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Executive Summary




As more and more Cebuanos got hooked up with anime, manga, online
games, and got enamoured with the highly popular Japanese culture, the
rise of this what we called cosplayers made an impression in Cebu’s lifestyle
and fashion scenes.


Cosplay is dressing up as an anime or video game character to participate in
contests or simply for fun.


Since the cosplay costumes are rare to find here in Cebu City, the
researchers have come up with the idea of creating a business of this type.
The name of the business is Cosplay Heaven. It is a shop that provides
rental service of cosplay costumes and props for the people whose age
ranges from 13 to 29 years old.


      Pricing is done on combination of food and drink named as snack pack.
Price is set at P30 per snack pack of which majority of the respondents is
willing to pay. Snack-To-Go operates through outsourcing snacks with the
best quality but low price from different suppliers. Foods and drinks are
repacked then delivered to respective university.


      Cosplay Heaven is a partnership business. Since it is a small business,
the partners will directly manage the business. Four employees will be hired
to start the operations. The business establishment used will be rented
within Metro Cebu. The initial capital needed is P246, 310 which will be
financed with the owner’s personal fund. The financial aspect of the business
shows a strong standing and performance.


                                                                            1
Vision – Mission

   Vision
      Snacks-To-Go envisions hassle-free and fun-filled events that are well
provided by delectable and hunger-savouring snacks. We aim to:
      Treat our clients and their guests with respect, that they may have a
      positive experience.
      Treat our staff with respect not only in their work but also on their pay
      scale.
      Be environmentally conscious, that we may be able to serve future
      generations to come.
      Be timely, that we may be lauded by our timeliness.
      Learn from our mistakes, grow and improve as time goes by.


   Mission
      Exhibits, events and gatherings have never been so convenient to
organize as Snacks-To-Go provides affordable and savoury treats. As a
service focused to bring convenience and access to food, it is our passion to
provide food, logistics and satisfaction to event-goers. Our business will offer
fun snacks that’s fresh and at a competitive price. We aim not only to meet
our client’s expectations, but also to exceed them; to let our clients discover
new fun snacks that they might not have tried before; and to promote
environmental awareness during our every excursion. We will respect our

                                                                               2
clients and staffs so that we may in turn be respected. It is or calling to
produce a happy and satisfied client.


Environment/Competitor Analysis

      Based on observation and analysis made, the researchers did not find
out nor identify any of its direct competitors. The researchers only identify
indirect competitors who fill the same needs to the market which is to
provide the snacks on any said event. Based on the data gathered they were
identified as bakeshops, canteen and fast food chains as shown in Table 1
with the corresponding products and prices, based on the respondents
survey answers.
      By performing short interviews to the different indirect competitors,
with regards to their promotion or sales incentives applied to the market,
the result has been tabulated as shown in Table 2.
      This basically informs the researchers that every establishment has
different edges in terms of the quantity, pricing assumed and other
additional cost such as delivery charges.
                                   Table 1
             INDIRECT COMPETITOR’S PRODUCT AND PRICE
  Indirect           Food           Price       Beverages          Price
Competitors
 COLONADE         Banana Bar        P6.00            Zest-O       Zest-O
                                                 (orange)        (orange)
                  Puto Cheese       P7.00
                                                     Zest-O       Zest-O
                    Cheese          P7.50
                                                     (apple)      (apple)
                    Dogger
                                                 Funchum         Funchum
  STEYLER          Chocolate            P12          Zest-O        P8.00

                                                                            3
Cake         P15       Funchum       P9.00

             Sandwich               Mineral Water   P13.00
 JULIE’S       Torta       P5.00      Funchum       P8.00
BAKESHOP
           Pineapple Pie   P5.00     Soft drinks    P10.00

              Monay        P5.00    Mineral Water   P15.00

             King Roll     P5.00

            Chocolate      P6.00
               Cake
                           P6.00
             Cupcake
                           P6.00
           Puto Cheese
                           P9.00
              Choco
                           P10.00
            MoistCake

           Custard Cake
DIMSUM     Siopao/Mini     P12.00
 BREAK          Pao
ORANGE     Brute Burger    P28.00    Soft drinks    P22.00
 BRUTUS
            Chicken &      P33.00
           Egg Sandwich
JOLLIBEE   Yum Burger      P62.70
           with regular
             fries and
            regular soft
              drinks


                                                             4
Table 2
                COMPETITOR’S PROMOTIONAL ACTIVITIES
                                                 Quantity
     Indirect                                                      More than 1000
   Competitors       Less than 200              200 - 1000          but less than
                                                                           2000
    Colonade           No delivery              No delivery          No delivery
     Steyler           No delivery              No delivery          No delivery
 Julies Bakeshop       No delivery              No delivery          No delivery
                     Delivery Charge
 Dimsum Break                               Free delivery           Free delivery
                        (DC): P50
 Orange Brutus         No delivery          Free delivery           Free delivery
                     DC: 10% of the         DC: 10% of the
     Jolibee                                                        Free delivery
                        total price             total price



      These bakeshops, canteen and fast food chains, compete to some
degree of prizes and services they offer.
      Snacks-To-Go     provides       customers     based     on     the     following
characteristics.
      Quality: Snacks-To-Go offers snack with high quality to its food
      product and service.
      Added Services: Organizations in school who offer a wide range of
      activities would prefer to find caterers who can provide for snack.
      Snacks-To-Go is the best caterers because it does not only offer
      affordable snacks but also delivers it at exact time and place of the
      event.
      Price: Snacks-To-Go offers affordable prizes for snacks.



                                                                                     5
All indirect competitors have their stationary places, where they can be
visited, at the most convenient time, by their market, within Cebu City. The
researchers could not specify the exact location of the competitor due to the
rapid growing number of its establishments, wherein they could be found
anyplace.



Target Market

      The   Snack   Provider   Service   will   serve   the   different   student
organizations from five selected universities located within Cebu City. The
selected universities include the University of San Carlos (Main Campus and
Technological Center), University of Cebu (Main campus), University of San
Jose – Recoletos (Main Campus), Southwestern University and University of
the Visayas (Main Campus). The list of student organizations is provided in
the appendix.
      The student organizations hold activities for every semester wherein
they provide snacks for the participants and speakers, as well as the
committees and organizers of the said activities. The activities most
commonly held by student organizations wherein snacks are provided
include acquaintance, general assembly and seminars/symposium. Aside to
the commonly held activities, they also hold extracurricular activities like
tree planting, sports festival, Christmas party and other celebrations of each
college.
      Based on the market feasibility study conducted, 86% of the target
market is willing to avail the service. In the average, there will be 31 orders
per month; each order has a total amount of 218 snacks.


Service Offering


                                                                                6
Events and gatherings are always a good opportunity to meet new
people and catch up with friends. These gatherings are designed to expand
and strengthen our social bonds. What is the better way to do all this than to
have food prepared for these events?
      The best way to a person’s heart is through his stomach. This is what
Snack-To-Go offers to its consumer. The ease of coordinating food to serve
event guests could be a hassle to organization’s committee in charge. If
event organizers would have the opportunity to focus in preparing events,
social gathering could probably be better. Technical and venue preparations
would be the only focus of committees.
      Specialization or focusing on a single industry can make companies
operate efficiently and effectively. As a middleman, the only focus of the
business is to repack and deliver goods from suppliers to organizations that
need them. The business offers sets of foods and drinks preferred by the
target market, as found out in the market feasibility study.




Marketing Plan

      The marketing distribution channel of Snack-To-Go is a two way level,
from the suppliers to the caterer (Snack-To-Go) and to the consumers. The
suppliers are Erwin Hugo, Mega Burger, Muy Bien Panediria, Anadela
Sanchez, Yummy's pizza, Sure & Safe Drinking Water (Ramon Veloso), La
Nueva Super mart. The distribution objective of the team is to produce the



                                                                             7
right amount of snacks at the right time and place, necessary to cater the
needs of every customer.


