RB BISCUIT CO.

ENTERPRISE ENHANCEMENT PLAN

&

FUNDING REQUEST

Small Business Corporation

InWent
Center for Small Entrepreneurs
September 2008
RG BISCUIT CO.

1. Executive Summary

RB Biscuit Co. is an offshoot of a previous business in the hard biscuit

industry. The proponent and main owner, Roque Belgado, had
previously been in the native hard biscuit business for 8 years.
However, because of certain circumstances the business was closed
down. Looking for a new partner, Belgado, was able to restart the
business under RB Biscuit Co.

The new company just produce one product, Paborita. It is a native

hard biscuit, circular in shape with a diameter of approximately 1¼
inches and around half an inch thick. It is baked in a brick oven thus
giving it a very distinct taste. RB Biscuit Co. prides itself that the taste
of its Paborita is 1 to 2 notches higher than competition. The hard
biscuit is packed at 12 pcs. per plastic pack. Each pack is sold at a
very affordable price of P10.00.

RB Biscuit Co. is located in Sta. Rosa Laguna. Its Paborita biscuit is

now sold in the provinces of Laguna, Batangas and Cavite, and in
Metro Manila. The company sells to snack food wholesalers in public
markets. The wholesalers, in turn, sell to retailers (sari-sari stores and
vendors), who then sells to the consuming public. In Metro Manila, RB
Biscuit Co. has a distributor who covers the whole of the National
Capital Region.

Over the past 2 years, Belgado has been able to grow RB Biscuit Co. to
a sales volume of over P8 million by tapping its old customers. Market
demand is growing but the company is unable to serve the
requirement because of lack of working capital.

RB Biscuit Co. plans to make a bold move to increase production and

sales from the current 3,000 bags per month to 5,600 bags per month
in the next 12 months. At the 3,000 bag level, production is only at
50%-60% capacity. RB Biscuit Co. would like to operate at the
maximum capacity of 5,800 bags per month on one shift. Except for
direct material costs, other expenses of the company will not
drastically increase by scaling up production from 3,000 bags per
month to 5,600 bags per month within the next 12 months. Thus RB
Biscuit Co. foresees increasing profits from P0.16 million per annum at
present to P1.25 million in the next 12 months.

Further, RB Biscuit Co. has targeted to increase production and sales to

11,000 bags per month to generate sales of P30 million in three years.
This can be done by increasing production, opening new markets, and

Sample Enterprise Enhancement Plan 2

RB Biscuit Co.
introducing a new product. The key to RB Biscuit Co.’s realization of its
3-year goal is increasing capacity immediately. But lack of funds is the
stumbling block. As such, RB Biscuit Co. is trying to secure a P500,000
loan to be used for working capital to scale up production.

2. Business Concept

Native biscuits started from the local “panaderya” or bakery. These

panaderyas started with baking breads such as pan de sal, pan de
limon, etc. To maximize use of the oven, the panaderyas or bakeries
started developing other baked food and snack items such as
ensaymada, pan de coco, monay, etc. These further expanded to
baking of hard native biscuits such as galletas, paborita, ogoy or ogoy-
ogoy, apas, etc.

Over time and with the intention of focusing on a market niche,

bakeries concentrated on just certain products. Some bakeries
completely stopped making bread and just baked various cookies and
biscuits. Because of financial constraints many small bakeries decided
to produce one or two products only. These small bakeries grew in
number. But this generated some positive effects. With just producing
a limited number of products, the bakery was able to improve the
quality of the product. And with its expertise in just baking and selling
a few products, these small bakeries were able to lower their costs and
ultimately the selling price.

RB Biscuit Co. is one of these small bakeries currently producing just

one product, Paborita, a hard biscuit.

3. Description of the Business

RB Biscuit Co. is an offshoot from a previous business. Roque Belgado

and his cousin, Joselito Villania, started a hard biscuit bakery business
in 1998 in Sta Rosa, Laguna. The bakery was set up in the lot owned
by Joselito Villania.

They produced basically two kinds of hard biscuits only, Paborita and
Ogoy-Ogoy (or Ogoy). Paborita is a circular biscuit around 1½ inches
in diameter and about half an inch thick. Ogoy-ogoy is a rectangular
biscuit ½ inch wide, around 2 inches long and half an inch thick and
topped with brown sugar. Both Paborita and Ogoy are snack foods
enjoyed by children and adults alike.

The hard biscuit business of Belgado and Villania grew. From Sta.
Rosa, Laguna, the cousins started distributing the biscuits to other
Laguna towns and then to neighboring provinces, reaching up to Metro

Sample Enterprise Enhancement Plan 3

RB Biscuit Co.
Manila. Villania was responsible for production, while Belgado handled
marketing. The biscuits were sold in volume to wholesalers, who in
turn sell the biscuits to retailers such as sari-sari stores or vendors.

The hard biscuits the pair baked tasted very good which is the reason
for its growth. The secret to the good taste, aside from the mixture,
was in the baking. While most of the biscuit makers now use LPG
ovens, Belgado & Villania still baked their biscuits in a brick oven which
gives it a very distinct taste.

In 2004, Villania became very sick. He could not oversee production

properly and as the months past he fell deep into debt. With
production being erratic, the business started incurring losses. Finally
in 2005, the cousins agreed to shut down the business.

Seeing the potential of the business, Belgado started looking for other
partners. He felt that with his seven years in the business and with
properly trained staff he can handle already both production and
marketing. Belgado was able to convince a long-time friend, Rodolfo
Santiago to invest in the business. Santiago infused some capital and
agreed to lend the business a loan.

In 2007, Belgado and Santiago set-up and registered RB Biscuit Co. It

was decided to just make the Paborita biscuit first and just expand as
the years go by. Belgado hired a good baker and kneader to ensure
that the taste of the previous Paborita biscuit is replicated. He then
visited all their former wholesalers and distributors, was able to
convince them and was able to get orders. He also started opening up
new markets. The company now sells the Paborita biscuit in Laguna,
Batangas and Cavite. The company has a distributor who was given
the right to solely distribute the product in Metro Manila.

The Paborita is packed in plastic bags at 12 pcs. per pack. It is then

packed in big plastic bags at 30 packs per bag. The biscuit is sold to
wholesalers at P7.50 per pack or P225 per bag. The biscuit is sold
retail at P10.00 per pack.

The bakery is operating only at around 50%-60% capacity. Belgado

sees that the company can sell in other municipalities and even
possibly move south east to Quezon and Bicol areas. The company
plans to increase production by 40% within the next 12 months.

4. Vision of the Business

In three years, RB Biscuit Co. sees itself to be delivering hard biscuits

from Metro Manila, through the Southern Tagalog region and then into

Sample Enterprise Enhancement Plan 4

RB Biscuit Co.
the Bicol area. It will retain its distribution method of selling to
wholesalers in public markets or assigning distributors in certain
localities. This way it does not need to maintain its own extensive
sales force.

RB Biscuit Co. also intends to increase the number of biscuits it

produces. Aside from the Paborita, the company intends to produce
already the Ogoy-ogoy. The baking process is basically the same. The
only difference is that brown sugar is sprinkled on the Ogoy-ogoy prior
to baking.

RB Biscuit Co. is targeting to increase its sales volume from the current
P8 million to P30 million in three years, with a net income objective of
P2.6 million. The company sees the potential for growth especially in
these hard times. Because of rising costs of most products, consumers
are now more “Peso”-conscious. They are looking for cheaper
products and substitutes but which will give them almost the same
value and satisfaction. RB Biscuit Co. projects that , as long as wheat
flour prices do not drastically increase, it can maintain its low selling
price. With its good taste and low price, RB Biscuit Co. projects that its
sales will continually increase.

To be able to realize this 3-year vision of RB Biscuit Co. it needs to

expand operations at once. However, currently RB Biscuit Co. does not
have enough funds to purchase additional equipment and for the
needed increased working capital. As such, the company is trying on
securing a P500,000 loan from a financial institution. When the
business increases its production and sales capacity, the cash flow will
be very positive as will be shown at the latter part of this Enterprise
Enhancement Plan. However, in order to be able to achieve this
positive cash flow, additional funds have to be infused to be able to
scale up production immediately.

