Feasib Outline
-
Upload
robert-diaz -
Category
Documents
-
view
195 -
download
7
description
Transcript of Feasib Outline
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXX
A Business Feasibility Study Proposal Presented to the
Faculty of the Department of Finance
College of Business Administration
University of Makati
West Rembo, Makati City, Philippines
As Final Requirement in Feasibility Study Subject and
In Partial Fulfillment of the Requirements for the Degree
Bachelor of Science in Finance
By
Aljelo B. Basada
Robert B. Diaz
Justine Kimberly R. Gacura
Pamela Jane S. Manzo
Marissa E. Marcelo
Jhovy S. Mateo
Marvin V. Salvoro
Micah C. Taguibao
Carlo M. Villanueva
UNIVERS ITY OF MAKAT I
August 2013
INTRODUCTION
Background
Food is a basic necessity, and not all people are cooking for
themselves. With this, they tend to purchase outside in order for them to eat.
Some of the people eat in restaurants, fast food chains, eateries, while some
are on the streets. According to Food and Agriculture Organization, street food
is defined as a ready-to-eat foods and beverages prepared and sold by vendors
or peddlers in the streets or in other similar public places.
According to F.G. Winarno of Food Technology Development Centre, a
variety of street foods began around the world, but has variations within the
regions and cultures such as in Greece, China, and America etc. The world is
becoming rapidly more urban. According to a study of 2007 from Food and
Agriculture Organization, 2.5 billion people eat street foods every day. Thus,
estimates that vendors make up to 6-25% of the entire labor force in developing
countries such as Philippines. Street food vending continues to expand as a
source of affordable food and beneficial economic activity in the Philippines.
Today, people are fond of trying new dishes regardless of knowing its
safety and its content. Being so adventurous leads them to be unconscious with
the food they eat and the place where they buy it. However, health issues
concerning about street foods do not affect how the consumers react. They
College of Business Administration Department of Finance
1
UNIVERS ITY OF MAKAT I
continue to patronize and demand more of these products considering its
hazardous effect, because of its unsafe practices such as insufficient hand
washing, improper cleaning of cooking utensils and inadequate food storage. In
accordance to this matter, the proponents come up with the idea to change the
perception of the people about street foods.
The Business Idea
Considering street food’s popularity and demand, the proponents
proposed ‘Streetwise’. Streetwise is a self-service eatery that offers a variety
of food that you’ve always seen in the street. It assures that even an ordinary
food is safe and clean yet affordable and tasty. This is to change the
perception of the customers about street foods being hazardous to their
health.
Customers will experience street foods like they never did before. It’s
like eating in a fast food chain, because aside from safe and clean, this
business is a relaxing store. They can eat freely without competing to eat in
the crowd. The business will comply with all the necessary rules and
regulations that are needed.
College of Business Administration Department of Finance
2
UNIVERS ITY OF MAKAT I
Chapter I
THE BUSINESS CONCEPT
A. Industry and Market Environment
1. General Business Conditions
The industry which deals with preparing food items or products refers
to food service industry. This industry includes Bistro, Braserrie, Coffee shop,
First Class Restaurant, Restaurants such as Ethnic, Themed, International
Destination, Vegetarian, Cafeteria, Fast food outlets, Wine Bars, Public
Houses, and Street foods stalls. They differs on what type of food service
industry they are going to used, how they served their customers in terms of
speed and accuracy such as fast food chains, in terms of quick selling. But
most people likely to eat in the street where stalls are placed that offer easily
to prepare and ready to eat products, yet affordable and inexpensive.
Street foods are very heterogeneous in food category, such as meals,
drinks and snacks. It also shows great variance in terms of ingredients,
methods of vending, processing, and eating. According to Food and
Agriculture Organization, Street foods are defined as ready-to-eat foods and
beverages prepared and sold by vendors or peddlers especially in the streets
or similar other public places. The essential characteristic of this street food in
this definition is their vending location that is “on the street”. According to
College of Business Administration Department of Finance
3
UNIVERS ITY OF MAKAT I
Equity Policy Center (EPOC), the qualifications of the street foods sold in the
street are sold from “Pushcarts, baskets or balance poles, stalls or shops
having fewer than four permanent walls. This differentiates street vendors
from formal food service industry, such as cafeteria, takeaways, and
restaurants. Another distinguishing is the street foods production; it is either
processed centrally by a food sector industry or processed in the street by a
small scale business processor or the vendor her/himself.
