1

TRICK COMPANY

A
Business Proposal
Presented to the Faculty of
Science, Technology, Engineering and Mathematics (STEM)
AGUSAN NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
T. Sanchez Street, Butuan City

In Partial Fulfillment of the Requirements for the Subject

ENTREPRENEURSHIP

Submitted by:

XII- HAWKING

Bagona, Iris Trixie C.

Casundo, Chlee P.
Gomez, Ma. Remy Rose D.
Oropa, Trishia Mae G.
Zambrano, Kristel Mae M.

Submitted to:

ROUEL T. PEREZ, Ph.D.

Entrepreneurship Professor

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OCTOBER 2019

ACKNOWLEDGEMENT

The five (5) entrepreneurs that founded TRICK company would like to
express their specal thanks of gratitude to the following, without whom
this business proposal would not be finished.

To the Heavenly Father, that has given them knowledge , wisdom ,

strength, hope and understanding to accomplish this paper and has given
the people who were in their personal space to comprehened the obstacles
their in.

To their Entrepreneurship Professor Rouel T. Perez, Ph.D. in

guiding them in overcoming this challenges throughout their journey in this
particular subject.

To Agusan National High School-Senior High School for allowing them

to sell their product throughout the semester.

To the pannels that have given them a golden opportunity to present

and critique their work and for correcting them to attain the betterment of
their study .

Lastly, a heartfelt gratitude to their parents and as well as their ever

supportive friends which provides them with every necessities in life and
the motivational speech and encouragement when they are in the break of
stoping.

With your help , this study was accomplished. Thank you so much
and Gobless.

- The Entrepreneurs

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DEDICATION

The Entrepreneurs dedicate this project to The Lord Almighty ,

family and friends. Who's been alongside of their hardships and
accomplishments and who never ceases to support and encourage
them in their every day battle to achieve the best of the best in life.

To their parent who are always supporting them and who are
able to understand the needed sacrificies in order to attain their
goals, a big applause for their great strenght and hardships and lastly
to the future students who are in line or who would take on the same
subject. The entrepreneurs hope that they could provide a big help
through the datas of this paper and be a role model in terms of a
better student who are willing to give their best portraying
perceverance , hardwork, patience ,being efficient and profficient on
this subject.

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EXECUTIVE SUMMARY
This section guides the readers or investors on the overall feasibility of the

project at a glance. It summarizes the major highlights and findings of each major

aspect of the study.

Brief Description of the Project

Filipinos are surely in-love with sweet treats like yema, candies, pastillas

and many more. Pastillas, also known as Patillas de Leche or Pastiyema a milk

based confectionary with origins in the town of San Miguel and spread to the

other parts of the Philippines such as the provinces of Masbate and Cagayan

and still up to now Filipinos enjoy this delightful treat, so the TRICK company

came up with a twist in adding marshmallow to the said treat which is pastillas

and coined up with the term “Pastimallows”

The special characteristics of pastimallows is that it’s easy to make, cheap

and delightful. Patimallows is also full of milk which is also a good treat for kids

for more calcium intake. The pastillas are just made with milk and condensed

milk that is kneaded until it is in a dough like consistency and use it to wrap [the

marshmallow and coated again with powdered milk and it is place in the

refrigerator (optional). Only with these simple steps you can have a sweet,

squishy and delihtful treat!

The TRICK company started operating and selling pastimallows in

September 2019 until October 2019. The projected sales in 4 days on September

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is Php 1,200.00 with the net income of Php 422.00 while in October the projected

sales in 4 days is Php 2000.00 with the net income of Php 662.00.

So the Pro-forma of income statement of TRICK company in selling

pastimallows in 2019 has a total sales of Php 19, 200.00 with the less expenses

of Php 9,864.00 and a net income of Php 9, 336.00, in the year 2020 the total

sales grew by 10% which resulted to Php 21, 120.00 and less expenses of Php

10, 850.40 with a net income of Php 10, 269.60, in the year 2021 the total sales

is Php 23, 040.00 with less expenses of 11, 836.00 with the net income of 11,

203.20 and the in the year 2022 the total sales ended with Php 24, 960.00 with

less expenses of Php 12, 823.20 and a net income of 12, 136.80.

TRICK company was founded by 5 individuals who wanted to start a

business that aims to provide delightful and savory products that would satisfy

customers’ cravings. The TRICK coming from the first letter of their names

reflecting the strong partnership and relationship among the entrepreneurs which

is a good indication of many minds as one that can surely make new various

interesting ideas.

We envision that pastimallows will be known and enjoyed by the many not

only by the target market but also for other people around the country to enjoy.

We invest ang expect for great outcomes in the start of the business and grow as

better entrepreneurs in the field.

Vision

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The primary goal of the company is to efficiently expand the business

through their quality product that will be known in the Philippines as one of the

delicacy of Filipinos. In addition, they will also try new flavors as an upgrade that

will surely satisfy those costumers that loves many flavors. However, in doing so

the entrepreneurs ensures that oath, that they made will be abide “keeping the

principles of an honest entrepreneur” which the entitled mark that the founders

wanted to preserve in the hearts of the costumers.

Mission

To offer great and quality pastimallows with the addition of different flavors

that will satisfy the costumers and add delightful moments for them to share with

their family, friends and love ones

and maintain good relationship and

respect to the costumers and among

other entrepreneurs.