5. Marketing Plan

RB Biscuit Co. is duplicating the business model employed by Belgado

and Villania in their previous partnership. This has proven to be
successful before, and the company does not see problems in
replicating the previous business.

a. Product

Although the facilities of RB Biscuit Co. can produce a variety of

biscuits, it decided to just produce one product first, the Paborita
hard biscuit. The reasons for this move are:

Sample Enterprise Enhancement Plan 5

RB Biscuit Co.
 - the company’s production staff has already mastered the
process;
- the company does not have the facilities to produce the more
expensive biscuits; and
- the company is targeting the bigger C-D-E market.

However, RB Biscuit Co. sees that it is now time to produce also

Ogoy-ogoy. The mixture and baking process of both Paborita
and Ogoy-ogoy is basically the same.

Paborita is a circular biscuit around 1½ inches in diameter and

about half an inch thick. Ogoy-ogoy is an elongated biscuit ½
inch wide, around 2 inches long and half an inch thick and
sprinkled at the top with brown sugar.

The biscuits are packed at 12 pcs. per pack. Then 30 packs are
placed in a big plastic bag. These are sold in bags to wholesalers
and retailers. The company does not sell by the pack.

Both products will be positioned as a cheap yet delicious snack

food. Previous feedback received that it was good with coffee or
soft drinks.

There are over a dozen bakeries making Paborita, but most of

these do not distribute the product extensively. In the Metro
Manila and Southern Tagalog area, RB Biscuit Co.’s main
competitors are Zee Bakery in Batangas, Pedro Co from Mindoro
and Variety Snacks from Bulacan.

Zee Bakery and Pedro Co sells a variety of bakery products aside

from the hard biscuits. Variety Snacks produces only hard
biscuits. Zee Bakery and Pedro Co uses an LGP oven and RB
Biscuit Co. does not see them as much of a threat in terms of
taste and quality of the biscuit. Variety Snack uses a brick oven,
but feedback from wholesalers in the public markets, the
perception is that RB Biscuit Co.’s Paborita tastes better.
Another major difference between RB Biscuit Co.’s Paborita and
that of Variety Snacks is the size of the product and packaging.
Variety Snacks’ Paborita is larger at around 2 inches. Further, RB
Biscuit Co.’ packs Paborita in 50 grams, while Variety Snacks
packs their biscuit in 80 grams.

b. Price

Sample Enterprise Enhancement Plan 6

RB Biscuit Co.
 The Paborita and Ogoy-ogoy biscuits of RB Biscuit Co. shall be
retailed at P10.00 per pack. The recommended pricing scheme
is as follows:

For Wholesalers
Per Pack Per Bag
Factory price 7.50 225.00
Wholesaler’s mark-up .75 22.50
Price to retailers 8.25 247.50
Retailer’s mark-up 1.75 52.50
Retail Price 10.00 300.00

For Distributors
Per Pack Per Bag
Factory price 7.50 225.00
Distributor’s mark-up .25 7.50
Price to wholesaler 7.75 232.50
Wholesaler’s mark-up .50 15.00
Price to retailers 8.25 247.50
Retailer’s mark-up 1.75 60.00
Retail Price 10.00 300.00

The retail prices of RB Biscuit Co.’s competitors are as follows:

- Zee Bakery - P8.00/pack (50 grams)

- Pedro Co - P10.00/pack (50 grams)
- Variety Snacks - P15.00/pack (80 grams)

RB Biscuit Co. does not assess Zee Bakery and Pedro Co as

serious threats because of product quality. Their biscuits are
baked in LPG ovens and the taste is not as good as biscuits
baked in a brick oven. Variety Snack is more of the major
competitor. Effectively Variety Snack’s biscuit costs P0.1875 per
piece, while that of RB Biscuit Co. is P0.20 per piece. However, it
is assessed that it would be lighter for a consumer to shed off
P10 for a snack versus P15. Thus, RB Biscuit Co. decided that it
will not match Variety Snack’s packaging size.

c. Place

RB Biscuit Co. does not sell retail to the general public. Instead
the Paborita is sold in bags of 30 packs to wholesalers and
distributors. In the provinces of Laguna, Batangas and Cavite,

Sample Enterprise Enhancement Plan 7

RB Biscuit Co.
 there are wholesalers in public markets. There is no exclusivity
for a wholesaler. Thus in a public market there can be more than
one wholesaler of the Paborita. If a particular wholesaler asks for
exclusivity, RB Biscuit Co. assesses the potential of the particular
market and gives the wholesaler a weekly quota.

Retailers, such as sari-sari stores and snacks vendors, buy the

biscuit from the wholesaler also on a per bag basis. The retailers
then sell directly to the public.

In Sta. Rosa, Laguna, retailers can buy directly from the company
at the factory price of P225/bag pick-up. This does not affect the
wholesalers in Sta. Rosa, Laguna because the biscuits are
delivered to the wholesalers, whereas the retailer has to spend
for transportation to pick up the bags of biscuits.

For Metro Manila, a distributor was assigned. The distributor has

exclusive rights to sell in Metro Manila. RB Biscuit Co. does not
sell to the wholesalers in the public markets in Metro Manila. The
distributor in Metro Manila distributes to the wholesalers at his
own expense. Aside from the Paborita of RB Biscuit Co., the
distributor also carries various snack food items.

d. Promotion

The company does not do any promotion. The wholesalers are

requested to tell retailers to tell the consumers to just serve the
Paborita in replacement for sandwiches in funerals and
gatherings. It comes out cheaper.

6. Sales Plan

Currently, RB Biscuit Co.’s monthly sales volume is only 3,000 bags.

The brick oven and production capacity can produce a maximum of
5,824 bags per month in one 8-hour shift. The potential maximum
production capacity of RB Biscuit Co. is 17,471 bags per month
operating at three shifts. At P225 per bag, maximum potential sales of
RB Biscuit Co. is P3.9 million per month or P47 million per year.

At its current production volume, RB Biscuit Co.’s profits is only

P160,000 per year. However, at full capacity, profitability can be as
high as P3.4 million per year. ANNEX A shows the Sales and Costs Plan
for RB Biscuit Co.’s current production and sales volume of 3,000 bags
per month. ANNEX B shows the profitability picture at a production
and sales volume of 5,824 bags per month.

Sample Enterprise Enhancement Plan 8

RB Biscuit Co.
This is the sales objective of RB Biscuit Co., to increase sales from the
current 3,000 bags of Paborita per month to 5,600 bags per month on
a combination of Paborita and Ogoy-ogoy for the first year.

The oven is currently being used at only 50%-60% capacity. At

present, there are only 5-8 baking cycles per day, whereas the oven
can be run for 14-16 baking cycle per 8-hour day. There is still a lot of
oven capacity to accommodate the projected 40% increase in
production. Thus there will be no major investment required.

The production staff of RB Biscuit Co. are paid on a daily basis based
on an 8-hour work, even if there are only 5-8 baking cycles per day.
The workers are paid the full 8 hours wages but effectively providing
only 4 hours of work. Thus the increase in production capacity will also
not drastically increase production staff salaries and wages.

RB Biscuit Co. has an ambitious plan of producing and selling 11,000

bags per month of Paborita and Ogoy-ogoy in three years. This will
result in a annual sales volume of P30 million. ANNEX C details the
sales expansion program of RB Biscuit Co. for the next three years.

7. Production

To produce Paborita, wheat flour, sugar, yeast and a little cooking oil is
mixed in a heavy duty, industrial-type mixer. The Paborita mixture is
allowed to set for a few minutes then is passed to the kneader so that
the desired consistency is reached for the whole mixture. The Paborita
mixture passes through the kneader a number of times then laid on
the cutting table. A cutting die is used so that in one cut 192 pcs. are
made. The excess mixture is sent back to the kneader.

The formed Paborita rounds are then laid out on baking trays. The
baking trays match the cutting dies such that each baking tray
accommodates 192 pcs. A little cooking oil is wiped on the baking
trays prior to laying of the Paborita rounds.

