A

BUSINESS PLAN ON

BREAK THE SILENCE (BTS) MUSIC STORE

In Partial Fulfillment of the Course Requirements in the Program of

the Bachelor of Science in Business Administration
Major in Financial Management

ALFARO, ROLAND T.

BELLEZA, LUCKY JEAN D.

BUSTAMANTE, HAZEL KATE L.

DEGUILMO, DAVE C.

DELOS SANTOS, FIDEL JAYSON A.

GABULE, DAISY S.

February 2021
 ACKNOWLEDGMENT

The proponents would like to extend their heartfelt thanks and their sincere

gratitude to the people who unconditionally assisted them by sharing their time and

effort during their entire journey in accomplishing this business plan.

To their adviser, Ms. Judelyn Osorio, who gave her full support that made

this business plan into completion.

To the most respected panels, Ma. Elena G. Litob, CPA, MBA, Mr. Rey

L. Sabas Jr., and Ms. Jessah Mae Joyce A. Valdez, CPA , who imparted

knowledge and gave their expertise to make this achievement a fulfilling onE.

To the BSBA Program Head, Mrs. Ma. Elena Litob, CPA, MBA, who

continuously extends her support, and to Mr. Ben-Oni Ligaray, OIC – Office of

the College President, for his encouragement and for allowing them to experience

the making of Business Plan regardless of the pandemic.

To their course instructress, Ms. Lovely Mae N. Abanto, CPA, for her

patience and understanding during the entire duration of this project.

To their parents and families, for their undying support financially, morally,

and spiritually. For encouraging them to never give up despite of the hardships

and problems, and for inspiring them to keep on chasing their dreams and

believing on themselves to continue their study.

To the members of the group, who make this Business Plan possible. For

their time, effort, and finances that they extended for the success of this project.
This pandemic taught the group to be patient and to be flexible especially during

the entire process.

Lastly, to the Almighty God, who is their source of strength and knowledge

which makes everything possible. All the Glory and Honour belongs to Him.

- The Researchers
Title Page i
Approval Sheet ii
Acknowledgement iii
Table of Contents iv
List of Tables vii
List of Figures viii

I. Executive Summary 1
II. General Company Description
Vision 3
Mission 4
Goals 4
Objectives 4
Business Philosophy 4
Legal Form of Ownership 5
III. Products and Services
Description of Products and Services 6
Competitive Advantage 6
Pricing Structure 7
IV. Marketing Plan
Marketing Research 9
Marketing Structure 12
Economics 13
Product and Services 15
Customer 15
SWOT Analysis 15
Niche 17
Strategy 17
Promotion 18
Promotional Budget 18
Distribution Channel 19
Location 20
Sales Forecast 20
V. Operational Plan
Process 21
Production Flow Chart 22
Location 23
 Floor Plan 24
Legal Environment 25
Personnel 25
Inventory 25
Suppliers 26

VI. Management and Organization

Organizational Structure 27
Job Description and Qualifications 28
Professional and Advisory Support 29

VII. Financial Plan

Start-up Cost and Capitalization 30
Important Assumption 31
Source of Fund 31
Projected 5-Year Statement of Financial Position 32
Projected 5-Year Income Statement 33
Projected 5-Year Statement of Changes in Owners’ Equity 34
Projected 5-Year Cash Flow Statement 35
Financial Ratios 36
Appendices 37
Appendix 1. Business Logo 37
Appendix 2. Business Tarpaulin 37
Appendix 3. Projected Operating Expense 38
Appendix 3A. Depreciation Schedule 38
Appendix A1. Furniture and Fixture 38
Appendix A2. Office Equipment 38
Appendix B. Rent Expense 38
Appendix C. Utilities Expense 39
Appendix D. Repair and Maintenance 39
Appendix E. Salaries and Wages 40
Appendix F. Promotion Expense 40
Appendix G. Transportation Expense 40
Appendix H. Professional Fees 40
Appendix I. Supplies Expense 41
Appendix J. Taxes and Licenses 42
Appendix 4. Sales Forecast 43
Appendix 5. Cost of Sales 44
Appendix 6A. Net Profit Ratio 45
Appendix 6B. Return of Asset 46
 Appendix 6C. Payback Period 47
Appendix 7. Survey Questions 48

References 50
Curriculum Vitae 51
 LIST OF TABLES

Table 1. Pricing Structure

Table 2. Market Share
Table 3. SWOT Analysis
Table 4. Promotional Budget
Table 5. Sales Forecast
Table 6. Suppliers
Table 7. Job Description and Qualification
 LIST OF FIGURES

Figure 1. Target Market

Figure 2. Product that Customers Opted to Buy
Figure 3. Probability to Visit Music Store in Kapalong
Figure 4. Frequency of Buying Accessories
Figure 5. Market Demand
Figure 6. Distribution Channel
Figure 7. Process Flow Chart
Figure 8. Store Location
Figure 9. Store Floor Plan
Figure 10. Organizational Structure
 1

Chapter I

EXECUTIVE SUMMARY

Break the Silence (BTS) Music Store is a retailer of musical instruments

and accessories located at Maniki, Kapalong, Davao del Norte. BTS will be the

first music destination hub in the locality that will cater all types of music

enthusiasts from beginner to pro, and the place to go for all musicians and

educators. From these group, there are different segments ranging from

professionals to semi-professionals, then to hobbyists and novices, from

different sectors like church, school and individuals within the municipality of

Kapalong.

Break The Silence (BTS) Music Store is a partnership form of business

where the business location will be at 2nd Floor Paseo del Carmen Building

Purok 5, Manki, Kapalong, Davao del Norte in front of Kapalong College

Agriculture of Sciences and Technology. It will be a better option for the

business since it is located at the heart of the municipality. The store is open

from 8:00 am – 5:00 pm, Mondays – Saturdays.

The proponents conducted personal interview from churches, schools

and individuals in Kapalong, Davao del Norte province as they would be the

future target market. The Municipality of Kapalong has a total household of

17,150. A 150 individual sample from the said household was taken using a

quota sampling in getting the market demand of the said location. The survey

resulted a positive upshot noting that majority of the respondents are musically

inclined. 89% out of 150 respondents who are into music would prefer to buy

additional musical instruments, and 11% opted on not to avail for another
 2

musical instruments. The 32% of the 89% of the respondents are from church

band, 20% are band members and 48% are hobbyist and soloist. From the 89%

of those respondents who opted to buy musical instruments, 47% has an

annual income ranging from 201,000 – 300,000, 26% ranging from 101,000 –

200,000, 21% are those respondents who has an annual income ranging from

301,000 – up, and the remaining 5% are those who have annual income below

100,000. Break the Silence will be operating with three (3) personnel who will

be in-charge in entertaining the customers and giving them the best customer

service experience. The manager will be in charge to oversee and handle the

day-to-day operations, as well as the purchasing activity.

The business capitalization will be acquired from the partnership

amounting to ₱1,000,000 which will be equally shared by the partners. All

business transactions will be properly recorded to monitor the proper business

transaction flow for the entire operation. Proper management of financial

statement is significant in the business to evaluate and measure the business

performance and stability.

