POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PROGRAMS AND POLICIES ON ENTERPRISE

DEVELOPMENT
ENTR 20063

BUSINESS PLAN

Submitted to:
Sir. Eduardo Francisco

Submitted by:
Bernardino,Jean V.
Mariano,Lawrence F.
Moriel,Charlotta O.

Bachelor of Science in Entrepreneurship 3-4

January 30, 2022
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

1. Executive Summary

Our product designed to promote green innovation and to lessen our waste CUPFEE
product is aligned with our goals and advocacy. CUPFEE aims to produce biodegradable and
nontoxic coffee cups to strengthen sustainability, innovation while enjoying a cup of coffee.
The production process of a coffee ground base cup is composed of drying binding and
molding stages.Cupfee came up with a cup made of used coffee grounds and other raw
materials .It is the best alternative to plastic and paper cups that will address the current and
all time issues which is plastic waste.

Cupfee aims to produce biodegradable and non toxic coffee cups to be strengthen
sustainability innovation while enjoying a cup of coffee.In a long term period we will surely
CUPFEE will expand in some cities to grow our business more.Safety measures and
standards will be established to ensure the quality of the product. CUPFEE will sell its
product within Santa Maria Bulacan since then a lot of coffee shop,around the city that can
be possible partners.Products will be displayed in partner coffee shops.Our products aim to
cater everyone especially a coffee lover and nature lover. A company goes through to have a
competitor which will strengthen us even more.CUPFEE may experience some competition
from other company that provide an organic and reusable cup or tumbler. But despite that
way we provide a nice and new way product.

The business will be operated and manage by different department such as

stakeholders, marketing and sales department and skilled production.Safety measures and
standards will be established to ensure the quality of the product and service
provided.Feedback from consumers and stakeholders will be used as basis for companies
improvement and growth. We come up that our total required funds to start up is
₱ 415,800.We will use it by managing it right.And actually to be able to achieve our goals
we will do our best to achieve a high profit.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

2. Company Description

2.1 Company Vision and mission statement

Vision
To most preferred reusable cup in Bulacan

Mission
The mission of CUPFEE is to offer the a new level of cup. By transforming
renewable materials into beautiful everyday products and infusing them with a new
purpose, we give them a second life that might otherwise be wasted.

2.2 Company Goals

Entering a market requires dedication, passion, skills, capital and connection.

CUPFEE are confident that the business can do good and be successful in entering the
manufacturing industry. Its products can bring the business in a good position because of its
uniqueness and goals that surely benefited every consumer.

Long-term Goals

 A company can address the seasonal needs of customers in the market by developing
new items.
 Customers are satisfied since the products are appropriate for each season, and the
corporation can generate sufficient revenue.
 Creativity and innovation are methods for increasing market share and sales.

Short-term Goals

 Make this business well known

 To encourage every consumer to buy our product by helping our mother nature
 Promote the business effectively

2.3 Target Market

Cupfee will sell its products within Santa Maria Bulacan since there a lot
coffee shops around the city that can be possible partners . After establishing our company
brand we can expand in some cities in National Capital Region to grow our business more.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

2.4 Industry

In business and engineering, new product development (NPD) covers the complete
process of bringing a new product to market, renewing an existing product or introducing a
product in a new market. A central aspect of NPD is product design, along with various
business considerations. New product development is described broadly as the
transformation of a market opportunity into a product available for sale. The products
developed by an organization provide the means for it to generate income. For many
technology-intensive firms their approach is based on exploiting technological innovation in
a rapidly changing market.

2.5 Legal Structure

CUPFEE is a partnership type of business structure where three owners agree

to be equal partners in all assets, earnings, financial and legal responsibilities of a jointly
owned company. The other thing to note is that the partners all have the power to actively
manage or control the firm. Thus, it follows that every owner has both the freedom to sustain
expertise in the operation of the firm as well as the capacity to sign legally binding
agreements. All of them are limited partners and their personal liability for business debts is
limited. They held personally responsible up to the amount they invested. Partners can enjoy
a protected investment, knowing they cannot lose more money than they have contributed.
They believe that the success of any business can be boiled down to its relationships.
Working well with others and possessing the deep knowledge of what makes people tick is
essential to creating and sustaining successful partnerships.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

3. Product

3.1 Company’s Product.

A cup is an eco-friendly cup made out of coffee grounds and often lined with newspaper
to position the coffee grounds and for packaging.

