BUSINESS PLAN PROPOSAL Group No. 3 Group members: Cosico, Rexanne Monique c. Lazo, Mary Elizabeth C.

BUSINESS PLAN WORKSHEET I. Proposed Business: Milk Tea Shop II. Name of the Business: Serendipitea III. Strengths, Weaknesses, Opportunities and Threats (SWOT) A. Major Streghth- The tea shop we will be opening will be a place that will suit the needs of students who studies near the area and the professionals who work near the shop. B. Major Weaknesses-The ordinary student has an allowance that sometimes cannot accomodate the prices of our establishment and professionals are oftentimes searching for other food sources apart from teas and milk teas. C. Major Opportunities-The launching of our tea shop will garner the interest of the community of the schools and the offices. The prices and quality of our product will ensure our customers will come back. We will also advertise through posters and flyers. And every Wednesday, we will less the price of our tea by P10.00 pesos to get more customers while not sacrificing the profit. D. Major Threat-There are other food establishments near the area. We cannot predict the weather so during the rainy season, we will not have big sales. IV. Decision-Making Checklist A. Economic Factors 1. Will there be a profit? YES 2. Can we avail of loans? YES 3. Is there a ready market for our product? YES B. Social Factors 1. Are we providing for a needed product/service? YES

2. Will the community benefit from the business? YES 3. Are we free to make our own decision? NO 4. Are we ready to invest? YES 5. Do we have our families' support? YES C. Interactive Factors 1. What risks are involved? As mentioned above, the tea shop we will open will be located near the office and the school so other food establishments have already opened there. Opening the tea shop is a risk because we are not sure if our market will readily accept our business. The weather in our country is also unpredictable so we cannot know for certain if we will have high sales for a day. 2. How do we feel (in general) about the business? We are excited to open the business because it will not be the first time we will be opening a business. Both partners have existing businesses in the past. However, it is not as grand as this new venture and a 'level-up' from the old ones.Both partners see the opening of this tea shop as a way for profit and a chance to serve the community. D. Evaluation 1. Are most of your answers a yes or no? Most of our answers are a resounding yes. 2. Is there a factor, such as lack of credit, which will make our business impossible? No, because we will be obtaining a loan from the bank (P150,000) pesos as starting capital. 3. What is your decision about the business? We look forward to the opening of our establishment. 4. Is your decision is yes, discuss as a group what you are looking forward to about starting business and what are afraid of the most? We are ofcourse, looking forward to the profit which will be the fruit of our hard work. We also look forward to the chance to serve the community through the affordable prices and good quality of our products. We fear the opening of another tea shop which will considerably lower our sales and maybe even steal our customers. We are most afraid of bankruptcy and the need to close down our business because of the lack of profit 5.If

your decision is to discontinue, refer back to the earlier activities where you listed a number of business opportunities? We decided to continue opening the business. V. Areas to be Considered A. Material 1. What are the materials that you need to start your business?

* * * * * *

Raw Ingredients for the milk teas and teas. Automatic sealing machine for cup sealing Thermos bucket for the brewed teas Cups and Straws Chairs, Tables, Couches Bell

for calling customers when ordered teas are already prepared

2. Where you can obtain the materials? From various suppliers and a variety of stores. 3. Is there a ready spurce and enough supply? Yes, there will be a stock of raw ingredients and supplies. Every Thursday, we will restock our kitchen for the ingredients. There will be enough tables and chairs available for our customers. B. Transportation 1. What transportation facilities do you need for the successful operation of the business, obtaining supplies and marketing your product? A humble L300 would suffice for the need to buy and restock supplies. 2. How much does it cost? Virtually nothing because it belongs to one of the partners of the business. The cost would only cover the payment for gasoline and the wage of the hired driver. C. Facilities

1. Where are you going to locate your business? We will be locating our business at 22 Malugay Street, Bel Air Makati City. It is located near a school, namely: ________and various offices such as:_______

2. Is there a supply of water, electricity and other resources? Yes there will be. Installation costs vary. An estimated 50,000 will be saved for these matters while planning the business. D. On Workers 1. Who is responsible for:

* * * *

Production Department- We will be hiring 4 workers who will work on a schedule we will prepare. Marketing Department-Mary Elizabeth Lazo, one of the partners, will head this department. Administration Personnel-Rexanne Monique Cosico, another one of the partners will head this department. Finance Department-We will be consulting the help of Mary Elizabeth Lazo's mother, Mrs. Nora Lazo, a certified public accountant (DI KO SURE BAGUHIN MO NA LANG TO!) for the handling of our finances.

2. How much will you pay yourselves for the time you will be spending? it depends on the profit we will generate. Estimating, we think 10,000-15,000 each per month, depending on the sales. 3. Is there a need to hire other workers? There is, so we will be hiring four (4) other workers. E. On Training

* * * * *

1. Do you have the needed skills? Yes because this will not be the first time we will enter the world of business. If you do not have the skills, how do you plan to acquire them? For the skills we do not have, we plan to attend several seminars and train ourselves before the official opening of our business. 3. Who will train your hired workers?

We, ourselves, will train our other workers and always be around the shop to supervise them.

