Professional Documents
Culture Documents
Feasibility Study
Feasibility Study
Chapter 1
EXECUTIVE SUMMMARY
JE Naturals Co. is the name of the firm. “JE” is derived from the initial (first
“Naturals”, on the other hand, connotes the products being pure and healthy. The
name of the product “BNN” came from the word Banana, where the proponent just
remove the vowel letter “a”. The name is very simple and short yet elegant to say
and read. It also signifies that the products offered by Blank Company are pure
and natural. With its name, the proponent wanted to inform everyone that banana
is not just a food but also a best way to improve the skin and hair along with some
natural ingredients.
Location
Aldea Tanay, Rizal. The area is about 400 sq. m near the establishments like
Savemore, Puregold and Tanay Public Market. The proponent will buy the land
2
together with the building, which will be subjected to renovation. The location is
also an. advantage because all target towns in Rizal is near from it so there will
be no delay nor problem when it comes to distribution. The proponent also think
Project Description
BNN Personal Care offers some of the most basic products everyone used
lotion. These products will be manufactured every day in order to attend all the
demand in the market (see table distribution channel). The proponent came up
with this project in her feasibility study because of her want to introduce products
that are non-toxic, healthy, and natural not only for the skin and hair but also for
the environment.
to be a good source of having a healthy and beautiful skin and hair. The other
effective products.
3
Project Summary
Market Study
The role of packaging has been becoming quite significant in order to get
consumers notice your product, the very reason why JE Naturals Co. has focused
on this section as part of their marketing strategy. BNN Personal Care products
ingredients, directions on how to use it, contact no. and social media address for
Part of marketing strategy is to know who your competitors are. BNN being
a manufacturer of personal care products has a lot of competitors, both direct and
indirect. Direct competitors are those that also manufactures personal care that
are organic. While indirect competitors are those commercial products that are
The business adapted the cost-plus pricing method where all cost
attributable in making the products are added together plus a mark-up to arrive at
a certain price. The mark-up varies per product; for Shampoo and Conditioner in
a bottle (25%), Shampoo and Conditioner sachet (10%), Soap (45%) and Lotion
BNN’s advantages over its direct and indirect competitors are enough to
satisfy and attract customers. One of this major advantage over the others is its
ingredients, which are carefully selected to ensure a quality output. The products’
4
prices are also an advantage because of it being lower than its indirect
competitors. The company believes that everyone, not only those who can afford,
can use a quality and very natural product at the same time at an average price.
(B2B), products will be delivered to the respective target business, this include but
not limited to salons and general merchandise stores. (See Table 6 and 7). On the
other hand, these products are available also to those who want to purchase
directly to the site (B2C). Mode of payment in wholesaling may be through cash or
marketplace, where consumers can access a wide range of products from any part
of the world, the business created various account of social medias (see Figure 7).
This will allow customers to know more about what the business offers as well as
to enable them purchase through it, without any hassle. Products will be also
advertised through flyers, tarpaulins and free samplings to leave an image to the
customers’ minds. Contacts and linkages will also be developed for prospective
buyers and suppliers. For further promotional and advertising strategy the
business will participate in various local trade fair events around Rizal.
The business target market are those aging 13-79 years old. This is based
on both the survey and research conducted by the proponent wherein this group
of age are the most likely health conscious that they are willing to purchase
For the first five-year projection, consumers of the proposed products will
be from some towns in Rizal. These towns are Jala-jala, Pililla, Tanay, Baras,
Morong and Teresa. The business will extend their market to different towns in
Rizal like Antipolo, Cardona, Taytay, Angono, Binangonan and Cainta after five
years of operation.
new ideas and produce more products that are also made from the main ingredient
banana extract or from other extract. Through this, the business will generate more
Technical Study
BNN Personal Care is composed of four products. These are the shampoo,
conditioner, soap and lotion. These products are made of all natural ingredients
BNN products has a lot of benefits given that it is natural. From its main
ingredient, banana, which is rich in anti-oxidants and other nutrients that everyone
might not know, can give better benefits to skin and hair other than using
commercial products. Other ingredients are shea butter, cocoa butter, essential
oils, carrier oils, and natural preservative which are all proven healthy and natural.
about a preservative that doesn’t contain chemicals. This preservative is called the
6
personal care products BNN offers can last within 1-2 years.
The machines and other resources of the business will be able to produce
the projected demand every year. 33,325 bottles of Shampoo & Conditioner,
35,889 dozen of sachet of Shampoo & Conditioner, 36,621 pieces of Soap, and
29,297 bottles of Lotion will be produced for the first year of operation (see Table
The business will operate 8 AM to 5 PM, a total of 8 hours per day, Monday
to Saturday.
The building is divided into several areas which are the production area,
storage room, laboratory room, office room, garage, comfort room and hallway.
Enough spaces are given to each area to make the daily operation effective and
efficient.
