DOUBLE J & PHY FOOD PRODUCTS

A Business Plan

Presented to

The Senior High Faculty of Davao City National High School

F. Torres St., Davao City

In Partial Fulfillment

Of the Requirements for the Subject

Entrepreneurship

1st semester/ S.Y. 2016-2017

By

Paula Marielle Elises

Honnie Mae Pilletero

Jan Marini Solamillo

Janelle Mae Dalisay

Yuhaya Abdua

October 2016
 Acknowledgement

This Business Plan would not be possible without the guidance,

supervision and encouragement of the following:

To our Almighty God who always protects and guides our group and the people

involved in the making of this Business Plan.

To our parents who gives us encouragement and inspire us to do our best and

also gives us our financial needs for the making of this Business Plan.

To our subject teacher, Mrs. Leonor B. Castolo, who gave us inputs of knowledge

which greatly helped us in the completion of our Business Plan.

We sincerely acknowledge the ones stated above and is very thankful for

their inputs and efforts which are the reason for the completion and success of

doing this Business Plan.

We are very delighted with this great achievement.

P.M.E.,H.M.P.,J.M.S.,J.M.D.,Y.A.
 Dedication

“We dedicate this Business Plan to our Parents who constantly

support us in everything we do and love us despite our flaws.

To our Friends who gives us the encouragement and support in things we do.

And most especially, to our Almighty God who is the reason for everything. The

One who protects us and guides us from harm and because of this we completed

our Business Plan.”

P.M.E.,H.M.P.,J.M.S .,J.M.D.,Y.A.
 TABLE OF CONTENTS

Acknowledgement -------------------------------------------------------- i

Dedication ---------------------------------------------------------------- ii

Table of Contents -------------------------------------------------------- iii

List of Tables -------------------------------------------------------- vi

List of Figures -------------------------------------------------------- vi

EXECUTIVE SUMMARY ----------------------------------------------- 1

I. BUSINESS BACKGROUND

A. Name of the Enterprise -------------------------------------- 2

B. Brief Description of the Entrepreneurs ------------------- 2

C. Projects Contribution of the Economy -------------------- 3

II. PRODUCT

A. Description of the Product -------------------------------------- 4

B. Comparison to its Competitors ------------------------------------ 4

C. Competitors ------------------------------------------------------------ 5

D. Target Market ---------------------------------------------------------- 5

III. MARKETING PLAN

A. Demand Analysis ------------------------------------------------------ 6

B. Supply Analysis -------------------------------------------------------- 6

C. Future Supply Analysis ----------------------------------------------- 7

D. Market Share ----------------------------------------------------------- 8

E. Marketing Program ---------------------------------------------------- 9

a. Selling and Pricing Strategy -------------------------------- 9

 b. Costing of Raw Materials ----------------------------------- 9

c. Selling Price ---------------------------------------------------- 10

d. Marketing Strategy ------------------------------------------- 10

IV. MANAGEMENT PLAN

A. Business Name --------------------------------------------------------- 11

B. Forms of Ownership -------------------------------------------------- 11

C. Organizational Chart ------------------------------------------------- 11

D. Jobs Description -------------------------------------------------------- 12

E. Jobs Qualification ----------------------------------------------------- 13

F. Gantt Chart --------------------------------------------------------------- 14

V. TECHNICAL PLAN

A. Work Flow Diagram --------------------------------------------------- 15

B. Vicinity Map ------------------------------------------------------------- 16

C. Plant Lay-out ----------------------------------------------------------- 16

D. Equipment and Supplies Needed --------------------------------- 17

a. Equipment ------------------------------------------------------ 17

b. Operating Supplies ------------------------------------------- 17

c. Office Supplies ------------------------------------------------- 17

d. Raw Materials Requirement -------------------------------- 18

e. Waste Disposal Method -------------------------------------- 19

VI. FINANCIAL PLAN

A. Statement of Assumption -------------------------------------------- 19

B. Total Projected Cost ------------------------------------------------- 19

 C. Financers ---------------------------------------------------------------- 20

D. Financial Statement --------------------------------------------------- 20

a. Income Statement --------------------------------------------- 20

b. Operating Supply -------------------------------------------- 20

c. Operating Expenses ------------------------------------------- 21

d. Projected Cash Flow ----------------------------------------- 21

e. Projected Balance Sheet ----------------------------------- 22

VII. CONCLUSION ------------------------------------------------------------ 23

A. Appendices ------------------------------------------------------------- 24
 LIST OF TABLES

1- Demand Analysis ------------------------------------------------------------------- 6