Street food business is commonly operates by a family or one person
without licensing, that become a part of an informal sector. It is an informal
sector because of its characteristics: (a) ease of entry, (b) dependence on
local resources and (c) family or household ownership business. Since it is a
part of informal sector, the significance of street food vending has often been
ignored, because it symbolizes lack of economic development that would and
should disappear in modernization. However, the awareness of limited
employment generated by the formal sector and have difficulty in obtaining
jobs, planners begins to acknowledge the importance of informal sector since
it is rapidly growing. As the world is becoming more urban, the demand of
street food vending is increasing that vendors are attracted to this occupation
because of the possibility of earning relatively high incomes. Aside from that,
most of the people prefer ready-to-eat, not all of them are cooked for
themselves and some do not have enough time in preparing their own food.
According to the 2007 study of FAO, about 2.5 billion people eat street foods
College of Business Administration Department of Finance
4
UNIVERS ITY OF MAKAT I
every day. . Thus, estimates that vendors make up to 6-25% of the entire
labor force in developing countries such as Philippines.
Street food vending also creates employment though generally small in
size, requires relatively simple skills, basic facilities and small amounts of
capital, yet they are very numerous and have considerable potential for
generating income and employment. According to Food Development
Technology Centre survey, about 90 % of the enterprises in the Philippines
women involved in this business.
Despite of the implications of street foods to food security and local
economies, several outbreaks of food borne diseases have been traced to
consumption of unhygienic foods. This is cause by lack of necessary storage,
refrigeration, cooking facilities, not sanitized tools and equipment, improper
food handlings, Limited access to clean water and waste disposal increases
hazard of contamination being passed to customers. But, According to FAO
investigation, it have shown that street foods are to be a good sources of
energy and protein available at a lower cost than pre-packaged processed
foods. And according to Bogor street food project, street foods made a
significant contribution to the nutrient intake of adults and children by
providing an average of 30 percent of their total energy intake, 26 percent of
their protein intake, and 44 percent of their iron intake, but only 5 percent of
their vitamin A intake. Even children under a year old were consuming
significant quantities of street foods. It is also traditionally known as an
College of Business Administration Department of Finance
5
UNIVERS ITY OF MAKAT I
important and significant form of the whole diet. As a challenge to the health
issue of the street food , government has strategies to improved street food
safety such as; Implementing rules and regulation policy, Business
registration and Licenses, Infrastructure, services, vending unit design and
construction, training of food handlers, and Education of vendors and
consumers.
Since the world has becoming more urban, there are lots of street food
vending found everywhere. But they only have one or two products focused to
be vended, not all are licensed, and hygienic. In accordance to this,
Streetwise is an establishment offers a variety of street foods that are
affordable, inexpensive, and ensures safety of the food. Considering its
methods of preparation, presentation of food, quality of the products, sanitary
procedures and friendly service accommodation will be the key factors to
achieve the trust and loyalty of the customers.
2. Competitive Conditions
Street food vending nowadays is vastly increasing as the world becoming
more urban, and there are number of street food outlets you have seen in the
street, malls, schools, and churches. There are different ways on how people
vend their products such as using bicycles, push carts, baskets, and stalls or
kiosk or shops. In the Philippines, Street food outlets are found especially on
malls, in MRT/LRT stations and some are on the street. Like Master Siomai,
food cart franchising business developed by Masterrific Foods, an 11-year-old
College of Business Administration Department of Finance
6
UNIVERS ITY OF MAKAT I
company specializing in the production and distribution of processed meat such
as ham, bacon, and burger patties established to vend siomai that has its place
in market. Dr. Kwek-kwek, the egg specialist that vend Tokneneng, Balut,
Penoy, and kwek-kwek. FrendsFries, vends French fries in different flavors and
different sizes such as cheese, and barbecue and they also have hash brown.