 3

Chapter II

GENERAL COMPANY DESCRIPTION

Break the Silence (BTS) Music Store is a retailer of musical instruments

and accessories located at Maniki, Kapalong, Davao del Norte. BTS will be a

partnership type and will be managed by two (2) managing partners, and three

(3) store personnel. The business will be guided by the vision, mission, goals,

and objectives in every decision that they are going to make.

Break the Silence will distinguish itself from its direct

competitors by marketing the store’s educational approach and become one of

the most hands-on music store layouts of its type in town. The business will

cater all types of music enthusiasts from beginner to pro, and the place to go

for all musicians and educators. Break the Silence will strive to be known for its

complete line of quality musical instruments, expertise in musical instrument

handling, friendliness, respect, and personalized customer care. Customers are

their friends and the business will be built on sincere gratitude for those

relationships by valuing the real-world experience of playing a musical

instrument from product quality, to repairs, and sales. Every instrument the

business provides is set-up and ready to play. Its integrity is over-the-top and

will do the right thing for the customers, and then take it a step further.

Vision

Break the Silence aims to be known for giving opportunity to all music

enthusiasts who operate not just in Kapalong but in whole Davao region, and

in other neighboring cities to explore and unleash potentials by retailing quality

musical instruments at reasonable prices.

 4

Mission

Break the Silence aims to become a destination music hub by providing

quality musical instruments that allow aspiring and performing musician to

create better music, and bring that music to the audience in an effective and

passionate way. BTS considers their staff and partners, as they prosper

equitably with the growth and success of the company.

Goals

Break the Silence is committed and dedicated to serve as partner of the

aspiring and performing musician from beginners to pro by proving quality

musical instruments and build good relationship to get the loyalty of their

customers. Also, to be known in terms of offering quality musical instruments in

a reasonable price in Davao Region.

Objectives

1. Established a reliable destination music hub in a year;

2. Install guitar room for sound checking and testing.

3. To make the business become sustainable by increasing its sales by 5%

annually;

4. Open job opportunities for additional manpower for branch extension at

nearby municipalities after 2 years of operation.

Business Philosophy

Break the Silence Music Store values to have a culture of appreciation

that is nurturing for beginners, and motivating for musicians of all levels. The

business is to connect people to get what they desire according to their

preferences on musical instruments in terms of style, budget and genre. Break

the Silence is committed to deliver premium musical instruments at a fair price

 5

with an assurance of reliable and satisfactory customer service for customer

satisfaction.

Legal Form of Ownership

Break The Silence (BTS) Music Store is a partnership form of business.

Each partner are capitalist-industrial partners who will equally engage their

time, effort, knowledge and resources for the business operations. Partners

could be a representative, as such, any agreements or contracts that will be

entered into by a partner in connection to the business are bonded to each

parties. Partners will share equally the profits that they will gain or loss incurred

during the operation. Furthermore, each partner will be equally responsible for

all debts and obligations to be incurred in the partnership.

 6

Chapter III

PRODUCTS AND SERVICES

Break The Silence (BTS) Music Store will sell new musical instruments

and accessories. Its primary items will be brand new band and orchestral

instruments, electric and acoustic guitars, and amplifiers and electronic

keyboards. In addition, they will have a full service set-up, on-site repair, and

customization as to band instruments, guitars and electronics.

Description of Products and Services

Break The Silence will offer several name brand instruments such as:

 A large selection of band instruments by Gibson, Fernando,

Yamaha, Fender, Premier, Global and Premier;

 Electric and acoustic guitars including Yamaha, OM Sounds,

Fender, Ibanez, and Jackson;

 Amplifiers by Roland, Cort, and Fender to support guitar sales;

 Keyboards by Davis, Global, and Premier; and

 A very well stocked accessory hub to support the above items.

In addition to the repair services of the products, the business will

highlight, upgrades, and customize items to cultivate other income streams that

competitors may have not considered. When carrying a brand name, Break the

Silence will always pursue product that best suits the client’s interest.

Competitive Advantage

Aside from the musical instruments that Break the Silence will be

providing, the business will offer additional services in which competitors have

not done before, such as full service set-up, on-site repair and customization
 7

as to band instruments, guitars and electronics. Break the Silence will keep

their hub well-stocked that will accommodate the customers’ need in terms of

accessories, which is just a tiny detail, yet, needed every now and then. Lastly,

musical instruments cannot be fully enjoyed without knowledge and

experience. With this, the store is fully equipped with a musically inclined and

friendly personnel who can assist the customers anytime.

Pricing Structure

The plan on pricing structure requires that all merchandise be clearly

marked with fair, and street-value price. The business will apply the cost-plus

pricing strategy wherein the price is set from adding a small margin or 45%

mark-up to the costs of producing the products which will cover the all

expenses. The price will depend on the cost that the products are being

purchased.
 8

Table 1. Pricing Structure

BREAK THE SILENCE MUSIC STORE

PRICING STRUCTURE
PURCHASE
PARTICULARS PRICE MARK UP SELLING PRICE
AMPLIFIER - BASE 1,600.00 720.00 2,320.00
AMPLIFIER - GUITAR 1,500.00 675.00 2,175.00
DRUMSET 8,500.00 3,825.00 12,325.00
GUITAR - ACOUSTIC 1,400.00 630.00 2,030.00
GUITAR - BASE 2,850.00 1,282.50 4,132.50
GUITAR - ELECTRIC 2,300.00 1,035.00 3,335.00
KEYBOARD - GLOBAL 2,350.00 1,057.50 3,407.50
KEYBOARD - PREMIER 5,500.00 2,475.00 7,975.00
ACCESSORIES
DRUMSTICK 60.00 27.00 87.00
GUITAR STRAP 100.00 45.00 145.00
GUITAR EFFECTS 1,300.00 585.00 1,885.00
MIXER 2,500.00 1,125.00 3,625.00
KEYBOARD STAND 600.00 270.00 870.00
CYMBALS, PRIMIER 650.00 292.50 942.50
GUITAR TUNER 400.00 180.00 580.00
GUITAR CASE 350.00 157.50 507.50
GUITAR CORD 150.00 67.50 217.50
GUITAR PICK 7.50 3.38 10.88
GUITAR STRING (SET) 110.00 49.50 159.50
GUITAR STRING # 6 30.00 13.50 43.50
GUITAR STRING # 5 20.00 9.00 29.00
GUITAR STRING # 4 15.00 6.75 21.75
GUITAR STRING # 3,2,1,0 10.00 4.50 14.50
GUITAR CAPO 120.00 54.00 174.00
 9

Chapter IV

MARKETING PLAN

In musical industry, consumers are looking for large selections, timely

and knowledgeable service and good quality value which also promotes their

awareness and enjoyment of the products. By word of mouth, they tend to find

stores offering these benefits. With this, Break the Silence wants to address

this concern by providing them musical instruments that will meet their

preferences.

Market Research

The study was conducted through a personal interview with the

respondents relevant to the business. The proponents gathered relevant

information which were the bases for the product and services development.

The proponents have considered the variables that can influence the operation

of the business.

Furthermore, the business conducted a survey to determine their target

market. They visited different locations and collected information from

churches, schools and individuals in Kapalong, Davao del Norte, as they would

be the future target market.

