M&D SWEET POTATO ICE CREAM

A Feasibility Study

Presented to the

Faculty of the College of Business Administration

Eastern Samar State University

Can-avid, Eastern Samar, Philippines

In Partial Fullfillm

Of the Requirements for the degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN FINANCIAL MANAGEMENT

BY:

CANALES, MARCIA M.

GUBALA, ANTONEETE M.

LOBINA, ROMELYN M.

MONTALLANA, ADELYN C.

PICARDAL, MA. VACELLA B.

DECEMBER 2023

1
 CHAPTER I

DESCRIPTION OF THE PROJECT

Ice cream is a popular dessert and treat enjoyed by many, while it may not be

essential for survival, it can bring joy and satisfaction to individuals and is often

consumed for its taste and as a form indulgence. Nowadays, many people are

increasingly con concerned about health and nutrition. Healthy ice cream options

typically lower calories, less sugar and reduce fat content compared to traditional ice

cream. Customer preferences for healthy ice cream stem from a desire for healthier

options, dietary restrictions and weight management goals. Carbohydrates, lipids,

and protein all of which are essential for our bodies to make energy are abundant in

ice cream. Ice cream can, after all, contribute to gain weight, so be cautious about

how much energy you want to acquire from it. Furthermore, sweet potato known as

Kamote in our nation, are regarded as one of the most significant crops in the

Philippines, this is also known as a root vegetable where it also wholesome, rich in

calcium, phosphorus, vitamin A, carotene, and carbs are all found in abundance in

Kamote. Through this, M&D ideally propose an ice cream business using sweet

potato as our specialty, realizing the truth that we are not only after how to satisfied

customer but also in supporting local delicacies, M&D found out that sweet potato is

abundance and gain enough suppliers so that the product will sell at very affordable

price.

The name M&D derive from the words must & diverse, as one of its

business objectives is to diversified business into various business ventures and by

prioritizing sweet potato as our specialty in supporting local delicacies. Sweet potato

ice cream is

2
ideally made in satisfying people’s choice digging into how our specialty relieve their

mood and it’s healthy contribution to the human body. Aside from its innate

contribution, some of the benefits in handling sweet potato ice cream is healthy and

unique ice cream, it also helps the local farmers specifically to those root crops

farmers, empowering and supporting our local delicacies, can also offer additional

income to other sari-sari store, pharmacies, and retail shop, and lastly the

affordability of price. The proposed business is a manufactured product at Brgy. 10

Can-avid, Eastern Samar by M&D. This will ideally aim to supply healthy and unique

kamote ice cream and become a top leading ice cream manufacturing in the

Municipality in Can-avid.

Proposed Business Logo

Figure 1.1 Proposed business logo

M&D proposed its own business that best describe our proposed business

that reflects the unique characteristics of the sweet potato ice cream. At the center of

3
the logo there is a presentation of sweet potato, slice and in a whole form, rendering

in a

way that emphasizes the creaminess of ice cream. Product name “sweet

potato ice cream” and business name “M&D” placed upper part of the logo. In

addition, the color also represents the natural color of a sweet potato that evoke a

sense of comfort and warmth. The logo conveys a sense of indulgence and comfort

that makes the consumers associate with the delicious and unique experience of

enjoying sweet potato ice cream.

Vision

To become a top-leading ice cream manufacturing and become known as best

among local delicacies in the country

Mission

Proovide customer-friendly business offering quality and unique Sweet Potato Ice

cream aiming a healthy and affordable product for all ages.

Objectives

1. To gain 15% of market share in the first year of business in every business

operation

4
 2. To recover at least 20% initial investment every year

3. To gain at least 10% annual increase of its net profit

4. To satisfy customers demand and meet their expectations in our product

Organization and Administration

The proposed business sweet potato ice cream is a sole proprietorship for of

business ownership, hence the owner will also be part of the day-to-day operation. In

addition, the business will gain lower start up cost, flexibility of the business where

the owner free-easy to decide for the success of ice cream manufacturing and save

the labor spent in complying with trading regulations. Therefore, the business can

easily earn and get up into best income. Under the ownership the success of the firm

will also be depend on the skilled manpower they are; Antonette Ellan designated to

work for cashier/server to help consumers check out in-store. Ringing up sales,

collecting payments, and providing accurate change are just a few of the main

cashier duties. Server greeting clients as they take their seats at the table, checking

for cleanliness and the presence napkins, and other necessities. Displays the day’s

deals. Answers inquiries about the cuisine. Marlon Calda in responsible in delivering

sweet potato ice cream gathered orders and deliver them to their destinations. A

Production Worker is responsible for feeding raw materials into machinery,

assembling goods on production lines, and monitoring the process. In addition, they

carry out basic quality checks such as testing of product or packaging before

shipping by adequately storing all necessary supplies.

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 MARCIA CANALES
Owner

ANTONETTE ELLAN MARLON CALDA

Cashier/Server Delivery rider

Figure 1.2 Organizational structure

Administration Proposal

M&D sweet potato ice cream must provide copies of the proposal by the owners

within the month of the administration, and main content of the administration

proposal are follows.

 Details of how business ended up in financial difficulties.

 How approval to be sought for the proposal.

 The work the administration has carried out inside.

 A copy of the statement affairs.

 The sales report over the month or year.

6
Project Location

M&D ice cream shop will be located and available to visit at Brgy. 10 Can-

avid Eastern Samar along national road in front of G-Park. Product also ideally

launch through online and once received, product will be delivered into different

areas of the municipality. Target location will be easy to access and visit, ideally, a

walking distance from ESSU – Can avid campus, and near Gymnasium, M&D gain

lower cost in terms of renting the area.