The business will have a proper waste disposal and will be following the
local community’s rules and regulations when it comes to wastes. As well as the
(DENR). Wastes will be disposed via municipality’s waste collection day. All
Management Study
Jhonalyn M. Galdones being both the General Manager and Accountant. The other
employees are the Sales Manager (1), Production Manager (1), Quality Control
Specialist (1), Machine Operator (2), Production Worker (2), Cashier (1), Delivery
Driver (1), Delivery Man (1), Utility Man (1) and Security Guard (1). All employees
will be paid according to their skills, nature of work and time spent in the factory.
There are also entitled for benefits like 13th month pay, SSS, Pag-IBIG and
PhilHealth.
employees are present or absent. Close supervision will also be conducted every
Financial Study
partner will be responsible for all the financial decisions of the business. Partners
are responsible for contribution of three million five hundred pesos (Php
3,500,000). The partnership agreement according to profit and loss will be equal.
The business will have an increasing and acceptable net income for the first
five years of operation. For 1st Year 1,115,012; 2nd Year 2,042,355; 3rd Year
The payback period for the investment is 3 years and 2 months and 11 days.
Socio-Economic Study
Sustaining the business’ life and earning profit are the starting point of how
a business could impact the society and the economy. Thus, the proponent will
exert lot of efforts and will devote time achieving those goals which in turn help the
whole province of Rizal generate employment. The business will also pay the right
indirectly contribute to the public as this is used as funds of the government like
who are dreaming of having their own business and creating products out of their
that are not harmful, it doesn’t uses any chemicals that can destroy the natural
environment.
The business will help different foundation every year in Rizal. It will also
conduct seminars for people in Rizal teaching them how to establish their own
business.
establishing the business. Thus, the company ensured that they have all the
Chapter 2
Project Background
The proponent wants to change the idea of many people about banana
being only as a fruit that is eaten, into a perspective, that this fruit can be the main
Banana, as everyone knows, contains a lot of vitamins that our body needs.
But aside from this, it is proven that it can be also a good source of having a healthy
hair and skin. The very reason why the proponent conceptualize the idea of
creating and introducing externally applied products using extract from banana.
Project Promoter
Tanay, Rizal. As a proponent, she will invest money for the business, manage it
and assures that the business complies with certain rules and regulations in
Project History
People have wanted to look and feel attractive since the earliest days of
For example, Hindu texts, such as the Vishnu Purana and the Manusmritihad
cosmetics as far back as ancient Egypt and Greece. The ancient Romans had
important. Studies have shown that those who present a good personal image
have a better chance of success in life—from finding a life partner to landing a job.
The personal-care products industry aims to help people look better and
sunscreen, razors, shaving cream, deodorant, soaps and other products for
bathing, hair care products, skin care products, nail and cuticle care products,
fitness products (such as specialized running shoes and supports and braces), and
many other items. Products are sold in retail stores, door-to-door, by mail order,
and online.
11
Feasibility Study
ordering party, Mrs. Estela G. Pascual, CPA, MBA, Professor and Dean of the
College of Business and Accountancy. This study is done in partial fulfilment in the
Table 1
Description Cost
Printing 700
Photocopying 50
Bookbinding 400
Table 2
Feasibility
Study
Registration
and Securing of
Business
Permits
Renovation of
Business
Premises
Acquisition of
Equipment and
Raw Materials
Hiring of
Employees
Start of
Business
Operations
13
Chapter 3
MARKET STUDY
Business Logo
The logo depicts how the business’ wants for its customers to view what
kind of product they offer. Banana, at the center, signifies that products offered
by the proponent was her main ingredient and by just one look everyone can
recognize it being natural. The proponent believes that less is more, reason why
the logo is very simple. Being simple means purity of the products.
Figure 1
Business Logo
14
Packaging
The business exert effort in designing the package because they believe
that one of the key factor in attracting customers and creating a brand is through
product packaging.
BNN personal care products will be put into biodegradable and recyclable
containers and boxes in order not to harm the environment. It will also serve as
protection of the products while in transit for distribution. All the information needed
by the potential buyers are included on it. These are the business’ logo, the
benefits, the ingredients used, and the directions on how the products should be
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Lotion (200ml)
17
Competition
The business direct competitors that offers almost the same and related
Table 3
Table 4
Mestiza Safeguard
Carrot Soap Bioderm
Glutamansi Soap Silka
Human Nature Dove
All in One Soap Palmolive
Kojic
18
Table 5
Cetaphil Nivea
Nature Republic Avon Lotions
Be Organic Lotions Vaseline
Cocoline Naturals Dove
Johnson
Competitive Advantages
The proponent include all the competitive advantage of its products. The
price of shampoo, conditioner, soap, and lotion are lower than its direct
competitors. All ingredients used in the products are free from hazardous chemical
that many commercial products (indirect competitors) offer, have its active main
ingredient, banana (extract), which everyone knows only for its flesh being eaten.
