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4.2 Form of business ownership


The proposed business will be operated by partnership type of business
because of the following advantages: a business is easy to establish and
start-up costs are low, more capital is available for the business, youll
have

greater

partners,

borrowing

there

is

capacity,

opportunity

high-caliber

for

income

employees

splitting,

an

can

be

made

advantage

of

particular importance due to resultant tax savings, partners business


affairs are private and there is limited external regulations, its easy to
change your legal structure later if circumstances change.
4.3 Capitalization
The total capitalization of this business or project is P200, 000.00
pesos. The proponents are the investors that would contribute to put up the
60 percent of the total capitalization while 40 percent of the needed
capital is plan to borrow in the bank or any lending institution with
minimal amount of interest. Each partner will be contributing P24, 000.00
pesos.
The researchers are also the proponents of the longganisa business and
at the same time they are partners to put up the needed capital. The
proponents or the researchers agreed to hire only one number of worker or
administrative personnel. They also agreed that they will participate in
the processing of making longganisa product. Cashier will be handled by
themselves. They also involved in the day-to-day of the business.

4.4 Organization Structure

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PARTNERS
CASHIER
LABORER
4.5 Manpower requirements

One of the partners will be designated as manager or head of the


longganisa proposed business. He makes the plan on policies of workers
selection and hiring requirements.
Table 4.5.1
Manpower requirements
Needed

Worker Educational

and Position

qualification

1 Labor

High
graduate

Duties

and Monthly salary

responsibilitie

s
school Helps

in

production
the product

the P 3,300.00
of

36

4.6 Compensation

The compensation that will be given to the workers of this longganisa


business is based on the minimum wages the region that is 283 pesos per
day.
Table 4.6.1
Schedule of Salary
Number of Workers

2016

2017

Monthly

Annual

Monthly

Annual

salary

salary

salary

salary

P3,300.00

P39,600.00

P3,300.00

P39,600.0
0

Table 4.6.2
Schedule of SSS Distribution
Number

2016

2017

of
Workers

Employer

Employee

Monthly

Annual

Monthly

Annual

Share

Share

Contribution

Contribution

Contribution

Contribution

P257.80

P127.20

P385.00

P4,620.00

P385.00

P4,620.00

Table 4.6.3

37

Schedule of Phil. Health Contribution


Number of

2016

Workers

2017

Monthly

Annual

Monthly

Annual

contributio

contributio

contributio

contributio

P100.00

P1,200.00

P100.00

P1,200.00

Table 4.6.4
Schedule of Pag-ibig Distribution
Number of

2016

2017

Workers

Monthly

Annual

Monthly

Annual

Contributio

Contributio

Contributio

Contributio

n
P100.00

n
P1,200.00

n
P100.00

n
P1,200.00

4.7 Organizational policies


4.7.1 Working hours
The workers will have an eight hour working time, from 7:00-12:00 NN
and

will

resume

at

Wednesday and Friday.

1:00PM-5:00PM,

three-times

week,

every

Monday,

38

4.7.2 Production attire


The workers are required to wear hairnet, gloves,

a clean apron,

closed-in shoes to protect feet, in case of hot spills or breakages, shoes


with slip-resistant soles, to prevent from slipping on hot spillages, etc.
4.7.3 Salary matters
The proponents decided to pay the worker monthly amounting P3,300.00.
4.7.4 Other benefits
The worker will receive a 13th month pay every year and will avail the
Phil Health and SSS.
4.7.5 Proper deportment in the workplace
The workers should go to work in time and wear their proper attire
especially

whenever

they

are

in

the

process

of

making

the

longganisa

product.
4.8 Legal requirements
The proposed business will secure government requirements to establish
this kind of longganisa business.
Table 4.8.1
License and clearance
Particular
Barangay clearance
Barangay business permit
Bureau
of
Internal
Revenue

Amount
P40.00
P200.00
P300.00

registration
Documentary stamp
Department
of

P30.00
P500.00

Trade

and

39

Industry certificate
Fire Permit
Health and Sanitary Permit
Mayors Permit
Police Clearance
Total Cost

P300.00
P200.00
P100.00
P50.00
P1,720.00

The licenses and clearances are legal requirements issued by the


government. These are necessary to secure before the actual business
operation.
Target
Activities
FS
Documentation
Sourcing of
founds
Looking for
plant Location
Renovation and
improvement of
plant
Acquisition and
improvement of
plant
Hiring of
Workers
Purchasing of
raw materials
Securing of
government
license and
clearance
Test run/trial
operation
Start of
operation

Nov 2015
Weeks
1 2
3
4

Year 2015 to Year 2016


Dec 2015
Jan 2016
Feb 2016
Weeks
Weeks
Weeks
1
2
3
4
1
2
3
4
1 2 3 4

Mar 2016
Weeks
1 2 3 4

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