      Below is the diagram showing the proposed marketing distribution
channel.
                                     Figure 1
                 Snacks-to-Go Marketing Distribution Channel



                                   Anadela Sanchez
             Muy Bien Panediria                      Yummy’s Pizza


    Mega Burger                                               Sure & Safe
                                                             Drinking Water



    Erwin Hugo                                                 La Nueva
                                  Snacks-To-Go                Super Mart




                                     Customers



Management

Form of Ownership
      The business shall be registered as a sole proprietor where the owner
is the one who manage the business. The owner will hire only contractual
employees for the business.
Manpower Requirements
      Snacks-To-Go will have employees with different positions and
designated tasks. Each hired employee will assume two positions.

                                                                              8
Table 3
   QUALIFICATIONS AND RESPONSIBILITIES OF EACH POSITION
      Position         Qualifications         Responsibilities
       Driver          At least High            To deliver the
                       School graduate          order at the right
                       Must have a good         time and place
                       driving skill            To help the
                       Must be of good          delivery boy in
                       moral character          carrying the
                       Must possess a           orders
                       valid professional
                       driver’s license
    Delivery Boy       At least high school     In charge of
                       graduate                 orders and
                       Must have a good         collection of
                       moral and working        payment
                       attitude                 Help in packing
                                                the orders
 Operation Personnel   At least high school     In-charge in order
                       graduate                 packing
                       Must be flexible,        Responsible of
                       hardworking and          checking the
                       trustworthy              orders; if they are
                       Willing to be            complete and
                       trained                  exact
                       Must be hygienic


Compensation


                                                                     9
One of the major considerations that the business should not overlook
is the compensation of their employees. The business should have a better
compensation package to enable its workers to work harder and to help the
business to prosper.
      The schedule of salary to the employee shall be compensated on a
monthly basis; though employees are only required to work when there are
orders. The fixed monthly salary of each employee is Php 1500.
Hiring Requirements
The following are the requirements for the hiring of employees:
   1. Application letter (including Resume and a copy of 2 x 2 colored ID
      picture)
   2. High school Diploma
   3. Barangay and Police clearance; for background and record purposes
Training and Orientation
      The training and orientation of the employees will be given by the
owner itself. It will focus on the packing of the orders, getting and careful
handling   of    customer   feedbacks   and   complaints   with   openness   and
continuing quality of the product and service. Sanitation and safety must
always be the top priority.
      The employees must embody the sense of responsibility while in work
with great pride of serving the customers.
Operation Plan

      Snacks-To-Go will provide snacks to student organizations having
events and gatherings. The business will buy the snacks from its suppliers,
repack it and deliver it to the customers. Snacks-To-Go will operate 6 days a
week, from Monday to Saturday. The service will start from 8:00am to
7:00pm. Orders are accepted through telephone and email. Its peak seasons
are during June to July including December.

                                                                              10
In its operations, the business will need a telephone and a complete
set of computer. The estimated cost of the landline package is Php 999 per
month; and the investment for computer is Php 17,500. The business will
also need a delivery van with an estimated cost of Php140, 000. The cost of
packing is estimated at Php 0.23 per piece.
      The orders should be taken from the customers two (2) weeks before
the event. From the moment of accepting the order, a 60% down payment
should be collected from the customer.
                                   Table 3

                            Cost and Selling Price

         Snacks                     Cost                  Selling Price
    Burger and Juice                18.23                     30.00
  Sandwich and Juice                14.50                     24.00
   Cupcake and Juice                6.50                      11.00
         Siopao                     9.50                      16.00



      The cost mentioned above consists only of the purchase price of the
goods. This amount excludes the salary of the employees, delivery
expenses, and other expenses directly attributable to the service.
      The amount used in the financial aspect is the price of the Burger and
Juice which is at P30. This amount is used since this combination is highly
preferred and the price is the most tolerable to consumers.



Investment/Financials

Initial Capitalization



                                                                          11
The initial capital needed is Php 246,310 which are composed of the
following:
Cash                                   Php 75,309.82

Delivery Truck                          140,000.00

Computer                                24,000.00

Office Table and Chairs                 7,000.00



The amount of cash was computed from the expenses necessary to
jumpstart the business’ operations.
Cost of inventory                      Php 51,663.82

Internet Connection                     999

Business Registration                   664

Promotion                               741

Rental Fees (2 months)                  20,000

Cost of Hiring                          1,242




Financing
       The capital needed will be financed through the personal funds of the
sole proprietor.


Financial Assumptions




                                                                          12
1. Cost of snacks purchased is expected to rise on the average inflation
  rate. The average inflation rate         is base on the inflation rate for the
  past five years taken from National Statistics Office as shown below.


              Percentages of Inflation Rate in the Philippines

2005         2006       2007        2008          2009         TOTAL     AVERAGE

7.6          6.2         2.8         9.3           3.2            29.1     5.82




2. Selling price of each snack pack is also put through to a 5.82 increase
  every year.       There is no available data concerning percentage of
  enrolment growth of each university wherein growth on receipts of
  since the universities did not agree to divulge such information.
  Nonetheless, the universities have


       Year 1         Year 2         Year 3              Year 4          Year 5

        30              32             34                 36              38




3. A conservative assumption of patronage of 50% is being applied for
  the demand of orders for the first year. This assumption will increase
  by 10% every year.



                                                                                  13
A           B           C            D           E

             Ave.      Demand    Conservative     Final      Ave.      Total no.
           no. of         of      Assumption    Ave. no. quantity         of
             order     Service        on        of order    of snack   quantity
             per                  Patronage        per       pack      ordered
          month                                  month        per        per
                                                             order      month
                                                (A*B*C)
                                                                        (D*E)

   Year      250         86%         50%                      218       2834
     1                                             13

   Year       31         86%         60%                      218       3488
     2                                             16

   Year       31         86%         70%                      218       4142
     3                                             19

   Year       31         86%         80%                      218       4578
     4                                             21

   Year       31         86%         90%                      218       5232
     5                                             24



4. Demand for the service will be distributed evenly every year for the
  next five (5) years.
5. Direct labor increases by Php 50.00 every year.
                        Monthly Compensation

    Year 1           Year 2      Year 3       Year 4       Year 5

                                                                               14
1,500         1,550       1,600       1,650        1,700



6. Promotions cost P13 per organization for the pamphlets and incurred
   twice a year. Miscellaneous expense is composed of office supplies
   worth P600 and P664 for business registration. Utilities cost P700 in a
   month for the electricity and monthly rental is P10, 000.
7. Office equipment and delivery truck has a uniform useful life of five (5)
   years and furniture and fixtures has seven (7) years. All of which has a
   zero salvage value and deprecation is computed on a straight-line
   basis.
8. Down payment is made 60% of the price before the event and 40%
   after the event. It is assumed that 40% of revenue is receivable at the
   end of every month.
9. It is assumed that 40% of the cost of food is payable at the end of
   every month.
10.         Selling price of each snack pack and purchase price are assumed
   to be inclusive of Value-Added Tax of 12% starting Year 3 to Year 5.
   Input vat is 12% of Purchases and Gasoline. Percentage Tax from Year
   1 to Year 2 is 3% of Gross Sales.
                     Year 3       Year 4       Year 5

   Output Vat     202,792.32 237,323.52 286,295.04

   Less:
   Input Vat      114,492.47 126,657.99 144,546.24

   Vat
   Payable         88,299.85   110,665.53    144,748.8




                                                                          15
11.      On Year 5, a new computer and delivery truck would be
          purchased and an additional two employees will be hired.
      12.      Promotions, rent, utilities and miscellaneous expense is also
          expected to rise on an average rate.
      13.      Fiscal year starts June 1 and ends on May 31.




