Southern Philippines Agri-business and Marine and Aquatic School of Technology

Mati, Digos CityGRADUATE SCHOOL

Business Plan

Pagas, Mary Grace O.August 2014

1.0 Executive Summary

“Money sa Mani” Project is an Income Generating Project that will

generate additional funds to be used for school supplies and other

school activities. It will be a Project that will make use of roasted

peanuts as its product to bring in money. Helpers of the project can be

those parents or siblings of some students. The additional income they

can get in the project would be of additional help to their respective

families.

The start-up capital would be Php 500.00 to begin the operation

of the project. Projected sales for the year 1 with 10 months operation

would be Php 149,760.00, Php 164, 736.00 and Php 184,504.32 for

year 2 and year 3, respectively. The cost per pack is Php 3.20 and the

selling price would be Php 5.00 per pack, therefore is a profit of Php

1.80 per pack.

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Table of ContentsTitle Page 1

1.0 Executive Summary 2

Table of Contents 3

1.1 Goals 4

1.2 Mission 4

1.3 Keys to Success 4

2.0 Management and Organization 5

2.1 Activities of the Business 5

2.2 Personnel Plan 5

Table 1.0. Personnel Plan 5

2.3 Hiring of Employees 5

3.0 Marketing Plan 6

3.1 Product 6

3.2 Price 6

3.3 Place 6

3.4 Promotion 6

3.5 Customer 6

3.6 Competition 7

4.0 Wok Plan 8

Table 2.0. Work Plan 8

5.0 Start Up Capital 9

6.0 Projected Income Statement 9

Table 3.0. Income Statement 9

7.0 Cash Flow Plan 10

Table 4.0. Cash Flow Plan10

8.0 Break Even Analysis 10

Table 5.0. Break Even Analysis 10

9.0 Balance Sheet 11

Table 6.0. Balance Sheet 1110.0 Projected Profit and Loss Statement 11

Table 7.0. Profit and Loss Statement 11Appendices

1.0. Costing 122.0. How to Produce Roasted Peanuts 123.0. Projected Monthly Sales 13

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1.1 Goals

Generate income for funding of school activities and for school

supplies

Establish strong customer loyalty by providing good quality

products

1.2 Mission

Provide customers with the best prices on quality products

1.3 Keys to Success

Top-quality products

Excellent customer service

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2.0 Management and Organization

“ Money sa Mani ” Project will be managed by Mary Grace O. Pagas.

2.1. Activities of the Business

a) Managing the overall operations

b) Roasting and Packaging of Peanuts

c) Purchasing of Raw Materials and other needs; Delivery of

goods

2.2 Personnel Plan

a) Manager (1)

b) Helpers (2)

Table 1.0. Personnel Plan

Personnel Plan 2014 2015 2016Manager 1 Php 5,000.00 Php 5,500.00 Php 6,000.00Helpers 2 10,000.00 11,500.00 12,000.00Total Employees 15,000.00 16,500.00 18,000.00

2.3 Hiring of Employees

Employees may be parents/siblings of some students who could use a

source of revenue. That way, they may be able to receive income to

help support their respective families.

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3.0 Marketing Plan

3.1 Product

“Money sa Mani” Project sells good quality roasted peanuts in sealed

packages.

3.2 Price

Prices of the products would be ensured to be affordable to the public.

3.3 Place

The production of the products will be at the school canteen. The food

preparation area shall be clean and hygienic. It shall be large enough

to carry out the various stages of peanut roasting and packaging.

3.4 Promotion

- The products shall be available in the school canteen for

students and teachers, alike to enjoy the roasted peanuts.

- Also, local snack houses shall be negotiated to make the

products available in their respective establishments.

3.5 Customers Customers of “Money sa Mani” Project shall include students, teachers

in the school premises, and those of the local snack houses.

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3.6 Competition

Competition includes other roasted peanut producers in the locality. To

catch up with the competitions, “Money sa Mani” Project offers good

quality products at reasonable prices and good customer service.

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4.0 Work Plan

Table 2.0. Work Plan

ActivityDay

(Monday - Saturday)

No. of Employees

Cash(Monthly)

Managing the overall operations

Daily 1 Php 500.00

Roasting and Packaging of

PeanutsDaily 1 500.00

Purchasing of Raw Materials

and other needs;Delivery of Goods

Daily 1 500.00

TOTAL 1,500.00

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5.0 Start – Up Capital

The “Money sa Mani” Project will have a Php 500.00 as a start-up

capital to kick off operations.

6.0 Projected Income Statement

Table 3.0. Projected Income Statement

    2014   2015   2016

SalesPhp

149,760.00

Php

164,736.00

Php

184,504.32

Purchases  124,800.

00  137,280.

00  153,753.

60Inventory Beginning       350.00   500.00Inventory End   350.00   500.00   650.00

Cost of Sales  124,450.

00  137,130.

00  153,603.

