BusinessPlan 1

Business Plan
Potatolicious
Ipil Street, Daro Dumaguete City
035-527-203
Group Members
Dan Lawrence del Prado

Princess Jean M. Flores
Precious Jimenez
Mary Fel Sanoy
Lord Phillip Tero
_
(March 27, 2022)
1
DEPARTMENT OF EDUCATION
Schools Division of Negros Oriental
NEGROS ORIENTAL HIGH SCHOOL
Senior High School Department
Table of Contents
Executive Summary.............................................................................
Background ..................................................................................
Vision-Mission ……………………………………………………………………….
Description of Products........................................................................
Market Description..............................................................................
Competition..........................................................................................
Marketing Strategies............................................................................
Manufacturing /Production Plans........................................................
Financial Projections............................................................................
Income Statement........................................................................
Cash Flow Analysis......................................................................
Balance Sheet................................................................................
Financial Ratios............................................................................
Budget
Contingency Plans.................................................................................
Appendices.............................................................................................
Organizational Structure...............................................................
Product Label ………………………………………………………………………. …
Screenshot (online platform, physical store, etc.) ………..
Executive Summary
Potatolicious are interested in the small potato business in Ipil Street,Daro
Dumaguete City later this year.
Potatolicious have initially decided to include the following potato flavor and sauce in
their menu: matchup and ketchup for potato pancake, cheesesticks, and cheeseball.
The estimated shelf life of the potato products is up to 4 days at refrigeration
temperatures. The group intends to market this product in 10 pcs per box for potato
pancakes, cheeseballs and cheesesticks. Special attention has been taken to creating
an appealing label that emphasizes the attractiveness and specialty nature of the
products. During this pandemic, the group wants to distribute the products to their
houses through online advertising.
Distribution of potatolicious products will begin in the local Piapi and Daro Dumaguete
areas. Competitors have a well-established name and reputation in this field, thus
product introduction should be little resistance. A well-thought-out marketing approach
will be implemented.
Financial analyses indicate that if the projection is realized, potatolicious is liquid as

