CHAPTER 1

PROJECT SUMMARY

Introduction

Online sellers are now taking advantage of the fast,

advancing technology as their opportunity to connect with

their customers. Connection and negotiation will then be

followed by the claiming and payment of items which will

be done personally by both parties. This is when a

meeting hub becomes significant. Through a meeting hub,

the online sellers and their customers can complete their

transactions at a fine comfortable place which is

actually made for their convenience.

Business Name

The proponents decided to name the business as MUCHO

GUSTO. It is Spanish phrase which means “pleased to meet

you”. We decided to name the business as Mucho Gusto

since it is a place where people particularly, online

sellers and buyers, can meet up and transact for business

in a convenient way.
Business Logo

Mucho Gusto Logo

Business Location

The proposed business location will be at the 3rd

Floor of Laurente Bldg., J.C. Aquino Avenue, Butuan City.

The location is very strategic since it is convenient for

the target market; it is considered as the focal point

where transactions occur between the online sellers and

buyers. Furthermore, it is also known as the “downtown”

of Butuan City because people from Butuan City and even

those from other provinces or cities come and go

frequently.
Business Description

Mucho Gusto is a meeting hub made for customers who

wishes to meet for transactions. It will provide lockers

to online sellers that will enable them to deposit items

which will then be claimed by their customers. These

lockers will be charged according to their sizes and the

number of hours of deposits. Food stalls will also be

offered to interested sellers of foods and drinks. These

will also be charged accordingly per month.

Although the focus of this meeting hub is to

accommodate online sellers and buyers, other customers

are also welcome if they want to meet and stay in a

convenient and comfortable place. The price to avail the

rental services of Mucho Gusto is set at 12php per hour

for the tables and 20php for a medium-sized locker and

30php for a large-sized locker.

Vision

Our vision is to be the pioneering meeting hub

particularly for online sellers and buyers in Butuan City

and to extend our services beyond customer satisfaction

and demand in the whole Caraga Region.

 We want to help our customers carry out transactions

in an efficient and effective way by providing them

services at an adequate cost while achieving business

growth and sustainability.

Mission

"To provide a great online trading experience in a

convenient meeting hub."

We know how better it would feel to actually find a

common meeting hub aiding the increasing number of online

buyers and sellers since common fast food restaurants

notice meet-ups a quite loss on their behalf because not

all of these online sellers purchase their products but

only taking advantage of the accessibility of the place.

At Mucho Gusto, we give these customers the

accessibility and convenience they need to get their

trading done, plus the lovely vibe of the meeting hub.

They are given a number of 40 medium-sized lockers and 12

large-sized lockers, comfy tables and seats, and extra

fast WiFi. Other than that, we have food stalls offering

customers affordable great foods and beverages.

Furthermore, they can also ask our friendly staff to help

them out upon carrying bulk items and the like.

Feel free to make reservations and drop by! At just

Php 12php per hour, the customers can enjoy all the perks

we mentioned. Located at Laurente Bldg. (3rd Floor), J.C.

Aquino Avenue, Butuan City, and together let's get the

customers’ trading going.

Business Objectives

The Mucho Gusto’s main goal is to provide a proper

and comfortable meet up place for online sellers and

their customers. This place will offer lockers for rent

to deposit items that are to be claimed by customers.

Food stalls are also available to provide foods and

drinks while waiting. These food stalls will be rented by

food and drink sellers which will contribute to the

income of the business. Though the business’ target

customers are online sellers, it would still welcome

regular customers who wishes to meet and discuss in the

said place. Generally, Mucho Gusto’s goal is to be the

top meeting hub in Butuan City and finally have a

successful expansion.
Nature of the Industry

The proposed business offers rental services by

providing a place and a locker to customers in return for

a rental payment. It operates as a store-front facility

and maintains furniture and fixtures such as tables,

chairs and lockers that are rented for short periods of

time. It also offers food stalls to be rented by food and

beverages businesses.

Feasibility Criteria

The main reason that this study is feasible enough

is the fact that the number of online sellers in Butuan

City is rapidly increasing, with no proper place to meet

and transact with their customers. As of the moment, fast

food restaurants are the most accessible place for them

to operate their business causing inconvenience to the

restaurant and to the online sellers. For the fast food

restaurant, meetups caused crowdedness and majority of

these people do not purchase their products, but is only

present for delivering or claiming their items. Having

Mucho Gusto will give convenience to the online sellers,

their customers and the fast food restaurants. The

business would provide service and an appropriate venue

for meet ups. Though our main target are online sellers,

the business would still welcome other customers. Food

stalls for rent would also be provided for interested

sellers to provide foods and drinks for the customers.

The rents will be added to the business’ monthly income.

All transactions will be immediately paid in cash.

Another reason for it to be feasible is that, it is

recession proof. As long as there is technology that

enables people to connect globally and there are a lot of

people who find this global connection as an opportunity

to do business - online selling, Mucho Gusto will

probably grow and sustain its operation. Mucho Gusto, in

general, requires a minimal maintenance cost which

enables the business to gain more profit to use in future

improvements and expansion.

 CHAPTER 2

MARKET FEASIBILITY

This chapter provides the discussion about the

present market situation, market share, demand and supply

analysis, target market and its marketing plans and

strategies. This study determines the demand and chances

that the target market will have the favorable choices

offered and rendered to the public. It also determines

the importance of the market aspect in which the demand

and supply are analyzed thoroughly in order to design the

appropriate marketing strategies that will help ensure

that the proposed project will be feasible and accepted

by the target market.