The Municipality of Kapalong has a total household of 17,150. A 150

individual sample from the said household was taken using a quota sampling

in getting the market demand of the said location. The survey resulted a positive

upshot noting that majority of the respondents are musically inclined. Where

89% out of the 150 respondents who are into music would prefer to buy

additional musical instruments and 11% opted not to avail for another musical
 10

instruments. The 32% of the 89% of the respondents are from church band,

20% are band members and 48% are hobbyist and soloist. From the 89% of

those respondents who opted to buy musical instruments, 47% has an annual

income ranging from 201,000 – 300,000, 26% ranging from 101,000 – 200,000,

21% are those respondents who has an annual income ranging from 301,000

– up and the remaining 5% are those annual income below 100,000.

89%

11% 32%
48%

20%
89%

CHURCH
opted to buy opted not to buy

Figure 1. Target Market

Figure 1 shows that based on the survey, 89% of the total respondents

opted to buy another musical instruments and 11% opted not to buy. Out of

89%, 32% of it are respondents who are members of the church music team,

20% are members of the commercial band or has a group band, and 48% are

hobbyist/soloists.
 11

ACCESSORIES GUITAR
31% 40%

DRUMS
10%
KEYBOARD
19%

Figure 2. Products that Customers Opted to Buy

Figure 2 shows that based on our survey, out from 89% of the total

respondents opted to buy another musical instruments, 40% wanted to buy

guitar, 19% preferred keyboards, 10% opted for drums, and the remaining 31%

for the accessories.

7%
4%

YES
NO

89% MAYBE

Figure 3. Probability to Visit Music Store in Kapalong

 12

Figure 3 shows the percentage of the respondents when being asked if

they preferred to visit or buy musical instruments once a particular business will

be established in the municipality of Kapalong. As such, 89% of the

respondents affirmed on the given proposition.

19% 15%

ONCE A YEAR
21%
QUARTERLY
NEVER

45% MONTHLY
BI-MONTHLY

Figure 4: Frequency of Buying Accessories

Figure 4 shows the frequency of the respondents in buying accessories

for replacement or enhancement of their musical instruments.

Market Structure

The ideal market structure for the business would be a perfect

competition even though it would be the first music store in the municipality, but

sooner the rise of competitors will be anticipated. Since music enthusiast would

prefer to look for a particular brand and quality of the music instruments as

much as the price, the business then would match to be a monopolistic

competition.
 13

Economics

Annual Income
11%
21% 5%
26%

89%
48%

opted to buy opted not to buy BELOW 100K 101K-200K

Figure 5. Market Demand

Figure 5 shows the percentage of the target market in terms of their

annual income. Out of 89% of those respondents who opted to buy musical

instruments, 48% has an annual income ranging from 201,000 – 300,000, 26%

ranging from 101,000 – 200,000, 21% are those respondents having an annual

income ranging from 301,000 – up, and the remaining 5% are those annual

income below 100,000. Based on the survey, the data shows the capacity of

the target market to avail or to buy the products.

 14

Table 2. Marke Share

COMPETITORS SALES MARKET SHARE

MUSIC WORLD 1,222,200.00 8%
NCCC MALL 1,531,800.00 9%
BETTER COMPONENT 6,000,000.00 37%
CEBU GUITARS 2,862,000.00 18%
GAISANO MALL 2,742,000.00 17%
BREAK THE SILENCE 1,843,530.00 11%
TOTAL PROJECTED INDUSTRIAL SALES 16,201,530.00 100%

Table 6 shows the market share status of Break the Silence as well as

its competitiors. The total annual projected industrial sales of the comepetitors

including the Break the Silence will sum up to 16,201,530. The result of

projected sales of every competitors was gathered based on the actual

interview of each music store owners. The first in rank is the Better Components

which owns the 37% of the market share that has an annual projected income

of 6,000,000.00. They dominate the market because they are the only music

store in Davao del Norte that possessed a certificate to join government

bidding. Majority of their sales are on bidding scheme. Second in rank is the

Cebu Guitars that garnered 18% of the market share with an annual projected

income of 2,862,000.00, and Gaisano Mall is on the 3rd spot which owns 17%

of the market share and has an annual projected income of 2,742,000.00. Break

the Silence is on the 4th rank that owns 10% of the market share and has a

projected annual sales of 1,843,530.00, followed by NCCC Mall that owns 9%

market share with an annual projected income of 1,531,800.00 and on the last

spot is Music World that owns 8% market share and has an annual projected

income of 1,222,200.00.
 15

Product and Services

Break the Silence will be a retailer of quality musical instruments and

accessories for those aspiring and performing musicians. Before distributing

the product, the manager will see to it that all the products are in condition and

serviceable to avoid necessary complaints from the customers. In addition, the

customer will be oriented regarding the manual operations of the products and

offer warranty in terms of any defects and malfunctions. Lastly, to help the

business to develop, the customers will be given a customers feedback form

that will serve as basis for improvement.

Customers

The business will offer musical instruments and accessories to all

aspiring and performing musicians in all ages that will meet their preference

and bring customer satisfaction. From these group, there are different

segments, ranging from professionals to semi-professionals, to hobbyists and

novices from different sectors like church, school, and individuals within the

municipality of Kapalong.

SWOT Analysis

The internal factors such as strength and weaknesses allow the

business to determine how the efficiency of the operations can be enhanced or

maximized. The business will also consider and concentrate on the sector that

is required to improve and expand. On the other hand, external factors, such

as threat and opportunities, would help the business recognise the advantages

and disadvantages that will become a challenge to current rivals in the market.
 16

Table 3. SWOT Analysis

8Ps STRENGT WEAKNESS OPPORTUNITY THREAT

H
Price Reasonable Varying Price Introduction of Easily
Price new products affected due
to suppliers
and
shipment fee
increase
Product/ Quality Replacement Availability of Entrants of
Services Product of products newer and Japan
due to factory upgraded Surplus
Passed the defects. products Products
quality
assurance

Brand new
Promotion Bundled Discounts Local music Negative
products cannot be festivals Criticism/Fe
can be easily given as sponsorships edback due
offered price are to defective
easily already fixed products
from
suppliers
People Hard Tardiness Seminars and Employee
working and workshops on Turn-over
product music education due to other
oriented and musical job
instruments opportunities
Place Accessible Flood Prone Commercial Rental fee
area center in increase
municipality
Process Sound Delay in Training for music Delayed
checking assembling instruments Shipment
and due to orientation and due to
assembling incomplete direction fortuitous
accessories events
from suppliers
Physical Business Narrow alley to Expansion of the Leasehold
Evidence Permits and going to the space intended improvement
Licenses store for testing room contract with
installation the owner of
Air- the building
conditioned
Presence of
Space for competitors
testing and with better
sound store design
checking
 17

Productivity Premium Pre-ordered Adaptation of Product

Quality products may newly introduced damage
products cause delay high end products upon
and reliable delivery
services

Niche

Break the Silence is the first music store to be introduced in the

municipality of Kapalong that will offer quality musical instruments intended for

musically inclined individuals from novices to professionals from church music

team, commercial band members, as well as soloist/hobbyist.

The business has well oriented staff who will help the customers by

introducing products that will meet their needs according to their preferences.

