,
employing marketing strategies, and many other facets of the business.

Kitchen Manager- Olla and Eva are skilled TESDA-Cookery NCII passer and experienced for more
than a year cooking chicharron acquired from their part time job in an established chicharron
business.

Sales Manager- Romeo has experience for a year of selling online items which give him confident
in holding such function, but his main goal is to certainly need to focus on revenue generation,
he also includes plans to improve productivity and develop each member professionally.

Financial Manager- Nelie experienced a year of being a cashier in a food and restaurant business
that will determine the business standpoint in terms of managing and coordinating monthly
reporting, budgeting, and reforecast processes.

Production Manager- Genelyn’s knowledge in creating a production schedule e.g., regular

maintenance for equipment, purchasing the required materials, and ensure that health and
safety protocols are adhered to was inherit to her by her mother who is a production manager in
a well-known established business which give her be confident in handling such responsibilities.

Figure: Organizational Chart

5.2 Personnel Plan

The owners will be the employee for the first year; their salary is directly related to the success
of the business and will never exceed 50% of sales revenue. After a year, we will hire a seventh
employee if projections are on target.

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Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3
Owner Php1200 Php1200 Php1200
Worker Php0 Php0 Php0
Part time Php0 Php0 Php0
Total People 6 6 6

Total Payroll Php1200 Php1200 Php1200

6.0 Financial Plan

The following sections include the monthly estimates for the standard set of financial tables.
Detailed monthly pro-forma tables are highlighted.

Our financial plan calls for limited growth in the first three months, followed by much higher
sales when we move and hire additional employees. As we grow, we will keep our operating
expenses down, and maintain a positive cash balance.

6.1 Markup

The amount of markup determines the money made from selling every unit of chicharron.
Production costs involve are purchase of raw materials, PPE, transportation, and salaries. 60% was
establish by the owner to ensure greater profit, which also gives the affordability of the customers
to the price per unit.

Table: Mark-up, Selling Price and Mark-up Rate

Products Selling Price Quantity Wholesale Markup Rate Product Cost

per Unit Price
Chicharron Php 9 500 Php 4320 60% Php 2,700

6.2 Projected Profit and Loss

The table below shows our projected profit and loss for the current month of April. Charong ni
Coreng produces 500 units a week and 2000 units for the whole month which costs of
Php10,800 for the purchase of chicharron raw materials. We are seeking a modest net profit in
the first month of the operation. As our reputation grows, we will see higher revenues and net
profit over the next month.

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Table: Profit or Loss

Charong ni Coreng
Income Statement
Projected 3 Months April 1-June 30, 2021

Pro Forma Profit and Month 1 Assumptions % of Month 2 Month 3

Loss Sales

Sales Php17280 Sales will 25% Php21,600 Php27000

increase by
25 %
Cost of Goods Php (10800) RMU as % 63% Php13,608 Php17,010
of sales will
remain the
same

Sales Revenue Php6480 Php7992 Php9990

Expenses
Transportation Php600 It is kept Php600 Php600
Expense constant
Utility Expense Php 1210 It is kept Php 1210 Php 1210
Communication Php 300 constant Php 300 Php 300
Expense (load)
Salary Expense Php 1200 0% Php 1200 Php 1200
PPE expense Php 500 Php 500 Php 500

Total Operating Php(3810) Php (3810) Php (3810)

Expenses

Net Profit Php2670 Php4182 Php6180

6.3 Cash Flow

The Cash Flow chart below shows our cash position for the month of April; the table highlights
for the first month of operation. The table that presents the projected cash flow states that the
cash ending balance for every month is increasing which shows Charong ni Coreng a healthy
small business.

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Table: Cash Flow

Charong Ni Coreng
Statement of Cash Flows
For the Month Ended April 30, 2021

Pro Forma Cash Flow Month 1

Cash Flow from Operating

Activities

Sales Php17280
Purchase of Raw Materials (Php10800)
Payment to transportation (Php600
Payment to Utilities (Php1210)
Payment to (Php300)
Communication(load)
Payment to Salaries (Php1200)
Purchase PPE (Php500)
Net Cash Provided by Php2670
Operating Activities

Cash Flow from Investing

Activities
Purchase of Chicharron Php20,000
Equipment
Net Cash Flow Used in (Php20,000)
Investing Activities

Cash Flow from Financing

Activities
Cash dividend payments Php0

Net Cash Provided for Php0

Financing Activities

Net Cash Flow (Php17330)

Add: Beginning Cash Php30,000
Balance, April 1, 2021
Ending Cash Balance, April Php12670
30, 2021

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Table: Projected Cash Flows April 1, -June 30, 2021