Present Market Situation

 The basic and most significant factors that

influence the decision to establish a business is the

consideration of market demand, as of today Butuan City

has not yet iniatiated to create a place for the meet-ups

of online traders. The most usual places for meet-ups are

establishments located at the heart of the city – most of

it are fast food chains. However, these establishments

are not very welcoming with the existence of online

traders using their facilities without any order and most

of time being criticized for their long-day stay in the

same establishment.

In order to provide the needs of the market, the

proponents came to an idea of creating a “meeting hub”

for online traders. Although positioned as a place for

online traders, the hub is not limited for online sellers

and buyers alone. As hub offers foods and drinks of

different varieties coming from tenants of the stalls

installed as part of the business. To gain customer

loyalty, the owner should be open for improvement of

services and be able to create service promotions and

other iniativies like coupons and freebies in order to

patronize the services as well as the products of the

tenants being offered. The location of the meeting hub is

preferably at Laurente Bldg., J.C. Aquino Avenue, Butuan

City, which is adjacent to Jollibee Centro that is near

the McDonalds Downtown, which are two of usual of the

meeting places of this industry.

Sampling Method

Our target market were determined to be the online

sellers and buyers in Butuan City that are in need of a

focal place of gathering and doing business transactions.

In order to know the sampling size from the

population given to project the demand for the proposed

meeting hub, the proponents used the Slovin’s formula.

The population was based on the number of members of

PINAKABARATO DINHI SA BUTUAN Facebook Page which consists

of approximately 103,000 online sellers and buyers and a

margin of error of 5%. The sampling size identified was

399, as presented below.

Slovin’s Formula

n = N / (1 + N*e^2)

n = 103,000 / (1 + 103,000 * 5% ^ 2)

n = 399 respondents

Where:

n = Number of Respondents

N = Total Population

E = margin of error (0.05)

Demand Analysis

Online Sellers in Need of Meeting Hubs

0.12

Yes
No

0.88

The target market of Mucho Gusto are those Butuanons

who engaged in online trading – online sellers, online

buyers or both. The survey is conducted with the seller-

buyer ratio of 1 is to 6. Wherein 57 online sellers and

342 online buyers was separately asked by appriopriate

questions regarding the business.

Graph 2.1 Online Sellers in Need of Meeting Hubs

Based on the graph (Graph 2.1) shown above, out of

57 online sellers, 88% or 50 of them believed that they

are in need of their own meeting hub while 7 of them or

12% thinks otherwise.

 Online Buyers in Need of Meeting Hubs

0.09

Yes
No

0.91

Graph 2.2 Online Buyers in Need of Meeting Hubs

Based on the graph (Graph 2.2) shown above, out of

342 online buyers, 91% or 312 of them is in need of their

own meeting hub while 30 of these online buyers or about

9% that they do not need such.

After establishing the need of a meeting hub

prioritizing online traders, the frequency of the meet-

ups and preferred time is being asked. Which leads to the

following results:

Graph 2.3 and Graph 2.4 shows the frequency of the

availment of the services the entity offers. For online

sellers (Graph 2.3), out of 50, 31 of the online sellers

or 62% of them would avail the services of the business

at least twice or thrice a week, 32 online sellers or 26%

says they will avail at least once a week and 6 online

sellers or 12% says everyday.

For online buyers (Graph 2.4), out of 312, 176

buyers or roughly 56% are to visit and avail the services

of the business at least once a week. 38% of the sample

online buyers or 117 of them are to avail at least twice

or thrice a week and 19 of them or 6% says everyday.

Online Sellers' Frequency of

Service Availment

0.12

0.36
Everyday
Twice or Thrice a Week
Once a Week

0.62
 Gra
ph 2.3 Online Sellers’ Frequency of Service Availment

Online Buyers' Frequency of

Service Availment

0.06
Everyday
Twice or Thrice a Week
0.38
0.56 Once a Week
Graph 2.4 Online Buyers’ Frequency of Service Availment

Graph 2.5 shows that among the three choices –

Weekdays, Saturdays and Sundays, out of 50 online sellers

roughly 44% or 22 sellers preferred Saturdays as their

meet up day. Around 42% or 21 online sellers are in favor

of having meet-up transactions on weekdays while 14% or 7

of them wanted to have the same transaction on a Sunday.

Online Sellers' Preferred Day of Meet-ups

0.14

0.42 Weekdays
Saturday
0.44
Sunday
 Graph 2.5 Online Sellers’ Preferred Day of Meet-ups

In the online buyer’s perspective, Graph 2.5 shows

that among the three choices – Weekdays, Saturdays and

Sundays, out of 312 online sellers around 55% or 173 of

them preferred Saturdays as their meet-up day. Around 42%

or 130 online buyers are in favor of having meet-up

transactions on weekdays while 3% or 9 of them wanted to

have the same transaction on a Sunday.

Online Buyers' Preferred Day of Meet-ups

0.03

0.42 Weekdays
Saturday
0.55 Sunday

Graph 2.5 Online Buyers’ Preferred Day of Meet-ups

 Online Sellers and Online Buyers and
their Preferred Time of Transaction
200
180
160
140
120
100
80
60
40
20
0
9:00 AM - 12:00 NN 1:00 PM - 4:00 PM 4:00 PM - 7:00 PM 7:00 PM a nd Onwards
Onl i ne Sel l ers Onl i ne Buyers

After establishing the frequency and preferred day of

meet-up transactions for both perspective, the preferred

time of the day is being measured. Which leads to the

following results:

Graph 2.6 Online Sellers and Online Buyers and their

Preferred Time of Transaction

With the direct relationship of online sellers to

online buyers, it can be seen in Graph 2.6 above that out

50 sellers and 312 buyers, 32 sellers (64%) and 189

buyers (61%)choose to have their meet-up transaction at

1:00 PM to 4:00 PM. Second preferred time of the day for

both online sellers and buyers, with 15 (30%) and 72

(23%)votes respectively, is at 4:00 PM – 7:00 PM. For

online sellers, out of 50, both 9:00 AM – 12:00 NN and

7:00 PM onwards garnered 5 votes which is equal to 10%.

