Davao City National High School

F.Torres, Davao City

BUSINESS PLAN
MyMunchkins INC.

In partial fulfillment of the course requirement of

Entrepreneurship

Submitted by:

11-Jasper
Mike Adducol
Razzel Delos Santos
Vina Agcang
Ropel Atos

Submitted to:

RICARDITO GADIANE
ENTREPRENEURSHIP TEACHER

SEPTEMBER 2019
 BUSINESS PLAN

MyMunchkins INC.
Rivera Village, Cabaguio, Davao City, Philss. 8000
mymunchkinsisdelicious@gmail.com

OWNED BY:

Mike Adducol
Razzel Anne Delos Santos
Vina Agcang
Ropel Atos

Business Plan (Entrepreneurship) 2

 TABLE OF CONTENTS

I. INTRODUCTION
1. Proposed name of the business …………………………………….. 5
2. Address of the business …………………………………….. 5
3. Name of the owner/s …………………………………….. 5
4. Description of the business …………………………………….. 5
5. Location of the Business …………………………………….. 5
6. Funding requirements &source …………………………………….. 5

II. EXECUTIVE SUMMARY

1. Vision, Mission, Goals & objectives of the business …………….. 6
2. Business Model/Description …………………………….. 7

III. ENVIRONMENTAL ANALYSIS

1. PESTEL ANALYSIS …………………………….. 11

2. Political Forces …………………………..… 12

3. Economic Forces ……………………………. 12
4. SocialForces …………………………….. 12
5. Technological Forces ……………………………. 13

6. Environment Forces ……………………………. 13

7. Legal Forces ……………………………. 13
8. Competitive Forces Matrix & Description …………………………….. 15

9. SWOT Analysis …………………………… 17

IV. ORGANIZATIONAL PLAN

1. Form of business organization …………………………………….. 26

2. Organizational Structure ………………………………….. 26
3. Roles and responsibilities ……………………………….. 26
4. Business Experience and Qualifications of the Entrepreneur
5. Pre-Operating Activities ……………………………….. 27
6. Pre-Operating Expenses ……………………………….. 27
7. Office Equipment ……………………………….. 28
8. Administrative Expenses ……………………………….. 28
9. Salary Administrative Requirements ………………………….. 28

Business Plan (Entrepreneurship) 3

V. PRODUCTION PLAN
1. Production Process ……………………………………….. 29
2. Processing plant &requirement ………………………………….. 29
3. Production Cost ………………………………….. 30

VI. MARKETING PLAN

1. Product …………………………………….. 32
2. Place ………………………………….. 35
3. Price …………………………………….. 37
4. Promotion …………………………………….. 39

VII. FINANCIAL PLAN

1. Major assumptions /project Cost ………………………….. 40

2. Projected statement of comprehensive income…………………………40

VIII. Curriculum Vitae …………………………………… 42

IX. Appendix …………………………………… 47

Business Plan (Entrepreneurship) 4

 I. INTRODUCTION
My Munchkins INC., established on September 23,2019. This is a café
but focused more on Munchkins and coffee as the drink since this is a
Corporation, thus, the owners are CaetanyaArcipe, Mike Adducol, Razzel
Delos Santos. The location of the business is in Davao City and the Davao City
National HighSchool, F. Torres, Davao city, Grase 11-Carnellian . The said
product, which is mainly the munchkins, will have two flavors, Grated
coconut as the coating and the other one will be crushed grahams. The
Ingredients are Crushed Grahams, Condensed Milk, Butter and Grated
Coconut. The Materials are Bowl, Spoon, Mixer, Fork, plate, gloves and
Teaspoon.

The product will be made by the owners itself and the funding
requirement and source, the money, that will be used are from the owners
themselves. The target customers are the students and teachers of Davao
Cuty National High School., especially the Grade 11 students since the
owners are also in Grade 11.
The Owners chose the munchkins as their business since it is more
convenient to sell, cheap in terms of the possible overall expenses, can
attract customers, doesn’t take a lot of time, sweet and youthful since
munchkins is a pastry and especially a sweet that can really attract people to
buy from different ages especially youth, who loves to eat , most likely sweets,
and the owners aim is to be able to sell and make it a long lasting business
since we all know munckins can be made easily and sell easily but what we
have in our munchkins is the constant taste or the longevity of the taste and
can adapt well in any changes that may occur but still the concept of the
being of the munchkins is still their but can also be developed from time to
time. MyMunchkins, Inc. not only make and sells munchkins but also coffee,
that’s why, it can also be referred as a café, but MyMunchkins focuses more
Business Plan (Entrepreneurship) 5
on the Munchkins. MyMunchkins have well-behaved, friendly, approachable
and creative employees that the business is proud of and MyMunchkins goal
is to be a leading brand.