2- Supply Analysis ------------------------------------------------------------------–- 6

3- Future Supply Analysis ------------------------------------------------------------ 7

4- Future Supply Analysis ------------------------------------------------------------ 7

5- Costing of Raw Materials (Choco Yummy) ---------------------------------- 9

6- Production Volume per Day ------------------------------------------------------- 9

7- Production Volume per Month and Year ---------------------------------------- 9

8- Equipment and Utensils----------------------------------------------------------- 17

9- Operating Supplies ----------------------------------------------------------------- 17

10- Office Supplies -------------------------------------------------------------------- 17

11- Total Projected Cost -------------------------------------------------------------- 19

12- Income Statement ----------------------------------------------------------------- 20

13- Operating Supply ------------------------------------------------------------------ 20

14- Operating Expenses --------------------------------------------------------------- 21

15- Projected Cash Flow -------------------------------------------------------------- 21

16- Projected Balance Sheet --------------------------------------------------------- 22

LIST OF FIGURES

1- Market Share ------------------------------------------------------------------------ 8

2- Organizational Chart ---------------------------------------------------------------- 11

3- Work Flow Diagram ---------------------------------------------------------------- 15

4- Vicinity Map -------------------------------------------------------------------------- 16

5- Plant Layout -------------------------------------------------------------------------- 16

 Executive Summary

Double J & PHY Food Products is a newly-built enterprise which will

compete with its competitors to gain a place in the market. The enterprise aims to

capture the economy. This business plan aims to search for ways on how to

establish the business, gather customers and make the business run for a long

time.

Double J & PHY Food Products is a food business that aims to capture

the taste buds of every customers by providing them with tasty and delicious

treats. It is not like any other food business because this business continues to

make new treats.

The business will have different treats that are affordable for it to reach

every customer may it be a child, teen or adult. It will first reach its target market,

Davao City National High School and then when it has gathered enough funds it

will then expand to reach not only people within the DCNHS campus but also

people around Davao City.

 I. Business Background

A. Name of the Enterprise

Double J & PHY Food Products is a business that aims to provide its

customers high quality and delicious treats. We aim to provide food thats sure to

be loved by every customer may it be a child, teen or adult. Our business name

was derived from the initials of all the owners' first name. “Double J” comes from

the names Janelle and Jan. And on the other hand, “PHY” comes from the

names Paula, Honnie and Yuhaya respectively. We aim to create treats that are

new to a person's taste and unique to one's eyes.

B. Brief Profile of the Entrepreneurs

Double J & PHY Food Products is a business owned by five entrepreneurs

namely Paula Marielle Elises, Honnie Mae Pilletero, Jan Marini Solamillo, Janelle

Mae Dalisay and Yuhaya Abdua. Their brief profile are as follows:

Paula Marielle A. Elises is a 17 year old senior high school student of

Davao City National High School. She believes that everything good she plants

now will then be reaped when time comes. A girl who will strive hard to achieve

her dreams, to be able to help her family and those in need.

Honnie Mae P. Pilletero is a student of Davao City National High School

taking up Accountancy and Business Management. 16 years of age. A hard

working student who wants to be a successful businesswoman in the future. She

has a lot of dreams for herself and also for her family.
 Jan Marini Solamillo, a girl studying Accountancy and Business

Managament of the senior high department of Davao City National High School.

Aged 16 years who is a patient and kind girl and believes that everything you aim

for needs hardwork to be achieved.

Janelle Mae Dalisay, a funny and happy-go -lucky 16-year old girl who

believes that a smile is a curve that sets everything straight. She dreams to help

her family someday when she becomes successful in her profession.

Yuhaya Abdua is a student of the same said school also taking up

Accountancy and Business Management. She is a 17 year old teenage girl who

believes that a dream doesn't become reality through magic, it takes sweat,

determination and hard work. She is a hardworking young lady full of dreams,

who will do anything to achieve her dreams, and help her family.

C. Projects Contribution to the Economy

The enterprise “Double J & PHY Food Products” contributes to the

economy by giving jobs to people and also by the tax and the like the business

pays which also helps the economy. It also contributes to the economy that we

innovate new products which are then sold to the market.

 II. Product

A. Description of the Product

Double J & PHY Food Products provides the treat called “Choco Yummy.”