The trays are then placed in the brick oven for baking. The oven can
accommodate 30 trays in one baking cycle. The Paborita is then baked
for 20 minutes. Wood is used as fuel and this gives RB Biscuit Co.’s
Paborita a distinctive taste. The mixer, the person who operates the
mixer, is also the baker.

When baked, the Paborita are placed in biscuit bins were it is cooled
then packed in small plastic packs at 12 pcs. per pack. The Paborita
packs are then placed in a big plastic bag at 30 packs per bag. The
Paborita bags are then stored for the next delivery.

Sample Enterprise Enhancement Plan 9

RB Biscuit Co.
ANNEX D shows the Business Process Workflow of the Paborita
business.

8. Business Requirements

a. Staffing and Costs

The Production Section of the business shall have a total of 9

employees. The Production Supervisor and 8 workers.

The Administration and Sales Section is headed by Gina Belgado,

the wife of Roque Belgado. She has a staff of 5 employees.

Roque Belgado is President of the company.

The staffing compliment of the business and the salary schedule

is shown in ANNEX E.

The staff costs will not drastically increase even if production in

increased from 3,000 bags per month to 5,600 bags per month.
Actually the current production staff is overpaid. Actual work
done is only about 4-5 hours but they are still paid for an 8-hour
day.

b. Business Organization

The organizational structure of RB Biscuit Co. is very simple and

lean. This is shown below.

President
Roque Belgado

Administration & Sales Manager Production Supervisor

Gina Belgado Jose Icayan

Secretary/ Admin Clerk Mixer/ Baker

Bookkeeper Kneader/ Cutter

Driver / Sales Assistant Kneader

Delivery Helper Packers (3)

Sample Enterprise Enhancement Plan 10

RB Biscuit Co.
 Utility Sealer/ Packer

Stockman/ Bagger

Roque Belgado, as President, has general management

responsibility. Though the Sales function is directly under the
Administration & Sales Manager, Roque Belgado shall be deeply
involved in Marketing. He will principally be responsible for
opening new markets.

Gina Belgado, the Administration and Sales Manager, shall be

responsible for the office.

Jose Icayan, who was the baker in the previous bakery of Belgado
with his cousin, will be responsible for production.

c. Equipment

The company‘s equipment and other assets, exclusive of the

land, are enumerated in ANNEX F, including the value for each.
The critical equipment for RB Biscuit Co. is the brick oven. The
oven structure itself is good for 10 years. However, every 3-5
years the brick lining have to be replaced depending on the use
of the oven and this is a substantial investment. The current
oven’s bricks are still good for another 2 years.

d. Space Requirement

The bakery, where RB Biscuit Co. is presently operating, was the

facility used when Belgado and Villania were still partners.
Belgado offered to buy the land and the bakery within the
property. The loan provided by Rodolfo Santiago was used to
buy the land and all the physical structures, including the brick
oven.

The bakery layout is shown in ANNEX G.

The lot still has some empty and unused space. If business
demand increases drastically, the bakery can be expanded with
the construction of another brick oven.

e. Other Costs

Sample Enterprise Enhancement Plan 11

RB Biscuit Co.
 The Projected Other Costs (operating costs) of the business for
the next 12 months is shown in ANNEX H. The major operating
expenses are power, gas/delivery and taxes & licenses. In the
direct material costings, the water used as direct material is for
the biscuit mixture. The water in Other Costs is for equipment &
facilities washing and human cleansing use.

f. Business Inputs

The projected raw material (business inputs) requirements for

the next 12 months are enumerated in ANNEX I. The raw
material requirements are based on the increasing production
during the year. The major raw material component is the wheat
flour and the wood used as fuel in the brick oven.

g. Material Costs

The costs of the business inputs enumerated in (f) above is

shown in ANNEX J.

h. Depreciation

The depreciation computation of the company’s physical assets

is shown in the depreciation table in ANNEX K.

i. Interest Cost

The company has a P1.5 million loan from Rodolfo Santiago. This
carries an interest of 15% per annum and payable over a 3-year
period. Twenty one (21) amortizations have already been paid
by RB Biscuit Co. and only 15 months remain. The interest costs
and amortization computation table for the next 12 months is
shown in ANNEX L.

8. Sales and Costs Plan

The Sales and Costs Plan (or Projected Income Statement) of RB Biscuit
Co. for the next 12 months is shown in ANNEX M. Based on the Sales
and Costs Plan, the company is targeting to increase production and
sales to 5,600 bags per month of Paborita and Ogoy-ogoy. The
projected revenues for the next 12 months is P14 million which will
earn a projected net profit of around P1.25 million. This is expected to
be realized with almost all expenses not drastically increasing except
for direct materials.

9. Cash Flow Plan

Sample Enterprise Enhancement Plan 12

RB Biscuit Co.
The Cash Flow Plan for the next 12 months is shown in ANNEX N.
Based on the cash flow plan, the business will not experience funds
problem for its operations provided that it can scale up production and
sales immediately with the infusion of around P500,000 in funds.

The achievement of the cash flow plan, aside from increasing sales, is
based on collection efficiency. The company has not really
experienced major collection problems, mainly because of its one-
up/one-down delivery and collection policy. Products delivered on the
first week have to be paid by the next delivery. If the client does not
pay for the previous weeks’ orders, the products for the second week
are not given to him.

10. Conclusion - Intent

Based on the evaluation of the market, the business has potential to

generate more profits. However, this is premised on scaling up
production and sales immediately. Clients’ demand has been
increasing but RB Biscuit Co. lacks the funds to be able to increase
production at once. Other wholesalers in current public markets that
the company serves have been asking that RB Biscuit Co. also deliver
to them. Further, the company assesses that it can penetrate other
public markets in other municipalities or cities.

Secondly, the company plans to start making a second product, the

Ogoy-ogoy biscuit. The technology for producing Ogoy-ogoy is
basically the same as in the Paborita production. Further, since RB
Biscuit Co. already has the distribution set-up for its Paborita, the
Ogoy-ogoy will just piggy-back on this distribution system.

It is the intention of RB Biscuit Co. to borrow P500,000 to fund this

expansion program. Given the funds, the company can immediately
scale up production and serve the increasing market. Once the
increased sales are realized, RB Biscuit Co. will be very cash positive as
shown in the Cash Flow Plan. The main reason it is experiencing cash
flow problems is because it is operating below capacity. Once
production capacity is optimized, then much cash will flow in.

ANNEX O shows the amortization table for a P500,000 loan at an

interest of 12% p.a. and payable over a 2-year period. RB Biscuit Co.’s
Cash Flow Plan shows that the company can easily pay for the monthly
installments of P23,000. Further, the sales and costs plan also shows
that it can absorb the interest on the loan.

Sample Enterprise Enhancement Plan 13

RB Biscuit Co.
RB Biscuit Co. knows that it can grow and expand. All it needs is a
little credit facility to move forward.

Sample Enterprise Enhancement Plan 14

RB Biscuit Co.
 ANNEX A

RB BISCUIT CO.
SALES & COSTS PLAN - PABORITA - CURRENT OPERATIONS

Month
1 2 3 4 5 6 7 8 9 10 11 12 Annual
Sales:
Quantity-Paborita (bags) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Quantity-Ogoy-ogoy (bags) 0 0 0 0 0 0 0
Wholesale Price per Bag 225 225 225 225 225 225 225 225 225 225 225 225
TOTAL SALES 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 8,100,000

Direct Material Costs - Paborita 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 303,941 3,647,293
Direct Material Costs - Ogoy-ogoy - - - - - - 0
Direct Labor Costs 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 55,453 665,440
TOTAL DIRECT COSTS 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 359,394 4,312,733

GROSS MARGIN 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 315,606 3,787,267

Indirect Costs
Staff Costs 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 73,213 878,560
Other Costs 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 726,000
Depreciation 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 154,873 1,858,480
TOTAL INDIRECT COSTS 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 288,587 3,463,040