We use bamboo fiber to build the components of our product and to prevent liquid from
leaking out or soaking through the paper. It may be made of coffee grounds and is widely
used in the Philippines.

Paper cups are known to have various types of lids. For example, the paper cups that are
used as containers for yogurt generally have two types of lids: heat-seal foil lids used for
small "single-serving" containers. As a matter of fact, hot drinks sold in paper cups are
mandated to come with a plastic lid to keep the drink hot and prevent spillage.

These lids have a hole through which the drink can be sipped. The plastic lids can have
many features, including peel-back tabs and raised walls to protect the foam of gourmet hot
drinks.

One major trend in the paper cup manufacturing industry is that most players are
capitalizing on the fact that Philippines are passing legislation to limit the use of plastics due
to environmental hazards, and thus paper cups have become a good substitute.

Lastly, as part of marketing strategies, paper cup manufacturing companies now ensure
that they go beyond mass production of paper cups to produce customized paper cups for
bigger corporations who are in the fast-moving consumer goods sector, especially companies
that are into the sale of coffee, tea, ice cream, and yogurt .

3.2 Problems to solve by the Product

We all know that are mother earth is currently facing a lot of environmental
concerns.One of that is our waste management. Our product designed to promote green
innovation and to lessen our waste CUPFEE product is aligned with our goals and advocacy.
CUPFEE aims to produce biodegradable and nontoxic coffee cups to strengthen
sustainability, innovation while enjoying a cup of coffee.Our product designed to promote
green innovation and to lessen our waste CUPFEE product is aligned with our goals and
advocacy. CUPFEE aims to produce biodegradable and nontoxic coffee cups to strengthen
sustainability, innovation while enjoying a cup of coffee.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

3.3 Proprietary Feature

Having this cup you have many benefits because one of our problem is our waste.
By having this you can help a lot like you'll produce no single waste from drinking
coffee and reducing waste to landfill.

3.4 Product Pricing

Raw Quantity Unit Price

Materials

Used Coffee 3 Sack 1200

Grounds
BambooFiber 10 Bundle 1100

NewsPaper 10 Bundle 500

AcaciaGrains 2 Bag 800
Cornstarch 1 Sack 800
Waxes and oil 1 Gallon 1000
For Machine Per month bill 4000
Expenses
Total ₱ 9000
Cost(Daily)
Output 50 180
pieces
Allowance 36
(20%)
Price without 216
Mark up
Mark up 29 % 62.4
Cost per piece 278.64
Selling Price ₱ 280

As shown in the table, the corporation determine the costs of raw materials and
provides allowance of 20 percent and mark-up of 29% to arrive the selling price of ₱280.00
per unit. The company believed that it is reasonable and beneficial to both company re sellers
especially customers.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

4. Marketing Plan

4.1 Market Research

If you are a coffee drinker, chances are that you drink it at least once every day. And, if
you purchase your coffee at the local café on your way to work every morning, the amount of
disposable cups used, not to mention the amount of money you will spend, can be incredibly
high. For many coffee drinkers, the total can be more than 300 cups every year. 300
disposable cups which will end up in a landfill where it could take years to biodegrade, even
longer for the plastic lid.
Granted, using a reusable cup lowers the waste-management environmental impacts. ...
Over a one-year span (using one cup a day), the reusable cups scored well in the climate
change arena—that is, they were associated with fewer greenhouse gas (GHG) emissions
than their single-use counterparts.
Other research findings have shown that using one reusable coffee cup in place of
disposable ones for a year, you can save 126 trees from being chopped down. 76 gallons of
water required to make disposable cups is being saved. In addition, 12lbs of solid waste can
be being reduced by switching to reusable cup.The overall objective of Cup fee is directly
associated and focused based on goal to fulfilling the mission, which is expressed to the tag
line, “save a cup save the earth” as the business have seen the booming of drinks out there
while the team don’t care the possibilities of drinking safe cup during the spare time just to
keep them busy, satisfied of beverage and whatnot. And that is what the Cup fee wanted.
The business is dreaming of the future that every single person in the community from
young people, to teenagers, to young adults and adults safe drinking cup healthy snack
because, more than not, as this time health is the top priority.
The marketing strategy will be based on the use of the benefits of the advancement of
technology wherein many people like to use social media and like any other businesses they
use social media to interact and get wider consumers. Also, with the emergence of online
transactions, then actually grab the opportunity of it to be more convenient for consumers
and small business and to promote our products and to just order at a one click, pay it online
and just wait until the product will be delivered to their homes and pick-up.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