Figure 1.3 Project Location

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Duration of the Proposal

Once the proposed business is feasible, the project will wet in by canvassing

first the materials, Ingredients and equipment’s needed (e.g., electric mixer, ice

cream machines, blenders etc.,) and getting processing legal documents that should

be done in just 1 month. During the processing of some documents, materials,

ingredients, and equipment’s should start purchasing and be well prepared for the

assurance of safety, productive and soft start of operation.

Task description 2023 2024

Aug Sept Oct Nov Dec Jan Feb Mar Apr May

1. Making of
feasibility
study

1. Canvassing

2. Processing
permits

3. Purchasing
equipment,
raw materials
and others

4. Stocking
and
organizing
the area
5. Start of
production

Table 1.1 Time duration of the project

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Major Business Activities

M&D Sweet Potato Ice Cream presented its major activities below

Activities Schedule/Time
1. Purchasing equipment and materials Twice a Year
2. Purchasing of stocks. Twice a month
3. Stocking and organizing the Twice a month
manufacturing and shop area.

4. Provide fliers to the customer to reach Every Monday

more possible clients.

5. Proper training for the making and Twice a year

handling business operations.

6. Creating a website and social media Twice a month

presence.

7. Setting up a point of sale. Once a month

8. Community engagement Occasionally
Table 1.2 Time/scheduled of major business activities.

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 CHAPTER II

MARKET FEASIBILITY

Market feasibility discuss the description of the business, current market

participated future potential, competition and sales potential client. These are

essentials for the productivity of the business as this will serve as the development

factors. This chapter also includes the description of the market including industry

description, competitiveness, market potential, demand and sales analysis and the

marketing strategy.

Industry Description

Featuring sweet potato as a primary ingredient. This unique twist on traditional

ice cream flavors can appeal to those who enjoy natural sweetness and earthy flavor

of sweet potatoes. Manufacturers may use various techniques to incorporate sweet

potatoes into their ice cream recipes. M&D sweet potato ice cream has its direct

competitors that offers cold products like fruit tea’s, Buko shakes and some

commercial ice cream such as Selecta, Creamline and Magnolia. M&D sweet potato

ice cream holds its several significances as its gap from its competitors, dietary

considerations where sweet potatoes are naturally gluten-free, making sweet ice

cream suitable for individuals with gluten sensitives or those following a gluten-free

diet. Because of its abundance or enough supply of sweet potato the product

affordability of price is given.

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INDUSTRY COMPETITIVENESS

Industry analysis

For clients to be able to make walk-in purchases, sweet potato ice cream will

build an excellent location. The company will offer ice cream at a lower cost that is

nevertheless of standard quality. In addition, the company will offer free delivery for

customers who spend more, and for those who are able to visit us in person, the ice

cream will be placed on a respectable Tupperware cup with a thank you sticker

containing our brand name and phone number and neatly sealed with protective

plastic for delivery safety.

Major Competitors

Proposed business has its direct competitors that offers similar healthy ice

cream and cold products such as shakes, milk tea and others. This competitors

namely; Selyn’s Buko house, Burps, Jacas pizza house and others. However, M&D

has its indirect competitors they are; Selecta, Creamline. Magnolia, and other

commercial cold products.

SWOT analysis

Strength Opportunity

1. Unique flavors 1. Niche market

2. Healthy alternatives 2. Product diversification
3. Versatility
Weaknesses Threats

1. Limited appeal 1. Competition

2. Seasonality 2. Cost and availability
3. Customer’s perceptions 3. Perception and familiarity
Figure 2.1: SWOT analysis

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SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of sweet potato ice

cream:

Strengths:

1. Unique flavor: Sweet potato ice cream offers a distinct and unique flavor

compared to traditional ice cream flavors, appealing to consumers looking for

something different.

2. Healthy alternative: Sweet potatoes are a nutritious ingredient, offering fiber,

vitamins, and minerals. Marketing the ice cream as a healthier alternative

could attract health-conscious consumers.

3. Versatility: Sweet potato can be combined with various flavors and toppings to

create different variations of the ice cream, providing flexibility in product offerings.

Weaknesses:

1. Limited appeal: Sweet potato ice cream might not appeal to all consumers,

particularly those who prefer more traditional ice cream flavors.

2. Seasonality: As sweet potatoes are typically available during specific

seasons; the availability of the ice cream flavor might be limited or

inconsistent throughout the year.

3. Consumer perception: Some consumers may be hesitant to try a unique

flavor like sweet potato, affecting initial acceptance and purchase.

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Opportunities:

1. Niche market: Targeting niche markets, such as health-conscious consumers or

those seeking plant-based alternatives, can help capture a specific segment of the

market

2. Product diversification: Expanding the sweet potato ice cream line with different

variations (e.g., sweet potato swirl, sweet potato pie) can attract a wider range of

consumers.

Threats:

1. Competition: Other ice cream brands offering a wide range of flavors may pose a

threat to the popularity and market share of sweet potato ice cream.

2. Cost and availability: Depending on the location, the cost and availability of sweet

potatoes may fluctuate, affecting production costs and overall profitability.

3. Perception and familiarity: Consumers who are not familiar with or have

preconceived notions about sweet potatoes may be hesitant to try the ice cream,

making it challenging to gain market share.

Factors affecting market potential.

The following are factors that could possibly affect the operation and productivity

of the proposed business:

1. Natural condition

2. Market demand

3. Market Price

4. Primary and secondary competitors

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Action Plan

Proposed business ideally do different marketing strategies in selling our

product that will be unique from our competitors to attract customers that will become

loyal to us through our good service that will offer to them, we will use different

marketing channels to attract more customers like online selling and through fliers to

help our product become known in different area and places.