For online buyers, they tend to lean on a 9:00 AM – 12:00

NN transaction time than a 7:00 PM and onwards with 63

(20%) and 18 (6%) respectively.

Additional services offered by the business entity

is locker rentals. When both categories were asked

regarding the need of lockers, the following are the

results:

Online Sellers in Need of Lockers

0.06
Ye
s

0.94

Graph 2.7 Online Sellers in Need of Lockers

 Online Buyers in Need of Lockers

0.12

Ye
s

0.88

Graph 2.8 Online Sellers in Need of Lockers

Base on the graphs shown above, Graph 2.7 and Graph

2.8 depicts that both online sellers and online buyers

are in need of lockers for the depository purpose of

their traded items.

For online sellers, 47 out of 50 or 94% says they

need lockers for depository purposes while 3 of them or

6% says the opposite. In the other hand, 88% or 275 out

of 312 says they need the additional service while 12% or

37 online buyers says otherwise.

For this study, only the buyers were asked with

regards to the amount equitable as rental fee for the

lockers. It is assumed that buyers are the one to pay the

rental fee however it is at the discretion still of both

parties on who will pay the rental fee.

Online Buyers' Willingness to Pay 20Php per Medium-sized Locker

0.2

Ye
s

0.8

Graph 2.9 Online Buyers’ Willingness to Pay 20 Php

per Medium-sized Locker
Online Buyers' Willingness to Pay 30Php per Large-sized Locker

0.3
Ye
s
0.7

Graph 2.10 Online Buyers’ Willingness to Pay 30 Php

per Large-sized Locker

For the willingness to pay a certain amount relative

to the size of a locker, the researchers received a

favorable results. Base on Graph 2.9, it is said that 220

out of 275 or 80% of the online buyer respondents are

open to pay 20 Php for medium-sized lockers and 55 out of

275 or 20% think otherwise. For large-sized lockers, 192

out of 275 online buyers or roughly 70% said they are

open to pay 30 Php for large-sized lockers while the

remaining 83 online buyers or 30% of 275 answered the

opposite – as per Graph 2.10.

Another additional services offered for online

sellers is table renting. When asked at what amount they

would want to pay such fee, these are the results:

Online Sellers Preferred Amount for

Table Rental Fee

0.36 Below 20 Php per hour

20 Php - 50 Php per hour

0.6450 Php - 80 Php

Graph 2.11 Online Sellers’ Preferred Amount

for Table Rental Fee

As per Graph 2.11, it is shown that 18 out of 50 or

36% online sellers preferred to play 20 Php – 50 Php per

hour as their table rental fee. However, 32 out of 50 or

64% said While, not even one online seller answered 50

Php -80 Php as their preference.

 When the all of the left online trader respondents –

362 respondents composed of 50 online sellers and 312

online buyers, was asked if they would like to avail food

and drinks in the meeting hub, the results are shown in

Graph 2.12 and Graph 2.13 for sellers and buyers

respectively..

Online Sellers Interested in Having Food

and Drinks in the Hub
0.12

Yes
No

0.88

Graph 2.12 Online Sellers Interested in Having

Food and Drinks in the Hub

Graph 2.12 shows that 88% of the sellers said they

would like to buy food and drinks in the meeting hub

which will equate to 44 votes in contrast of 12% or 6

online sellers who says no.

 Online Buyers Interested in Having Food
and Drinks in the Hub

0.03

Yes
No

0.97

Graph 2.13 Online Buyers Interested in Having

Food and Drinks in the Hub

In the online buyers perspective, out of 312 online

buyers, 303 online buyers or 97% of them wanted to avail

foods and drinks in the hub while roughly 3% or 9 says

the opposite.
 When the all of the left online trader respondents –

362 respondents composed of 50 online sellers and 312

online buyers, was asked where is the best location for

the meeting hub, the results are shown in Graph 2.14 and

Graph 2.15 for sellers and buyers respectively.

Online Sellers' Preference for the Meeting Hub's Location

35

30

25

20

15

10

0
Downtown Butuan Wi thi n Mal l s Near School s Near Brgy. Libertad
Onl i ne Buyers Col umn1

Graph 2.14 Online Sellers’ Preferemce for the

Meeting Hub’s Location

Graph 2.14 shows that 33 online sellers out of 50 or

66% of them wanted to locate the meeting hub at the

downtown of the city, both within Malls and Near Schools

got 7 out of 50 online sellers’ preference or 14%, while

3 out of 50 online sellers wanted the meeting hub to be

near Brgy. Libertad.

Graph 2.15, for buyers perspective, 256 out of 312

or 82% said they wanted the meeting hub to be located at

the downtown of Butuan. In the other hand, 34 of 312 or

11% wanted the hub to be near the school. Near Guingona

Park is also a choice by our online buyers having

garnered 10 out 312 votes or about 3%. While locating the

meeting hub near the mall or near the client’s house both

received 6 out of 312 or roughly 2%.

Online Buyers' Preference for the Meeting Hub's Location

300

250

200

150

100

50

0
n ls ol
s e rk
ua al us Pa
Bu
t M ho Ho na
n in Sc 's o
ow i th ar nt i ng
nt W Ne lie Gu
w rC ar
Do a
Ne Ne

Onl i ne Sel l ers Col umn1

Graph 2.15 Online Buyers’ Preference for the

Meeting Hub’s Location
Marketing Plans and Strategies

Mucho Gusto’s strategy will be based on

communicating Mucho Gusto’s value to the target market.

