“Tamang tamis at sarap, sa BesTea mo lang malalasap!

INTRODUCTION

There are some tough days, that might be a cup of milk tea, juice tea,
or coffee can boost once energy immediately. Besides, millennial nowadays
are into something trend and delicious. They want to experience different that
are opposed to what they already knew or to what their tongue already tasted,
that’s why the owners come up to the idea to start a business called “BesTea”
which will serve millennial’s favorite, milk tea and coffee. The Tea hub
company owned by business partners Paolo Abrera, Nathaniel Mimay, Kate
Cano, Janine Gacer, John Allen Reyes, John Lawrence Ponciano, Johnroy
Bitangcor, and Shiela Mae Salar will be a licensed and ensured milk tea shop
located in Tigaon, Camarines Sur. The company assures to serve the finest
single-estate teas and create unique hand-crafted blends of milk tea and
coffee. From plan and scratch, the owners will bring together the finest natural
ingredients and flavors that the customers will definitely enjoy.

Developing a new product for the public is never an easy undertaking.

The number of new products that actually make it is insignificant to the total
numbers that are actually produced. The owners believe that they have found
one of those products that will make an impact and ultimately be successful is
a special milk tea and coffee. The healthy drink will provide the customers
with an almost endless amount of healthy alternatives to the other drinks. This
information will provide sales, costs, profits, market, competitors, and
distribution. Additionally, the business will measures its financial success in
terms of increased market share and in earnings. With an estimated local
market of almost 20 thousand within Tigaon Area, this is a tremendous
opportunity! This business describes a profitable dealing and a competitive
team with good growth prospects.

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 EXECUTIVE SUMMARY

Sometimes a full-scale study cannot be justified because there are too

many unknowns, or because a critical piece of information is lacking.

BesTea is the vision of providing fun, deliciously appetizing, uniquely

enhancing food products while maintaining the commitment to
uncompromised quality at economical rates with a heartening purpose to
cater to society’s needs, taste and preferences: rather than simply convincing
the customers to try and like whatever products the owner’s might develop.

Developing a new product for the public is never an easy undertaking. The
number of new products that actually make it is insignificant to the total
numbers that are actually produced. The owners believe that they have found
one of those products that will make an impact and ultimately be successful is
a special milk tea and coffee. The healthy drink will provide the customers
with an almost endless amount of healthy alternatives to the other drinks. This
information will provide sales, costs, profits, market, competitors, and
distribution.

Further, BesTea will promise the customers to provide the quality, reasonably
priced product in industry. The owners aim for continuously generate
awareness, interest and desire for the product, resulting in frequent purchases
by the customers. To start the business the owners plan to divide the capital
into five, and start of producing small batches at first to introduce it to people.
The Tea hub is a partnership type for the proponents will divide the financing
and management into five. The owners plan to equally divide the
management among them. And also the profit that the owners will earn will be
divided among them. They have a share capital amounting to ₱158,100 that
they divided to buy equipments, materials and ingredients for the production.

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 Business Model

KEY KEY ACTIVITY VALUE CUSTOMER RELATIONSHIPS CUSTOMER

PARTNERS PROPOSITIONS SEGMENTS
-Manufacturing -Interaction via social media
-Popular -Selling -Provide a -Solo
Household accessible and -Personal communication -Friends
Names Inc. inclusive space with the customer and -Families
-PowerAce employees -Kids/ Teens/
Corp. -Provide a high Adult (random
quality drinks age)
-Students &
KEY -Promote DISTRIBUTION CHANNEL Workers
KEY RESOURCES inclusion
PRODUCTS Social media
-Stock, supply -Well- -Facebook
-Milk tea and storage established, Bestea Partido
-Fruit tea -Product very credible
-Frappe -Instagram
-Coffee products and
services @itsbesteaPartido

Contact number
(please insert a contact
number here)

COST STRUCTURE REVENUE STREAMS

-Business Permits (Business Name Registration, -Product Sales/Income

Mayor’s Permit/ Residence Certificate and
Sanitary Permit, BFAD Certificate, others)
-Premises Improvements
-Rent (Building)
-Kitchen Wares
-Pre Opening/ Operating Expenses
-Design and Decorations
-Equipments
-Ventilations (Electric fan, AC)
-Tables and Chairs
-Employees salaries
-Miscellaneous

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Start-up Summary

The start-up expenses included the following:

The start-up expenses included the following:

 Business Registration expenses for acquiring licenses and business

permits costing ₱15,000.
 Marketing promotion expenses for the pre opening of Super Tinapa in
the sum of ₱2,000 and as well as tarpaulin printing (30 tarpaulins at
₱75.00 per reproduction) for the total amount of ₱2,250.
 Insurance (employee’s recoupment and property damages) coverage
at a total of ₱15,000.
 Rent expenses monthly amounting ₱1,500.
 Building improvements including the artwork and designs of the store,
₱7,000.
 Other start-up expenses together with stationery materials (pen, sticky
note) at ₱1,000 and utility expected bills (water and electricity) for the
total amount of ₱2,000.