skin and hair producing a lot of vitamins such as Potassium, Vitamin B3,B5,B6,
Vitamin C, Zinc and more . Added with this, are all natural ingredients which made
the products even more effective and healthier. The packaging of the products are
sealed well, designs are made attractive to customers and the containers used are
eco-friendly. The business will deliver earlier than what is required to assure that
Marketing Strategies
of introducing products to the market. BNN Personal Care will give discount to
those who’ll order in bulk. They will be given also products for testing to assure
For the first three months as part of their promotional strategy, the business
will offer an all-in-one package where all BNN products are present at a price lower
The business will also focus on how they will advertise their product to
encourage the market other than their prospective buyers to purchase the
creating social media accounts like Facebook and Instagram which are among the
top applications used by many Filipinos. Flyers, tarpaulins and free samplings are
also part of the strategies. All the things a customer must know will be on the said
advertisement strategy for them to remember the products and the business.
20
Figure 7
Distribution Strategy
The business will be using channel to deliver the products. It will offer to the
customer through wholesale or retail. The business will acquire a delivery truck for
Manufacturer/Supplier
Wholesale/Retail
Customer
Figure 8
Distribution Channel
22
Table 6
Jala-Jala Public Market Bonjo’s Pharmacy and Gen. Merch. Tanay Public Market
Maria Beauty Salon Diana Beauty Salon Nini Raymundo Grocery Store
Realyn Hair & Beauty Salon Myra Beauty Salon John Well Rose Drugstore
23
Table 7
MRF Drugstore and Gen. Merch Morong Ceegel Pharmacy Corp. Jannet Drugstore
Table 8
Distribution Schedule
Figure 9
Distribution Route
25
Supplier
The business will purchase materials once a month to its trusted suppliers.
Materials will be delivered in the business’ location to save time and other
unnecessary expenses.
Table 9
List of Suppliers
Glycerin
1425 G. Araneta Avenue Tocopheryl Acetate
Alysons’ Enterprises. Inc. Quezon, City Metro Phenoxyethanol
Manila, Philippines Liquid Castile Soap
Pearl Powder
Bottle
Unlipack Packaging 1514 Zamora St. Tondo,
Sachet
Philippines Manila
Soap Box
Target Market
The business’ target market are those aging 13-79 years old, male or
be more interested than men in using personal care products that are made of
natural ingredients, of these women, ages 25-34 constitute the highest percentage,
43%, said they preferred natural organic made products, while 38% at ages 13-
17, 39% at ages 18-24, at ages 35-49, 37% at ages 50-64 and 32% at ages 65+.
For the men, the least amount of interest came at ages 13-17 (20% preferred
personal care with natural/organic ingredients) and 65% (also a 20% preference),
while men ages 18-24 and 25-34 both showed 33% had a preference to personal
drugstores. The consumers of the products are some municipalities in Rizal. These
are the town of Jala-jala, Pililla, Tanay, Baras, Morong, and Teresa.
by the proponent, this percentage is stable for the projected initial five years of the
business. While the percentage of the potential buyers is based on the estimation
of the expected buyers from those who has the capacity and interested to buy the
products. This percentage will increase 3.4% annually, this is based on the
research about the increasing demand for personal care product annually in the
Philippines.
27
Demand
For the first year of operation of the business, the demand for the products
will only have minimal rate of customers but is highly probable that it will increase
Supply
prepared in order to help the production and the management on deciding how
Pricing Strategy
method. The cost of direct materials, direct labor and manufacturing overhead will
be added together to arrive at the total cost of each product plus a mark-up to
create a profit margin and it will also help to determine the price of each product.
28
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
2. Amount of raw materials used in the products may vary due to different
Table 16
Pricing Strategy
BNN Lotion
72.55 3 6 81.55 50% 122
200 ml
32
33
Table 17
Projected Population for 5 Years
Pililla 64,812 3.63% 69,603 72,129 74,748 77,461 80,273 83,187 86,206
Tanay 117,830 2.65% 124,158 127,448 130,825 134,292 137,851 141,504 145,254
Baras 69,300 3.55% 74,308 76,946 79,677 82,506 85,435 88,468 91,608
Morong 58,118 2.44% 60,989 62,477 64,001 65,563 67,163 68,801 70,480
Teresa 57,755 3.93% 62,384 64,835 67,383 70,032 72,784 75,644 78,617
Total
400,069 425,639 439,049 452,895 467,192 481,951 497,191 512,929
Population
1. Population is based on 2015 Census of Population multiplied by the annual growth rate to arrive at 2019 total
population.
Table 18
Population by Age
Table 19
Population
Base Growth
Municipal (Base Year 1 Year 2 Year 3 Year 4 Year 5
Year Rate
year*74%)
Jala-Jala 35,214 26,058 2.97% 26,832 27,629 28,450 29,295 30,165
1. Base year is multiplied by 74%, which is the proportion of age group of the target market ages 13-79 to
Table 20
1. The target market is 32% of population. The rate used is based on the survey conducted by the proponent
2. The % of Potential Buyers are estimations of the expected buyers from those who have the capacity to buy,
and those with stable income that are interested in buying the products.