evidenced by the ratios computed (refer to financial ratios).
2
Background
Potatolicious was established in 2022 by Negros Oriental High School ABM
students. It was just a casual get-away with the CEO and her coworkers until they
stopped by the potato corner, where their favorite snack is served. They are all potato
addicts, which is why they get along. After spending time together, they decided to
start a business that they love and are passionate about. They wanted to have a
distinct flavor of potatoes, therefore Potatolicious was created. They possessed their
efforts and came up with new items produced with potatoes, which include potato
ccheese ballspancakes, and a cheese stick. Potatolicious products are not only
delicious but also healthy food.
Vision
To be one of Dumaguete's most successful snack bars, offering delicious, healthful, and
unique products. To expand our business into new areas. We attempt to go above and
beyond the expectations of our customers in order to maximize product sales.
Mission
Provides customers with delightful, healthful, and unique foods that enable them
to have fun. To provide high-quality food at a good price, as well as to make customers
feel at ease and satisfied with our products and services.
3
Competition
Dumaguete City is well known for its local street food stalls along the coast of the
city boulevard. Several vendors in this area compete not just in terms of customers but
also for the taste of their street food products due to the similar distribution of products.
The area has the perfect ambiance for people to unwind therefore many businesses
settled along this side of the coast. In this situation, vendors must provide proper
display, pricing, and service to stand out. Branding is necessary for this area so people
can easily find the right street food producer in the sea of settling businesses.
The strength of these products is the brand. These producers have been selling
their products in this area for several years and have become well known. Therefore
Potatolicious, a new business entering this area, can easily catch these customers'
attention to try its product. Potatolicious can also freely sell the product at a very
affordable price, due to its availability of quality and also affordable ingredients. With
potato cheese stick, pancakes and cheese balls are worth 60 pesos per box including a
special sauce to enjoy. Another strength is the uniqueness of the presentation of the
products, service, and addition of pleasant ambiance of Potatolicious’ area to the
pleasing environment of the boulevard.
The weakness of these products is the lack of variety for consumers to enjoy
even more. For the start of the settlement of Potatolicious in the area, the business will
only be producing 2 products with only its signature flavors that are already familiar to
consumers.
Marketing strategies
The distribution of potatolicious products will immediately begin in the Piapi and Daro
Dumaguete City areas, but orders from surrounding towns in the locale may be catered
to. To introduce the products, the company will establish a Facebook page to handle
consumer orders and inquiries. Products will either be delivered to their houses, or they
can go to the shop. Customers can pay with cash or Gcash.
4
Product Description
Initially, Potatolicious opted to offer the following sauces: matchup, and ketchup.
In refrigerated conditions, potato goods have a shelf life of up to four days. The
company plans to sell this product in 10-piece boxes for potato pancakes and
cheeseballs and cheese sticks. The creation of an appealing label that underlines the
beauty and special nature of the products has received special consideration. Our
company can also accommodate large orders for special occasions such as birthdays
and weddings.
Market Description
A combination of potato and cheese with crunchiness and a crispier recipe is
unlike anything else. The outside of these balls and pancakes is crispy and golden
brown, but the inside is soft and fluffy with melted cheese. The outside of these balls
and pancakes is crispy and golden brown, but the inside is soft and fluffy with melted
cheese.
While there are potato-based items available in our area, ours will stand
out in terms of taste, aesthetics, packaging, and, most importantly, service.
More than the product's attractiveness and taste, people appear to prefer and
patronize those who can provide not only the product's look but also its
intangible value —- service and devotion. Potatoes are not just delicious but
also healthy food.
5
Manufacturing Plans
Potatolicious is a company that owns spaces and runs according to
a set of specific needs. The company will first generate an average 80
pieces per product, therefore 240 pieces eevery day there will be potato
pancakes, cheeseballs, and cheese stick, but will also depend on the
number of orders. Depending on the market situation, production
processes may be changed from time to time. Ingredients will be provided
by a trustworthy local supplier.
Financial Projections
Multi-year projections for income, cash flow, and balance sheet
statements, as well as estimated financial ratios, are included on the
following pages. Only the Potatolicious is included in these projections.
6
Potatolicious
Pro Forma Income Statement
January 2022-December 2022
Net Sales ₱ 518,400.00

Less: Cost of Goods Sold Gross ₱ 260,080.00
Income ₱ 258,320.00
Operating Expenses
Labor ₱ 10,000.00
Utilities ₱ 11,000.00
Insurance ₱ 2,600.00
Sales Promotion ₱ 12,000.00
Delivery and Transportation ₱ 15,000.00
Miscellaneous ₱ 12,500.00
Total Expenses ₱ 63,100.00
Net Income Before Taxes ₱195,220.00

Less: Income Taxes Net ₱ 39,044.00
Income After Taxes ₱ 156,176
Assumptions:
1 Net sales based on price of ₱ 6
per pc.240 pcs. Daily x 30 days
x 12 mos.
2 Cost of goods sold includes ingredients, packaging materials, labels,

and co-packing expenses are estimated at 60% of sales.
3. No salary will be drawn by the owners\managers in the first year. All profits will
be re-invested for new market entry and increased production.
4. Capitalization does not exceed 5M, 20% tax is applied to Net Income before
taxes.
7
Potatolicious
Pro Forma Income
Statement January 2023
- December 2023
Net Sales ₱ 570,240.00

Less: Cost of Goods Sold ₱ 286,088.00
Gross Income ₱ 284,152.00
Operating Expenses
Labor ₱ 16,000.00
Miscellaneous ₱ 12,500.00
Total Expenses ₱ 69,100.00
Net Income Before Taxes ₱ 215,052.00

Less: Income Taxes ₱ 43,010.4
Net Income After Taxes ₱ 172,041.6
Assumptions:
1 Net sales based on price of ₱ 6 per pc.x240 pcs. Daily

x 30 days x 12 mos.+10% of previous year sales
Sales estimates based on 10% sales increase from previous year.

and co- packing expenses are estimated at 60% of sales.
3 No salary will be drawn by the owners/managers in the second year.