4.2 SWOT Analysis

Strength

⮚ Our main strength lies in the quality of our finished paper cups, the power of our team
and the state of the art and well – equipped paper cup and cardboard packing manufacturing
factory that we own. We have a team of highly trained coffee grounds cup designers and
makers and support staff members that can produce quality paper cups. We are well
positioned in the heart of know we will attract loads of clients from the first day we open our
factory.
⮚ Eco friendly credentials energy saving water saving and waste cutting
⮚ Durable products with a lifespan of at-least 3 years
⮚ Feel good factor for user socially responsible environment aware.
⮚ Less impact on our environment

Weakness
⮚ A major weakness that may count against us is the fact that we are a coffee grounds cup
manufacturing company and we don’t have the financial capacity to compete with multi –
million companies in the industry when it comes to manufacturing at rock bottom prices. So
also, we may not have enough cash reserve to promote our business the way we would want
to do.
⮚ Cup size renders some machines inaccessible.
⮚ Cleaning issues plastic requires more careful cleaning
⮚ Plastic smell engagement with cup

Opportunities

⮚ The fact that we are going to be operating our coffee grounds cup manufacturing
company provides us with unlimited opportunities to sell our products. The fact that coffee
grounds cups have one advantage over plastic cups in their biodegradability makes marketing
the product easy; we are well positioned to take on the opportunities that will come our way.
⮚ Educate the public on the need to use more sustainable products. To be seen as
protecting the environment by purchasing a coffee grounds cup
⮚ Appeal to consumer on financial level, outlay for long term saving.
⮚ Building self-esteem and self-image though the use of the coffee grounds cup its eco
friendly credentials
⮚ Increase sales and awareness by advertising on sales on social media
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Threats

⮚ Just like any other business, one of the major threats that we are likely going to face is
economic downturn. It is a fact that economic downturn affects purchasing/spending power.
Another threat that may likely confront us is the arrival of a new paper cup manufacturing
company in same location where ours is located. So also, unfavorable government
policies may also pose a threat for our business
⮚ High level of competition from similar products on the market
⮚ Price fluctuation in raw materials i.e. coffee cups.
⮚ Customers confusion over different between product choices
⮚ Customers preference changes
⮚ Suppliers price increase
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

5. Operational Plan

5.1 Operation and Production Schedule

OPERATION SCHEDULE :
Chief Business Administrator
Human Resource Specialist
Marketing Manager
<Production Staff 1 and 2>

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Activities

6:00 am 6:00 am 6:00 am 6:00 am 6:00 6:00 am 6:00 am Opening

am
9:00 am 9:00 am 9:00 am 9:00 am 9:00 9:00 am 9:00 am Break
am out
9:20 am 9:20 am 9:20 am 9:20 am 9:20 9:20 am 9:20 am Break in
am
12:00 12:00 12:00 pm 12:00 pm 12:00 12:00 Lunch
pm pm pm pm out
12:30 12:30 12:30 pm 12:30 pm 12:30 12:30 Lunch in
pm pm pm pm
3:00 pm 3:00 pm 3:00 pm 3:00 pm 3:00 3:00 pm Break
pm out
3:20 pm 3:20 pm 3:20 pm 3:20 pm 3:20 3:20 pm Break in
pm
7:00 pm 7:00 pm 7:00 pm 7:00 pm 7:00 7:00 pm 1:00 pm Closing
pm

Explanation working time :

 The Cup Fee operate seven days in a week. From Sundays to Saturdays open at
6:00 AM in and close at 7:00 PM. Cup Fee three founders will be working 4 days
in a week in an alternate working schedule. Two founders will be on duty each
day. The schedule will be followed but changes might be an option depending on
the demand.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

