PV name -

Team name - GeneSEEDS

Assignment Team members – Balino, Bayumbon,
Espiritu, Garcia, Petallo, Purganan,
Back-of-the-Envelope Calculation Sanchez

By now, not only have you identified a problem worth solving, but also have come up with some ideas
that can address the identified problem. Next, you need to check whether the ideas that you have
come up with are indeed financially viable or not.

To do that, you need to calculate the main costs and revenues associated with your business idea using
a simple template, Back of the Envelope Template. For this, pick the idea that you think has the most
potential. Take your facilitator’s guidance if you need help.

Instructions:

A. Fill up the Back of the Envelope Template given below.

1. Columns 1 and 2 are already filled for you. You may add to this list as required.
2. In Column 3, for each row, specify the entity or its value in your local currency, as applicable.
3. Once done, validate your estimates in 2 steps:
a. Verify whether the figures you have entered are reasonable by researching data through:
o Online industry sites
o Journals and newsletters connected to the industry
o Trade e-commerce sites
o Data from any other similar sources
Foundational Course in Entrepreneurship
b. Cross-check the figures with at least two experts from the market or other people who are
familiar with your sector.
4. After the validation, for every row that you are able to validate, write yes in Column 4.
5. Write the updated responses in Column 5.
6. You have 2 hours to complete this assignment.

B. You need to submit the assignment as PDF on LearnWise.

Back of the Envelope Template

Entity (Coffee shop/day care/ gym/eatery/tutorial/any other idea)
Innovation

Nature of Business (Product based/ service based)

Product based

Product (name of product)

GeneSEEDS

Location (Physical/virtual; if physical where – shopping mall, corner of the road, or highway)
Physical – King Kabayo, San Miguel, Bulacan
1 2 3 4 5
Opportunity Discovery Page 1 of 4
© Wadhwani Foundation For Students’ Use
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 PV name -
Team name - GeneSEEDS
Assignment Team members – Balino, Bayumbon,
Espiritu, Garcia, Petallo, Purganan,
Back-of-the-Envelope Calculation Sanchez

Entity Description Detail/Value Validated Updated

(yes/no) Value
No. of employees and their roles 1. General Manager Overall under- Yes Php
standing of all the 26,000/m
aspects of the onth
business.
Php 24,000 / mo
2. Quality Control Responsible for Yes Php
handling product 16,000/m
quality and onth
training of
employees.
Php 13,000 / mo
3. Production and Handle external Yes Php
Operations Manager relations with 24,000/m
community onth
leaders and
vendors.
Php 21,000 / mo
4. Office Manager Oversees every- Yes Php
Foundational Course in Entrepreneurship
thing involve that 19,000/m
are in production o
but may also
some marketing
duties.
Php 17,000 / mo
5. Marketing Manager Handles all aspect Yes Php
related to 21,000/m
promoting and o
selling the
products.
Php 19,000 / mo
6. Shipping and Responsible for Yes Php
packaging, order- 13,000/m
Receiving Manager
ing, trans o
-portation for
delivery, and
receiving
incoming
materials and
warehousing of
finish goods and
stocks.
Php 10,000 / mo
Opportunity Discovery Page 2 of 4
© Wadhwani Foundation For Students’ Use
www.nen.org V01
 PV name -
Team name - GeneSEEDS
Assignment Team members – Balino, Bayumbon,
Espiritu, Garcia, Petallo, Purganan,
Back-of-the-Envelope Calculation Sanchez

7. Receptionist Handles phone Yes Php

calls, handles the 13,000/m
mails, does the o
billing and
performs other
tasks required by
the office
manager.
Php 10,000 / mo
Setting up expenses Equipment  Extensive No
Research
Equipment(s)
 Mass seed
production
facility
 Packaging and
Quality control
warehouse
Technology – Continuous Yes
developing update of website
Foundational Course in Entrepreneurship
website/app; getting and promotion in
Point of Sale (POS) social media
machine; Internet using infographics
and video
informercials.
Legal/regulatory The project will Yes
obligations be limited to
what the sources
could provide and
produce the
product after
research as much
as possible to be
released in the
market.
Monthly expenses Rent P 101,367.00 Yes P 250,000
Note: If you think your cost is Electricity P 54,857.00 Yes P 100,00
applicable for an entire year, Salaries P 7,000,000 No
divide it by 12 and put the value approx
up in the relevant column Raw materials and P50,000 Yes P 75,000
supplies
Advertisement/ P 1,000,000 No
promotions approx.

Opportunity Discovery Page 3 of 4

© Wadhwani Foundation For Students’ Use
www.nen.org V01
 PV name -
Team name - GeneSEEDS
Assignment Team members – Balino, Bayumbon,
Espiritu, Garcia, Petallo, Purganan,
Back-of-the-Envelope Calculation Sanchez

Others, please specify -

Loan Monthly interest 30,000,000 No

Total approximate cost per P 7,500,000 No
month approx.
Estimated Price per unit Php 20 per sack No

Expected no. of customers per 200 to 500 Yes 600-1000

day
Expected sales per day (no. of 200,000 Yes 500,000
customers x average price )
Expected sales/revenue per P 10,000,000, No
month

Profit per month P 15,000,000 No

Business is feasible Yes/No/Maybe

Foundational Course in Entrepreneurship

Opportunity Discovery Page 4 of 4

© Wadhwani Foundation For Students’ Use
www.nen.org V01