The required start-up assets of ₱122,350 including:

 Working Capital-Cash for the total of ₱20,000.

 Employees’ remuneration of ₱350.00 monthly.
 Start-up inventory of 25,000
o Milk tea & fruit tea ingredients- ₱15,000
o Coffee & Frappe ingredients - ₱10,000
 Equipment and Supplies for the sum of ₱67,000.
o Food service equipment (coffee machine, refrigerator, blender) -
₱50,000
o Store Equipment (ventilation (air-conditioner & electric fan), cash
register) - ₱10,000

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 o Serving Area Tools/ Kitchen Tools (casserole, frying pan,
flatware, utensils, etc.) - ₱5,000
o Store Supplies - ₱2,000
 Furniture and Fixture for the total of ₱10,000
 Table and Chairs - ₱5,000
o Storage Furniture and Fixtures (food case, utensil cabinet, etc.) -
₱5,000

BesTea has a total start-up cost of ₱158,100 from the primary cost of
the equipment, legal expenses, and furniture and fixtures that will be divided
into 12% with the amount of ₱18,972 for each member of Tea Hub Company
as partnership contributions.

ENVIRONMENTAL ANALYSIS

SWOT Analysis
Strengths
1. It is very convenient to buy.
2. It is a popular drink to customers within the target area of
operation, mostly a popular take-away snack.
3. Purchasing BesTea’s milk tea and coffee will not just let customers
enjoy a great beverage but also supporting local business as well.
Weaknesses
1. Production is limited due to few numbers of workers.
2. The suppressing of challenges of establishing name in the market.

Opportunities
1. Other potential entrepreneurs may use BesTea for franchise, or the
product may use of resell.
2. Production of different kind of product related to the existing one.
3. Uplift the local and independent business in Partido Area.

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 Threats
1. There will be a shortage of production when the suppliers run out
of supplies.
2. Immediate change in the taste or preference of the customers.
3. Unexpected calamities could delay the regular operation.

Growth Potential & Opportunities

a. Increased Demand: BesTea will be targeting this segment of the

market during their expansion.

b. Shelf Lives Extended: The Company will also try to follow the new
packaging techniques to increase the shelf life of products during their
expansion.

Barriers to Grow

a. Volatility of Raw Materials & Energy Costs: BesTea faces a

challenge in regards to its futures contracts as there will always be a
risk associated with changing prices.

b. Competition: BesTea has around 5 Milk tea and café competitors in a

close proximity of 5 mile radius.

Hence the organization and the whole Tea hub and BesTea team faces a
threat from competitors.
a. Food & Drug Administration (FDA) Guidelines: It is mandatory to
follow the guidelines of FDA periodically and obtain their approval.

b. Appealing to Consumer Tastes: Tea Hub Company will have to

regularly conduct market research in order to appeal to the current
consumers’ tastes regarding BesTea’s products.

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Measures to Overcome Barriers

a. Ability to pass on cost increases to the customer: The business is

planning to adopt this technique to balance the increased costs
depending on the changes in the market conditions.

b. Secure supply contracts for key ingredients: BesTea is planning to

secure its contracts for longer durations with wholesalers like Costco
for the purchase of the key raw materials like flour.

BUSINESS DESCRIPTION

Beverages are the staple to any lifestyle. Everyone has different

aspirations; some to gain muscle, so they drink protein beverages; some to
lose weight, so they drink tea; some to stay awake, so they drink coffee.
However, Filipino have fallen in love with coffee & tea, leaving anyone who
isn’t a coffee lover nowhere to turn to for a beverage. BesTea is positioned to
bring a solution to this problem by offering a variety of milk tea and coffee
drinks in Tigaon, Camarines Sur.

BesTea will offer four main beverages: milk tea, fruit tea, frappe, and
coffee. Additionally, customers will be provided with modern study spaces and
quiet rooms to maximize customer satisfaction. Additives, such as tapioca or
protein powder, will be available to every customer to maximize customer
satisfaction and make BesTea unique. The business is focused on creating
superior beverages that will satisfy customers and maximize profits.
According to Food Business News, soda consumption has decreased while
organic options have soared in demand in the past five years. BesTea intends
to meet that demand in Partido Area, especially in Tigaon by offering a unique
type of milk tea blends. Aside from the four primary options on its menu,

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BesTea will also offer snacks such as nachos, clubhouse, and fries that are
perfect for milk tea and coffee drinks to ensure any customer will be satisfied.

Moreover, the whole team of Tea Hub Company will channel a friendly and
pleasant atmosphere in every customer that they will interact and a productive
environment in which the group can work happily. The owners will seek far
and responsible profit, enough to keep the team financially healthy for the
long term and to fairly compensate the future investors for their investments
and risk. Finally, the key to success for BesTea will be repeated business and
the right food with a right price.