This will be done through a variety of methods. The first

method will be strategically distributed advertisements.

The distribution of advertisements will be done in

schools near Downtown, Butuan City, and in Robinson’s

Mall Butuan and Gaisano Mall Butuan. Also, the benefit of

choosing an Internet marketplace to introduce the

business would be through social media sites like

creating a Facebook Page and joining in some of the

common and popular facebook online trading pages in

Butuan City. This will be the main source of

advertisements because the demographics of these online

buyers and sellers are in resemblance to Mucho Gusto’s

mission and vision statement.

The other form of advertising will be using

"grassroots" methods where customers will be given

coupons for their co-online sellers and buyers to visit

Mucho Gusto and promote the latter for the customer’s

next transactions to be done at the place. The coupon

will be an economic incentive for the market to consider

the hub and it also has the added force of a referral

from a friend.

Marketing Objectives

• Develop brand awareness through a steady, month to

month increase of new customers.

• Develop an increase in sales while achieving a

status quo state or decrease in marketing expenses.

• Develop awareness of the structured exchange system

measured by customers coming to the Mucho Gusto solely

for meet-ups and further help them in their trading

transactions.
 CHAPTER 3

MANAGEMENT FEASIBILITY

This chapter indicates how important to apply good

management which is the foundation of every successful

operation in the business. This will enable the business

to set ethical standards in order to run smoothly so that

everything will go well. It is also important to have

human resources to hire qualified and experienced

personnel which will run the whole system function.

Form of Ownership

The proponents would like to recommend the form of

ownership of the proposed project as a partnership;

General Partnership.
 The proponents choose to form the business under

partnership type of the business organization as they see

it fit considering the nature and capital requirement of

the project.

Policies and House Rules

Policies:

Every employee must adhere with the following policies,

otherwise they are not permitted to come to work.

1.) Every employee must wear the prescribed uniform.

2.) Every employee must wear ID.

House Rules:

1.) Employees must be vigilant to the concerns of every

customer.

2.) Employees must avoid gossiping during work time.

3.) Every employee is accountable to the lost thing

deposited to them.

4.) Staff must arrive 30 minutes before the designated

time at the store to clean the place.

Organizational Structure
 Partners

Store Manager

Staff
Job Title and Descriptions
Security Guard

Manager – He/she is in-charge of the overall supervisions

of the business.

• Screens the applicants to be recruited and hired

• Gives salary or wages to employees

• Supervises the work of all employees

• Is in the day-to-day operation of the business to

monitor employees

• The one who reports employee concerns

Staff – They are responsible for entertaining the

respective customers’ concern.

• To check and clean every customer’s locker

• May stand as a cashier as well

Security Guard - They are responsible for maintaining the

safety and security of the environment for customers and

employees by patrolling and monitoring premises and

personnel.
 • Secures premises and personnel by patrolling

property; monitoring surveillance equipment;

inspecting buildings, equipment, and access points;

permitting entry.

• Obtains help by sounding alarms.

• Prevents losses and damage by reporting

irregularities; informing violators of policy and

procedures; restraining trespassers.

• Maintains environment by monitoring and setting

building and equipment controls.

• Maintains organization's stability and reputation by

complying with legal requirements.

• Ensures operation of equipment by completing

preventive maintenance requirements; following

manufacturer's instructions; troubleshooting

malfunctions; calling for repairs; evaluating new

equipment and techniques.

• Contributes to team effort by accomplishing related

results as needed.

Job Qualifications

Store Manager
 • Male/Female

• 20 to 45 years old

• Must be a graduate of a College Degree

business related courses

• At least 2 years working experience

Staff

• Preferably female

• At least high school graduate

• 20 t0 30 years old

• Has good communication skill

Security Guard

• Preferably male

• Must be physically and mentally fit

• At least high school graduate

• 18 to 50 years old

• Has undergone pre-licensing training course

Salaries and Benefits

This section provides the salary of the employees of

Mucho Gusto. The table below indicates the amount of

salary that workers can receive in a daily basis and in a

Philippine Peso Currency.

 No. of Monthly
Position Employee Salary Benefits
Store Manager 1 7,000.00 SSS, PhilHealth, Pag-IBIG

Staff 1 7,000.00 SSS, PhilHealth, Pag-IBIG

Security Guard 1 7,000.00 SSS, PhilHealth, Pag-IBIG

Schedule of Operations

Working Days Working Hours Activity

8:00 am – 9:00 am Preparation of the

store
9:00 am – 12:00 am Start of operation
Monday to Sunday 12:00 am – 1:00 pm Lunch Break
1:00 pm – 8:00 pm Continue of

Operation

Schedules of Employees

Schedule
Monday to Sunday
Store Manager
Staff
Security Guard

The store manager, staff and security guard will be

present every day, 12 hours a day.

Legality of Operation

Step 1:

• Register the business name at Department of Trade

and Industry (DTI)

• Come-up with three (3) business names

• Search in the DTI’s website if there’s an existing

name similar to yours

• If the business name is available, fill-up Business

Name (BN) Application Form.

• Submit your complete BN application form to the

DTI’s office.

• Wait for the DTI Certificate of Registration.