                                                                     Figure 2


                                                                  Snack-To-Go
                                                             Projected Balance Sheet
                                                 For the Years Ended May 31 from Year 1 to Y
                                                   Year 1               Year 2
   Cash                                           384,692.56            700,714.41       1,1
   Prepaid Rent                                     20,000.00            20,000.00
   Accounts Receivable                              34,008.00            44,646.40
Total Current Assets                              438,700.56            765,360.81       1,2



   Furniture and Fixtures                            7,000.00              7,000.00
   Accumulated Depreciation -
Furniture & Fixtures                                (1,000.00)           (2,000.00)


                                                     6,000.00              5,000.00
   Office Equipment                                 24,000.00            24,000.00
   Accumulated Depreciation - Office
Equipment                                           (4,800.00)           (9,600.00)
                                                    19,200.00            14,400.00
   Delivery Truck                                 140,000.00            140,000.00
                                                                                 16
Accumulated Depreciation - Delivery
Truck                                    (28,000.00)   (56,000.00)
                                         112,000.00     84,000.00
Total Fixed Assets                       137,200.00    103,400.00
Total Assets                             575,900.56    868,760.81    1,3


Current Liabilities


   Accounts Payable                      244,857.60    301,363.20


Owner's Capital                          246,310.00    331,042.96
Add: Net Income                           84,732.96    236,354.65
Total Owner's Capital                    331,042.96    567,397.61
Total Liabilities and Owner's Capital    575,900.56    868,760.81    1,3




                                                             17
Figure 3


                                           Snacks-To-Go
                                     Projected Income Statement
                         For the Years Ended May 31 from Year 1 to Year 5
                            Year 1          Year 2         Year 3        Year 4         Year 5


Revenue                  1,020,240.00 1,339,392.00 1,689,936.00 1,977,696.00 2,385,792
Less: Cost of Service     755,965.84      905,629.84 1,058,903.92 1,162,683.28 1,277,862


Operating Income          264,274.16      433,762.16      631,032.08    815,012.72 1,107,929
Less: Operating
Expense


      Promotions             1,482.00       1,568.25        1,659.52      1,756.11       1,858
      Depreciation
Expense - Computer           4,800.00       4,800.00        4,800.00      4,800.00      10,818
      Dep. Expense -
Furniture and Fixtures       1,000.00       1,000.00        1,000.00      1,000.00       1,000


      Rent Expense        120,000.00      126,984.00      134,374.47    142,195.06     150,470
      Utilities
Expense                    20,388.00       21,574.58       22,830.22     24,158.94      25,564
      Miscellaneous
Expense                      1,264.00       1,298.92        1,335.87      1,375.00       1,416


                                                                                  18
Total                       148,934.00   157,225.75    166,000.09     175,285.11       191,128


Income before tax           115,340.16   276,536.41    465,031.99     639,727.61       916,800


Less: Tax                    30,607.20    40,181.76      88,299.85    110,665.53       141,748


Net Income                   84,732.96   236,354.65    376,732.14     529,062.08       775,052


                                 Component of Cost of Service


                               Year 1      Year 2        Year 3         Year 4           Year 5


        Cost of Food         612,144.00 753,408.00 894,672.00        988,848.00       1,130,112


        Packaging            7,821.84    7,821.84     11,431.92      12,635.28        14,440.32
        Depreciation -
Delivery Trucks              28,000.00   28,000.00    28,000.00      28,000.00        63,109.80


        Direct Labor Cost    72,000.00   74,400.00    76,800.00      79,200.00        10,200.00


        Gasoline             36,000.00   42,000.00    48,000.00      54,000.00        60,000.00


        Total                755,965.84 905,629.84 1,058,903.92 1,162,683.28 1,277,862




                                                                                 19
Figure 4


                                                                 Snack-To-Go
                                                         Projected Cash Flow Statement
                                              For the Years Ended May 31 from Year 1 to Y


Cash Flows from Operating Activities            Year 1               Year 2              Y
      Net Income                                  84,732.96           236,354.65         3
      Increase in Accounts Receivable           (34,008.00)           (10,638.40)        (
      Depreciation - Delivery Truck               28,000.00            28,000.00
      Depreciation - Office Equipment              4,800.00                 4,800.00
      Depreciation - Furniture and Fixtures        1,000.00                 1,000.00
      Increase in Prepaid Expense               (20,000.00)
      Increase in Accounts Payable              244,857.60             56,505.60
  Net Cash Provided by Operating Activities     309,382.56            316,021.85         4
Cash Flows from Investing Activities
      Delivery Truck                          (140,000.00)
      Office Equipment                          (24,000.00)
      Furniture and Fixtures                      (7,000.00)
  Net Cash Used in Investing Activities       (171,000.00)
Cash Flows from Financing
  Owner's Investment                            246,310.00
Net Increase in Cash                            384,692.56            316,021.85         4
Beginning Cash Balance                                                384,692.56         7


                                                                               20
Ending Cash Balance   384,692.56     700,714.41    1,1




                                   Figure 5


                                              21
Snack-To-Go
                                                                Common Size Statement
                                                  For the Years Ended May 31 from Year 1 to Y
                                                          Year 1                 Year 2
Revenue                                                         100%                      100%
Less: Cost of Service                                         74.10%                 67.61%
Operating Income                                              25.90%                 32.39%
Less: Operating Expense
        Promotions                                              0.15%                 0.12%
        Dep. Expense - Office Equipment                         0.47%                 0.36%
        Dep. Expense - Furnitures and Fixtures                  0.10%                 0.07%
        Rent Expense                                          11.76%                  9.48%
        Utilities Expense                                       2.00%                 1.61%
        Miscellaneous Expense                                   0.12%                 0.10%
Total                                                         14.60%                 11.74%
Income before tax                                             11.31%                 20.65%
Less:Tax                                                        3.00%                 3.00%
Net Income                                                      8.31%                17.65%


             Above is common size statement showing the financial changes and
        trends over the projected years. The cost of sales has a decreasing trend
        from 74.1% to 53.56% and its operating expenses from 14.6% to 8.01%.
        On the other hand, the net income is taking an increasing trend from 8.31%
        to 32.49%.
             Financial Ratios
                                                 Year    Year     Year     Year      Year
        Liquidity Ratios                           1      2        3         4        5
        Current Ratio                            179%   254%      344%     463%     561%
        Working Capital to Total Assets Ratio     34%     53%      67%      77%       77%

                                                                                     22
Cash Debt Coverage Ratio (CDCR)               126%     105%      127%    149%    198%


        The business has the ability to meet currently maturing obligation from
current assets. Its working capital to total assets ratio is increasing per year
which means that it has a relative liquidity of total assets and distribution of
resources employed. It also has the capacity to overcome the deficiency of
debt to equity ratio which does not consider the availability of cash to cover
various level of debt.


                                               Year     Year     Year     Year    Year
Solvency Ratios                                 1         2       3        4       5
Owners’ Equity to Total Assets Ratio or
Equity Ratio (ER)                              57%       65%     73%      79%     83%


        The business also has proportion of assets provided by owners which
reflects financial strength.


                                               Year     Year     Year     Year    Year
LEVERAGE OR COVERAGE RATIOS                     1         2       3        4       5
Debt to Equity Ratio (DTER)                    74%       53%     38%      27%     20%
Equity to Debt Ratio (ETDR)                   135%     188%      264%    372%    497%


        The business' debt to equity ratio is a guarantee to creditors whenever
the business decides to engage itself into borrowing. A low debt to equity
ratio   is   commonly    interpreted   as   having    business   risk   that   would
consequently lead to a lower interest rate charge by financing institutions. It
also has a greater margin of safety to creditors, which increases from year 1
to year 5.


                                                                                  23
Year    Year    Year    Year     Year
PROFITABILITY RATIO                           1        2       3       4       5
Gross Profit Ratio (GPR)                     26%      32%     37%     41%     46%


      The gross profit ratio determines the service profitability excluding the
expenses not incidental to its operations. The business’ gross profit is
increasing which indicates that the business has the capacity to absorb
operating expenses.



Implementation

      The first phase in implementing this type of service is to have the
business registered with competent government authorities. To be a legally
existing business, it should be duly registered. Business taxes and permits
are to be registered.
      While in the registration stage, job hiring announcement should be
done. Qualified individuals are informed of this job vacancy through
pamphlets posted in notable areas.
      The necessary assets that need to be bought also are bought. The
place where the business is to hold office and operations should be
prepared. Delivery vehicles should be purchased and necessary utilities and
office supplies should be at hand. This stage is done two to three weeks.
      The business would enter the second phase as there would be
available assets ready for operations. Information dissemination is key in
this level. Advertising the services of Snacks-to-Go to different school
organizations is rampant at this level. Contact information of key decision
makers of organizations of different universities located within the vicinity of
the company will be collected. The snacks available with their respective


                                                                              24
pricing will be advertised to them. Lists of possible events and their dates
will be noted. This is done within two to three weeks.
      Lastly, as orders are coming in, the company enters its stage of
operations. Orders are addressed by the company. It should be noted that
orders are to be made at least two weeks before the event within the same
time as the down payment is made. As 60% down payment is received by
the company, suppliers will be contacted. Purchases will be paid in cash. As
supplier’s goods arrive at the office, repacking is done by the employees.
This comprises of the company’s regular operations. This takes place from
two to three days.