37
Table 21
% of
Year 1 Year 2 Year 3 Year 4 Year 5
Demand
1. % of Demand is based on the survey regarding about what they would most likely to purchase among
products offered.
2. Projected Potential Buyer per Product is computed by multiplying Total Projected Potential Buyer per Year
Table 22
Specific Projected Demand for Bottles and Sachet (Shampoo & Conditioner)
1. Percentage for the Bottle (65%) and Percentage for the Sachet (35%) are based on the survey regarding
2. Projected demands for the bottle and sachet are computed by multiplying Projected Potential Buyers with
Table 23
1. The consumption per year is 12 bottles. The potential buyers have a capacity to purchase 12 pieces in one
year.
Table 24
Table 25
1. The consumption per year is 6 bottles. Potential buyers will buy 6 pieces of lotion in one year.
42
Table 26
Projected Demand
15,765 21,792 28,185 34,960 42,137
(Sachet 11ml)
Table 27
Projected Demand
15,765 21,792 28,185 34,960 42,137
(Sachet 12 ml)
Table 28
Table 29
Chapter 4
TECHNICAL STUDY
Products Offered
BNN Personal Care is composed of four (4) different but related products,
these are the BNN Shampoo, BNN Conditioner, BNN Soap and BNN Lotion. These
products are made of banana extract and other natural ingredients. Banana, aside
from it being a food, also gives a lot of benefits for nourishing skin and hair with all
the nutrients it has. To make it even better, these products are infused with some
natural ingredients such as essential oils, carrier oils, shea and cocoa butter, and
preservatives.
bottle (180ml) while Soap will be available in 120g and Lotion in a bottle (200ml).
Products’ Benefits
Banana is one of the most widely consumed fruits in the world. It is rich in
and C), magnesium, zinc, amino acid and fiber. Some of these nutrients are good
for skin and hair when applying externally. Added with this main ingredient are
other natural ingredients that are safe and can also give nutrients that the skin and
hair needs.
45
skin. B-vitamins protect against free radicals that cause oxidative stress and
premature aging. Vitamin A heals dry and withered skin, fades acne scars
and dark spots. Zinc fights acne causing germs. Vitamin C that is necessary
for the production of collagen for skin oil control. Lectin destroys bacteria
that cause acne and pimples. And amino acid which nourishes the skin and
Aside from what banana can do to skin, BNN soap and lotion are added
with essential oils, carrier oils, shea and cocoa butter, and natural
preservatives. Essential oils which has the ability to fight pathogens that are
responsible for dermatological infections, can calm irritated skin, and can
even help improve inflammatory skin conditions like eczema. Carrier oils on
the other hand, are a great source fat-soluble vitamins, minerals and
antioxidants. One of the most used carrier oil in BNN products is Vitamin E
oil which protects skin from UV damage, slows down the process of aging
and fights free radical damage to skin cells. Shea and Cocoa Butter, as also
part of the ingredients, help improve skin tone and promote collagen
production. Aside from these, each has skin healing benefits such as
reducing acne scars and each can protect the skin from damaging caused
by the environment. Lastly, is the safe and natural preservatives, which are
the Phytocide Elderberry and Vitamin E which help the products prolong its
life.
46
2. Benefits for the Hair – With all the nutrients banana contains it has also a
lot of benefits for the hair. Bananas are good for hair and scalp, it improves
manageability and shine of the hair, it can also prevent and control dandruff
carbohydrates and vitamins enough to soften the hair and protect the hair’s
In making the shampoo even better it was added with other ingredients
including pure liquid castile soap which are not utilize by commercial
necessarily good for the hair. Liquid castile soap doesn’t contain any
detergents that can strip the hair or scalp. Using this will make the hair clean
and soft and it has been found to be good for all hair types, but can be
which is very beneficial in the treatment of dry hair and dry scalp problems.
Essential oils, Vitamin E and Tea Tree Oils are also part of the ingredients
which are the best for maintaining hair growth, unclog hair follicles, nourish
roots and give fragrance to the hair. Since the shampoo contains water it
Another product of BNN is its natural conditioner, which are also added with
shea butter (which keep moisturizing the hair and increase its softness),
47
coconut oil (for faster hair growth), Vitamin E, and Essential oils which aside
prolong its life. Typically, personal care products used chemical preservatives but
beauty products. This inhibit the growth of bacteria, yeast or mold. By adding this
preservative products can have a longer life. It is estimated that the life of all BNN
Production Capacity
The business selected machines that are able to produce the target demand
50,000 ml per day. Soap cutting machine can cut 1,500 pieces of soap in an hour.
