School of Business and Economics

Department of Hospitality Management

Tourism Management Section

ZILQ Souvenir Shop

SOUTH WING, MACTAN CEBU INTL AIRPORT
Lapu-Lapu City, Cebu

In partial fulfilment of the course

TM 310: Entrepreneurship in Tourism

Submitted to:

MR. DAVY BASTASA

Faculty of Department of Hospitality Management

Submitted by:

Albienda, Selene Grace

Cadavid, Betty
Melencion, Mary Chris
Melicor, Jahaziel
Osma, Ajan Vicente Safdar
Quiles, Resil Mae
Quilisadio, Oharra
Sico, Jameah

ACKNOWLEDGEMENT
 Working on this project of TM 310: Entrepreneurship in
Tourism entitled "Zilq - Souvenir Shop" was a source of
knowledge for us on building a business in the near future.

It is a genuine pleasure to express our deep sense of

gratitude to our mentor, Mr. Davy Bastasa. his dedication and
keen interest above all his overwhelming attitude to help us his
students had been solely and mainly responsible for completing
our work. His encouragement and inspiration made us better in
making this project. We would also like to thank our parents for
their love and support

Summary of the company

2
 Zilq is a business that offers a wide range of post cards, Filipino
Delicacies and souvenirs. Zilqs motto is "One Place, Your Place. Zilq will
soon be open as a retail souvenir store specializing Filipino made products,
delicacies and Filipino made hand crafts. Zilq will surely out-grew its original
space and will be located in the Mactan Cebu International Airport opens
every day 24 hours

TABLE OF CONTENTS

3
CHAPTER
Cover Page i
Approval Sheet ii
Acknowledgement iii
Executive Summary iv
Table of Contents v

I. OVERVIEW OF THE BUSINESS VENTURE

1.1 Vision 8
1.2 Mission 8
1.3 Goals 9
1.4 Objectives 9

II. INDUSTRY ANALYSIS

2.1 Industry Profile
2.1.1 Competition 10
2.1.2 Size 10
2.1.3 Competition 11
2.1.4 Key Success Factors 12
2.1.5 Logo 13
2.2 External Factors Analysis (PEST Analysis) 14
2.3 Competitors Analysis 17
2.3.1 Existing Competitors
(direct and indirect) 18
2.3.2 Potential Competitors 18
3. MARKETING PLAN
3.1 Marketing Strategies and Programs
3.1.1 Market Segmentation Strategies 19
3.1.2 Target Market 20
3.1.3 Positioning 20

4
 3.2 Marketing Mix Decision
3.2.1 Product/ Service 21
3.2.2 Pricing Program 24
3.2.3 Distribution Channel 24
3.2.4 Advertising and Promotions 24
3.3 Sales Forecast
Sales Projection in units and pesos 25
Period: First Two years of operation 25

4. OPERATONS MANAGEMENT PLAN

4.1 Overview of Proposed Supply Chain Management 27
4.2 Production Forecast/ Schedule/ Budget
4.2.1 Sales Projection 28
4.2.2 Production Forecast 30
4.2.3 Production Capacity 30
4.3 Supply Network
4.3.1 Bill of Materials 31
4.3.2 Raw Materials and Supplies Requirement 33
4.3.3 Transportation Requirement 34
4.3.4 Location Strategy 34
4.4 Internal Supply Chain 35
4.4.1 Process flow 35
4.4.2 Layout Design 36
4.4.3 Machineries and Equipment Requirement 38
4.4.4 Manpower and Skills Requirement 41
5. ORGANIZATIONAL AND MANAGEMENT PLAN

5
 5.1 Type of Ownership 41
5.2 Organizational Structure
5.3 Functions and Responsibilities
5.4 Compensation
5.5 Organizational Policies
5.6 Legal Requirements
6. Financial Plan
6.1 Financial Objectives and Target
6.1.1 Total Project Cost
6.1.2 Capital Structure/
Sources of Financing

6.2 Projected Financial Statements

6.3 Projected Income Statements
6.4 Projected Cash Flow Statements
6.5 Projected Balance Sheet
7. CONCLUSIONS AND RECOMMENDATIONS
APPENDICES
The Management Team
Other Pertinent Documents

I. OVERVIEW OF THE BUSINESS VENTURE

1.1 Vision

6
 Our Vision is to be the leading provider of local brands throughout the
Philippines. The number one supplier in all kinds of native delicacies from the
different places in the country, and to give the best quality of services that
every customers deserved.

1.2 Mission

Zilq Souvenir Shop is a dedicated Filipino company providing tourists

exceptional local made products that can only found in the Philippines. Our
mission is to provide Filipino products in a unique, high-quality merchandise
at affordable prices.

1.3 Goals

The souvenir is an integral part of the travel experience and most

tourists return home with souvenirs to preserve and commemorate such

7
experiences. The goal of the Zilq Souvenir Ship is to provide a unique
shopping experience for our patrons by highlighting local made products.

The key to success in achieving our goals are:

Location convenient access since it is located within the airport.

The Creation of unique innovative, appealing atmosphere that will
differentiate us from competition.
Variety of quality products
Competitive Prices, controlling costs at all times in all the products.
Providing exceptional services that leaves an impression

1.4 Objectives

Generate total sales revenue to establish a profit at the end of year one.