• Visit Securities and Exchange Commission (SEC)

Provincial Office

Requirements:

• Accomplished Business Name Registration

Form (Partnership)

• Tax Identification Number

Step 2:

• Business Permit

Requirements:

• Mayor’s Permit from the Local Municipality

where the business is located (Validity: 1

year)

• Accomplished Business Permit Application

Form

• Business Sticker and Business Permit

Registration Plate

• Sketch of the business location

• Fire Safety Inspection Clearance

• Sanitary Permit and Sanitary Inspection

Fee

• Health Certificate Fee

• Garbage Fee

• Certificate Fee

• Initial Business Permit Fee

• Other Tax on Business

• Barangay Clearance

• Lease Contract

• 2pcs. 2x2 colored ID picture

 • Registration fee, the amount of which

depends on the type of the business

Step 3:

• Tax Identification Number (TIN) from Bureau of

Internal Revenue (BIR) National Office

Requirements:

• Annual registration fee Php500.00

• Certificate of Registration from DTI

• Barangay Clearance

• Mayor’s Business Permit

• Proof of Food Truck Ownership

• Valid IDS if applicable

• Registration of Books of Accounts and

Receipts/Invoices

Step 4:

• Social Security System (SSS) Certificate from SSS

Loans and Investment Office

Requirements:

• Accomplished R1 form

• DTI Business Permit

 • Mayor’s Permit

Step 5:

• PhilHealth Registration for Private Sector

• Submit the following at any PhilHealth Office:

• Employer Data Record or ERI Form (in duplicate)

• Business permit/license to operate and/or any

of the following:

• Partnerships and corporations

• Securities and Exchange Commission (SEC)

Registration

• After processing, the employer will be issued the

following:

• PhilHealth Employer Number (PEN) and the

Certificate of Registration

• PhilHealth Identification Number (PIN) and

Member Data Record (MDR) of registered

employees

• Employers are required to display the Certificate of

Registration in conspicuous area of their offices.

Step 6:
 • Business (employer) registration with Pag-IBIG

Step 1:

• Go to nearest Pag-IBIG NCR/Regional Branch or

any extension/service office/field service

center.

• For NCR/Regional Branch, proceed to the

marketing and Enforcement Division servicing

counter. For extension/service office/field

service center, proceed to the information

counter.

Note: If verified as registered and membership

record is updated, end of transaction. If not,

proceed to step 2.

Step 2:

• Secure Employer’s Data Form (EDF, 2 copies).

• Accomplish and submit duly accomplished EDF

together with required supporting documents.

The Pag-IBIG Employer ID Number shall be issued as soon

as available.

Requirements:

• Employer’s Data Form\

 • Specimen Signature Form

• Valid ID

• SSS Certificate (if already registered with

SSS)

• Certified Trues Copy of Proof of Business

Existence

Step 7:

• Department of Labor and Employment (DOLE)

registration (with 3 or more employees)

Requirements:

• Accomplished Rule 1020 form

• Lay-out business location

• Vicinity Map

Registration of Partnership

Basic Requirements

• Name Verification Slip

• Articles of Partnership; and

• Joint affidavit of two partners undertaking to

change partnership name, provided in its Articles of

Partnership or as amended thereafter, immediately

 upon receipt of notice of directive from the SEC

that another corporation, partnerships, or person

has acquired a prior right to the use of that name

or that name has been declared misleading,

deceptive, confusingly, similar to a registered

name, or contrary to public morals, good customs, or

public policy (not required if Articles of

Partnership has provision on this commitment).

Additional Requirements:

• Endorsement/clearance from other government

agencies, if applicable

• For partnership with foreign partners

• SEC Form no. F-105

• Bank certificate on the capital contribution of

the partners

• For foreign partners who want to register their

investments with the BSP: Proof of remittance

Note: If it is a limited partnership, the word Limited or

Ltd should be added to the partnership name. Articles of

Partnership of limited partnerships should be under oath

only (Jurat) and not acknowledged before a notary public.

CHAPTER 4

TECHNICAL FEASIBILITY

This chapter presents the analysis of business

location where the operation will be conducted,

description of the building with regards to its

technicalities, furnitures and fixtures that will embody

the Meeting Hub, machinery and equipment that will be

utilized throughout the lifespan of the proposed

business. It will show the factors that makes the

technical aspect feasible.

Location

The store of Mucho Gusto will be located in Laurente

Bldg., JC Aquino Avenue, Butuan City - 3rd floor. This

location has a lot of advantages because of its proximity

to the target market, the online sellers and buyers.

 Location Map of Mucho Gusto

Building

The site will be accessible to most of the target

market which are the online sellers and buyers. The type

and cost of the building as envisioned in the project are

presented. The renovation cost of the building and

facilities are presented adaptable to the machineries and

equipment that will be used in the project.

Rent and Leasehold Improvement

The rent, per lease agreement, will be Php 20,000.00

per month, with a stipulation of two months advance and

one month deposit. Thus, to initiate the business, the

management needs Php 60,000.00 for the rent. The

computation for leasehold improvement which is agreed by

the lessor and lessee for the proposed meeting hub is

shown below.

Description of Jobs Estimated Cost

Fabrication and Installation of Furnitures PhP 161,710.00

and Fixtures which includes the following:

• Food Stalls

• Counter Table

• Locker

• Chairs and Table Set

• Signage

• Flooring and Ceiling

Labor Cost - 30% of the cost of PhP 48,513.00

fabrication (161,710*30%)
Airconditioner Php 68,695.00
Leasehold Improvements:
Electrical Works PhP 5,000.00
Painting (materials and labor) PhP 8,000.00
TOTAL COST OF RENT AND LEASEHOLD PhP 291,918.00

IMPROVEMENTS

The fabrication and installation of food stalls,

counter table, locker, chairs and table set, and ceiling

are not physical assets, as commonly perceived as

furniture and fixtures which is subject to depreciation.