NET PROFIT BEFORE

FINANCING 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 27,019 324,227
Interest Costs 9,373 8,840 8,301 7,754 7,201 6,641 6,074 5,500 4,919 4,331 3,735 3,131 75,801
NET PROFIT FROM OPERATIONS 17,646 18,179 18,718 19,265 19,818 20,378 20,945 21,519 22,100 22,688 23,284 23,887 248,426
Provision for Income Tax 6,176 6,363 6,551 6,743 6,936 7,132 7,331 7,532 7,735 7,941 8,149 8,361 86,949
NET PROFIT 11,470 11,816 12,167 12,522 12,881 13,245 13,614 13,987 14,365 14,747 15,135 15,527 161,477

Sample Enterprise Enhancement Plan 15

RB Biscuit Co.
 ANNEX B

RB BISCUIT CO.
SALES & COSTS PLAN - PABORITA - ONE-SHIFT MAXIMUM CAPACITY

Month
1 2 3 4 5 6 7 8 9 10 11 12 Annual
Sales:
Quantity-Paborita (bags) 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 5,824 69,888
Quantity-Ogoy-ogoy
(bags) 0 0 0 0 0 0 0
Wholesale Price per Bag 225 225 225 225 225 225 225 225 225 225 225 225
1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 1,310, 15,724,80
TOTAL SALES 400 400 400 400 400 400 400 400 400 400 400 400 0

Direct Material Costs - 397,2 397,2 397,2 397,2 397,2 397,2 397, 397, 397, 397, 397, 397,
Paborita 46 46 46 46 46 46 246 246 246 246 246 246 4,766,952
Direct Material Costs - Ogoy-
ogoy - - - - - - 0
Direct Labor Costs 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 919,944
473, 473, 473, 473, 473, 473, 473, 473, 473, 473, 473, 473,
TOTAL DIRECT COSTS 908 908 908 908 908 908 908 908 908 908 908 908 5,686,896

836, 836, 836, 836, 836, 836, 836, 836, 836, 836, 836, 836, 10,037,90
GROSS MARGIN 492 492 492 492 492 492 492 492 492 492 492 492 4

Indirect Costs
92,9 92,9 92,9 92,9 92,9 92,9 92,9 92,9 92,9 92,9 92,9 92,9
Staff Costs 11 11 11 11 11 11 11 11 11 11 11 11 1,114,928
108, 108, 108, 108, 108, 108, 108, 108, 108, 108, 108, 108,
Other Costs 208 208 208 208 208 208 208 208 208 208 208 208 1,298,496
189, 189, 189, 189, 189, 189, 189, 189, 189, 189, 189, 189,
Depreciation 073 073 073 073 073 073 073 073 073 073 073 073 2,268,880
390, 390, 390, 390, 390, 390, 390, 390, 390, 390, 390, 390, 4,682,30
TOTAL INDIRECT COSTS 192 192 192 192 192 192 192 192 192 192 192 192 4

NET PROFIT BEFORE 446, 446, 446, 446, 446, 446, 446, 446, 446, 446, 446, 446, 5,355,60
FINANCING 300 300 300 300 300 300 300 300 300 300 300 300 0
9,3 8,8 8,3 7,7 7,2 6,6 6,0 5,5 4,9 4,3 3,7 3,1 75,80
Interest Costs 73 40 01 54 01 41 74 00 19 31 35 31 1
NET PROFIT FROM 436, 437, 437, 438, 439, 439, 440, 440, 441, 441, 442, 443, 5,279,79
OPERATIONS 927 460 999 546 099 659 226 800 381 969 565 169 9

Sample Enterprise Enhancement Plan 16

RB Biscuit Co.
 152, 153, 153, 153, 153, 153, 154, 154, 154, 154, 154, 155, 1,847,93
Provision for Income Tax 925 111 300 491 685 881 079 280 483 689 898 109 0
284, 284, 284, 285, 285, 285, 286, 286, 286, 287, 287, 288, 3,431,8
NET PROFIT 003 349 700 055 414 778 147 520 898 280 667 060 69

Sample Enterprise Enhancement Plan 17

RB Biscuit Co.
 ANNEX C

RB BISCUIT CO.
CUSTOMERS & SALES

Year 1 Target Sales - Year 2 Target Sales - Year 3 Target Sales –

PABORITA Current Sales - PABORITA PABORITA PABORITA PABORITA
Pri Pri
Bag Bag Pric Bag Bag Pric Bag Bag ce/ Bag ce/
CUSTOMERS / s/ s/ e/ Sales/ s/ s/ e/ Sales/ s/ s/ Ba Sales/ s/ Bags Ba Sales/
OUTLETS Wk Mo Bag Mo. Wk Mo Bag Mo. Wk Mo g Mo. Wk / Mo g Mo.
LAGUNA LAGUNA
Sta. Rosa 10 40 22 90, Sta. Rosa 22 117,00
1 (factory) 0 0 5 000 1 (factory) 120 480 225 108,000 130 520 5 0 140 560 225 126,000
6 24 22 54, 22
2 Biñan 0 0 5 000 2 Biñan 70 280 225 63,000 80 320 5 72,000 90 360 225 81,000
8 32 2 72, 22
3 Cabuyao 0 0 25 000 3 Cabuyao 90 360 225 81,000 100 400 5 90,000 110 440 225 99,000
8 32 2 72, 22
4 Calamba 0 0 25 000 4 Calamba 90 360 225 81,000 100 400 5 90,000 110 440 225 99,000
4 16 2 36, San 22
5 San Pablo 0 0 25 000 5 Pablo 50 200 225 45,000 60 240 5 54,000 70 280 225 63,000
Los 22
6 Baños 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
22
7 Alaminos 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
Total- 3 1,4 Total- 1,84 2,12 477,00 2,40
Laguna 60 40 Laguna 460 0 414,000 530 0 0 600 0 540,000

BATANGA BATANG
S AS
Batangas
Batangas 9 36 2 81, & Lipa 22 108,00
6 & Lipa City 0 0 25 000 8 City 100 400 225 90,000 120 480 5 0 130 520 225 117,000
Sto. 6 24 2 54, Sto. 22
7 Tomas 0 0 25 000 9 Tomas 70 280 225 63,000 80 320 5 72,000 90 360 225 81,000
2 8 2 18, 1 22
8 Tanauan 0 0 25 000 0 Tanauan 30 120 225 27,000 30 120 5 27,000 40 160 225 36,000
1 22
1 San Juan 0 225 0 20 80 5 18,000 30 120 225 27,000
1 22
2 Ibaan 0 225 0 20 80 5 18,000 30 120 225 27,000
Total- 17 68 Total- 1,08 243,00 1,28
Batangas 0 0 Batangas 200 800 180,000 270 0 0 320 0 288,000

Sample Enterprise Enhancement Plan 18

RB Biscuit Co.
 CAVITE CAVITE
4 16 2 36, 1 22
9 Carmona 0 0 25 000 3 Carmona 50 200 225 45,000 60 240 5 54,000 70 280 225 63,000
1 4 16 2 36, 1 22
0 GMA 0 0 25 000 4 GMA 50 200 225 45,000 60 240 5 54,000 70 280 225 63,000
1 Trece 2 8 2 18, 1 Trece 22
1 Martires 0 0 25 000 5 Martires 30 120 225 27,000 40 160 5 36,000 50 200 225 45,000
1 2 8 2 18, 1 22
2 Silang 0 0 25 000 6 Silang 30 120 225 27,000 40 160 5 36,000 50 200 225 45,000
1 22
7 Naic 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
1 22
8 Indang 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
1 22
9 Alfonso 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
Total- 15 48 Total- 1,04 234,00 1,32
Cavite 0 0 Cavite 190 760 171,000 260 0 0 330 0 297,000

METRO METRO
MANILA MANILA
1 Jun 10 40 2 90, 2 Jun 22 135,00
3 Villania 0 0 25 000 0 Villania 120 480 225 108,000 150 600 5 0 180 720 225 162,000

MINDOR
O
2 22
1 Calapan 0 225 0 0 5 0 30 120 225 27,000
2 Puerto 22
2 Galera 0 225 0 0 5 0 30 120 225 27,000
Total
-Mindoro 0 0 0 0 0 0 60 240 54,000

