I.

INTRODUCTION Massage service is one of the most profitable businesses in the industry as people become increasingly stressed due to hectic personal lives and jobs. This would have an impact to the consumers particularly in the city where stress is one of the most commonly experienced states

because people are increasingly seeking massage particularly in the city where stress is one of the most commonly experienced states

that massage is being used more and more by people who are in pain, have injuries and various conditions. Massage really is just starting to bloom as a method of health care. It is fast becoming an essential part of everyday care

This industry has high recommend

Consumers are increasingly seeking massage for stress reduction and relaxation. And it will make the business accessible to these people

Overall, interest in massage as a valid means of therapy is on the increase

particularly in the City, , massage has a clear role to play in reducing stress and helping people learn to recognize early stressful symptoms as compared with a more relaxed and less stressed state. Body massage treatments have become a highly preferred treatment in many salons and clinics today as well as workplaces. II. BUSINESS DESCRIPTION Our business will be name Magic Touch. We name it that way because the word itself has a high impact to our target markets. Every time they will experience the level of care we will offer they will be able to say that its a magical massage. This business will be owned by partners namely Princess Angela Alcaraz, Maria Sharmaine Ibanez and Nova Jane Matunog. this would be applicably
The business will be created on February 17, 2012 with a capital contribution of (amount)

We will offer a highly

and we will have a capital structure WE WILL CAPITALIZE This price is highly appropriate III. SERVICE DESCRIPTION This business is a massage service

Massage relieve stress, relieve aches, relieve tension, reduce pain, lowers blood pressure, reduce hart rate, reduce muscle spasms, reduce fatigue, reduces depression, reduce anxiety.

IV. PROCUREMENT V. LOCATION VI. LAYOUT VII. CAPACITY PLANNING VIII. SCHEDULING

X. FINANCIAL STUDY Fixed Assets: Equipments Towels Furniture & Fixtures Total fixed assets: Working Capital for 2 months: Oil Supplies Water & Electricity Telephone Bill Miscellaneous Expense Laundry Salaries & wages Total Working Capital: 175,720 Pre-Operating Cost: Rent Expense Water & Electricity Training Cost Renovation cost Total Pre-Operating Cost: Organizational Cost: Business Permit Cedula DTI Sanitary Permit Fire Total Organizational Cost: Grand Opening Expense: Advertising Expense Sound System Balloons (8) P 950.00 1,500.00 100.00 P 5,000.00 450.00 350.00 300.00 800.00 P 6,900.00 (7) P 120,000.00 2,000.00 15,000.00 500,000.00 P 637,000.00 (5) (6) (4) P 3,800.00 32,000.00 1,200.00 8,000.00 60,000.00 70,720.00 P (1) (2) (3) Note P 160,000.00 40,000.00 33,000.00 P 233,000.00

Total Grand Opening Cost: 2,550.00 Total Amount: 1,055,170.00 Note 1 Equipments Quantity 2 1 1 1 Description Air conditioner LCD T.V Cash Register CD/VCD/DVD Player Total Amount 160,000.00 Note 2 Towels Quantity 200 Total Amount 40,000.00 Note 3 Furniture and Fixtures Quantity 1 6 Total Amount 33,000.00 Note 4 Working Capital # of months/ quantity 5 gallons 2 months 2 months 2 months Description Oil Water & Electricity Telephone bill Miscellaneous Price 380.00/gallon 16,000.00/month 600/month 4,000.00/month Description Sofa/Sala Set Massage Table Price 15,000.00 3,000.00 Description Towels Price 200 Price 50,000.00 50,000.00 5,000.00 5,000.00 P

Total 100,000.00 50,000.00 5,000.00 5,000.00

Total 40,000.00 P

Total 15,000.00 18,000.00 P

Total 3,800.00 32,000.00 1,200.00 8,000.00

Expense Total Amount 45,000.00 P

Note 5 Laundry # of kilos 40 Total Amount Note 6 Salaries & Wages # of Employees 7 3 Total Amount Position Therapist Cashier Pay/day 100.00 220.00 All In 26 days 18,200.00 17,160.00 In 2 months 36,400.00 34,320.00 P 70,720.00 Description Towels Price/day 1,000.00 Total 60,000.00 P 60,000.00