Implement e-commerce capabilities to existing company website in year

three.

Establish an annual growth rate of approximately 20% in year three.

Maintain a direct cost of sales of 45% or less.

Establish 50% of our merchandise as proprietary products in year two.

Establish our company as a premier "Brand Recognized" name

throughout the community in year one.

II. INDUSTRY ANALYSIS

2.1 Industry Profile

2.1.1 Classification

8
 Bags Magnets
Caps Magazines
Pens Purse
Tshrt Tumblers
Clock Chicharon
Umbrellas Choco Chips
Key Chains Dried Mango
Mugs Banana Chips
Post Cards Dried FIsh

2.1.2 Size

POSITION NO. OF EMPLOYEES

MANAGER 04

CASHIER O4

SALE PERSON O6

MAINTENANCE O4

2.1.3 Competition

Different kinds of Filipino made products will establish itself

competitively as a unique souvenir shop environment through product

9
offering and friendly, personal customer service. The Competitors of Zilq
Souvenir shops are the different souvenir shops inside the International
Wing of Mactan Cebu International Airport such as Duty Free.

POSITION NO. OF RATE PER RATE PER

EMPLOYEES DAY
MANAGER 04 961 25, 000
CASHIER O4 576 15,000
SALE PERSON O6 346 9,000
MAINTENANCE O4 269 7,000
SECURITY 02 250 7,500
GUARD
ACCOUNTANT 01 450 13,500

2.1.4 Key Success Factors

Acquire and personally design a product line of "one-of-kind" handcrafted

and unique products.

10
 Provide customized products and services that are "tailor-made" to each
customer's personal style.

Establish a loyal customer following by offering seasonal promotions /

discounts, distributing direct mail postcards, offering quality merchandise
at affordable prices, and providing a visibly inviting and comfortable
shopping environment.

Establish a "Brand Identity" that personifies high-quality, gift giving

merchandise and outstanding customer service.

1.5 Logo

11
Zilq is designed for a modernized type of souvenir shop. A classy and a
decent type of logo can attract customers in the way that the logo is
designed in plain font.

12
 2.2 External Factor Analysis (PEST Analysis)

Political factors:
Government regulations regarding employee hygiene, health and
food regulations, supply standards, etc.
Government policies regarding the supply of each of the items
accessories. These may include licenses,
Minimum wages policy
Individual Traveling Schemes
In able for our shop to attract more customers

Taxing Policy(Corporate consumer)

The profits may cover the increased cost

It also saves money

Environmental regulation and protection.

Consumer protection

Employment law

Government organization / attitude

Competition regulation

13
Economic factors:
Interest rates would affect the cost of capital, the rate of interest
being directly proportionate to the cost of capital.
Rate of inflation determines the rate of remuneration for employees
and directly affects the price of the stores products. Again, the
proportion between the inflation rate and wages/prices is direct.
Economic trends act as an indicator of the sustainability and
profitability of the business in the chosen region and help us in
deciding your marketing strategy.

Social factors:
Wearing of product will, affect our marketing decisions.
Ratio of people preferring to buy out regularly.
Multi- cultural society
Attract different visitors

Income distribution

Demographics

Labor / social mobility

Lifestyle changes

Attitudes to work and leisure

Education

Fashions and fads

Health and Welfare

Living conditions

14
Technological factors:

A good technical infrastructure would lead to better production,

procurement and distribution logistics, resulting in reduced wastage
and lower costs.
Effective technology may be a decisive factor for food technology
innovation, better presentation, more effective business marketing,
etc.

15
2.3 Competitors Analysis

5=Vey High 4=High 3=Moderate 2= Low 1=Very Low

factors Zilq Competitor 1 Competitor 2
Products 4 5 3
Quality 5 4 4
Price 5 5 4
Service 5 5 5
Companys 5 5 3
Reputation
Location 5 5 3
Appearance 5 5 4
Employee 5 4 4
Advertisement 5 4 3
Total 45
43 42 33

16
 2.3.1 Existing Competitors (direct and indirect)

Direct Competitor

Airport pasalubong center, Island souvenirs, Atin to handicrafts,

Lulanbles pasalubong center, Dlinth pasalubong center, Dundees giftshop
and pasalubong, IEIAS pasalubong center , Duty free offering identical or
similar products or services same as our company. Having the same
products will be a competition for us they have already on the Web selling
handicrafts, artwork, and similar products while us is still going to have our
first step in this industry.our advantage to this competitors is that our
products is made locally in Philippines which are made of bamboos, kawayan
, etc.

Indirect competitor

Low cost airline services Scheduled long-haul and transfers Scheduled

short-haul - Charter - All cargo

2.3.2 Potential Competitors

Our potential competitor will be the Duty free for they are known for
their branded products.

17
III. MARKETING PLAN
3.1 Marketing Strategies and Programs
3.1.1 Market Segmentation Strategies
Behavior segmentation the company will segment the customers
behavior by determining the seasons

Summer sales are expected to be high since there are more tourist
who will visit the country during this season.

Rainy season sales may be a bit low since there were only few
tourist coming in this season.

Benefit Segmentation- ZILQ company will give special discounts to a

customer

10% off for senior citizen

Php 100 gift certificate for wholesale minimum of Php 3,000

pesos. Can be claim in any branches of ZILQ souvenir shop.