QUEZON
2 22
3 Sariaya 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
2 22
4 Tiaong 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
2 Candelar 22
5 ia 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
2 22
6 Lucena 10 40 225 9,000 20 80 5 18,000 30 120 225 27,000
Total-
Quezon 40 160 36,000 80 320 72,000 120 480 108,000

CAMARINES
NORTE

Sample Enterprise Enhancement Plan 19

RB Biscuit Co.
 2 Sta. 22
7 Elena 0 225 0 20 80 5 18,000 30 120 225 27,000
2 22
8 Labo 0 225 0 20 80 5 18,000 30 120 225 27,000
2 22
9 Daet 0 225 0 20 80 5 18,000 30 120 225 27,000
Total-
Cam
Norte 0 0 0 60 240 54,000 90 360 81,000

7 3,0 675, 1,0 4,0 1,3 5,4 1,215, 1,7 6,80 1,530,
TOTAL 80 00 000 TOTAL 10 40 909,000 50 00 000 00 0 000
ANNUAL SALES - 8,100, 10,908 14,580 18,360
PABORITA 000 ,000 ,000 ,000

Current Sales - OGOY- Year 1 Target Sales-OGOY- Year 2 Target Sales- Year 3 Target Sales-OGOY-
OGOY-OGOY OGOY OGOY OGOY-OGOY OGOY
Pri Pri
Bag Bag Pric Bag Bag Pric Bag Bag ce/ Bag ce/
CUSTOMERS / s/ s/ e/ Sales/ s/ s/ e/ Sales/ s/ s/ Ba Sales/ s/ Bags Ba Sales/
OUTLETS Wk Mo Bag Mo. Wk Mo Bag Mo. Wk Mo g Mo. Wk / Mo g Mo.
LAGUNA LAGUNA
Sta. Rosa Sta. Rosa 22
1 (factory) 1 (factory) 50 200 225 45,000 70 280 5 63,000 90 360 225 81,000
22
2 Biñan 2 Biñan 30 120 225 27,000 50 200 5 45,000 60 240 225 54,000
22
3 Cabuyao 3 Cabuyao 30 120 225 27,000 50 200 5 45,000 60 240 225 54,000
22
4 Calamba 4 Calamba 30 120 225 27,000 50 200 5 45,000 60 240 225 54,000
San 22
5 San Pablo 5 Pablo 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
Los 22
6 Baños 0 225 0 20 80 5 18,000 30 120 225 27,000
22
7 Alaminos 0 225 0 20 80 5 18,000 30 120 225 27,000
Total- Total- 1,16 261,00 1,48
Laguna Laguna 160 640 144,000 290 0 0 370 0 333,000

BATANGA BATANG
S AS

Sample Enterprise Enhancement Plan 20

RB Biscuit Co.
 Batangas
Batangas & Lipa 22
6 & Lipa City 8 City 50 200 225 45,000 70 280 5 63,000 90 360 225 81,000
Sto. Sto. 22
7 Tomas 9 Tomas 30 120 225 27,000 40 160 5 36,000 50 200 225 45,000
1 22
8 Tanauan 0 Tanauan 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
1 22
1 San Juan 0 225 0 10 40 5 9,000 20 80 225 18,000
1 22
2 Ibaan 0 225 0 10 40 5 9,000 20 80 225 18,000
Total- Total- 144,00
Batangas Batangas 100 400 90,000 160 640 0 220 880 198,000

CAVITE CAVITE
1 22
9 Carmona 3 Carmona 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
1 1 22
0 GMA 4 GMA 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
1 Trece 1 Trece 22
1 Martires 5 Martires 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
1 1 22
2 Silang 6 Silang 20 80 225 18,000 30 120 5 27,000 40 160 225 36,000
1 22
7 Naic 0 225 0 10 40 5 9,000 20 80 225 18,000
1 22
8 Indang 0 225 0 10 40 5 9,000 20 80 225 18,000
1 22
9 Alfonso 0 225 0 10 40 5 9,000 20 80 225 18,000
Total- Total- 135,00
Cavite Cavite 80 320 72,000 150 600 0 220 880 198,000

METRO METRO
MANILA MANILA
1 Jun 2 Jun 22
3 Villania 0 Villania 60 240 225 54,000 80 320 5 72,000 120 480 225 108,000

MINDOR
O
2 22
1 Calapan 0 225 0 0 5 0 30 120 225 27,000
2 Puerto 22
2 Galera 0 225 0 0 5 0 30 120 225 27,000
Total
-Mindoro 0 0 0 0 0 60 240 54,000

Sample Enterprise Enhancement Plan 21

RB Biscuit Co.
 QUEZON
2 22
3 Sariaya 0 225 0 10 40 5 9,000 20 80 225 18,000
2 22
4 Tiaong 0 225 0 10 40 5 9,000 20 80 225 18,000
2 Candelar 22
5 ia 0 225 0 10 40 5 9,000 20 80 225 18,000
2 22
6 Lucena 0 225 0 10 40 5 9,000 20 80 225 18,000
Total-
Quezon 0 0 0 40 160 36,000 80 320 72,000

CAMARINES
NORTE
2 Sta. 22
7 Elena 0 225 0 10 40 5 9,000 20 80 225 18,000
2 22
8 Labo 0 225 0 10 40 5 9,000 20 80 225 18,000
2 22
9 Daet 0 225 0 10 40 5 9,000 20 80 225 18,000
Total-
Cam
Norte 0 0 0 30 120 27,000 60 240 54,000

1,6 3,0 675,00 1,1 4,52 1,017,

TOTAL TOTAL 400 00 360,000 750 00 0 30 0 000
ANNUAL SALES - OGOY- 4,320,0 8,100, 12,204
OGOY 00 000 ,000

1,4 5,6 2,1 8,4 2,8 11,3

GRAND TOTAL - BAGS 10 40 00 00 30 20
GRAND TOTAL - MONTHLY 1,269,0 1,890, 2,547,
SALES 00 000 000
GRAND TOTAL - ANNUAL 15,228, 22,680 30,564
SALES 000 ,000 ,000

Sample Enterprise Enhancement Plan 22

RB Biscuit Co.
 ANNEX D

RB BISCUIT CO.

BUSINESS PROCESS WORKFLOW

Planning:
Prod Plan
Marketing Purchasing
Delivery Collection

Cutting & Packing &

Mixing Kneading Lay out Baking Packaging

Production / OperatIons

Administration / Management

Sample Enterprise Enhancement Plan 23

RB Biscuit Co.
 ANNEX E

STAFF COSTS

STAFF REQUIREMENT STAFF COSTS

SSS, PH, PI
Basic Salary 13th Total Salary Total Salary
No. Designation Qualification (12% of
Per Month Month Pay Per Month Per Year
Basic)
Production Staff
1 Production Supv. 12,000 1,440 1,000 14,440 173,280
2 Mixer/Baker 10,000 1,200 833 12,033 144,400
3 Kneader/Cutter 7,800 936 650 9,412 112,944
4 Asst. Kneader 6,500 780 542 7,848 94,172
5 Packers (3) 15,600 1,872 1,300 18,798 225,576
6 Sealer/Packer 5,720 686 477 6,909 82,909
7 Stockman/Bagger 5,980 718 498 7,222 86,663

TOTAL 76,662 919,944

Administration & Marketing Staff

1 President 30,000 3,600 2,500 36,100 433,200
2 Admin & Sales Mgr. 20,000 2,400 1,667 24,067 288,800
3 Sec/Admin Clerk 7,280 874 607 8,786 105,435
4 Bookkeeper 7,280 874 607 8,786 105,435
5 Utility 5,720 686 477 6,909 82,909
6 Driver/Sales 6,500 780 542 7,848 94,172
7 Delivery Asst. 5,200 624 433 6,283 75,400