ORGANIZATIONAL PLAN

BesTea will be a limited liability business. This form of business will allow for
BesTea to determine its structure, protect the owners’ assets, and build
business credit. As owners of a limited liability company, Paolo Abrera,
Nathaniel Mimay, Kate Cano, Janine Gacer, John Allen Reyes, John
Lawrence Ponciano, Johnroy Bitangcor, and Shiela Mae Salar will bring
marketing, accounting and finance, and business administration skills to
BesTea and to the whole Tea Hub Company. With this combination of skills
and a delightful product, BestTea will be able to flourish.

Form of Business Organization

BesTea is a partnership business owned by Tea Hub Company which

being managed by Paolo Abrera, Nathaniel Mimay, Kate Cano, Janine
Gacer, John Allen Reyes, John Lawrence Ponciano, Johnroy Bitangcor,
and Shiela Mae Salar, General Academic Strand (GAS) and
entrepreneurship students that tend to discover innovative business ideas that

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will contribute a big help to community. To fund the business, each member
will share a capital to invest in the company to sustain the production.

Company Logo Product Logo

Tagline

“Tamang tamis at sarap, sa BesTea mo lang malalasap!” The tagline

emphasizes the exceptionality of taste of Bestea’s products such as milk tea,
coffee, and more. Aside from the uniqueness of the business itself, the tagline
will help to attract the customers’ attention to try and taste the products
offered by BesTea.

Vision

“To provide top-quality beverages at affordable prices. Students and families

can purchase a soothing beverage on their way to school or work, but can
also enjoy their beverage in the comfort of the student-friendly store.”

Mission

“BesTea is committed to assist students and professionals in reaching their

full potential. The owners, Tea Hub Company, and BesTea is dedicated to

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provide student-friendly study spaces, high-quality beverages at reasonable
prices, and community support.”

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Goals

“Tea Hub Company aims to develop an incentive reward program to increase

sales and customer satisfaction through BesTea.”

Objectives

To provide high-quality products, a student-friendly study environment, and

convenience in purchasing beverages, the following are the company’s
objectives:

 Develop a strong presence in the community needed to support sales

goals
 Build profitable customer relationship by delivering superior value
 Form a mutually beneficial business relationship with neighboring
businesses

Organizational Chart

Marketing Manager
Janine Gacer
Business Owners/
Budge & Finance Funders
Managers General Managers
Johnroy Bitangcor & John Lawrence
Kate Cano Ponciano

Production & Operation Supply Manager

Managers Shiela Mae Salar &
John Allen Reyes & Paolo Abrera
Nathaniel Mimay

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Roles and Responsibilities
Job Title Job Description
 Responsible on giving
instructs and supervise
the overall operation of
the business.
General Manager
 She has the supreme
authority towards all the
office heads and its
workers.
The one who is assigned in
selecting a strategy that will
Marketing Manager
be implemented in a
business.
Responsible of making and
evaluating of estimate of
costs, revenues, and
Budget and Finance
resources over a specified
Managers
period, reflecting a reading of
future financial conditions and
goals
Supervises the entire
Production & production of the business
Operation and evaluate the supplies of
Managers all the needed materials and
goods for production.
Manages all of the supply
Supply Managers chain activities for each of the
product categories
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Specialization
The one in charge on the
interview and hiring
process of the business.
Must have a knowledge
and ability to adapt on the
changes in the business to
create new effective
business marketing
strategy.
Must be conversant when
it comes to corporate sales
and prepare and present
all the financial reports of
the business.
Make sure the good
quantity and production
quality of the product and
oversee the cleanliness of
the production area and
manage the proper waste
disposal.
Must be trustworthy.
 Compensation Plan

The business owners/managers will not be receiving salaries rather,

allowances for at least ₱1,000.00 each while the employees will receive a
monthly salary. The owners will initially hire the following people:

 1 cashier to receive cash from the customers

 2 workers to prepare the drinks and other products
 2 waiter/waitress to serve the customers
 1 cleaner to wash dishes and other facilities at the tea shop

POSITION Amount (per month) TOTAL MONTHLY

General Manager 1,000.00 1,000.00
Production & Operation
1,000.00 2,000.00
Managers
Marketing Manager 1,000.00 1,000.00
Budget & Finance Managers 1,000.00 2,000.00
Supply Managers 1,000.00 2,000.00
6 Employees (cashier, server,
350.00 2,100.00
etc.)
TOTAL ₱5,350.00 ₱10,100.00

PRODUCTION PLAN

Production Overview

The BesTea is primary offering milk tea, fruit tea, frappe, and coffee
with such varieties of flavors and additives. Its milk tea has 8 different flavors
such as wintermelon, taro, cookies & cream, dark chocolate, cheesecake,
matcha, salted caramel, and red velvet. While its fruit tea has 6 main flavors,
the kiwi, lychee, blueberry, strawberry, dusk passion, and strawberry lychee.
The frappe, on the other hand, has 5 flavors; java chip, dark chocolate,
cookies & cream, matcha, and cheesecake. . There is only 1 specific size of
each beverage is that is in 1 liter plastic bottle/container. BesTea also offers 4

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varieties of freshly-brewed coffee, the Americano, cappuccino, dark choco,
and creamed coffee. Also, the business also offer snacks such as nachos,
clubhouse, and fries with 6 different cut; onion rings, straight cut, shoestring,
buffalo mojos, crinkle cut, and lattice cut all open for dine-in and take-away
depending to the customers’ preferences.