Market Potential

Sweet Potato Ice cream can also be sold thru online while others do walk in

purchase in our store. The product is also open for ages 7-50 year’s old living in the

municipality of Can-avid where some of them is on special diet and those who are

longing for refreshing their moods and energy. Moreover, it is also a walking

distance from Eastern Samar State University Can avid Campus, is one of the

potential benefits to widen our customers.

Marketing Strategies

M&D sweet potato ice cream is a cold product that is accessible for the customer's,

healthy, unique and affordable ice cream. The proposed target location can be

available to visit at Brgy. 10 Poblacion, ideally along national road also in front of G-

Park where customers conveniently access and buy our products. In addition, it will

also target some retail stores, pharmacies, ice cream street vendors who has the

potential in reselling our product. For the customers who are not able to visit store,

M&D offers delivery to their respective location using our social media presence and

contact information. Furthermore, to have additional attractiveness of our product,

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M&D used the proposed logo w/ a thank you sticker to sealed its packaging. In

addition, M&D also used ice cream food cart as its additional way of launching and

introducing our healthy and unique variant of ice cream.

DEMAND AND SALES ANALYSIS

The proposed business aims to target individuals who loved eating

alternatives healthy variant of foods and other business who wants to resell our

proposed healthy and unique ice cream in the municipality of Can-avid Eastern

Samar. In order to get the demand, the proponent surveyed 51 consumers/ice cream

sellers of ice cream in Can-avid Eastern Samar.

Year Historical Population

2018 12,132
2019 11,617
2020 11,272
2021 13,173
2022 17,090
Table 2.2 Historical Population

Table 2.2 shows the actual population we get from MPDC of Can-avid Eastern

Samar for the last five years.

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 Year Projected Population

2023 18,219

2024 19,420

2025 20,702

2026 22,068

2027 23,524

Table 2.3 Projected Population

The table above shows the projected population of Can avid Eastern Samar,

from 2023-2027. According to PSA, the basis of the given data above is the

population from the target area by which multiplied to growth rate of 0.66%

Year Historical Demand

2018 7,158

2019 6, 854

2020 6,650

2021 7,772

2022 10,083

Table 2.4 Historical Demand

In table 2.4 it shows the historical demand for the previous five years. This data is the

actual population we get from MPDC of Brgy. 10 Can-avid Eastern Samar.

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 Year Annual Projected Demand
( In peso)
2023 12,898,344

2024 13,749,360

2025 14,657,016

2026 15,624,144

2027 16,654,992

Table 2.5 Projected Demand

In table 2.5 it shows the projected demand yearly for the next five years, to come up

with this amount we multiply the projected demand in 12 months to get the yearly

demand for the next five years.

Year Annual Historical Supply

(In Peso)
2018 240,000

2019 336,000

2020 144,000

2021 240,000

2022 336,000

Table 2.6 Historical Supply

In table 2.6 this show the total supply annually for the last five years, this data is the

actual data we get from our competitors.

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 Year Annual Projected Supply
(In Peso)
2023 360,000

20224 384,00

2025 408,00

2026 430,002

2027 456,000

Table 2.7 Projected Supply

In table 2.7 shows the projected supply for the next five years. To come up with the

first amount in 2023 we used the Arithmetic Straight Line Method to solve for the next

five years.

Year Demand Supply Gap Market Annual

Share Projected Sales
(In Peso)
2023 12,898,344 360,000 12,538,344 8% 1,003,068

2024 13,449,360 384,000 13,065,360 8% 1,045,229

2025 14,657,016 408,000 14,249,016 8% 1,139,921

2026 15,624,144 432,000 15,192,144 8% 1,215,372

2027 16,654,922 456,000 16,198,922 8% 1,295,914

Table 2.8 Projected Sales

The table above shows the projected sales for the next five years. Arithmetic

straight line method was used, gap is multiplied by the estimated market share 8% to

get projected sales.

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 CHAPTER III

TECHNICAL FEASIBILITY

This chapter presents the technical feasibility of the proposed business. Explained

here is the process on how to make sweet potato ice cream, to determine whether

it’s possible for the proposed business and the analysis of various factors that affect

its technical and operational activities.

Production Schedule

Sweet potatoes generally mature in 85 to 100 days. Check root size after 80 to 85

days because they don’t stop growing and can start to split when overgrown. Digging

is easier if you cut the vines off first. Used a garden fork or spade to loosen the soil

and gently lift and expose the sweet potatoes.

Phase 1: Ingredient Sourcing. Identify and source quality sweet potatoes, dairy or

non-dairy alternatives, sugar, and any additional flavorings or mix-ins.

Phase 2: Production Facility Preparation. Ensure your production facility is clean

and compliant with health and safety regulations.

Phase 3: Preparation and Cooking. Peel, cook, and mash sweet potatoes. Mix

sweet potatoes with dairy (or alternatives), sugar, and other flavorings. Heat the

mixture to the proper temperature. Pasteurize and homogenize the base.

Phase 4: Cooling and Aging. Allow the ice cream base to cool and age, enhancing

flavor and texture.

19
Phase 5: Churning. Transfer the base to an ice cream machine to churn and freeze

it.

Phase 6: Packaging. Fill ice cream containers with the churned ice cream.

Phase 7: Storage. Store ice cream at proper temperatures to maintain quality.

Phase 8: Quality Control. Sample batches for quality testing, including taste,

texture, and consistency.