Midnight Mercato- the place for street food in Manila vends a variety of street
foods and beverages at night only. Henlin vends Dimsum, Congee, Siomai,
Chicken AsadoMami, Wanton Mami, Beef Mami, Lomi, Pancit Canton,
ArrozCaldo, Barbeque Rice Meal, Steamed Fish Fillet Meal, Lumpia Shanghai,
Peking Style Chicken, Sharksfin with Soup, Chopsuey, Fried Tofu, Vegetables
with Oyster. Master Juicers, vends variety of juices and sago’t gulaman such as
Melon, Halo-Halo, Pineapple, Buko Pandan, Black gulaman, and Buko salad.
However, they are some of the known street food vendors you have
always seen everywhere. Despite of that, this study offers that Streetwise will
vend a combination of all products they have.
B. Product/Service Description
1. Name of the Product/Service
Streetwise is a variety of street foods. Its products are namely: Fish
ball, Squid ball, Kikiam, Cheese stick, French fries, Kwek-kwek, Tokneneng,
Banana cue, Turon, Kalamares, HiniMais, Chicken skin, Isaw, Siomai,
Siopao, Potato chips, Balut and Penoy. There are also Beverages namely:
College of Business Administration Department of Finance
7
UNIVERS ITY OF MAKAT I
Buko juice, and a variety of Sago’t Gulaman such as; Black gulaman, Buko
pandan, and Halo-halo.
2. Features of the Product/Service
Streetwise will be serving common street foods known to Filipinos but
the eatery is also committed to give these commonly known street foods a
twists so that people will have a more delightful experience while eating their
favorite street food products.
Streetwise’ products are as follows: (a) Fish ball, clumped formed
from flaked fish mixed with flour, deep fried and served with sweet-sour,
spicy vinegar, or sweet thick brown sauce; (b) Squid ball, balls formed from
squid mixed with flour, deep fried and served with sweet-sour, spicy vinegar,
or sweet thick brown sauce, (c) Kikiam, a mixed of ground pork and
vegetables rolled in thin bean curd wrapper (tapwe) that is deep fried and
served with sweet-sour sauce; (d) Cheese stick, deep-fried snack
composed of sliced cheeses in spring roll wrapper, French Fries, deep-fried
sliced potatoes usually mixed in cheese or barbecue sprinkle, usually dipped
combination of ketchup and mayonnaise; (e) Kwek-kwek, boiled chicken
eggs dipped in a flour-and-egg batter then fried. Tokneneng,boiled quail
eggs dipped in a flour-and-egg batter then fried; (f) Bananacue, skewered
saba bananas sprinkled with sugar and deep fried; (g) Turon,sliced saba
bananas( plantains) and sliced jackfruit wrapped in lumpia wrapper, dipped
in sugar and deep fried; (h) Kalamares, fried breaded squids usually dipped
College of Business Administration Department of Finance
8
UNIVERS ITY OF MAKAT I
in vinegar; (i) Hinimais, composed of boiled sweet corn bits, mixed with
cheese powder and margarine; (j) Chicken Skin, deep-fried chicken skin
breaded with flour, usually dipped in vinegar; (k) Isaw, deep-fried chicken
intestine breaded with flour, usually dipped in vinegar; (l) Siomai, steamed
ground pork mixed with minced onion and carrots in a wanton wrapper,
dipped in soy sauce and lemon with chili sauce; (m) Siopao, steamed
dumplings filled with sweet pork, usually dipped in a sweet thick sauce; (n)
Potato chips, deep-fried twisted potato, mixed with cheese or barbecue
sprinkle; (o) Balut, boiled fertilized duck eggs with fetus inside; (p) Penoy,
boiled duck eggs.
There’s also beverages and these are as follows: Sago’t gulaman (a)
Black gulaman, composed of purified water, sugar, cubed black gulaman,
cooked sago and crushed ice; (b) Buko pandan, composed of purified
water, evaporated milk, crushed iced, coconut juice, coconut meat, and
cubes of pandan-flavored pudding; (c) Halo-halo, composed of variety of
sliced gulaman, such as red, green, orange, and yellow, cooked small pink
sago, milk, sugar, and crushed iced; (d) Buko juice, composed of coconut
juice, coconut meat, purified water, crushed iced, and milk.