II. EXECUTIVE SUMMARY

1.VISION, MISSION, GOALS, AND OBJECTIVES

VISION :
MyMunchkins envisions to be a no.1 leading brand for sweets and will last
longer generations to generations.

MISSION :
To fulfill its vision, MyMunchkins mission are;
1. Provide a proper and happy Customer service.
2. Employees must maintain disciplined, friendly and approachable.
3. Promote an eco-friendly product.
4. To make the products have balanced taste in terms of its sweetness.
5. Don’t forget the unique features and personalization of product.
6. Good Service at point.
7. Cleanliness and Time Management of service to customers.

GOAL:
To be the best of the best, the leading brand and to be Customers favorite.

OBJECTIVES :
The Objectives of MyMunchkins to reach its goals are;
1. Provide the best product.
2. Disciplined, Friendly and Approachable Employees.
3. Stay with the concept of the sweets.
4. Maintain Cleanliness and Neatness.

Business Plan (Entrepreneurship) 6

 2. BUSINESS MODEL

KEY ACTIVITIES
CUSTOMER
-Production VALUE RELATIONSHIPS
PROPOSITIONS
KEY PARTNERS -Marketing -Attract Youth
-Quality
-Management -Product CUSTOMER
Product
Advertisement SEGEMENTS
-One of the
-Partnership -Disciplined,
suppliers of -Students and
with Buducks Friendly and -Sales talk
Buducks, INC.
Inc. Teachers of
Approachable
PASDI
Employees
-Labor CHANNELS
KEY RESOURCES -Youth
-Affordable
-Resources -Through
and suppliers -Human -Even Adults
-Unique Emails
of ingredients Resources
Features
-In Person
-Labor Making
-Good Service Interaction
-Packaging

COST STRUCTURES
REVENUE STREAMS
-Ingredients for the Product
-Affordable
-Packaging
-Fair Pricing
-Human Resource Wages and
Transportation

Business Plan (Entrepreneurship) 7

BUSINESS MODEL DESCRIPTION :
1. Offer Value Propositions

Quality Product, With the ingredients that will be used are clean, safe,
edible and quality comes first. A disciplined, friendly and
approachable employee in order for customers to buy the product
through person to person interaction. Affordability, the price must be
worth it from the product made.

2. Customer Segments

The Business allocation at Philippine Academy of Sakya Davao (PASDI),

Most probably the targeted customers are the students and teachers.

3. Distribution Channels

Through Facebook page or/and email, the customers can leave a

message or email through this social media and they can also ask for
further information regarding the business. Person to person transaction
can also be done and the best way to communicate the business.
MyMunchkins will also provide a business card for further information.

4. Customer Relationships

MyMunchkins aims to attract the Youth customers because the scope

of the place has more youth or students and the unique features that
fits to the current generation. Through the sales talk, there’s a greater
possibility of success in the business that is why it is important for
employess to be disciplined, friendly and approachable. MyMunchkins
will also have a Product Advertisement through talking or short video.

5. Key Activities

Production of the product by buying the ingredients from the market or

any available stores then preparing it and lastly, making the product.
Marketing the product through advertisement or sales talking to the
dear customers. Management, employees and the owners will help
hand in hand so that the business will not fail. With right amount,
disciplined, friendly and approachable employees, nothing is
impossible. Partnership with Buducks, INC. will also give benefit to the
business.

Business Plan (Entrepreneurship) 8

6. Key Resources

Human Resources, ingeredients will be bought by the employees in the

market and the labor making means, it is made by the employees or
owners themselves and packaging it through cupcake papers and
drinks in a plastic cup.

7. Partner Network

MyMunchkin key partners is the Buducks, INC., it will benefit the business
since MyMunchkins will supply products in Buducks which is a café. The
labor because the products will be made and also in the market where
the ingredients will be bought.

8. Cost Structure

MyMunchkins will be spending on the ingredients for the product, the

Packaging which is cupcake papers, marketing and human resources’
wages and the transportation of the products.

9. Revenue Streams

It is affordable, fair pricing and 10% added for profit. The product is
worth it with the price and the money that the customers will spend, will
be worth it and not wasted by buying the product.

Business Plan (Entrepreneurship) 9

 III. ENVIRONMENTAL ANALYSIS

PESTEL stands for “Political, Economic, Sociological, Technological,

Environmental and Legal” factors. A PESTEL analysis is a useful tool for
understanding the industry situation , and is often used in conjunction with a
SWOT analysis to assess the external environment of an individual business.

The aim of this paper is to discuss the environmental analysis of MyMunchkins.

In this present society, most businessmen with their business astonishes with
changes takes place in our environment especially in the external
environment.

In any kind or type of business are facing the uncertainities in the external
environment becase the changes can’t be controlled but can only make a
solution. For example, in MyMunchkins, the big threat is the competitors such
as Dunkin Donuts will have a huge discount in their products or promos.

