DIY CAFÉ

Business Plan

Presented to
MA’AM NATIVIDAD, MARIA VICTORIA

MEMBERS:

ARONZA, REDEN BALANAG, RUBY

BATUNGBACAL, RYAN BALMEO, LESLIE ALYSSA

PALAGANAS, BENJAMIN CABILAS, IVY JUNE

SALVA, JORYLE KYSEM

 ACKNOWLEGMENT

We would like to thank firstly our instructor Ma’am Maria Victoria

Natividad who gave us this project on the topic of making a Business
Plan, which help us in our field of specialization.

Secondly our team, who work with this business plan to present that we
worked hard finalize this project in order for us to complete our final
requirement for the subject.

Lastly, for the people who assisted us to make this project. We thank you
for all the help they have given.
 TABLE OF CONTENTS

I. INTRO DUCTION……………………………………………

II. MARKET PLAN………………………………………………

III. TECHNICAL PLAN…………………………………………..

IV. OPERATIONAL PLAN……………………………………….

V. FINANCIAL
PLAN…………………………………………………………...

VI. CONCLUSION…………………………………………………

VII. FUTURE PLAN…………………………………………………

List of Tables

Table 1: Target Market

Table 2: Equipment

Table 3: Raw Materials

Table 4: List of Suppliers

Table 5: Employee Salaries

Table 6: Capital Requirements

Table 7: Pre-Operating Cash Flow

Table 8: Expenses

Table 9: Income Statement

Table 10: Cash Flow Statement

Table 11: Balance Sheet

Table 12: Implementation/Action Plan

 EXECUTIVE SUMMARY

 This business plan was to apply the management theories into actuality
 We brainstormed about on what kind of establishment we will be having for
the business plan
 The project revolves around on how we will apply the theories in our final
paper
 Making the Marketing Plan, we made consider real possibilities in the
industry
 The Technical Plan, we researched about who were the real competition in the
industry
 The Operational Plan was made the knowledge we have acquired during our
research and were based on the Philippine setting of the business
 The Financial Plan was made from scratch with the figures coming from the
business plan itself
 We finished our future plan for our business plan basing on the plan we made
 If there were miscommunication with some us, we finished our Business Plan
INTRODUCTION

DIY COFFEE
DIY coffee stands for do it yourself coffee. DIY is an abbreviation for do-it-
yourself it is the activity of decorating or repairing your business, or making
things for yourself, rather than paying someone else to do it for you.

A coffee shop that is built to immerse the people or customer to teach them on
how to make or brew your own coffee. The way you love it the way you like
on how it taste like well don't worry because if you don’t know how to make
or brew your own coffee well don’t be sad because DIY coffee shop have a
barista that will assist you.

DIY coffee shop have many different coffee's to offer to brew so you'll have many
choices to pick which one will it be. We aim to share the knowledge about coffee to
our customers to teach some things about coffee. We want the people to try the
different types of coffee that is offered to the shop.
We chose this logo because the mug from the logo it symbolizes a mug that is being
filled with warmth with freshly brewed coffee and the machine there symbolizes the
coffee that is being brewed freshly and also it goes with the shops name. And it will
also catch the customer’s attention on how you brew your own coffee.
MARKET PLAN

PRODUCT
Our product that we are selling is a coffee that has a different types from the
Philippines. We also give you knowledge on how you will be making your own
coffee. In additional to that our coffee shop also has cakes and other pastries that are
offeredPRICE
The prices of our products will depend on the coffee.
The entrance fee is 200pesos per head discounts are given to students, disabled,
senior citizen.