All products will be in the pre-cooked process that will depend upon the
customers preferences and it will conduct a “Product Control System” guide,
wherein every hour, there are a specific number of items to be cooked,
College of Business Administration Department of Finance
9
UNIVERS ITY OF MAKAT I
depending on the demand analysis. It will apply to avoid lapse or over
production products.
3. Uses of the Product/Service
Given that Streetwise is using the “Product Control System” the foods
are served hot that is easily served and ready to consume.
4. Users of the Product/Service
The target markets will be those of the white collar and blue collar jobs,
walk-ins, and those who are engaged in private educational institutions.
5. Geographical Areas of Dispersion
Streetwise is a stand-alone business that will operate in a high profile
community surrounded by institutions, firms, and establishments.
C. The Business Models
1. Review of Related Business Models
2. The Final Business Model
College of Business Administration Department of Finance
10
UNIVERS ITY OF MAKAT I
D. Socio-Economic Impacts
E. Regulations and Environmental Considerations
In order to prove to the customers that the products are safe and
hygienic, this business will be comply all the rules and regulation of a licensed
establishment should have such as sanitary permit and business permit.
Customers are the most important in business to generate income. In
order to attract customers, this store will give a hundred percent of total
customer satisfaction by means of maintained cleanliness, and foul odor free.
So, Streetwise will comply with the environmental factors particularly with
proper disposal of wastages.
College of Business Administration Department of Finance
11
UNIVERS ITY OF MAKAT I
This business will going to provide a labeled number of pair trash bins
that will placed in kitchen, counter, and dining area. The employees are the
one who is liable in segregation of bio-degradable and non-biodegradable
products. The accumulated garbage will be place in a utility room to avoid foul
odor and it will disposed upon the garbage collector comes. This will be
observed in day to day operation.
F. Critical Risk Factors
SWOT ANALYSIS
STRENGTH
The business location will be easily notice by its nearby establishments
and can be center of attraction as this type of food industry adopted by some
of the characteristics of others. It is made up of symmetrical walls. But the
uniqueness of the business comes in upon entering of consumers; the walls
are already built of bamboo pieces which became a semi-formal and ethnic
room for eating. Products offered will be fitted to their food budget and are
always affordable. The ambiance inside the store will give them a relaxing
experience.
WEAKNESSES
Street foods are defined in some disadvantages factors that can
influenced some people on how to respond to this type of foods sold. Most
College of Business Administration Department of Finance
12
UNIVERS ITY OF MAKAT I
consumers thinks that street foods are unhygienic that is why vast number of
them are not interested to buy.
OPPORTUNITIES
By food handling regulations and procedures in preparing foods these
simply attract consumers to come and buy as they have an assurance that
these products taken are safe. Streetwise may prove that it caters products
that can give a nutritional value as well as energy for the body.
THREATS
Most places are mainly consists of different fast food chains and
eatery. All those enterprise are being recognized as threats to the business.
Definitions given by some researchers about the negative contents are also
considered as it may cause in reducing the future profit of the store.
College of Business Administration Department of Finance
13
UNIVERS ITY OF MAKAT I
Chapter II
THE MARKET VIABILITY PLAN
A. Market Research and Analyses
1. Analysis of Demand
The operation in every business does not only focus in the
production of its products. Entrepreneurs must consider how its consumers
react to the availability of goods produced. If consumers have a positive
outlook about it and willing to spend considering its price, that’s when the
business studies demand analysis comes in.
Analyzing the demand in keen to details will help the projection
of the total number or quantity of each product that are going to produce in
daily operation. The target markets are those individuals who are engaged in
a private educational institutions, walk-ins, and wears blue collar or white
collar job. The target place is surrounded by a firms, and private educational
institutions.
2. Analysis of Supply
There are factors to consider in avoiding surplus of productions,
such that you need to determine; (a) when will be the demand increases and
decreases, (b) which are your competitors and (c) what are the quality of the
products being sold.