So in this paper, it will discuss about the external environment of MyMunchkins

and how the various factors of external environment affects the functioing of
the company and how will the company responds to the uncertainities of the
changes in the environment.

External Environment Analysis MyMunchkins

The basic components of MyMunchkins especially the munchkins are

grahams, condensed milk and water while in the drink are coffee bean,
sugar, condensed milk and hot water.

The external environment of MyMunchkins consists of two areas: Macro

and micro environment. The macro environment consists of external and
uncontrollable factors which influence the company’s decision making,
performance and its strategy. These factors are social, political, legal,
economical, technological factors. Under these factors comes the
demographics, corporate social responsibility and environmental forces.

Under micro environment the factors affecting the business operations are
market structure, market trends, competition, customers and suppliers
(Fahad, 2013). By studying macro, the company will be able to identify the
possible threats or opportunities for the company.

Business Plan (Entrepreneurship) 10

Pestle Analysis of MyMunchkins

The Pestle analysis is a marketing tool used by marketers, researchers or

businessmen to study the macro or external environment. The external
environment is consists of Political, Economical, Social, Technological,
Environment and Legal. With this Pestle, the business will be able to evaluate
each factor that will affect the business also which of the factors will affect
have an effect severly or low so that the entrepreneurs will be prepared with
any consequences, problems or challenges in the business that will occur.

PESTEL stands for “Political, Economic, Sociological, Technological,

Environmental and Legal” factors. A PESTEL analysis is a useful tool for
understanding the industry situation as a whole, and is often used in
conjunction with a SWOT analysis to assess the external environment of an
individual business.

Each category of factors in the analysis is of crucial importance and the

PESTEL analysis is definitely a must for any business or company, regardless of
its industry, which is why it is required in the business plan. The importance of
each category of factors will always vary from business to business and from
company to company.

The below descriptions should help you gain a better understanding of each
factor and of just how powerful and effective a PESTEL analysis can be for a
business:

POLITICAL ECONOMICAL

The Political environment of the The economic factors are the

Philippines have varied factors that economic determinants of a country
will affect the business such as the like, interest rate, fluctuation rates,
policies and interest of political currency exchange rate and
factors. economic growth of the nation. These
economical factors define the sales
and price of the products and
purchasing capacity of the
costumers.

SOCIAL TECHNOLOGICAL

Philippines are one of the happiest The Philippines is one of the country in
countries especially the youth who the world. Through the Philippines has
are always on the trend and as a the latest technologies like the other
youth, food is life. MyMunchkins is one countries, the downside part is the
the business they will look forward internet speed. The internet speed is
since it is sweet which is mostly that slow and not everyone can access to

Business Plan (Entrepreneurship) 11

taste that the youth wants. it because of the cost.

LEGAL ENVIRONMENT

The environment especially disaster or

The Philippines is experiencing a lot of calamities are not in control by
changes recently because of the humans so by this it will affect the flow
newly elected president. of the business since you have to
secure your business and be ready
with natural calamities that will occur.

DESCRIPTION:

1.Political Forces :
When it comes to MyMunchkins, it may affect the business negatively,
but the effect is not high but rather low since the business is only about
food which people will still buy but there are times if the Government
will announce a day that there will be a non-working holiday then the
business must take that day to be non-working. And also, the political
factors that may affect the business especially paying of tax if the tax
get too high, people won’t be able to buy as much as they can since
they have to budget the money they have and the tax they have to
pay.

2.Economic Forces
The purchasing power of a country depends upon its economic
growth, and this is best identified by the company MyMunchkin to
enter to a new market and market its product across the world. The
next economical tool affecting the external environment of
Mymunchkin is the interest rate on borrowed money.
MyMunchkin manages with fluctuation in interest rate by using a
derivative instrument. The major threat of the company from external
environment, at the time of inflation is with increasing the salaries, the
products cost also increase but that cannot imposed on products price
because of the market risk and competition.

3. Social Forces
The Social factors comprises of trends related to cultural,
environmental, demographic, seasonal and population. In the business
especially the youth will have a positive effect in the business since the
target customers mostly are the youth and since youth can influence
their friends and family that can also help the business cause they will
advertise or talk about foods that taste good for them.

Business Plan (Entrepreneurship) 12

 For Example, Meeting with your friends for relaxation and good food
especially sweets with our business that serves munchkins and drinks, it
won’t be a problem not to try but rather a new experience to have
with the unique features or the munchkins. Also, when you’re
depressed or stress, sweets are the best medicine to eat also in
studying. So, the Social Factors will have positive effect in the business.

4. Technological Forces

New products and services are possible because of new technologies.

These help to increase revenues and profits of companies. At different
times in history, technologies have created new businesses like
automobiles, railways, telephones, computers, etc. Currently we are
seeing new products and services being developed by emerging
technologies like internet, mobile connectivity, nanotechnology,
genetic engineering, etc. These technologies are likely to fuel growth in
the near future (Chand, 2016).