The business will offer warranty to the products and will cater on site repairs,

full service set-ups, and band customization. This is to ensure that our

customers will have a satisfying and unforgettable buying experience.

Strategy

Break the Silence will utilize Omni Chanel strategy that will respond and

adapt to evolving technologies that will create a better retail experience for their

customers, build more effective supply chains, and drive sales and traffic. This

is a multi-channel approach to sales that focus on providing continuous

customer experience. Break the Silence will remove barriers that would

otherwise keep musicians from learning more about their products and interfere

with potential purchases by bringing everything together in one convenient

location. Through this, the business will attract its customers with immersive
 18

experiences that build relationships, offer a sense of community, and impart

loyalty among the musicians.

Promotion

The store allows it customers to experience products in a very personal

and tangible way to feel like rock in the store experience, which is one way of

promoting the products and services. The business will provide a testing space

where customers enhance the playable experience by allowing musicians to try

out the products they want. Also, the business offers a free set –up and

customization according to the customer’s preferences which will be offered

among the first time customers. Anything advertised by the business inclosing

their rates, location, business hours, contact numbers and promotions will be

shared on their social media account as well as tarpaulins and signage. The

business recognizes that the easier they make things for their customers, the

more appreciation they will get from the customers, for the customers will feel

that they are valued.

Promotional Budget

It is important for the business to promote its product or service offered,

as well as the name of the business considering it is new. As shown in the Table

3, promotional budget and its promotion will be implemented for five (5) years

as reaching its goal to build strong market presence in the municipality of

Kapalong. During the first two years, the company allocated P4, 500.00 for the

promotional budget and the business allocated an additional budget amounting

to P3,000.00 for the local radio advertisement on its 3rd year of operation, and
 19

on its 4th year, the business adds another 1,200.00 for the signage and tarpaulin

which will be utilized for the next two years.

Table 4. Promotional Budget

Particulars Amount

Tarpaulin (3x4) ₱1,500

Signage/Flyers ₱3,000

Total ₱4,500

Year Amount

1 4,500.00

2 4,500.00

3 7,500.00

4 8,700.00

5 8,700.00

Distribution Channel

The business will have a direct marketing where business transaction

happens from the business office, and directed to the customers. The company

will communicate directly with consumers, which will provide a good rapport

between the business and customers.

Break The Silence Customer

Figure 6. Distribution Channel

 20

Location

The proposed location of the business will be at 2nd Floor Paseo del

Carmen Building Purok 5, Manki, Kapalong, Davao del Norte, in front of

Kapalong College Agriculture of Sciences and Technology. The business

chose this location because it is accessible and the store has a spacious

ambiance for the customer’s convenience.

Sales Forecast

The sales projection will be based on the demand of supply of the

products. The partners will come up with 1,843,530.00 sales for year 1 based

on the market demand of the respondents as the basis for the first year

forecasting, 1,935,706.50 for year 2, 2,032,491.83 for year 3, 2,134,116.42for

year 4 and 2,240,822.24 for year 5 with 5% increase per annum. (See

Appendix 4)

Table 5. Sales Forecast

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES 1,843,530.00 1,935,706.50 2,032,491.83 2,134,116.42 2,240,822.24

 21

Chapter V

OPERATIONAL PLAN

Process

Retail store managers often handle purchasing duties for their specific

outlets. Retail employees regularly take stock of the inventory they have on

hand, including goods on the shelf, as well as inventory in storage areas.

Inventory handling duties can be a part of everyone's job in a retail store which

begins with receiving shipments that includes unpacking boxes, sorting

received items, and disposing of boxes and packing materials. After the stocks

have been organized, the store will be ready to serve the customers according

to their needs. Store personnel will perform their duty to be based on their job

description such as in-store assistants by helping customers to find what they

are looking for without hassle. Also the process of transaction from summing

up transaction totals, accepting payments and packaging items for the

customers to take home.

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Process Flow Chart

START

PURCHASING

STOCKS
INVENTORY

STOCKS
ORGANIZING

CUSTOMER
SERVICE

END

Figure 7. Process Flow Chart

 23

Location

The proposed location of the business will be at 2nd Floor Paseo del

Carmen Building Purok 5, Manki, Kapalong, Davao del Norte in front of

Kapalong College Agriculture of Sciences and Technology. The business

chose this location because it is accessible and the store has a spacious

ambiance for the customer’s convenience. It will be a better option for the

business since it is located at the heart of the municipality.

BTS
DD

Figure 8. Store Location

 24

Floor Plan

Figure 9. Store Floor Plan

 25

Legal Environment

Break the Silence will operate lawfully with compliance to the

government regulations and requirements in order to avoid business

operation’s threats, complaints, and legal inferences. The name Break the

Silence must be legally registered from the Security and Exchange

Commission. In addition, the business must comply the necessary

requirements such as securing Barangay Clearance and Business Permits

from the Mayor's Office, and acquiring certificates from the Bureau of Internal

Revenue (BIR) upon registration. The business will also comply the

requirements in order to secure certification from Bureau of Fire Protection and

Health Sanitation.

Personnel

Break the Silence is a business that is manageable which does not need

too much workforce. The overall operation, purchasing activity and monitoring

of the daily operation, will be personally managed by the partners. In addition,

the business will require 1 (one) cashier, and 2 (two) sales attendant with the

special skills as technician, in order to accommodate the customers in terms of

technical assistance, and can also orient the customers regarding the product

function aside from the encrypted manual. They will be reporting to the store

from 8 a.m – 5 pm from Mondays – Saturdays.

Inventory

Inventory handling duties can be a part of everyone's job in a retail store.

Handling begins with receiving shipments, which includes unpacking boxes,

sorting received items, disposing of boxes, and packing materials. Store

 26

employees store new inventory items according to store policies and restock

inventory when reaching 25% of the total desired ending inventory.

Supplier

The business will have various suppliers who are producers of musical

instruments and accessories to have a better option if ever one supplier fails to

store the needed products. The business chose suppliers from Davao City

where it will save the cost and the travelling time; yet, still offer a reasonable

price.

Table 6. Suppliers

SUPPLIER ADDRESS CONTACT NUMBER

Dr #1 Fran Jr. Bldg., J.P

JVS Audio System Laurel Ave. Bajada, 0942-347-9588
Davao City 8000
Dr 8 ECMC Bldg. 1 SM
JCKA Music Village, Bangkal 0910-389-9604
Davao City 8000
Juan Luna cor. Juan
Better Components Inc. Dela Cruz St., 082-225-4155
Poblacion District
Davao City 8000
Yamaha Music Store YLH Building M.Busan 082-225-3242
and School Networks St. JP Laurel Ave.
Davao City
Ecoland Subdivision,
JB Music Quimpo Boulevard cor. 082-297-8266
Tulip, Davao City 8000
 27

Chapter VI

MANAGEMENT AND ORGANIZATION

Organizational Structure

Break the Silence will be operating with three (3) personnel who will be

in-charge in entertaining the customers, and giving them the best customer

service experience. The manager will be in-charge to oversee and handle the

day-to-day operations, as well as the purchasing activity.

