BUSINESS PROPOSAL

I. General Information

Name/Title EINSTEIN’S DELICACY PRODUCTION

Address Brgy. Dicabisagan West / East, Palanan, Isabela
Industry / Type Accessories, handicrafts Entertainment, LGU Non-food
(Mark all that apply) Agriculture, forestry X Food Retail, trade
Aquaculture, fisheries Furniture, fixtures Service
Cottage industry Health, wellness Transportation
Clothing, textile, apparel Hospitality Tourism
Construction Manufacturing Wholesale

II. Proponent/ss

Ayya M. Maramag Geraldine V. Donato

Ogie D. Matuz Crisabel U. Mando
Joyce Anne Matuz Kyla Mae S. Mariano
Geralyn C. Cansi Noel L.Perico Jr.
Jogilyn C. Donato Kemwel U. Chavez

III. Products and / or Services

Products / Services Brief Description

Kakanin is a native delicacy that is available in the country. It can be just made
up of glutinous rice, coconut milk, pandan, ube and sugar combined. The history of
kakanin is rich as its flavor. Filipinos loves to eat kakanin. We cannot simply hide the fact
Palitaw de leche
that we eat rice from the start of the day up to the end of it. We the future entrepreneur love
to eat kakanin and we see a huge potential to it as a product in the market.
Palanan Native Delicacies will be having a cultural ambiance. We will also
implement good combination of native ambiance of the snack and affordable price of the
meals to bring up satisfaction to the customer.

IV. Market Aspect

Markets Proximity
X General Public x Within the barangay
X Institutions Nearby barangay/s (specify):
Other barangay/s in the municipality (specify): Barangay Villa Robles, Centro
x West /East, Palanan, Isabela
Nearby municipality/-ies in the province (specify): Divilacan, Maconacon,
Sex Dinapigue, Dilasag
X Male Other municipality/-ies in the province (specify):
Target Market

X Female Other province/s (specify):

Other region/s (specify):

Income Bracket Specific Markets

A (high) Niche/s (specify):
B (higher middle) Occupation/s (specify):
X C (middle) Individual/s (specify):
X D (lower middle) Institution/s (specify):
X E (low)
Institutional Internal BARANGAY/LGU / LGU Markets
BARANGAY/LGU program/s and / or office/s
LGU program/s and / or office/s (specify):
 The consumption of the general public is a big opportunity for the enterprise development.
Einstein’s delicacy production is an open industry for the low, middle income and at disadvantage
program participant.

Qty / Vol Qty / Vol to be

Qty / Vol Qty / Vol Surplus Frequency1
Market Currently Supplied by
Currently Supplied (Shortage) (Per)
Demand-Supply Analysis

Demanded Enterprise
General Public (270,000) pcs (135,000) pcs (135,000) pcs (67,500) pcs Per Yr
(67,500,000)
TOTAL (270,000) pcs (360,000) pcs (360,000) pcs Per Yr
pcs

We assumed that the consumption of one person will be atleast 5 pieces of palitaw de leche per day. We
chose only 0.05 percent of the population of Dicabisagan West and East as our main target market or
equivalent to 150 persons therefore, they will consume at least 22,500 pcs/ month or at least 270,000 per
year.

Competitors
Same product/s and / or service/s (i.e. no significant differentiation) Same Farmers
X Similar product/s and / or service/s (specify): Doughnut
Alternate product/s and / or service/s (specify):

Other Threats
Threats

Environmental / climate shock/s (specify): Strong typhoons, Drought, Flooding

Political / security / peace and order (specify):
X Insufficient supply of resource/s (specify):
X Insufficient demand of market/s (specify):

Insufficient supply of the ingredients needed in producing kakanin and insufficient demand of market can
put a halt in the progress and sales of our kakanin business.
X In-store X Direct selling (retail) (specify location/s):
Distribut

X Delivery Direct selling (wholesale) (specify location/s): doughnuts

ion

X Pick-up / meet-up Consignment (specify consignee/s):

Kakanin Products will be distributed via delivery or shall or pick-up by the buyer at our location.