In today’s society, Social Media is the most common to the youth yet
the internet speed is not that fast and not everyone can afford to buy
especially in the rural areas that will have also have a hard time to
connect so it may affect the business but not that high. Also,
technologies or material that will be used in making the munchkins can
help having an effective business and a good product with a unique
feature also in packaging the product. With this it is more important not
to rely too much in the social media but be more hands-on.

5. Legal Forces

Every state has unique regulations that guide licensing requirements,

incorporation procedures and labor issues. The legal forces are critical
for successful operations in your industry of specialization. Observe and
track changes to state and federal regulations to avoid legal
problems. It is equally important to understand dispute resolution and
litigation procedures provided for by the federal and state laws, as this
may affect your operations (Cole-Ingait, 2013)

The various legal factors are the laws related to employment,

consumer, health and safety and discriminations. As for the business,
the newly elected President, by having the new President, it doesn’t
affect that much but more comfortable since the safety is high and
you will feel more at ease and secure with your business and the
imposed Martial Law by the President doesn’t have much affect the
business, but it shows to be more careful and follow the law, just be an
educated Filipino.

Business Plan (Entrepreneurship) 13

 6. Environmental Forces

Today the environment is perhaps the most important external

influence on any transport service. There is overwhelming evidence
that human activity is contributing to climate change. Government,
consumers and businesses all want to see better environmental
management (Business Case Studies, 2017)

Through the Human Activity, it results to disaster and calamities. With

this environment, it will have an effect to toe the business cause you to
make sure your business is secure with this disaster or calamities which
can’t be controlled once it occurs but can only be prevented by
helping our environment that’s why the business will minimize using non-
biodegradable and proper disposable of garbages.

COMPETITIVE FORCES MATRIX

Five Barriers to the Effect of the Effects of Threat to the Business

Competiting Force Barriers to the
Forces Force
HIGH Moderate Low

Potential New High Switching HIGH XXXXX

Entrants Cost

Bargaining There are LOW XXXXX

Powers of several
Buyers suppliers
available

Bargaining Switching Cost LOW XXXXX

Power of is very high
Suppliers

Threats of The Quality of LOW XXXXX

Substitute substitute
Products products
improves

Rivalry among Diversity of XXXXX

MEDIUM
COMPETITIVE
Existing Firms FORCES
Rivals MATRIX DESCRIPTION
Business Plan (Entrepreneurship) 14
Potential New Entrants
High Switching Cost, It has a high effect on their business and low at ours,
because them changing prices and specifically high might discourage their
customers, and has a chance that they might come in ours so it is high on the
and low at us.

Bargaining power of Buyers

There are several suppliers available in the market, it has a low effect on
them and High on our side, because older business means they might have a
lot of connections in terms of suppliers, so for example we lost one of our
suppliers, it does not affect their business losing one, but to us, it is huge
because we only know only few suppliers that supplies our ingredients in our
business.

Bargaining Power of Suppliers

Switching Cost is very High, it has a low impact on them and high on our
business, because as I said earlier, Old business means they have many
connections specially in terms of suppliers, so it does not matter to them if
one of their supplier’s prices increased, they could just go to the next one,
while in our condition we don’t have much choice but to look for other
supplier while we increase our price for short amount of time.

Threats of Substitute Products

The quality of substitute products Dramatically Improves, It has a Low effect
on them and a High impact on us, because if our quality in our products
increases, we pose as a threat to them that we might get the attention of
their customers, so it is a huge impact on us as a way to get more customers,
but even though, because they are Long Standing Businesses, they have
loyal customers so it has a low effect on them.

Rivalry Among Existing Firms

Diversity of Rivals, the existing businesses that already established a great
name in the industry will have a medium effect from MyMunchkins since
MyMunchkins also has strength that the existing firms don’t have but the loyal
customers they have that MyMunchkins will have a hard time getting their
attention.

Business Plan (Entrepreneurship) 15

 SWOT ANALYSIS

Strengths Weakness

 Affordable  Existing Competitors

 Business Partnership with Buducks.  Takes time to make the product.
 Have unique features  No Permanent Place
 Friendly and  No larger size of the product
Approachable  Manpower
employees
 Sweet Taste

Opportunity Threats

 Attract Youth  Customers that is health conscious

 It can be personalized  Too sweet for other customers
 Can be used in any event  Threats from big and existing companies
 Faster Transaction  Threats for the Potential new entrants
 Selling Online  Natural Calamities or Disasters

SWOT ANALYSIS DESCIPTION

MyMunchkins (Company Name) is a local business located in Davao City

which sells munckins and drinks.