Psychographic Segmentation-
1. Festival 2. Peak Season
Demographic Segmentation
1. Age 2. Gender

18
 3.1.2 Target Market
All walk in customers
No age limit
Tourist can be local or foreigners
Students
Professionals

3.1.3 Positioning Strategies

The Zilq Souvenir shop will make their products as unique as possible that
will attract the tourist to buy. Not only through the design of the packaging
but also the quality of the product. Many locals may not appreciate the
products before but Zilq will change their mindset. We will start by the
packaging of each product, and each item should have the companys logo
and the tagline under the logo so that the costumers will remember Zilq

19
 3.2 Marketing Mix Decision
3.2.1 Product/Services

BAG CAP PEN

TSHIRT CLOCK UMBRELLA

KEY CHAIN MUG CHOCO CHIPS

20
 POST CARDS MAGAZINES

PURSE TUMBLER

MAGNET CHICHARON

21
 DRIED MANGO DRIED FISH

BANANA CHIPS

3.2.2 Pricing Program

22
 Product Price
Bags Php 500-3,000
Caps Php 300-600
Pens Php 100-200
Tshrt Php 200-1,000
Clock Php 350-1,000
Umbrellas Php 300-800
Key Chains Php 100-300
Mugs Php 250
Post Cards Php 50
Magnets Php 200-600
Magazines Php 300-800
Purse Php 200-900
Tumblers Php 600-2,000
Chicharon Php 200-900
Choco Chips Php 200-600
Dried Mango Php 300-900
Banana Chips Php 300-600
Dried FIsh Php 300-800

3.2.3 Distribution Channel

ZILQ Souvenir Shop will not accept delivery or meet up orders, they
will only accommodate walk in customers. The store is open 24/7. All
customers are welcome to visit and shop, and it would be our pleasure to
assist all the needs on each customer. We offer a lot of souvenirs that will
surely ignite the tourist to buy the products with its reasonable prices.

3.2.4 Advertising and Promotions

In order to make our company known to people, we are going to
advertise it in newpapers, radio, brochure, tv ad, and internet

3.3 Sales Projection

23
 Sales Projection in units and pesos

Product Price Units Pesos

Bags Php 500 20 Php 10,000
Caps Php 300 25 Php 7,500
Pens Php 150 60 Php 9,000
Tshrt Php 500 100 Php 50,000
Clock Php 400 30 Php 12,000
Umbrellas Php 400 30 Php 12,000
Key Chains Php 150 150 Php 22,500
Mugs Php 250 30 Php 7,500
Post Cards Php 50 200 Php 10,000
Magnets Php 400 25 Php 1,000
Magazines Php 500 30 Php 15,000
Purse Php 250 50 Php 12,500
Tumblers Php 600 25 Php 15,000
Chicharon Php 200 50 Php 10,000
Choco Chips Php 200 50 Php 10,000
Dried Mango Php 300 50 Php 15,000
Banana Chips Php 300 50 Php 15,000
Dried FIsh Php 500 50 Php 25,000

Period: First two years of operations

Product Price Units Pesos Sales for 2

Years
Bags Php 500 20 Php Php
10,000 240,000
Caps Php 300 25 Php 7,500 Php
180,000
Pens Php 150 60 Php 9,000 Php
216,000
Tshrt Php 500 100 Php Php

24
 50,000 1,2000,000
Clock Php 400 30 Php Php
12,000 288,000
Umbrellas Php 400 30 Php Php
12,000 288,000
Key Chains Php 150 150 Php Php
22,500 540,000
Mugs Php 250 30 Php 7,500 Php
180,000
Post Cards Php 50 200 Php Php
10,000 240,000
Magnets Php 400 25 Php 1,000 Php 24,000
Magazines Php 500 30 Php Php
15,000 360,000
Purse Php 250 50 Php Php
12,500 300,000
Tumblers Php 600 25 Php Php
15,000 360,000
Chicharon Php 200 50 Php Php
10,000 240,000
Choco Chips Php 200 50 Php Php
10,000 240,000
Dried Mango Php 300 50 Php Php
15,000 360,000
Banana Chips Php 300 50 Php Php
15,000 360,000
Dried FIsh Php 500 50 Php Php
25,000 600,000
TOTAL Sales for 2 Years Php 6,246,000.00
of Operation

4. OPERATIONS MANAGEMENT PLAN

25
 4.1 Overview of Proposed Supply Chain Management

Farmers

Carrying Facility
and
forwarding
agent

Redistribution
stockist

Distributor

Pick-up

Warehouse

Transportati
on

Delivery

Store

Buyer

4.2 Production Forecasting/Schedule/Budget

26
 4.2.1 Sales Projection
Sales Projection in units and pesos

Product Price Units Pesos

Bags Php 500 20 Php 10,000
Caps Php 300 25 Php 7,500
Pens Php 150 60 Php 9,000
Tshrt Php 500 100 Php 50,000
Clock Php 400 30 Php 12,000
Umbrellas Php 400 30 Php 12,000
Key Chains Php 150 150 Php 22,500
Mugs Php 250 30 Php 7,500
Post Cards Php 50 200 Php 10,000
Magnets Php 400 25 Php 1,000
Magazines Php 500 30 Php 15,000
Purse Php 250 50 Php 12,500
Tumblers Php 600 25 Php 15,000
Chicharon Php 200 50 Php 10,000
Choco Chips Php 200 50 Php 10,000
Dried Mango Php 300 50 Php 15,000
Banana Chips Php 300 50 Php 15,000
Dried FIsh Php 500 50 Php 25,000