BesTea assures that the products are delightfully healthy and delicious
since the proponents warily studied and evaluated each ingredients and
procedures in making the product to ensure that it is in a good physical shape
and hale and hearty for every customers.

Product Volume Capacity

The production will base on the estimated capacity that a worker can
do in a day. The owners/managers can still contribute their time in effort in
producing a product because they are hands-on in the business.

Production volume capacity for Milk tea

ESTIMATED
ESTIMATED ESTIMATED
SELLING DAILY
Year MONTHLY ANNUAL
PRICE (₱) PRODUCTION
PRODUCTION PRODUCTION
(units-assorted)
Year 1 90.00 50 1,500 18,250
Year 2 90.00 50 1,500 18,250
Year 3 92.00 70 2,100 25,550
Year 4 92.00 70 2,100 25,550
Year 5 95.00 80 2,400 29,200

Production volume capacity for Fruit tea

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 ESTIMATED
ESTIMATED ESTIMATED
SELLING DAILY
Year MONTHLY ANNUAL
PRICE (₱) PRODUCTION
PRODUCTION PRODUCTION
(units-assorted)
Year 1 80.00 40 1,200 14,365
Year 2 80.00 40 1,200 14,365
Year 3 82.00 50 1,500 18,250
Year 4 82.00 50 1,500 18,250
Year 5 85.00 70 2,100 25,550

Production volume capacity for Frappe

ESTIMATED
ESTIMATED ESTIMATED
SELLING DAILY
Year MONTHLY ANNUAL
PRICE (₱) PRODUCTION
PRODUCTION PRODUCTION
(units-assorted)
Year 1 110.00 40 1,200 14,365
Year 2 110.00 40 1,200 14,365
Year 3 110.00 50 1,500 18,250
Year 4 115.00 50 1,500 18,250
Year 5 115.00 70 2,100 25,550

Production volume capacity for Coffee

ESTIMATED
ESTIMATED ESTIMATED
SELLING DAILY
Year MONTHLY ANNUAL
PRICE (₱) PRODUCTION
PRODUCTION PRODUCTION
(units-assorted)
Year 1 80.00 40 1,200 14,365
Year 2 80.00 40 1,200 14,365
Year 3 82.00 50 1,500 18,250
Year 4 82.00 50 1,500 18,250
Year 5 85.00 70 2,100 25,550
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Product/Service Sourcing

The Tea Hub Company has negotiated supplier agreements with

several local food-service wholesalers in the Philippines that have a
reputation for quality and reliability such as Popular Household Names Inc.
that will provide all the ingredients for milk tea and other beverages and
products, and PowerAce Corporation for the packaging materials such as
plastic cups and bottles, lids, straw, stirrers, meal boxes, paper bags, and
many more. The PowerAce Corporation will also be the one who will provide
the printed plastic bottles for beverages to enhanced and expand the branding
of BesTea’s products.

Future Products/Services

The Tea Hub Company has a long term plans (5 years of operation) to
expand and open, hopefully, a 2nd branch of BesTea in Goa, Camarines Sur.
Within 5 years of operation, the company also plans to include in-store sales
for home purchase as well as an online store. The website will have an option
to purchase prepaid gift card program – Prepaid gift cards not only provide
immediate cash, but also reduce credit card transaction charges and draw
new customers to the business.

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Inventory Control
The production officer will be in charge of inventory management. The
helper will handle the inventory of raw materials and supplies, as well as the
inventory of sold products, under the supervision of the production officer. At
the end of the accounting period, it is assumed that no unit will be left on
hand.

Equipment/Materials Needed

Particulars Quantity Unit Price Total Cost

Ventilation (electric fan) 2 900 1,800
(Air conditioner) 1 6,700 6,700
Refrigerator 1 25,000 25,000
Coffee Machine 2 5,000 10,000
Blender 3 5,000 15,000
Cash Register 1 1,500 1,500
Kitchen Wares (Utensils,
Plates, casserole, frying 2 sets 2,500 5,000
pan, etc.)
Tables 9 138.88 1,250
Chairs 25 150 3,750
Storage Furniture (food
case,
Utensil cabinet, etc.) 1 set 5,000 5,000
Store Supplies 2 sets 1,000 2,000
₱52,888.8
Total 49 ₱77,000
8

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Front-store design & Structure

The front-store design and structure illustrates the humid and

comfortable ambiance the clients can experience while purchasing Bestea’s
product. The entrance door is made up of glass and the whole building is
concrete.