Business Plan (Entrepreneurship) 16

Strengths:
• One of the strength of the company is the affordable price of the
product and worth it and from the Company name itself represents the
product.
• Business Partnership with Buducks play a big role because
MyMunchkins will be distributing products to the said company and it can
spread the news about the MyMunchkins and at the same time the loyalty
and selling the product directly to the BuducksCompany.
• MyMunchkins, in it’s product especially the Munchkins, it will be made
in a unique feature and can also be personalized.
• Friendly and approachable employees, with this customer won’t have
a hard time buying the product and making connection to customers to
create loyalty.
• MyMunchkins is all about sweet. The Sweetness is good to relieve stress
and can hyper your mind as well.

Weaknesses:
• MyMunckins is just a new business and the existing competitors can be
a weakness to the business since it will be little hard to get customers that
are much loyal to these competitor’s business.
• The Product is made through manual labor and it takes time to make it
but still worth it.
• No Permanent place to sell because it can be sell anywhere even
online, and some customers maybe will have a hard time connecting to
MyMunchkins.
• MyMunchkins is in a bite size shape and there no more larger size of it
that maybe a preference of some customers.
• The Manpower since the product is made manually so employees that
make the product is very important.

Opportunities:
• Attract youth because the business is mostly about sweets and it is in
the trend of youth to have unique kind of things especially MyMunchkins
product.
• It can be personalized, if some customers want different kind of design
they can ask to personalize theirs with MyMunchkins available materials
that they can use.
Business Plan (Entrepreneurship) 17
• It can be used in any event and even everywhere or anytime you want
to have the product.
• It can be easily bought, the customers can contact us through online
or coming to the place where the business is mostly sell the product.
• MyMunchkins also sell it on online that people can ask and avail of
they want to.

Threats:
• There are customers that are health conscious that may not be able to
eat our product or maybe they will complain, it will depend on the
situations.
• The Product may be too sweet to consume for other customers.
• The threats of big and existing companies having the same product as
MyMunchkins.
• Business is a never-ending competition that’s why there will be new
potential new entrants that may give a threat to MyMunchkins.
• Possible absence of an employee because there are only few
employees and one absence of someone will decrease the manpower of
the business.

Business Plan (Entrepreneurship) 18

 IV. ORGANIZATION AND MANAGEMENT PLAN

1. Form of Business

• The form of the business is a general partnership consisting of five

members. A general Corporation actually spans from five or more and it is the
most suitable form of the business not too much nor less for the entity of
MyMunchkins. The five owners will be liable of the business and they will also
be part of the organizational structure indicated after this paragraph.

• 2. Organizational Structure

General Manager

Financial Assistant
Officer Manager

Marketing
Officer

Employees
Designers

3.ROLES & RESPONSIBILITIES

• Indicated above is the hierchal arrangement of MyMunchkins.
The Organization is spearheaded by a General Manager who will be
the head of the company. He or She will oversee decision making in all
aspects. Alongside the General Manager is the Assistant Manager, it is
a high-ranking position alongside the General Manager.

Business Plan (Entrepreneurship) 19

 • The Financial Officer who is a senior manager responsible for the
analysis of data within an organization, such as a listed company or
andeducational institution and especially in-charge of the financial
plan of the company.

• The Marketing Officer is responsible for the commercial strategy

and the development of an organization. The Arrangement of different
types of officers for the betterment and success of the
business.Employees are in charge of the labor of the products and
designer in-charge of designing the product.

• 4. Business Experience and Qualifications of the Entrepreneur

The entrepreneurs had finished high school in different schools
and currently are now Grade 11 Senior High students of Philippine
Academy of Sakya Davao Inc. (PASDI) under Stem Strand. They are
equipped with the knowledge of the production and the twists and
turns of the product and are the ones who made the product’s
features and capabilities to entice the public.

• 5. Pre-Operating Activities
Prior to starting the business, advertisements will be utilized to
inform the public about the product. The use of posters and print
advertisements would definitely be of help for the product to be
exposed to the public and to inform them that My Munchkin is now
operating for business. But prior to these advertisements, documents
and other business-related endeavors must still be given attention.

• To cap things off, documents and permits to be submitted to its

respected departments will be made. Documents such as DTI, Business
Permit, and the like will be given attention to meet the requirements of
the business and to establish the legality of the business. This is to
prevent fraudulent actions to be made and to assure the public that
the business endeavor is indeed legal and not generating funds
illegally. After such activities have been established, next will be
promotion and marketing. To be able to make the people know more
about the product, exposure is a must. The creation of social media
accounts will be of help in making the business establish itself in the
industry. Posters, tarpaulins, and business cards will also be utilized to
create an image to respected citizens and suppliers. Furthermore,
when opportunities like trade shows and events are present, My
Munchkin will strive hard to be a part of these events to promote itself
further.

Business Plan (Entrepreneurship) 20

 • Costing of the materials to be used for the business will also be done.
From small materials like papers, pencils, ballpens, colored pens, to big
materials like computer units and printers, all materials will be
accounted with to ensure that costing is being catered for. The place
or headquarters of the company will also be given much attention so
that the space itself can cater to the basic needs of the company.