Period: Every two years of operations

Product Price Units Pesos Sales for 2

Years
Bags Php 500 40 Php Php
20,000 480,000
Caps Php 300 50 Php Php
15,500 360,000
Pens Php 150 160 Php Php
240,000 576,000
Tshrt Php 500 1000 Php Php

27
 500,000 12,000,000
Clock Php 400 100 Php Php
400,000 960,000
Umbrellas Php 400 160 Php Php
640,000 15,360,000
Key Chains Php 150 1000 Php Php
150,000 3,600,000
Mugs Php 250 1000 Php Php
250,000 6,000,000
Post Cards Php 50 2000 Php Php
100,000 2,400,000
Magnets Php 400 250 Php Php
1,000,000 24,000,000
Magazines Php 500 300 Php Php
150,000 3,600,000
Purse Php 250 500 Php Php
125,000 3,000,000
Tumblers Php 600 200 Php Php
120,000 2,880,000
Chicharon Php 200 500 Php Php
100,000 2,400,000
Choco Chips Php 200 500 Php Php
100,000 2,400,000
Dried Mango Php 300 500 Php Php
150,000 3,600,000
Banana Chips Php 300 500 Php Php
150,000 3,600,000
Dried FIsh Php 500 500 Php Php
250,000 6,000,000
TOTAL Sales for every +2 Years of Operation Php
93,216,000.00

4.2.2 Production Forecast

28
4.2.3 Production Capacity

29
4.3 Supply Network
4.3.1 BILL OF MATERIALS

Goods

ITEMS PRICE QUANTITY TOTAL

AMOUNT
T-shirts 400 500pcs 200,000

Shawl/scarfs 800 500pcs 400,000

Bags 1500 100pcs 150,000

Hats 700 300pcs 210,000

Caps 600 300pcs 180,000

Pens 30 500pcs 15,000

Watches 350 500pcs 175,000

Tumbler 600 400pcs 240,000

Key chains 300 1000pcs 300,000

Umbrella 800 300pcs 240,000

Mugs 250 500pcs 125,000

Post Cards 50 500pcs 25,000

Magnets 200 500pcs 100,000

Magazines 800 20pcs 16,000

Purse 200 300pcs 60,000

2,436,000

30
 ITEMS PRICE QUANTITY TOTAL AMOUNT
Dried Mango 300 1000pcks 300,000
Chicharon 200 1000pcks 200,000
Banana Chips 300 1000pcks 300,000
Dried Fish 300 500pcks 150,000
Choco Chips 200 1000pcks 200,000
1,150,000

Material Used

ITEMS PRICE QUANTITY TOTAL AMOUNT

Shelf 3,350/pc 10 33,500

Tables 2,500/pc 6 15,000

CCTV 10,420/set 4 41,680

Air Conditioner 47,000/pc 2 94,000

Cash Register 34,000/pc 4 136,000

Sound System 15,000/set 1 15,000

Bench 4,800/pc 4 19,200

Wall hooks 800/pc 15 12,000

Mannequin 1000/pc 10 10,000

376,380

Total 3,962,380

4.3.2 Raw Materials and Supplies Requirement

ITEMS QUANTITY
Pins 12 dozens

31
 Fabrics 1000kg
Scissors 50pc
Measure Tape 50pc
Needles 12 dozens
Zipper 100pcs
Buttons 1000pcs
Threads 2000pcs (assorted color)
Glass 500
Plastics 2000
Screws 3000
Papers 5000
Ink 12 jars
Wood 100 meters
Metal 500pcs
Stretchers 200
Magnets 5000
Batteries 5000
Steel 5000
Wire and rod 5000
Porcelain 3000
Cocoa 100kg
Ripe Mango 24 boxes
Pork skin 100kg
Raw/Ripe Banana 24 boxes
Brown Sugar 50kg
Fish 100kg
Salt 24kg
Plastics Wrapper 20000pcs

4.3.3 Transportation Requirement

32
 The company will provide its own transportation such as van, to
transport the materials needed for the company. It will also be used as an
advertising because we will place a big logo in it.

4.3.4 Location Strategy

There are different types of Tourists, mostly are Shoppholers or

Tourists that visits the place because they also want to shop. Airports are
really good in marketing.

4.4 Internal Supply Chain

PRODUCTION
PURCHASING
SUPPLIERS DISTRIBUTION
CUSTOMERS

4.4.1 Process Flow

33
 Business Plan

The first steps

before building a
business.

Hire Personnel
Select Location Business
Selection
Select a location
where do you want Select what type
to put your business. of business you
want to build.
Including business
name, logo, Stock your
store
Contact Leasing
Authority Process your
business Permit
After selecting the
location, contact the BIR, City Business
leasing agent whos Permit, Water Assign Hours to
responsible in leasing Meter (if Employee
the space. applicable), Sign
up for Electricity,
etc.