MANAGER/OWNER

CASHIER

Sales Sales Attendant

Attendant/Technician /Technician

Figure 10. Organizational Structure

 28

Job Description and Qualification

Table 7. Job Description and Qualification

JOB JOB DESCRIPTION JOB QUALIFICATION

POSITION

 Receive payments  Ability to handle

Cashier and issue receipts transactions accurately
 Keep track all cash and responsibly.
transactions  High level of energy with
 Assist customers in strong customer
the in-store check- service skills.
out process  Basic math and comput
er skills
 Graduate of any
Business related course
 Provides customer  Have strong customer
Sales service in a retail service and people
Attendants setting skills.
 Setting up product  Musically oriented and
displays with know how to play
 Answers questions musical instruments
from and provides  At least a Senior High
information to School Graduate
customer about
product for sale.
 Obtains
merchandise from
stockroom when
merchandise is not
on floor.
 29

Professional and Advisory Support

Since the business deals with merchandise retailing, it is necessary to

seek for a professional and advisory support in order to have a check and

balance in the operation, and to monitor and maintain the financial stability of

the business. With this, the business will seek support from a bookkeeper who

will maintain and check the financial transaction of the business as form part of

the compliance in terms of the obligations with the Bureau of Internal Revenue.

In addition, as the store implies retailing musical instruments, the

business will also seek professional support from music technician to assist in

providing professional skills in troubleshooting some musical defects related to

the products, as well as in giving demonstration on how to maintain and use the

product with care.

 30

Chapter VII

FINANCIAL PLAN

The significance of financial planning in a business is, it controls and

monitors the cash inflows and outflows which help to determine how much the

business needs to allocate for expenditure, and what strategies need to

generate income which compensate all the expenses. Generally, this aspect

provides the status of the business, and it determines if the business is

profitable enough in its operation.

Start-up Costs and Capitalization

Particulars Amount (in peso)

Prepaid Rent (3 months) 30,000.00

Office Equipment 18,200.00

Furniture & Fixtures 25,000.00

Promotion 4,500.00

Taxes and Licenses 5,000.00

Transportation XX 3,000.00

Total Start Up Cost 82,700.00

Working Capital 917,300.00

Start- up Cost and Capitalization 1,000,000.00

 31

Important Assumption

 Sales Forecast will increased by 5% annually. (Appendix 4)

 Cost of Sales will increased by 5% annually. (Appendix 5)

 Depreciation Expense is computed using straight line method.

(Appendix 3A)

 Rent Expense will increase by 2% each year. (Appendix 3B)

 Utilities Expense assumes to increase by 2% annually. (Appendix 3C)

 Repairs and maintenance will increase by 2% per year. (Appendix 3D)

 Salaries and Wages will increase by 3% per annum. (Appendix 3E)

 Promotional Expense will remain constant on the first two years of

operation and will have an additional allocation of 3,000.00 on its 3rd year

for the local radio advertisement and 1,200.00 additional budget for the

signage for the next two years (Appendix 3F)

 Transportation Expense will increase by 2% annually. (Appendix 3G)

 Professional Expense will increase by 2% annually. (Appendix 3H)

 Store Supplies will increase by 2% per annum. (Appendix 3I)

 Taxes and Licenses will be 25% of increase per year of business

operation. (Appendix 3J)

 Withdrawals of partners will be 10% from the net income per year.

Source of Fund

The business will have a P1,000,000.00 start-up capital where both

partners of the business will contribute P 500,000.00 each from their own

money as form part of their cash investments.

 32

Projected Five Year Balance Sheet

BREAK THE SILENCE MUSIC STORE

PROJECTED FIVE YEAR STATEMENT OF FINANCIAL POSITION

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ASSET
Current Asset
Cash 1,542,421.30 1,844,576.91 2,146,199.70 2,479,450.02 2,836,379.34
Total Current Asset 1,542,421.30 1,844,576.91 2,146,199.70 2,479,450.02 2,836,379.34

Non-Current Asset
Furniture and fixtures 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
Less: Accumulated Depreciation-F&F (5,000.00) (10,000.00) (15,000.00) (20,000.00) (25,000.00)
Office Equipment 18,200.00 18,200.00 18,200.00 18,200.00 18,200.00
Accumulated Depreciation-Equipment (3,640.00) (7,280.00) (10,920.00) (14,560.00) (18,200.00)
Total Non-Current Asset 34,560.00 25,920.00 17,280.00 8,640.00 -
TOTAL ASSETS 1,576,981.30 1,870,496.91 2,163,479.70 2,488,090.02 2,836,379.34

LIABILITIES
Tax Payable 186,123.00 199,588.53 212,794.24 236,281.65 261,210.26
Total Current Liabilities 186,123.00 199,588.53 212,794.24 236,281.65 261,210.26

OWNERS' EQUITY 1,390,858.30 1,670,908.38 1,950,685.45 2,251,808.37 2,575,169.08

TOTAL LIABILITIES AND OWNER'S EQUITY 1,576,981.30 1,870,496.91 2,163,479.70 2,488,090.02 2,836,379.34

The Statement of Financial Position of the business shows that the

projected 5 year total assets, liabilities and owner’s equity are increasing by

84% on its 2nd year, 86% on its 3rd year, 87% on its 4th year, and 88% on its 5th

year of operation respectively. It shows that the business has a good financial

standing.
 33

Projected Five Year Income Statement

BREAK THE SILENCE MUSIC STORE

PROJECTED FIVE YEAR STATEMENT OF FINANCIAL PERFORMANCE

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Sales
Net Sales 1,843,530.00 1,935,706.50 2,032,491.83 2,134,116.42 2,240,822.24
Less: Cost of Sales 550,500.00 578,025.00 606,926.25 606,926.25 606,926.25
Gross Profit 1,293,030.00 1,357,681.50 1,425,565.58 1,527,190.17 1,633,895.99

Less: Operating Expenses

Depreciation Expense 8,640.00 8,640.00 8,640.00 8,640.00 8,640.00
Rent Expense 120,000.00 122,400.00 124,848.00 127,344.96 129,891.86
Utilities Expense 72,000.00 73,440.00 74,908.80 76,406.98 77,935.12
Repairs and Maintenance 12,000.00 12,240.00 12,484.80 12,734.50 12,989.19
Salaries and Wages 427,680.00 440,510.40 453,725.71 467,337.48 481,357.61
Promotional Expense 4,500.00 4,500.00 7,500.00 8,700.00 8,700.00
Transportation Expense 3,000.00 3,060.00 3,121.20 3,183.62 3,247.30
Professional Fees 12,000.00 12,240.00 12,484.80 12,734.50 12,989.19
Supplies Expense 2,800.00 2,856.00 2,913.12 2,971.38 3,030.81
Taxes and Licenses 10,000.00 12,500.00 15,625.00 19,531.25 24,414.06
Total Operating Expense 672,620.00 692,386.40 716,251.43 739,584.67 763,195.12
Earnings before income tax 620,410.00 665,295.10 709,314.14 787,605.50 870,700.86
Income Tax (30%) 186,123.00 199,588.53 212,794.24 236,281.65 261,210.26
Net Income 434,287.00 465,706.57 496,519.90 551,323.85 609,490.60

The Projected Statement of Financial Performance of the business

illustrates the amount of money a business earned within a specified time

span. In this illustration, it shows that during its 5 years of operation, the

business is earning and increasing every year. This implies that the business

runs smoothly during its operation.