TOTAL 98,779 1,185,351

TOTAL STAFF COSTS 175,441 2,105,295

Sample Enterprise Enhancement Plan 24

RB Biscuit Co.
 ANNEX F

EQUIPMENT

ADDITIONAL EQUIPMENT
CURRENT NEEDED
Type of Qt Unit Qt Unit
Equipment Specifications y Cost Cost y Cost Cost
PRODUCTION
50 kg cap., single offset
Mixer rotary blade, 2 Hp 43, 43,0
motor, 220v, 1Ø 1 000 00
50 kg cap., single roller
Kneading Machine type, 1 Hp motor, 220v, 5 5
1Ø 1 0,000 0,000
Cutting dies - Stainless Steel, 1.25"Ø 3 1 40
Paborita per out, 12x16 outs 4 8,000 2,000 4 0,000 ,000
Stainless Steel,
Cutting dies -
0.5"x2.0" per out, 32
Ogoy-ogoy
24"x11", 256 outs 4 8,000 ,000
Brick Type, wood fired,
Brick Oven 12' x 12' oven area, 3 8 8
levels 1 0,000 0,000
Oven Paddle
Wood, 12' long 2 800 1,600
3'x8', stainless steel 1 1
Kneading Table
tabletop 1 2,000 2,000
4'x8', enameled
Packing Table
tabletop 1 8,000 8,000
15"x20", 5 levels,
Tray Carts square mech, w/ caster 9 50
wheels 20 4,500 0,000 10 5,000 ,000
33,0 7 21,0
Baking Trays
18" x 24", Aluminum 60 550 00 30 00 00
2'x2'x1', enameled
Biscuit Bin sheets, w/ caster 2 20
wheels 5 4,000 0,000 4 5,000 ,000
Induction type, 12", 17,0 17,0
Sealing Machine
foot-triggered 1 00 00
386,
Sub-Total 600 163,000
STORAGE ROOM
Storage Rack Constructed on 3 sides 25, 25,0
of storage room. 1 000 00
1, 1,8
Push cart
Heavy duty type 1 800 00
26,
Sub-Total 800
SALES
Isuzu closed van, 280, 280,0
Delivery Van
second hand 1 000 00
1, 1,8
Push cart
Heavy duty type 1 800 00
281,8
Sub-Total 00
ADMINISTRATION
Airconditioning 16, 16,0
unit Window type, 1.5 Hp 1 000 00
16,
Sub-Total 000
FURNITURE & FIXTURES
1, 2,6
Executive Table
2 300 00
1,6
Clerical Table
2 800 00

Sample Enterprise Enhancement Plan 25

RB Biscuit Co.
 1,4
Office chairs
4 350 00
Conference Table 3, 3,5
& 4 chairs 1 500 00
1,0
Visitors Chairs
4 250 00
6, 6,0
Filing Cabinet
1 000 00
16,
Sub-Total 100
727,
TOTAL
300 163,000

Sample Enterprise Enhancement Plan 26

RB Biscuit Co.
 ANNEX G

BAKERY LAYOUT

Open Space for Future Expansion

Wash
Area Brick Oven

Packing Table
Tray Carts
Kneading & Cutting
Table

Driveway
Biscuit Bin
Kneader Mixer

Racks

Office Storage Room

Racks

Racks

Sample Enterprise Enhancement Plan 27

RB Biscuit Co.
 ANNEX H

OTHER COSTS

Month
Inputs 1 2 3 4 5 6 7 8 9 10 11 12 Annual
20,00 20,00 20,00 20,00 20,00 20,00 20,00 20,00 20,00 20,00 240,00
Power 20,000 20,000 0 0 0 0 0 0 0 0 0 0 0
5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 60,00
Water 0 0 0 0 0 0 0 0 0 0 0 0 0
30,00 30,00 30,00 30,00 30,00 30,00 30,00 30,00 30,00 30,00 30,00 30,00 360,00
Gas / Delivery 0 0 0 0 0 0 0 0 0 0 0 0 0
8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 96,00
Transportation 0 0 0 0 0 0 0 0 0 0 0 0 0
5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 60,00
Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
22,50 22,50 22,50 23,40 23,40 23,40 24,30 24,30 24,30 25,38 25,38 25,38 286,74
Taxes & Licenses 0 0 0 0 0 0 0 0 0 0 0 0 0
4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 48,00
Office Supplies 0 0 0 0 0 0 0 0 0 0 0 0 0
5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 60,00
Representation 0 0 0 0 0 0 0 0 0 0 0 0 0
5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 60,00
Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0

104,50 104,50 104,50 105,40 105,40 105,40 106,30 106,30 106,30 107,38 107,38 107,38 1,270,74
Total 0 0 0 0 0 0 0 0 0 0 0 0 0

Sample Enterprise Enhancement Plan 28

RB Biscuit Co.
 ANNEX I

BUSINESS INPUTS

Quantity Per Month Per Year

1 2 3 4 5 6 7 8 9 10 11 12
Production/sales – Paborita
3.700 3.700 3.700 3,800 3,800 3,800 3,900 3,900 3,900 4,040 4,040 4,040
(bags)
Inputs Price/Unit
Wheat Flour (kg) 32.00/kg 6,167 6,167 6,167 6,333 6,333 6,333 6,500 6,500 6,500 6,733 6,733 6,733 77,200
Wheat Flour Knead 32.00/kg
(kg) 987 987 987 1,013 1,013 1,013 1,040 1,040 1,040 1,077 1,077 1,077 12,352
White Sugar (kg) 42.00/kg 370 370 370 380 380 380 390 390 390 404 404 404 4,632
Cooking Oil (li) 86.84/li 62 62 62 63 63 63 65 65 65 67 67 67 772
Yeast (gm) 0.7/gm 1,233 1,233 1,233 1,267 1,267 1,267 1,300 1,300 1,300 1,347 1,347 1,347 15,440
Water (li) 1.05/li 1,850 1,850 1,850 1,900 1,900 1,900 1,950 1,950 1,950 2,020 2,020 2,020 23,160
Plastic Bag-small (pcs) 0.25/pc 111,0 111,0 111,0 114,0 114,0 114,0 117,0 117,0 117,0 121,2 121,2 121,2 1,389,60
00 00 00 00 00 00 00 00 00 00 00 00 0
Plastic Bag-big (pcs) 1.20/pc 123 123 123 127 127 127 130 130 130 135 135 135 1,544
Label (pcs) 0.15/pc 111,0 111,0 111,0 114,0 114,0 114,0 117,0 117,0 117,0 121,2 121,2 121,2
00 00 00 00 00 00 00 00 00 00 00 00 1,389,600
Wood (cum) 400/cum 185 185 185 190 190 190 195 195 195 202 202 202 2,316

Production/sales – Ogoy-ogoy
1,300 1,300 1,300 1,400 1,400 1,400 1,500 1,500 1,500 1,600 1,600 1,600
(bags)
Inputs Price/Unit
Wheat Flour (kg) 32.00/kg 2,167 2,167 2,167 2,333 2,333 2,333 2,500 2,500 2,500 2,667 2,667 2,667 29,000
Wheat Flour Knead 32.00/kg
(kg) 347 347 347 373 373 373 400 400 400 427 427 427 4,640
White Sugar (kg) 42.00/kg 130 130 130 140 140 140 150 150 150 160 160 160 1,740
Brown Sugar (kg) 38.00/hg 520 520 520 560 560 560 600 600 600 640 640 640 6,960
Cooking Oil (li) 86.84/li 22 22 22 23 23 23 25 25 25 27 27 27 290
Yeast (gm) 0.7/gm 433 433 433 467 467 467 500 500 500 533 533 533 5,800
Water (li) 1.05/li 650 650 650 700 700 700 750 750 750 800 800 800 8,700
Plastic Bag-small (pcs) 0.25/pc 39,00 39,00 39,00 42,00 42,00 42,00 45,00 45,00 45,00 48,00 48,00 48,00
0 0 0 0 0 0 0 0 0 0 0 0 522,000
Plastic Bag-big (pcs) 1.20/pc 43 43 43 47 47 47 50 50 50 53 53 53 580
Label (pcs) 0.15/pc 39,00 39,00 39,00 42,00 42,00 42,00 45,00 45,00 45,00 48,00 48,00 48,00
0 0 0 0 0 0 0 0 0 0 0 0 522,000