Note 7 Rent Expense # of Months 3 Total Amount 120,000.00 Note 8 Advertising Expense Quantity 150 10 1 Total Amount Description Flyers Posters Tarpaulin Price 1.00 50.00 300.00 Total 150.00 500.00 300.00 P 950.00 Description Rent Expense Per month 40,000,00 Total 120,000.00 P

PROJECTED SERVICE REVENUE Year Year 1 Year2 Year3 Year4 Year5 No. of Services Avail 10,080 (28x360) 10,440 (29x360) 10,800 (30x360) 11,520 (32x360) 12,240 (34x360) Price 297.50 (350x.85) 297.50 (350x.85) 301.75 (355x.85) 301.75 (355x.85) 306.00 (360x.85) Total price 2,998,800.00 3,105,900.00 3,258,900.00 3,476,160.00 3,745,440.00

Year 1 In this year the owners assumed that each day there will be at least 28 clients/customers availing the massage service which results an estimated income of P 2,998,800.00. 350 pesos was multiplied to 85% because the other 15% served as the commission of the employee who performed the massage. The estimated profit for this year is P 1,218,037.08. Year 2 In year 2, the owners assumed that there will be an increase of 1 client/customer per day because people are more familiar in Magic Touch and regular clients will spread the news about the best services that Magic Touch offers. So, in this year there will be at least 29 clients/customers availing the massage service which results an estimated income of P 3,105,900.00. The estimated profit for this year is P 1,316,159.58 (same computation w/ the previous year except that there was no grand opening expense and the water & electricity bill was increased by P 100.00 per month from 16,000 to 16,100 because of the increased of clients). Year 3 In year 3 the owners assumed that from 29 clients it will become at least 30 clients per day. The estimated income for this year is P 3,258,900.00. This is P 153,000.00 higher than the previous year estimated income. Also, in this year the

owners increased the price of massage services from 350 to 355 because of the increase in expenses. The estimated profit in this year is P 1,460,942.58(water & electricity bill was increased by P 50.00 from P 16,100.00/month. to P 16, 150.00/month due to increased in number of clients also the telephone bill from P 600.00/month to P 650.00/month the same with the expense in oil from 5 gallons/month to 6 gallons/ month which is from P 1,900.00/month to 2,280.00/month. Year 4 In year 4 the owners assumed that there will be an increase of 2 clients from 30 to 32 clients per day because of the popularity and best massage services of Magic Touch. By this year, Magic Touch is already well-known all over Tacloban. The estimated income for this year is P 3,476,160.00. The estimated profit is P 1,689,037.58. This is P 228,095.00 higher than 4 th year estimated profit. The expense for oil was increased from 2,280/month to 2,660/month (from 6 gallons to 7 gallons). Water & electricity expense also increased from 16,150/month (based on previous year) to 16,350/ month. Miscellaneous expense was increased from 4,000/month to 4,100/month. The expense for laundry was increased from 360,000/year to 369,000/year (41kls x 25 = 1,025/day x 30 = 30,750/month x 12 = 369,000. The owners did not have an expense for towels because there were enough towels for the year due to 3 consecutive years of purchasing it. Year 5 In this year, the owners decided to increase the price of each massage service from P 355.00 to P 360.00 because expenses increased. It was assumed that there will be 34 clients per day and will have an estimated profit of P 1,969,135.58. Expenses like oil, water & electricity, laundry, telephone bill and miscellaneous expense were al increased (oil from 7 to 8 gal, water & electric billfrom 16,350 to 16, 750, laundry from 41kls/day to 42kls/day which is from 369,000/year to 378,000/year, telephone bill- from 650/month to 670/month and miscellaneous expense from 4,100/month to 4,200/month. There was no expense for towels for this year. In this year the owners decided to give a 10% discount to all kinds of massage services, this promo is available 10 days per month (120 in a

year). The owners will decide on what date they will set the promo. That is why there is a sales discount in the income statement in December 31, 2016.