Negotiate Points of
Buy Furniture,
the Lease Price Items
fixtures &
Negotiate the price, Equipments for
the length of lease, space
etc.
Open Business

Contract/ Lease
Signing

If youre done
reviewing the
contract with all the
conditions which both
parties agree. It is
4.4.2 Layout Design
time to sign the
lease. 34
35
36
4.4.3 Machineries and Equipment Requirement

Materials Quanitity

POC System 4 Units

Speaker 4 Units

Refrigerator 3 Units

37
 Air
conditioner 6 Units

Sofa 4
Quantity

38
 Table 4 Quantity

Shelves 10
Quantity

CCTV 10 Units
Camera

39
4.3.4 Manpower and Skills Requirement

POSITION SKILLS NEEDED

Graduate in Bachelors degree
in Business Administration
Male/Female at least 26 Years
old
Manager Experienced in the related field
Knows at least 2 Languages
Knowledge in working
computer system
Able to write and speak
Graduate in Secondary
Education or Bachelors degree
Male/Female at least 18 Years
Sales Person
old
Able to speak and write
Speak at least 2 Language
Male/Female at least 18 Years
Maintenance
old
Male/Female at least 30 Years
old
Security Guard Able to understand English
Language
Willing to shift anytime
Graduate on any Bachelors
Degree
Able to Speak and Write
Male/Female 20 Years old
Cashier
With Pleasing Personality
Can speak at least 2 Language
Knowledge on using computer
system
Graduate on Bachelors Degree
major in Accountancy\
Accountant Able to speak and write
Male/Female
Knowledge on accounting

40
5. ORGANIZATIONAL AND MANAGEMENT PLAN

5.1 Type of Ownership

Corporation

5.2 Organizational Structure

41
 President

Vice
Presidents

Human
Operations Resources

Quality
Control,
Accounting Marketing Safety,
Environmen
tal

5.3 Functions and Responsibility

Position Responsibility
President Mostly known as the Chief Executive

42
 Officer, he is the leader of the
company. He is in charge of the
company
Known to be as Chief Operating
Officer, he is in charge and
Vice President
responsible for the day-to-day
operations
has overall responsibility for the
financial success of the business. The
operations manager handles external
relations with lenders, community
leaders and vendors. Frequently, this
Operations
individual also is in charge of either
production or marketing for the
business. This person will set in
motion the vision, strategic plan and
goals for the business.
This is a key function in any industry
and, in particular, one that deals in
food products. In a small business,
one person generally will be
responsible for handling OSHA
Quality Control, Safety,
compliance, EPA compliance,
Environmental
monitoring air and water quality,
product quality, training of
employees in each of these areas and
filing all necessary monthly, quarterly
and yearly reports.
Accounting the responsibility for monthly
income statements and balance
sheets, collection of receivables,

43
 POSITION NO. OF payroll
RATEand
PERmanaging
RATEthe PERcash. The
EMPLOYEES key DAY
aspect here is managing the
MANAGER 04 961 25, 000
CASHIER O4 cash. 576 15,000
Marketing
SALE PERSON O6 Finances
346 permit; a
9,000 marketing
MAINTENANCE O4 269 may be on
manager 7,000
staff to handle
SECURITY 02 250 7,500
all aspects related to promoting and
GUARD
ACCOUNTANT 01 selling450 the product.
13,500 The top
management person often handles
this duty in a small business.
he manager of the human resources
department is responsible for
ensuring that department employees
are well-versed in their areas of
Human Resource
expertise. The various disciplines
of HR require expertise in
compensation, benefits, safety,
payroll, recruiting and training.

5.4 Compensation

44
 5.5 Organizational Policies

COMPANY RULES AND REGULATIONS

The following Rules and Regulations shall apply to all employees of
the Company while in the Companys premise at all times including break
times and over time :

1. Each employee must act in accordance with the companys policies,

orders, rules, regulations, guidelines etc. applicable from time to time.

2. The Company expects each employee to maintain proper decorum.

Employees are expected to conduct themselves on the job in a manner
that contributes to operating effectiveness, productivity, safety and a
harmonious work environment.

3. The duty must be performed in good faith and a brief reporting of the
work done in the entire day must be given to the head office.4. Proper registers
must be maintained for easy tracking and record keeping.

5. No employee shall be under the influence of or using alcoholic beverages

including drinking such beverages during the work hours. Any employee
arriving to work under the influence of alcohol or an illegal substance will
not be permitted to work.

6. No employee shall drive a Companys vehicle or operate any

equipment while under the influence of alcohol.

7. You are required to be at your appointed work place and ready to begin
work at
the appointeds t a r t i n g t i m e . I r r e g u l a r a t t e n d a n c e o r t a r d i n e s s w
i l l n o t b e t o l e r a t e d a n d m a y r e s u l t i n termination.

8. Employees who will be late or absent from work must inform their
Supervisor at least two (2) hours prior to normal starting time.

9. Under no circumstances should employees leave the

assigned work area early without express permission from a Supervisor.

10. Designated break times are assigned to have meals.11. Employees

who work late or on overtime must ensure that all lights, air-
conditions and Equipments are shut off when they leave the work place.

45
12. Dress code is to be followed strictly. Employees must wear their uniforms
at locations where uniforms are required. You are expected to look neat and
presentable while on the job.
13. An increment based on individual performance shall be given every year.

14. If employees do not meet the companys expectations of performance or

conduct, necessary corrective action may be taken. It is within
managements discretion to determine what measure would be appropriate
under each circumstance.

