TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES

Author: MELRIC

Business Plan (APRIL 2024)

Mailing Address Mobile Number Email Address

Table of Contents
I. Executive Summary..........................................................................................................................2
Highlights
Vision Statement
Objectives
II. Business Description..........................................................................................................................3
Enterprise History
Location
III. Marketing Plan..................................................................................................................................4
Product Specification
Market Analysis
Target Market
Competition
Pricing Strategy
Promotional Strategy
IV. Organizational Plan..........................................................................................................................6
Organizational Chart
Qualifications and Responsibilities
V. Production Plan.................................................................................................................................7
Product Quality Specification
Production Schedule
Production Process
Machinery, Equipment and other Fixed Capital
Supplies and Materials
Labor Requirement
Production Lay-out
VI. Financial Plan..................................................................................................................................10
Sales Projection
Cost Projection
Source of Capital
Projected Income Statement
Projected Cash Flow Statement
Projected Balance Sheet
Break-Even Analysis
VII. Risk Management............................................................................................................................15
Executive Summary
Tropical Treats aims to bring refreshing, healthy beverages to the community of Baganga in Davao
Oriental, Mindanao. Our focus is on providing fresh fruit juices and shakes made from locally sourced
fruits, catering to the growing demand for nutritious alternatives to sugary drinks. With our commitment
to quality and sustainability, we envision becoming the go-to destination for residents and tourists seeking
delicious and revitalizing beverages.

Vision Statement: At Tropical Treats, we envision a vibrant community where everyone can enjoy the
goodness of fresh fruits in every sip, promoting wellness and sustainability one juice at a time. We strive
to become a beloved establishment that not only serves delicious beverages but also contributes to the
local economy and environment through responsible sourcing and community engagement.

Objectives:

1. To establish Tropical Treats as the premier destination for fresh fruit juices and shakes in
Baganga, Davao Oriental, within the first year of operation.

2. To maintain strict quality control measures, ensuring that only the freshest and highest quality
fruits are used in our beverages.

3. To cultivate relationships with local farmers and suppliers to support the community and promote
sustainable agriculture.

4. To continuously innovate our menu offerings, introducing new and exciting flavor combinations
to keep customers coming back.

5. To contribute to the health and well-being of our customers by offering nutritious alternatives to
traditional sugary drinks, thereby promoting a healthier lifestyle in the community.

In pursuit of these objectives, Tropical Treats will leverage strategic marketing initiatives, community
outreach efforts, and a dedication to customer satisfaction to establish itself as a trusted and beloved
establishment in Baganga, Davao Oriental. Through our commitment to quality, sustainability, and
customer service, we aim to make a positive impact on both the local economy and the health and
wellness of our patrons.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 2

Business Description
Tropical Treats is an upcoming establishment in Baganga, Davao Oriental, poised to revolutionize
the local beverage scene with its focus on fresh fruit juices and shakes. Founded by Melric, a passionate
entrepreneur with a vision for promoting wellness and sustainability, Tropical Treats aims to offer a
delicious alternative to traditional sugary drinks while supporting local farmers and the environment.
In this business plan, we will outline the comprehensive strategy for Tropical Treats, detailing our vision,
objectives, market analysis, operational plan, marketing approach, and financial projections. Readers can
expect to gain insight into our commitment to quality, sustainability, and community engagement, as well
as our plans for establishing Tropical Treats as the premier destination for fresh and revitalizing
beverages in Baganga, Davao Oriental. From our sourcing practices to our menu innovation and customer
service initiatives, this paper will provide a thorough overview of how Tropical Treats plans to make a
positive impact on the local economy and the health and wellness of our patrons.
Enterprise History
Tropical Treats has its roots deeply embedded in the lush landscapes of Baganga, Davao Oriental.
Founded by Melric, a local entrepreneur with a passion for promoting healthy living and supporting the
community, the idea for Tropical Treats was born out of a desire to offer an alternative to the sugary and
artificial beverages dominating the market.

Melric's journey began with a profound appreciation for the abundant natural resources of the region,
particularly its diverse array of fresh fruits. Recognizing the opportunity to harness these resources to
create something both delicious and nutritious, Melric embarked on a mission to bring the goodness of
fresh fruit juices and shakes to his community.