Phase 9: Packaging and Labeling. Label containers with product information,

including ingredients, nutritional facts, and branding.

Phase 10: Distribution. Plan for distribution to retailers or customers.

Phase 11: Inventory Management. Keep track of inventory and reorder supplies as

needed.

Phase 12: Marketing and Sales. Promote your sweet potato ice cream to generate

sales.

Phase 13: Quality Assurance. Continuously monitor product quality and customer

feedback for improvement

Phase 14: Scaling Up. If successful, consider scaling up production based on

demand

Prepare all the Blend until smoothie,

Pour the mixture in a
materials and gradually pou
clean plastic
equipment and wash remaining
container and cover.
the sweet potato. evaporated milk.

steam the sweet 20

In a mixing bowl,
potato until cooked,
pour thick cream, Freeze for about 7-
peel the skin, grate
use electric mixer to 10 hours.
or smash the boiled
stirr well.
sweet potato

gradually put the

add the sweet potato
grated sweet potato
 Figure 3.1 Sweet potato ice cream production flowchart.

The sweet potato ice cream production illustrated in figure 3.1 can be describe as

follows:

1. Prepare all the materials and equipment, once settled, the manufacturer

washes the set potato, in a pot, steam the sweet potatoes until it sotted, peel

the skin, grate, or smash the boiled sweet potato.

2. Gradually put the grated sweet potato into blender, pour cans of evaporated

milk gradually add salt to balance sweetness and blend until smoothie.

3. Gradually pour remaining evaporate milk and thick cream in a mixing bowl,

use electric mixer to stir well the thick, after the mixing of milk, add the sweet

potato mixture, add can of condense milk well until combined.

4. Pour mixture into their plastic container and into soft serve ice cream

machine.

5. Freeze for about 7 to 10 hours maximum cold temperature.

Location and Facility Needs

The business will be located at Brgy. 10 in Can-avid Eastern Samar, along National

Road. The location we choose is near at Can-avid G-park and also it is located near

at Essu Can-avid. We can easily get our materials we need to make our sweet potato

ice cream.

M&D

21
 Figure 3.2 Project location/vicinity map

A. Fixed Capital Cost

ITEM DESCRIPTION QUANTITY UNIT COST TOTAL COST

Labor 2 500 2,000
Glass Wall 1 16,000 16,000
Tiles 50 pcs 12x12 250 12,500
Cement 5 sacks 130 600
Paint Mint green 1,240 2,480
1gl.
Sand ½ cubic 1,000 500
Total 34,080
Table 3.1 Renovation of the showroom

ITEM DESCRIPTION QUANTIT UNIT TOTAL

Y COST COST

22
 Blender 2 1,300 2,600
 To mix,
crush,purēe or
emulsify food
and other
substance.

Spatula sets 3 99 297

 Mix, scrape, flip
or spread
ingredients

Electric mixer 1 758 758

 Aerate the
mixture and
keep the ice
crystal small

Ice cream dipping

cabinet 1 20,000 20,000
 Storing and
displaying bulk
quantities of ice
cream.

Soft serve ice cream 1 3,400 3,400

machine
 They are
equipped with a
refrigeration
system that
keeps the

23
 product frozen
until they are
dispensed.
Total 27,055

Table 3.2 Machineries and Equipment

ITEM DESCRIPTION QUANTITY UNIT COST TOTAL

COST
Table 2 505 1,010
Chairs 4 150 150
Total 1,060

Table 3.3 Furniture and fixtures

ITE DESCRIPTION QUANTITY UNIT COST TOTAL COST

M
1 BIR registration 1 500 500
2 Mayor’s permit 1 1,500 1500
3 BFP clearance 1 500 500
4 Barangay clearance 1 500 500
Tota 3,000
l
Table 3.4 Permits and Licenses

ITE DESCRIPTION QUANTITY UNIT COST TOTAL COST

M
Plastic container 100 pcs 22 22
Paper ice cream cups 400 pcs 365 1,460
Spoon/ ice cream sticks 400pcs 88 352
Sweet potato 1 sack 1,500 1,500
Evaporated milk 48 34 1,632
Kremdensada milk 48 35 1,680
Food color 40 2 80
Nestle cream 48 65 3,120
Tota 9,846
l

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 Table 3.5 Supplies and materials

ITEM DESCRIPTION QUANTITY UNIT COST TOTAL COST

1 Electric Bill 1 5,000 5,000
2 gas 12 300 3,600
Total 5,000

Suitability and Production Technology

Mixing and blending technology is a high-speed mixers and blenders are suitable for

efficiently combining sweet potato puree, dairy or non-dairy ingredients, and

sweeteners. Proper mixing ensures uniform flavor and texture. Churning and freezing

batch or continuous ice cream machines can be used for churning and freezing the

ice cream mixture. Continuous machines are more efficient for large-scale

production. Packaging technology invest in reliable packaging equipment to

efficiently fill ice cream containers. This can include automatic filling and sealing

machines. Storage and freezing high-quality blast freezers are crucial for rapidly

freezing the freshly churned ice cream to maintain texture and prevent ice crystals.

Scalabilities choose technology that allows for easy scalability as our production

volume increases.

CHAPTER IV

Organizational Feasibility

Business Structure

The proposed business sweet potato ice cream is a sole proprietorship for

business ownership. Hence, the owner will also be part of the day-to-day operation.

25
In addition, the business will gain lower start up cost, flexibility of the business where

the owner is free-easy to decide for the success of ice cream manufacturing and

save the labor spent in complying with trading regulations. Therefore, the business

can easily earn and get up into best income. The proposed business ideally, has four

available manpower including the owner and it’s two skilled employees given its

equal minimum wage amounting to PHP 200.00 per day; 15 th day wages amounting

to 2,800 and 5,200 per month.