It is a chocolate bar aimed to satisfy one's chocolate cravings. Each treat is made

sure to be at its best quality, made with only the finest ingredients for it to be fit

for a customer of every age. After some time of running the business, the

entrepreneurs will make new flavor combinations for continued custimer

satisfaction.

B. Comparison to its Competitors

Competitors are those businesses with the same or almost the same line

of products. Considering it is a food business, it surely has a lot of competitors,

old and new in the business industry. Double J & PHY Food Products' edge to its

competitors is that it does not only give a treat everyone will love but it provides

them this at a very affordable price. Also, since it is a newly established business,

its products would be new to a customer's taste which will make customers

curious and would want to try the product. In order for Double J & PHY Food

Products to exceed its competitors, it must provide products of a higher quality

than its competitors and the business.

C. Competitors

Putting up a business takes great effort and so does keeping up with the

business competitors. No business has no competitors. As for “Double J & PHY

Food Products”, it has a lot of competitors around its target market. Its direct

competitors are canteen stalls around the DCNHS campus (the enterprise target

market) selling candies and sweet treats. On the other hand, its indirect

competitors are those stores like the school managed canteen that sells other

kinds of food like bananacues, junk food and pancakes which are also numerous

around the campus.

D. Target Market

The enterprise target market would be the Davao City National High

School located at F. Torres St., Davao City. This market has a population of

10,396. The business will serve students, teachers and staff which are inside the

campus. It was decided to be in this area because the entrepreneurs are

studying in this institution and it is easier for them to access people in this area.
 III. Marketing Plan

A. Demand Analysis

Table 1

DOUBLE J & PHY FOOD PRODUCTS

QUANTITY DEMAND FOR THE CURRENT YEAR

YEAR DAVAO CITY NATIONAL QTY. DEMAND AVERAGE

HIGH SCHOOL OF 3 PERSONS/YEAR
POPULATION
2016 10, 396 31188

Source: Davao City National High School Record Office

B. Supply Analysis

Table 2

QUANTITY SUPPLIED FOR THE CURRENT YEAR

YEAR QTY. SUPPLIED AVERAGE OF

50% PER ANNUAL DEMAND
2016 15594
C. Future Supply Analysis

Table 3

DOUBLE J & PHY FOOD PRODUCTS

QUANTITY OF DEMAND FOR A 3-YEAR PROJECTION

YEAR DAVAO CITY NATIONAL QTY. DEMAND

HIGH SCHOOOL AVERAGE OF 3
POPULATION PERSONS/YEAR
2017 11436 34308

2018 12580 37740

2019 13838 41514

It is projected that there will be an increase of 10% in the population of

Davao City National High School each year.

Table 4

QUANTITY OF SUPPLY FOR A 3-YEAR PROJECTION

YEAR QTY. SUPPLIED AVERAGE

OF 50% PER ANNUAL
DEMAND
2017 17154

2018 18870

2019 20757
D. Market Share

Figure 1

Current Total Market Share Distribution for Chocolate Business in Davao

City

25%

40% Malls (4,000)

School Canteens (1,500)
Pastry Shops (2,000)
Sari-sari Stores (2,500)

20%

15%

It is projected that there are 10,000 chocolate businesses in Davao City.

40% which is 4,000 are in malls, 25% or 2,500 are sari-sari stores, 20% which is

2,000 are at school canteens and 15% or 1,500 are pastry shops. Even though

the line of business has many competitors, Double J & PHY Food Products aim

to capture an initial market share of 1% on its first year of operation, 2% increase

on the second year, 3% on the third year of operation and throughout the years a

succeeding increase each year.

E. Marketing Program

a. Selling and Pricing Strategy

Double J & PHY Food Products provides sweet treats at all times

during its business operation. There is a fixed price for every piece of Choco

Yummy which will be affordable but will still give the business profit. The price is

subjectible to change annually. It is ensured by the business that its products are

of high quality and of delicious taste. The business will use 40% mark-up for

every piece sold.

b. Costing of Raw Materials

Table 5

Choco Yummy

The table shows the raw materials used in making the porduct Choco

Yummy and also its corresponding prices at a given quantity unit. These

materials are namely Semi-sweet Chocolate bar and All purpose Cream. The

table also shows how much is spent for production per day, month and year.
 Production Volume

Table 6 Table 7

Production Volume Per day Production Volume per Month and Year

Particulars Pieces/day 200 Pieces/day

X 22 days/month
Choco Yummy 200 4400 pieces/month
TOTAL 200 X 10 months
44000 pices/year

c. Selling Price

Choco Yummy
₱244.00*
₱250.00*
÷ 200
₱ 2.47
0.4
₱ 3.50

(*Raw Materials needed + *Light and Water/ day) The entrepreneurs

decided that the product price will be rounded off and added Php 1.00 for

unexpected events.