5.6 Legal Requirements

Permits Required

46
 Barangay Clearance

Mayors Permit

DTI Business Name Certificate

SEC Certificate

Name Verification Slip

SEC

Articles of Incorporation (AI) and

By-laws (BL)

List of Donors and Contributors

BIR Form 1903 (Application Form

BIR

47
 )

BIR Form 0605 (Payment Form)

BIR Form 2000 (Documentary

Stamp Tax on Lease)

BIR Form 2000 (Documentary

Stamp Tax on Subscription)

Photocopy of SEC certificate

Contract of Lease

Photocopy of Mayors Permit

48
 UTILITIES OFFICE

UTILITIES PICTURE PRICE

MCWD

1,250 php

VECO 3,600 php

PLDT 1,999 php

49
6. FINANCIAL PLAN

6.1 Financial Objectives and Targets

Revenue

Increasing revenue by 20 percent each year for the first five years of
a new company's operations

Sustainability, return of investments and profit margin.

6.1.1. Total Projected Cost

Start-UpEnd Yr 1End Yr 2
Assets

Current Assets
Cash 31,000 4,885 10,405
Accounts receivable
Inventory 50,000 70,000 70,000
Prepaid expenses
Total Current Assets 81,000 74,885 80,405

Fixed Assets
Land
Building
Equipment 14,000 14,000 14,000
Less accumulated depreciation 0 900 1,800
Net Fixed Assets 13,100 12,200

50
Total Assets 95,000 87,985 92,605

Liabilities

Current Liabilities
Accrued expenses
Taxes payable
Short-term notes payable (Credit Line)25,000 15,000
Current portion long-term debt
Total Current Liabilities 25,000 15,000
Long-term debt 70,000 62,000 54,000

Total Liabilities 95,000 77,000 54,000

Total Equity 10,985 38,605

Total Liabilities
and Equity (Net Worth) 95,000 87,985 92,605

Sources

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 Owners' Equity Investment
301,000
Requested Bank Loan 408,5000
4,386,000
Total

Uses 0
Capital Equipment 43
Beginning Inventory 2,150,000
Start-Up Costs 408,500

Working Capital
1,229,800
4,386,000
Total

Summary of Sources and Uses of Funds

Security Collateral :
Business Assets (capital,
equipment, inventory) 2,747,700
Lien against equity in personal
residence 735,300
Common Stock - Bill Knapp 602,000
Total Collateral 4,085,000

Sources
Owner(s) investment (including cash,
301000
equipment, inventory, etc.)
Requested bank loan 3010000
Other source: Line of Credit 1075000
Other source: 0
Total 4386000
Uses 0
Capital equipment (total from Worksheet 20) 597700
Beginning inventory (total from Worksheet
2150000
21)
Start-up costs (total from Worksheet 22) 408500
Working capital (total from Worksheet 23) 1229800

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Other: (with inventory) 4386000

START- UP COST

Remodeling and decorating 129000

Interior and exterior signs 43000
Installation of fixtures and equipment 43000
Telephone installation 8600
Rent deposit 43000
Utility company deposits 21500
Licenses and permits 21500
Legal, accounting and other professional fees
12900
(for start-up)
Advertising and promotion (for start-up) 43000
Office supplies (initial inventory) 21500
Other supplies (initial inventory) 21500
Total 408500

Projected Income Statement: Detail by Month

53
 Ja
Feb March April May
n June
Gross Sales 0 0 430000 645000 860000
Less: Cost of
0 0 258000 344000 473000
good sold
Gross Profit 0 0 172000 301000 387000
Expenses 0 0 0 0 0
Advertising 0 30100 51600 30100 55900
Credit card
0 0 3225 3225 8600
service charges
Depreciation 0 9675 9675 0 0
Dues and
0 8600 8600 0 0
subscriptions
Insurance 0 16125 0 0 0
Interest 0 30100 30100 30100 30100
Maintenance
3440 1935 1720 1720 1935
and repairs
Postage and
9675 11825 4300 8600 8600
supplies
Professional
6450 6450 21500 4300 8600
services
Rent 55900 55900 55900 55900 55900
Salaries/wages
0 0 0 0 43000
: Employees
Taxes 0 0 0 0 4300
Telephone 6450 6450 4300 4300 4300
Travel and
94600 12900 4300 8600 8600
entertainment
Utilities 4515 4515 3440 3440 3870
Other
operating 8600 4300 4300 4300 4300
expenses
Total expenses 189630 182750 219085 154585 238005
0 0 0 0 0
Profit (or Loss)
-189630 -182750 -47085 146415 148995
Before Taxes

August Oct Nov Dec Total

September
July
1397500 1290000 967500 774000 688000 1118000 8170000
817000 774000 559000 473000 430000 602000 4730000
580500 516000 408500 301000 258000 516000 3440000