Conclusion

      Today’s lifestyle demands a lot of time availability and convenience.
Launching events could be a hassle to organizers. Technical and venue
preparations are one of the things that need to be made ready. If organizers
will personally supply food to events, this would mean doubling their efforts
and losing focus.

      Undoubtedly, food has an effect to the attendants. If food is there,
most probably people would flock and enjoy what they came for. Event
organizers also need to prepare for this as to reassure the event would be
filled with people.

      Suppliers that would want increased sales would find creative ways to
find these opportunities. However, if suppliers would directly supply for
events they would incur additional expenses that otherwise they would not
have should they focus only on their main business. If your business is on
food production, then focusing on food production would be the best thing to
do.
                                                                           25
Seeing the need to meet the needs of suppliers who want to increase
their sales; and for consumers who want their needs for food in their events
comes Snacks-to-Go. Snacks-to-Go serves to provide the means where it is
going to be a win-win situation for both consumers and suppliers.

      Taking into consideration of the market, an 86% affirmative response
from is derived. This is a good response from the potential target market.
This shows their willingness to avail of the service and the possible business
opportunity boom.

      Technically, the business is very helpful as it can address both
consumer and supplier in their aims and objectives. Its location is within the
range of local universities of the city. The business itself is not very
complicated as it serves merely as a middleman and only needs to repack
and deliver the goods. Technically the business is really doable.

      The management of the business is spearheaded by its owner. The
entity is a sole proprietorship. This makes the business management simple.
The employees are also not that plenty so managing them would also not be
much of a hassle.

      On the financial aspect, the business shows positive and progressive
response. The income it provides is able to cover necessary expenses of the
business. Furthermore, patronage of consumers could surely fuel for the
company’s growth as a leading snack provider for events and gatherings.

      The social impacts of the business would be for the business to provide
ease and convenience. Suppliers who are part of the chain could have an
increased sales and market share. Jobs are also created in the company’s
existence. The government is benefitted as tax revenues are increased. The
economic repercussions of this would entail growth.

                                                                            26
Snacks-to-Go is a service entity. Focusing on providing food and
convenience to event organizers is a passion. The opportunity of gaining
financially has never been much rewarding as food brings people together.




Appendices

                                Appendix 1

              Name of Universities and Student Organizations

    Name of University              Name of Student Organizations
     SOUTHWESTERN             1. Adventist   Missionary      to   College   and
   UNIVERSITY (SWU)              University Students (AMICUS)
                              2. Bible Readers Society of the Philippines
                                 (BREAD)
                              3. Campus Crusade for Christ (CCC)
                              4. Christian Brotherhood international (CBI)
                              5. Competitive Youth Communicators of the
                                 Liberated Era (CYCLE)
                              6. Filipino Association of Majors in English
                                 (FAME)
                              7. Junior Chemical Society (JCS)
                              8. Junior Finance Executives (J-FINEX)
                              9. Junior Philippine Institute of Accountants
                                 (JPIA)
                              10.   Junior      Philippine        Management
                                 Association (JPMA)
                              11.   Junior   Philippine   Marketing    Society
                                 (JPMS)

                                                                             27
Collegiate Councils/SBO’s
                     1. Scholars’ Society
                     2. Social Work Society (SWS)
                     3. Varsity Scholars’ Society (VSS)
                     4. Veterinary   Medicine      Clinicians’    Society
                        (VMCS)
                     5. Youth for Christ (YFC)
                     6. Young Environmentalists’ Society (YES)


UNIVERSITY OF CEBU   MAIN CAMPUS
       (UC)
                     1. Philippine      Society        of        Customs
                        Administration Students (PSCAS)
                     2. Junior Financial Executives (JFINEX)
                     3. Criminal Justice Society (CJS)
                     4. Philippine   Institute    of   Civil   Engineers
                        (PICE)
                     5. The New Datatron
                     6. Junior Philippine Institute of Accountants
                        (JPIA)
                     7. Junior Philippine Society of Mechanical
                        Engineers (JPSME)
                     8. Society of Naval Architecture and Marine
                        Engineering Students (SONAMES)
                     9. Institute of Integral Electrical Engineers
                        (IIEE)
                     10.   Educators’ Society
                     11.   UC Computer Engineering Club (UC3)


                                                                       28
12.   Young Hoteliers’ Circle
                    13.   Bachelor    of   Arts   –   Student   Body
                      Organization (AB-SBO)
UNIVERSITY OF SAN   MAIN CAMPUS
  CARLOS (USC)
                    Co-curricular Organizations


                    1. Carolinian    Library   Science   Association
                      (CLSA)
                    2. College of Commerce Collegiate Student
                      Council (COMCON)
                    3. College of Education Student Organization
                      (COEDSO)
                    4. Junior Philippine Institute of Accountants
                      (JPIA)
                    5. Organization of Religious Education Majors
                      (OREM)
                    6. Society of Young Business Executives and
                      Entrepreneurs (SYBEE)
                    7. Students for Hospitality Organizations and
                      Tourism Services (SHOTS)


                    Extra-curricular Organizations


                    1. Alliance of Legal Executives (ALEX)
                    2. Alyansa sa mga Bisaya nga ania sa Sugbo
                      – USC (ABS)
                    3. Basta Ako Mindanawon (BAM)


                                                                  29
4. Carolinian Working Scholars Association
  (CAWSA)
5. Confraternity of Our Lady of Lourdes
  (COL)
6. Junior Financial Executives (JFINEX)
7. Movement of United Students Towards a
  Better Environment (MUST BE)
8. Rotaract Club of Cebu Fuente – USC
  Chapter
9. Junior Jaycees Incorporated – USC (JJC)


TECHNOLOGICAL CENTER


Co-curricular Organizations


1. Carolinian Physics Society
2. DOST sa USC
3. Chemical Engineering Council
4. Datalogics Society
5. Science Education Student Organization
6. Collegiate Engineering Council
7. USC-CN Student Body Organization
8. Computer Engineering Council
9. Computer Engineering Batch 2010
10.   Institute of Electronics Communications
  Engineers of the Philippines
11.   Computer Engineering 2011
12.   USC – Mathematics Society


                                             30
13.   Electrical Engineering Council
                         14.   Industrial Engineering Council
                         15.   Civil Engineering Council
                         16.   Mechanical Engineering Council


                         Extra-curricular Organizations


                         1. Catholic Charismatic Carolinians
                         2. Student’s Electronic Society
                         3. USC Mountaineers, INC.
                         4. Chemical Engineering Society
                         5. USC Youth For Christ
                         6. Chemical Engineering Club
                         7. Philippine   Institute   of   Civil   Engineers
                            (PICE)
                         8. Amateur Radio Club
                         9. Institucion Teresiana Youth – USC Chapter
                         10.   Pathways to Higher Education – USC
                         11.   Clun      HIMSUG      (Health      Initiative
                            Movement Among Students Uniting for the
                            Greater Good of Communities)
                         12.   Society of Circuit Researchers
                         13.   Computer Driven Enthusiasts
                         14.   Boholano Carolinian Community


UNIVERSITY OF SAN JOSE   MAIN CAMPUS
– RECOLETOS
                         A. COLLEGE OF EDUCATION


                                                                          31
1. Josenian Educators (JoED)


B. COLLEGE OF ARTS AND SCIENCE


1. Liacom Circle
2. Political Science Society
3. Biological Science Society
4. Societas Philosophical
5. Society of English Communicators
6. Josenian Library and Information Science
   (JLISS)