• 6. Pre-Operating Expenses
• With regards to business, MyMunchkins also incurs costs and expenses
in the long run and such costs are incurred in compliance with
government procedures and ethical business procedures. Such costs
are needed to provide an assurance that the business is definitely not
illegal and complies with ethical measures.
• Indicated below are the costs to be incurred before starting and
operating the business.

Pre-Operating Expenses

DESCRIPTION COST

DTI Registration

Barangay 200.00

City/Municipality 500.00

Regional 1,000.00

National 2,000.00

Business Permit 500.00

City Treasury 500.00

BIR 500.00

• MyMunchkin’s pre-operating expenses include DTI, Business Permit,

City Treasury, and BIR. These expenses are incurred to assure that the
business complies with the governmental procedures and is not in any
form considered an illegal type of business.

Business Plan (Entrepreneurship) 21

 Promotional Activities
DESCRIPTION COST REMARKS
Posters 20.00 per piece
Flyers 80.00 per hundred pieces
Tarpaulins 200.00 per piece
Business Cards 20.00 10 pieces per paper

• Also included in the pre-operating expenses are the promotional items

to be used to let the public be aware of the existence of the product.
Posters, flyers, and tarpaulins are to be utilized to provide exposure
and word of mouth. Furthermore, the company will also utilize the use
of business cards to provide contact numbers and be open to
partnerships in the same industry and enhance collaborating
endeavors in the future.

• 7. Baking Tools and Equipment

BAKING TOOLS AND EQUIPMENT

DESCRIPTION COST REMARKS
Stainless Steel Mixing P542 1(already available)
Bowl

Stainless Steel with P618 4 in 1 set(already available)

Silicon Handle
Measuring Spoons and
Cups

Wooden or metal spoon P481 Set of 3(already available)

Rubber spatula P650 9 1/2 in. Long; 1

White(already available)

Baking pans P3380 24-cup mini muffin pan; 2

pieces(already available)

Paper cup liners P587 Per pack(already available)

Refrigerator system P21,095 Samsung

RT20HAR1DSA(already
available)

Business Plan (Entrepreneurship) 22

Electric Mixer P1,990 SM Home; 1(already
available)

Autom P3,950 2(already available)

atic Drip Coffee Mixer

Internet Router P1250 1(already available)

•
• 8. Administrative Expenses

• Indicated below are the administrative expenses to be incurred by

MyMunchkins with regards to its operating cycle. The list below is a
summary of the expenses that are bound to be incurred once the
business starts and once everything is at place. It involves utilities,
human resource, transportation, and communications.

Administrative Expenses
Utilities Expense
DESCRIPTION COST REMARKS
Water 200.00 per month
Electricity 700.00 per month
Internet 1299.00 per month (included
with telephone plan)
•

Organizational: Salaries
DESCRIPTION COST REMARKS
General Manager 3500 per month
Assistant Manager 3500 per month
Financial Officer 3500 per month
Marketing Officer 3500 per month
Designers/Employees 3500 X 5 per month

Transportation
DESCRIPTION COST REMARKS
Jeepney 300.00 per month
Communications
DESCRIPTION COST REMARKS
Cellphone under Postpaid 699.00 per month

Business Plan (Entrepreneurship) 23

 • For utilities, included are the expenses for water, electricity, and
internet usage. It can be highlighted that amongst the expenses,
water is the least as the product itself does not require the need for
water. The scope of the use of water as resource is only for office use-
which is required for toilet use, washing of hands, and the like.

SECTION VI
PRODUCTION PLAN
1. Production Process

1. Make a survey to which kind of munchkin satisfies every age bracket without losing quality of the product.

2. Choose what's appealing to the customers. And what flavor (design if necessary) he/she likes.

3. The munchkin is presented and reviewed by the customer.

4. Advertise it on social media for the people to be aware.

5. But in order not to waste time, we can start selling munchins on our neighbors, friends and classmates.

7. Product is delivered to customer and feedback is asked if notebook is done correctly.

2. Fixed Capital

Business Plan (Entrepreneurship) 24

 MyMunckin is not like other products that needs heavy machiniries. It
only uses found at home Equipments.

Equipment and Machinery

DESCRIPTION COST REMARKS
3,000.00 2 units(already available)
Beater
1,500.00 1 set
Disposable gloves

Apron (already available)

Hairnet
(already available)

3. Life of Fixed Capital

The estimated life of fixed capital of the assets specified above are
indicated as follows. For the disposable gloves, it is thrown after use. The
beater apron and hairnet will last long more than a year depending on how
it was used, taken care of and well maintained.

5. Maintenance and Repairs

MyMunchkins utilizes equipments like cupcake papers, Beater, bowl,

spatula, containers, refrigerator and ingredients for the product must
be used carefully and must take care of using equipments and to
maintain cleanliness and good area of making the product.