OPEN!
PUSH

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Floor Plan

Counter/Cashier

Dine-in Area
Storage Room Area

Dine-in Area/
Waiting Area
Serving Area/ Pick-
Up area for take-
away orders
Food Prep. &
Dishwashing

Tables & Chairs

Dine-in Area
Area

Purchase Area

MEN C.R
WOMEN
C.R

Entrance/Exit

The front-store design and structure, and the floor plan was designed
by Janine Gacer, the Marketing Manager of the Tea Hub Company.

The shop is composed of 8 divisions. The shop has 3 total dine-in

areas, 1 storage room, a food preparation and dishwashing area, also serving
area or pick-up area for take-away orders, the counter/cashier area where to
order products, and also there is Comfort Room for both women and men.
There are total of 25 chairs and 9 tables. The shop is well-ventilated, clean,
and comfortable for customers to experience and enjoy their dine-in
experience.

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 OPERATIONAL PLAN

Location of the Business

The Tea Hub’s store (BesTea) will operate and located at Aguinaldo St.
Poblacion, Tigaon, Camarines Sur. In between of Adelpha’s Burger & Café
and a fitness gym studio. This location is ideal for BesTea to begin operations
despite the competition with its neighboring business, since it is located in bus
stop area which makes traveling to the store convenient for customers and
near at school and other establishments where target customers are to be
found.

Location Map

Bestea’s Shop

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Gantt chart of Activities

The business needs at least 5 months’ preparation before it can start

its operation. Gantt chart of activities is presented below.

TIME (MONTHS)
ACTIVITIES
1 2 3 4 5
Obtain finances
Securing Permits
Preparing and Furnishing of production
location.
Acquisition of machinery, tools and
equipment
Canvassing and negotiation of
respective suppliers of raw materials.
Hiring of workers
Formal start of business.

Waste Management Control

The operation of the business will generate more recyclable waste.

Other waste materials that will be generated will dispose properly in
accordance with the existing municipal ordinance on solid waste
management.

Business Hours

Storefront hours: 8:00 AM to 7:00 PM Monday-Saturday

9:00 AM to 6:00 PM Sunday

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Legal Environment
Certification/Forms Authority
Department of Trade and Industry-
Business Name Registration
Region V
Mayor’s Permit/ Residence Certificate Municipality of Tigaon, Camarines
and Sanitary Permit Sur
Business Property Statement Municipality of Tigaon, Camarines
Sur
Business Food Handler Card Municipality of Tigaon, Camarines
Sur
Bureau of Internal Revenue (BIR)-
Tax Identification Number (TIN)
Region V
Employment Development
Registration Form for Employees
Department, Tigaon, Camarines Sur
State Board of Equalization, LGU-
Sales & Use Permit (Seller’s Permit)
Tigaon, Camarines Sur
For business security permits, the company would need to apply for
following license and legal forms to be filled with the governmental agencies.

MARKETING PLAN

Marketing & Industry Analysis

Tea has become an adequate substitute for caffeine-induced, sugar-

enhanced beverages such as Coca-Cola. Beverages similar to Coca-Cola
have been found in numerous studies to be closely linked to increased risk of
Type 2 diabetes. In the past five years, traditional soda has lost ₱1 million in
revenue, while healthier beverages continue to grow. As society shifts away
from over-consuming sweetened beverages, the demand for healthy
alternatives grows.

Filipino interest in tea certainly owes some of its increase to the rise of
gourmet coffee shops around the country in this same period. Most of working
Filipinos has accepted the idea of expensive hot beverages as affordable
luxuries, thanks to the marketing efforts of international coffee brand,

22
Starbucks. At the same time, fashion trends are always on the move. Now
that premium coffee beverages are so widely accepted, savvy customers are
looking for new, more unique treats to enjoy. Spurred by studies touting tea’s
health benefits, American consumers have been turning to tea as a more
“natural” affordable luxury. In addition, the cultural connection of tea with all
things “civilized” has made tea knowledge a mark of sophistication among
many Filipinos.

This milk tea business industry has a large market, most people living
in Tigaon is patronizing this kind of production because of its unique taste and
aroma. Therefore, as the time goes by, many have engaged in this kind of
business. This industry must maintain a clean working environment and be
concerned about the health of its customers. Hence, Tea Hub Company will
comply with a requirement from the Department of Trade and Industry (DTI) to
encourage customers to try the company’s products. Furthermore, the
company will adhere to all Tigaon local government policies and regulations.

Growth Rates
Specialty tea, like milk tea & fruit tea, is growing at extraordinary rates,
according to the Tea Association of the Philippines. Specialty tea has been
growing at an annual 8-10% rate, mainly due to students’ and business
people’s delight in the discovery of new and differentiated flavors. This growth
rate is expected to continue for the next five years, indicating an urgency to
join the market.