Figure 4.1 Organizational Structure

No. of Position Functions/duties and SALARY Annual

Employee’ responsibilities Salary
s
DAILY MONTH
LY

1 Manager In-charge for operating in 200 5,200 6,240

manufacturing and in
marketing the business.

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 1 Cashier/ Help consumer check in- 200 5,200 6,240
Service out of store. Collecting
payments and providing
accurate change.

1 Delivery Gather online orders and 200 5,200 6,240

Rider deliver to the customer’s
location.

TOTAL 600 15,600 18,720

Table 4.1 Employee’s functions and responsibilities

EMPLOYEES BENEFITS

Position Contribution Monthly Annual

SSS PHILHEALTH
Manager 200 100 300 3,600
Cashier/ 150 80 230 2,760
Service
Delivery Rider 150 100 250 3,000
TOTAL 7,080 9,360
Table 4.2 Employee’s benefits

Business Policies

Quality standards for sweet potato ice cream are essential to ensure the

product’s safety, taste, texture, and overall appeal to consumers. The following are

the quality standards that M&D considered;

27
1. Ingredients: The quality of ingredients is paramount. M&D ensure that sweet

potatoes are fresh and free from defects. Other ingredients like dairy (milk or

cream), sweeteners, stabilizers, and flavorings.

2. Food Safety: M&D sweet potato ice cream meet food safety regulations

preventing contamination and ensure consumer safety. Regular testing for

pathogens and compliance with sanitation and hygiene standards is crucial.

3. Texture and Consistency: Sweet potato ice cream have an smooth and

creamy texture. Proper blending and homogenization of ingredients, as well

as controlled freezing and churning.

4. Flavor Profile: flavor of sweet potato should prominent and natural. It should

not have any off-flavors or unpleasant aftertastes.

5. Color: The color of sweet potato ice cream should be appealing, reflecting the

natural color of sweet potatoes. Artificial colors should be avoided unless they

are necessary to achieve a specific appearance.

6. Sweetness: The level of sweetness should be balanced to enhance the

natural sweetness of sweet potatoes without overwhelming the palate. Sugar

content should comply with regulations.

7. Stability: The ice cream should maintain its quality throughout its shelf life. It

should not develop ice crystals, become overly hard, or suffer from freezer

burn.

8. Packaging: Packaging should be appropriate to prevent contamination and

freezer burn. Labels should accurately represent the product’s ingredients

and nutritional information.

28
 9. Consumer Feedback: Pay attention to consumer feedback and conduct

surveys to continuously improve the product’s quality based on customer

preferences and comments.

Safety Measures for Sweet potato ice cream, like any food product, should be

prepared and handled with safety in mind. M&D provide safety measure are follows;

1. Ingredient Quality: Ensure the sweet potatoes and other ingredients used are

fresh and of good quality. Check for any signs of spoilage or contamination.

2. Washing and Peeling: Thoroughly wash and peel the sweet potatoes before

using them in making ice cream recipe. This helps remove dirt and potential

contaminants.

3. Cooking: Cook the sweet potatoes properly before incorporating them into the

ice cream. This can help eliminate harmful bacteria or pathogens.

4. Storage: Store sweet potato ice cream in a freezer at a temperature below

0°F (-18°C) to prevent bacterial growth. Use airtight containers to minimize

freezer burn

5. Clean Equipment: M&D ensures that all utensils, bowls, and equipment used

in the preparation of the ice cream are clean and sanitized.

6. Hand Hygiene: Practice good hand hygiene by washing your hands

thoroughly with soap and water before and after handling food.

7. Cross-Contamination: Avoid cross-contamination by keeping raw sweet

potatoes and their juices away from other ingredients and surfaces.

8. Labeling: If you’re preparing sweet potato ice cream for sale or distribution,

ensure you follow local food safety regulations and labeling the product with

necessary information.

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Operating policies for M&D sweet potato ice cream business encompass various

aspects of operation, including allergen awareness, customer service, safety, and

more.

1. Operating Hours: Open in 7:30 am – 5:00pm.

2. Customer Service: Prioritize excellent customer service.

3. Safety and Hygiene: Follow strict food safety protocols to prevent

contamination. Regularly inspect and clean equipment and food preparation

areas. Train staff in food handling and safety procedures.

4. Sustainability: Consider environmentally friendly practices, such as sourcing

sustainable ingredients and using eco-friendly packaging.

5. Awareness: Clearly label all ingredients and potential allergens in your ice

cream. Have protocols in place to prevent cross-contamination for customers

with food allergies.

6. Marketing and Promotion: M&D will develop a marketing strategy to promote

your sweet potato ice cream, both online and offline. Consider promotions,

loyalty programs, and collaborations to attract and retain customers.

7. Health and Dietary Preferences: M&D offer’s options for customers with

dietary restrictions or preferences (e.g., vegan, gluten-free). Ensure

transparency about the nutritional content of your products.

8. Financial Managements: Establish clear financial policies, including pricing,

payment methods, and financial reporting. Monitor and manage expenses to

ensure profitability. Engagement: M&D should involved in the local community

through events, sponsorships, or charitable initiatives. Build positive

relationships with neighboring businesses.

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 9. Compliance: Comply with all local, state, and federal regulations related to

food safety, health, and business operations. Keep up to date with any

changes in relevant laws.

10. Feedback and Improvement: Encourage feedback from customers,

employees, and stakeholders to continually improve your operation. Regularly

evaluate M&D policies and make adjustments as necessary.