Sample Enterprise Enhancement Plan 29

RB Biscuit Co.
Wood (cum) 400/cum 65 65 65 70 70 70 75 75 75 80 80 80 870

Sample Enterprise Enhancement Plan 30

RB Biscuit Co.
 ANNEX J

MATERIAL COSTS

Material Costs Per Month Per Year

1 2 3 4 5 6 7 8 9 10 11 12
Production/sales 3.700 3.700 3.700 3,800 3,800 3,800 3,900 3,900 3,900 4,040 4,040 4,040 46,320
Inputs - Paborita
Wheat Flour 197,3 197,3 197,3 202,6 202,6 202,6 208,0 208,0 208,0 215,4 215,4 215,4
33 33 33 67 67 67 00 00 00 67 67 67 2,470,400
Wheat Flour (Kneading) 31,5 31,5 31,5 32,4 32,4 32,4 33,2 33,2 33,2 34,4 34,4 34,4
73 73 73 27 27 27 80 80 80 75 75 75 395,264
White Sugar 15,5 15,5 15,5 15,9 15,9 15,9 16,3 16,3 16,3 16,9 16,9 16,9
40 40 40 60 60 60 80 80 80 68 68 68 194,544
Cooking Oil 5,3 5,3 5,3 5,5 5,5 5,5 5,6 5,6 5,6 5,8 5,8 5,8
55 55 55 00 00 00 45 45 45 47 47 47 67,042
Yeast 8 8 8 8 8 8 9 9 9 9 9 9
63 63 63 87 87 87 10 10 10 43 43 43 10,808
Water 1,9 1,9 1,9 2,0 2,0 2,0 2,0 2,0 2,0 2,1 2,1 2,1
47 47 47 00 00 00 53 53 53 26 26 26 24,379
Plastic Bag (small) 27,7 27,7 27,7 28,5 28,5 28,5 29,2 29,2 29,2 30,3 30,3 30,3
50 50 50 00 00 00 50 50 50 00 00 00 347,400
Plastic Bag (big) 1 1 1 1 1 1 1 1 1 1 1 1
48 48 48 52 52 52 56 56 56 62 62 62 1,853
Label 16,6 16,6 16,6 17,1 17,1 17,1 17,5 17,5 17,5 18,1 18,1 18,1
50 50 50 00 00 00 50 50 50 80 80 80 208,440
Wood 74,0 74,0 74,0 76,0 76,0 76,0 78,0 78,0 78,0 80,8 80,8 80,8
00 00 00 00 00 00 00 00 00 00 00 00 926,400
Total Paborita 4,692,850

Production/sales 1,300 1,300 1,300 1,400 1,400 1,400 1,500 1,500 1,500 1,600 1,600 1,600 17,400
Inputs – Ogoy-ogoy
69,3 69,3 69,3 74,6 74,6 74,6 80,0 80,0 80,0 85,3 85,3 85,3
Wheat flour 33 33 33 67 67 67 00 00 00 33 33 33 928,000
11,0 11,0 11,0 11,9 11,9 11,9 12,8 12,8 12,8 13,6 13,6 13,6
Wheat flour used in kneading 93 93 93 47 47 47 00 00 00 53 53 53 148,480
5,4 5,4 5,4 5,8 5,8 5,8 6,3 6,3 6,3 6,7 6,7 6,7
White sugar 60 60 60 80 80 80 00 00 00 20 20 20 73,080
19,7 19,7 19,7 21,2 21,2 21,2 22,8 22,8 22,8 24,3 24,3 24,3
Brown sugar 60 60 60 80 80 80 00 00 00 20 20 20 264,480
Cooking oil 1,8 1,8 1,8 2,0 2,0 2,0 2,1 2,1 2,1 2,3 2,3 2,3 25,184

Sample Enterprise Enhancement Plan 31

RB Biscuit Co.
 82 82 82 26 26 26 71 71 71 16 16 16
3 3 3 3 3 3 3 3 3 3 3 3
Yeast 03 03 03 27 27 27 50 50 50 73 73 73 4,060
6 6 6 7 7 7 7 7 7 8 8 8
Water 84 84 84 37 37 37 89 89 89 42 42 42 9,158
9,7 9,7 9,7 10,5 10,5 10,5 11,2 11,2 11,2 12,0 12,0 12,0
Plastic Bag (small) 50 50 50 00 00 00 50 50 50 00 00 00 130,500

Plastic Bag (big) 52 52 52 56 56 56 60 60 60 64 64 64 696

5,8 5,8 5,8 6,3 6,3 6,3 6,7 6,7 6,7 7,2 7,2 7,2
Label 50 50 50 00 00 00 50 50 50 00 00 00 78,300
26,0 26,0 26,0 28,0 28,0 28,0 30,0 30,0 30,0 32,0 32,0 32,0
Wood 00 00 00 00 00 00 00 00 00 00 00 00 348,000
Total Ogoy-ogoy 2,027,338

TOTAL 6,720,188

Sample Enterprise Enhancement Plan 32

RB Biscuit Co.
 ANNEX K

DEPRECIATION TABLE

CURRENT ADDITIONAL EQUIPMENT NEEDED

Yrs. Yrs.
Of Annual Unit Of Annual
Investment Item Value Use Depreciation Total Qty Cost Value Use Dep'n
PRODUCTION
Mixer 43,000 5 8,600
Kneading Machine 50,000 5 10,000
Cutting dies - Paborita 32,000 3 10,667
Cutting dies - Ogoy-ogoy - 4 10,000 40,000 3 13,333
Brick Oven 80,000 10 8,000
Oven Paddle 1,600 2 800
Kneading Table 12,000 5 2,400
Packing Table 8,000 5 1,600
Tray Carts 90,000 5 18,000 10 5,000 50,000 5 10,000
Baking Trays 33,000 5 6,600 30 700 21,000 5 4,200
Biscuit Bin 20,000 3 6,667 4 5,000 20,000 3 6,667
Sealing Machine 17,000 5 3,400
76,733 34,200
STORAGE ROOM
Storage Rack 25,000 5 5,000
Push cart 1,800 5 360
5,360
SALES
Delivery Van 330,000 5 66,000
Push cart 1,800 5 360
66,360
ADMINISTRATION
Airconditioning unit 16,000 5 3,200 3,200
FURNITURE & FIXTURES
Executive Table 2,600 5 520
Clerical Table 1,600 5 320
Office chairs 1,400 5 280
Conference Table & 4
chairs 3,500 5 700
Visitors Chairs 1,000 5 200
Filing Cabinet 6,000 5 1,200
3,220
TOTAL 154,873 131,000 34,200

Sample Enterprise Enhancement Plan 33

RB Biscuit Co.
 ANNEX L

INTEREST COSTS

Month

Product 1 2 3 4 5 6 7 8 9 10 11 12
FAMILY LOAN:
Principal
Interest rate
Interest cost
Installment

BANK LOAN
Principal 500,00 481, 462, 443, 424, 405, 385, 366, 346, 326, 306, 285,
0 463 741 832 733 444 962 285 411 338 065 589
Interest rate 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12%
Interest cost 5,0 4, 4, 4, 4, 4, 3, 3, 3, 3, 3, 2,
00 815 627 438 247 054 860 663 464 263 061 856
Installment 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537

OTHER LOANS
Principal 749,82 707,20 664,04 620,34 576,10 531,30 485,94 440,02 393,52 346,44 298,78 250,51
6 1 3 6 2 5 9 5 7 8 1 8
Interest rate 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
Interest cost 9, 8, 8, 7, 7, 6, 6, 5, 4, 4, 3, 3,
373 840 301 754 201 641 074 500 919 331 735 131
Installment 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998 51,998

TOTALS
DEBT SERVICE
Installment 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535
Interest cost 14, 13, 12, 12, 11, 10, 9, 9, 8, 7, 6, 5,
373 655 928 193 449 696 934 163 383 594 795 987