PLACE
Address: Porta Vaga, Session Rd, Baguio, 2600
For the location we picked the top floor at the porta vaga session road. Because we
are aiming for the people that are going to church could use a coffee shop also for the
students that are passing by the church. We also picked this location for our
customers to get a better view of session road while drinking coffee it’s a satisfaction
right?
TARGET MARKET

TARGET MARKET

STUDENTS
TOURIST
PASSERBYS
CHURCH GOERS
COFFEE ENTHUSIAST
PROFESSINALS

COMPETITION
1.Sweetmates

2.Starbucks

3.Read and Brew café

4.Coffee maters

Marketing Strategies

Product Strategy

With the new development of the business, DIY CAFÉ , the consumer adoption
process will be adapted by the company. This process involves product awareness,
product interest, product evaluation, product trial and product adoption. Spreading
information about the existence of the business is the first stage in the process
followed by providing further details regarding the company products and promoting
the strengths of the business that separate its products from the others. As a newly
emerging business, meeting customer expectation is necessary in order to satisfy the
buyers and establish the continuous existence of the company.
Pricing Strategy

Price Skimming-

The products will be charged with the highest initial price and the gradually
decrease over time. Using this strategy will help strengthen the high quality image of
the products made by the company. This strategy will also help the company
maximize profits and in turn recover the costs of creating the product.

Promotion Strategy

Social Media - Using this form of digital marketing will help make the public be
aware of the products that the company is offering due to the fast advancement of
technology and with the growing population of internet users.

Discounted Pricing- Offering discounts can encourage more customers to buy in

large quantities and discounts that reward repeat customers will ensure customer
loyalty.

SWOT Analysis

 Strengths

- Buying the product from a locally owned establishment would promote the idea of
helping other people

- Our customers can learn how to make their own coffee

- The product is made out of chosen types of coffee bean

- Use of machines in aiding the creation of the product to establish

precision and consistency

-Usage of biodegradable products

-A very nice cold weather and climate

 Weaknesses
-Weak brand name since it is new in the market

- The creation of the product takes time

-Rent expenses

 Opportunities

- Using the internet as a marketing tool

- Partnerships or alliances with other businesses

- Chances of offering retailing to other blaces

 Threats

-Strong brand name of other competitors

-Cheaper products offered by other businesses which can be used as

substitute for our products

Business Mission

To provide the public with good quality organizers that best fit their needs.
Business Vision

To become a well-known reliable company where customers are a priority and

to consistently offer products that conforms only to high standards.

Goals
1. Recruit skilled and experienced employees into the organization
2. Reduce delivery of products to customers and increase speed of producing products
without sacrificing quality
3. Increase brand awareness
TECHNICAL PLAN

Description of Site Location

Layout

Interior Concept
Exterior Concept
Milk Cooler
it helps you offer students
drinks they need for
breakfast or lunch.
Each cooler is made with a
single or double-sided
design to keep lines moving

----------------------------------
----------

Undercounter Fridge

is a small-sized appliance
that is generally under 34-
inches in height. Most
compact refrigerators are
designed to offer many of
the features.

----------------------------------
----------Prep Counter

Is a category include fridges

with built-in chopping
boards, or versions with
incredibly strong marble
worktops

Ice Cooler

to keep Ice cubes are most

commonly placed in it to
help the contents inside stay
cool

Refigerator
is artificially kept cool and
used to store food and drink.
Modern refrigerators
generally make use of the
cooling effect produced
when a volatile liquid is
forced to evaporate in a
sealed system in which it
can be condensed back to
liquid outside the
refrigerator.

----------------------------------
-----
Cashier
is a mechanical or electronic
device for registering and
calculating transactions at a
point of sale.

Coffee Grinder
a small machine for grinding
roasted coffee beans.

----------------------------------
-----

Espresso Machine

brews coffee by forcing

pressurized water near
boiling point through a
"puck" of ground coffee and
a filter in order to produce a
thick, concentrated coffee
called espresso

Café Counter

an establishment or counter
where coffee and usually
light refreshments are served
Inventory/Supplies

DIY Cafe offers a wide range of specially blended and roasted coffees. DIY Cafe will
be using customs locally grown coffee beans. DIY Cafe first will select and cup the
coffee, then blend different beans before roasting.

