THE COLLEGE OF MAASIN

Nisi Dominus Frustra

Tunga-tunga, Maasin City, Southern Leyte

HUMANITIES AND SOCIAL SCIENCES (HUMSS)

A
BUSINESS PLAN

AFFORDELICIOUS SNACK HAUZ

FINAL REQUIREMENT
In

Entrepreneurship
Humss 11-1

GROUP 1
Member 1
Member 2
Member 3
Member 4
Member 5

Submitted to:

MR. REX GAMOHAY ORTIZ, LPT

Subject Instructor
 TABLE OF CONTENTS
I. Executive Summary -------------------------------------------------------------------------- 1
II. Environmental Analysis
a. Market Description ------------------------------------------------------------------ 2-3
III. Description of the Business
a. Product/s and Business Size -------------------------------------------------------- 4-5
b. Mission, Vision and Core Values -------------------------------------------------- 6
c. Location of the Business ------------------------------------------------------------ 6-7
IV. Production Plan
a. Manufacturing Process -------------------------------------------------------------- 8-13
V. Operation Plan
a. Workflow ----------------------------------------------------------------------------- 14
VI. Marketing Plan
a. Promotion and Advertisement ----------------------------------------------------- 15
VII. Organizational Plan
a. Form of Ownership ------------------------------------------------------------------ 16
b. Organizational Structure/Chart ---------------------------------------------------- 16
VIII. Financial Plan
a. Major Assumptions ------------------------------------------------------------------ 17
b. Total Projected Cost ----------------------------------------------------------------- 17
c. Projected Sales ----------------------------------------------------------------------- 18
IX. Assessment of Risk
a. Potential Risk/s and Strategy ------------------------------------------------------ 19
X. Timetable/Milestones
a. Time Chart ---------------------------------------------------------------------------- 20
IX. Appendices
a. Curriculum Vitae -------------------------------------------------------------------- 21
 Executive Summary

AFFORDELICIOUS SNACK HAUZ is a food cart business owned and operated by

REX GAMOHAY ORTIZ, the principal proponent. The name of the business is a
collaboration of the words “affordable” which is believed to be within one’s financial
means and “delicious” which is defined as a highly pleasing to one’s senses, especially to
taste or smell. Snacks, on the other hand, connotes the business’ basic products namely,
squash/oatmeal pancake that can be eaten between meals and a sago’t gulaman juice that
serves as its partner. I have decided to name the business as AFFORDELICIOUS
SNACK HAUZ because it can be easily visualized by our target market what the
business is all about and can be perceived as low cost snack that can easily be memorized
by my end users.

In this fast-paced world where people are too busy preparing their own snacks and foods
they tend to rely to instant where they can satisfy their appetite. This further eradicates
time hassle in their part. This project is named as AfforDelicious Snack Hauz wherein
people can find a variety of pancake with a beverage added. This is for the purpose that I
want to serve our valued customers new products which give them a healthier nutritious
food that will be enjoyed not only for the adults, but also for the young ones. The Snack
Hauz will also serve varieties of flavors that consumers usually haven’t tasted, a new set
of pancakes that are delightful to eat “Squash and Oatmeal Pancake with Sago’t gulaman
juice” - a value meal product, and later on more flavoring of the pancakes will be offered.
Knowing that nowadays, people would choose an artificially made food products that
have less nutritional facts/content over the conventional food that is said to be “good for
our health” and which is available in the market. I do believe that promoting a healthy,
nutritious snack will benefit the consumers. Thus, this project primarily targeting all
students, faculty and staff in The College of Maasin wherein our business site will be
located. This purely aims to provide new nutritious flavoring of pancakes at the most
affordable price for the customers without compromising the quality of the products.