Driven by a commitment to quality, sustainability, and community engagement, Melric painstakingly

built Tropical Treats from the ground up. From forging partnerships with local farmers to sourcing the
finest fruits available, every decision was guided by the vision of creating a positive impact on both the
local economy and the health and wellness of his fellow Baganga residents.

The compelling reason for starting Tropical Treats lies in Melric's unwavering belief that everyone
deserves access to wholesome and revitalizing beverages. With rising concerns about the health effects of
excessive sugar consumption and a growing demand for healthier alternatives, Melric saw an opportunity
to fill a gap in the market while simultaneously supporting local farmers and promoting sustainable
agriculture practices.

Through his dedication, perseverance, and entrepreneurial spirit, Melric has transformed Tropical Treats
from a mere concept into a thriving enterprise poised to make a meaningful difference in the lives of the
people of Baganga, Davao Oriental. As the business continues to grow and flourish, Melric remains
steadfast in his commitment to providing delicious, nutritious, and locally sourced beverages that nourish
both the body and the soul.

Enterprise name Tropical Treats

Enterprise location/address Baganga, Davao Oriental, Mindanao
Products/service offered Fresh fruit juices and shakes made from locally sourced fruits

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 Type of business Beverage retail
Proprietors Melric

Start-up capital The start-up capital for Tropical Treats is estimated to be PHP
100,000. This capital will cover expenses such as leasing a suitable
location, purchasing equipment and ingredients, initial marketing
efforts, and other operational costs required to launch the business
successfully.

Location
Tropical Treats is strategically situated in the heart of Baganga, Davao Oriental, on one of the bustling
streets frequented by both locals and tourists. The chosen location offers high visibility and foot traffic,
making it an ideal spot to attract customers looking for refreshing beverages in the tropical climate of
Mindanao.
Surrounded by the natural beauty of Davao Oriental, the location of Tropical Treats provides a serene and
inviting ambiance for customers to enjoy their drinks. With its proximity to local fruit farms and markets,
the enterprise ensures easy access to fresh and quality ingredients, reinforcing its commitment to using
locally sourced produce
Moreover, the vibrant community of Baganga provides ample opportunities for Tropical Treats to engage with
residents and establish strong relationships with customers. By becoming an integral part of the local fabric, the
enterprise aims to not only serve delicious beverages but also contribute to the economic growth and well-being of
the community.
Overall, the location of Tropical Treats embodies the essence of its mission—to provide a refreshing oasis where
people can indulge in wholesome beverages while embracing the natural beauty and flavors of Davao Oriental.
.

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Marketing Plan
In this section, we will delve into the comprehensive marketing strategy for Tropical Treats, outlining our
approach to promoting our fresh fruit juices and shakes to our target audience in Baganga, Davao
Oriental, and beyond. We will explore various marketing channels and tactics aimed at raising brand
awareness, attracting customers, and fostering long-term loyalty. From digital marketing initiatives to
local community engagement efforts, this section will provide a detailed roadmap for how Tropical Treats
plans to effectively market its products and establish a strong presence in the marketplace.
Product Specification
Tropical Treats offers a range of refreshing beverages made from locally sourced fruits, carefully crafted
to deliver a burst of flavor and nutrition in every sip. Our menu features an array of fresh fruit juices and
shakes, each meticulously prepared to ensure the highest quality and taste.
Fresh Fruit Juices:
 Our fresh fruit juices are made from a variety of locally sourced fruits, including mangoes,
pineapples, oranges, and watermelons.
 Each juice is freshly squeezed to order, preserving the natural flavors and nutrients of the fruits.
 Customers can choose from single fruit options or opt for tantalizing combinations to create their
perfect blend.
Shakes:
 Our shakes are a creamy and indulgent treat made by blending fresh fruits with dairy or non-dairy
bases, such as milk, yogurt, or coconut water.
 We offer a range of classic flavors like banana, strawberry, and avocado, as well as unique
combinations like mango coconut and pineapple ginger.
 For an added boost of nutrition, customers can customize their shakes with protein powder, chia
seeds, or other superfood add-ons.
Specialty Offerings:
 In addition to our regular menu, Tropical Treats also offers seasonal specials and limited-time
promotions featuring unique fruit combinations and innovative flavor profiles.
 These specialty offerings allow us to showcase the best of what the local produce has to offer and
keep our menu fresh and exciting for our customers.
Market Analysis