The key to a wonderful bag of roasted beans is the blending of different coffee beans.
Coffee beans are a global commodity. There are many different types of beans,
distinctive in the genre of plant that the bean comes from as well as the region that the
bean is grown. Beyond these distinctions, beans are still a commodity.

Blending different types of beans makes huge differences.

DIY Cafe will offer a wide range of coffees including:

 Italian Roast

 French Roast

 Columbian Dark

 African Roast

 Sumatra

 Bistro Blend

 Kona
  Kenya

 Decaf- available in the following blends: Bistro, Sumatra, French and Italian
Roasts

 Espresso and Decaf Espresso

 Barako

Each coffee is available in one pound and five pound packages, in both whole bean
and ground versions. Every product that DIY Cafe produces attempts to be the best in
its respective product category based on quality and taste. Inventory

Raw Materials Description

Coffee bean

 Made from finest coffee

beans

 bought locally and

internationally

Milk  Fresh Milk

Flour  Particularly

Sugar

 White Sugar

 Brown Sugar
Mug / Biodegradable cups
 Ceramic Mugs for the cafe

 Biodegradable cups for

Take-away
List of Suppliers

Savoroso Coffee Inc.

Location: 2602, 244 Camp 7 Rd,

Baguio, 2602 Benguet

Cell No. 0927 271 1677

Kape Umali

Location: 1 Nepal St., Asin Rd.,

Shangri-La Village, Baguio, 2600 Beng

Cell No: 0915 445 4416

Garcia’s Premium Coffee

Location: Hilltop Street, Hangar Market,

Baguio City, 2600

Cell No: 63 (2) 932 7649

Organizational/ Personnel Requirment

The Labour calls for hiring 5 full-time salaried employees at start-up. Part time
barristas/bartenders will have to be hired to manage approximately 135 hours of
operation per week, servers/waiters will have to be hired for approximately 203 hours
of operation per week, and dishwashers will have to be hired to handle approximately
62 hours of operation per week.

Any additional hires will be part time and devoted to the expansion of any catering
function, as well as increased capacity/operation of a private party function.

OPERATIONAL PLAN
BUSINESS STRUCTURE

MANAGER

HEAD PASTRY
BARISTA AUDITOR CHEF

CASHIER PURCHASER

ASSISTANT
PASTRY
CHEF
JR. BARISTA JR. BARISTA
and and
SERVER SERVER
Employee salaries are as follows:

Position Salary
Manager ₱ 35,000 per month

₱ 18,000 per month

Pastry Chef

Head barista ₱ 27,000 per month

Auditor and Cashier ₱ 16,000 per month

Jr Barista and Assistant Pastry ₱ 550 per hour

Purchaser ₱ 400 per hour

JOB TITLE: MANAGER

Job Description
Responsible for the successful day-to-day operations of the organization that includes
monitoring business activities and coordinating with the employees to ensure the
smooth flow of the business.

RESPONSIBILITIES AND DUTIES

 Must be on time at the store

 Ready to give clear instructions to subordinates
 Supervises all employees
 Compute expenses of the store
 Giving proper payment of salaries to the employees

 Communicate company goals, encourage teamwork and unity to the

employees
 Oversee the production process
 Set quality standards and ensure that workers are meeting the set requirements
 Lead, manage and supervise employees
 Maintain employee records and review worker performance
 Ensure the accurate delivery of the products
 Ensure inventory is stocked and consistently replenished

QUALIFICATIONS:

 GRADUATE of Hotel and Restaurant Management course of 4 years or

GRADUATE of Management course of 4 years
 Must have 2 year working experience
 Good at financial management skills
 Good communication skills
 Critical Thinker
 Can work under stress
 Can guide and motivate people
 NC II certified
 NBI and Police Clearance
JOB TITLE: AUDITOR

REPORTS TO:

Auditor will report to the manager when finances are involved.