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 Environmental Analysis

A. MARKET DESCRIPTION
The target markets of this project are the students, visitors and faculty & staff of The
College of Maasin. This project will be catering the need for a healthy, delicious,
affordable type of snack to the school. A number of students that are being selected in
this project are from different departments and levels, a number of the visitors are
selected randomly based on the frequency of their attendance in a day, the faculty and
staffs are also randomly selected. We have gathered these respondents according to the
percentage over the population. With the total of 1,233 people in the school that may
become the possible costumer, we get at least 312 people as our respondents which is
equivalent to 25% of the population. Respondents are identified immediately after they
have shown interest in buying our proposed business.

According to the gathered data through survey, a high demand of pancakes and juice will
be experienced throughout the operation. This project primarily focused on the segments
including kids, youth, young adults, and professionals in their adult stage.

TABLE 1: (NO. OF HEALTH CONCIOUS RESPONDENTS)

CATEGORY N = 312 Percentage

Elementary 11 3.5

High School 112 36

College 146 46.8

Faculty and Staff 16 5.13

Visitors 10 3.2

TOTAL 295 94.63 %

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The table presented indicates that most of those with legal age are health conscious
consumers.

Young adults to adults, ages between 20-30 above (college to faculty, staffs and visitors)
become more conscious of their health, prefer healthy beverages and concerned with the
price and the quality of the products.

Ages 15-20 (high school – college 1st and 2ndyr) are health conscious consumers that
doesn’t really care about the price and doesn’t care about the health benefits.

Consumers with an age of 15 below (elementary), loves to drink cool stuffs, purchase
cheap drink and are not actually conscious to their health.

This clearly states that health conscious consumers are most likely the ones that will
patronage and buy our products despite of being hesitant to its price, providing health
benefits majority of them will continue to buy our product offer.

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 Description of the Business

A. PRODUCT/S and BUSINESS SIZE

AfforDelicious Snack Hauz is going to sell the following products; Squash Pancake,
Oatmeal Pancake, and Sago’t Gulaman Juice. These products will be brought forth
considering the demand of the target market as to offering these in a value meal form.

Pancakes are fantastic for breakfast that can be eaten between meals and are considered
to be a snack that satisfies your needs. Sago’t Gulaman Juice on the other hand is the
best beverage to pair the pancake. Flavoring is done by adding squash and oatmeal to the
plain mixtures of a pancake, while the juice is the mixture of water, milk, Sago and
gulaman and buko. We are going to use butter in the mixture to disregard using oil in
cooking. Putting only small amount of sugar to ensure that even diabetic people can eat.
In fact the survey shows that people tend to go for natural drink than artificial flavored as
customer considers the health benefits, taste and comfort of their drinks and also to their
snacks.

For pancakes, squash and oatmeal can be used as flavoring and other healthy foods too.
Oatmeal has a higher concentration of a well-balanced protein than other cereals. It is a
good source of carbohydrates that provide energy that is required. It contains a
photochemical which has been associated with protection from chronic disease and it
boosts the immune system. Squash on the other hand has the great amount of nutrients,
minerals, vitamins and other substance which are necessary for human to keep them
strong and healthy. It prevents not only one but dozens of disease. It has vitamin C, fiber
and foliates which make it preventive agent from developing cancers, heart diseases and
diabetes and other inflammatory diseases such as arthritis and asthma. It is also a good
source of vitamin b1, b6, b3, b5, folic acid, fiber, manganese, magnesium, zinc,
phosphorus, copper, tryptophan, and omega 3 fatty acids. It is great for the eyes because
it contains beta-carotene and lute in which prevents cataracts and macular degeneration. It
contains essential benefits for a healthy heart.

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Sago is high in carbohydrate content. Carbs fall into the category of macronutrients,
which the body needs in copious amounts for energy and brain function. It has protein
that is used for the preservation of all connective tissue, aids with wound healing and
boosts immunity. It also contains small amounts of calcium, copper, potassium and
sodium. With the exception of copper, these are electrolyte minerals, which help with
muscle contractions and water balance. Gulaman is extracted from seaweed and is
completely vegetarian. . It is resistant to intestinal gastric juices and enzymes, retains
water, and has no flavor. Its health benefits include sequestering toxic substances, fixing
salts by inclusion, delaying glucose absorption (a boon to diabetics), improving intestinal
transit, and preventing colon cancer. It has been accepted by government health agencies
as a pharmaceutical substance in diets and medical preparations for satiating appetites
and reducing caloric content.

