Business Plan for ABM Students PDF

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A Final Business Plan Presented to Sir Jomel IbuanAccountancy, Business and ManagementLagro High SchoolBy Brenn Puerta Luis Sinfuego Eljhane Onrubia Lovely Pereira Lycksele Rodulfa Shanel Rosales Mhyra Rubia Mary Joy Saludes July 2019‘MOTHER KNOWS BEST IN BAKING’Copyright 2019 Brenn Puerta Luis Sinf...

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‘MOTHER KNOWS BEST IN BAKING’

A Final Business Plan Presented to Sir Jomel Ibuan Accountancy, Business and Management Lagro High School

By Brenn Puerta Luis Sinfuego Eljhane Onrubia Lovely Pereira Lycksele Rodulfa Shanel Rosales Mhyra Rubia Mary Joy Saludes July 2019

Copyright 2019 Brenn Puerta Luis Sinfuego Eljhane Onrubia Lovely Pereira Lycksele Rodulfa Shanel Rosales Mhyra Rubia Mary Joy Saludes ALL RIGHTS RESERVED ii

EXECUTIVE SUMMARY

The Cookie ng Ina is a small stall in Blk 46 Lot 2 Ascension Avenue Barangay Greater Lagro Quezon City, that offers a large variety of fresh homemade cookies. The stall have a positive and placid ambiance that the customers can relax and enjoy the stall's offers. The Cookie ng Ina was established as a manufacturing business, that combines the finest raw ingredients to produce a high quality product. The manufactured product will then be sold to the customers for their satisfaction. Mr. Brenn Lorenz Puerta, the sole owner, invested P25,157.00 for the financial needed to start this business. He was aware that cookies are old time favorite and are consumed by everyone. Almost everyone know and love cookies and it is a good sign for the business. Cookie ng Ina target customers are individuals who totally love cookies. Cookie ng Ina created innovation in the offered variety of products with the ingredients of vegetable, fruit and best sellers cookies recipe that will surely caught the attention of every individuals that passes through the stall. Cookie ng Ina is a small-sized enterprise. It is one marked by a limited number of employees and a limited flow of finances and materials. With the vision of "Producing and selling locally sourced cookies that are so delicious and affordable, that every customer who leaves our store will come back for another piece of cookie", the mission is "To make healthy, unique and high quality cookies and provide them locally at a fair price." and core values of excellence in hospitality, customer focus, empathy and trustworthy that will ensure the satisfaction of the customers. The slogan "Mother's Knows Best For Baking" will also encourage the potential customers to try the products. In producing a high quality cookies, the main raw materials like flour, baking powder, salt, brown sugar, rolled oats, cup oil, soy milk and eggs are carefully inspected, mixed them in a clean container and baked in a standard temperature. It was displayed at the cookie display cases and wire racks inside of a 60 square meters stall. The physical store was located on a commuter routes and close to people who are living in the subdivision and school facilities in order to catch customers going to or from school, while they are out for lunch, or having a break time. The business will operate from Monday to Sunday. Hours of operation will depend entirely on the area. The business owner will surely provide them a place where they can enjoy, feel free from stress and bond with their friends. To ensure that the product is a budget-friendly it only ranges from P10 to P13. This is a good start for the business that targets unique and high quality cookies at a very affordable price. One of the promo deal is a ‘buy 3 get 1 free’. The stall was intended to reach the students that why it is located near Lagro High School, as students will curiously try the new cookie stall.

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The sales forecast that shows a gross profit of P62,300 at month of September, P63,560 for the month of October, P67,310 for the month of November, P61,045 for the month of December and an average of P41 per customer sale shows a positive result for a newly start business. The owner, Brenn Lorenz Puerta himself, who started as a crew at a fast-food chain but because of his determination he was able to earn enough money to start up a business, hired a pastry chef, Lovely Grace Pereira and a cashier, Mhyra Rubia to be part of the management team. The roles and responsibilities were split in the members of the management team. As the balance sheet dictates, Mr. Puerta invested P50,000.00 to start the business and earn P145,570.00 on the first six months. The potential risk that the stall is facing is the supply chain risk, food healthy safety risk, competitors and the uncontrollable natural disasters. To prevent and protect from this risks the stall secured a coverage with business interruptions insurance and to avoid too much dependency on a single suppliers, implementing better sanitary and safety and keep better track of expiration dates of expiration of the product, lowering the price without sacrificing the quality of the product and prepared of any unexpected circumstances that may happen.