College of Business Administration Department of Finance
14
UNIVERS ITY OF MAKAT I
B. Price and Pricing Study
1. Price Analysis of Related Products/Services
Streetwise business offers a variety of street foods, mainly known to
have a cheaper price. In order to prove to the customers that they are wise to
purchase in this establishment and to gain profit, the prices will be based on
the selling prices of all similar and substitute products.
2. Product/Service Pricing Strategy
There are different types of pricing strategy, to make it easy, Streetwise will
be using the simplest pricing strategy. This is the Cost-plus pricing. The firm
calculates the cost of producing the product and adds on a percentage (profit)
to that price to give the selling price. It is likely shown as:
Purchase Cost + Operating Cost + Mark-up = Selling Cost
C. Marketing Program and Design
1. Product/Service Sales Plan
Streetwise stands in a high profile community and most of the
customers are very meticulous on the food that they eat. In preparing the
products, the staff should wear hair net and uses hand gloves to show that
the foods they are eating are safe and hygienic. The products are going to be
pre-cooked with the use of PCS guide to serve it hot to the customers. For
take-out products, it will be packed in a paper cups with a stick.
College of Business Administration Department of Finance
15
UNIVERS ITY OF MAKAT I
2. Channel Distributions Plan
Streetwise products will be come from suppliers then down to
the consumers.
3. Advertising and Sales Promotions
To enable to catch the attention of the customers, Streetwise will going
to use; Tarpauline or poster, to give information to the customers that this
business is vending a variety of streetfoods. Flyers, it can pass on to other
possible buyers that it will bring to the store to eat. Facebook page, since
today is modern world and surfing is the best way to have a quick access. It is
the best way for them to know the whole concept behind Streetwise and Gift
Certificate will be use on the first day or opening of the business and it will
only be good in that day. It is worth of Php50.00.Streetwise will be giving gift
certificate before it will opens then the first 50 customers who will use it can
redeemed their free meal.
4. Marketing and Promotions Budget
The budget for the marketing and promotion will be based on how
many pieces will be going to produced. In tarpaulin or poster, it will have two
copy good for 4 months. In Flyers, it will going to have 1000 pieces good for
two months. It will be distributed twice a month until it will get the interests of
the customers. The gift certificates to be produced will be 200 pieces to
attract more customers on the day it will be opens.
College of Business Administration Department of Finance
16
UNIVERS ITY OF MAKAT I
Chapter III
THE TECHNICAL VIALBILITY PLAN
A. The Detailed Product/Service Description
Streetwise offers a variety of foods commonly seen in the street.
Streetwise’s products will base on the top 10 street food in demand in the
Philippines. These are Fish ball, Squid ball, Kikiam, Cheese stick, French
fries, Kwek-kwek, Tokneneng, Banana cue, Turon, Kalamares, HiniMais,
Chicken skin, Isaw, Siomai, Siopao, Potato chips, Balut and Penoy. There are
also Beverages namely: Buko juice, and a variety of Sago’t Gulaman such as;
Black gulaman, Buko pandan, and Halo-halo.
Majority of the costumers are aware that this type of foods contains a
not so high nutritional value for the body as well as how it is prepared and
cooked by street vendors. The proponents came up with the conclusion on
how to manage proper food handling by implementing right procedures.
The business will follow the PCS guide. Here, the products are being
to be pre-cooked to serve hot and quickly to the customers and ready to
consume, given that most of the target markets have ample of time to eat.
Streetwise is a “pay as you order” process when it comes on how
customers can buy. They will be fall in line to order directly to the counter to
have an organized procedure in paying products that they want to consume.
College of Business Administration Department of Finance
17
UNIVERS ITY OF MAKAT I
After this, there will be another line for waiting and getting their orders by
showing their receipts.
The business considers consumers who don’t have ample time to eat
especially those who are busy, thus preferring take- out orders. But when
consumers have the willingness to wait and to spend their time to experience
the culture/ ethnic of being a Filipino will be offered to eat freely in dine – in
orders.