RESPONSIBILITIES AND DUTIES:

 Audit all finances

 Computing expenses
 All ways has an organize and saving all records of expenses of the store
 Supervises the cashier
 Coordinates with the purchaser

QUALIFICATIONS:

 GRADUATE of Business Administration or Accounting course of 4 years

 Good at financial management skills
 Certified public Accountant
 NBI and Police Clearance
JOB TITLE: HEAD BARISTA

REPORTS TO:

Head Barista will report directly to the Manager.

RESPONSIBILITIES AND DUTIES:

 Making Coffee Concoctions

 Coffee menu planning
 Train part-time employees
 Prepare and Serve Hot and Cold Beverages
 Clean and Sanitize the work area, utensils and equipment
 Provide customers with product details, such as coffee blend or preparation
description
 Inventory Report

QUALIFICATIONS:

 GRADUATE of Hotel and Restaurant Management of 4 years

 Can be a TESDA Certified GRADUATE
 1 year working experience
 NC II Certified in Food and Beverage Service
 Good communication skills
 Good leadership skills
 NBI and Police Clearance
JOB TITLE: PASTRY CHEF

REPORTS TO:

Pastry Chef will directly report to the Manager.

RESPONSIBILITIES AND DUTIES:

 Pastry Making: cakes, cookies, cupcakes and other pastry snacks

 Menu Planning
 Creates new and exciting desserts
 Inventory Report

QUALIFICATIONS:

 GRADUATE of Hotel and Restaurant Management Course of 4 years or

GRADUATE of 4 year Culinary Course
 1 year working experience
 NC II Certified
 NBI and Police Clearance
JOB TITLE: JUNIOR BARISTA / SERVER

REPORTS TO:

Jr. Barista/Server will report to the Head Barista and Manager

RESPONSIBILITIES AND DUTIES:

 Making Coffee Concoctions

 Prepare and Serve Hot and Cold Beverages
 Clean and Sanitize the work area, utensils and equipment
 Provide customers with product details, such as coffee blend or preparation
description
 Assist customers in making coffee
 Take orders and serve customers

 Perform cleaning activities such as dusting, mopping, collecting trash, etc.

QUALIFICATION:

 GRADUATE of Hotel and Restaurant Management of 4 years

 Can be a GRADUATE of 2 year course related to Restaurant service
 Can be a TESDA Certified GRADUATE
 1 year working experience
 NC II Certified in Food and Beverage Service
 Good communication skills
 NBI and Police Clearance
JOB TITLE: CASHIER

JOB DESCRIPTION

Receive and process incoming orders for materials, merchandise, classified ads, or
services such as repairs, installations, or rental of facilities. Duties include informing
customers of receipt, prices, shipping dates, and delays; preparing contracts; and
handling complaints.

RESPONSIBILITIES AND DUTIES:

Job Specifications:

 Obtain customers' names, addresses, and billing information, product

numbers, and specifications of items to be purchased, and enter this
information on order forms.
 Prepare invoices, shipping documents, and contracts.
 Inform customers by mail or telephone of order information, such as unit
prices, shipping dates, and any anticipated delays.
 Receive and respond to customer complaints.
 Verify customer and order information for correctness, checking it against
previously obtained information as necessary.
 Direct specified departments or units to prepare and ship orders to designated
locations.
 Check inventory records to determine availability of requested merchandise.
 Review orders for completeness according to reporting procedures and
forward incomplete orders for further processing.
 File copies of orders received, or post orders on records.
 Compute total charges for merchandise or services and shipping charges.
 Confer with production, sales, shipping, warehouse, or common carrier
personnel in order to expedite or trace shipments.
 Recommend merchandise or services that will meet customers' needs.
 Adjust inventory records to reflect product movement.
 Inspect outgoing work for compliance with customers' specifications.
 Notify departments when supplies of specific items are low, or when orders
would deplete available supplies.
 Recommend type of packing or labeling needed on order.
Calculate and compile order-related statistics, and prepare reports for management.
REPORTS TO:

 Cashier will report to the Auditor and Manager

QUALIFICATION:

 1 year working experience

 TESDA Certified Graduate
 Good communication skills
 Good at accounting

 Has basic knowledge of Microsoft Word and Microsoft Excel

 Has good command of the English language
 Excellent communication and interpersonal skills
 Ability to multi task and pays attention to detail
JOB TITLE: PURCHASER

REPORTS TO:

Purchaser will report to the Auditor and Manager

Coordinates with Head Barista and Pastry Chef

RESPONSIBILITIES AND DUTIES:

 Canvas and Purchase Ingredients

 Contact with suppliers
 Buy fresh ingredients
 Check Inventory

QUALIFICATION:

 GRADUATE of Hotel and Restaurant Management Course of 4 years

 1 year working experience
 Good negotiation skills
 Good communication skills
 NBI and Police Clearance
JOB TITLE: ASST. PASTRY CHEF

REPORTS TO:

Assistant will report directly to the Pastry Chef

RESPONSIBILITIES AND DUTIES:

 Help the Pastry Chef in making desserts

 Inventory check

QUALIFICATION:

 1 year working experience in baking

 TESDA certified GRADUATE
 NBI and Police Clearabce
Benefits

Retirement Pay- All employees from the private-sector may retire from age 60 up to
age 65, at which retirement becomes compulsory, and must have served the
establishment for at least 5 years.

Retirement pay must at least be equivalent to half of a month’s salary for each year of
service and a fraction of at least 6 months is therefore considered as one whole year.

One “half month salary” must include the following: a) 15 days salary based on the
last salary pay, b) the pay equivalent of five days of incentive leave, c) 1/12 of the
13th month pay. Therefore, one ½ month salary is equivalent to 22.5 days.

Minimum Retirement pay = Latest daily pay rate x 22.5 days per month x number of
years of service

Holiday pay- The Labor Code requires the payment of an employee’s daily basic
wage for all non-working regular holidays. If work is accomplished on a regular
holiday (up to 8 hours), an employee is entitled to at least twice (200%) of his basic
wage. If the holiday corresponds to a scheduled rest day, the employee is entitled to
an additional 30% based on his regular holiday rate of 200%, which comes to a total
of at least 260%.

13th Month Pay- Each year, a 13th month pay is given to all rank-and-file
employees. By law, this benefit must be paid before December 24th and is
mandatory. Employees who have resigned or have been severed from the company
before the payment of the 13th month pay are still entitled to it in proportion to the
length of time they worked for during that year.

The 13th month pay must be at least 1/12th of the total basic salary of each employee
earned during that calendar year.

Sick Leave- Employees who can’t report to work due to sickness or disability can
apply for sick leave. Employees can also avail sick leave if they have family members
who are ill and needs taking care of. Usually this is equivalent to 15 days and can be
converted to cash by the end of the year.
Sick leave can be filed on the day the employee returns to work. If an
employee exceeds three days or filed in advance, the filed SL must be accompanied
with a medical certificate.

Parental Leaves- the Labor Code of the Philippines covers three different types of
parental leaves: maternity leave, paternity leave and solo-parent leave.
 Maternity Leave- Whether married or not, each pregnant employee is entitled to a
maternity leave benefit of 60 days for a normal delivery or miscarriage, or 78 days for
a caesarean delivery, for up to four pregnancies.

The maternity leave benefit being given instead of a regular wage, it cannot be
included in an employee’s 13th month wage.