Nature of Competition
Very few competitors truly compete with milk tea; however, coffee and
soda are the default beverage for most, so they already control 70% of the
non-alcoholic beverages market. Since milk tea is a new and unique type of
beverage, many Filipinos will be hesitant to try the beverages. That makes the
company’s competition a distinct threat. Competition could also bring new

23
customers. Customers who are trying to shift away from the sugar-enhanced
beverages may be eager to try BesTea’s milk tea.

Target Market

The target market of BesTea are the following:

1. Students. This type of customers generally came to the milk tea shop
with their buddies. The majority of them congregate to enjoy simple
fellowship with their friends, and BesTea is the idea shop for them. In
addition, the products are a useful of snacks in schools.

2. Families. BesTea is a great spot for families to spend quality time

together. Most parents are so busy with their jobs that they don’t have
time to spend with their children. It is more convenient for them to taste
milk tea, fruit tea, and other products of BesTea and relax in the
peaceful dine-in store which will keep them stress-free.

3. Regular customers who have special events or celebration to

attend to. Special celebrations are also catered by BesTea.
Customers of this kind can place substantial orders or purchases. The
Tea Hub Company excels at events such as birthday parties,
weddings, anniversaries, Christmas parties, and many more.

4. Other latent customers. Customers that just drop in or pass through

are also welcome. As a result, it is possible for passengers to use it as
a drive through. BesTea does not discriminate any customers, as the
products are suitable for anyone.

Size of the Business

BesTea will be considered as a small independent business which will
employ more or less 6 employees. The number of people in the business
defines its size. The estimated 6 employees can accommodate 50-100

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customers a day since its owners/managers will also help to operate the
business on a daily basis.

Strategy and Implementation

ST Friends Company will develop the marketing strategies based on

the 7P’s of marketing. The seven Ps stands for Product, Place, Price,
Promotion, People, Packaging, and Positioning.

 PRODUCT
BesTea’s main products are milk tea, fruit tea, frappe, and coffee with
different flavors that customers will surely love. The size of cup per
serving is 1 liter, that’s why it is worthy for customers to purchase the
product. Regarding with the sugar level of milk tea, the customers has
5 options that will suit their preference; normal-100%, less-75%, half-
50%, little-25%, and zero. Also, snacks like nachos, clubhouse, and
fries are also offered by BesTea. Meanwhile, BesTea assures every
customer that the product has healthy benefits to them. Hence, all
ingredients are all natural and no added unsafe preservatives. BesTea
is a perfect milk tea and coffee shop for customers who crave with
sweet and delightful beverages.

 PLACE
It is crucial for a business to pick a place where target customers are
located. Thus, BesTea chose a location where there are a lot of
potential customers. Aguinaldo St. Poblacion, in Tigaon Camarines Sur
is the perfect place to operate the business since it is near in school,
bus pick-up station, church, public market, and plaza.

 PRICE
The business will be applying the cost-oriented pricing, mark up
pricing. The beverage and food options are priced marginally while

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 offering value to the customer. BesTea assures that customers won’t
regret spending to a commendable product.

Item Price

Milk tea ₱90.00

Fruit tea ₱80.00

Frappe ₱110.00

Coffee ₱80.00

Nachos ₱65.00

Clubhouse sandwich ₱90.00

Fries ₱70.00

 PROMOTION
To promote the business, several flyers and advertisements will be
posted to raise awareness about BesTea. The owners/managers will
also use social media to develop a strong online presence. Social
media will play a big role to increase awareness of BesTea in the
community and to increase customer traffic flow. Along with
encouraging to utilize social media in the business, BesTea will
advertise their own social media. BesTea will use Instagram and
Facebook to notify customers of “Hot Deals”, upcoming events, and
business updates. On the Instagram page, a weekly photo will be
uploaded, submitted by employees or customers. On Facebook page,
customers’ feedbacks will be posted to rate BesTea’s products and
service. This method of marketing will develop a customer base for
BesTea and new customers can potentially see friends they have and
come back with them in the future.

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 PEOPLE
The primary target of BesTea are students, workers, families, and other
potential customers who will pass by the store. Everyone are welcome
to try and purchase the product based on the customers’ preferences
when it comes to beverages like milk tea and coffee.

 PACKAGING
Instead of plastic bags, BesTea will use paper bags when there are
take-away orders. This would be helpful to reduce plastic waste
materials and encourage biodegradable packaging. There will also a
label indicated on each cup and paper bags as presented below.

Aguinaldo St. Poblacion, Tigaon, Camarines Sur

For orders, contact +639123456789

 POSITION

Tea Hub Company will maintain the focused differentiator strategic

position in the food industry. The products are predicated on quality of
inputs, exceptional flavor and taste, unique design and customer
service. The owners/managers assure to maintain a friendly, creative,
and fair working environment that welcomes diversity, hard work, and
new ideas. The company also intends to generate profit to provide a

27
 fair return for our contributors and to expand the business into other
surrounding communities.

Unlike its competitors, BesTea’s milk tea and other products are made
up of natural ingredients that are healthy and safe to consume even by
kids under 6 years old. The sweetness of the products will serve as a
gratification where customers feel comfortable and relax.