6. Sources of equipments

Materials will be bought in grocery store like Gmall for the ingredients of
the product such as grahams, milk, sprinkles, marshmallow and more
then the labor will be done by the employees.

7. Planned Capacity

The materials that will be utilized along the process are the refrigerator
that can last for 4 years in a medium size refrigeratoer and the beater that will
also last for 5 years depending on the usage.

8. Future Capacity

Business Plan (Entrepreneurship) 25

 Future capacity of the equipment will be maximized further, and
equipments must be sturdy enough that can be utilized for a long time. It will
be used accordingly and if the need to replace is still not necessary, then the
said equipment would undergo maintenance checks to ensure that it can still
be used further like the refrigerator and the beater so using the equipment
must handle with care.

9. Terms and Conditions of Purchase of Equipment

The machinery for production (beater) will be paid right after the
purchase. The beater is not that costly compared to other equipment and
can be paid directly rather than a prolonging period. The refrigerator also will
be payed monthly depending onthe store.

8. Factory/production Location and Layout

Office
Area Packaging Area

Making of Product Area

MyMunchkins’s factory is also located at the same location as its office

for the owners to be able to look at the production in an easy manner. The
layout of the production and assembly area is spacious enough for the
designers to be able to carry out their responsibilities. There are tables for
making the product and table for packaging area and lastly the office
where the laptops or any communication devices for customers to
communicate MyMunchkins.

Business Plan (Entrepreneurship) 26

10. Raw Materials

The raw materials that would be used to create the munchkins are crushed
graham crackers, condensed milk, and powdered milk. The use of sprinkles,
marshmallow and other add-on ingredients may vary depending on the
flavor that the customer wants.

11. Cost of Raw Materials

The munchkins are well-made and has different designs or toppings. To

display a number of raw materials, the sample product below will be used as
a basis for the cost of raw materials.

Cost of Raw Materials

DESCRIPTION COST REMARKS
Crushed Grahams Crackers P 350 9 pack
Condensed Milk P 140 5 can
Sprinkles P 20 1 pack
Powdered Milk P 45 1 pack

marshmallows P 25 1 pack
Butter P 30 1 pack
TOTAL COST P960

The table highlights a summary for the sample product as seen below.
It is highlighted that the highest price is the crushed grahams which is the
main product. Munchkin ingredients are condensed milk cost 140 pesos,
Marshmallows as stuffing with a price of P25, munchkins will be rolled in
powdered milk to add tasted which cost P45 and Sprinkles for the toppings
which prices P20.

12. Raw Materials Availability

The availability of the raw materials for this product can be accessible
through malls located near our production area. The prices are based from
the mall and are currently priced as seen in the table above.

13. Labor

My Munchkins has employees for both direct and indirect. For direct,
The owners of My Munchkins will manage the business, which takes full control
of all operations happening inside and even outside the business
organization because the business entity is still not that big. The owners will
cater to the needs of the company and cater the expenses and costs

Business Plan (Entrepreneurship) 27

incurred by the company, including ensuring that there is efficiency in the
costing and payment of the things needed by the company. Also, to ensure
that many will know about the product and there will be an efficient
customer to buyer relationship between My Munchkins and its customers. The
business will only hire employees who will cater the production of the
products.

14. Cost of Labor

The Employees are the paying laborers of the company because the
owners already serve as General Managers that manages everything. Each
employee or the baker will have a salary of 3500 pesos monthly.

15. Labor Availability

With regards to labor availability there is still no certainty in the hiring of

numerous employees. However, the industry is rising, and many are also in the
need for jobs, thus, My Munchkins can utilize this idea in the long run. The
company can provide promotions that entice new people to apply as
bakers for My Munchkins so that it can gain applicants for manpower.
Throughout the year, it can be said that manpower is available because of
fresh graduates looking for job opportunities. However, if there is no ample
amount of manpower, the company may struggle as it needs people to be
assigned in its respective positions.

16. Labor Productivity

To boost up productivity of the employees of My Munchkin, there

would be 13th month pay, employee of the month and incentives. Employee
of the month would be awarded to the employee which has the best selling
designs and taste of munchkins, It would be measured through the
satisfaction and number of items sold to the customers with the design and
taste made by a certain employee and also if customers keep on coming
back to purchase the same style and taste made by the certain employee.
Incentives would be given to employees for having a good performance
and good performance would be measured through the sales of the
company and higher sales and profit of the company would equal to bigger
incentives. 13th month pay would be automatic for every 13th month.

Business Plan (Entrepreneurship) 28

17. Waste Management System

The company values proper waste disposal, and in the case of

MyMunchkin, wastes will be placed in proper bins that require it to be placed
on. For instance, MyMunchkin is a type of company that produce good food,
such as munchkins, and other sweet products. Therefore, we usually produce
plastics, cans and other food packages as waste. In this case, those wastes
will be placed in non-biodegradable trash bins. MyMunchkin values the
cleanliness of its surroundings that is why it is really important to have garbage
segregation.