Sample Enterprise Enhancement Plan 34

RB Biscuit Co.
Sample Enterprise Enhancement Plan 35
RB Biscuit Co.
 ANNEX M

SALES AND COSTS PLAN

Month
1 2 3 4 5 6 7 8 9 10 11 12 Annual
Sales:
Paborita (bags) 3,700 3,700 3,700 3,800 3,800 3,800 3,900 3,900 3,900 4,040 4,040 4,040 46,320
Ogoy-ogoy (bags 1,300 1,300 1,300 1,400 1,400 1,400 1,500 1,500 1,500 1,600 1,600 1,600 17,400
Wholesale Price per
Bag 225 225 225 225 225 225 225 225 225 225 225 225
1,125,0 1,125,0 1,125,0 1,170,0 1,170,0 1,170,0 1,215,0 1,215,0 1,215,0 1,269,0 1,269,0 1,269,0 14,337,
TOTAL SALES 00 00 00 00 00 00 00 00 00 00 00 00 000

Direct Material Costs- 374,8 374,8 374,8 384,9 384,9 384,9 395,1 395,1 395,1 409,3 409,3 409,3 4,692,8
Paborita 61 61 61 92 92 92 23 23 23 07 07 07 50
Direct Material Costs- 151,4 151,4 151,4 163,1 163,1 163,1 174,7 174,7 174,7 186,4 186,4 186,4 2,027,3
Ogoy-ogoy 68 68 68 19 19 19 71 71 71 22 22 22 38
Direct Labor Costs 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 919,944
602,9 602,9 624,7 624,7 624,7 646,5 646,5 646,5 672,3 672,3 672,3 7,640,1 11,952,
Total Direct Cost 90 90 73 73 73 56 56 56 91 91 91 32 351

522,0 522,0 522,0 545,2 545,2 545,2 568,4 568,4 568,4 596,6 596,6 596,6 6,696,8
GROSS MARGIN 10 10 10 27 27 27 44 44 44 09 09 09 68

Indirect Costs
98,77 98,77 98,77 98,77 98,77 98,77 98,77 98,77 98,77 98,77 98,77 1,185,3
Staff Costs 9 9 9 9 9 9 9 8,779 9 9 9 9 51
104,5 104,5 104,5 105,4 105,4 105,4 106,3 106,3 106,3 107,3 107,3 107,3 1,270,7
Other Costs 00 00 00 00 00 00 00 00 00 80 80 80 40
15,75 15,75 15,75 15,75 15,75 15,75 15,75 15,75 15,75 15,75 15,75 15,75
Depreciation 6 6 6 6 6 6 6 6 6 6 6 6 189,073
TOTAL INDIRECT 219,0 219,0 219,0 219,9 219,9 219,9 220,8 220,8 220,8 221,9 221,9 221,9 2,645,
COSTS 35 35 35 35 35 35 35 35 35 15 15 15 165

NET PROFIT BEFORE 302,9 302,9 302,9 325,2 325,2 325,2 347,6 347,6 347,6 374,6 374,6 374,6 4,051,
FINANCING 74 74 74 91 91 91 09 09 09 93 93 93 704

14,37 13,65 12,92 12,19 11,44 10,69 9,93 9,16 8,38 7,59 6,79 5,98 123,
Interest Costs 3 5 8 3 9 6 4 3 3 4 5 7 150

Sample Enterprise Enhancement Plan 36

RB Biscuit Co.
 NET PROFIT FROM 288,6 289,3 290,0 313,0 313,8 314,5 337,6 338,4 339,2 367,0 367,8 368,7 3,928,
OPERATIONS 01 20 46 99 43 96 75 46 26 99 98 06 554

Provision for Income 101,0 101,2 101,5 109,5 109,8 110,1 118,1 118,4 118,7 128,4 128,7 129,0 1,374,
Tax 10 62 16 85 45 08 86 56 29 85 64 47 994

187,5 188,0 188,5 203,5 203,9 204,4 219,4 219,9 220,4 238,6 239,1 239,6 2,553,
NET PROFIT 91 58 30 14 98 87 89 90 97 15 34 59 560

Sample Enterprise Enhancement Plan 37

RB Biscuit Co.
 ANNEX N

CASH FLOW PLAN

1 2 3 4 5 6 7 8 9 10 11 12
, , ,
Cash at the Beginning of 533, 675, 816, 972, 128,30 1,283, 453,35 622,72 1,791, 1,978, 2,164,4
1 the month 53,908 093 027 706 634 2 707 1 5 826 256 07
1,125, 1,125, 1,125, 1,170, 1,170, 1,170, 1,215, 1,215, 1,215, 1,269, 1,269, 1,269,0
2 Cash in from sales 000 000 000 000 000 000 000 000 000 000 000 00
500,00
3 Any other cash in 0
1,678, 1,658, 1,800, 1,986, 2,142, 2,298, 2,498, 2,668, 2,837, 3,060, 3,247, 3,433,4
4 TOTAL CASH IN 908 093 027 706 634 302 707 351 725 826 256 07

5 Cash out for direct costs

526,3 526, 526, 548, 548, 548, 569, 569, 569, 595, 595, 595,7
- Direct Materials 28 328 328 111 111 111 894 894 894 729 729 29
- Direct Labor 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662 76,662
Total Cash Out for 602,99 602,99 602,99 624,77 624,77 624,77 646,55 646,55 646,55 672,39 672,39 672,39
Direct Costs 0 0 0 3 3 3 6 6 6 1 1 1

6 Cash out for indirect costs

98, 98, 98, 98, 98, 98, 98, 98, 98, 98, 98, 98,7
- Staff Costs 779 779 779 779 779 779 779 779 779 779 779 79
104, 104, 104, 105, 105, 105, 106, 106, 106, 107, 107, 107,
- Other Costs 500 500 500 400 400 400 300 300 300 380 380 380
- Loan Installment 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535 75,535
Total Cash Out for 278, 278, 278, 279, 279, 279, 280, 280, 280, 281, 281, 281,
Indirect Costs 814 814 814 714 714 714 614 614 614 694 694 694

101, 101, 101, 109, 109, 110, 118, 118, 118, 128, 128, 129,
7 Any other cash out - Taxes 010 262 516 585 845 108 186 456 729 485 764 047
- 163,
Equipment 000 -
264, 101, 101, 109, 109, 110, 118, 118, 118, 128, 128, 129,
Total Any Other Cash Out 010 262 516 585 845 108 186 456 729 485 764 047

8 TOTAL CASH OUT 1,145, 983, 983, 1,014, 1,014, 1,014, 1,045, 1,045, 1,045, 1,082, 1,082, 1,083,

Sample Enterprise Enhancement Plan 38

RB Biscuit Co.
 815 066 321 072 332 596 356 626 899 570 849 132

Cash at the end of the 533, 675, 816, 972, 1,128, 1,283, 1,453, 1,622, 1,791, 1,978, 2,164, 2,350,2
9 month 093 027 706 634 302 707 351 725 826 256 407 74

Sample Enterprise Enhancement Plan 39

RB Biscuit Co.
 ANNEX O

INTEREST & INSTALLMENT ON NEW LOAN

BANK LOAN
Loan Amount 500,000 500,000
Interest Rate 12% 0.01
Period 24 24
Amortization ($23,536.74) 23,537

Period 0 1 2 3 4 5 6 7 8 9 10 11 12
Start Balance 500,000 481,463 462,741 443,832 424,733 405,444 385,962 366,285 346,411 326,338 306,065 285,589
Amortization 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537
Interest 5,000 4,815 4,627 4,438 4,247 4,054 3,860 3,663 3,464 3,263 3,061 2,856
Principal 18,537 18,722 18,909 19,098 19,289 19,482 19,677 19,874 20,073 20,273 20,476 20,681
End Balance 500,000 481,463 462,741 443,832 424,733 405,444 385,962 366,285 346,411 326,338 306,065 285,589 264,908

Period 13 14 15 16 17 18 19 20 21 22 23 24
Start Balance 264,908 244,020 222,924 201,616 180,096 158,360 136,407 114,234 91,840 69,221 46,377 23,304
Amortization 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537 23,537
Interest 2,649 2,440 2,229 2,016 1,801 1,584 1,364 1,142 918 692 464 233
Principal 20,888 21,097 21,308 21,521 21,736 21,953 22,173 22,394 22,618 22,845 23,073 23,304
End Balance 244,020 222,924 201,616 180,096 158,360 136,407 114,234 91,840 69,221 46,377 23,304 0

Sample Enterprise Enhancement Plan 40

RB Biscuit Co.