Effective waste management is essential in M&D business to measure and

maintain cleanliness and environmental friendly business, below are some policies

that M&D must follow;

1. Source Reduction: Minimize waste at the source by accurately portioning

ingredients to reduce overproduction.

2. Recycling: Set up clearly labeled recycling bins for materials like plastic

containers, and glass. Ensure employees are aware of what can and cannot

be recycled.

3. Composting: Establish a composting system for organic waste like fruit peels,

sweet potato scraps, and other food waste. Use compostable serve ware,

such as biodegradable cups and utensils.

4. Waste Audits: Conduct regular waste audits to identify areas where waste

can be reduced. Analyze the types of waste generated and find ways to

minimize them.

5. Packaging Choices: M&D Opt for eco-friendly packaging materials, such as

biodegradable or recyclable containers. Consider offering reusable containers

for customers who dine in.

31
 6. Regular Maintenance: Keep waste storage areas clean and well-maintained

to prevent spills and contamination. Ensure waste containers are emptied and

cleaned regularly.

Implementing a reward system for employees in your sweet potato ice cream

business can help motivate and retain your staff while fostering a positive work

environment. Here are some ideas for a reward system:

1. Performance-Based Bonuses: Provide performance-based bonuses

for achieving sales targets or maintaining high customer satisfaction

scores.

2. Flexible Scheduling: Offer flexible scheduling options to accommodate

employees’ personal needs, like preferred shifts or time off for

important events.

3. Paid Time Off (PTO): Grant additional paid time off days for

employees who have been with the business for a certain period.

4. Free Sweet Potato Ice Cream: M&D offer employees complimentary

sweet potato ice cream during their breaks or as a weekly allowance.

7. Recognition Awards: Present awards or certificates to acknowledge

achievements and milestones, such as years of service or exceptional

performance.

8. Employee benefits: SSS, Phil heath and Pag-ibig

Employee Suggestions Program: M&D encourage employees to submit ideas for

improving the business and reward them for innovative and actionable suggestions.

9. Recognition Wall: Create a recognition wall or board in your shop where you

display photos and achievements of outstanding employees in M&D.

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 10. Surprise Rewards: Occasionally, M&D surprise employees with unexpected

rewards, like gift cards, spa vouchers, or tickets to events.

11. Feedback and Appreciation: Regularly provide constructive feedback and

express appreciation for their hard work and determination.

LEGAL REQUIRMENTS

Description Amount
Barangay Permit it acts as proof of residency and good standing 500
within the community issued by the Barangay, a
minor administrative division in the country, this
clearance represents an individual’s compliance
with local laws and regulations.
Mayor’s permit it grants that the business has complied and 1,500
aligned with all the city or municipalities rules and
regulations. Moreover, it protects you, as the
owner, and the business from being shut down or
suspended for performing illegal or unauthorized
activities.
BFP Clearance In order to ensure tax compliance and to be 500
allowed to start business operations in the first
place, businesses need to be registered with the
BIR.
Sanitary permit Health permit in addition to sanitary permit is a 600
requirement in the issuance of business permit for
food establishment. Observance of good
environmental sanitation could prevent the
occurrence of sanitation related to illnesses and
disease outbreaks
BIR Registration In order to ensure tax compliance and to be 500
allowed to start business operations in the first
place, businesses need to be registered with the
BIR.
TOTAL 3,600
Table 4.3 Description of legal requirements

Chapter V

Financial Feasibility

33
 In this chapter the statement of assumption, demand projection, balance sheet,

income statement and cash flow of the business is showed and the projected

expense of the project as well.

Capital Requirement

The estimated total project cost for our sweet potato ice cream to operate well

amount to PHP 252,434. The pre- operating costs includes taxes and licenses such

as barangay clearance for business, Major business permit, community tax certificate

and other documents, as well as equipment l, machineries, raw materials. The owner

must have starting capital of PHP 300, 000 at least the capital comes from own

savings and investment of the owner.

Canales, Capital 300,000

Total Capital 300,000

Required Cash Outlay:

Budget for Taxes and Licenses
Taxes and licenses 3,000
Sanitary, Permit 600 3,500
Purchase of PPE 280
Purchase of furniture & fixture 1,160
Purchase of raw materials for month 8,547
Renovation 34,080
47,566
Cash on Hand 252,434
Description
Table 5.1. Pre-operating and initial investment of the owner

M&D Sweet Potato Ice Cream

Pre-operating Cash flows
Operating Activities
Required Cash Outlay:
Payment for equipment 79,679.00
Payment for vehicle 120,900.00
Payment for taxes and licenses 3,000.00

34
 Total Cash Outlay 203,579.00
Pre-operating Cash Flow

Table 5.2. M&D Sweet Potato Ice Cream Pre-operating Cash Outflow

Major Assumption:

 The business will be classified as a proprietorship with an initial investment

PHP 300.000.00

 The preparation of the business will start early on January 1, 2024. While the

companies normal operating cycle and financial calendar will presume to

begin on May 1, 2024

 All the capital needed and other operating expenses i.e. cost of services, and

supplies expenses are financed solely by the owner’s contribution.

 All transactions on sales will on cash basis only.

 The projected sales will increase 6% each month.

 The cost of goods sold includes now materials each month, assuming the

business’s entirely consumes it.

 The salaries expense contains payments to the manager, server/cashier,

rider, and marketing manager which is paid every Saturday of the week.

 Depreciation of machinery and equipment are on the straight – lines basis.

Furniture and fixture will be bought on Feb. 01, 2024, with five years of useful

life and no residual value.