Bottling and filling machine can produce 15,000 bottles a day. Sachet packing
machine can produce 20,000 pieces in a day. Labelling machine can label 15,000
bottles/sachets a day. Soap wrapping machine can produce 10,000 of labelled and
wrapped soap in a day. These capacities able the business to produce all of its
products every day and are enough to produce the target demand and the desired
produced for the respective years. For the first year of operation the business will
be able to produce 116 bottles of Shampoo & Conditioner, 125 dozen of sachets
of Shampoo & Conditioner, 127 pieces of Soap and 102 bottles of Lotion.
Table 30
Table 31
Table 32
Table 33
Table 34
Materials Price
Distilled Water Php 20/1L
Liquid Castile Soap Php 300/1L
Shea Butter Php 250/1kg
Cocoa Butter Php 250/1kg
Lye Php 60/1kg
Glycerin Php 250/1L
Esssential Oils Php 500/1L
Tea Tree Oil Php 100/100ml
Amylase Php750/1kg
Banana Extract Php 30/1L
Bottle Php 4250/850pcs.
Sachet Php750/1000dozen
Weighing and
Measuring of Raw
Materials
Packaging, Labelling
and Storing
Figure 10
Figure 11
Packaging, Labelling
and Storing
Figure 12
Table 35
Blending Tank
Machine
Soap Cutting
Machine
Bottling Machine
Sachet Packing
Machine
Used for
packaging sachet 1 125,000 125.000
products
Storage Tank
Labelling Machine
Soap Wrapping
Machine
Laboratory Table
Used for preparing
raw materials
1 7,500 7,500
needed to
production
57
Weighing Scale
Used for
measuring raw 2 5,000 10,000
materials
pH Meter
Used for
measuring the
hydrogen-ion 1 4,000 4,000
activity in water
based solutions
Freezer
Electric Stove
Double Boiler
Used for
extracting juice 2 3,600 7,200
from banana
58
Steel Cart
Sous Vide
Used for
extracting juice 2 3,960 7,920
from banana
Aircon
Used to provide
2 30,900 61,800
ventilation
59
Computer
Used to record
transaction and for 2 12,000 24,000
communication
Printer
Used for printing
necessary
1 4,000 4,000
documents of the
business
Telephone
Used for
communicating to
1 1,500 1,500
customers and
suppliers
CCTV
Total 2,099,220
60
Table 36
Total
Furniture & Fixtures Description Qty. Unit Price
Price
Office table & chair
Used by the
manager and the 1 5,000 5,000
accountant
Used by the
business’
1 10,000 10,000
customers and
employees
Total 15,000
61
Table 37
Production Supplies
Total
Supplies Description Qty. Unit Price
Price
Large Measuring
Cups
Used for
measuring raw
5 165 825
materials needed
for production
Transparent
Container
Used for
extracting juice 2 500 1,000
from banana
Bag Containers
Used for
extracting juice 580 10 5,800
from banana
Gloves
Used for safety
and sanitation of
the production
15 100 1,500
workers
62
Face Mask
Apron
Hairnet
Box
Used for
packaging 4,670 30 140,100
wholesale
Total 155,130
63
Table 38
Bond Paper
Ballpen
Log Book
Used for
recording and
3 45 135
tracking events
in the workplace
Folders
Mop
Used for
2 320 640
cleaning
Used for
2 100 200
cleaning
Trash Cans
Used for
garbage 2 1,500 3,000
collection
Fire Extinguisher
Total 7,215
65
Table 39
Vehicle
Total
Vehicle Description Qty. Unit Price
Price
Delivery Vehicle
Total 600,000
66
Business Hours
Business Location
The business will be located at Sampaloc Rd. Brgy. Plaza, Aldea near
around the establishments of Tanay, Rizal. It will be a 400 sqm. land with a building
The building is divided into several areas which are the production area,
storage room, laboratory room, office room, garage, comfort room and hallway.
the products happen. Laboratory and office room have enough space to enable
workers access the place easily. Office room has also enough space for the
owners, for meetings and clients. Hallway is made wider for finished products to
be easily walked out the premises and also serve as an option way for delivered
raw materials. Comfort room is divided in to two which is for men and women.
Figure 13
Floorplan
69
Figure 14
Rizal Map
70
Figure 15
Location Map
71
Figure 16
Satellite
72
73
Utilities
(MERALCO) for the power needs by the business on its day-to-day operation.
The water will be provided by Tanay Water District for the water supply
Internet Communication
Waste Disposal
the waste into biodegradable and non-biodegradable. All waste will be disposed
immediately to prevent it to be stuck up. All employees will be taught proper waste
disposal and cleaning their respective area to keep the surroundings safe.
Since the business uses banana as its main ingredient, all peels of it will be
given to the farmers and gardeners in Tanay to make it a fertilizer for their plants.
74
Chapter 5
MANAGEMENT STUDY
Galdones who will also act as the manager and accountant and Edna Rona T.