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Table of Contents EXECUTIVE SUMMARY ...................................................................................................................... iii TABLE OF CONTENTS ......................................................................................................................... v INTRODUCTORY PAGE ....................................................................................................................... 1 Business Name and Address ....................................................................................................... 1 Name and Address of Business Owner....................................................................................... 1 Nature of the Business ................................................................................................................. 1 Statement of Financing Needed .................................................................................................. 1 ENVIRONMENTAL AND INDUSTRY ANALYSIS ............................................................................ 2 Conditions of General Environment .......................................................................................... 2 Conditions of Specific Environment .......................................................................................... 2 DESCRIPTION OF THE BUSINESS ..................................................................................................... 2 Products/Services ......................................................................................................................... 2 Size of the Business ...................................................................................................................... 2 Mission Statement and Core Values .......................................................................................... 3 Location of the Business and its Major Physical Assets ........................................................... 3 Background of the Business Owner ........................................................................................... 3 PRODUCTION PLAN .............................................................................................................................. 4 Manufacturing Process ................................................................................................................ 4 Physical Plant ................................................................................................................................ 4 Machinery and Equipment .......................................................................................................... 4 Suppliers of Raw Materials .......................................................................................................... 5 Future Capital Equipment Needs ................................................................................................ 5 OPERATIONS PLAN ................................................................................................................................ 5 Description of the Business Operations ....................................................................................... 5 Flow of Orders from Goods and Services ................................................................................... 5 MARKETING PLAN ................................................................................................................................. 6 Pricing ............................................................................................................................................. 6 Distribution ..................................................................................................................................... 6 Promotion ....................................................................................................................................... 6 Sales Forecasts ................................................................................................................................ 7 ORGANIZATIONAL PLAN ...................................................................................................................... 9 Form of Ownership ........................................................................................................................ 9 Principal Shareholders/Partner .................................................................................................... 9 Organizational Chart ..................................................................................................................... 9 Background of the Management Team ........................................................................................ 9 Roles and Responsibilities of the Management Team ................................................................ 9

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FINANCIAL PLAN ................................................................................................................................... 10 Assumptions .................................................................................................................................. 10 Pro Forma Balance Sheet ............................................................................................................ 10 Pro Forma Income Statement ..................................................................................................... 10 Cash Flow Projections ................................................................................................................. 11 Sources and Uses of Funds .......................................................................................................... 12 Break-even Analysis ..................................................................................................................... 12 ASSESSEMENT OF RISKS ..................................................................................................................... 13 Potential Risks – Internal and External ..................................................................................... 13 Strategies For Preventing Or Minimizing Risks ....................................................................... 13 Response To Risks Should They Occur ..................................................................................... 13 TIMETABLES/MILESTONES ............................................................................................................... 14 Formal Registration of the Business .......................................................................................... 14 Completion of Product Design ................................................................................................... 14 Completion of Prototype ............................................................................................................. 14 Hiring of Initial Personnel .......................................................................................................... 14 Reaching Agreements with Suppliers and Distributors ........................................................... 14 Actual Production ........................................................................................................................ 15 Initial Orders, Sales and Deliveries ........................................................................................... 15 APPENDICES Market Research Data ............................................................................................................... 18 Detailed Financial Projections .................................................................................................. 19 Curriculum Vitae of the Management Team ...........................................................................21 Price List From Suppliers .......................................................................................................... 23 Profile of Competitors ................................................................................................................ 23 List of Tables and Exhibits Figure 1. Organizational Chart ..................................................................................................................... 9

Table 1. Statement of Financing Needed ...................................................................................................... 1 Table 2. Sales Forecasts for the Period of September – December 2019 ................................................... 7 Table 3. Sales Forecasts for the Period of January – August 2020 ............................................................ 8 Table 4. Pro Forma Balance Sheet .............................................................................................................. 10 Table 5. Pro Forma Income Statement ........................................................................................................ 10 Table 6. Cost per Cookie Calculation .......................................................................................................... 11 Table 7. Cash Flow Projections .................................................................................................................... 11 Table 8. Sources and Uses of Funding .................................................................................................,....... 12 Table 9. Breakeven Analysis ......................................................................................................................... 12 Table 10. Initial Order from Customer ....................................................................................................... 15 Table 11. Initial Sales from Customer ......................................................................................................... 16 Table 12. Initial Deliveries from Customers ................................................................................................ 17

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