Logo

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Tagline

“A Filipino delicacy that is squishy and milky,

Will surely fill your sweet-heart undeniably”

II. Brief Profile of the Entrepreneur

A. Iris Trixie C. Bagona

Iris Trixie C. Bagona, as an entrepreneur she leads the group and

generates new ideas and execute them in a productive manner. The information

needs to be validated by actually getting out of the building and interacting with

potential customers. She believes that lousy entrepreneurs are inform informed

by untested hypotheses. Good ones extract intelligence out of market-validated

results.

B. Kristel May M. Zambrano

Kristel accumulates ideas and give growth to our business. She is an

extremely perceptive individual and is never afraid to take risks. She embraces

the essence of a lean start up that recognizes the value of costumer discovery

and validating he hypotheses about the business model very early on and in the

business’ life cycle.

C. Chlee P. Casundo

Has the confidence to communicate to the costumers. She enriches new

experiences that provides great encounter costumer service. She believes that

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good network is one of the most crucial assets of an entrepreneur, but more

importantly, the ability to leverage that network effectively can be the difference

between a failed and a successful start-up.

D. Ma. Remy Rose D. Gomez

A charismatic person and has an ability to persuade customers. She

thinks that the hallmark of all successful, long running, profitable business has

been an effective way of customer service and the loyalty that accompanies

happy customers.

E. Trishia Mae G. Oropa

She’s exuberant whenever she hears story of success, she sees the

good of every situation and heightened awareness and good judgements to

identify a viable business opportunity and figure out how it can be transformed

into a high growth business model.

III. CONTRIBUTION OF YOUR PRODUCT/BUSINESS IN THE COMMUNITY

“Pastimallows” as a new and creative way of adding a twist to one of the

Philippines sweet delicacies, pastillas. We will be able to share them back to the

Filipinos after a time of not being seen and heard for the most of us. It also

satisfies customers that are craving for something sweet and chewy just for 2

pesos. Locally, the product pastimallows can also help the local stores that has

the ingredients needed to be able to make pasimallows.

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SECTION 1

MARKETING PLAN

This section tackles about the product of the business and narrates the

project conceptualization. It also pinpoints the project’s general to specific market

feasibility topics. It presents the different marketing strategies and summary of

sales projections of the project study’s entire duration and, the project’s

marketing system and forms design.

1.1 Description of the Product

This “pastimallow” product of ours is composed of two main component a

squishy marshmallow coated by a flattened milky pastillas. It can be served in

various types as the entrepreneurs wanted to venture in creating new flavors of

this product is to be satisfying and effective in terms of creating a healthier

sweets and effective stress reliever treats with an affordable price. The product is

presented by using a biodegradable small size cupcake cups and it can also be

arranged in nice little boxes if a customer is a large quantity of it.

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1.2 Comparison of the Product with Its Competitors

Our Product
(Pastimalloews)
Strengths  Affordable
 Variations
 Easy to pack
 Easy to make
 Delicious
 Stress reliever
 Delightful
 Sweet

Weaknesses  Limited manpower

 Time is short
Opportunities  Additional staff can be brought with
cost
 Ability to access cultural marketing
through staff
 Active in other markets
Threats  Competitors are active ‘like Margies's
and Dunkin Dounuts.
 Exchange rates vary a lot

Table 1. SWOT ANALYSIS

In the Philippines, a lot of companies are competing. They are said to be

competitors if they offer the market the same products. However, their products

vary in many ways. For food, it may differ in the taste, aroma, innovative features

and satisfaction rate. If services, it may vary in the efficiency, effectiveness and

lastly in the quality.

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Pastimallows has also its competitors like Margie’s and Dunkin Donuts

these are sure big outlets for these kinds of treats but pastimallows has its edge

among others. Patimallows are made traditionally it is less costly and we can

showcase the creativeness of Filipinos when it comes to tasty sweet treats.

1.3 Location

The product will be sold at Agusan National High School-Junior high

school and Senior high school at T. Sanchez Street, Butuan City.

1.4 Market Area

The product will be sold inside the campus with the students, teachers and

staff as our customers. We will provide outstanding quality and service so that we

will make every customer smile and feel delighted.

1.5 Main Customers

The main target customers of the business are the students and the

teachers in both Junior high and Senior high school Department of Agusan

National High School.

1.6 Total Demand

Based on the result of the conducted free taste survey, the entrepreneurs

will sell 80 pieces of pastimallows per day.

1.7 Market Share

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Out of the total population of Agusan National High School Senior High

Department including the staffs and teachers the entrepreneurs anticipated that

the profit will reach atleast 50% of the entire population.

1.8 Selling Price

The selling price of the product pastimallows is Php 2.00 each.

1.9 Sales Forecast

The estimated number of pastimallow to be sold is 150 pieces.
1.10. Promotional Method
The entrepreneurs will be promoting the product by strolling around
advertising their product in every classrooms and buildings.

1.11 Marketing Strategy

The 7Ps are a set of marketing tactics or strategies wherein the
entrepreneurs will be using to satisfy the customers in their target market.

1. Product
Our product is called “pastimallows” named after the product itself,

pastillas stuffed with marshmallow. The product aims to be cost-effective by

serving a clean and affordable product for students who are in a tight budget to

also have a sweet treat after a draining activity in school.