Montimor as a capitalist partner. Each has contributed money to cover all costs
necessary for its operation. All employees are entitled to a monthly salary with
General Partnership
Figure 17
Partnership Structure
75
Manpower Requirement
The employees will compensate according to their job and position and
the time they spend in the factory. There would be a daily time record in order to
General Manager and Accountant (1), Production Manager (1), Machine Operator
(2), Production Worker (2), Quality Control Specialist (1), Sales Manager (1),
Cashier (1), Delivery Driver (1), Delivery Man (1), Utility Man (1), and Security
Guard (1).
Table 40
Manpower Requirement
the employees, in
1
production, in
distributing, and in
manufacturing of the
products
76
financial transactions of
the Company
major in relationship
Making
licensed
Industrial
Engineer
course related to
77
experience
Laboratory
reporting on hand
cash to the
general manager/
accountant
78
in a - Responsible for
defects
school graduate 1
-Must have a
professional
driver’s license
-Must be a high
school graduate
-Good in
communication
-Physically Fit
license
Total
Employees 13
80
General Manager
& Accountant
Production
Manager Sales Manager
Utility Man
Machine
Security Guard Operator Cashier
Production Delivery
Worker Driver
Figure 18
Organizational Structure
81
Legal Requirements
The proponent must consider the legal requirements when starting the
business. The business secured all the necessary permits of the business.
Table 41
Legal Requirements
Registration to SEC
7,000.00
BFAD Registration
21,800.00
Bureau of Internal Revenue
620.00
Registration
Building Permit
4,000.00
Mayor’s Business Permit
300.00
Barangay Business Permit
300.00
Sanitary Permit
120.00
Total
34,140.00
82
Chapter 6
FINANCIAL STUDY
The investment capital will come from the contribution of the partners. They
are to contribute three million five hundred thousand pesos (Php 3,500,000) each
for their initial capital contribution. The partnership profit and loss ratio is 50:50.
Table 42
Partners’ Contribution
Table 43
Land 1,200,000
Building 1,850,000
1,799,220
Machineries and Equipment
15,000
Furniture and Fixtures
162,345
Supplies
600,000
Delivery Vehicle
Pre-operating Expenses:
Table 44
Materials 1,250,000
Labor 250,000
Table 45
Blank Company
Projected Income Statement
For the Year Ended December 31, 2019-2023
Table 46
Blank Company
Projected Statement of Financial Position
December 31, 2019-2023
Table 47
Blank Company
Projected Statement of Partner’s Equity
For the Year Ended December 31, 2019-2023
Jhonalyn M. Galdones
Investment 3,500,000 4,057,506 5,078,683 6,675,974 8,827,753
Less: Withdrawal - - 250,000 1,000,000
Add: Share in Net Income (Loss) 557,506 1,021,177 1,597,291 2,401,779 3,175,295
Table 48
Blank Company
Projected Statement of Cash Flows
For the Year Ended December 31, 2019-2023
Table 49
Schedule of Accounts Receivable
Accounts
Sales Receivable Collection
Receivable
Year 1 8,936,610 893,661 - 893,661
2. 80% of the balance of the current year will be collected next year and the residual
balance of 20% will be collected on the year after next year. Same goes for the
succeeding years.
90
Table 50
Schedule of Allowance for Doubtful Accounts and Doubtful Accounts Expense
Allowance for Doubtful
Accounts Accounts
Doubtful Account
Receivable Receivable, net
Accounts Expense
Table 51
Schedule of Value Added Tax Payable
Table 52
Schedule of Salaries and Wages
Monthly No. of
Year 1 Year 2 Year 3 Year 4 Year 5
Salary Employees
Production:
Production Worker 8,400 2 201,600 201,600 211,680 211,680 222,264
Machine Operator 8,400 2 201,600 201,600 211,680 211,680 222,264
Direct Labor 403,200 403,200 423,360 423,360 444,528
Production Manager 14,400 1 172,800 172,800 181,440 181,440 190,512
Laboratory Technician 12,240 1 146,880 146,880 154,224 154,224 161,935
Indirect Labor 319,680 319,680 335,664 335,664 352,447
Distribution:
General Manager & 16,800 1 201,600 201,600 211,680 211,680 222,264
Accountant
Sales Manager 14,400 1 172,800 172,800 181,440 181,440 190,512
Cashier 8,400 1 100,800 100,800 105,840 105,840 111,132
Delivery Driver 8,400 1 100,800 100,800 105,840 105,840 111,132
Delivery Man 8,400 1 100,800 100,800 105,840 105,840 111,132
Security Guard 8,400 1 100,800 100,800 105,840 105,840 111,132
Utility Man 8,400 1 100,800 100,800 105,840 105,840 111,132
Salaries Expense 878,400 878,400 922,320 922,320 968,436
Total Salaries and Wages 1,601,280 1,601,280 1,681,344 1,681,344 1,765,411
Note:
Table 53
Schedule of 13th Month Pay
No. of
Year 1 Year 2 Year 3 Year 4 Year 5
Employees
Production Worker 2 16,800 16,800 17,640 17,640 18,522
Machine Operator 2 16,800 16,800 17,640 17,640 18,522
Production Manager 1 14,400 14,400 15,120 15,120 15,876
Laboratory Technician 1 12,240 12,240 12,852 12,852 13,495
General Manager &
1 16,800 16,800 17,640 17,640 18,522
Accountant
Sales Manager 1 14,400 14,400 15,120 15,120 15,876
Cashier 1 8,400 8,400 8,820 8,820 9,261
Delivery Driver 1 8,400 8,400 8,820 8,820 9,261
Delivery Man 1 8,400 8,400 8,820 8,820 9,261
Security Guard 1 8,400 8,400 8,820 8,820 9,261
Utility Man 1 8,400 8,400 8,820 8,820 9,261
Note:
1. Since salaries and wages increase by 5% every after two years, therefore, 13th month pay also
increase.