Strengths
 Locally Sourced Ingredients: Tropical
Treats benefits from access to a wide variety
of fresh and high-quality fruits sourced
locally from Davao Oriental, ensuring
superior taste and nutrition in its beverages.
 Unique Selling Proposition: The focus on
fresh fruit juices and shakes sets Tropical
Treats apart from competitors, offering
customers a healthier alternative to sugary
drinks with a distinct tropical flair.
 Community Engagement: The enterprise's
commitment to supporting local farmers and
promoting sustainable agriculture resonates
Weaknesses
 Seasonal Availability: The availability of
certain fruits may be limited by seasonality,
potentially impacting the variety of offerings
and customer preferences during certain
times of the year.
 Dependency on Suppliers: Tropical Treats
relies on local farmers and suppliers for its
ingredients, making the enterprise vulnerable
to fluctuations in supply chain logistics and
market conditions.
 Brand Awareness: As a new establishment,
Tropical Treats may face challenges in
building brand awareness and establishing a

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 5

 with environmentally conscious consumers,
fostering goodwill and loyalty within the
community.
 Strategic Location: Situated in the heart of
Baganga, Davao Oriental, Tropical Treats
enjoys high visibility and foot traffic,
attracting both locals and tourists looking for
refreshing beverages in the tropical climate.
 Quality and Taste: Tropical Treats prides
itself on its dedication to quality and taste,
ensuring that every beverage is expertly
crafted to deliver a burst of flavor and
nutrition, earning repeat business and positive
word-of-mouth referrals.
loyal customer base amidst competition from
established beverage retailers in the area.
 Operational Constraints: Limited resources
and manpower may pose challenges in
meeting the demands of a growing customer
base, particularly during peak hours or
special events.
 Price Sensitivity: While Tropical Treats offers
premium-quality beverages, price sensitivity
among certain segments of the market may
impact sales volume and profitability.

Opportunities Threats
 Diversification of Offerings: Expanding the  Competition: Intense competition from
menu to include additional beverage options, existing beverage retailers and alternative
such as smoothie bowls or wellness shots, beverage options may pose a threat to
can attract a broader customer base and Tropical Treats' market share and
increase revenue streams. profitability.
 Collaborations and Partnerships:  Economic Factors: Economic downturns or
Collaborating with local businesses, hotels, or fluctuations in consumer spending habits can
tourist attractions can enhance brand impact discretionary spending on premium
visibility and attract customers through cross- beverages, affecting sales and revenue.
promotional opportunities.  Supply Chain Disruptions: Disruptions in
 Seasonal Promotions: Leveraging seasonal the supply chain due to natural disasters,
fruits and holidays to introduce limited-time transportation issues, or other unforeseen
promotions and special menu items can events can disrupt operations and affect the
generate excitement and drive sales during availability of ingredients.
peak periods.
 Online Presence: Establishing a strong
online presence through social media
platforms and a user-friendly website can
expand reach and attract customers beyond
the local market.
 Health and Wellness Trends: Capitalizing
on the growing trend towards health and
wellness by promoting the nutritional benefits
of fresh fruit juices and shakes can appeal to
health-conscious consumers seeking healthier
beverage options.

Supporting Statistics:
1. Local Fruit Production (Annual Output):
Fruit Annual Output (metric tons)
Mangoes 5,000
Pineapples 3,500
Bananas 2,800
Oranges 1,200
Watermelons 1,500

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 6

Target Market
Tropical Treats targets a diverse range of customers within the local community of Baganga, Davao Oriental, as well
as tourists visiting the area. Our target market can be segmented as follows:

1. Local Residents:

 Families: Parents looking for healthier beverage options for themselves and their children.

 Young Adults: Health-conscious individuals seeking nutritious and refreshing alternatives to

sugary drinks.

 Students: Students from nearby schools and universities looking for quick and affordable snacks
or study breaks.

 Fitness Enthusiasts: Individuals engaged in sports or fitness activities who prioritize hydration and
nutrition.

2. Tourists:

 Domestic Tourists: Visitors exploring the attractions of Davao Oriental, including beaches,
waterfalls, and eco-tourism sites.