Hence, the business is going to produce a healthy nutritious product which the consumers
are not aware of. Adding a variety of flavor as based on the results of the data gathered
on the survey will help the business be more strategic in nature, and providing the most
convenient food cart business will give great benefits for both consumers and
management. This will be the first ever food cart business that offers value meal product
that aims to delight the appetite of every consumer. The size of this business for now is
micro/small business, but if the success is constantly progressing/increasing definitely it
will turn to big one.
B. MISSION, VISION and CORE VALUES
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MISSION

AFFORDELICIOUS SNACK HAUZ seeks to offer affordable and at the same time
delicious snacks to all people especially those who are in the College of Maasin
environment, generate a successful amount of money, maintain a friendly, fair and
creative work environment which respect diversity, new ideas and hardwork.

VISION

To be the best Food Cart Snack Business in Maasin City which provide nutritious yet
affordable food snacks, admired for its uniqueness, innovation, good products, and
contributing to a better and sustainable environment.

CORE VALUES

a. Integrity c. Accountability e. Commitment to Customers

b. Honesty d. Passion

C. LOCATION OF THE BUSINESS

Location is usually the first factor to consider in starting a business for food cart site
selection is increasingly complicated these days. Demographic studies focus groups,
consumer surveys are all part of the formula. But instead of opening our proposed
business in a widely known area of the city, we conduct a research of knowing other
potential areas that we can operate and make a profit. Based on the result of our research
and survey, The College of Maasin is the perfect place that is suitable to our business; we

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will be catering the students, faculty and staff and visitors in this area. The food cart
business will be located at Tunga-Tunga, Maasin City, in The College of Maasin area
particularly beside the school canteen. This location site is believed to be high in demand
of nutritious snack and many students, faculty and staff that pass-by. The business can
directly reach the target market and we can easily cater their needs in the sense that it is
located inside the school campus. Secondly, the target markets can promptly buy and
consume the products offered to them, thus it is undoubtedly convenient to their part.
Lastly, the distance of our supplier for crushed ice and the wet market where most of the
ingredients can be bought is just a few walks away.

The Proposed Market Location

The Projected Food Cart

 Production Plan
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A. MANUFACTURING PROCESS

These are the ingredients of the Squash/Oatmeal Pancake and Sago’t Gulaman Juice:
INGREDIENTS for SQUASH PANCAKE
• 2 cups all-purpose flour (spooned and leveled)
• 1 tablespoon baking powder
• 1 teaspoon salt
• ¼ cup white sugar
• 1 tablespoon yeast
• 2 tablespoon vanilla
• 3 tablespoon butter (melted)
• 2 cups milk
• 2 eggs beaten
• 1 cup oatmeal (cooked)
INGREDIENTS for OATMEAL PANCAKE
• 2 cups all-purpose flour (spooned and leveled)
• 1 tablespoon baking powder
• 1 teaspoon salt
• ¼ cup white sugar
• 1 tablespoon yeast
• 2 tablespoon vanilla
• 3 tablespoon butter (melted)
• 2 cups milk
• 2 eggs beaten
• 1 cup squash (cooked)
 The only difference of the two pancakes is the added flavor of squash and oatmeal.
The mixture can make 25 servings.
INGREDIENTS for SAGO’T GULAMAN JUICE
 2. 5 gallons of mineral water 8

 4 cans evaporated milk

 5 pieces ice
 4 cups coconut meat
 ¼ kilo sugar
The mixture can produce 115 cups.