95
Table 54
Schedule of Benefit Contribution
For Year 1
Table 55
Schedule of Benefit Contribution
Table 56
Schedule of Operating Expenses
Table 57
Schedule of Depreciation (Building & Vehicle)
Vehicle
Delivery Vehicle 600,000 15 40,000 40,000 80,000 120,000 160,000 200,000
Table 58
Schedule of Depreciation (Furniture & Fixtures)
Furnitures&Fixtures
Office table & chair 10,000 6 833 833 1,667 2,500 3,333 4,167
Conference table &
5,000 6 1,667 1,667 3,333 5,000 6,667 8,333
chairs
Total 2,500 2,500 5,000 7,500 10,000 12,500
99
Table 59
Schedule of Depreciation (Machineries & Equipment)
Table 60
Summary of Depreciation
Annual
Year 1 Year 2 Year 3 Year 4 Year 5
Depreciation
Machineries & Equipment 280,987 280,987 561,974 842,961 1,123,947 1,404,934
Table 61
Projected Purchases (Shampoo)
Table 62
Projected Purchases (Conditioner)
Table 63
Projected Purchases (Soap)
Table 64
Projected Purchases (Lotion)
Table 65
Summary of Projected Purchases
2. Only 95% of Total Cost of Purchases can claim input VAT, the residual percentage (5%) is exempt from
VAT. Thus, to get the Total Cost of Purchases, Purchases net of VAT is added to Purchases not entitled
to VAT.
105
Table 66
Schedule of Cost of Goods Manufactured
Year 1 Year 2 Year 3 Year 4 Year 5
Raw Materials Inventory, Beg. 589,389 795,705 1,074,959 1,337,948
Add: Purchases 5,893,886 7,367,659 9,953,889 12,304,518 15,411,460
Raw Materials Available for Use 5,893,886 7,957,047 10,749,594 13,379,478 16,749,408
Less: Raw Material Inventory, End 589,389 795,705 1,074,959 1,337,948 1,674,941
Raw Material Used 5,304,498 7,161,343 9,674,635 12,041,530 15,074,467
Direct Labor 403,200 403,200 423,360 423,360 444,528
Manufacturing Overhead:
Utilities 137,270 144,134 151,341 158,908 166,853
Repairs and Maintenance 96,000 100,800 105,840 111,132 116,689
Indirect Labor 319,680 319,680 335,664 335,664 352,447
Depreciation Related to
280,987 280,987 280,987 280,987 280,987
Manufacturing
Total Manufacturing Overhead 833,937 845,601 873,831 886,691 916,976
Total Manufacturing Cost 6,541,635 8,410,143 10,971,826 13,351,580 16,435,971
Add: Work in Process, Beg. 654,163 906,431 1,187,826 1,453,941
Total Cost of Work in Process 6,541,635 9,064,307 11,878,257 14,539,406 17,889,911
Less:Work in Process, End 654,163 906,431 1,187,826 1,453,941 1,788,991
Cost of Goods Manufactured 5,887,471 8,157,876 10,690,431 13,085,465 16,100,920
Notes and Assumptions:
1. Raw Materials- End will be 10% of the Raw materials Available for Use
Table 67
Schedule of Cost of Goods Sold
Total Cost of Goods Available for Sale 5,887,471 8,746,623 11,565,093 14,241,975 17,525,118
Less: Finished Goods Inventory, End 588,747 874,662 1,156,509 1,424,197 1,752,512
Table 68
Schedule of Inventories
Table 69
Financial Analysis
Table 70
Payback Period
0 -7,000,000 -7,000,000
1 1,267,861 -5,732,139
2 1,869,148 -3,862,991
3 3,002,509 -860,482
4 4,383,285 3,522,802
5 4,618,470 8,141,272
860,482
Cash flow needed to reimburse the cost of capital
4,383,285
Divided by: Cash flow on the 4th year
Period required to reimburse the cost of capital on 0.196309895
the 4th year
Cumulative Year 3
Payback Period 3.196
Chapter 7
SOCIO-ECONOMIC STUDY
know the importance of innovating and starting a business that would largely
Inspiration to Entrepreneurs
The proposed project may inspire people who want to develop and start
their own desired business. With patience and hard-work in researching and
Employment Generation
opportunities for unemployed individuals. All employees hired will receive benefits
and gain experience and skills they can use in related fields.