5.2 Production Process

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

6. Management and Organization

6.1 People behind the business, their roles and responsibilities and their
experiences.

Company Structure CUPFEE is a partnership type of business structure where three

owners agree to be equal partners in all assets, earnings, financial and legal responsibilities of
a jointly owned company. The other thing to note is that the partners all have the power to
actively manage or control the firm. Thus, it follows that every owner has both the freedom
to sustain expertise in the operation of the firm as well as the capacity to sign legally binding
agreements. All of them are limited partners and their personal liability for business debts is
limited. They held personally responsible up to the amount they invested. Partners can enjoy
a protected investment, knowing they cannot lose more money than they have contributed.
They believe that the success of any business can be boiled down to its relationships.
Working well with others and possessing the deep knowledge of what makes people tick is
essential to creating and sustaining successful partnerships.

A.Management Team

Jean V. Bernardino, Chief Business administrator, Age 21

Ms. Jean V. Bernardino is generally responsible for the overall performance of CUPFEE
company and is also held accountable for making strategic-level management choices. As
chief business administrator, she is also assigned in finance and ultimately responsible for
making final decisions. Ms. Bernardino is an active student of Polytechnic University of the
Philippines – Santa Maria Campus taking up a program of Bachelor of Science in
Entrepreneurship. When she was in Senior high school, she took up Accountancy, Business
and Management strand.Currently, she is pursuing a business program in college that is
aligned in his chosen strand.

.
Charlota Orcullo. Moriel, Human Resource Specialist, Age 21
Ms.Charlota Orcullo. Moriel is responsible for ensuring the employment of individuals,
training them, rewarding them, and setting rules pertaining to them as well as strategy to
keep employees. Also, she is assigned in accounting position to prepare and review of
financial records. It is crucial that she will oversee and make sure that records are correct,
and that liabilities are paid on time and as promised. In her Senior high school years, she took
up General Academic strand. Also, he works as a service crew in a leading fast food chain in
the Philippines for three years.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Lawrence F.Mariano, Marketing Manager, Age 24

Mr.Lawrence F.Mariano is responsible to market and sell CUPFEE to consumers.
Because of this, he has a greater range of responsibilities. These obligations include anything
from dictating the way a product appears and feels in the market to influencing the style and
feeling that it conveys. Way back in Senior high school, Mr. Mariano took up General
Academic Strand and he is now a third-year college student taking up Bachelor of Science in
Entrepreneurship in Polytechnic University of the Philippines – Santa Maria Campus. Also,
he works as a service crew in a leading fast food chain in the Philippines for four years.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

6.2 Organizational Structure

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7. Startup Expenses and Capitalization

The Owners of the business will invest a total of P415,800.00 on start up funding.
Business Owners estimated the following for tools and equipment,facilities,cost
supplies ,advertisement and other start up cost.

Uses of Funds

Cost Amount

Tools and Equipment PHP 220,000

Facilities Cost 25,000

Supplies 155,000

Advertisement 4,800

Other startup cost 11,000

Total Required Funds PHP 415,800

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

8. FINANCIAL PLAN

8.1 Projected Income Statement

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CUPFEE

Income Statement
January 31, 2023

Revenue ₱1,055,993.57

Cost of Good Sold (630,193.57)

Gross Profit ₱ 425,800.00

Operating Expense

Miscellaneous Expense (10,000)

Total Operating Expense ₱ 415,800.00

Net Income ₱ 415,800.00

8.2 Projected Cashflow

CUPFEE

Cash Flow Summary

January 31, 2023

Cash Flow from Operating Activities ₱1,055,993.57

Net Income
Cash Flow from Investing Activities (630,193.57)
Purchases of Equipment
Cash Flow from Financing Activities (10,000)
Cash Balance at the End of Year ₱ 415,800.00
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

8.3 Projected Balance Sheet

CUPFEE

Balance Sheet
January 31, 2023

Assets

Current Assets

Cash on hand P200,000.00

Supplies P200,800.00

Total Current Assets P400,800.00

Non current Assets

Equipment PI5,000.00

Total Assets P415.800.00

Liabilities and Shareholder's Equity

Liabilities

Total Liabilities 0

Owner's Equity 0

Total Liabilities and Shareholder's Equity P415,800.00

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

9. Appendices

Appendix A-Product Illustration and Sample Packaging

A. Product Illustration
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

B. Sample Packaging