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 0 0 0 0 0 0 0
60200 55900 17200 17200 8600 17200 344000
8600 10750 8600 4300 4300 8600 60200
9675 0 0 9675 0 0 38700
8600 0 0 8600 0 0 34400
16125 0 0 16125 0 0 48375
30100 30100 30100 30100 30100 30100 301000
1720 1935 1720 1720 1935 1720 21500
8600 8600 4300 4300 4300 12900 86000
8600 8600 8600 4300 4300 4300 86000
55900 55900 55900 55900 55900 55900 614900
86000 86000 43000 0 0 0 258000
10750 10750 4300 0 0 0 30100
4300 4300 4300 4300 4300 4300 51600
6450 6450 8600 6450 6450 8600 172000
3870 3870 3440 3010 3010 3010 39990
4300 4300 4300 4300 4300 4300 51600
323790 287455 194360 170280 127495 150930 2238365
0 0 0 0 0 0 0
256710 228545 214140 130720 130505 365070

Projected Income Statement: Detail by Quarter Year 1

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 1st 2nd 3rd 4th total
Gross Sales 0 1935000 3655000 2580000 8170000
Less: Cost of goods
0 1075000 2150000 1505000 4730000
sold
Gross Profit 0 860000 1505000 1075000 3440000
0 0 0 0 0
Expenses 0 0 0 0 0
Advertising 30100 137600 133300 43000 344000
Credit card service
0 15050 27950 17200 60200
charges
Depreciation 9675 9675 9675 9675 38700
Dues and
8600 8600 8600 8600 34400
subscriptions
Insurance 0 16125 16125 16125 48375
Interest 30100 90300 90300 90300 301000
Maintenance and
5375 5375 5375 5375 21500
repairs
Postage and supplies 21500 21500 21500 21500 86000
Professional services 12900 34400 25800 12900 86000
Rent 111800 167700 167700 167700 614900
Salaries/wages:
0 43000 215000 0 258000
Employees
Taxes 0 4300 25800 0 30100
Telephone 12900 12900 12900 12900 51600
Travel and
107500 21500 21500 21500 172000
entertainment
Utilities 9030 10750 11180 9030 39990
Other operating
12900 12900 12900 12900 51600
expenses
Total expenses 372380 611675 805605 448705 2238365
Profit (or Loss)
-372380 248325 699395 626295 1201635
Before Taxes

Projected Income Statement: Detail by Quarter Year 2

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 Total
1st 2nd 3rd 4th
387000 279500
Gross Sales 860000 2150000 9675000
0 0
227900 159100
Less: Cost of goods sold 559000 1204000 5633000
0 0
159100 120400
Gross Profit 301000 946000 4042000
0 0
0 0 0 0 0
Expenses 0 0 0 0 0
Advertising 25800 77400 103200 51600 258000
Credit card service charges 6450 17200 30100 19350 73100
Depreciation 19350 19350 19350 19350 77400
Dues and subscriptions 10750 10750 10750 10750 43000
Insurance 8600 8600 8600 8600 34400
Interest 77400 77400 77400 77400 309600
Maintenance and repairs 5375 5375 5375 5375 21500
Postage and supplies 21500 21500 21500 21500 86000
Professional services 12900 34400 25800 12900 86000
Rent 174150 174150 174150 174150 696600
Salaries/wages: Employees 0 47300 236500 0 283800
Taxes 0 5160 31390 0 36550
Telephone 12900 12900 12900 12900 51600
Travel and entertainment 107500 21500 21500 21500 172000
Utilities 9675 10320 10965 9675 40635
Other operating expenses 15050 15050 15050 15050 60200
Total Expenses 507400 558355 804530 460100 2330385
Profit (or Loss) Before Taxes -206400 387645 786470 743900 1711615

Projected Cash Flow Statement: Detail by Month

Jan Feb march april may june

57
Beginning Cash 0 3615870 2763395 687785 774000
Add: 0 0 0 0 0
Cash sales 0 0 430000 645000 860000
Collection on
0 0 0 0 0
receivables
Loan/other cash
4386000 0 0 0 0
injection
Total Cash
4386000 3615870 3193395 1332785 1634000
Available
Deduct: 0 0 0 0 0
Advertising 0 30100 51600 30100 55900
Bad debts 0 0 0 0 0
Credit card service
0 0 3225 3225 8600
charges
Dues and
0 8600 8600 0 0
subscriptions
Insurance 0 16125 0 0 0
Interest 0 30100 30100 30100 30100
Maintenance and
3440 1935 1720 1720 1935
repairs
Postage and
9675 11825 4300 8600 8600
supplies
Professional
6450 6450 21500 4300 8600
services
Rent 55900 55900 55900 55900 55900
Salaries/wages 0 0 0 0 43000
Taxes 0 0 0 0 4300
Telephone 6450 6450 4300 4300 4300
Travel and
94600 12900 4300 8600 8600
entertainment
Utilities 4515 4515 3440 3440 3870
Capital
expenditure 473000 533200 0 0
including start-up