 34

Projected Five Year Statement of Changes in Owners’ Equity

BREAK THE SILENCE MUSIC STORE

PROJECTED STATEMENT OF CHANGES IN OWNER'S EQUITY

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Owners' Equity Beginning 1,000,000.00 1,390,858.30 1,670,908.38 1,950,685.45 2,251,808.37
Add: Net Income 434,287.00 465,706.57 496,519.90 551,323.85 609,490.60
Total 1,434,287.00 1,856,564.87 2,167,428.28 2,502,009.30 2,861,298.98
Less: 10% Withdrawal 43,428.70 185,656.49 216,742.83 250,200.93 286,129.90
Owners' Equity End 1,390,858.30 1,670,908.38 1,950,685.45 2,251,808.37 2,575,169.08

Statement of Changes in Owner’s Equity shows the amount of cash the

business would have on hand if all of the assets were liquidated and liabilities

were paid off. In this illustration, the business has a good credibility to be

considered in case the business will borrow additional money for business

operations, because its owner’s equity is increasing every year.

 35

Projected Five Year Cash Flow

BRING THE SILENCE MUSIC STORE

PROJECTED FIVE YEAR CASH FLOWS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CASH FLOW FROM OPERATING ACTIVITIES
Earnings before tax 620,410.00 665,295.10 709,314.14 787,605.50 870,700.86
Add: Depreciation Expense 8,640.00 8,640.00 8,640.00 8,640.00 8,640.00
Cash paid for income tax (186,123.00) (199,588.53) (212,794.24) (236,281.65)
Net Cash Provided by Operating Activities 629,050.00 487,812.10 518,365.61 583,451.26 643,059.21

CASH FLOW FROM INVESTING ACTIVITIES

Cash to Acquire Office Equipment (18,200.00)
Cash to Acquire Furniture and Fixtures (25,000.00)
Net Cash Provided by Investing Activities (43,200.00)

CASH FLOW FROM FINANCING ACTIVITIES

Cash Provided by the Owners 1,000,000.00
Cash from Withdrawals (43,428.70) (185,656.49) (216,742.83) (250,200.93) (286,129.90)
Net Cash Provided by Financing Activities 956,571.30 (185,656.49) (216,742.83) (250,200.93) (286,129.90)

Increase/Decrease in Cash 1,542,421.30 302,155.61 301,622.78 333,250.33 356,929.32

Add: Cash, Beginning 1,542,421.30 1,844,576.91 2,146,199.70 2,479,450.02
Cash, End 1,542,421.30 1,844,576.91 2,146,199.70 2,479,450.02 2,836,379.34

The cash flow statement illustrates where the company's cash is

distributed. It is the movement of cash into and out of the business. The

Projected Five Year Cash Flow displays that the business has sufficient cash

and is increasing every year. It implies that the business is doing well and has

a good financial status.

 36

Financial Ratio

BREAK THE SILENCE MUSIC STIORE

PROJECTED FINANCIAL RATIOS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Net Income 434,287.00 465,706.57 496,519.90 551,323.85 609,490.60
Gross Profit 1,293,030.00 1,357,681.50 1,425,565.58 1,527,190.17 1,633,895.99

Net Profit Ratio 34% 34% 35% 36% 37%

Net Income 434,287.00 465,706.57 496,519.90 551,323.85 609,490.60

Total Assets 1,576,981.30 1,870,496.91 2,163,479.70 2,488,090.02 2,836,379.34

Return on Asset 28% 25% 23% 22% 21%

Net Income 434,287.00 465,706.57 496,519.90 551,323.85 609,490.60

Total Investmet 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00

Payback Period 0.43 0.47 0.50 0.55 0.61

The company's payback is in 2 years and 5 months of operation

Financial ratios are useful indicators of a business performance.

Break the Silence Music Store financial ratios will be calculated from the

information provided by the business financial statements. In this illustration,

the company’s payback period is 2 years and 5 months of operation.

 37

APPENDICES

Appendix 1

Business Logo

Appendix 9

Appendix 2

Business Tarpaulin
 38

Appendix 3

Projected Operating Expense

A. Depreciation Schedule

A.1. Furniture and Fixtures

Useful
Items Cost Life in Year 1 Year 2 Year 3 Year 4 Year 5
Years
Furniture and
Fixtures
12,000.00 5 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Total
Depreciation
Expense 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Accumulated
Depreciation 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

A.2. Office Equipment

Useful
Items Cost Life in Year 1 Year 2 Year 3 Year 4 Year 5
Years

Aircon 16,500.00 5 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00

Water
Dispenser 1,700.00 5 340.00 340.00 340.00 340.00 340.00
Total
Depreciation
Expense 3,640.00 3,640.00 3,640.00 3,640.00 3,640.00
Accumulated
Depreciation 3,640.00 3,640.00 3,640.00 3,640.00 3,640.00

B. Rent Expense

Particular Cost per Month Percentage per Cost Per Year

year
Rent Expense 10,000 2% 120,000.00
 39

Year Amount
1 120,000.00
2 122,400.00
3 124,848.00
4 127,344.96
5 129,891.86

C. Utilities Expense

Particular Cost per Month Percentage Cost Per Year

per year
Electricity Bill 6,000 2% 72,000
Water Bill

Year Amount
1 72,000.00
2 73,440.00
3 74,908.80
4 76,406.98
5 77,935.12

D. Repairs and Maintenance

Particular Cost per Year Percentage per Amount

year
Repairs and 12,000.00 2% 12,000.00
Maintenance

Year Amount
1 12,000.00
2 12,240.00
3 12,484.80
4 12,734.50
5 12,989.19
 40

E. Salaries and Wages

Rate per No. Of Cost per

Paticulars Day Employees Month YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Cashier 396.00 1 11,880.00 142,560.00 146,836.80 151,241.90 155,779.16 160,452.54

Sales
Attendant 396.00 2 23,760.00 285,120.00 293,673.60 302,483.81 311,558.32 320,905.07
TOTAL
SALARIES 427,680.00 440,510.40 453,725.71 467,337.48 481,357.61

F. Promotion Expense

Particulars Amount
Tarpaulin (3x4) ₱1,500
Signage/Flyers ₱3,000
Total ₱4,500

Year Amount
1 4,500.00
2 4,500.00
3 7,500.00
4 8,700.00
5 8,700.00

G. Transportation Expense

Particular Cost per Year Percentage per Amount

year
Transportation 3, 000.00 2% 3, 000.00
Expense

Year Amount

1 3, 000.00

2 3,060.00

3 3,121.20
 41

4 3,183.62

5 3,247.30

H. Professional Fees

Particular Cost per Year Percentage per Amount

year
Professional Fees 12, 000.00 2% 12, 000.00

Year Amount

1 12,000.00

2 12,240.00

3 12,484.80

4 12,734.50

5 12,989.19

I. Supplies Expense

Particular Qty Unit Cost Amount Percentage

per year
Trash Bin (80 L) 1 pc 350.00 350.00 2%

BOND PAPER 5 rms 220.00 1,100.00 2%

(220/rm)

BALLPEN 3 boxes 210.00 630.00 2%

(50's/box)