 International Tourists: Foreign travelers seeking authentic local experiences and flavors during
their stay in Baganga.

3. Special Events and Occasions:

 Festivals and Celebrations: Attendees of local festivals, events, and celebrations looking for
refreshing beverages to quench their thirst.

 Corporate Events: Participants of corporate gatherings, conferences, or seminars seeking catering

options or refreshments during breaks.

4. Health and Wellness Seekers:

 Individuals following health and wellness trends, including those on specific diets (e.g., vegan,
gluten-free) or seeking functional beverages with added nutritional benefits.

 Individuals looking to detoxify or cleanse their bodies with natural and revitalizing beverages.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 7

Competition
Tropical Treats faces competition from several established beverage retailers and alternative beverage options in
Baganga, Davao Oriental. Here is an analysis of the main competitors:

1. Competitor A (Local Juice Bar):

 Strengths:

 Established brand presence and loyal customer base.

 Wide variety of fruit juices and smoothies on offer.

 Convenient location with high foot traffic.

 Weaknesses:

 Limited focus on sustainability and community engagement.

 Reliance on imported fruits may result in higher prices.

 Opportunities:

 Collaboration with local farmers to source fresh fruits.

 Expansion of menu to include more locally inspired flavors.

 Threats:

 Potential loss of market share to competitors with stronger sustainability initiatives.

2. Competitor B (Global Fast Food Chain):

 Strengths:

 Recognizable brand name and marketing campaigns.

 Extensive network of outlets across the region.

 Offers a range of beverages, including fruit smoothies and shakes.

 Weaknesses:

 Emphasis on processed and sugary ingredients may deter health-conscious consumers.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 8

  Limited customization options compared to smaller, independent retailers.

 Opportunities:

 Introduction of healthier beverage options to cater to changing consumer preferences.

 Collaboration with local suppliers to incorporate fresh, locally sourced ingredients.

 Threats:

 Increased competition from specialty beverage retailers offering fresher and more natural
alternatives.

Pricing Strategy
Tropical Treats employs a competitive pricing strategy that balances affordability with the perceived value of our
fresh fruit juices and shakes. Our pricing reflects the superior quality, freshness, and nutritional benefits of our
beverages while remaining accessible to our target market in Baganga, Davao Oriental.

1. Value-Based Pricing:

 Our pricing is based on the value that customers perceive in our products, considering factors such
as taste, quality, and health benefits.

 We aim to offer a premium experience at a reasonable price point, ensuring that customers feel
they are getting good value for their money.

2. Competitive Analysis:

 We conduct regular market research and analysis to benchmark our prices against competitors in
the area, ensuring that our pricing remains competitive while still allowing for profitability.

 By monitoring competitors' pricing strategies, we can adjust our prices accordingly to maintain
our position in the market.

3. Tiered Pricing Structure:

 We offer a tiered pricing structure that caters to different customer preferences and budgets.

 Basic fruit juices are priced lower, appealing to budget-conscious customers, while premium
shakes with added ingredients or superfoods are priced slightly higher to reflect their enhanced
value.

4. Promotional Pricing:

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 9

  We occasionally offer promotional pricing during special events, holidays, or as part of marketing
campaigns to attract customers and drive sales.

 These promotions may include discounts, bundle deals, or loyalty programs to incentivize repeat
purchases and foster customer loyalty.

5. Transparent Pricing:

 We believe in transparency in pricing, ensuring that customers understand the factors influencing
our pricing, such as the use of fresh, locally sourced ingredients and sustainable business practices.

 Clear and consistent pricing helps build trust with customers and reinforces the value proposition
of our products.

Promotional Strategy
At Tropical Treats, our promotional strategy focuses on highlighting the freshness, quality, and health benefits of
our beverages while enticing customers with special offers and engaging marketing messages. We aim to create
excitement and drive traffic to our establishment through various promotional tactics and execution styles.

Message and Execution Style:

1. Freshness and Quality:

 Emphasize the use of fresh, locally sourced fruits in our beverages to convey the message of
quality and authenticity.

 Highlight our commitment to using natural ingredients and sustainable practices to appeal to
health-conscious consumers.