PROCEDURE:
• Wash the squash; then cut into pieces and cook until tender in a boiling water, then
drain and rub pulp through sieve.
• Cook the oatmeal or you can pour the oats in a bowl, and add 150ml hot water
then beat.
• In a large bowl, sift together the flour, baking powder, yeast, salt and sugar. Set
aside.
• In a separate medium sized bowl combined the milk, egg, cooked squash, vanilla
and melted butter. At low speed, beat the liquids.
• As to oatmeal pancake separate the mixtures of the flour and the cook oatmeal
• Pour the liquids into the bowl and stir with a wooden spoon until well
incorporated. Do not beat the mixture. Just stir until moist and combined.
• Heat a lightly oiled griddle or frying pan over medium high heat. Cook until
golden brown on the bottom before flipping. You can also use butter instead of oil
for cooking.
The illustrations below shows the step by step process of making pancakes:
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Cutting the squash

Mixing the squash, pour the squash into the mixture and stir until well
incorporated.
 Cook the oatmeal in 2 cups of boiling water combining the egg and flour

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Pouring the liquid to the flour and pour the oatmeal and then set aside mixture

The illustrations below shows the step by step process of making Sago’t Gulaman:
 Cook the gulaman in a liter of boiling water. Stir until the gulaman melts.

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Transfer the cooked gulaman into molds. Refrigerate, and then allow the gulaman
to set. Once set, slice into small pieces.

Add sago into hot boiling water. Stirring every now and then to avoid sago
sticking together.
 Strain the sago and set aside.

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Pour the 2.5 gallon of mineral water in the jug and mix together the sago,
gulaman, coconut meat, sugar and 2 cans of milk then add ice.

Finished product
The AfforDelicious Snack Hauz is going to produce pancakes and juice every
weekday but the quantity of the products will depend on its demand. We will be going to
prepare the necessary mixture every night, making it available in the morning so it is
ready to cook. The total projected number of pancakes and juice every day is as follows:
Squash - 25 pieces/mixture * 4 = 100servings
 Oatmeal - 25 pieces/mixture * 4 = 100 servings

Sago’t Gulaman Juice - 230 cups

Operation Plan
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A. WORK FLOW

Inspect the raw ingredients.

Purchase raw ingredients

Preparation of the raw

Mix all of the ingredients. ingredients and cooking
materials

Transport the pre-finished

Inspection of the pre- product to the distribution
finished products area.

Prepare the pre-finished products

for distribution.

Inspection of the finished products

Distribute. (Through selling

the finished products)

Proposed Channel of distribution

In distributing the finished products to the customers, the business will no longer employ for
any distributor but directly sell the products to the customer. Since our target customer is in
the school area and our food cart is placed beside the school canteen, it is easy for us to reach
the customer. Orders from customers will also be accepted if there are any and will deliver
 Marketing Plan
Marketing Plan

A. PROMOTION AND ADVERTISEMENT 14

One of the best ways to popularize our business is having our promotional and
advertising tools. These are the methods and channels we will use to reach customers and
let them know about our product and service. These range from traditional media to
newer and out-of the box methods to spread the word out. The promotional methods will
convene on advertisements will include the following:

1. Outdoor Signs – two months prior to the grand opening of our business, the
management will be giving door hangers to the nearest neighbors and visitors for them to
be aware of the AFFORDELICIOUS SNACK HAUZ. Tarpaulins that will attract and
easily catch the attention of the passers-by will be posted before the opening. There will
be four tarpaulins, and will be placed in the elementary department, one for High School,
then in Student lounge area and outside the gate. These will be simple and short that
viewers see them for only seconds.
A year after, the business will have other promotional methods, and will include the
following:

2. Online Advertising – since we are now in the era of technological advancement, it is

much easier to promote the business through social media sites. The management will
post ads on Face book and Twitter to lure customers to our food cart. The management
will make its own page on face book so that possible customers will be aware about the
business updates and upcoming events/promotions.

3. Newspaper Ads – the traditional form of advertising, weekly newspaper ads will allow
us to target specific place.
 Organizational Plan
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A. FORM OF OWNERSHIP
The form of ownership in this business that I want to establish is Sole Proprietorship.