Space Layout
 Floor Plan Layout

Front Elevation

Operating Procedures

The operating process indicates the steps on how the

online sellers and buyers avail the rental services of

Mucho Gusto.
Mucho Gusto perating Process
 The process will start by the inquiry of the seller

at the counter, seller will then fill up a form

containing basic information such as name and shop name

for sellers. After filling the form, she will then choose

a table where she will wait and transact for her

customers. If the customer arrived proceed to process 5-A

and 6-A, the giving of ordered items to the buyer and

payment for the seller. After the customer and seller

transaction, the seller can then proceed to the counter

for paying the table charged, she will be given a receipt

and can now exit. However, if the seller needs to go but

her customer has still not arrived, she can proceed to

process 5-B, rent a locker and deposit her unclaimed

items. Next would be giving information about the buyer

and specification of the deposited item to make sure that

the counter will give it to the right item to the right

person. After providing sufficient information, the

seller can pay for the table charged and she will receive

an official receipt in return. The deposited items will

then be pending, until a valid person claims them. In

order to claim the items, the person has to provide i.d’s

or any valid documents and state the specification of the

deposited items. If the buyer failed to provide such

information, the items will remain in the locker, but if

the buyer provided complete and sufficient proof then

she/he will proceed. If the deposited items are still

unpaid, the buyer has to pay for it and will receive a

receipt issued by the seller. If the deposited items are

already paid then proceed to process 12, receiving of

items and receipt. Finally, the buyer can now pay for the

locker used and will be issued an official receipt then

exit. Last process will be the claiming of the payment of

the deposited items by the seller and exit.

Mucho Gusto’s Customer Fill-Up Form

Materials and Equipment

Item Description
FIRE EXTINGUISHER
Red Cylinder Portable Type
A.B.C. Dry Chemical
10lbs and 05lbs capacity

Price: Php 3,000.00

Life Expectancy: 1 year

WIPER

Price: Php 30.00 (3 pcs @ Php 10.00)

FLOOR MOP

Price: Php 245.00

Life Expectancy: 2 years
 PLANT IN POT

Price: Php 600.00 (4 pcs @ Php

150.00)

PLASTIC BROOM

Price: Php 60.00 (2 pcs @ 30.00)

Life Expectancy: 1 year

DUST PAN

Price: Php 29.75

Life Expectancy: 1 year

RECORD BOOK
Valiant Brand (300 Pages)

Price: Php 60.00

 CALCULATOR
Casio Wide Pad

Price: Php 620.00

Life Expectancy: 5 years

POLO SHIRT

Price: Php 870.00 (6 pcs @ Php

145.00)

RUG

Price: Php 45.00 (3 pcs @ Php

15.00 )

TRASH CAN

Price: Php 165.00 (3 pcs @ Php

55.00)

BALLPEN
HBW 2000 Ball Point

Price: Php 238.00

Life Expectancy: 5 years
 OFFICIAL RECEIPT PAD

Price: Php 21.00 (3 pads @ Php 7.00)

EMERGENCY LIGHT
OMNI Automatic Emergency Light
AEL-3038

Price: Php 1,500.00

Life Expectancy: 5 years

AIRCONDITIONER
Koppel Brand - KFM 36E2
Floor Mounted Aircon

Price: Php 68,695.00

Life Expectancy: 8 year
 CHAPTER 5

FINANCIAL FEASIBILITY

This Chapter discusses the financial aspects of the

proposed business and determines whether the proposed

business will be profitable and sustainable through the

long-run as a pioneering meeting hub in the city. It also

includes the total project cost, accounting assumptions

and the five years financial statement.

Assumptions:
Year 1 50% of the lockers will be occupied.
40*.5 = 20 12*.5 = 6
Year 2 60% of the lockers will be occupied.
40*.6 = 24 12*.6 = 7
Year 3 70% of the lockers will be occupied.
40*.7 = 28 12*.7 = 8
Year 4 80% of the lockers will be occupied.
40*.8 = 32 12*.8 = 10
Year 5 95% of the lockers will be occupied.
40*.95 = 38 12*.95 = 11
 Projected Cost
Monthly Annually
Utilities 50388
Internet 1499 17988
Electricity 2700 32400
Rent Expense 20000 240000 240000
Salaries and
wages 280555.2

Salaries 3 6,468.20 19,404.60 232855.2

SSS
Contributio
n 3 770.00 2,310.00 27720
Philhealth
Contributio
n 3 275.00 825.00 9900
Pag-ibig
contributio
n 3 280.00 840.00 10080
Taxes and
Licenses 10,700.00
DTI 1,500.00

BIR
600.00 7,200.00
Bus. Name &
Permit
Registratio
n 2,000.00
Advertising
Expense 800 800

Repairs and 27,504.0

Maintenance 0 27504
Quantity Cost/unit Total
 Amount
Office
Supplies 939
Record Book 1 60 60
Official
Receipt 3 7 21
Pen 1 238 238
Calculator 1 620 620
Fire
Extinguisher 1 3000 3000 3000
Cleaning Set Broom 2 30 60 514.75
Dustpan 1 29.75 29.75
Wiper
(Trapo) 3 10 30
Rug 3 15 45
Trashcan 3 55 165
Floor Mop 1 245 245
Accessories/D
écor 2100
Plants in
pot 4 150 600
Emergency
Light 1 1500 1500
Employee 2 Polo
Uniform Shirt each 6 145 870 870
Employee I.D 3 95 285 285

Improvement
Cost 291918

₱
TOTAL ESTIMATED CAPITAL 909,573.95
 MUCHO GUSTO
Income Statement
Computation of Rent
Revenue
Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Current Year
( medium Locker) 6,000 7,200 8,400 9,600 11,400

large locker 1,800 2,160 2,520 2,880 3,420

Rent/Medium Locker 20 23 26 30 35

Rent/large locker 30 35 40 46 52
Rent Revenue (Medium
Locker) 120,000 165,600 222,180 292,008 398,773
Rent Revenue (Large
Locker) 54,000 74,520 99,981 131,404 179,448

Total (locker) 174,000 240,120 322,161 423,412 578,221

Current Year (table) 19,200 21,600 24,000 26,400 26,400

12% of previous
year's rent/table 2 2 2 3
Current year's
rent/table 12 14 16 18 21

Total (table) 230,400 298,080 380,880 481,813 554,085

Stall Rent 54,000 54,000 56,700 59,535 62,512

5% of previous year 2,700 2,835 2,977 3,126

Total (Stall) 54,000 56,700 59,535 62,512 65,637

Total Rent Revenue 458,400 594,900 762,576 967,737 1,197,944

Less: operating &
administrative exp.