WATER 48 gals 15.00 720.00 2%

(REFILL)
Total 2,800.00
 42

Year Amount

1 2,800.00

2 2,856.00

3 2,913.12

4 2,971.38

5 3,030.81

J. Taxes and Licenses

Particular Cost per Year Percentage per Amount

year
Taxes and 10,000.00 25% 10,000.00
Licenses

Year Amount

1 10,000.00

2 12,500.00

3 15,625.00

4 19,531.25

5 24,414.06
 43

Appendix 4

Sales Forecast

BREAK THE SILENCE MUSIC STORE

PROJECTED FIVE YEAR SALES FORECAST
SALES VOLUME / SELLING
PARTICULARS MONTH PRICE SALES / MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
AMPLIFIER - BASE 1 2,320.00 2,320.00 27,840.00 29,232.00 30,693.60 32,228.28 33,839.69
AMPLIFIER - GUITAR 1 2,175.00 2,175.00 26,100.00 27,405.00 28,775.25 30,214.01 31,724.71
DRUMSET 1 12,325.00 12,325.00 147,900.00 155,295.00 163,059.75 171,212.74 179,773.37
GUITAR - ACOUSTIC 5 2,030.00 10,150.00 121,800.00 127,890.00 134,284.50 140,998.73 148,048.66
GUITAR - BASE 5 4,132.50 20,662.50 247,950.00 260,347.50 273,364.88 287,033.12 301,384.77
GUITAR - ELECTRIC 5 3,335.00 16,675.00 200,100.00 210,105.00 220,610.25 231,640.76 243,222.80
KEYBOARD - GLOBAL 1 3,407.50 3,407.50 40,890.00 42,934.50 45,081.23 47,335.29 49,702.05
KEYBOARD - PREMIER 1 7,975.00 7,975.00 95,700.00 100,485.00 105,509.25 110,784.71 116,323.95
ACCESSORIES - - - - - -
DRUMSTICK 30 87.00 2,610.00 31,320.00 32,886.00 34,530.30 36,256.82 38,069.66
GUITAR STRAP 10 145.00 1,450.00 17,400.00 18,270.00 19,183.50 20,142.68 21,149.81
GUITAR EFFECTS 5 1,885.00 9,425.00 113,100.00 118,755.00 124,692.75 130,927.39 137,473.76
MIXER 5 3,625.00 18,125.00 217,500.00 228,375.00 239,793.75 251,783.44 264,372.61
KEYBOARD STAND 5 870.00 4,350.00 52,200.00 54,810.00 57,550.50 60,428.03 63,449.43
CYMBALS, PRIMIER 5 942.50 4,712.50 56,550.00 59,377.50 62,346.38 65,463.69 68,736.88
GUITAR TUNER 5 580.00 2,900.00 34,800.00 36,540.00 38,367.00 40,285.35 42,299.62
GUITAR CASE 5 507.50 2,537.50 30,450.00 31,972.50 33,571.13 35,249.68 37,012.17
GUITAR CORD 10 217.50 2,175.00 26,100.00 27,405.00 28,775.25 30,214.01 31,724.71
GUITAR PICK 100 10.88 1,087.50 13,050.00 13,702.50 14,387.63 15,107.01 15,862.36
GUITAR STRING (SET) 100 159.50 15,950.00 191,400.00 200,970.00 211,018.50 221,569.43 232,647.90
GUITAR STRING # 6 100 43.50 4,350.00 52,200.00 54,810.00 57,550.50 60,428.03 63,449.43
GUITAR STRING # 5 100 29.00 2,900.00 34,800.00 36,540.00 38,367.00 40,285.35 42,299.62
GUITAR STRING # 4 100 21.75 2,175.00 26,100.00 27,405.00 28,775.25 30,214.01 31,724.71
GUITAR STRING # 3,2,1,0 100 14.50 1,450.00 17,400.00 18,270.00 19,183.50 20,142.68 21,149.81
GUITAR CAPO 10 174.00 1,740.00 20,880.00 21,924.00 23,020.20 24,171.21 25,379.77
TOTAL SALES 153,627.50 1,843,530.00 1,935,706.50 2,032,491.83 2,134,116.42 2,240,822.24
 44

Appendix 5

Cost of Sales

BREAK THE SILENCE MUSIC STORE

COST OF SALES
PURCHASE
PARTICULARS PRICE MARK UP # OF UNITS TOTAL COST
AMPLIFIER - BASE 1,600.00 720.00 10 16,000.00
AMPLIFIER - GUITAR 1,500.00 675.00 10 15,000.00
DRUMSET 8,500.00 3,825.00 10 85,000.00
GUITAR - ACOUSTIC 1,400.00 630.00 10 14,000.00
GUITAR - BASE 2,850.00 1,282.50 10 28,500.00
GUITAR - ELECTRIC 2,300.00 1,035.00 10 23,000.00
KEYBOARD - GLOBAL 2,350.00 1,057.50 10 23,500.00
KEYBOARD - PREMIER 5,500.00 2,475.00 10 55,000.00
ACCESSORIES -
DRUMSTICK 60.00 27.00 100 6,000.00
GUITAR STRAP 100.00 45.00 100 10,000.00
GUITAR EFFECTS 1,300.00 585.00 10 13,000.00
MIXER 2,500.00 1,125.00 10 25,000.00
KEYBOARD STAND 600.00 270.00 10 6,000.00
CYMBALS, PRIMIER 650.00 292.50 10 6,500.00
GUITAR TUNER 400.00 180.00 10 4,000.00
GUITAR CASE 350.00 157.50 10 3,500.00
GUITAR CORD 150.00 67.50 10 1,500.00
GUITAR PICK 7.50 3.38 1000 7,500.00
GUITAR STRING (SET) 110.00 49.50 1000 110,000.00
GUITAR STRING # 6 30.00 13.50 500 15,000.00
GUITAR STRING # 5 20.00 9.00 500 10,000.00
GUITAR STRING # 4 15.00 6.75 500 7,500.00
GUITAR STRING # 3,2,1,0 10.00 4.50 500 5,000.00
GUITAR CAPO 120.00 54.00 500 60,000.00
TOTAL COST OF SALES 550,500.00
 45

Appendix 6

A. Net Profit Ratio

Net Profit Ratio = Net Income

X 100

Gross Profit

Year 1 = 434,287.00 Year 2 = 465,706.57

X 100 X 100
1,293,030.00 1,357,681.50

= 34% = 34%

Year 3 = 496,519.90 Year 4 = 551,323.85

X 100 X 100
1,425,565.58 1,527,190.17

= 35% = 36%

Year 5 = 609,490.60
X 100
1,633,895.99

= 37%
 46

B. Return on Asset

Return Asset = Net Income

X 100

Total Assets

Year 1 = 434,287.00 Year 2 = 465,706.57

X 100 X 100
1,576,981.30 1,870,496.91

= 28% = 25%

Year 3 = 496,519.90 Year 4 = 551,323.85

X 100 X 100
2,163,479.70 2,488,090.02

= 23% = 22%

Year 5 = 609,490.60
X 100
2,836,379.34

= 21%
 47

C. Payback Period

Net Income

Investment

Year 1 = 434,287.00

Year 2 = 465,706.57

Year 3 = 496,519.90

Year 4 = 551,323.85

Year 5 = 609,490.60

= (434,287.00+465,706.57)-496,519.90/1,000,000.00

= 2.50

The company’s payback period is in 2 years and 5 months of

operation.
 48

Appendix 7

Survey Questionnaire

KAPALONG COLLEGE OF AGRICULTURE SCIENCES AND

TECHNOLOGY

Maniki,, Kapalong Davao del Norte

BREAK THE SILENCE (BTS) MUSIC STORE

Dear Respondents,

Good day! Thank you for voluntarily and agreeing to take part in this

survey. The purpose of this study is to determine the viability and marketability

of a BREAK THE SILENCE Musical Store within the Municipality of Kapalong.