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 Total
august sept oct nov dec
july
-
29,02 0
905,795 294,980 97,825 5 -122,120 -180,815
0
0 0 0 0 0 0
1,290,00 967,50 774,0 8,170,000
1,397,500 0 0 00 688,000 1,118,000
0
0 0 0 0 0 0
4,386,000
0 0 0 0 0 0
1,584,98 1,086,8 744,9 12,556,000
2,303,295 0 25 75 565,880 937,185
0
0 0 0 0 0 0
17,20 344,000
60,200 55,900 17,200 0 8,600 17,200
0
0 0 0 0 0 0
60,200
8,600 10,750 8,600 4,300 4,300 8,600
34,400
8,600 0 0 8,600 0 0
16,12 48,375
16,125 0 0 5 0 0
30,10 301,000
30,100 30,100 30,100 0 30,100 30,100
21,500
1,720 1,935 3,010 3,010 1,935 1,720
86,000
8,600 8,600 4,300 4,300 4,300 12,900
86,000
8,600 8,600 8,600 4,300 4,300 4,300
55,90 614,900
55,900 55,900 55,900 0 55,900 55,900
258,000
86,000 86,000 43,000 0 0 0
30,100
10,750 10,750 4,300 0 0 0
51,600
4,300 4,300 4,300 4,300 4,300 4,300
172,000
6,450 6,450 8,600 6,450 6,450 8,600
39,990
3,870 3,870 3,440 3,010 3,010 3,010

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Projected Cash Flow: Detail by Quarter Year 1
1st 2nd 3rd 4th total
Beginning Cash 0 2763395 905795 -29025 0
0 0 0 0 0
Add: 0 0 0 0 0
Cash sales 0 1935000 3655000 2580000 8170000
Collection on
0 0 0 0 0
receivables
Loan/other cash
4386000 0 0 0 4386000
injection
Total Cash
0 4698395 4560795 2550975 0
Available
0 0 0 0 0
Deduct: 0 0 0 0 0
Advertising 30100 137600 133300 43000 344000
Bad debts 0 0 0 0 0
Credit card
0 15050 27950 17200 60200
service charges
Dues and
8600 8600 8600 8600 34400
subscriptions
Insurance 0 16125 16125 16125 48375
Interest 30100 90300 90300 90300 301000
Maintenance
5375 5375 5375 5375 21500
and repairs
Postage and
21500 21500 21500 21500 86000
supplies
Professional
12900 34400 25800 12900 86000
services
Rent 111800 167700 167700 167700 614900
Salaries/wages 0 43000 215000 0 258000
Taxes 0 4300 25800 0 30100
Telephone 12900 12900 12900 12900 51600
Travel and
107500 21500 21500 21500 172000
entertainment
Utilities 9030 10750 11180 9030 39990
0 0 0 0 0
Capital
1006200 0 0 0 1006200
expenditures

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Loan principal
34400 103200 533200 103200 774000
payment
Owner's draw 232200 348300 348300 348300 1277100
Purchases
0 2752000 2924000 1462000 7138000
(merchandise)
0 0 0 0 0
Total Cash Paid
1622605 3792600 4589820 2340920 12345945
Out
Net Cash
2763395 905795 -29025 210055 210055
Available

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Projected Cash Flow: Detail by Quarter Year 2
1st 2nd 3rd 4th total
Beginning Cash 210055 -108145 -171355 288315 0
0 0 0 0 0
Add: 0 0 0 0 0
Cash sales 860000 2150000 3870000 2795000 10105000
Collection on
0 0 0 0 0
receivables
Loan/other cash
0 0 0 0 0
injection
Total Cash
1070055 2046800 3698645 3083315 0
Available
0 0 0 0 0
Deduct: 0 0 0 0 0
Advertising 25800 77400 103200 51600 258000
Bad debts 0 0 0 0 0
Credit card
6450 17200 30100 19350 73100
service charges
Dues and
10750 10750 10750 10750 43000
subscriptions
Insurance 8600 8600 8600 8600 34400
Interest 77400 77400 77400 77400 309600
Maintenance
5375 5375 5375 5375 21500
and repairs
Postage and
21500 21500 21500 21500 86000
supplies
Professional
12900 34400 25800 12900 86000
services
Rent 174150 174150 174150 174150 696600
Salaries/wages 0 47300 236500 0 283800
Taxes 0 5160 31390 0 36550
Telephone 12900 12900 12900 12900 51600

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Travel and
107500 21500 21500 21500 172000
entertainment
Utilities 9675 10320 10965 9675 40635
0 0 0 0 0
Capital
0 0 0 0 0
expenditures
Loan principal
103200 103200 103200 103200 412800
payment
Owner's draw 387000 387000 387000 387000 1548000
Purchases
215000 1204000 2150000 1720000 5289000
(merchandise)
0 0 0 0 0
Total Cash Paid
1178200 2218155 3410330 2635900 9442585
Out
Net Cash
108145 -171355 288315 447415 447415
Available

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Projected Balance Sheets
Start-Up End Yr 1 End Yr 2
Assets

Current Assets
Cash 1333000 210055 447415
Accounts
receivable
Inventory 2150000 3010000 3010000
Prepaid expenses
Total Current
3483000 3220055 3457415
Assets

Fixed Assets
Land
Building
Equipment 602000 602000 602000
Less accumulated
38700 77400
depreciation
Net Fixed Assets 563300 524600

Total Assets 4085000 3783355 3982015

Liabilities

Current
0 0 0
Liabilities
Accrued expenses 0 0 0
Taxes payable 0 0 0
Short-term note 1075000 645000 0

64
s
payable (Credit
Line)
Current portion
0 0 0
long-term debt
Total Current
1075000 645000 0
Liabilities
Long-term debt 3010000 2666000 2322000

Total Liabilities 4085000 3311000 2322000

Total Equity 0 472355 1660015

Total Liabilities 0 0 0
and Equity (Net
Worth) 3783355 3982015

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