All profits will be re-invested for new market entry and increased
production.
8
4. Capitalization does not exceed 5m, 20% corporate tax is applied.
Potatolicious
Pro Forma Income
Statement January 2024
- December 2024
Net Sales ₱ 627,264.00
Less: Cost of Goods Sold ₱314,696.8
Gross Income ₱ 312,567.2
Operating
₱ 20,000.00
Expense
s Salary
Labor ₱ 10,000.00
Miscellan ₱ 12,500.00
eous Total ₱ 88,100
Expenses
Net Income Before Taxes ₱ 224,467.2
Less: Income ₱ 44,893.44
Taxes Net Income ₱ 179,573.76
After Taxes
Assumptions:
1. Net sale based on the price of
₱ 6 per pc.240 pcs. Daily x 30
days x 12 mos. + 10% of the
previous year sales
Sales estimates are based on

10%sales increases from the
previous year.
9

and co-packing expenses are estimated at 60% of sales.
3. Profits will be drawn by the owners/managers in the third year.
4. Capitalization does not exceed 5M, 20% corporate tax is applied.
Potatolicious
Pro Forma Cash Flow Statement
January 2022 - December 2024
Year 2022 Year 2023 Year 2024

Revenues ₱ 518,400.00 ₱570,240.00 ₱ 627,264.00
Expenses
Cost of Goods Sold 260,080.00 286,088.00 314,696.80
Salaries 20,000.00
Labor 10,000.00 16,000.00 10,000.00
Utilities 11,000.00 11,000.00 12,000.00
Insurance 2,600.00 2,600.00 3,600.00
Sales Promotion 12,000.00 12,000.00 15,000.00
Delivery and 15,000.00 15,000.00 15,000.00
Transportation
Miscellaneous 12,500.00 12,500.00 12,500.00
Taxes & Licenses 39,044.00 43,010.4 44,893.44
Net Increase/Decrease in
CASH
₱ 156,176.00 ₱172,041.6 ₱ 179,573.76
10
Potatolicious
Pro Forma Balance Sheet
December 31, 2024
Current Assets
Cash 252,200.00
Accounts Receivable 80,457.00
Inventory 60,040.00
Pre-Paid Expenses 1,046.00
Total Current Assets ₱ 393,761.00
Fixed Assets
Building ₱ 68,100.00
Equipment 38,150.00
Gross Fixed Assets ₱ 106,250.00
Less Accumulated Depreciation ₱ 10,625.00
Net Fixed Assets ₱ 95,625.00
Total Assets ₱ 489,486.00
LIABILITIES AND OWNERS EQUITY

Liabilities
Current Liabilities
Accounts Payable ₱122,017.00
Notes Payables ₱ 110,230.00
Total Current Liabilities ₱249,896.00
Long Term Liabilities

Mortgage Payable ₱ 17,949.00
Total Liabilities ₱ 250,196.00
₱ 159,100.00
Owner's Equity
80, 190.00
Retained Earnings
₱239,290.00
11
Total Liabilities and Owner's Equity ₱ 489,486.00
Potatolicious
Financial Ratios December 31, 2022
Return on Equity = Net Profit before Taxes = 195,220.00 = 0.81%
Net Equity 239,290.00
Current Ratio = Current Assets = 393,761.00 = 1.6

Current Liabilities 249,896.00
Quick Ratio = Quick Assets = 333,675.00 = 1.3

Current Liabilities 249,896.00
Debt to Equity = Total Liabilities = 250,196.00 = 1.04