B. Pre-Manufacturing/Production Requirements
1. Plant Location
The location of the business is in a high profile community wherein lots
of buildings and private educational institutions are found across to one
another and sited for quick and convenient access. The unique design of its
environment will entice those of white collar and blue collar jobs, walk-ins and
those who are engage in a private educational institution to come and buy the
products being offered as it fits to their budget.
The raw materials are supply by a small- scaled business in terms of
an agreement with a fixed cost, inclusively nearby its delivery. The
comfortable surroundings are supported by the most complete range of well-
planned utilities. The business will have its own utility line that will have the
assurance of continuous operations over time as well as consumption
management.
College of Business Administration Department of Finance
18
UNIVERS ITY OF MAKAT I
2. Plant Layout
LEGEND:
COLORS DESCRIPTION
Cooking Area Chairs
Storage Area Restroom/Wash Area
Counter Area Utility room
Door Tables
College of Business Administration Department of Finance
19
UNIVERS ITY OF MAKAT I
3. Plant Capacity
This business offers to the customer a small seating area where they
can enjoy their food. This turnkey operation could seat around approximately
not more than 20 customers at any given time and not more than 10 chairs. It
has also provide restroom consist of wash area that is available for personal
necessity of staff and buyers. The size of street vending operations must also
have storage room because this is one of the aspects that a food business
considers. Storage area is for foods and condiments.
4. Building and Facilities
Streetwise is a stall comprising of kitchen, storage and counter area.
The storage area will have the raw materials good for the production
depending on the demand and shelf life of the products that will affect too
much in the inventory. The kitchen will probably have the largest space
among the two other areas since it will contain equipments and materials
necessary in preparing and cooking street food products. The land will be
lease at the beginning time of operation ad will soon own after the business
gained an adequate amount to buy the land.
The stall will be owned by the business and is not as typical like what
is usually seen in the street. This will be customized according to facilities.
The business also has dine-in tables for convenience purposes of the
customers with a sound system for their relaxation.
College of Business Administration Department of Finance
20
UNIVERS ITY OF MAKAT I
5. Machinery and Equipment
6. Raw Materials and Supplies
7. Utilities and Waste Disposal
C. Manufacturing/Production Costs
1. Cost of Direct and Indirect Materials
2. Cost of Labor
The business has its operating time of 18 hours. It requires a two
(2) shifting of schedule of workers. The employees must be
available to work with a minimum of eight (8) hours- with additional
of one hour for their break time. Employees will be provided a
minimum salary according to the law.
3. Manufacturing Overhead
4. Cost of Equipment
5. Utilities Calculation
D. Manufacturing/Production Process
1. Process Flow Diagram
2. Production Schedule
College of Business Administration Department of Finance
21
UNIVERS ITY OF MAKAT I
Chapter IV
THE FINANCIAL VIABILITY PLAN
A. Initial Capital Requirements
1. Fixed Assets
A long-term tangible piece of property that a firm owns and uses
in the production of its income and is not expected to be consumed or
converted into cash any sooner than at least one year's time. This includes;
2. Current Assets
Current asset is a balance sheet account that represents the
value of all assets that are reasonably expected to be converted into cash
within one year in the normal course of business. This includes; cash,
accounts receivable, inventory, prepaid expenses and other liquid assets that
can be readily converted to cash. These assets are very important in the
company’s day-to-day funding operations and for the ongoing expenses.
B. Sources of Financing the Business
Every business requires financing to support its operations. In line with
this, there are several sources of funding, both short-term and long-term. The
proponents will acquire funds on investments and bank credits. Sixty percent
(60%) will come from investments and the other forty percent (40%) from
bank credits.
College of Business Administration Department of Finance
22
UNIVERS ITY OF MAKAT I
C. Major Financial Assumptions
Every business establish is looking for a possible net profit and
minimize cost. And every year there will be an increase of sales and company
can expand there business and recruit more employees for its operation. Cost
of production, equipment, labor, utilities, tend to increase to sustain the
demands of every costumers and payment for the VAT increase. There will
be a renovation for the future expansion for good condition and ambiance of
the place that attract more buyers.
