The Business

A. Description of the Business

Our plan is to open a milk tea business that will sell variety of milk tea products

for our customers. Our management team consists of five members. Our team has

the relevant skills and expertise to successfully grow this business. We will market to

our target customers using the following methods: dine-in and take-out services. In

order to get this business off the ground, we require high funds, for the purposes of

place beautification and additional appliances for our business. Our goal is to reach

50,000 pesos in the first month. This milk tea beverage business will operate in the

food industry. Our mission is to serve the best quality of milk tea to our customers,

and our vision is to promote my product to the world market.

B. Marketing

Advertising and promotion are essential to getting the word out about our

business, and we expect to implement this type of marketing strategy, which will

include advertising and promotion of products in the community. This strategy will

enable us to effectively reach our goals and targets.

The various methods we plan to use to communicate our offerings to our target

customers is by radio advertisements, flyers, posters, and online advertisements in

social media platforms. Additionally, we aim to promote our products and services to

our customers by making promos and adding freebies to encourage our customers

to buy our products.

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C. Competition

Currently, our biggest competitors are the Milky Tea (example competitor) and

Milk Tea ni Juan (example competitor). In comparison to what’s offered on the

market, our prices are low, which is our advantage to other competitors.

Here is an estimated comparison of our business to existing competitors:

CATEGORY OUR COMPANY COMPETITOR 1 COMPETITOR 2

Price Level Average High High

Quality High Average Low

D. Operating Procedures

Our physical business locations will be in Barangay Poblacion, Senator Ninoy

Aquino, Sultan Kudarat because it is a populated area and ideal area to start a

business.

E. Personnel

Our production workflow is very easy to follow. Our staffing requirements are

based on the skills we need for our business. Employee training will be provided by

our team for free.

F. Business Insurance

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 Revenues will increase at a rate of 20% during the first 2 months, with an

increase in sales of 20% during the first month. We are deliberately calculating lower

sales projections in order to illustrate a worst-case scenario.

Financial Data

1. Loan Application

Funding for the business is in part from personal loans, credit cards, and cash

investment by the owner. The remainder of funding will be from one to three limited

partners in the form of equity investment.

2. Capital Equipment and Supply

• Automatic Tapioca Pearls Machine

• Snow Ice Machine

• 3 in 1 Blender (Slush, Topping Creamer, Tea Making)

• Fructose Dispenser

• Sealing Machine

• Shaking Machine

• Kitchen Tools

3. Balance Sheet

ASSETS

Year 1 Year 2 Year 3

Cash P 50,O49.00 P 89,582.00 P 121,964.00

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Account Receivable P 24,249.00 P 27,598.00 P 33,501.00

Other Account P 1,000.00 P 1,000.00 P 1,000.00

TOTAL CURRENT P 75,299.00 P 118,180.00 P 15,466.00

ASSETS
LIABILITIES AND CAPITAL

Year 1 Year2 Year 3

Account Payable P 15,171.OO P 16,804.00 P 20,991.00

Current Borrowing P O.OO P 0.00 P 0.00

Other Current P 0.00 P 0.00 P 0.00

Liabilities

Subtotal Current P 15,171.OO P 16,804.00 P 20,991.00

Liabilities

Total Liabilities P 15,171.OO P 16,804.00 P 20,991.00

4. Breakeven Analysis

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5. Pro-forma Income Projection

Gross margin are expected to remain consistent, as most costs of the

business are not direct costs of sales. The greater cost of the service is labor, which is

part of salaries and not cost of sales. In year 2, profit is increased to prepare for

growth. This will rectify in future years as sales come in line with the payroll

expenses.

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6. Pro-forma Cash Flow

Cash flow is expected to be positive after the first month of operation. This is

due to fact that our milk tea products become more popular for its low price and for

its good quality. Cash reserves in the company for additional expansion in two years.

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