C. COLLEGE OF ENGINEERING


1. Institute of Electronics and
   Communication Engineers of the Phil.
   (IECEP)
2. Institute of Integrated Electrical Engineers
   (IIEE)
3. Josenian Industrial Technocrats Society
   (JOINTS)
4. Philippine Institute of Civil Engineers
   (PICE)
5. Junior Philippine Society of Mechanical
   Engineers USJ-R Junior Unit (JPSME)
6. Computer Engineering Society (COMES)


D. COLLEGE OF COMMERCE


                                             32
1. Hospitality Management Society (HM
   Society)
2. Junior Business Executive Association
   (JBEA)
3. Junior Finance Executives Circle (JFINEX)
4. Junior Entrepreneur and Marketing Society
   (JEMS)
5. Junior Management Society (JMS)
6. Junior Philippine Institute of Accountants
   (JPIA)
7. Tourism Circle
8. Le Circle Culinaire


E. COLLEGE OF INFORMATION,
COMMUNICATION AND COMPUTER
TECHNOLOGY


1. Association Junior Office Administrators
   (AJOA)
2. Information and Computer Technology
   Organization (ICTO)


F. COLLEGE OF NURSING


1. Nursing Student Council (NSC)


E. COLLEGE OF LAW


                                                33
1. Lex Augustiniana Sororitas
   Lex Cerrus Fraternity


GRADUATE SCHOOL


1. Graduate School Students Organization
  (GSSO)


INTERDEPARTMENTAL ORGANIZATIONS


1. Federation of State and Privately
  Subsidized Scholars (FSPSS)
2. Recoletos Educational Assistance for
  Deserving Students (READS)
3. Reaching Out Society (ROS)
4. Josenians Mathematics Society
  (JOMS)/r2A
5. English Society
6. USJ-R “Jaguar” Junior Jaycess, Inc.
7. Buklod Wika
8. Josenian Junior Diplomats
9. The AngloPhiles Officers
10. Economistas Josenians
11. Society of English Communicators