FINANCIAL PLAN

Source of Financing
The total amount needed to initially establish BesTea is ₱158,100. This
total amount will be used to remodel the retail store, purchase necessary
equipment, and advertise the opening. Sales are projected from nearby
competitors and extensive research. Sales projections and expenses were
created honestly and conservatively, and profits are still projected to be
positive within the first year of operation. The initial funding of the business
will be divided into 12% with the amount of ₱18,972 for each member of Tea
Hub Company as partnership contributions.

Start-up Requirements

Start-up Expenses

Legal Expenses 15,000

Promotion 4,250

Insurance 15,000

Rent 1,500

Premises structure 7,000

Stationery, others. 3,000

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 TOTAL START-UP EXPENSES 45,750

Start-Up Inventory 25,000

Long-term Assets 77,100
TOTAL ASSETS ₱102,100

Funding Requirement

Start-Up Expenses to Fund ₱45,750

Start-Up Assets to Fund ₱102,100
TOTAL FUNDING REQUIRED ₱238,700

Projected Financial Assumptions

BesTea depends its financial plan on important assumptions. They key

underlying assumptions are:
1. BesTea will operate in a fiscal year of 360 days.
2. Fast-growth economy, with major recession.
3. Sales allowance to be 5% or less of sales
4. Maintain financial record.

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 BesTea
Projected Income Statement
For the period of

Year 1 Year 2 Year 3 Year 4 Year 5

Sales (Milk tea) 135,000 135,000 193,000 193,000 228,000

Sales (Fruit tea) 96,00 96,000 123,000 123,000 178,500
Sales (Frappe) 132,000 132,000 165,000 172,500 195,500
Sales (Coffee) 96,000 96,000 123,000 123,000 178,500
Less: Cost of Production 294,000 294,00 382,000 390,000 489,000
Gross Profit 165,000 165,000 222,000 221,500 291,500
Administrative Expenses
Owner and Employees’ 121,200 121,200 121,200 121,200 121,200
Compensation
Rent Expense 18,000 18,000 18,000 18,000 24,000
Utilities Expense 24,000 24,000 24,000 24,000 24,600
Total Administrative 163,200 163,200 163,200 163,200 169,800
Expenses

Marketing expense
Advertising expense 2,250 - - - 3,000
Total Marketing expense 2,250 - - - 3,000
Total Operating expense 165,450 163,200 163,200 163,200 172,800
Net Income -450.00 28,800 58,800 58,300 118,700

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 BesTea
Projected Balance Sheet
For the period of

ASSETS
Year 1 Year 2 Year 3 Year 4 Year 5
Cash 20,000 40,000 40,000 60,000 60,000
Prepaid Expense 42,000 42,000 42,000 42,000 48,600
Inventory 6,200 6,200 6,700 6,700 8,200
Non-Current Assets
Property, Plant and
Equipment 67,000 67,000 67,000 80,400 80,400
Total Assets 135,200 135,200 151,700 151,700 197,000

LIBILITIES AND OWNER’S

EQUITY
Liabities - - - - -
Owner’s Equity
Abrera, Capital 15,022.22 - - - -
Bitangcor, Capital 15,022.22 - - - -
Cano, Capital 15,022.22 - - - -
Gacer, Capital 15,022.22 - - - -
Mimay, Capital 15,022.22 - - - -
Ponciano, Capital 15,022.22 - - - -
Reyes, Capital 15,022.22 - - - -
Salar, Capital 15,022.22 - - - -
Total Owner’s Equity 135,200 135,200 151,700 151,700 197,000

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 BesTea

Projected Cash Flow Statement

For the period of

OPERATING ACTIVITIES Year 1 Year 2 Year 3 Year 4 Year 5
Sales 459,000 459,000 604,000 611,500 780,500
Payment for employee’s and -121,200 -121,200 -121,200 -121,200 -121,200
managers’ compensation
Payment for marketing -2,250 - - - -3,000
Net cash provided by 165,450 163,200 163,200 163,200 172,800
operating activities
INVESTING ACTIVITIES
Acquisition of Property, Plant
and Equipment (Furniture &
67,000 67,000 67,000 80,400 80,400
Fixtures, Equipment)
Net cash provided by
investing activities
67,000 67,000 67,000 80,400 80,400

FINANCING ACTIVITIES
Owner’s Investment 135,200 135,200 151,700 151,700 197,000
Net cash provided 135,200 135,200 151,700 151,700 197,000
by financing activities
Net Cash Inflow (Outflow) 232,450 230,200 230,200 243,600 253,200
Cash Balance, Beginning 135,200 135,200 151,700 151,700 197,000
Cash Balance, Ending 97,250 95,000 78,500 91,900 56,200

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 Appendix

Estimated Budgeted Sales & Expenses

BUDGETED SALES
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Milk tea
Selling Price (₱) 90.00 90.00 92.00 92.00 95.00
Sales 135,000 135,000 193,000 193,000 228,000