Choco Yummy Php 5.00 per piece

d. Marketing Strategy

Marketing is used to advertise the product and convince the

consumers to buy the product. Double J & PHY Food Products would market its

product through two strategies. First, advertise the store through leaflets and the

like. Second, the owners would advertise the store through people by spreading

the word by mouth for a lot to know the product.

 IV. Management Plan

A. Business Name

The business shall be registered as Double J & PHY Food Products and

will operate inside the Davao City National High School campus located at F.

Torres Street, Davao City, Davao del Sur. Customers can contact the business

via Facebook “Double J & PHY Food Products (Davao)” and through Paula

Marielle Elises via her mobile number 0942-366-5094 (sun).

B. Forms of Ownership

The form of ownership the enterprise would be under is a Partnership

owned by five proprietors. And the business name shall be registered at the

Securities and Exchange Commision (SEC). Each owner will be given an aspect

of the business to manage so that each will have its contribution in managing the

business and no overlapping of tasks will happen. The business capital would be

Php 17,979.00 which will be from the personal money of the business owners.

C. Organizational Chart

Figure 2
OWNER/
MANAGER

BOOKKEEPER/ MANUFACTURER SALES

REPRESENTATIVE
TREASURER
D. Jobs Description

Owner/Manager

 Controls the entire business operation.

 Monitors quality of goods and service.

 Liable of keeping things organized and defined.

 Manages product making, suggests changes to inventory and pricing, and

purchases supplies when needed.

 Performs a variety of tasks. Leads and directs the work of its

subordinates.

Treasurer/Bookkeeper

 Recors all financial transactions of the enterprise.

 Organizes and presents all the transactions of the enterprise.

 Keeps an eye on the flow of money and the growth of the business.

Manufacturer

 Purchases the raw materials needed and makes the product.

 Keeps the work area in good sanitary order

 Follows procedure on a consistent basis to keep the quality and good cost

constant.

Sales Representative

 Treat customers with respect and give information about the product

 Oversee wrapping and bagging of product to ensure that it meets the

business standards.
E. Jobs Qualification

Manager

 Must have the capability of handling all of the tasks in order to attain the

maximum capability of the business.

 Dedicated enough to sacrifice his/her time in helping to develop the

business' image and reputation.

 Must have great managerial, leadership and social skills.

Treasurer

 Must possess basic accounting skills

 Must be effective in recording accounts and transactions of the business

 Must be cautious in dealing and computing the transactions since it

involves money

 Must be loyal and honest to the company and fit on emotion, physical and

mental aspects

Manufacturer

 Must have skills in baking and making different kinds of sweet treats

 Must be passionate about food and baking

 Must be loyal and honest to the business and also must be emotionally,

physically and mentally fit

Sales Representative

 Must be willing to make new and good relationship with customer

 Must be approachable and willing to talk to customers about the product

F. Gantt Chart

Time Table of Completion of Jobs (in days)

Critical Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14
1. Business Plan Making
2. Finding business stall
3. Procurement of
permits and licenses
4. Purchase equipment
needed
5. Install equipment
needed for product
making
6. Purchase operating
and office supply
7. Open Books of
Account
8. Hiring of employees
9. Orientation of the
workers
10. Full Marketing
Operation
In the first three days, Double J & PHY Food Products will do the Business

Plan Research. For the next two days, finding a business stall inside the target

market vicinity will be done. On the 6th day, procurement of licenses and permits

will be done. Purchasing and installation of the equipment will occur on the 7 th

day. Operating and office supplies needed will be purchased on the 8th day and

opening Books of Account will occur on the 9th and 10th day. Hiring of employees

would be on the 11th and 12th day and they will be oriented the day after (13 th

day). On the 14th day, full marketing operation will transpire.

 V. Technical Plan

A. Work Flow Diagram

Figure 3
Purchasing of Preparing Chocolate
Raw Materials Materials making
needed

Cooling and Moulding

packaging of
chocolate

Production Process

The process of making the product is laid out in the following steps:

Step 1: Purchasing Raw Materials

Raw materials like the main ingredient, semi-sweet chocolate bar is

purchased.