Economic Contribution
The proposed business will provide positive impact to the economy. It will
pay the right amount of taxes and this is expected to contribute to the government.
111
Payment of tax will indirectly contribute public sectors such as taxes are used to
Environmental Contribution
Products of BNN Personal Care are made from all natural ingredients that
are not harmful and non-toxic to people and most especially to the environment.
The business aims to advocate everyone who also wants to make their own
business the use of natural components to create products in order not to harm
The business will not only aim in making profit but also be socially
responsible by donating every year to any foundation in Rizal. The business will
also conduct seminars on how to establish their own business with relation to BNN
products and any other product that can be made out of banana. All peels that will
get from used banana will donate to the farmers and gardeners in Tanay, Rizal to
Legal Responsibility
BNN Personal Care will comply with all the requirements needed in
establishing a business such as registering the business with the Bureau of Food
and Drugs (BFAD) to ensure the products are safe and licensed, Department of
Trade and Industry (DTI) to ensure the new business is registered, Bureau of
Internal Revenue (BIR) to ensure that the business will pay its tax and others.
112
CURICCULUM VITAE
JHONALYN M. GALDONES
Southville 10 Blk 12 Lot 16 Brgy. Plaza Aldea Tanay,Rizal
0975-885-0975
[email protected]
I. PERSONAL DATA
Age : 19
Birthday : November 3, 1998
Birthplace : Tanay, Rizal
Occupation : Student
Nationality : Filipino
Sex : Female
Civil Status : Single
Father’s Name : Joel E. Galdones
Mother’s Name : Edna Rona M. Galdones
IV. TRAININGS/SEMINARS
RAC Academy
PSBA, Manila
Research Orientation
Tomas Claudio Colleges
Be IT Seminar
DH Soriano Multimedia Hall
Tomas Claudio Colleges
APPENDICES
114
APPENDIX A
115
116
117
118
APPENDIX B
SURVEY RESULT
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Shampoo & Conditioner Soap Lotion
119
APPENDIX C
General Partnership
ARTICLES OF PARTNERSHIP
of
That we, the undersigned partners, all of legal age, residents and citizens of the
Philippines, have on this day voluntarily associated ourselves together for the purpose of
forming a general partnership under the following terms and conditions and subject to existing
and applicable laws of the Republic of the Philippines:
ARTICLE II. Business Purpose: That the purpose/s for which this partnership is
formed is/are:
Produce and offer personal care products in the market
ARTICLE III. Principal Place of Business: That the principal place of business of this
partnership shall be located at:
Sampaloc Rd.Brgy. Plaza Aldea, Tanay, Rizal
(complete address)
120
ARTICLE IV. Term of Existence: That this partnership shall have a term of 10 years
from and after the original recording of its Articles of Partnership by the Securities and Exchange
Commission.
ARTICLE VI. Capital Contributions: That the capital of this Partnership shall be the
amount of Seven Million pesos (P 7,000,000), Philippine Currency, contributed in cash by the
partners, as follows:
That no transfer of interest which will reduce the ownership of Filipino citizens to less
than the required percentage of capital as provided by existing laws shall be allowed or
permitted to be recorded in the proper books of the partnership.
ARTICLE VII. Sharing Ratios: That the profits and losses of this partnership shall be
divided and distributed proportionately on the ratio of 50:50.
such acts as are necessary and expedient in the management of the firm and to carry out its
lawful purposes.
IN WITNESS WHEREOF, we have hereunto affixed our signatures this 20th day of
December, 2018, at Tanay, Rizal.
______________________ _______________________
(name of partner) (name of partner)
TIN TIN
______________________ _______________________
(name of partner) (name of partner)
TIN TIN
ACKNOWLEDGEMENT
known to me and to me known to be the same persons who executed the foregoing Articles of
Partnership constituting of _____pages, including this page where the acknowledgement is
written, and they acknowledged to me that the same is their free and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and place above written.
NOTARY PUBLIC
Doc. No. ______;
series of 20 ______.
123
APPENDIX D
APPENDIX E
‘
125
APPENDIX F
APPENDIX G
127
APPENDIX H
APPENDIX I
131
SANITARY PERMIT
132
BIBLIOGRAPHY
Internet
admin.php?adm1id=0458
personal-care/philippines
https://www.gcimagazine.com/marketstrends/segments/natural/Preferences-for-
OrganicNatural-in-Beauty-and-Personal-Care-See-Growth-Space-
261828421.html
Unpublished Materials