NAME OF THE COMPANY

In our country, where pests are prominent, professional pest control

services are not thought about when it comes to this problem. Hence, in

developing an ideal name for the business, the proponents came up with

something that will catch the attention of the masses, will communicate the

nature of the business, and, at the same time, will help in promoting brand

recognition over time.

The proponents came up with the name “Pest in Peace”, a business

name that conveys its primary service, which are pest control services. The

company name includes the word “Pest”, which connotes a destructive insect

or other animals that can cause nuisance, inconvenience, and discomfort in

homes, as well as in businesses and other establishments. Further, “In

Peace” connotes the regulation or management of pests that the company will

provide competently and professionally to its clients; a service that is beyond

expectations and is committed to put every home and business completely in

peace and pest-free. Furthermore, the company name “Pest in Peace” is a

creative manipulation of the phrase “Rest in Peace”, a short idiomatic

expression wishing eternal rest and peace to someone who has died. In this

case, the company aims to grant peace of mind to its constituents as their

homes or establishments will become free from pest through the

extermination of different types of pests.

COMPANY LOGO

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 Figure 1.1. Company Logo

As the company logo illustrates a pest control professional using a pest

control sprayer on the left and different kinds of pests on the right, it makes

the company be easily identified as a business that will provide pest control

services. Also, the font used in the company logo establishes a peaceful yet

influential or powerful character through its harmonious letter curves, and its

bold and well-composed letter structures. The primary color used in the

company logo is the color yellow, a high-arousal color that stimulates

optimism and hope that, through pest control management, homes and

establishments will become pest-free. The bright color yellow also transmits

subliminal messages of power and authority, something that the company

certainly has over pests. Overall, the company logo highlights the dominance

of the pest control professional over many types of pests, an indication that

the company will be able to exterminate pests from small kinds like termites to

big quick rodents.

LOCATION OF THE BUSINESS

Pest in Peace is located at Stall #13, 2nd floor, Hermosa Arcade

Building, 3067 Molave St., Barangay 201, Tondo, Manila. Several factors

were considered in choosing the right and conducive location for the business

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which includes the following: (1) it is accessible because it is located near the

Jose Abad Santos LRT Station, and is situated along the main road. Also, it is

located on the 2nd floor of the building, making it easy to access; (2) the

commercial building is surrounded by residential units, commercial

establishments such as small-scale and large-scale restaurants and fast food

chains, educational institutions such as F.G. Calderon Integrated School and

Lapu-Lapu Elementary School, and medical institutions such as Amisola

Maternity Hospital and Fajardo Medical Clinic; all of which would be beneficial

to the business for they are its primary target market.

The cost of monthly rentals for the unit amounts to fifteen thousand

pesos (₱15,000.00). Installation of electricity, water, and security services are

provided by the Hermosa Arcade Building. The measurement of the entire

floor space is 50.25 square meters which the proponents decided suitable and

conducive for the business.

DESCRIPTION OF THE BUSINESS

Pests in domestic homes, commercial properties, and other

establishments are not only annoying, but can also cause structural damage

and health risk to humans. Some people handle pests in their own hands as it

seems like a fast, simple, and relatively inexpensive solution in getting rid of

pests. However, the truth is that pest management and control is not always

simple and fast and if mishandled, it can become a much larger, more

expensive issue and headache.

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 In the Philippines, urban areas continue to grow in number and size. As

human population become more and more concentrated in cities, there is also

an increase in food sources and conducive living habitats for different kinds of

pests like rodents, cockroaches, and mosquitoes. Due to this, there is a

strong demand for pest control products and services. As a matter of fact, the

Department of Health has reported a 25% increase (from 5,800 to 7,200) in

dengue cases in Metro Manila, and an increase of 356% in cases of

leptospirosis in the whole country, as of 2018.

The proponents plan to establish an accessible pest control service

business with the name Pest in Peace which aims to provide good-quality

pest management services to the residential units, businesses, and other

establishments situated within the 2nd Congressional District of Manila. Pest

in Peace also upholds the values of integrity, teamwork, and commitment to

work through building a friendly environment among its management and pest

control professionals and establishing a good and strong relationship with its

clients. The company’s operations will be done in conformity with governing

laws.

HIGHLIGHTS OF THE PROJECT

Pest in Peace presents an analysis of the mode of operation and

management, a definition of services it offers, address where and how it will

operate, competitions, identifying potential solutions to defined problem or

opportunity to be studied if the project is pursued, an evaluation of alternatives

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and an agreed upon course of action, and necessary funding needed to get

the business up and running. It will help to determine whether a development

project is technically feasible, cost-effective, and profitable. The primary goal

is to assess and prove the economic, legal and technical viability of the

business idea. Determining how to properly reach the target market is a vital

step in creating a viable business in any region. The location of the business

and how accessible to the target audience will also be a major factor.

Pest in Peace is strategically located at East Tondo (2nd

Congressional District of Manila). It is the largest in terms of area and

population of Manila, situated alongside rising commercial buildings, home of

numerous private and public schools, and where mostly businesses flourish.

After determining potential problems, and having brainstormed a

variety of potential solutions, the project team expands on each of these

potential solutions, providing sufficient detail, including very high-level costing

information, to recommend to the approving authority all of the viable potential

solutions that should be further analyzed. Under such circumstances, project

constraints, limitations of expenditure, and technological aspects, are among

the various factors that the project considered.

Overall, the study is conducted with an objective, unbiased approach to

provide information upon which decisions can be based.