                                           34

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Business plan

  • 1. Executive Summary As more and more Cebuanos got hooked up with anime, manga, online games, and got enamoured with the highly popular Japanese culture, the rise of this what we called cosplayers made an impression in Cebu’s lifestyle and fashion scenes. Cosplay is dressing up as an anime or video game character to participate in contests or simply for fun. Since the cosplay costumes are rare to find here in Cebu City, the researchers have come up with the idea of creating a business of this type. The name of the business is Cosplay Heaven. It is a shop that provides rental service of cosplay costumes and props for the people whose age ranges from 13 to 29 years old. Pricing is done on combination of food and drink named as snack pack. Price is set at P30 per snack pack of which majority of the respondents is willing to pay. Snack-To-Go operates through outsourcing snacks with the best quality but low price from different suppliers. Foods and drinks are repacked then delivered to respective university. Cosplay Heaven is a partnership business. Since it is a small business, the partners will directly manage the business. Four employees will be hired to start the operations. The business establishment used will be rented within Metro Cebu. The initial capital needed is P246, 310 which will be financed with the owner’s personal fund. The financial aspect of the business shows a strong standing and performance. 1
  • 2. Vision – Mission Vision Snacks-To-Go envisions hassle-free and fun-filled events that are well provided by delectable and hunger-savouring snacks. We aim to: Treat our clients and their guests with respect, that they may have a positive experience. Treat our staff with respect not only in their work but also on their pay scale. Be environmentally conscious, that we may be able to serve future generations to come. Be timely, that we may be lauded by our timeliness. Learn from our mistakes, grow and improve as time goes by. Mission Exhibits, events and gatherings have never been so convenient to organize as Snacks-To-Go provides affordable and savoury treats. As a service focused to bring convenience and access to food, it is our passion to provide food, logistics and satisfaction to event-goers. Our business will offer fun snacks that’s fresh and at a competitive price. We aim not only to meet our client’s expectations, but also to exceed them; to let our clients discover new fun snacks that they might not have tried before; and to promote environmental awareness during our every excursion. We will respect our 2
  • 3. clients and staffs so that we may in turn be respected. It is or calling to produce a happy and satisfied client. Environment/Competitor Analysis Based on observation and analysis made, the researchers did not find out nor identify any of its direct competitors. The researchers only identify indirect competitors who fill the same needs to the market which is to provide the snacks on any said event. Based on the data gathered they were identified as bakeshops, canteen and fast food chains as shown in Table 1 with the corresponding products and prices, based on the respondents survey answers. By performing short interviews to the different indirect competitors, with regards to their promotion or sales incentives applied to the market, the result has been tabulated as shown in Table 2. This basically informs the researchers that every establishment has different edges in terms of the quantity, pricing assumed and other additional cost such as delivery charges. Table 1 INDIRECT COMPETITOR’S PRODUCT AND PRICE Indirect Food Price Beverages Price Competitors COLONADE Banana Bar P6.00 Zest-O Zest-O (orange) (orange) Puto Cheese P7.00 Zest-O Zest-O Cheese P7.50 (apple) (apple) Dogger Funchum Funchum STEYLER Chocolate P12 Zest-O P8.00 3
  • 4. Cake P15 Funchum P9.00 Sandwich Mineral Water P13.00 JULIE’S Torta P5.00 Funchum P8.00 BAKESHOP Pineapple Pie P5.00 Soft drinks P10.00 Monay P5.00 Mineral Water P15.00 King Roll P5.00 Chocolate P6.00 Cake P6.00 Cupcake P6.00 Puto Cheese P9.00 Choco P10.00 MoistCake Custard Cake DIMSUM Siopao/Mini P12.00 BREAK Pao ORANGE Brute Burger P28.00 Soft drinks P22.00 BRUTUS Chicken & P33.00 Egg Sandwich JOLLIBEE Yum Burger P62.70 with regular fries and regular soft drinks 4
  • 5. Table 2 COMPETITOR’S PROMOTIONAL ACTIVITIES Quantity Indirect More than 1000 Competitors Less than 200 200 - 1000 but less than 2000 Colonade No delivery No delivery No delivery Steyler No delivery No delivery No delivery Julies Bakeshop No delivery No delivery No delivery Delivery Charge Dimsum Break Free delivery Free delivery (DC): P50 Orange Brutus No delivery Free delivery Free delivery DC: 10% of the DC: 10% of the Jolibee Free delivery total price total price These bakeshops, canteen and fast food chains, compete to some degree of prizes and services they offer. Snacks-To-Go provides customers based on the following characteristics. Quality: Snacks-To-Go offers snack with high quality to its food product and service. Added Services: Organizations in school who offer a wide range of activities would prefer to find caterers who can provide for snack. Snacks-To-Go is the best caterers because it does not only offer affordable snacks but also delivers it at exact time and place of the event. Price: Snacks-To-Go offers affordable prizes for snacks. 5
  • 6. All indirect competitors have their stationary places, where they can be visited, at the most convenient time, by their market, within Cebu City. The researchers could not specify the exact location of the competitor due to the rapid growing number of its establishments, wherein they could be found anyplace. Target Market The Snack Provider Service will serve the different student organizations from five selected universities located within Cebu City. The selected universities include the University of San Carlos (Main Campus and Technological Center), University of Cebu (Main campus), University of San Jose – Recoletos (Main Campus), Southwestern University and University of the Visayas (Main Campus). The list of student organizations is provided in the appendix. The student organizations hold activities for every semester wherein they provide snacks for the participants and speakers, as well as the committees and organizers of the said activities. The activities most commonly held by student organizations wherein snacks are provided include acquaintance, general assembly and seminars/symposium. Aside to the commonly held activities, they also hold extracurricular activities like tree planting, sports festival, Christmas party and other celebrations of each college. Based on the market feasibility study conducted, 86% of the target market is willing to avail the service. In the average, there will be 31 orders per month; each order has a total amount of 218 snacks. Service Offering 6
  • 7. Events and gatherings are always a good opportunity to meet new people and catch up with friends. These gatherings are designed to expand and strengthen our social bonds. What is the better way to do all this than to have food prepared for these events? The best way to a person’s heart is through his stomach. This is what Snack-To-Go offers to its consumer. The ease of coordinating food to serve event guests could be a hassle to organization’s committee in charge. If event organizers would have the opportunity to focus in preparing events, social gathering could probably be better. Technical and venue preparations would be the only focus of committees. Specialization or focusing on a single industry can make companies operate efficiently and effectively. As a middleman, the only focus of the business is to repack and deliver goods from suppliers to organizations that need them. The business offers sets of foods and drinks preferred by the target market, as found out in the market feasibility study. Marketing Plan The marketing distribution channel of Snack-To-Go is a two way level, from the suppliers to the caterer (Snack-To-Go) and to the consumers. The suppliers are Erwin Hugo, Mega Burger, Muy Bien Panediria, Anadela Sanchez, Yummy's pizza, Sure & Safe Drinking Water (Ramon Veloso), La Nueva Super mart. The distribution objective of the team is to produce the 7
  • 8. right amount of snacks at the right time and place, necessary to cater the needs of every customer. Below is the diagram showing the proposed marketing distribution channel. Figure 1 Snacks-to-Go Marketing Distribution Channel Anadela Sanchez Muy Bien Panediria Yummy’s Pizza Mega Burger Sure & Safe Drinking Water Erwin Hugo La Nueva Snacks-To-Go Super Mart Customers Management Form of Ownership The business shall be registered as a sole proprietor where the owner is the one who manage the business. The owner will hire only contractual employees for the business. Manpower Requirements Snacks-To-Go will have employees with different positions and designated tasks. Each hired employee will assume two positions. 8
  • 9. Table 3 QUALIFICATIONS AND RESPONSIBILITIES OF EACH POSITION Position Qualifications Responsibilities Driver At least High To deliver the School graduate order at the right Must have a good time and place driving skill To help the Must be of good delivery boy in moral character carrying the Must possess a orders valid professional driver’s license Delivery Boy At least high school In charge of graduate orders and Must have a good collection of moral and working payment attitude Help in packing the orders Operation Personnel At least high school In-charge in order graduate packing Must be flexible, Responsible of hardworking and checking the trustworthy orders; if they are Willing to be complete and trained exact Must be hygienic Compensation 9
  • 10. One of the major considerations that the business should not overlook is the compensation of their employees. The business should have a better compensation package to enable its workers to work harder and to help the business to prosper. The schedule of salary to the employee shall be compensated on a monthly basis; though employees are only required to work when there are orders. The fixed monthly salary of each employee is Php 1500. Hiring Requirements The following are the requirements for the hiring of employees: 1. Application letter (including Resume and a copy of 2 x 2 colored ID picture) 2. High school Diploma 3. Barangay and Police clearance; for background and record purposes Training and Orientation The training and orientation of the employees will be given by the owner itself. It will focus on the packing of the orders, getting and careful handling of customer feedbacks and complaints with openness and continuing quality of the product and service. Sanitation and safety must always be the top priority. The employees must embody the sense of responsibility while in work with great pride of serving the customers. Operation Plan Snacks-To-Go will provide snacks to student organizations having events and gatherings. The business will buy the snacks from its suppliers, repack it and deliver it to the customers. Snacks-To-Go will operate 6 days a week, from Monday to Saturday. The service will start from 8:00am to 7:00pm. Orders are accepted through telephone and email. Its peak seasons are during June to July including December. 10
