Format of a Business Plan

I.Project Identification

A. Name of the Business: Peanut Production

B. Business Location: Obo, San Miguel, Catanduanes
C. Name of the Proponent (s): JUAN BERNAL
D. Vision: Transform idle lands into a productive agricultural areas along the river
banks.
E. Business Objectives: - To augment the income of farmers at Obo, S.M.
- To have a readily available seeds for the following
cropping.

ll. Marketing Plan

A. Product Description
The proposed project will be established in a one (1) hectare lot, with a target
harvest produce of 2 tons of peanut seeds. The mode of selling is on a retail and
wholesale transaction.

B. Packaging
Packaging is done on 10 kilo/ sack and Labelling of sacks will be printed on a
square tag to be stapled in an individual sack.

C. Target Market

The product will be distributed by the Mr/ bernal through market outlets and
small manufacturer of peanut butter,

D. Terms of sale

The raw peanut seeds will be sold on a cash basis to retailers while on terms to
wholesaler on a 10 days payment scheme.

E. Price and Pricing

Price of peanut/bag on a retail basis will peg at Php350.00, and 10% discount for
every 20 bags purchased through a wholesale transaction.

F. Projected Sales:
Schedule 1. Projected Sales of Peanut

Harvesting Schedule Unit Selling

Qty Total Sales
Price
(kg) (P)
Area (P)
1 ha.
Harvesting 2000 30.00 60,000.00
Total 2000 60,000.00

lII. Technical Plan

A. Business Location:

The site of the enterprise will be located at Obo, San Miguel,

Catanduanes. It has a total area of one (1) hectare. The selected Farm
site is near the river bank.

B. Supplies and Land rentals:

The supplies to be used in the whole operation will be on a rental basis.

B. Technical Process

The technical production process includes site selection, procurements of

inputs, land preparation, planting and replanting, hilling up, weeding and
application of fertilizer, management and maintenance, harvesting,
classifying, drying and marketing.

D. Labor Requirement

Land Preparation:

a. Plowing 5 MAD@Php400.00/MAD = Php 2,000.00

b. Harrowing 3 MAD@Php400.00/MAD 1,200.00
c. Forrowing 2MAD@Php400.00/MAD 800.00
d. Planting 5MD@ 250.00/MD 1,250.00
e. Replanting 1MD@250.00/MD 250.00
f. Hilling-up 2MAD@400.00/MAD 800.00
g. Weeding 5MD@250.00/MD 1,250.00
h. Harvesting 15MD@200.00/MD 3,000.00
Php10,550.00
IV. MANAGEMENT PLAN

A. Form of Business Organization

Sole Proprietorship

B. Organizational Structure

Juan Bernal
(Proprietor)

Juan Bernal Jr
(Caretaker)

Hired Worker(Laborers)

1. Organizational Activities

Schedule 4. Calendar of Activities

Activities Date to be Implemented

Site Selection April 2, 2015
Land Preparation
Plowing May 15 to 16, 2015
Harrowing May 20 to 25, 2015
Farrowing June 1, 2015
Planting June 1, 2015
Replanting June 7, 2015
Side dressing June 24, 2015
Hilling up June 25, 2015
Weeding June 30, 2015
Harvesting October 20, 2015
 V. FINANCIAL PLAN

A. Capital Requirement)

Schedule 5. Capital Requirements

Total Capital Total Budgeted
Items
Requirement Requirement
(P) (P)
WORKING CAPITAL
Peanut Seeds (100kgs./ha.) 8,000.00 8,000.00
Fertilizer 2,400.00 2,400.00
Labor Fee 10,550.00 10,550.00
Management Fee 3,500.00 3,500.00
TOTAL WORKING CAPITAL 24,450.00 24,450.00

B. Source of Financing

These will be financed by the owners equity, Php14,000.00 of which will be loaned
from ARDCI @ 4% interest per month or an interest of Php2,240.00 for 4 months.

C. Projected Income Statement:

PEANUT PRODUCTION ENTERPRISE

Projected Income Statement
For the period ending October 31, 2015

ITEMS AMOUNT
REVENUE
Peanut sales (2,000kgs @ 30.00/kg) Php 60,000.00
TOTAL Php 60,000.00
Less Production Cost
Expenses- Seeds Php 8,000.00
Expenses- Fertilizer 2,400.00
Expenses- Labor Land Prep 10,550.00
Expenses- Labor Maintenance 3,500.00
TOTAL COST OF PRODUCTION Php24,450.00
NET INCOME BEFORE COST OF
BORROWING Php35,550.00
Less cost of borrowing
Interest Expense 2,240.00
TOTAL NET INCOME Php33,310.00
D. Profitability Analysis

Determine the return of the project using the formula:

Return On Costl (ROC) = 33,310.00 x 100

24,450.00
136.23%

E. Break Even Analysis

Determine the break-even price and break-even yield using the formula:

To compute for Break-Even Price:

Break Even Price = Php 24,450.00 + 8.15/kl.

2000kls

Php 20.38

To compute for Break-Even Price:

Contribution Margin = Php 30.00/kl. Php 12.22/kl.

Break Even Yield (kls.) = Php24,450.00

Php 17.78

1,375 kls.
 SITE SELECTION
Schedule 6.

PROCUREMENT OF
INPUTS

SEEDBED PREPARATION AND

MANAGEMENT

LAND PREPARATION
a. Clearing
b. Plowing
c. Harrowing
d. Furrowing

LAY-OUTING, PLANTING,
TRANSPLANTING AND
BASAL APPLICATION

MANAGEMENT AND
FERTILIZER MAINTENANCE
APPLICATION a. Control of pests and
a. Side dressing diseases
b. Irrigating
c. Weeding

HARVESTING

GRADING/CLASSIFYING

PACKAGING

MARKETING

Figure B. Technical Production Process

NET INCOME