B. ORGANIZATIONAL CHART/STRUCTURE


General Manager/Owner


Human Resource Manager


Cooking Personnel

Administrative Assistant

General Manager - This person oversees the whole business and works on the strategies
to improve the various aspects within your business. They are in control of your staff,
operations, and customer care.
Human Resource Manager - Hiring and managing people can be complicated. It is
important that you know the in and out of local legislation and that you are on top of your
payroll.
Cooking Personnel - Responsible in cooking and producing the product.
Administrative Assistant - Admin sometimes stands in the way of entrepreneurs
focusing on getting more business or streamlining their products. By hiring an admin
assistant or virtual assistant, you will be able to delegate tasks, which take your time
away from more critical parts of your business.

Financial Plan

A. MAJOR ASSUMPTIONS
1. Sales per week are based on the results of the survey made.
2. There will be a 20% increase every other year in terms of demand of the products.
3. An allowance of probable losses of 10% will be set.
4. Prices of raw materials are expected to increase every year by 5%.
5. Direct labor cost is expected to increase by 10% per annum.
6. Overhead cost will increase by 10% every year.
7. The entity is using a straight line depreciation method.
8. Selling expense will increase by 10% every year.
9. Business tax is 30% annually.
10. Supplies and Business Taxes & licenses are expected to increase by 10% annually.

B. TOTAL PROJECTED COST

The estimated start-up cost is Fifteen Thousand Pesos (P 15,000.00).
AFFORDELICIOUS SNACK HAUZ
TOTAL PROJECT COST

Direct Materials ₱ 1,195.70

Business Permits 1,500.00
Supplies 1,779.45
Machines & Equipments 6,460.00
Selling Expenses
Sales Promotion (20x ₱15) 300.00
Tarpaulin 600.00
Working Capital 3,164.85
TOTAL ₱ 15,000.00
The 50% of the total investment amounting to 7,500.00 will be taken from the proponent
as his investments and the other 50% will be availed as loan.

C. PROJECTED SALES

AFFORDELICIOUS SNACK HAUZ 17

PROJECTED SALES
For the 3 year period
Products 1ST YEAR 2ND YEAR 3RD YEAR
Pancake (Value Meal) ₱ 92,000.00 95,000.00 100,000.00
Gulaman and Sago ₱ 63,360.00 66,360.00 71,360.00
Total ₱155,360.00 ₱161,360.00 ₱171,360.00
 Assessment of Risk
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A. POTENTIAL RISK/S AND STRATEGIES

a. Operating Costs that exceed initial estimates

b. Failure to achieve Sales Forecasts
c. Sudden unavailability or a steep increase in the price of raw materials
d. Difficulties in raising additional capital
e. Unforeseen environmental conditions, such as natural disaster, a major recession, or an
unfavorable legislation.

What are your strategies to prevent or minimize these risks?

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 Timetable/Milestone
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A. TIME CHART
Business Activities Specific date of the implementation for each activity
a. Formal Registration of the
Business

b. Completion of
Product/Service Design

c. Completion of Prototypes
d. Hiring of Initial Personnel
e. Reaching Agreements with
Suppliers and Distributors

f. Actual Production
g. Initial Orders, sales,
deliveries
h. Grand Opening
 Appendices
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A. CURRICULUM VITAE

Name : Rex Gamohay Ortiz

Present Position/Rank : SHS Faculty (The College of Maasin)

Home Address : Mahayahay, Maasin City, Southern Leyte

Birthdate : January 8, 1997

Father : Rodrigo L. Ortiz

Mother : Mirasol G. Ortiz

Civil Status : Single

Contact Number : 09999999999

Email Address : rexgamohay1997@gmail.com

Educational Background

Graduate School : Master of Arts in Public Administration

The College Of Maasin
Maasin City

College : BS Education Major - Mathematics

Saint Joseph College
Maasin City
Secondary : Maasin City National High School
Combado, Maasin City

Elementary : Mahayahay Elementary School

Mahayahay, Maasin City

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