1
E.g. once, twice, x times per year
V. Resource Mapping

President: AYYA M. MARAMAG

Treasurer: JOYCE ANNE MATUZ
Secretary: OGIE D. MATUZ

PLS SEE ABOVE LIST OF MEMBERS

Quantity Cost per Person Knowledge &

Role / Work Out- Total Cost Qualifications
Internal
sourced
(per frequency) Skills

Management,
Human

accounting skills, Food tech

President 1 --- Deferred Deferred
cooking and graduate
baking

cooking and Food tech

Deferred Deferred
Secretary 1 --- baking graduate

cooking and
Food tech
Deferred Deferred baking and
Treasurer 1 ---- graduate
accounting skills

The human capital shall be source from the members of the association since they all have basic skills and knowledge
in the industry.
Qty / Vol Acquisition Cost Supplier / Payment G/
Resource Type2 Frequency3
(unit) (in Php) Provider Terms4 P5
Land Once Members Deffered G
S&
Raw Materials 180,000 Once Members deffered G
M
Production area
35,000 1 cycle Members Deffered G
/ Display room
Tools and S&
15,000 Once Members Deffered G
equipment M
Physical & Natural

Electricity and
4,320
Water
Labor Wage 100 36,000.00 Members Deffered G
Promotional S&
600
Materials M

For type B: Repayment Terms

Amount Type6 Supplier / Provider G/P
Finan

(amount, interest rate / amount, schedule)

270,920 G&D 27,092 Once Members G

The fund shall be source from members and investors.

2
Supplies & Materials (S&M), Tools & Equipment (T&E), Building & Infrastructure (B&I), Public Utilities (U)
3
E.g. once, every x years, yearly, quarterly, monthly, weekly, daily, x times per day
4
Advance (A), On delivery (OD), Deferred (D)
5
Guaranteed (G) or potential (P) supplier / provider
6
Grants & Donations (G&D), Credit / Loan (C / L), Owner’s Equity (OE)
VI. Regular Operations Cycle Process

___ [n] times per day ___ Daily ___ Weekly ___ Monthly ___ Quarterly
Length of Operations Cycle ___ Every [n] days ___ Every [n] weeks ___ Every 6 months X__Annually

Construction of
Acquisition of tools and
production area Production Marketing of Stock
equipment
and store house
Brgy. Dicabisagan Brgy. Dicabisagan West / East,
Brgy. Dicabisagan West / Brgy. Dicabisagan West / East,
Location / Venue West / East, Palanan, Palanan, Isabela
East, Palanan, Isabela Palanan, Isabela
Isabela

Duration 730-days 730-days 730-days 730-days

Finished product (already

Clean and safe High quality and effective
Output garnished and packed Sell Doughnut
production area tools and equipment
doughnut)
None None None
Buildings 35,000

Supplies & Materials None

Cost of Supplies & Materials 180,000

Tools & Equipment None None

Cost of Tools & Equipment 15,000

 Construction of
Acquisition of tools and
production area Production Marketing of Stock
equipment
and store house

Members in- charge (Labor) Assigned Participants Assigned Participants Assigned Participants

36,000
Cost of Labor

Cost of Rent

Cost of Transportation

Cost of Utilities

Cost Category7 O O M

Quality The members are food technology graduates and have 4 years’ experience and knowledge in IGP and practicum through cooking and baking kakanin. With modern
Assurance baking and cooking utensils and equipment, this will ensure the quality of our kakanin products.

7
Operations (O), Marketing (M), or Administrative (A)
VII. Financial Projections (per Operations Cycle)
A. Costs

The business shall incur the following costs during its operations.