Legal fees
3,500 2,800 2,800 2,800 2,800

Salaries
19,405 19,405 19,405 19,405 19,405
Employee Benefits
3,975 3,975 3,975 3,975 3,975

Equipment - Aircon
68,695 - - - -

Depreciation-aircon
8,587 8,587 8,587 8,587 8,587
Equipment -
furnutures and
fixtures 210,223 - - - -

Depreciation-f&f
21,022 21,022 21,022 21,022 21,022

Rent Expense
240,000 240,000 240,000 240,000 240,000

Utilities
50,388 - - - -
Repair and
maintenance 27,504 35,694 45,755 58,064 71,877

Advertising Expense
2,292 2,975 3,813 4,839 5,990
Leashold
Improvements 13,000
Other Expenses
Office
Supplies 939 81 81 81 81
Fire
Extinguisher 3,000 3,000 3,000 3,000 3,000

Cleaning Set 165 575 165 575

Accessories/Décor 2,100 - - - -
Employee
Uniform 870 870 870 870 870

Employee I.d 285 285 285 285 285

Total Expenses 616,566 279,640 290,949 303,874 319,248

(158,166
Income before Tax ) 315,260 471,627 663,862 878,696

32 % Tax (50,613) 100,883 150,921 212,436 281,183

NET INCOME
(107,553 214,377 320,707 451,426 597,514
)
 Year 1 Year 2 Year 3 Year 4 Year 5

Return
-
on ____Profit 214,377. 320,706. 451,426. 597,513.
107,55
Investm _____ 02 62 50 59
3.17
ent
Total 586,51 1,065,63 1,288,20 1,641,09 2,140,47
Assets 5.76 2.78 6.80 0.70 1.68

-
0.2012 0.2490 0.2751 0.2792
0.1834

Return -
____ 214,377. 320,706. 451,426. 597,513.
on 107,55
Profit____ 02 62 50 59
Equity 3.17
586,51 964,749. 1,137,28 1,428,65 1,859,28
Equity
5.76 47 6.03 4.70 8.82

-
0.2222 0.2820 0.3160 0.3214
0.1834

Net _____Profi - 214,377. 320,706. 451,426. 597,513.

Profit 107,55
t____ 02 62 50 59
Margin 3.17
458,40 594,900. 762,576. 967,736. 1,197,94
Net Sales
0.00 00 00 55 3.98

-
0.3604 0.4206 0.4665 0.4988
0.2346

Current _Current 337,20 845,933. 1,098,11 1,480,60 2,009,59

Ratio Asset__ 6.93 13 6.32 9.40 9.56
Current 100,883. 150,920. 212,436. 281,182.
0.00
Liability 30 76 00 86

0.0000 8.3853 7.2761 6.9697 7.1469

CHAPTER 6

SOCIO-ECONOMIC AND ENVIRONMENTAL FEASIBILITY

The chapter focuses on the socio-economic benefits

of the proposed business to the community of Butuan City

particularly the online sellers and buyers, and its

contribution to the local government. This includes how

the funds are collected by the government from the

businesses allocated to the society. Moreover, the

chapter shows the impact of the business to the

environment.

Benefits to the Online Sellers

Selling products or services online can greatly

expand the locality’s businesses. The benefits of

choosing an Internet marketplace as opposed to a

traditional storefront are extensive, however, the

problem for most of these online sellers in Butuan City

find it difficult to establish their own boutique and let

their buyers have quick accessibility to their selected

products. Even common fast food restaurants notice meet-

ups a quite loss since not all of these online sellers

purchase their products but only taking advantage of the

accessibility of the place. Hence, Mucho Gusto provides

them the solution to that nuisance wherein they get to

reach out their regulars exclusively without giving cost

to the proposed business and they won’t get tired of

waiting as Mucho Gusto offers not just the meeting

location but also other services such as affordable foods

and beverages. Also, lockers are available for rent to

deposit items that are to be claimed by online sellers

respective customers. The business gives the online

sellers in Butuan City the actual marketplace and avenue

for more localities to venture in online retailing.

Benefits to the Online Buyers

The Internet has revolutionized the way consumers

shop. Because of the numerous advantages and benefits,

more and more people in these days prefer buying things

online over the conventional method of going into stores.

Nevertheless, as much as the sellers find it difficult to

reach to their customers, the latter suffers the same.

Mucho Gusto offers them the benefit of no longer waiting

for their selected items elsewhere, but to a comfortable

and reachable meet up place where they get to come across

more of their co-avid online buyers, well dine and have

the discourse of gaining new and wise shopping options.