2. Price

In evaluating the price of the pastimallows product the entreprenuer

follows a comprehensive and thorough strategy that is based on the overall

quality together with the overall expenses in creating this product and most

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importantly the price should be within the costumers reach. By this they are

maintaing a brand loyalty and showing a lasting impression to the costumer.

3. Promotion

The company will hire a number of marketing and advertising strategies to

ensure the validity and good approach in the promoting the product. It advertises

the product through several communication channels , including social medias

and world wide web. Also, a traditional means will be added to such as billboards

and posters.

4. Place

The business place will be in Agusan National High School - Senior High

School targeting all young adult students in this particular area.

5. People

People are considered to be one of the most valuable P of the 7P’S Ii the

marketing mix. Building a good foundation for the product depends on them. The

people in the business would be employees, management, and the costumer

service.

6. Process

The sizes of the the said product would have the same amount of the

combined ingredients and would be placed on little cupcake cup. The

“pastimallows” will be sold by the said entrepreneurs by 2 pesos each.

7. Physical Evidence

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Agusan National High School is the target place of selling the product but

we can also expand our business by not limiting ourselves in the campus, we can

also sell it in food parks and events with a good presentation of our product and

customer service.

1.12 Marketing Budget

MATERIALS AMOUNT

Marketing Strategy ₱50.00

Food Tasting ₱179.00

Poster ₱50.00

Business Card ₱15.00

Flyers ₱20.00

Social Media Promotion ₱00.00

Total ₱314.00

Table 2. Marketing Budget

Financial Goals

The entrepreneurs financial goals are as follows ; Increased

Revenue, Decreased Costs, Improved Margins, Debt Service

Management and lastly Cash Flow Planning.

Social Responsibility Activity

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The TRICK company is giving their best to improve and take part

on the social responsibility activity for they value and their costumers

and workers for the valuavle assets for any business . So the

following are the top social responsibilities activities :

 Supply top-quality goods and service to the customers at

reasonable prices

 Improve labor policies and embrace fair trade

 Engage in charitable giving and volunteer efforts within

community

 Change corporate policies to benefit the environment

 Make socially and environmentally conscious investments

SECTION 2

PRODUCTION PLAN

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This section presents the manufacturing aspects of the company. This

includes the details of what the product is sold to the market and exhibit how the

product will be produced and raised using the proposed location, production size

(capacity) and lay-out.

2.1 Production Process

PASTIMALLOWS RECIPE

Here is what you’ll need! Sweet and squishy pastimallows delicacy ingredients:

INGREDIENTS

 2 pack of marshmallows (50 pieces that will be cut into 3 pieces that would

generate 150 marshmallows ready for coating)

 1 pack of powdered milk (500g)

 1 can of condensed milk

MATERIALS AND MACHINES USED:

 A large bowl

 A clean flat container

 Small cupcake cups

 Whisk

 Can opener

 Scissor

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 Refrigerator ( optional )

PREPARATION

1. Prepare all the needed ingredients for the delicacy pastimallows

2. In a large bowl, mix the powdered milk and the condensed milk together for

the cover of the marshmallows

3. Mix thoroughly the ingredients till you get the consistency of a dough like

filling. You can test it by touching it with washed hands, if the mixture still sticks

on your hands, then it needs more mixing till you get the desired texture.

4. After preparing the covering for the pastimallows, place the a whole

marshmallow in a chopping board and start slicing it into four parts.

5. When the marshmallows are already prepared, you can start kneading the

mixture we made then start covering the marshmallows with it.

6. Finally, placed the well covered marshmallow in small cupcake cups.

7. Well done! You now have a sweet delicious pastimallow treat with you.

PACKAGING

The steps in packaging are the following:

1. Prepare all the well covered marshmallows of pastillas mixture

2. Then, place it on the prepared small cupcake cups that fits the size of the treat

3. Arrange them in a well cleaned container for better look

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4. Before starting the business operation, the entrepreneurs will make sure that

the business will fully comply all the registration requirements.

2.2 FIXED CAPITAL

For short-term small pastimallows stall will be positioned in the SHS

campus canteen, where the product will be presented and sold to

customers. This helps in promoting the product that will in growing the

profit that will be gained by the business. The long-term plan for the

business will be constructing a small establishment within the city

comprising with complete machineries and facilities that will provide

quality service to the customers. Fixed assets, which include the

refrigerator and stall that will aid in the production process which will

heighten the business efficiency. The proposed business will be using an

estimated amount of 150,000 for the plan, which includes all the

necessary materials involved for the business.

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Capital Expenses Amount (Php)

BIR Annual Registration fee ₱500.00

Documentary Stamp ₱75.00

Books of Account ₱200.00

Cost of Printing Official Receipts ₱3,500.00

Total Cost ₱4,275.00

Table 3. Capital Expenses

A long-term building for the production storage and a bigger institution will

be where the product would be sold including the fixed assets such as,

generator, refrigerator and hire many workers to speed up the production

process an estimated amount of 500,000 pesos for the plan, which includes all

the necessary assets involved for the business.

2.3 Life of Fixed Capital

A. 1 Life Span

It is defined as the usable span of time an asset is still good or in other

words the useable calculative average years before it devaluates or expire.