Business Structure

Sole proprietorship is the business structure of DIY CAFÉ . Having a sole

proprietorship entails certain advantages compared to partnership and corporation.
One advantage is that there is little complexity in the formation. There are fewer
requirements needed in starting up a sole proprietorship and the cost of establishing it
is also cheaper. Exercising control and management of the business is also easier
compared to a corporation where there are a lot of people involved in the business.
Other advantages include tax benefits, privacy and minimal formalities that do not
involve having the need to hold annual meetings with the people in the company.
CORPORATE SOCIAL RESPONSIBILITY

Environment: “Make everyday Earth day”

Since DIY Cafe is an eco-friendly theme and it has an advocacy to help mother earth
and it will help in preserving our nature and protecting the animals. This is one
primary focus of corporate social responsibility is the environment. The Cafe will
also reduce the use of hazardous chemicals with the help of the respective suppliers
and it will use eco-friendly products like eco-friendly bags, straw, and products. Any
steps they can take to reduce those footprints are considered both good for the café
and society.

Community: “Connecting People for the better working world”

DIY café practice social responsibility by donating money, products or services to

social causes such as charitable donations or local community programs that
encourage employee volunteerism by providing paid time off for such activities.
Many organizations seek to have an even greater impact through CSR initiatives that
integrate social values into operational and business strategies. For example, to
protect scarce natural resources, a firm may make a commitment to use only recycled
materials in its packaging of consumer goods.

Employees : “Hard work build Leadership”

DIY Café assets are the employees and by treating employees fairly and ethically.
The company recognizes the efforts of the employees within the workplace and
Employees with an excellent performance would be given incentives and to reach
their full potential and be more effective and efficient.

Youth: “Youth for change”

By doing good deeds without expecting anything in return, the business can express
their concern for specific issues and support for certain organizations. DIY café
believes that the hope for the future lies in today’s youth. DIY Café will provide
scholarship programs, seminars and youth socialization activities. The goal of “Youth
for Change” is to develop the leadership spirit of the youth in their chosen fields,
skills and talents.
 Employee Schedules
Positions Monday Tuesdays Wednesday Thursday Friday Saturday Sunday
Manager Off 10:00 A.M. – 10:00 A.M. – 6:00 10:00 A.M. – 10:00 10:00 A.M. – 10:00 A.M.
6:00 P.M. P.M. 6:00 P.M. A.M. – 6:00 P.M. – 6:00 P.M.
6:00 P.M.
Auditor 10:00 A.M. – Off 10:00 A.M. – 6:00 10:00 A.M. – 10:00 10:00 A.M. – 10:00 A.M.
6:00 P.M. P.M. 6:00 P.M. A.M. – 6:00 P.M. – 6:00 P.M.
6:00 P.M.
Cashier 10:00 A.M. – 10:00 A.M. – Off 10:00 A.M. – 10:00 10:00 A.M. – 10:00 A.M.
6:00 P.M. 6:00 P.M. 6:00 P.M. A.M. – 6:00 P.M. – 6:00 P.M.
6:00 P.M.
Purchaser Off 10:00 A.M. – 10:00 A.M. – 6:00 10:00 A.M. – 10:00 10:00 A.M. – 10:00 A.M.
6:00 P.M. P.M. 6:00 P.M. A.M. – 6:00 P.M. – 6:00 P.M.
6:00 P.M.
Head 10:00 A.M. – 10:00 A.M. – 10:00 A.M. – 6:00 Off 10:00 10:00 A.M. – 10:00 A.M.
6:00 P.M. 6:00 P.M. P.M. A.M. – 6:00 P.M. – 6:00 P.M.
Barista 6:00 P.M.
Jr. 10:00 A.M. – 10:00 A.M. – 10:00 A.M. – 6:00 10:00 A.M. – 10:00 Off 10:00 A.M.
6:00 P.M. 6:00 P.M. P.M. 6:00 P.M. A.M. – – 6:00 P.M.
Barista / 6:00 P.M.
Server 1
Jr. 10:00 A.M. – 10:00 A.M. – 10:00 A.M. – 6:00 10:00 A.M. – 10:00 10:00 A.M. – Off
6:00 P.M. 6:00 P.M. P.M. 6:00 P.M. A.M. – 6:00 P.M.
Barista / 6:00 P.M.
Server 2
Head 8:00 A.M.- 8:00 A.M.- Off 8:00 A.M.- 8:00 A.M.- 8:00 A.M.- 8:00 A.M.-
7:00 P.M. 7:00 P.M. 7:00 P.M. 7:00 P.M. 7:00 P.M. 7:00 P.M.
Pastry
Chef
Assistant 8:00 A.M.- 8:00 A.M.- 8:00 A.M.- 7:00 8:00 A.M.- Off 8:00 A.M.- 8:00 A.M.-
7:00 P.M. 7:00 P.M. P.M. 7:00 P.M. 7:00 P.M. 7:00 P.M.
Pastry
Chef
FINANCIAL PLAN
CAPITAL REQUIREMENTS