2. Health and Wellness:

 Position our beverages as nutritious alternatives to sugary drinks, promoting their health benefits
and role in supporting a healthy lifestyle.

 Incorporate messaging that emphasizes the vitamins, minerals, and antioxidants found in our fresh
fruit juices and shakes.

3. Tropical Experience:

 Create an immersive experience that transports customers to the tropics through vibrant visuals,
tropical-themed decor, and lively music.

 Use engaging storytelling to evoke feelings of relaxation, rejuvenation, and enjoyment associated
with sipping on our refreshing beverages.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 10

 4. Limited-Time Offers:

 Introduce limited-time promotions and seasonal specials featuring unique flavor combinations or
discounted pricing to create a sense of urgency and encourage trial purchases.

 Leverage holidays, festivals, and other special occasions as opportunities to launch themed
promotions and drive foot traffic.

Marketing Channels:

1. Social Media:

 Utilize platforms such as Facebook, Instagram, and Twitter to share visually appealing content,
including photos, videos, and customer testimonials.

 Engage with followers through interactive posts, contests, and giveaways to foster a sense of
community and encourage user-generated content.

2. Local Events and Sponsorships:

 Participate in local events, festivals, and community gatherings to raise brand awareness and
interact with potential customers face-to-face.

 Sponsor or co-host wellness workshops, fitness classes, or charity events to showcase our
commitment to health and community engagement.

3. In-Store Promotions:

 Display promotional signage, posters, and menu boards in-store to highlight ongoing promotions
and limited-time offers.

 Train staff to upsell and cross-promote promotional items to maximize sales opportunities and
increase average transaction value.

4. Email Marketing:

 Build and maintain an email list of customers and subscribers to send out regular newsletters,
promotions, and exclusive offers.

 Personalize email communications based on customer preferences, purchase history, and

demographic information to increase engagement and conversion rates.

5. Collaborations and Influencer Partnerships:

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 11

  Partner with local influencers, bloggers, and micro-influencers to create sponsored content,
product reviews, and social media shoutouts.

 Collaborate with complementary businesses, such as gyms, wellness centers, or boutique hotels, to
cross-promote each other's products and services.

REFRES
BUY DRINK
H

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 12

Organizational Plan
In this section, we will outline the organizational structure and key personnel of Tropical Treats, detailing
roles and responsibilities, as well as the operational workflow of the enterprise. Additionally, we will
discuss our approach to staff recruitment, training, and development to ensure a cohesive and motivated
team that delivers exceptional customer service and operational efficiency. Finally, we will address any
legal and regulatory considerations relevant to the organization's operations in Baganga, Davao Oriental.
Organizational Chart

OWNER

Supervisors/Team
Manager Frontline Staff Support Staff
Leaders

Legal/Compliance Legal/Compliance Legal/Compliance

Officer Officer Officer

Organizational chart of TROPICAL

Qualifications and Responsibilities

Monthly
Salary
Position Qualification Responsibilities (PHP)

Business management
Owner/Founder experience Overseeing overall business operations 60,000

Entrepreneurial mindset Setting strategic direction and goals

Knowledge of local market Making high-level decisions regarding the enterprise

Bachelor's degree in Business

Manager Administration Managing day-to-day operations 40,000

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 13

 Monthly
Salary
Position Qualification Responsibilities (PHP)

Supervising staff and ensuring adherence to operational

Prior managerial experience standards

Strong leadership and

communication skills Implementing business strategies and initiatives

Supervising frontline staff, delegating tasks, and ensuring

Supervisor/Team High school diploma/GED operational efficiency 25,000

Ensuring excellent customer service, resolving issues, and

Leaders Experience in customer service maintaining a positive work environment

Assisting manager in day-to-day operations and staff

Basic managerial skills management

Serving customers, preparing beverages, maintaining

Frontline Staff High school diploma/GED cleanliness, and handling transactions 15,000

Relevant experience in Assisting with inventory management, procurement,

Support Staff operations/administration maintenance, and administrative tasks 20,000

Ensuring smooth operations and supporting other team

Attention to detail members

Bachelor's degree in Law or related Ensuring compliance with local regulations, managing
Legal/Compliance field permits/licenses, and handling legal matters 50,000