CLASSIFICATION TYPE LIFESPAN (yrs)

Machinery Mini Refrigerator 4-7

Material Kitchen Materials 3-6

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Material Small cupcake cups 2-3

Table 1. Life Span

B. 1 Life Span

The entrepreneurs will use and make a capacity planning to thoroughly

arrange the orderings and achieve the balance in serving their best performance

for their costumers which is consist of students, teachers and mostly other

people.

CLASSIFICATION TYPE LIFESPAN (yrs)

Machinery Refrigerator 10+

Material Kitchen Materials 3-6

Material Small cupcake cups 2-3

Table 2. Life Span

2.4 Maintenance and Repair

A. 2 Maintenance and Repair

The most important of all business ethics are the maintenance and

repair of the cleanliness and quality of the facilities and store, moreover, it

is also the same in the process of the product ensuring its quality and

cleanliness is a must. There are assigned personnel or members in a

particular time and place that will facilitate and evaluate the stalls state

and the coolness and freshness of the product for the entrepreneur will

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use a refrigerator to preserve the products state by keeping it cool and

prevents it from melting.

B. 2 Maintenance and Repair

Repair and maintenance is a necessary factor that assures the

durability and neatness of the store and also the product's quality. To

maintain the balance and orderliness of the establishment and state of the

product. Considerations made are the following:

- Sanitation

- Consistency in production

- Product Identification

- Daily Cleaners

- Daily evaluations

2.5 Sources of Equipment

The needed equipment are located near the local appliance stores or

either the stand alone stores. All the sources of equipment used in the production

of the product are within the areas of Butuan City which is accessible through

private and public vehicles.

2.6 Planned Capacity

A. Planned Capacity

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The entrepreneurs made capacity planning to thoroughly arrange the

order and achieve the balance in serving their best performance for their

costumers

Figure 1. Planned Capacity

The photo attached is the short- term stall located in ANHS.

2.7 Future Capacity

The entrepreneur planned a future capacity of the business to make the

quality products to be accessible to different people by creating an establishment

accommodating all costumers.

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Figure 2: Future Capacity

The Photo Attached Indicates the long-term shop stationed in T. Sanchez St. Butuan City

A. Life Span

CLASSIFICATION TYPE LIFESPAN (years)

Establishment land 2-5

Establishment Stall/Building 2-5

Establishment Furniture 3-6

Machinery Refrigerator 10+

Materials Kitchen Materials 3-6

Material Small cupcake cups 2-3

2.8 Terms of Condition

A. Cash Basis

Cash based purchase of equipment needed will be subsidized by

the capitals of the business from the ventures of each taking part

entrepreneurs in the business. The expense of the equipment will be

deducted from the positive money balance and will be added to the

advantages of the business to guarantee profitability and proficiency in

monetary gauges.

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2.9 Factory Location and Layout

Figure 3: Future Location and Layout

There will be two short-term stall, one located in Agusan National High

School JHS and the other one in Agusan National High School SHS. The stalls

will be painted with pastel colors to give off fresh vibes and attract customers and

the company’s logo will be on the right top of the stall.

2.10 Raw Materials

Ingredients Brand

Marshmallows Sunflower

Condensed Milk Cowbell

Powdered Milk Birch Tree

Wrapper

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In order to create the product, four (4) raw materials are needed for its

production. The raw materials and its unit costs are listed as follows.

2.11 Cost of Raw Materials

Ingredients Brand Quantity Unit Unit Price Amount

Marshmallows Sunflower 2 Grams (g) ₱12.00 ₱ 24.00

per pack

Condensed Cowbell 1 Milliliters ₱ 26.50 ₱ 26.50

Millk (mL) per can

Powdered Birch Tree 1 Grams (g) ₱ 5.00 ₱ 50.00

Milk per pack

Wrapper 2 100 pieces ₱ 2.50.00 ₱ 5.00

per pack

2.12 Availability of Raw Materials

Date Quantity Unit Item Price Amount

2 Grams (g) Marshmallow ₱ 12.00 ₱24.00

per pack s

1 Milliliters Condensed ₱ 26.50 ₱ 26.50

(mL) per can Milk

1 Grams (g) Powdered ₱ 50.00 ₱ 50.00

per pack Milk

2 100 pieces Wrapper ₱ 2.50.00 ₱ 5.00

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per pack

2.13 Labor

In making the product, three (3) laborers will be needed. They should

possess patience and creativity. The workers will be motivated through providing

them salary on time, acknowledging their efforts and giving them a fair treatment.

2.14 Cost of Labor

The cost of labor would be Php 80.00 per day and person.

2.15 Labor Availability

The entrepreneurs will hire three (3) efficient and full-time laborers to work

for the business.

2.16 Labor Productivity

The laborers will be monitored regarding with their efforts and output in

terms of productivity in making the product.

2.17 Factory Overhead Expenses

The company produced 150 pastimallows. To produce 150 pcs

pastimallows, the company incurred cost of:

 ₱ 50.00 on powdered milk

 ₱ 26.50 on condensed milk

 ₱ 24.00 on marshmallows

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 ₱ 5.00 on wrapper

Total product cost:

₱ 50 + ₱ 26.50 + ₱ 24.00 +₱ 5.00= ₱ 105.50 Therefore, the company

incurred total product cost of ₱ 105.50 to produce 150 pastimallows.