  • 11. In its operations, the business will need a telephone and a complete set of computer. The estimated cost of the landline package is Php 999 per month; and the investment for computer is Php 17,500. The business will also need a delivery van with an estimated cost of Php140, 000. The cost of packing is estimated at Php 0.23 per piece. The orders should be taken from the customers two (2) weeks before the event. From the moment of accepting the order, a 60% down payment should be collected from the customer. Table 3 Cost and Selling Price Snacks Cost Selling Price Burger and Juice 18.23 30.00 Sandwich and Juice 14.50 24.00 Cupcake and Juice 6.50 11.00 Siopao 9.50 16.00 The cost mentioned above consists only of the purchase price of the goods. This amount excludes the salary of the employees, delivery expenses, and other expenses directly attributable to the service. The amount used in the financial aspect is the price of the Burger and Juice which is at P30. This amount is used since this combination is highly preferred and the price is the most tolerable to consumers. Investment/Financials Initial Capitalization 11
  • 12. The initial capital needed is Php 246,310 which are composed of the following: Cash Php 75,309.82 Delivery Truck 140,000.00 Computer 24,000.00 Office Table and Chairs 7,000.00 The amount of cash was computed from the expenses necessary to jumpstart the business’ operations. Cost of inventory Php 51,663.82 Internet Connection 999 Business Registration 664 Promotion 741 Rental Fees (2 months) 20,000 Cost of Hiring 1,242 Financing The capital needed will be financed through the personal funds of the sole proprietor. Financial Assumptions 12
  • 13. 1. Cost of snacks purchased is expected to rise on the average inflation rate. The average inflation rate is base on the inflation rate for the past five years taken from National Statistics Office as shown below. Percentages of Inflation Rate in the Philippines 2005 2006 2007 2008 2009 TOTAL AVERAGE 7.6 6.2 2.8 9.3 3.2 29.1 5.82 2. Selling price of each snack pack is also put through to a 5.82 increase every year. There is no available data concerning percentage of enrolment growth of each university wherein growth on receipts of since the universities did not agree to divulge such information. Nonetheless, the universities have Year 1 Year 2 Year 3 Year 4 Year 5 30 32 34 36 38 3. A conservative assumption of patronage of 50% is being applied for the demand of orders for the first year. This assumption will increase by 10% every year. 13
  • 14. A B C D E Ave. Demand Conservative Final Ave. Total no. no. of of Assumption Ave. no. quantity of order Service on of order of snack quantity per Patronage per pack ordered month month per per order month (A*B*C) (D*E) Year 250 86% 50% 218 2834 1 13 Year 31 86% 60% 218 3488 2 16 Year 31 86% 70% 218 4142 3 19 Year 31 86% 80% 218 4578 4 21 Year 31 86% 90% 218 5232 5 24 4. Demand for the service will be distributed evenly every year for the next five (5) years. 5. Direct labor increases by Php 50.00 every year. Monthly Compensation Year 1 Year 2 Year 3 Year 4 Year 5 14
  • 15. 1,500 1,550 1,600 1,650 1,700 6. Promotions cost P13 per organization for the pamphlets and incurred twice a year. Miscellaneous expense is composed of office supplies worth P600 and P664 for business registration. Utilities cost P700 in a month for the electricity and monthly rental is P10, 000. 7. Office equipment and delivery truck has a uniform useful life of five (5) years and furniture and fixtures has seven (7) years. All of which has a zero salvage value and deprecation is computed on a straight-line basis. 8. Down payment is made 60% of the price before the event and 40% after the event. It is assumed that 40% of revenue is receivable at the end of every month. 9. It is assumed that 40% of the cost of food is payable at the end of every month. 10. Selling price of each snack pack and purchase price are assumed to be inclusive of Value-Added Tax of 12% starting Year 3 to Year 5. Input vat is 12% of Purchases and Gasoline. Percentage Tax from Year 1 to Year 2 is 3% of Gross Sales. Year 3 Year 4 Year 5 Output Vat 202,792.32 237,323.52 286,295.04 Less: Input Vat 114,492.47 126,657.99 144,546.24 Vat Payable 88,299.85 110,665.53 144,748.8 15
  • 16. 11. On Year 5, a new computer and delivery truck would be purchased and an additional two employees will be hired. 12. Promotions, rent, utilities and miscellaneous expense is also expected to rise on an average rate. 13. Fiscal year starts June 1 and ends on May 31. Figure 2 Snack-To-Go Projected Balance Sheet For the Years Ended May 31 from Year 1 to Y Year 1 Year 2 Cash 384,692.56 700,714.41 1,1 Prepaid Rent 20,000.00 20,000.00 Accounts Receivable 34,008.00 44,646.40 Total Current Assets 438,700.56 765,360.81 1,2 Furniture and Fixtures 7,000.00 7,000.00 Accumulated Depreciation - Furniture & Fixtures (1,000.00) (2,000.00) 6,000.00 5,000.00 Office Equipment 24,000.00 24,000.00 Accumulated Depreciation - Office Equipment (4,800.00) (9,600.00) 19,200.00 14,400.00 Delivery Truck 140,000.00 140,000.00 16
  • 17. Accumulated Depreciation - Delivery Truck (28,000.00) (56,000.00) 112,000.00 84,000.00 Total Fixed Assets 137,200.00 103,400.00 Total Assets 575,900.56 868,760.81 1,3 Current Liabilities Accounts Payable 244,857.60 301,363.20 Owner's Capital 246,310.00 331,042.96 Add: Net Income 84,732.96 236,354.65 Total Owner's Capital 331,042.96 567,397.61 Total Liabilities and Owner's Capital 575,900.56 868,760.81 1,3 17
  • 18. Figure 3 Snacks-To-Go Projected Income Statement For the Years Ended May 31 from Year 1 to Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue 1,020,240.00 1,339,392.00 1,689,936.00 1,977,696.00 2,385,792 Less: Cost of Service 755,965.84 905,629.84 1,058,903.92 1,162,683.28 1,277,862 Operating Income 264,274.16 433,762.16 631,032.08 815,012.72 1,107,929 Less: Operating Expense Promotions 1,482.00 1,568.25 1,659.52 1,756.11 1,858 Depreciation Expense - Computer 4,800.00 4,800.00 4,800.00 4,800.00 10,818 Dep. Expense - Furniture and Fixtures 1,000.00 1,000.00 1,000.00 1,000.00 1,000 Rent Expense 120,000.00 126,984.00 134,374.47 142,195.06 150,470 Utilities Expense 20,388.00 21,574.58 22,830.22 24,158.94 25,564 Miscellaneous Expense 1,264.00 1,298.92 1,335.87 1,375.00 1,416 18
  • 19. Total 148,934.00 157,225.75 166,000.09 175,285.11 191,128 Income before tax 115,340.16 276,536.41 465,031.99 639,727.61 916,800 Less: Tax 30,607.20 40,181.76 88,299.85 110,665.53 141,748 Net Income 84,732.96 236,354.65 376,732.14 529,062.08 775,052 Component of Cost of Service Year 1 Year 2 Year 3 Year 4 Year 5 Cost of Food 612,144.00 753,408.00 894,672.00 988,848.00 1,130,112 Packaging 7,821.84 7,821.84 11,431.92 12,635.28 14,440.32 Depreciation - Delivery Trucks 28,000.00 28,000.00 28,000.00 28,000.00 63,109.80 Direct Labor Cost 72,000.00 74,400.00 76,800.00 79,200.00 10,200.00 Gasoline 36,000.00 42,000.00 48,000.00 54,000.00 60,000.00 Total 755,965.84 905,629.84 1,058,903.92 1,162,683.28 1,277,862 19
  • 20. Figure 4 Snack-To-Go Projected Cash Flow Statement For the Years Ended May 31 from Year 1 to Y Cash Flows from Operating Activities Year 1 Year 2 Y Net Income 84,732.96 236,354.65 3 Increase in Accounts Receivable (34,008.00) (10,638.40) ( Depreciation - Delivery Truck 28,000.00 28,000.00 Depreciation - Office Equipment 4,800.00 4,800.00 Depreciation - Furniture and Fixtures 1,000.00 1,000.00 Increase in Prepaid Expense (20,000.00) Increase in Accounts Payable 244,857.60 56,505.60 Net Cash Provided by Operating Activities 309,382.56 316,021.85 4 Cash Flows from Investing Activities Delivery Truck (140,000.00) Office Equipment (24,000.00) Furniture and Fixtures (7,000.00) Net Cash Used in Investing Activities (171,000.00) Cash Flows from Financing Owner's Investment 246,310.00 Net Increase in Cash 384,692.56 316,021.85 4 Beginning Cash Balance 384,692.56 7 20
  • 21. Ending Cash Balance 384,692.56 700,714.41 1,1 Figure 5 21
  • 22. Snack-To-Go Common Size Statement For the Years Ended May 31 from Year 1 to Y Year 1 Year 2 Revenue 100% 100% Less: Cost of Service 74.10% 67.61% Operating Income 25.90% 32.39% Less: Operating Expense Promotions 0.15% 0.12% Dep. Expense - Office Equipment 0.47% 0.36% Dep. Expense - Furnitures and Fixtures 0.10% 0.07% Rent Expense 11.76% 9.48% Utilities Expense 2.00% 1.61% Miscellaneous Expense 0.12% 0.10% Total 14.60% 11.74% Income before tax 11.31% 20.65% Less:Tax 3.00% 3.00% Net Income 8.31% 17.65% Above is common size statement showing the financial changes and trends over the projected years. The cost of sales has a decreasing trend from 74.1% to 53.56% and its operating expenses from 14.6% to 8.01%. On the other hand, the net income is taking an increasing trend from 8.31% to 32.49%. Financial Ratios Year Year Year Year Year Liquidity Ratios 1 2 3 4 5 Current Ratio 179% 254% 344% 463% 561% Working Capital to Total Assets Ratio 34% 53% 67% 77% 77% 22
  • 23. Cash Debt Coverage Ratio (CDCR) 126% 105% 127% 149% 198% The business has the ability to meet currently maturing obligation from current assets. Its working capital to total assets ratio is increasing per year which means that it has a relative liquidity of total assets and distribution of resources employed. It also has the capacity to overcome the deficiency of debt to equity ratio which does not consider the availability of cash to cover various level of debt. Year Year Year Year Year Solvency Ratios 1 2 3 4 5 Owners’ Equity to Total Assets Ratio or Equity Ratio (ER) 57% 65% 73% 79% 83% The business also has proportion of assets provided by owners which reflects financial strength. Year Year Year Year Year LEVERAGE OR COVERAGE RATIOS 1 2 3 4 5 Debt to Equity Ratio (DTER) 74% 53% 38% 27% 20% Equity to Debt Ratio (ETDR) 135% 188% 264% 372% 497% The business' debt to equity ratio is a guarantee to creditors whenever the business decides to engage itself into borrowing. A low debt to equity ratio is commonly interpreted as having business risk that would consequently lead to a lower interest rate charge by financing institutions. It also has a greater margin of safety to creditors, which increases from year 1 to year 5. 23