Knowledge of relevant laws and

Officer regulations Mitigating risks and ensuring legal compliance

Strong analytical and problem- Identifying and addressing legal issues, conducting risk
solving skills assessments, and implementing policies

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 14

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 15
 Production Plan
In this section, we will outline the production process for Tropical Treats, detailing how we source
ingredients, prepare beverages, manage inventory, and ensure quality control. Additionally, we will
discuss our production capacity, equipment requirements, and any potential challenges or risks associated
with the production process. By providing a comprehensive overview of our production plan, we aim to
demonstrate our ability to deliver consistently high-quality beverages to meet customer demand while
maintaining operational efficiency and profitability.
Product Quality Specification
At Tropical Treats, we are committed to delivering beverages of the highest quality, ensuring that every sip is a
delightful and refreshing experience for our customers. Our product quality specifications encompass various
aspects of our beverages, including freshness, taste, consistency, and nutritional value. Here are the key components
of our quality output:

1. Freshness:

 We source only the freshest and highest quality fruits from local farmers and suppliers, ensuring
that our beverages are made with ingredients at peak ripeness.

 Our fruits are carefully inspected and washed to remove any impurities before being used in our
beverages, preserving their natural flavors and nutritional content.

2. Taste:

 Our beverages are expertly crafted to achieve a perfect balance of flavors, whether it's the
sweetness of ripe mangoes, the tanginess of fresh oranges, or the creaminess of coconut milk in
our shakes.

 We use precise recipes and blending techniques to ensure that each beverage is consistently
delicious and satisfying, meeting the expectations of even the most discerning taste buds.

3. Consistency:

 We adhere to strict quality control measures throughout the production process to maintain
consistency in taste, texture, and appearance across all batches of beverages.

 Our staff undergo rigorous training to ensure that they follow standard operating procedures and
recipes accurately, minimizing variations in product quality.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 16

Production Schedule and Process
At Tropical Treats, our production schedule and process are designed to ensure efficient and timely preparation of
our fresh fruit juices and shakes while maintaining the highest standards of quality and freshness. Here's an
overview of our production cycles and schedule:

1. Sourcing of Ingredients:

 We procure fresh fruits from local farmers and suppliers, ensuring that only the highest quality
and ripest produce are selected for use in our beverages.

 Our procurement team maintains relationships with trusted suppliers and monitors market
conditions to ensure a steady supply of ingredients throughout the year.

2. Preparation and Pre-Production:

 Upon receipt of ingredients, our production team inspects, washes, and prepares the fruits for
juicing or blending.

 Recipes are prepared in advance, detailing the precise quantities of ingredients needed for each
beverage to maintain consistency in taste and quality.

 Equipment, such as juicers, blenders, and refrigeration units, are inspected and maintained
regularly to ensure optimal performance during production.

3. Production Cycles:

 We operate on a daily production cycle to ensure that our beverages are freshly made and readily
available for customers.

 Production shifts are scheduled to coincide with peak demand periods, such as mornings,
afternoons, and evenings, to meet customer preferences and foot traffic.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 17

 SERVE
PROCES
BUY S

Process flow chart of TROPICAL

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 18

Machinery, Equipment and other Fixed Capital
Fixed capital requirement of TROPICAL
Price per Unit Total Cost Mode of Year to Estimated
Tool/Equipment Quantity (PhP) (PhP) Acquisition Purchase Life-span
Juicer 2 15,000 30,000 Purchase 2024 5 years
Blender 3 12,000 36,000 Purchase 2024 5 years
Refrigeration Units 2 50,000 100,000 Purchase 2024 10 years
Storage Containers 100 500 50,000 Purchase 2024 3 years
Sealing Machine 1 20,000 20,000 Purchase 2024 5 years
Display
Refrigerator 1 40,000 40,000 Purchase 2024 8 years
Cash Register 1 10,000 10,000 Purchase 2024 5 years

Supplies and Materials

Supplies and materials requirement for TROPICAL

Materials/Supplies Quantity Price per Unit (PhP) Total Cost (PhP)