Net Equity 239,290.00
Analysis
Return on Equity shows that our company gets returns equivalent to 0.81% of our
investment will be made over a three-year period and will be depending on the aim.
The company is also liquid, as the current ratio shows that for every peso of current
liabilities, the company has around 1.6 pesos of current assets to pay based on target.
When the current ratio is calculated, it can be inferred that the company has the ability
to cover its current liabilities entirely with its fast assets, as the company has 1.3 quick
assets for every peso of current liability.
The debt to equity ratio, on the other hand, shows that the company's
liabilities are 1.04 times its equity. In the coming years, the corporation will
try harder to reduce its liabilities and raise its retained earnings or equity.
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Contingency Plans
While the strategic goals for Potatolicious were carefully planned, it is possible
that they will not be met. The company has opted to define a tolerance zone for fulfilling
sales and financial targets. A 10% negative departure from planned sales and estimated
returns on assets will be permitted for both sales and financial targets. Certain steps will
be taken if sales objectives and returns on investment fall short of expectations by more
than 90%. These are some of the actions:
1. For unacceptable sales levels during the first year: Potatolicious will
tackle the problem by boosting promotion and advertising both in the
actual store and online. Even during peak weekend hours, the company
will personally organize and carry out these deals. If sales do not grow
within one month of putting in the effort, potatolicious will consider other
options for promoting the product.
2. For unacceptable sales levels in Dumaguete City: Sales will be

assessed after 6 months of operation. Potatolicious will explore
expanding its reach into the surrounding towns of Negros Oriental if
sales do not match expectations.
3. For unacceptable business liquidity: In the event that the business lacks liquidity,
Potatolicious will review its accounts receivable procedures to ensure that payment
periods are reasonable and that payments are received on time. Cash flow
estimates will also be examined to see if unforeseen cash layouts/expenses are
affecting the company's financial sustainability.
4. For unacceptable returns on equity: Potatolicious will first assess and compare
the per-unit expenses of manufacturing and marketing with sales prices if returns on
assets and owners' equity fall below acceptable levels. If the profit margins are too
thin, a product price rise will be considered. However, because proven substitutes
are already available at cheaper costs, a price rise may result in a loss of sales,
making this option inappropriate for products marketed. As a result, Potatolicious
will explore prospects for lowering production costs and investigate other
13
marketing/distribution options.
Appendix 1: Organizational Structure
CEO
Princess Jean M.
Flores
General Manager
Dan Lawrence del

Prado
Vice-President Vice-President Vice-President

Sales and marketing Finance and Accounting Manufacturing
Marifel Sanoy Precious Jimenez Lord Phillip Tero
14
ACCOUNTS PRODUCTION
MARKETING SALES PURCHASING DISTRIBUTION
RECEIVABLE
Appendix 2 : Product Label
15
Appendix 3
https://www.facebook.com/Potatolicious-103332452344182/
16

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Business Plan

Dan Lawrence del Prado

(March 27, 2022)

Manufacturing /Production Plans........................................................

Financial analyses indicate that if the projection is realized, potatolicious is liquid as

Net Sales ₱ 518,400.00

Net Income Before Taxes ₱195,220.00

2 Cost of goods sold includes ingredients, packaging materials, labels,

Net Sales ₱ 570,240.00

Net Income Before Taxes ₱ 215,052.00

1 Net sales based on price of ₱ 6 per pc.x240 pcs. Daily

Sales estimates based on 10% sales increase from previous year.

2 Cost of goods sold includes ingredients, packaging materials, labels,

3 No salary will be drawn by the owners/managers in the second year.

4. Capitalization does not exceed 5m, 20% corporate tax is applied.

Sales estimates are based on

2 Cost of goods sold includes ingredients, packaging materials, labels,

3. Profits will be drawn by the owners/managers in the third year.

4. Capitalization does not exceed 5M, 20% corporate tax is applied.

Year 2022 Year 2023 Year 2024

Total Assets ₱ 489,486.00

LIABILITIES AND OWNERS EQUITY

Long Term Liabilities

Total Liabilities and Owner's Equity ₱ 489,486.00

Current Ratio = Current Assets = 393,761.00 = 1.6

Quick Ratio = Quick Assets = 333,675.00 = 1.3

Debt to Equity = Total Liabilities = 250,196.00 = 1.04

2. For unacceptable sales levels in Dumaguete City: Sales will be

Appendix 1: Organizational Structure

Dan Lawrence del

Vice-President Vice-President Vice-President

Marifel Sanoy Precious Jimenez Lord Phillip Tero

Appendix 2 : Product Label

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