2.18 Production Cost

Production Cost Per Product, Needed, Cost Per Product

Production

Description Quantity Unit Price Total

Powdered Milk 1 ₱50.00 ₱ 50.00

Marshmallow 2 ₱ 12.00 ₱ 24.00
Condensed Milk 1 ₱ 26.50 ₱ 26.50
Wrapper 2 ₱ ₱ 5.00
2.50
Total ₱ 105.50

Table 8. Production Cost

Opex

Description Quantity Unit Price Total

Transportation 2 ₱7.00 ₱ 14.00

Total ₱ 14.00

Table 9. OPEX

Total Cost of Production

TcP = (Cost of Products + Operating Expenses) / No. of goods produced

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TcP = (₱ 105.50 + ₱ 14.00) / 150 = ₱ 1.00

Selling Price

Selling Price = Total Price + (Total Price x Mark up)

Selling Price =₱ 1.00 + (1.00 x 1.00) =₱ 2.00

SECTION 3

ORGANIZATION AND MANAGEMENT PLAN

This section discusses the form of business the company utilized. It

provides information on how the company makes effective decisions on how to

allocate the resources in a way that will enable the organization to reach its

objectives and it shows how the company distinguished its members on the

different departments based on their capabilities.

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3.1 Form of Business

The form of business that TRICK company in the production of

pastimallows will be organized as a General Partnership in which some or all

partners have two or more persons agree to share in all assets, profits and

financial and legal liabilities of a business. Such partners have unlimited liability,

which means their personal assets are liable to the partnership's obligations. In

fact, any partner can be sued for the entirety of a partnership's business debts.

The company’s goal is to offer customers a sweet, squishy, healthy and delightful

delicacy in an affordable price and will still gain a good profit.

IRIS TRIXIE C. BAGONA

Vice President

3.2 Organizational Structure

Figure 4. Organizational Chart

CHLEE P. CASUNDO
President

President

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3.3 Business Experience and Qualification of the Entrepreneur

A. Department and Employee

I. Executive Department

1. President - Chlee P. Casundo

2. Vice President -Iris Trixie C. Bagona

MA. REMY ROSE D. GOMEZ
TRISHIA OROPA Production Director
Marketing and Sales Director

II. Management Department/Finance Officer

1. Manager -Kristel Mae M. Zambrano r

III. Production Department

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1. Manager -Ma. Remy Rose D. Gomez

IV. Marketing and Sales Department

1. Manager -Trishia G. Oropa

B. Department and Function

Department Function

Executive Department They plan, direct, devises strategies and

policies to ensure that an organization meets

its goals.

Finance Department and Manage the money and produces the

Financial officer company's financial statements

Management Department Operates through functions that enable them to

create strategies and compile resources to lead

operations and monitor outputs.

Production Department They are responsible in reproducing the goods

and process it .

Marketing Department Manage the activities that are involved in

making people aware of a company's products,

and making sure that the products are

available to be bought

Sales Department Responsible for making sales, growing the

business and retaining existing customers.

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3.4 Pre- Operating Activities

The pre-operating activities of a business are the things entrepreneurs

should acquire or should do in order to officially start a business. The pre-

operating activities of Trick company for pastimallows are as follows:

1. Market Survey. A market survey is done in order to know whether the

business an entrepreneur wants to open up to the market is marketable. Hence,

by doing such, an entrepreneur would be aware that the business is feasible

and would open the business in no time.

2. Food Tasting. It is important for food tasting to be done in order for the

customers to taste the product and would give feedbacks that will give

awareness to the entrepreneurs on what changes or improvements should be

made.

3. Feasibility Study. It is a major information source in making a critical decision

whether to go or not to go into business. This study is an investigative function

and is conducted before a decision to proceed to business. Then, feasibility

study is important to determine if a business is feasible to be established.

4. Business Plan. It is a formal statement of a set of business goals. It may also

contain background information about the organization or team attempting to

reach those goals. It is important to make a business plan to have a smooth and

organized way of setting and achieving goals.

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5. SWOT Analysis. An analysis to determine the strengths, weaknesses,

opportunities, and threats of a business. It is important to make a SWOT

Analysis so that entrepreneurs will be aware of the areas they need to improve

with their business in which it becomes their edge among others.

6. Market Analysis. It is done to determine the demand of the product and to

know their target market. It will help the entrepreneur to be informed on what the

customer’s wants and how our business should operate.

7. Forecasting the Revenues of the business. This will help the entrepreneur

to have sufficient information in determining the cost that are likely to be involve

in production. The entrepreneur is therefore in a position to calculate and predict

the expected revenue expenditure or the gross profit that the business can

achieve.

Before the business started, the members within the organization planned

to conduct a Market Survey in order to determine how many people likes

Pastimallows. The outcome presented were all good results and many were

willing to buy and eat Pastimallows. The members then held a free taste for

possible customers which are students in Agusan National High School, to find

out how much they like the product that has been made which is Pastimallows

and to be able to get recommendations for rooms in improvements and for the

customers to have a say in the product.