Benefits to the Local Government

The Mucho Gusto doesn’t limit its benefits to

particular online sellers and buyers but rather it

contributes an opportunity of employment and

encouragement for more localities in Butuan City to

venture into this growing industry. Subsequently, giving

Butuan City the exclusivity of having the proposed

business as a focal place of gathering the increasing

number of online buyers and sellers within the city and

even in CARAGA region. Thus, attracting expansion in

endorsing the city’s tourist fascinations and other

famous sites to look up to in the locality. Also, this

proposed business is expected to give a great

contribution to the government in the form of taxes. The

tax payment from the business would help the localities

as well as the economy in its future projects especially

for people that will benefit. This would help the

community to live more sprightly.

Environmental Impact

The relationship between establishing the Mucho

Gusto and how it can influence the environment in terms

of keeping the harmony between the people and the

ecosystem.

As it is located in Laurente Bldg., JC Aquino

Avenue, Butuan City - 3rd floor, one of the proposed

business’ objectives is to uphold sustainability upon its

probable continuing operations. The establishment Mucho

Gusto won’t cause any harm to the environment since its

abiding laws and business policies are in line of keeping

the entirety of the area neat, clean and well-situated

for both the employees and customers.

CHAPTER 8

CONCLUSION

The feasibility study was conducted on the online

sellers and online buyers in Butuan City based on the

members of “Pinakabarato Dinhi sa Butuan’s” Facebook

Page. The proposed business, meeting hub, to be named as

“Mucho Gusto” which offers rental services such as

tables, lockers and food stalls to customers per trading

transactions. The customers can avail such services: (1)

tables at a reasonable price of Php 12.00 per hour, (2)

medium-sized lockers at Php 20.00, (3) large-sized

lockers at Php 30.00, and (4) food stalls at Php 4,500

per month.

After thorough analysis of the market, management,

technical, financial, socio-economic and environmental

aspects of the proposed business, the proponents believed

that Mucho Gusto is feasible. On the basis of the

findings, the following conclusions were drawn:

Market Feasibility

Our target market were determined to be the online

sellers and buyers in Butuan City that are in need of a

focal place of gathering and doing business transactions,

Mucho Gusto is feasible since based on the proponents’

findings with the conducted survey the seller-buyer ratio

of 1 is to 6 wherein 57 online sellers and 342 online

buyers was separately asked by appriopriate questions

regarding the business and 88% or 50 of the online

sellers believed that they are in need of their own

meeting hub while 7 of them or 12% thinks otherwise. And

out of 342 online buyers, 91% or 312 of them is in need

of their own meeting hub while 30 of these online buyers

or about 9% that they do not need such. Subsequently,

with these primary results the following preceding

question surveys with prior answers and results were all

positive upbringing the market feasibility to Mucho

Gusto’s proposed establishment.

Management Feasibility

It is of importance for the entity to enumerate and

comply requirements before establishing the proposed

business. And to apply good management which is the

foundation of every successful operation in the business.

Mucho Gusto, after comlying to its legal requirements and

business policy and strategies will enable the business

to set ethical standards in order to run smoothly so that

everything will go well. It is also important that the

business have human resources to hire qualified and

experienced personnel which will run the whole system

function.
Technical Feasibility

Mucho Gusto presents the analysis of it business

location at Bldg., JC Aquino Avenue, Butuan City - 3rd

floor. This location has a lot of advantages because of

its proximity to the target market, the online sellers

and buyers. The site will be accessible to most of the

target market which are the online sellers and buyers.

The type and cost of the building as envisioned in the

project are properly presented. The renovation cost of

the building and facilities are presented adaptable to

the machineries and equipment that will be used in the

project. The rent, per lease agreement, will be Php

20,000.00 per month, with a stipulation of two months

advance and one month deposit. Thus, to initiate the

business, the management needs Php 60,000.00 for the

rent. The computation for leasehold description of the

building with regards to its technicalities, furnitures

and fixtures that will embody the Meeting Hub, machinery

and equipment that will be utilized throughout the

lifespan of the proposed business. Hence, after thorough

analysis of the proposed business’ technical aspect, the

proponents concluded that it is feasible considering

enough material and cost to cater the future

profitability and increasing demand of the online trading

industry.

Financial Feasibility

Since Mucho Gusto is first of its line of

business to cater the increasing demand of finding a

common location for the growing number of online buyers

and sellers, the proposed business will be profitable

within the estimated 5-year range. However, in its first

year of operations, it is assumed that the latter incurs

loss due to the fact that the proposed business is still

encouraging fast growth of customers upon starting up its

line of business. Rest assured, that Mucho Gusto will be

sustainable through the long-run as a pioneering meeting

hub in the city.

Socio-economic and Environmental Feasibility

The socio-economic feasibility of the proposed

business - Mucho Gusto - to the community of Butuan City

particularly the online sellers and buyers, its

contribution to the local government and and how it can

influence the environment.

Mucho Gusto provides the online sellers the solution

to the hassle of finding a common meeting place wherein

they get to reach out their regulars exclusively without

giving cost to the proposed business and they won’t get

tired of waiting as Mucho Gusto offers not just the

meeting location but also other services such as

affordable foods and beverages. Also, lockers are

available for rent to deposit items that are to be

claimed by online sellers respective customers.

Mucho Gusto offers them the benefit of no longer

waiting for their selected items elsewhere, but to a

comfortable and reachable meet up place where they get to

come across more of their co-avid online buyers, well

dine and have the discourse of gaining new and wise

shopping options.

The Mucho Gusto gives Butuan City the exclusivity of

having the proposed business as a focal place of

gathering the increasing number of online buyers and

sellers within the city and even in CARAGA region. Also,

this proposed business is expected to give a great

contribution to the government in the form of taxes.

The establishment Mucho Gusto won’t cause any harm to

the environment since its abiding laws and business

policies are in line of keeping the entirety of the area

neat, clean and well-situated for both the employees and

customers.