Fruit tea
Selling Price (₱) 80.00 80.00 82.00 82.00 85.00
Sales 96,000 96,000 123,000 123,000 178,500

Frappe
Selling Price (₱) 110.00 110.00 110.00 115.00 115.00
Sales 132,000 132,000 165,000 172,500 195,500

Coffee
Selling Price (₱) 80.00 80.00 82.00 82.00 85.00
Sales 96,000 96,000 123,000 123,000 178,500
Total Sales 459,000 459,000 604,000 611,500 780,500

BUDGETED MNFG. COST

Year 5
Particulars Year 1 Year 2 Year 3 Year 4

Milk tea
80.00
Mnfg. Cost per Unit 75.00 75.00 80.00 80.00
Total Manufacturing
90,000 90,000 120,000 120,000 120,000
Cost

Fruit Tea
70.00
Mnfg. Cost per Unit 65.00 65.00 65.00 70.00
Total Manufacturing
78,000 78,000 97,500 105,000 157,500
Cost

Frappe

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 65.00
Mnfg. Cost per Unit 60.00 60.00 60.00 65.00
Total Manufacturing
72,000 72,000 90,000 90,000 136,500
Cost

Coffee

Mnfg. Cost per Unit 45.00 45.00 50.00 50.00 50.00

Total Manufacturing
54,000 54,000 75,000 75,000 75,000
Cost

Total Manufacturing
294,000 294,000 382,000 390,000 489,000
Cost

BUDGETED PARTNERS ALLOWANCE - administrative

Year 1 Year 2 Year 3 Year 4 Year 5
Particulars
Allowance of General
Manager 1,000 1,000 1,000 1,000 1,000
Allowance of Finance
Managers 2,000 2,000 2,000 3,000 2,000

Total monthly Allowance 4,000 4,000 4,000 4,000 4,000

12
Multiply: No. of months in 1 yr. 12 12 12 12

Total Allowance 46,000 47,000 47,000 47,000 47,000

BUDGETED PARTNERS ALLOWANCE - marketing and selling

Year 5
Particulars Year 1 Year 2 Year 3 Year 4
Allowance of Marketing
Manager 1,000 1,000 1,000 1,000 1,000
Allowance of Production,
Operaion & Supply Managers 3,000 3,000 3,000 3,000 3,000

Total monthly allowance 4,000 4,000 4,000 4,000 4,000

12
Multiply: No. of months in 1 yr. 12 12 12 12

Total Allowance 48,000 48,000 48,000 48,000 48,000

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BUDGETED SALARY FOR THE EMPLOYEES (6 workers)
Year 4 Year 5
Year 1 Year 2 Year 3
350.00 350.00
350.00 350.00 350.00
2,100 2,100
Total monthly salary 2,100 2,100 2,100
12 12
Multiply: No. of months in 1 yr. 12 12 12

Total Salary 25,200 25,200 25,200 25,200 25,200

BUDGETED SUPPLIES EXPENSE - ingredients

Year 1 Year 2 Year 3 Year 4 Year 5
Particulars

Beg. Inventory 25,000 25,000 25,000 25,000 30,000

Add: Supplies Purchases 2,000 2,000 2,000 2,000 3,000

Total Supplies 27,000 27,000 27,000 27,000 33,000

26,400
Less: Supplies used (80%) 21,600 21,600 21,600 21,600
Ingredients Supplies Ending
Inventory 5,400 5,400 5,400 5,400 6,600

BUDGETED STORE SUPPLIES EXPENSE

Year 1 Year 2 Year 3 Year 4 Year 5
Particulars

Beg. Inventory 2,000 2,000 2,000 2,000 2,000

Add: Supplies Purchases 2,000 2,000 3,500 3,500 4,000

Total Supplies 4,000 4,000 6,500 6,500 8,000

6,400
Less: Supplies used (80%) 3,200 3,200 5,300 5,200

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Retail Supplies Ending
Inventory 800 800 1,300 1,300 1,600

BUDGETED POWER CONSUMPTION

Year 1 Year 2 Year 3 Year 4 Year 5
Particulars

Estimated monthly bill 1,000 1,000 1,000 1,000 1,300

Multiply: No. of months 12 12 12 12 12

Total Power Consumption 12,000 12,000 12,000 12,000 15,600

BUDGETED WATER CONSUMPTION

Year 1 Year 2 Year 3 Year 4 Year 5
Particulars

Estimated monthly bill 1,000 1,000 1,000 1,000 1,300

Multiply: No. of months 12 12 12 12 12

Total Water Consumption 12,000 12,000 12,000 12,000 15,600

BUDGETED RENT EXPENSE

Year 1 Year 2 Year 3 Year 4 Year 5
Particulars

Monthly rental for building 1,500 1,500 1,500 1,500 2,000

Multiply: No. of months 12 12 12 12 12

Total Rent Expense 18,000 18,000 18,000 18,000 24,000

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BesTea Menu

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