3.5 PRE-OPERATING EXPENSES

PRE-OPERATING ACTIVITIES EXPENSES

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Survey Questionnaires ₱ 50.00

Free tasting ₱ 179.00

TOTAL ₱ 229.00

TABLE 12. Pre-Operating Expense

3.6 EQUIPMENT AND FACILITIES

Executive Department

Figure 1. Office of the President Figure 2. Office of the Vice President

Management Department

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Figure 3. Office of the Management Director Figure 4. Workplace of the

workers

Finance and Marketing Department

Figure 5. Office of the Finance and Marketing Director Figure 6. Workplace of the

workers

Production and Sales Department

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Figure 7. Office of the Production and Sales Director Figure 8. Workplace of the

workers

3.7 ADMINISTRATIVE EXPENSES

EQUIPTMENT AMOUNT

Executive Furnitures ( Desk, Tables, Chairs and ₱ 80,000.00

etc.)
Computer and Printers ₱ 105,000.00
Miscellaneous ( Pens, Bondpaper and etc.) ₱ 50.00
Handy Equipment ( Coffee maker and etc. ) ₱ 10,000.00
Electrical Bill ₱ 5,000/month
Water Bill ₱ 3,000/month
Telephone Bill ₱ 1,000/month
Internet ₱ 2,000/month
Total ₱ 200.050.00

Salaries and Wages

President ₱ 40,000.00/ month

Vice President ₱ 39,000.00/month

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Manager ₱ 30,000.00/month

Table 13. Administrative Expenses

SECTION 4

FINANCIAL PLAN

This section guides the entrepreneurs to be informed on how much

capitalization will be needed to finance the project. It determines the most

adaptable financing scheme in terms of the financiers’ term and conditions of

repayment. This section presents the financial projection, and financial analysis

like financial ratios, project rate of return and payback period to prove the

financial feasibility of the project.

4.1 PRODUCTION COST

The project capital is worth ₱ 200.00 The total contribution of each
member is ₱ 40
Summary of Sales Transaction & Expenditures:
Day 1 – September 23, 2019
Pastimallows

Cost of Raw Materials ₱ 105.50

Cost of Production ₱ 119.50
Total Operation Expenses ₱ 14.00
Percentage Mark-up 100%
Selling Price ₱ 2.00
Total Sales ₱ 300.00
Total Income/Profit ₱ 180.50

Table 14. Summary of sales Transactions and Expenditures

2. Cost of Materials (Raw)

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Quantity Description Unit price Amount

2 packs Marshmallow ₱ 12.00 ₱ 24.00
1 pack Milk Powder ₱ 50.00 ₱ 50.00
1 can Condensed Milk ₱ 26.50 ₱ 26.50
2 pack Wrapper ₱ 2.50 ₱ 5.00
Total: ₱ 105.50

Table 15. Cost of Raw Materials

B. Operating Expenses
Transportation ₱ 14.00
Total ₱ 14.00

C.Total Cost per Product

TcP = RM + OPEX
No. of GP
TcP = ₱ 105.50 +₱ 14.00
₱ 150
TcP = ₱ 1.00

D. Selling Price
Sp =TcP + MUP
Sp = ₱ 1.00 + ₱ 1.00
Sp = ₱ 2.00

E. Profit

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 39

P = ₱ 2.00 – ₱ 1.00
P = ₱ 1.00

Day 2 – September 24, 2019

Pastimallows

Cost of Raw Materials ₱ 105.50

Cost of Production ₱ 119.50
Total Operation Expenses ₱ 14.00
Percentage Mark-up 100%
Selling Price ₱ 2.00
Total Sales ₱ 300.00
Total Income/Profit ₱ 180.50

A. Cost of Materials (Raw)

Quantity Description Unit price Amount
2 packs Marshmallow Php 12.00 ₱ 24.00
1 pack Milk Powder Php 50.00 ₱ 50.00
1 can Condensed Milk Php 26.50 ₱ 26.50
2 pack Wrapper Php 2.50 ₱ 5.00
Total: ₱ 105.50

B. Operating Expenses
Transportation ₱ 14.00
Total ₱ 14.00

C.Total Cost per Product

TcP = RM + OPEX
No. of GP

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 40

TcP = ₱ 105.50 + ₱ 14.00

₱ 150
TcP = ₱ 1.00

D. Selling Price
Sp =TcP + MUP
Sp = ₱ 1.00 + ₱ 1.00
Sp = ₱ 2.00

E. Profit
P = ₱ 2.00 – ₱ 1.00
P = ₱ 1.00

Day 3 – September 25, 2019

Pastimallows

Cost of Raw Materials ₱ 105.50

Cost of Production ₱ 119.50
Total Operation Expenses ₱ 14.00
Percentage Mark-up 100%
Selling Price ₱ 2.00
Total Sales ₱ 300.00
Total Income/Profit ₱ 180.50

A. Cost of Materials (Raw)

Quantity Description Unit price Amount
2 packs Marshmallow ₱ 12.00 ₱ 24.00
1 pack Milk Powder ₱ 50.00 ₱ 50.00
1 can Condensed Milk ₱ 26.50 ₱ 26.50
2 pack Wrapper ₱ 2.50 ₱ 5.00
Total: ₱ 105.50

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 41

B. Operating Expenses
Transportation ₱ 14.00
Total ₱ 14.00

C. Total Cost per Product

TcP = RM + OPEX
No. of GP
TcP = ₱ 105.50 + ₱ 14.00
₱ 150
TcP = ₱ 1.00

D. Selling Price
Sp =TcP + MUP
Sp = ₱ 1.00 + ₱ 1.00
Sp = ₱ 2.00

E. Profit
P = ₱ 2.00 – ₱ 1.00
P = ₱ 1.00

Day 4 – September 26, 2019

Pastimallows

Cost of Raw Materials ₱ 105.50

Cost of Production ₱ 119.50
Total Operation Expenses ₱ 14.00
Percentage Mark-up 100%