 Depreciation of vehicle is on a straight – lines basis.

M&D SWEET POTATO ICE CREAM

Projected in Income statement
For the Year Ended Dec. 31
2023 2024 2025 2026 2027

35
 Sales 1,003,068 1,045,229 1,139,921 1,215,372 1,295,9
Cost of Goods sold 22,560. - - - -
Gross income 980,508 980,508 980,508 980,508 980,508

Less Expense:
Salaries expense 201,600 - - - -
Supplies Expense 5,700 - - - -
Utilities Expense 63,600 - - - -
Permit and Licenses 3,000 - - - -
Depreciation Expense 27,055 - - - -
Rent Expense 14,400 - - - -
Furniture and Fixtures 1,060 - - - -
Renovation Expense 34,080 - - - -
Total Expense: 350,495 350,495 350,495 350,495 350,495

Net Income Before Tax 630,013 987,174 766,866 951,685 922,859

Income Tax 157,503 246,794 191,717 237,921 230,715
Net Income After Tax 472,510 740,380 575,149 631,738 692,149
 ht – line basis. The ice cream cart will also bought in Jan. 01, 2024, with ten

years of useful life and residual value.

 The business set aside with income tax 25%.

A. Income statement for 5 years of operations

Table 5.3. Income statement for the year 2023-2025.

B. Statement of Changes in Owner’s Equity for 5 years of operation

M&D Sweet Potato Ice Cream

Projected Changes in Owner’s Equity
For the Year Ended Dec. 31

36
 2023 2024 2025 2026 2027
Beginning equity 300,000 772,510 1,512,89 2,088,039 2,719,822
Net Income 472,510 740,380 0 631,783 692,144
Capital Withdrawal - - 575,149 - -
-
Ending Equity 772,510 1,512,890 2,088,03 2,719,822 3,411,966
9
Table 5.4. Statement of Changes in Owner’s Equity for the year 2023-2025

M&D Sweet Potato Ice Cream

Projected Statement of Financial Position
For the Year Ended Dec 31.
2023 2024 2025 2026 2027
Assets
Current Assets
Cash 875,603 1,484,689 2,187,301 2,964,11 3,820,157
Accounts Receivable 23,722 255,007 228,373 1 121,039
Total Current Assets: 899,325 1,739,705 2,415,674 184,121 3,941,196
3,148,23
Non-Current Assets 2
Furniture and Fixture 1,060 1,060 1,060 1,060
Less: Accumulated Depreciation (27,055) (27,055) (27,055) (27,055)
Total non-current assets -25,995 -25,995 -25,995 1,060 -25,995
(27,055)
-25,995
Total Assets 873,330 1,713,710 2,389,237 3,122,23 3,915,201
7
Liabilities
Accounts Payable 100,820 100,820 100,820 100,820 100,820
Total Liabilities and Equity 100,820 100,820 100,820 100,820 100,820

C. Balance Sheet for 5 years of operation.

EQUITY
Owner`s Equity 300,000 873,330 1,713,710 2,389,67 3,122,237
Add: Net Income 472,510 740,380 575,149 9 692,144
631,738
Total Liabilities & Equity 873,330 1,713,710 2,389,679 3,122,23 3,915,201
7
Table 5.5. Balance Sheet for the Year 2023-2027

37
D. Statement of Cash Flow for 5 years of operation

M&D Sweet Potato Ice Cream

Projected of cash flows
For the Year ended Dec 31.
2023 2024 2025 2026 2027
Cash inflows
Cash, beg. 875,603 1,484,698 2,187,301 2,964,111
Owner Capital 300,00
Sales 1,003,068 1,045,229 1,139,921 1,215,372 1,295,914
Total cash 1,303,068 1,920,832 2,624,690 3,402,673 4, 260,025
inflows

Less: cash
outflows
Purchased fixed
assets 3,000
Purchased of raw
materials 22,560 23,688 24,872 26,116 27,422
Salary and wages 201,600
Office supplies 201,600 1,060 201,600 201,600 201,600
Rent 1,060 14,400 1,060 1,060 1,060
Income tax 14,400 14,400 14,400 14,400
Total operating 184,845 195,386 195,386 195,386 195,386
expenses 427,465 436,134 473,318 438,562 439,868

Cash balance end 875,603 1,484,698 2,187,301 2,964,111 3,820,157

Table 5.6. Statement of Cash Flows for the Year 2023-2024

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Note 1. Sales

Description 2023-2027
Sales
Ice cream cup per year 4,380
Plastic container per year 264
Sales per day (walk-in)60% 1,791
Sales per day (delivery)40% 1,191
Total sales per day 2,982
Working days 26
Sales per month 77,532
Months per year 12
Sales per year 930,384

Sales per year per ice cream cups 30,000

Sales per year per plastic container 384,000

Total sales 1,344,000

Recurring Expenses

Note 2. Cost Goods Sold

Cost of Goods Sold for Sweet Potato Ice Cream

2023 2024 2025 2026 2027
Sweet potato 2,160.00 2,160.00 2,160.00 2,160.00 2,160.00
Kremdensada 5,040.00 5,040.00 5,040.00 5,040.00 5,040.00
Evaporada 5,760.00 5,760.00 5,760.00 5,760.00 5,760.00
Nestle cream 9,360.00 9,360.00 9,360.00 9,360.00 9,360.00
Food color 240.00 240.00 240.00 240.00 240.00
Total cost for a 22,560.00 22,560.0 22,560.00 22,560.00 22,560.00
year 0
Table 5.7