This survey may take minutes to complete. Your responses will be strictly

confidential. Your time and opinion are highly appreciated.

Direction: Encircle your answer in a space provided

1. Do you know how to play musical instruments?

a. Yes

b. No

2. Do you have your own musical instruments?

a. Yes, please specify _____________________

b. No

3. Do you prefer to buy another musical instruments?

a. Yes, please specify ________________________

b. No

4. Where do you prefer to buy your musical instruments?

Please Specify _____________________

 49

5. How often do you buy accessories for your instruments?

a. Monthly

b. Bi-monthly

c. Quarterly

d. Yearly

6. What is your family annual income?

a. Below 100,000.00

b. 101,000 – 200,000

c. 201,000 – 300,000

d. 301,000 and up

7. If there will be a music store in Kapalong, do you prefer to visit or buy

instruments from the store?

a. Yes

b. No

8. What music team do you belong

a. Church music team

b. Commercial Band

c. Hobbyist/Soloist
 50

REFERENCES

https://nwpc.dole.gov.ph/regionandwages/region-xi-davao-region/

https://en.wikipedia.org/wiki/Kapalong

https://www.facebook.com/JB-Music-SM-Davao-City-104452381350037/
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Curriculum Vitae

JAYSON A. DELOS SANTOS

Purok 6 Brgy. San Vicente, Asuncion, Davao del Norte
0912-012-6955
peejay.delossantos93@gmail.com

PERSONAL BACKGROUND
Name : Fidel Jayson A. Delos Santos
Birthdate : September 14, 1993
Birth Place : Purok 6 Brgy. San Vicente Asuncion, Davao Del Norte
Height : 5’3 feet
Weight : 50 kg
Sex : Male
Civil Status : Single
Religion : INC
Nationality : Filipino

EDUCATIONAL BACKGROUND
Primary:
San Vicente Elementary School
San Vicente Asuncion, Davao Del Norte
2004-2005
Secondary:
Kapalong National High School Extension
Maniki, Kapalong, Davao Del Norte
2009-2010
Tertiary:
Kapalong College of Agriculture Sciences and Technology
Maniki, Kapalong, Davao Del Norte
2020 – 2021
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DAVE C. DEGUILMO
Purok 2C Riverside, Sto. Tomas, Davao del Norte
0963-820-2164
davedeguilmo21@gmail.com

PERSONAL BACKGROUND
Name : Dave C. Deguilmo
Birthdate : September 10, 1998
Birth Place : Mamacao, Kapalong, Davao Del Norte
Height : 5’10 feet
Weight : 62 kg
Sex : Male
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino

EDUCATIONAL BACKGROUND
Primary:
Mamacao Elementary School
Mamacao, Kapalong, Davao Del Norte
2010-2011
Secondary:
Sto. Tomas National High School Extension
Tibal.og, Sto. Tomas, Davao Del Norte
2014-2015
Tertiary:
Kapalong College of Agriculture Sciences and Technology
Maniki, Kapalong, Davao Del Norte
2020 – 2021
 53

ROLAND T. ALFARO
Purok 8 San Vicente, Asuncion, Davao del Norte
0930-482-4299
alfaro.lanz20@gmail.com

PERSONAL BACKGROUND
Name : Roland T. Alfaro
Birthdate : March 30, 1988
Birth Place : Purok 8 San Vicente, Asuncion, Davao del Norte
Height : 5’7 feet
Weight : 73 kg
Sex : Male
Civil Status : Single
Religion : UPC
Nationality : Filipino

EDUCATIONAL BACKGROUND
Primary:
Santiago Elementary School
2004-2005
Secondary:
Kapalong College of Technology Inc.
Maniki, Kapalong, Davao Del Norte
2009-2010
Tertiary:
Kapalong College of Agriculture Sciences and Technology
Maniki, Kapalong, Davao Del Norte
2020 – 2021
 54

HAZEL KATE L. BUSTAMANTE

Purok 4 Luna, Kapalong, Davao del Norte
0950-541-5154
bustamantehazelkate102097@gmail.com

PERSONAL BACKGROUND
Name : Hazel Kate L. Bustamante
Birthdate : October 10, 1997
Birth Place : Spring Valley, Buhangin, Davao City
Height : 4’11 feet
Weight : 44 kg
Sex : Female
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino

EDUCATIONAL BACKGROUND
Primary:
Sto. Tomas Central Elementary School (STCES)
Fd. Rd. 3, Sto. Tomas, Davao del Norte
2007-2008
Secondary:
Alternative Learning School (ALS)
2014-2015
Tertiary:
Kapalong College of Agriculture Sciences and Technology
Maniki, Kapalong, Davao Del Norte
2020 – 2021
 55

LUCKY JEAN D. BELLEZA

Purok 2 Sampao, Kapalong, Davao del Norte
0955-475-4209
bellezalucky1992@gmail.com

PERSONAL BACKGROUND
Name : Lucky jean D. Belleza
Birthdate : February 12, 1992
Birth Place : Tagum City
Height : 5’1 feet
Weight : 55 kg
Sex : Female
Civil Status : Married
Religion : Roman Catholic
Nationality : Filipino

EDUCATIONAL BACKGROUND
Primary:
Sampao Elementary School
Sampao, Kapalong, Davao Del Norte
2004-2005
Secondary:
Kapalong College of Technology Inc. (KCTI)
2008-2009
Davao Winchester Colleges Inc. (DWC)
Tibal.og, Sto. Tomas, Davao del Norte
2010-2011
Tertiary:
Kapalong College of Agriculture Sciences and Technology
Maniki, Kapalong, Davao Del Norte
2020 – 2021
 56

DAISY S. GABULE
Purok 5, Brgy. Luna, Kapalong Davao del Norte
0938-184-5821
faithkurtkian@gmail.com

PERSONAL BACKGROUND
Name : Daisy S. Gabule
Birthdate : December 12, 1980
Birth Place : Surigao del Sur
Height : 5’0 feet
Weight : 60 kg
Sex : Female
Civil Status : Married
Religion : Reality of Christ
Nationality : Filipino

EDUCATIONAL BACKGROUND
Primary:
Mangagoy East Elementary School
Bislig, Surigao, Davao del Sur
1992-1993
Secondary:
Andres Soriano College
Bislig, Surigao, Davao del Sur
1996-1997
Tertiary:
Kapalong College of Agriculture Sciences and Technology
Maniki, Kapalong, Davao Del Norte
2020 – 2021