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Selling Price ₱ 2.00

Total Sales ₱ 300.00
Total Income/Profit ₱ 180.50

A. Cost of Materials (Raw)

Quantity Description Unit price Amount
2 packs Marshmallow ₱ 12.00 ₱ 24.00
1 pack Milk Powder ₱ 50.00 ₱ 50.00
1 can Condensed Milk ₱ 26.50 ₱ 26.50
2 pack Wrapper ₱ 2.50 ₱ 5.00
₱ 105.50

B. Operating Expenses
Transportation ₱ 14.00
Total ₱ 14.00

C. Total Cost per Product

TcP = RM + OPEX
No. of GP
TcP = ₱ 105.50 + ₱ 14.00
₱ 150
TcP = ₱ 1.00

D. Selling Price
Sp =TcP + MUP

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 43

Sp = ₱ 1.00 + ₱ 1.00
Sp = ₱ 2.00

E. Profit
P = ₱ 2 .00 – ₱ 1.00
P = ₱ 1.00

4.2 Income Statement

TRICK Corporation
INCOME STATEMENT
For the month ended September 30, 2019
PASTIMALLOWS

Sales :Php 1,200.00

Less: Cost of Goods Sold
Cost of raw materials - Php 422.00
Transformation Expenses - Php 56.00
Gross Profit :
722.00
Indirect Expenses :

Less:

Incidental Expenses (Free taste) :Php

179.00
Marketing Expenses ( Paraphernalia) :Php
85.00
Net Income Before tax :
458.00

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Less:
Tax due :Php
36.00

Net Income after tax :Php 422.00

After 4-days of selling our product, the TRICK Corporation had sales of
Php 1,200.00 for Pastimallows.

TRICK Corporation
INCOME STATEMENT
For the month ended October 31, 2019
PASTIMALLOWS

Sales :Php 2,000.00

Less: Cost of Goods Sold
Cost of raw materials - Php 1222.00
Transportation Expenses - Php 56.00
Gross Profit. :Php 722.00
Indirect Expenses :
Less:

Incidental Expenses (Free taste) :Php 0.00

Marketing Expenses ( Paraphernalia) :Php 0.00

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 45

Net Income Before Tax. : 722.00

Less:
Tax due :Php
60.00

Net Income After Tax :Php 662.00

After 4-days of selling our product, the TRICK company had sales of 2,000.00 for
Pastimallows.

4.3 Cash Flow Statement

TRICK Company
CASH FLOW
STATEMENT
For the Month ended
September 30, 2019

Cash Flow from Operating

Activities
Net Profit Php 422.00
Net Cash From Operating Php 422.00
Activities
Cash Flow from Investing
Raw Materials Php 0.00
Net Cash from Investing Php 0.00
Cash Flow from Financing

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 46

Activities
Capital Php 800.00
Net Cash from Financing Php 800.00
Activities
Cash at the Beginning Period Php 0.00
Cash at the Ending Period Php 1222.00

Table 26. Cash Flow Statement for Patimallows

For the month of September 2019, the total sales is Php 1200.00 from a
capital of Php 800.00. The entrepreneurs have a Net Cash from Operating
Activities of Php 422.00. And has a Cash on hand at the Beginning Period of Php
0.00 moreover a Cash on Hand at the Ending Period of Php 1222.00 This data is
for Pastimallows only.

TRICK Company
CASH FLOW
STATEMENT
For the Month ended
October 31, 2019

Cash Flow from Operating

Activities
Net Profit Php 662.00
Net Cash From Operating Php 662.00
Activities
Cash Flow from Investing
Activities
Raw Materials Php 0.00
Net Cash from Investing Php 0.00
Activities

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Cash Flow from Financing

Activities
Capital Php 800.00
Net Cash from Financing Php 800.00
Activities
Cash at the Beginning Period Php 422.00
Cash at the Ending Period Php 1,884.00

Table 27. Cash Flow Statement for Pastimallows

For the month of October 2019, the total sales is Php 2000.00 from a
capital of Php 800.00. The entrepreneurs have a Net Cash from Operating
Activities of Php 662.00. And has a Cash on hand at the Beginning Period of Php
422.00 moreover a Cash on Hand at the Ending Period of Php 1884.00 This data
is for Pastimallows only.

4.4. Balance Sheet

TRICK Company
BALANCE SHEET
As of September 30, 2019

Assets Liabilities
Cash 1222.00 Accounts Payable -
Utilities 0.00 Owners' Equity
Capital Php 800.00
Net Income Php 422.00
Total Assets Php 1222.00 Total liabilities Php 1222.00
and Owners'

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Equity

Table 28 Balance Sheet of Pastimallows

The entreprenuers have no Accounts Payable they have a Capital of Php
800.00 and Cash of Php 1222.00. Their Net Income is Php 422.00 and the Total
Liabilities and Owners' Equity is equal to the Cash amount of the entrepreneur
which is Php 1222.00.