Projected Cash Flow Month 1 Assumptions % of Month 2 Month 3

sales
Cash Balance at the Php30,000 Php12670 Php17350
beginning of the period
Inflows
Sales Php17280 Sales will 25% Php21600 Php27000
increase by
25 %
Outflows
Purchase of Raw Materials (Php10800) RMU as % 63% (Php13608) (Php17010)
of sales will
remain the
same
Payment to Transportation (Php600) It is kept (Php600) (Php600)
constant
Payment to Utilities (Php1210) It is kept 0% (Php1210) (Php1210)
Payment to (Php300) constant (Php300) (Php300)
Communication(load)
Payment to Salaries (Php1200) (Php1200) (Php1200)
Purchase PPE (Php500) - - Php0 Php0
Purchase of chicharron (Php20,000) - - Php0 Php0
Equipment
Total Cash Outflows (Php34610) (Php16918) (Php20185)

Net Cash Flow (Php17330) Php4680 Php5020

Cash Balance at the End of Php12670 Php17350 Php22370
the Period

6.4 Projected Balance Sheet

The Balance Sheet below represents the state of Charong ni Coreng finances (what it owns and
owes) as of highlight of our first month operation and shows reports of Charong ni Coreng
assets, liabilities, and shareholders' equity.

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Table: Projected Balance Sheet

Charong ni Coreng
Balance Sheet
Projected from the Month April 1, - June 30, 2021

Pro Forma Balance Month 1 Assumptions % of Month 2 Month 3

Sheet sales
Assets
Current Asset
Cash Php12670 Cash increased as - Php17350 Php22370
balance at the end of
the period
Non-Current Asset
Equipment Php20,000 Expected to increase Php21000 Php22050
5%

Total Assets Php32670 Php38350 Php44420

Liabilities
Bank Loan Php0 It is used as “Plug” to Php4168 Php8240
determine owners’
loan for an additional
purchase of
equipment to sustain
the increase of
monthly sales
Total Liabilities Php0 Php4168 Php8240
Owner’s Equity
Retained Earnings Php2670 It increases by NI Php4182 Php6180
because no dividend
is paid
Charong ni Coreng Php30000 Capital is kept - Php30000 Php30000
Contributed Capital constant from the
4/1/2021 beginning balance
Total Owners Equity Php32670 Php34182 Php36180
Total Liabilities and Php32670 Php38350 Php44420
Owners Equity

7.0 Contingency Plan

While careful planning was involved in setting the strategic goals for Charong ni Coreng, it may be
that these goals are not met. The owners have decided to set a zone of acceptability for meeting
sales and financial objectives. For both sales and financial objectives, a 10% negative deviation
from expected sales and projected returns on assets will be accepted. However, if sales objectives

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and returns on investment are less than 90% of projections, certain actions will be taken. These
actions include:

1. For unacceptable sales levels during the first year: Coreng’s Charong will face this problem by
doubling the promotion of chicharron in the Dasmarinas area. The owners will organize and make
these promotions in person over the weekend at maximum shopping time. If sales don’t increase
within a month of in-store promotions, we will place ads in weekly within a month.

2. For unacceptable sales levels in Dasmarinas area: After 6 months of marketing products in these
areas, sales will be evaluated. If it does not meet acceptable sales levels, Charong ni Coreng will
consider customer feedback and suggestions to make the product on demand in the market.

3. For unacceptable returns on equity: If returns on assets and owners’ equity fall below acceptable
levels, Charong ni Coreng will examine and compare the per-unit costs of production and marketing
with sales prices. Charong ni Coreng will assess opportunities for minimizing production costs and
examine different marketing/distribution alternatives.

4. For unsold chicharron products: Charong ni Coreng will try to sell the product at a break-even
price. If the chicharron product still unsold we will dispose the product for customers safety and find
the reason or problem, why the sales deficit during that season.

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Appendix

Content here!!! Note: If only the following are available!

*Actual Pictures of the Operation

*Actual Pictures/Prices Purchase Equipment’s, PPE etc.

*Pictures of Supplementary Sales Invoices (Registered or Unregistered) from Raw Materials

purchase etc.

*Pictures of Supplementary Official Receipts (Registered or Unregistered) Bills from Services

(Meralco, Dasca Internet, Prime Water etc.)

* Prices of raw materials purchased= Php 2,700

Ingredients Prices

 ▢ pounds pork rinds, cut into 2-inch sizes Php 1200

 ▢ cup vinegar 200
 ▢ head garlic, peeled and crushed 100
 ▢ tablespoon salt 100
 ▢ teaspoon peppercorns 100
 ▢canola oil 500

Packaging

 ▢ Plastic container Php 500

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