College of Business Administration Department of Finance
23
UNIVERS ITY OF MAKAT I
D. Preparation of Financial Statements
1. Income Statement
Year 1 Year 2 Year 3 Year 4
Net sales xxx xxx xxx xxx
Cost of goods sold (xxx) (xxx) (xxx) (xxx)
Gross profit on sales xxx xxx xxx xxx
Operating expenses
Permits and licenses (xxx) (xxx) (xxx) (xxx)
Utilities expense (xxx) (xxx) (xxx) (xxx)
Rent expense (xxx) (xxx) (xxx) (xxx)
Administrative and selling expense (xxx) (xxx) (xxx) (xxx)
13 month pay (xxx) (xxx) (xxx) (xxx)
Salaries and wages expense (xxx) (xxx) (xxx) (xxx)
Supplies expense (xxx) (xxx) (xxx) (xxx)
Depreciation expense (xxx) (xxx) (xxx) (xxx)
Total operating expense (xxx) (xxx) (xxx) (xxx)
Net income before tax xxx xxx xxx xxx
Income tax expense (xxx) (xxx) (xxx) (xxx)
Net income xxx xxx xxx xxx
College of Business Administration Department of Finance
24
UNIVERS ITY OF MAKAT I
2. Cash Flow Statement
Year 1 Year 2 Year 3 Year 4
Cash Flow for Operating Activities xxx xxx xxx Xxx
Cash xxx xxx xxx Xxx
Receipt of Output VAT from sales (xxx) (xxx) (xxx) (xxx)
Cash Outlay of input VAT (xxx) (xxx) (xxx) (xxx)
Purchase of inventories (xxx) (xxx) (xxx) (xxx)
Payment of supplies (xxx) (xxx) (xxx) (xxx)
Payment of permits and licenses (xxx) (xxx) (xxx) (xxx)
Payment of utilities (xxx) (xxx) (xxx) (xxx)
Payment of rent (xxx) (xxx) (xxx) (xxx)
Payment of administrative and selling (xxx) (xxx) (xxx) (xxx)
Payment 13 month pay (xxx) (xxx) (xxx) (xxx)
Payment of salaries (xxx) (xxx) (xxx) (xxx)
Payment of income tax (xxx) (xxx) (xxx) (xxx)
Payment of withholding tax (xxx) (xxx) (xxx) (xxx)
Payment of VAT (xxx) (xxx) (xxx) (xxx)
Net cash by operating activities (xxx) (xxx) (xxx) (xxx)
Cash flow for investing activities
Purchase of machineries and equipment (xxx) (xxx) (xxx) (xxx)
Purchase of furniture and fixture (xxx) (xxx) (xxx) (xxx)
Purchase of utensils (xxx) (xxx) (xxx) (xxx)
College of Business Administration Department of Finance
25
UNIVERS ITY OF MAKAT I
Net cash flow use for investing activities (xxx) (xxx) (xxx) (xxx)
Cash flow for financing activities
Investment of partners xxx xxx xxx Xxx
Net cash flow use for financing activities xxx xxx xxx Xxx
Net cash flow xxx xxx xxx Xxx
Beginning balance of cash xxx xxx xxx Xxx
Ending balance of cash xxx xxx xxx Xxx
3. Balance Sheet
E. Financial Analyses
F. Decision Criteria
G. Break-even Analysis
H. Other Approaches in Evaluating the Business
College of Business Administration Department of Finance
26
UNIVERS ITY OF MAKAT I
Chapter V
THE ORGANIZATION AND MANAGEMENT PLAN
A. The Business Identity
1. Mission & Vision
MISSION
To be the first business that will cater great tasting and sterile street
foods to the customers with a hospitable and friendly service in comfortable
and well-organized vicinity.
VISION
To become a prestigious and highly successful business in the
Philippines that provides customers an affordable and quality street food. To
be competitive in today’s consumers’ preferences until the next succeeding
years.
2. Business Objectives
B. Form of Business Ownership
College of Business Administration Department of Finance
27
UNIVERS ITY OF MAKAT I
C. Organizational Structure
D. The Management and Key Personnel
E. The Project Schedule
College of Business Administration Department of Finance
28