CASH P 154,178.50

PROPERTY AND EQUIPMENT

Water Filters for Hot Beverage Equipment 9,000.00
Disposable Coffee Shop Supplies 3,200.00

Furniture And Fixtures 18,720.00

INVENTORIES

Coffee, Espresso, and Beverage Equipment P130,000

Coffee Shop Consumables 5,000.00

Refrigeration System 15,000.00

Ovens 12,000.00

Freezers and Cold Product Storage 11,100,00

Pre-Operating Expense 17,000,00

TOTAL CAPITAL REQUIMENTS P 221,020

 Pre-Operating Cash Flow
Cash Inflow
capital contribution P130,000

Cash Outflow
Coffee Smallwares and Beverageware 10,080.00
Water Filters for Hot Beverage Equipment 9,000.00

Disposable Coffee Shop Supplies 3,200.00

Coffee Shop Consumables 5,000.00

Refrigeration System 15,000.00

Ovens 12,000.00

Freezers and Cold Product Storage 11,100,00

Pre-Operating Expense 17,000,00

Pre-Operating Expense
Net Cash Flow P82,380
 2019 2020 2021

Electricity ₱2,800/month x12 ₱3,000/month x 12 ₱3,200/month x 12

Consumption = 33,600 =36,000 =38,400

Drinking Water ₱60/month x12 ₱60/month x12 ₱60/month x12

Consumption =720
(₱30/gallon) =720 =720

TOTAL ₱34,320 ₱36,720 ₱39,120

Utilities expense

Internet expense

Year Monthly Charge Yearly Payment

2019 1,300 15,600

2020 1,300 15,600

2021 1,300 15,600

Taxes and Licenses

2019

DTI Registration 300.00

Barangay Clearance 250.00

(Sanitary Permit, Fire
Safety Certificate)

Local Government Unit 7,500.00

(La Trinidad Municipal Mayor’s Permit + for
Hall) Furniture
(2,500+5,000)

BIR 530.00
 Total ₱8,580

Renewal 2020 2021

Mayor’s Permit 2,500 2,500

Sanitary Permit, 430 100

Fire and Safety
Certificate 430 100

₱3,150 ₱3,150
Total

Depreciation Expense

2019 2020 2021

Total equipment costs 96,124 96,124 96,124

Salvage Value 15% -14,418.60 -14,418.60 -14,418.60
7 years Estimated 81,705.40 81,705.40 81,705.40
Useful Life ÷7 years
÷7 years ÷7 years
₱11,672.20 ₱11,672.20 ₱11,672.20

*Depreciation=Cost-Salvage value/Estimated useful life

Total Project Cost

TOTAL PROJECT COST

PARTICULARS AMOUNT (PHP)

Cash ₱ 113,390

Property, Plant and Equipment ₱ 96,124

Coffee, Espresso, and 130,000

Beverage Equipment
 Water Filters for Hot 9,000
Beverage Equipment

Disposable Coffee Shop 3,200

Supplies

Furniture And Fixtures 18,720

Coffee Shop Consumables 5,000

Ovens 12,000

Freezers and Cold Product 11,100

Storage

Pre-Operating Expenses ₱ 189,020

Raw Materials 377,835

Office Supplies 4,071

Taxes and Licenses 8,580

Total Project Cost ₱ 398,534

Sources of Fund
Particulars Amount (PHP)