Fresh Fruits Various Varies Varies

Ice Varies 50 Varies

Cups and Lids 1000 1.50 1,500

Straws 1000 1.00 1,000

Packaging Materials Varies Varies Varies

Cleaning Supplies Varies Varies Varies

Miscellaneous Varies Varies Varies

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 19

Labor Requirement
Total
Type of Number of Number of Total Labor Payment per unit Cost
Activity Labor individuals days (MD/MAD/MMD) (PhP) (PhP)
Juice
Preparation MMD 2 30 60 MMD 500 30,000
Shake
Preparation MMD 3 30 90 MMD 500 45,000
Cleaning MD 1 30 30 MD 400 12,000
Customer
Service MAD 2 30 60 MAD 350 21,000
Inventory
Control MAD 1 30 30 MAD 400 12,000

Labor requirement for TROPICAL.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 20

Production Lay-out

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 21

SKETCH

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 22

 Financial Plan
In this section, we will outline the financial projections and strategies for Tropical Treats, detailing our
revenue forecasts, expense estimates, profitability analysis, and funding requirements. Additionally, we
will discuss our approach to pricing, budgeting, and financial management to ensure the long-term
success and sustainability of the enterprise. By providing a comprehensive financial plan, we aim to
demonstrate the viability and potential growth of Tropical Treats as a profitable venture in the fresh fruit
juice and shake market.
Sales Projection
Projected sales of the enterprise per month or cycle.
Item Jan Feb Mar Apr May June July Aug Sept Nov Dec TOTAL
Fresh Fruit Juices 500 550 600 650 700 750 800 850 900 950 1000 9350
Shakes 300 330 360 390 420 450 480 510 540 570 600 4810
TOTAL 800 880 960 1040 1120 1200 1280 1360 1440 1520 1600 14160

Projected annual sales of the enterprise.

Cost Projection
Pre-operating expenses of the enterprise.
Items Amount (PHP)

Market Research 50,000

Legal and Regulatory Fees 30,000

Licensing and Permits 20,000

Equipment and Machinery 150,000

Renovation and Setup Costs 100,000

Initial Inventory 50,000

Marketing and Advertising 40,000

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 23

Items Amount (PHP)

Staff Training 30,000

Other Miscellaneous Expenses 20,000

Total Pre-operating Expenses 490,000

Production expense of the enterprise.

Production Items Yearly Total Cost Projection (Quantity x Price)

Direct Costs

- Fresh Fruits 600,000

- Ice 60,000

- Cups and Lids 18,000

- Straws 12,000

- Packaging Materials 40,000

- Cleaning Supplies 10,000

- Miscellaneous 20,000

Indirect Costs

- Utilities 30,000

TOTAL PRODUCTION EXPENSE 790,000

Marketing expense of the enterprise.

TROPICAL TREATS: FRESH FRUIT JUICE AND SHAKES– April 2024 24

Marketing Items Yearly Total Cost Projection (Quantity x Price)

Advertising 50,000

Social Media Campaigns 30,000

Promotional Events 20,000

Collateral Materials 15,000

Sponsorships 25,000

Other Marketing Costs 10,000

TOTAL MARKETING EXPENSE 150,000

Administrative expense of the enterprise.

Yearly Total Cost Projection (Quantity x
Administrative Items Price)

Office Rent 60,000

Utilities 20,000

Office Supplies 15,000

Insurance 10,000

Salaries (Administrative Staff) 300,000

Miscellaneous Expenses 5,000

TOTAL ADMINISTRATIVE EXPENSE 410,000

Source of Capital

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Sources of funds for the enterprise.

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Projected Income Statement

Projected Cash Flow Statement

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Projected Balance Sheet

Break-Even Analysis

Where:

 Fixed Costs: Costs that do not change with the level of production or sales (e.g., rent, salaries).

 Selling Price per Unit: The price at which each unit is sold.

 Variable Costs per Unit: Costs that vary directly with the level of production or sales (e.g., raw materials,
labor).

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  Selling Price per Unit: PHP 50

 Variable Costs per Unit: PHP 20

 Fixed Costs: PHP 100,000

Using these values, we can calculate the break-even point in units and in revenue.

Item Amount (PHP)

Selling Price per Unit 50

Variable Costs per Unit 20

Fixed Costs 100,000

Break-even Point (in units) 5,000

Break-even Point (in revenue) 250,000

This means that the business needs to sell 5,000 units to cover its costs and break even. At a selling price of PHP 50
per unit, this corresponds to total revenue of PHP 250,000.

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Risk Management

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