  • 24. Year Year Year Year Year PROFITABILITY RATIO 1 2 3 4 5 Gross Profit Ratio (GPR) 26% 32% 37% 41% 46% The gross profit ratio determines the service profitability excluding the expenses not incidental to its operations. The business’ gross profit is increasing which indicates that the business has the capacity to absorb operating expenses. Implementation The first phase in implementing this type of service is to have the business registered with competent government authorities. To be a legally existing business, it should be duly registered. Business taxes and permits are to be registered. While in the registration stage, job hiring announcement should be done. Qualified individuals are informed of this job vacancy through pamphlets posted in notable areas. The necessary assets that need to be bought also are bought. The place where the business is to hold office and operations should be prepared. Delivery vehicles should be purchased and necessary utilities and office supplies should be at hand. This stage is done two to three weeks. The business would enter the second phase as there would be available assets ready for operations. Information dissemination is key in this level. Advertising the services of Snacks-to-Go to different school organizations is rampant at this level. Contact information of key decision makers of organizations of different universities located within the vicinity of the company will be collected. The snacks available with their respective 24
  • 25. pricing will be advertised to them. Lists of possible events and their dates will be noted. This is done within two to three weeks. Lastly, as orders are coming in, the company enters its stage of operations. Orders are addressed by the company. It should be noted that orders are to be made at least two weeks before the event within the same time as the down payment is made. As 60% down payment is received by the company, suppliers will be contacted. Purchases will be paid in cash. As supplier’s goods arrive at the office, repacking is done by the employees. This comprises of the company’s regular operations. This takes place from two to three days. Conclusion Today’s lifestyle demands a lot of time availability and convenience. Launching events could be a hassle to organizers. Technical and venue preparations are one of the things that need to be made ready. If organizers will personally supply food to events, this would mean doubling their efforts and losing focus. Undoubtedly, food has an effect to the attendants. If food is there, most probably people would flock and enjoy what they came for. Event organizers also need to prepare for this as to reassure the event would be filled with people. Suppliers that would want increased sales would find creative ways to find these opportunities. However, if suppliers would directly supply for events they would incur additional expenses that otherwise they would not have should they focus only on their main business. If your business is on food production, then focusing on food production would be the best thing to do. 25
  • 26. Seeing the need to meet the needs of suppliers who want to increase their sales; and for consumers who want their needs for food in their events comes Snacks-to-Go. Snacks-to-Go serves to provide the means where it is going to be a win-win situation for both consumers and suppliers. Taking into consideration of the market, an 86% affirmative response from is derived. This is a good response from the potential target market. This shows their willingness to avail of the service and the possible business opportunity boom. Technically, the business is very helpful as it can address both consumer and supplier in their aims and objectives. Its location is within the range of local universities of the city. The business itself is not very complicated as it serves merely as a middleman and only needs to repack and deliver the goods. Technically the business is really doable. The management of the business is spearheaded by its owner. The entity is a sole proprietorship. This makes the business management simple. The employees are also not that plenty so managing them would also not be much of a hassle. On the financial aspect, the business shows positive and progressive response. The income it provides is able to cover necessary expenses of the business. Furthermore, patronage of consumers could surely fuel for the company’s growth as a leading snack provider for events and gatherings. The social impacts of the business would be for the business to provide ease and convenience. Suppliers who are part of the chain could have an increased sales and market share. Jobs are also created in the company’s existence. The government is benefitted as tax revenues are increased. The economic repercussions of this would entail growth. 26
  • 27. Snacks-to-Go is a service entity. Focusing on providing food and convenience to event organizers is a passion. The opportunity of gaining financially has never been much rewarding as food brings people together. Appendices Appendix 1 Name of Universities and Student Organizations Name of University Name of Student Organizations SOUTHWESTERN 1. Adventist Missionary to College and UNIVERSITY (SWU) University Students (AMICUS) 2. Bible Readers Society of the Philippines (BREAD) 3. Campus Crusade for Christ (CCC) 4. Christian Brotherhood international (CBI) 5. Competitive Youth Communicators of the Liberated Era (CYCLE) 6. Filipino Association of Majors in English (FAME) 7. Junior Chemical Society (JCS) 8. Junior Finance Executives (J-FINEX) 9. Junior Philippine Institute of Accountants (JPIA) 10. Junior Philippine Management Association (JPMA) 11. Junior Philippine Marketing Society (JPMS) 27
  • 28. Collegiate Councils/SBO’s 1. Scholars’ Society 2. Social Work Society (SWS) 3. Varsity Scholars’ Society (VSS) 4. Veterinary Medicine Clinicians’ Society (VMCS) 5. Youth for Christ (YFC) 6. Young Environmentalists’ Society (YES) UNIVERSITY OF CEBU MAIN CAMPUS (UC) 1. Philippine Society of Customs Administration Students (PSCAS) 2. Junior Financial Executives (JFINEX) 3. Criminal Justice Society (CJS) 4. Philippine Institute of Civil Engineers (PICE) 5. The New Datatron 6. Junior Philippine Institute of Accountants (JPIA) 7. Junior Philippine Society of Mechanical Engineers (JPSME) 8. Society of Naval Architecture and Marine Engineering Students (SONAMES) 9. Institute of Integral Electrical Engineers (IIEE) 10. Educators’ Society 11. UC Computer Engineering Club (UC3) 28
  • 29. 12. Young Hoteliers’ Circle 13. Bachelor of Arts – Student Body Organization (AB-SBO) UNIVERSITY OF SAN MAIN CAMPUS CARLOS (USC) Co-curricular Organizations 1. Carolinian Library Science Association (CLSA) 2. College of Commerce Collegiate Student Council (COMCON) 3. College of Education Student Organization (COEDSO) 4. Junior Philippine Institute of Accountants (JPIA) 5. Organization of Religious Education Majors (OREM) 6. Society of Young Business Executives and Entrepreneurs (SYBEE) 7. Students for Hospitality Organizations and Tourism Services (SHOTS) Extra-curricular Organizations 1. Alliance of Legal Executives (ALEX) 2. Alyansa sa mga Bisaya nga ania sa Sugbo – USC (ABS) 3. Basta Ako Mindanawon (BAM) 29
  • 30. 4. Carolinian Working Scholars Association (CAWSA) 5. Confraternity of Our Lady of Lourdes (COL) 6. Junior Financial Executives (JFINEX) 7. Movement of United Students Towards a Better Environment (MUST BE) 8. Rotaract Club of Cebu Fuente – USC Chapter 9. Junior Jaycees Incorporated – USC (JJC) TECHNOLOGICAL CENTER Co-curricular Organizations 1. Carolinian Physics Society 2. DOST sa USC 3. Chemical Engineering Council 4. Datalogics Society 5. Science Education Student Organization 6. Collegiate Engineering Council 7. USC-CN Student Body Organization 8. Computer Engineering Council 9. Computer Engineering Batch 2010 10. Institute of Electronics Communications Engineers of the Philippines 11. Computer Engineering 2011 12. USC – Mathematics Society 30
  • 31. 13. Electrical Engineering Council 14. Industrial Engineering Council 15. Civil Engineering Council 16. Mechanical Engineering Council Extra-curricular Organizations 1. Catholic Charismatic Carolinians 2. Student’s Electronic Society 3. USC Mountaineers, INC. 4. Chemical Engineering Society 5. USC Youth For Christ 6. Chemical Engineering Club 7. Philippine Institute of Civil Engineers (PICE) 8. Amateur Radio Club 9. Institucion Teresiana Youth – USC Chapter 10. Pathways to Higher Education – USC 11. Clun HIMSUG (Health Initiative Movement Among Students Uniting for the Greater Good of Communities) 12. Society of Circuit Researchers 13. Computer Driven Enthusiasts 14. Boholano Carolinian Community UNIVERSITY OF SAN JOSE MAIN CAMPUS – RECOLETOS A. COLLEGE OF EDUCATION 31
  • 32. 1. Josenian Educators (JoED) B. COLLEGE OF ARTS AND SCIENCE 1. Liacom Circle 2. Political Science Society 3. Biological Science Society 4. Societas Philosophical 5. Society of English Communicators 6. Josenian Library and Information Science (JLISS) C. COLLEGE OF ENGINEERING 1. Institute of Electronics and Communication Engineers of the Phil. (IECEP) 2. Institute of Integrated Electrical Engineers (IIEE) 3. Josenian Industrial Technocrats Society (JOINTS) 4. Philippine Institute of Civil Engineers (PICE) 5. Junior Philippine Society of Mechanical Engineers USJ-R Junior Unit (JPSME) 6. Computer Engineering Society (COMES) D. COLLEGE OF COMMERCE 32
  • 33. 1. Hospitality Management Society (HM Society) 2. Junior Business Executive Association (JBEA) 3. Junior Finance Executives Circle (JFINEX) 4. Junior Entrepreneur and Marketing Society (JEMS) 5. Junior Management Society (JMS) 6. Junior Philippine Institute of Accountants (JPIA) 7. Tourism Circle 8. Le Circle Culinaire E. COLLEGE OF INFORMATION, COMMUNICATION AND COMPUTER TECHNOLOGY 1. Association Junior Office Administrators (AJOA) 2. Information and Computer Technology Organization (ICTO) F. COLLEGE OF NURSING 1. Nursing Student Council (NSC) E. COLLEGE OF LAW 33
  • 34. 1. Lex Augustiniana Sororitas  Lex Cerrus Fraternity GRADUATE SCHOOL 1. Graduate School Students Organization (GSSO) INTERDEPARTMENTAL ORGANIZATIONS 1. Federation of State and Privately Subsidized Scholars (FSPSS) 2. Recoletos Educational Assistance for Deserving Students (READS) 3. Reaching Out Society (ROS) 4. Josenians Mathematics Society (JOMS)/r2A 5. English Society 6. USJ-R “Jaguar” Junior Jaycess, Inc. 7. Buklod Wika 8. Josenian Junior Diplomats 9. The AngloPhiles Officers 10. Economistas Josenians 11. Society of English Communicators 34