Personal Savings 199,267

BDO Loan 199,267

Total Project Cost 398,534

 DIY CAFÉ

INCOME STATEMENT

End of Each Year

PARTICULARS Amount (PHP)

2019 2020 2021

Sales ₱920,000 ₱360,000 ₱280,000

Less: Cost of Goods Sold 97,608 447,309 472,159.50

Gross Profit 522,392 712,691 807,840.50

Operating Expenses:

Salaries Expense 500,671.44 500,671.44 500,671.44

Utilities Expense 34,320 36,720 39,120

Delivery Expense 24,000 24,000 24,000

Internet and Telephone Expense 15,600 15,600 15,600

Taxes and Licenses 8,580 3,150 3,150

Depreciation Expense 11,672.20 11,672.20 11,672.20

Office Supplies Expense 4,071 4,071 4,071

Less: Total Operating Expenses 610,914.64 607,884.64 610,284.64

Income before interest and taxes 911,477.36 1,104,806.36 1,197,555.86

Less: Interest Expense 45,000 45,000 45,000

Income before taxes 866,477.36 1,059,806.36 1,152,555.86

Less: Taxes 259,943.21 345,766.758 317,941.91

Net Income ₱606,534.15 ₱714,039.60 ₱834,613.95

 DIY CAFÉ
CASH FLOW STATEMENT

End of Each Year

PARTICULARS AMOUNT (PHP)

2019 2020 2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income ₱606,534.15 ₱714,039.60 ₱834,613.95

Depreciation Expense 11,672.20 11,672.20 11,672.20

Increase/Decrease in (155,520) 108,000 72,000

Accounts Receivable

Increase/Decrease in 101,720.89 (168,977.41) (266,332.23)

Accounts Payable

Increase in Inventory (480) (600) (300)

Net Cash from 563,927.24 664,134.39 651,653.92

Operating Activities

CASH FLOWS FROM FINANCING

Loans payable 15,000 15,000 15,000

Net Cash Flows ₱578,927.24 ₱679,134.39 ₱666,653.92

 DIY CAFÉ
BALANCE SHEET

End of Each Year

PARTICULARS Amount

2019 2020 2021

ASSETS

Cash ₱156,000 ₱404,000 ₱596,000

Accounts Receivable 64,000 56,000 84,000

Inventory 4,800 5,400 5,700

Total Current Assets 224,800 65,400 685,700

Equipment 96,124 96,124 96,124

Less: Accumulated
Depreciation
11,672.20 11,672.20 11,672.20

Net Equipment
84,451.80 84,451.80 84,451.80

Total Assets ₱840,348.20 ₱680,948.20 ₱5201,248.20

LIABILITIES AND OWNER’S EQUITY

Loans Payable 145,000 145,000 145,000

Accounts Payable 80,604.46 77,581.87 11,249.64

Owner’s Equity 186,743.74 258,366.33 644,998.56

Total Liabilities and ₱840,348.20 ₱980,948.20 ₱701,248.20

Owner’s Equity
Implementation/Action Plan

Sept. Oct. Oct. Nov. Nov. Nov. Dec. Dec. Jan.

2018 1-12, 15-26, 5-9, 12- 26- 3 -6, 10-21, 2019
Activities 2018 2018 2018 23, 29, 2018 2018
2018 2018

Business plan
Preparation

Capital sourcing

Business registration

Securing other related

permits/requirements

Storage warehouse
unit renovation and
installation

Purchase of
Equipment

Manpower
requirement

Manpower
Orientation

Actual Operation
Conclusion

DIY CAFE is feasible and will be operational. The business will thrive with the start
of operation because of the location of the shop and the patron who will be coming to
do their own coffee or appreciate our coffee we will serve to them.

Future Plan

DIY CAFÉ will expand and will build new establishments to accommodate other
customers in Baguio, for them to enjoy making their very own coffee or enjoy our
very own coffee made for them.