MAJOR ASSUMPTIONS
1. Management Aspect

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a. It is assumed that Pest in Peace has been registered and

accredited by the following government institutions:

- Manila Bureau of Permits

- Manila Health Department

- Manila Barangay Bureau

- Securities and Exchange Commission (SEC)

- Bureau of Internal Revenue (BIR)

- Social Security System (SSS)

- Home Development Mutual fund (HDMF)

- Philippine Health Insurance (PhilHealth)

- Fertilizer and Pesticide Authority (FPA)

- Department of Labor and Employment (DOLE)

b. Vision and Mission Statements, and Objectives are based on the

services offered, environmental concern, customer care and social

responsibility.

c. The Internal Controls and employees’ Code of Conduct are

assumed to be relatively applicable to this type of business. These

are established based on researches and observations on different

resources, and are in line with the accounting standards and

principles.

d. Selection of number of office staff and pest control professionals

are based on interviews with individuals working in the same line of

business and on the survey conducted.

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 e. The number of hours and pest control professionals of each

package are chosen according to the size of the site/area to be

treated. Inclusions of each package are assumed to be sufficient to

provide superior service to client.

2. Marketing Aspect

a. The company assumed that they can provide satisfaction to

clients based on their needs and wants.

b. External factors, like opportunities and threats, affecting the

business are assumed to be completely identified.

c. It is assumed that the data gathered on the survey conducted

represent the opinion of the total population of the target market.

d. The company assumed their marketing strategies to be effective

in conveying its message and goal to the target market.

e. Residential units and different business establishments situated

within the eastern part of Tondo, the 2nd Congressional District

of Manila, are assumed to be the main target market of the

business.

f. Advertisements and promotions are assumed to be the key

factors on the increased popularity of the business.

g. There will be a successful website development while

maintaining strong relationship with clients.

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 h. Corporate Social Responsibility (CSR) activities to be conducted

are assumed to be beneficial on the success and popularity of

the company as years go by.

i. It is assumed that the company provides free awareness

seminar and one free service to any public place as a form of

Corporate Social Responsibility.

j. The price range of the services offered are assumed to be at

least P3,000.00 depending on the services acquired by the

customer.

k. It is assumed that there will be some expansions of the business

after 5 years.

l. It is assumed that before executing the pest control services per

client, there would be 45 minutes allocated time for

transportation and preparation.

m. The normal capacity of the business are assumed to be 65%,

70%, 75%, 80%, and 85% for the years 2019-2023.

3. Technical Aspect

a. The location of the company’s office is assumed to be very

accessible for the clients and not so far from the suppliers.

b. The office staff and pest control professionals are assumed to

be well-trained for their job.

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 c. It is assumed that the office supplies, office equipment, and pest

control equipment, tools, and solutions are sufficient in

conducting the company’s services.

d. It is assumed that there are enough suppliers for the equipment

and materials needed for the company’s services.

e. It is assumed that the useful lives of the office supplies, office

equipment, and pest control equipment and materials constitute

to their actual useful lives.

4. Financial Aspect

a. The financial statements made are assumed to be audited financial

statements.

b. The financial statements are prepared and presented in accordance

with Financial Reporting Standards Council (FRSC) Philippine

Accounting Standards (PAS)

c. Calendar year of accounting is to be used. Each accounting period

will start from January 1 to December 31 of the year. Each year will

be comprised of 365 days, 52 weeks, and 12 months.

d. The company maintains a petty cash fund amounting to

Php15,000.00

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e. Since the contractual agreements requires a 1-month deposit on

the initial treatment, the remaining portion of the contract service

price is assumed to be Accounts Receivable.

f. 100% of the customers’ security deposits is earned upon the

rendering of services as per the contract.

g. 80% of the Accounts Receivable is assumed to be collected in the

current year.

h. 5% ​of the ending Accounts Receivable is estimated to be Allowance

for Doubtful Accounts.

i. All purchases are inclusive of VAT.

j. Inventories are accounted using periodic method.

k. 70% of the total payments is assumed to be paid in the current

year.

l. Ending inventory for pest control supplies, pest control tools, and

office supplies is assumed to be 12%, 12% and 10% respectively of

Total Supplies Available for Use.

m. Purchases for supplies inventory will be affected by the average

inflation rate of 3.83%.

n. Field allowance for every trip will be given to the employees.

o. 13​th month bonus as part of employees benefit. In accordance with

Presidential Decree 851.

p. SSS, HDMF, PhilHealth, and EC Contribution of the employer will

be based on the rules provided by the concerned institution.

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q. VAT of 12% and income tax of 30% is used even if there are

provisions that will arise as regard in the changes in said tax rates.

r. Income tax is assumed to be paid the following month.

s. The company’s Cash in Bank— PSBank earns 0.05% interest

annually.

t. It is assumed that the company invests in Time Deposit (PSBank)

that generates interest of 4% per year.

u. Repairs and maintenance is assumed to be 5% of the total cost of

PPE. No repair and maintenance will be incurred in the first year of

operations.

v. Office Maintenance would be 10% of the total rent per year.

w. Fees and licenses shall be computed according to existing laws and

policies.

x. Electricity utility expense shall be accounted on a per item basis.

y. Advertising and utilities expense will be both affected by the

average inflation rate of 3.83%

z. Retirement fund is based on RA 7641 which states that retirement

pay is “equivalent to at least one half (½) month salary for every

year of service plus one-twelfth (1/12) of the 13​th month pay and the

cash equivalent of not more than 5 days service incentive leaves”.

aa. The salary of the company’s employees shall increase by 5% after

5 years, provided that the company achieves an increase in its net
income by at least 10%.

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