TRICK Company
BALANCE SHEET
As of October 31, 2019

Assets Liabilities

Cash 1884.00 Accounts Payable -

Utilities 0.00 Owners' Equity

Capital Php 1222.00

Net Income Php 662.00

Total Assets Php 1884.00 Total liabilities and Php 1884.00

Owners' Equity

Table 29 Balance Sheet of Pastimallows

The entreprenuers have no Accounts Payable they have a Capital of Php
1222.00 and Cash of Php 1884.00. Their Net Income is Php 662.00 and the Total
Liabilities and Owners' Equity is equal to the Cash amount of the entrepreneur
which is Php 1884.00.

4.5. Return on Investment

ROI = Net income / Capital X 100

ROI = 662/ 1884 X 100
ROI = 35%

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4.6 Pro-forma Income Statement

TRICK Company
PROJECTED PRO FORMA INCOME STATEMENT
FOR THE YEAR ENDED DEC. 31,2019 - 2022
PASTIMALLOWS

2019 2020 2021 2022

Total Sales Php 19,200.00 Php 21,120.00 Php Php 24,
23,040.00 960.00
Less Php 9,864.00 Php 10,850.40 Php 11, Php
Expenses 836.80 12,823.20
Net Income Php 9,336.00 Php 10,269.60 Php Php
11,203.20 12,136.80

Table 30 Pro Forma Income Statement

APPENDICES
APPENDIX A

(Market Survey Template)

49
 50

AGUSAN NATIONAL HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT
ENTREPRENEURSHIP

MARKET SURVEY

To our dearest customer,

Good Day!

Please help us in determining if our proposed business is

marketable or not by answering this few questions below.
Please encircle the number of your choice. Thank You.

1 2 3 4 5
(Excellent) (Very (Satisfactory) (Good) (Not Good)
Satisfactory)
1.Product:
EmpanaDabest
2. Health
Benefits:
Low on calories
and fats and
has many
healthy
ingredients.
3. Uniqueness
of our product:
It comes with
different
various of
shapes and it
has an
extraordinary
taste.
Price:
Php.5.00
Advantages of
my product:
Affordable and
can be directly
sold to the
consumers.

APPENDIX B

(Food Tasting Template)

50
 51

AGUSAN NATIONAL HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT
ENTREPRENEURSHIP
FOOD TASTING

Product Name: EmpanaDabest

Date Tasted: __________________

Hello Ma’am/Sir,
Good Day!
Please help us evaluate how marketable our product by taking a
few minutes in answering our short survey food tasting
questionnaires. We appreciate it so much. Please encircle the
number of your choice. Thank you.

Please Check:_SHS Teacher_JHS Teacher_SHS Student_JHS Student

1 2 3 4 5
EXCELLENT VERY SATISFACTORY GOOD NOT
SATISFACT GOOD
ORY
1. Food
Appearance

2. Food
Taste
3. Food
Texture
4 Food
Aroma
5. Food
Packaging

Comments/Suggestions:
_________________________________________________________

_________________________
Name and Signature of the rater

APPENDIX C

(Market Survey Results)

SHS TEACHERS (1) (2) (3) (4) (5)

51
 52

Excellen Very Satisfactor Good Not Good

t Satisfactory y
1. Product Name:
6 2 1
EmpanaDabest
2. Health
Benefits: Low on
calories and fats
9 1
and has many
healthy
ingredients
3. Uniqueness of
my product: It
7 2 1
comes with
various shapes.
4. Price: Php.
4 5 1
5.00
5. Advantages of
my product: It is 6 3 1
affordable

(1) (2) (3)

(4) (5)
SHS STUDENTS Excellen Very Satisfactor
Good Not Good
t Satisfactory y
1. Product Name:
41 5 2
EmpanaDabest
2. Health
Benefits: Low on
calories and fats
31 15
and has many
healthy
ingredients
3. Uniqueness of
my product: It
34 7 4
comes with
various shapes.
4. Price: Php.
39 6
5.00
5. Advantages of my
product: It is affordable 42 4

APPENDIX D

(Food Tasting Results)

52
 53

(2)
SHS (1) (3) (4) (5)
Very
TEACHERS Excellent Satisfactory Good Not Good
Satisfactory
1. Food
10 4 1
Appearance
2. Food
11 4
Taste
3. Food
10 4 1
Texture
4. Food
10 4 1
Aroma
5. Food
5 8 1 1
Packaging

(2)
SHS (1) (3) (4) (5)
Very
STUDENTS Excellent Satisfactory Good Not Good
Satisfactory
1. Food
35 9 1
Appearance
2. Food
35 7 1
Taste
3. Food
36 13 2
Texture
4. Food
37 9
Aroma
5. Food
39 10 1
Packaging

APPENDIX E

(Business Jingle Lyrics)

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 54

Dom,domdomdomdomdom 4x
Haha 4x
Pas/timallos A filipino delicacy
Which is squishy and milky
filling your sweet heart undeniably
So what are you waiting for 2x
Go go go go
Grab a bite on those little delights
Relieve your stress with its sweetness
A heathy treat that you can always share
To your family , friends and loveones
It can also strengthen your bones to you skin.
Goodness in a mallow .
Oh oh oh oh
Clap clapclapclap clap
Step 1: get a marshmallow
Step 2: coat it by a pastilas
Simple steps that you should not miss
Living a taste that you cannot resist
PASTIMallows DELIGHT TO SIPS IN YOUR LIFE
So what are you waiting for!
(Original made tune)

54