72

Gross Income  25,310.0

0  27,606.0

0  30,900.7

2             Other Expenses:            

Salaries  15,000.0

0  16,500.0

0  18,000.0

0Miscellaneous   5,000.00   5,000.00   5,600.00Total Other Expenses  

20,000.00  

21,500.00  

23,600.00

             Net Income   5,310.00   6,106.00   7,300.72

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7.0 Cash Flow Plan

Table 4.0. Cash Flow Plan

    2014   2015   2016

SalesPhp

149,760.00

Php

164,736.00

Php

184,504.32

Purchases  

124,800.00  

137,280.00  

153,753.60

Expenses  

20,000.00  

21,500.00  

23,600.00

             Total   4,960.00   5,956.00   7,150.72

8.0 Break Even Analysis

Table 5.0 Break Even Analysis

    2014   2015   2016

SalesPhp

149,760.00

Php

164,736.00

Php

184,504.32

Cost of Sales  124,450.

00  137,130.

00  153,603.

00

Gross Margin  25,310.0

0  27,606.0

0  30,900.7

2Gross Margin (%)   16.90   16.75   16.74             

Total Indirect Cost  20,000.0

0  21,500.0

0  23,600.0

0

Gross Margin  25,310.0

0  27,606.0

0  30,900.7

2Break Ecen Point Sales Level   79.02   77.88   76.37

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9.0 Balance SheetTable 6.0. Balance Sheet

      2014   2015   2016Asset              

 Cash on Hand

Php

5,460.00

Php

11,416.00

Php

18,566.72

  Inventory   350.00   500.00   650.00

  Total  5,810.0

0  11,916.

00  19,216.

72Liabilities and Capital              Capital   500.00   500.00   500.00

  Income  5,310.0

0  11,416.

00  18,716.

72

  Total  5,810.0

0  11,916.

00  19,216.

72

10.0 Projected Profit and Loss Statement

Table 7.0. Projected Profit and Loss Statement

    2014   2015   2016

SalesPhp

149,760.00

Php

164,736.00

Php

184,504.32

Purchases  124,800.

00  137,280.

00  153,753.

60Inventory Beginning       350.00   500.00Inventory End   350.00   500.00   650.00

Cost of Sales  124,450.

00  137,130.

00  153,603.

72

Gross Income  25,310.0

0  27,606.0

0  30,900.7

2             Other Expenses:            

Salaries  15,000.0

0  16,500.0

0  18,000.0

0Miscellaneous   5,000.00   5,000.00   5,600.00Total Other Expenses  

20,000.00  

21,500.00  

23,600.00

             Net Income   5,310.00   6,106.00   7,300.72

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APPENDIX

1.0 Costing

Peanuts Php 2.75Oil 0.20

Salt 0.05Garlic 0.10

Package 0.103.20

Selling Price – Php 5.00 / pack

2.0 How to produce roasted peanuts

The process involves the following steps:-

(1) Decorticating: Removal of outer skin or de-shelling. This can be done either manually or mechanically using peanut decorticator, which can be hand, operated or motorized. A wide range of decorticators is available.

(2) Cleaning and Sorting of shelled peanuts. Removal of shells, dirt and extraneous matters manually.

(3) Roasting of shelled peanuts which can be done on open fire using a simple frying pan and a stove (fuel can be Gas, Diesel, Kerosene, Charcoal, Firewood, Agriculture wastes etc.), carefully turning the nuts continuously by a spoon or wooden ladle.

(4) Hulling: By means of rubbing action the red skins are removed. This is also called dehusking. The roasted nuts are cooled quickly in the air to prevent uneven development of color. Dehusking is difficult when the nuts are hot as on cooling the skins get loose and are gently rubbed using both hands or against a wire mesh or flywire. The loose skins are blown off using either winnowing baskets or by tossing the nuts on a tray skillfully or even by using electric fans or blowers.

(5) Salting: Powdered salt when sprinkled over peanuts won't stick, hence for salting there are two ways:

a) The shelled nuts before roasting are soaked in salt water - about 5% concentration for 30 to 60 minutes and then roasted as described above.

b) More simpler method is to use a small amount of higher concentration of salt water brine) and sprinkling over or applying it by hands on the roasted peanuts and again roasting for a short time (say, 2-4 minutes) to get rid of the excess moisture.

(6) Packing and sealing: This involves cooling of salted peanuts in trays and filling or packing them 'm plastic pouches and heat sealing them 'm airtight containers.

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3.0 Monthly Sales

Sales Php June July August September October December January February MarchPurchases 12,480.00 12,480.00 12,480.00 12,480.00 12,480.00 12,480.00 12,480.00 12,480.00 12,480.00Inventory BeginningInventory End 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00Cost of Sales 12,445.00 12,445.00 12,445.00 12,445.00 12,445.00 12,445.00 12,445.00 12,445.00 12,445.00

Gross Income 2,531.00 2,531.00 2,531.00 2,531.00 2,531.00 2,531.00 2,531.00 2,531.00 2,531.00

Other Expenses:Salaries 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00Miscellaneous 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00Total Other Expenses 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Net Income 531.00 531.00 531.00 531.00 531.00 531.00 531.00 531.00 531.00

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