F. On Packaging 1. Does your business need packaging? Yes. 2. If yes, what kind? The cups would have the name of our shop (Serenitea) printed on it. 3.What materials do you need? Cups as containers. 4. Where will you get them? The supplies of empty cups and straws would come from our past classmate and friend, Anna Velitario, who operates a plastic industry business. Before opening our tea shop, we agreed on the price of these materials and we were able to obtain a discount from her.

G. On Promotion 1. How will you let the consumers know about your business and your product? Through posters, advertisements and 'word of mouth'. 2. How much are you ready to spend your promotions? P3,000 for the advertisements before our grand opening that will be used to purchase posters and tarpaulins. P500 every month for printing flyers of our new and 'must try' products. 3. What strategies are you going to use? As said above, every Wednesday we will discount P10.00 from the original price of our products to have more customers and have higher sales. This promo will be available from 12 noon to 6 pm in the afternoon. H. On Money 1. Where will you get your start-up capital? (From the bank, name of the bank. From a lending company, name of it.) From the bank, Banco de Oro(BDO)

2. How much are the interest payments? Yearly, 6.00%. We will be borrowing P250,000 from the bank as starting capital.

BUSINESS PLAN Our Business Name of Business: Serenitea Our proposed Business: Milk tea shop that will serve the school and offices in nearby areas The skills to be learned:

* * *

The skill of learning how to make the 'perfect' milk tea The skill of finding the right time to introduce new products to our market The skill of investing our money wisely and budgeting the profit monthly.

The location of the business: Our Market: Our market has no big limitations on age or gender because it is in the food industry. Our consumers, where and when: The students who study in the school near our shop and the professionals who work nearby will be our consumers. They will mostly visit the shop on week days because of their schedules. However, we believe the students will also use the shop as a 'meeting place' for projects and homeworks so there will be a market during weekends. We will promote our business and product through: Advertisements in the forms of posters, flyers and tarpaulins. Business Operation: We will be opening the shop from 8 am to 8 pm daily. We will produce the product: 1. Every day (quantity) There will be an estimated total of 80 milk teas made every day. 2. Every week ( quantity) There will be an estimated total of 560 milk teas made every week.

3. Every month (quantity) There will be an estimated total of 2480 milk teas made every month. We produce in a year's time a total number of: 29760 cups of milk teas (Estimated) We will hire ( kind of workers and number): 4 workers

* * *

Cook-1 Cashier/Assistant cook-1 Waiters-2

We will be hiring skilled, patient and creative workers in our business. Number of workers per department: 1. Production Department: --- Rexanne will handle this department alone. 2. Marketing Department:---Mary will handle this department alone. 3. Services Department:4 Total number of workers: Four (4) if we will not consider ourselves. If we will, then six. (6)

We will divide the work this way: A. Production Dapartment: The one to facilitate the production of the goods, the manager of the supplies, the one in charge of the 'quality control' and the one to facilitate and supervise the workers daily. B.Marketing Department: The one to facilitate the accounts, the one to compute for the profit and to think of ways to attract more customers. The one in charge of the money and paying the bills and wages on time. C. Services-The hired workers who will be in charge of the day-to-day operation of the shop; namely the preparing and serving of the product. They will also be the ones to serve the customers face to face. The people who will manage the business are: The partners in the business venture: Rexanne Monique C. Cosico and Mary Elizabeth C. Lazo. Business expenses:

Our start-up expenses will include the following: Materials:P60,000 Advertising:P3,000 Sales Budget:P50,000 Cash Budget:P50,000 Manufacturing budget:P47,000 Labor:P40,000 TOTAL:250,000

Our operating expenses for one year will include the following: Materials:P20,000(equipment needed will already be paid by start-up capital) Advertising:P6,000 (P500 for every month) Sales Budget:P30,000 Cash Budget:P50,000 Manufacturing budget:P15,000 Labor:P TOTAL:

We will borrow money from: Banco de oro (BDO) At an interest rate of: 6.00% per annum Our monthly payments will be: Interest will start on:

Sales Income We will sell the product/service at: Our projected sales is:

they sell Every day: Every month: Every year: Our estimated annual sales income is: Business Benefits Our business will contribute the following: Our business will be facing the following risks: Production Plan Form Start-up Expenses Resources Needs Source Cost

Investment Plan Form Product Service Item What is needed What is on hand Cost

Sales Chart Price per Item Income One day Daily Sales Income Sales Income Weekly Daily Sales Income Sales Income Monthly Number of Selling Days/Week Weekly Number of Selling Days/Week Weekly Number of Items sold Daily Sales

Yearly Operating Expenses Total Needed Source Cost/Cycle Cost/Year

Cost Plus Profit Price A. Monthly cost 1. Materials 2. Transportation 3. Facilities 4. Labor/salaries 5. Packaging 6. Loan payment 7. Taxes 8. Others TOTAL COSTS B. Number of items produced each month C. Per item cost: D. How much is added to each item's cost for profit Amount added to each item E. Add: per item cost and profit margin for each item and you have sales price for each item. Sales price:

ORGANIZATION STRUCTURE

Production Layout

Distribution of Money Percentage (%) cash Budget: Sales Budget: Advertising: Manufacturing: Labor: Materials: Amount