Step 2: Preparing Materials needed

Cooking equipment and other supplies needed for product making is

prepared.

Step 3: Chocolate Making

The process of chocolate making is then followed.

Step 4: Moulding

The chocolate is molded to different desired shapes.

Step 5: Packaging

The chocolates will be cooled and will be packaged individually.

B. Vicinity Map

Figure 4

Source: Google Maps

C. Plant Lay-out

Figure 5
S CABINET
C U T
O P A
U P B
N L L
T Y E
E
D I S P LAY TAB L E

Figure 5 shows the layout of Double J & PHY Food Products. It will be a

small canteen stall inside the DCNHS campus. It is 25 square meters in size. The

owners have decided to expand and renovate the business when enough money

is accumulated.
D. Equipment and Supplies Needed

a. Equipment and Utensils

Table 8

b. Operating Supplies

Table 9

c. Office Supplies

Table 10
 d. Raw Materials Requirement

Double J & PHY Food Products requres only a minimal number of

basic needs considering its product. As of now it, only needs semi-sweet

chocolate bar and All-purpose Cream for product production.

e. Waste Disposal Method

The waste disposal method of Double J & Phy Food Products will

be segregaton between biodegradable and non-biodegradable. The business

does not only aim to gain profit but also keep its environment clean and also help

the environment itself be clean.

 VI. Financial Plan

A. Statement of Assumption

The mark-up the business has taken to production will increase 10% each

year. In the year 2017, the mark-up will be 50% which is Php 1.50. For the year

2018, the mark-up will be 60% valued at Php 1.50 and for the year 2019, the

mark will be 70% which is Php 1.75. Selling price also is to increase Php 1.00

annually. It is assumed that every year, there will be 5% increase in operating

expenses. These increases per year are due to a number of possible happening

like an increase in dollar value, petroleum price, increase and inflation.

B. Total Projected Cost

Table 11

This total projected cost is the cost during 1 day of operation.

C. Financers

The Total Projected Cost is Php 17,979.00. Since Double J & PHY Food

Products is an enterprise with five owners, each one shall contribute a specified

amount. These will come from the owner's savings and if it will not be enough,

the owners will apply for a loan to get the needed amount.

D. Financial Statement

a. Income Statement

Table 12

Double J & PHY Food Products

Projected Income Statement

For the Period of Five Years (10%)

b. Operating Supply
c. Operating Expenses

Table 13

c. Projected Cash Flow

Table 14

Double J & PHY Food Products

Projected Cash Flow

For the Period of Five Years

 Table 14 shows a 5-year projection of cash flow in the business. Sales,

Cost of Sales and Operating Supply Expenses are projected to increase 10%

annually while the Operating Expenses are projected to increase 5%

annually.The net income is derived by subtracting the Cost of Sales or the Raw

Materials and the Operating Supply Expense from the Sales per year. From the

table above, it is shown that the business has a high net income which shows

that the business, when managed well, could be a successful one.

d. Projected Balance Sheet

Table 15

Double J & PHY Food Products

Projected Balance Sheet

For the Period of Five Years

The table shows the total assets and liabilities the business has. For

assets, it has its equipment and for liabilities, the capital and net income is

included. These are projected to have a 10% increase on its value annually.
 VII. Conclusion

The objective of the project was to create a feasible business plan for the

start-up of the business. As predicted, the main risk of the business was the size

of the target market was too big for the business to handle.

There are many factors that may influence the product availability. Raw

materials must be supplied on time and the manufacturer of the product should

be able to make the enough amount of product per day. Also, it should be made

sure that product quality is maintained.

Marketing of the product is very important for a business and in the

industry because it is the only way for a product to be known and be consumed.

It is an activity which is crucial for every organization. If the product is not

marketed it will stay as unsold stock, which is something of no value.

A. Appendices

Production Volume

The table shows the production volume of the business with the product

Choco Yummy in pieces. The production volume is projected to increase 10%

annually.

Sales

The table shows the sales of the business per day, week, month and year.

There is a 10% projected increase in sales and an increase of Php 1.00 to the

selling price annually.

Selling Price

Choco Yummy Chocolate bar's price is projected to increase Php 1.00 per

year due to many factors in the economy.

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

These tables show the increase in price of Choco Yummy per year which is Php

1.00 and its 10% projected increase in production.