39
Note 3. Salaries Expense

Description 2023 2024 2025 2026 2027

SSS contribution 400.00 400.00 400.00 400.00 400.00
Philhealth contribution 400.00 400.00 400.00 400.00 400.00
Total contribution 800.00 800.00 800.00 800.00 800.00
Payment to
employees 5,600.00 5,600.00 5,600.00 5,600.00 5,600.00
Cashier/server 5,600.00 5,600.00 5,600.00 5,600.00 5,600.00
Delivery rider 5,600.00 5,600.00 5,600.00 5,600.00 5,600.00
Marketing manager 16,800 16,800 16,800 16,800 16,800
Monthly payment to
employees
Months of operation 12 12 12 12 12
Salaries expense 201,600.00 201,600 201,600 201,600 201,600
Table 5.7

Note 4. Depreciation expense

Description 2023 2024 2025 2026 2027

Ice cream vehicle 24,180.00 24,180. 24,180. 24,180. 24,180.
Dipping cabinet 20,000.00 2,222 2,222 2,222 2,222
Soft serve ice cream 3,400.00 850.00 850.00 850.00 850.00
machine
Blender 2,600.00 650.00 650.00 650.00 650.00
Electric mixer 758.00 189.5 189.5 189.5 189.5
Spatula 297.00 148.5 148.5 148.5 148.5
Total depreciation 27,055.00 28,240 28,240 28,240 28,240
Table 5.8

Note 5. Supplies expense

Description 2023 2024 2025 2026 2027

Plastic container 264 264 264 264 264
Plastic ice cream cups 4, 380.00 4,380.00 4,380.00 4,380.00 4,380.00
Spoon ice cream/ sticks 1, 056.00 1,058.00 1, 056.00 1,056.00 1,058.00

Total supplies expense 5,700.00 5,700.00 5,700.00 5,700.00 5,700.00

Table 5.9

40
Note 6. Utilities expense

Description 2023 2024 2025 2026 2027

Gas 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00
Electricity 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00

Total utilities 63,600.00 63,600.00 63,600.00 63,600.00 63,600.00

expense
Table 5.10

Note 7. Permits and licenses

Description 2023 2024 2025 2026 2027

BIR registration 500.00 500.00 500.00 500.00 500.00
Mayor’s permit 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
BFP clearance 500.00 500.00 500.00 500.00 500.00
Brgy. Clearance 500.00 500.00 500.00 500.00 500.00
Total permits 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
and licenses
Table 5.11

ROI
Earnings for 5 years
2023 472,510
2024 740,380
2025 575,149
2026 631,738
2027 692,149
Total Earnings 3,111,926
Less: Initial investment 300,000
Total 2,811,926
Divided by initial investment 300,000
Return on investment for 5 years 9.37
Table 5.12 Return on Investment

The table shows that after 5 years the ROI will be recovered and be 9.37 times more

than the initial investment. This is high for the business.

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 Financial Ratios 2023 2024 2025 2026 2027
Liquidity Ratio
Cashflow/current 8.68 14.73 21.69 29.40 37.89
liabilities
Solvency Ratio
Equity/Total Asset 0.34 0.51 0.72 0.77 0.79
Profitability Ratios
Return on Equity
Net Income/Equity 1.48 0.85 0.34 0.26 0.22

The business has the ability to cover it’s financial obligations since it’s solvency ratio

for 4th and 5th year of operation is high. While more than 8.68 liquidity ratio means

that the business has the ability to convert assets to cash or acquire cash to pay it’s

short-term obligations or liabilities.

The return of equity had resulted 1.58 and decreasing in the next year’s. this is a

challenge for the business because to keep increasing their ROE through increasing

sales and decreasing expenses.

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 CHAPTER VI

Conclusion and Recommendation

Market feasibility shows the description of the business, current market,

competition and sales potential client, and sales analysis. Projected population of

Can-avid Eastern Samar for the next five years was projected according to PSA

having it’s growth rate of 0.66%. Estimated Annual Projected Sales in Peso using 8%

market share, resulting to 42,161 increase every next year as its projected sales.

The proposed business fixed capital cost is 34,080 for renovation of the

showroom, 27,055 for purchasing of machineries and equipment, 1,060 for furniture

and fixtures, the business pre-operating cost for permits and licenses is 3,000. 9,846

for purchasing of supplies and materials and 5,000 in utilities expense yearly.

The proposed business sweet potato ice cream is a sole proprietorship where

the owner is part of managing the day-to-day operation. Minimum wage rate is

Pho200.00 per day some is given to its two hired skilled worker, and some of the

compensation like health insurance and paid time off, etc.

The proposed business estimated total project capital is Php 300,000 which

derived from the personal savings of the owner. All the capital need and other

operating expenses are financed solely by owners contribution. Sales each

succeeding year from 2,033,068 initial sales increase in 42,161 in next 4 years while

having its proposed business, business projected income statement for 2023; net

income after tax is 472,510, year 2024 is 740,380 while decreasing in a year 2025.

However, year 2026 increase having it’s total net income after tax of 631,738 and

692,149 for the last projected year which is 2027.

43
 The business also projected the financial ratios where it found out that the

proposed business has the ability to it’s financial obligations as presented in the table

the increasing solvency ratio. And more than 8.68 liquidity ratio which show that the

business has enough liquid asset to pay its short-term obligations or liabilities the

ROI resulted 1.58 while decreasing in the next year’s, however, the proposed

business needs to increase sales and decrease its expenses. After the next five

years of operation ROI will be recovered and 9.37 times more than its initial

investment.

Therefore, the proponents concluded that the business has the potential to be

feasible based from the result of projected sales and financial statements and ratios.

44