Variable Cost per Unit Quantity Produced / Total Variable Cost per
Products / Services
(in Php) Provided (in units) Unit (in Php)

RAW P 2.67 P 180,000.00

MATERIALS

67,500 PCS
ELECTRICITY AND P 0.04 P 4,320.00
WATER

PROMOTIONAL P 0.005
P 600.00
MATERILAS

Total Fixed Cost

Products / Services
(in Php)
AMORTIZE VALUE OF PRODUCTION AREA (FOR THREE YEARS) P 15,000.00
AMORTIZE VALUE OF TOOLS AND EQUIPMENT P 5,000
LABOR P 36,000.00

B. Sale Price/s

Sale Price per Unit

Products / Services
(in Php)
Palitaw De Leche P 7.00

C. Breakeven Point

Given the sale price/s, the breakeven point (in units and sales revenue) for the PALITAW DE LECHE is
computed as follows.

Sale Price per Unit Variable Cost per Unit Contribution Margin
Products / Services
(in Php) (in Php) per Pcs (in Php)

Palitaw De Leche P 7.00 P 2.67 P 4.33/ pc

Fixed Cost Contribution Margin per Breakeven Point
Products / Services
(in Php) Unit (in Php) (in units)
AMORTIZE VALUE
OF PRODUCTION
P 15,000 P 4.33/ pc P 3,464.20/ pc
AREA (FOR THREE
YEARS)
 Sale Price per Unit Variable Cost per Unit Contribution Margin
Products / Services
(in Php) (in Php) per Pcs (in Php)
AMORTIZE VALUE
OF TOOLS AND
P 5,000 P 4.33/ pc P 1,154.73/PC
EQUIPMENT (FOR
THREE YEARS)

LABOR P 36,000.00 P 4.33/ pc P 8,314.09/ pc

Sale Price per Unit Breakeven Point Breakeven Point

Products / Services
(in Php) (in units) (in Php)

DOUGHNUT P 7.00 P 12,933.02/pc P 90,531.14

D. Sales

The business shall be able to sell the following quantities and earn the following amounts per operations cycle.
The quantities sold are based on the both the market demand, the capacity of the business to supply these
quantities, and the available resources of the business.

Sale Price per Unit Quantity Sold Sales

Products / Services
(in Php) (in units) (in Php)
PALITAW DE LECHE P 7.00 67,500 PCS P 472, 500.00

E. Income Statement

Given the sale price/s, sales projections, and corresponding costs, the net income is computed as follows.

DOUGHNUT
Units Sold 67,500 PCS

Sale Price per Unit P 7.00 / pc

(in Php)
Sales (in Php) P 472, 500.00

Less: Variable Costs

270,920.00
(in Php)
Less: Fixed Costs
(in Php)
56,000.00

Income (per cycle) 145,580.00

NET INCOME PER CYCLE P145,580.00
 Given the information from the projected income statement, the gross income margin and net income margin are
computed as follows.

Sales (in Php) P 472, 500.00

Less: Variable Costs

270,920.00
(in Php)
Gross Income P 201, 580.00
GROSS INCOME MARGIN 0.4266

Sales (in Php) P 472, 500.00

Net Income P145,580.00

NET INCOME MARGIN 0.3081

F. Recovery of Investment Costs

Given the computed net income per cycle and the initial investment/s (including start-up costs and venture
initiation costs) for the business, the number of cycles to recover these costs is computed as follows.

Investments Costs
Raw Materials P 180,000.00
Production Area/ Display room 35,000.00
Tools and equipment 15,000.00
Promotional Materials 600.00
Electricity and water 4,320.00
Labor 36,000.00
TOTAL COST OF INVESTMENTS P 270,920.00
NET INCOME PER CYCLE P 145,580.00
NUMBER OF CYCLES TO RECOVER INVESTMENT COSTS 0.5373

VIII. Socio-economic Aspect

Through this proposed project, the members of the association shall have additional or even help to increase
income that they may utilize in uplifting their socio-economic status.
Internal

The proposed business shall help the Municipality of Palanan constituents in improving their economic
status

The proposed project will give a chance for Palanenos to patronized native delicacies and promote our
culture.
External

Given the chance to promote cultural quality products, and increase the demand for native delicacies with
innovation and diligence to attend the customers’ tastes and preference, this proposed business will surely
progress and provide employment for others.