18. Factory Overhead Expenses

MyMunchkin will also be utilizing materials that are implicit to the

product and these belong to the factory expenses to be incurred by the
company. Indicated below are the items that belong to factory overhead.

Factory Overhead Expenses

Measuring cups and spoons 100 set
Stainless steel mixing bowl 30 per piece
Rubber spatula 45 Per piece
Baking pans 20 per pack
Wooden spoon 30 Per piece
Paper Liners 35 Per pack
Plastic Wares 100 per piece

20. Production Cost

Basing it with the statement of Sales and Cost of Sales, the production
cost of producing one batch for making munchkins will be able to produce
250-250 pieces of munchkins depending on the designs and style that will be
using and with that it will 150 pieces will be selled for 5 pesos and 50 pieces
for 10 pesos. So in a day, you’ll get 1250 per day.

Business Plan (Entrepreneurship) 29

 VIII. MARKETING PLAN

1. Description of the product

MyMunchkins is a kind of business that sells munchkins and drinks that

introduces a unique features of the munchkins and can be personalized.
Possessing features and designs that are completely different from other
munchkins, the Munchkins are definitely a munchkin that does not only
maximize for eating, but also incorporates design, convenience, and utility. It
currently resides in the industry that deals with sweets that you can consume
everyday because also for being affordable. The idea of setting up a
business that deals with MyMunchkins was done by the group, but innovation
and creativity was on mind, thus, the product was born.

MyMunchkins is no ordinary munchkins as it introduces a product that is

innovative, as well as creative. The product is considered creative due to the
mere fact that its customers have their own free will to let the company know
what design they want to be incorporated in the munchkin and there are
designs that is in for the youth or customers. The product addresses to the
needs of consumers who would want to eat munchkins that has unique
features to enhance the productivity that the product can offer and
affordability of the munckins also the disciplined, friendly and approachable
employees that will serve the customers at any time. The legal structure of the
business can be considered a corporation, as the business has 5 owners who
handle the MyMunchkins, INC.

Business Plan (Entrepreneurship) 30

 2. Comparison of product to its competitors

ANALYSIS OF COMPETITORS
Competitor Price Strength Weakness Strategy

10 Simple, Limited Needs more

pieces sweet design creative options
for Php and choice and and affordability
100 iconic expensive
design

Dunkin Donuts

Box of Simple, Limited Create product

20 for medium design with more creative
Php 100 size and choices, choices,
sweet comes with affordability and
box, enhance the taste.
expensive
and too
simple.

Mister Donut

10 Simple Limited More creativity

pesos and tasty design and affordability
each

GonutsDonuts

Business Plan (Entrepreneurship) 31

 100 Tasty No Affordability and
pesos and munchkins munchkins
and sweet only donuts
above

JCO

Rangin Unique, People don’t Increase

g from classu, know yet awareness of the
5-15 more about the product through
pesos utility, business and social media sites
each affordabl not baked. or posters and
pieces. e, cute flyers.
features
and
customiz
able.

MyMunchkins

MyMunchkins has competitors but the company chooses to highlight

these three. Mainly Dunkin Donuts and Mister Donut. Dunkin Donut is one of
the popular brands that possess simple, good quality and an affordable price
in the Donut industry. They’re easily bought since they are accessible in good
locations and are commonly found in malls or main streets. They’re also
known for their simple, sweet and iconic design that can be easily noticed.
But with the strength of simple designs also comes their weakness for having
limited design. Dunkin Donut focuses on simple and good quality and less
focusing on the munchkins’ design.

The second brand we have highlighted is Mister Donut which is one of

the high-class munchkins known in the Donut industry. The brand is known for
their simple, medium size and sweet. Also, Popular in Malls, for it is only
located in some malls, in the street or main streets. Only a few can afford
Mister Donut for it is costly and it has only a few designs to choose from and
other companies in the table have also almost the same data in terms of
their strength and weaknesses.

Business Plan (Entrepreneurship) 32

 3.Location/Place

Office
Area Packaging area

Making of Product Area

The office of MyMunchkins can be located at Rivera Village, Bajada

Street, Davao City. The building has an office that can utilize the services that
MyMunchkins offers and the location is convenient, as it is located in the
downtown Davao area. The layout of the office is indicated above and as
observed, each manager and officer have their own respective tables.
Furthermore, dividers are provided for an efficient workplace.

a. Market Area

The main geographical areas that the company tackles are school
zones particularly Philippine Academy of Sakya, Assumption of Davao,
Ateneo de Davao High School, Rivera subdivision, University of Immaculate
Conception and few houses there. The reason for the selection of such
market areas is that our target markets are always located in these areas.

b. Main Customers

The main customers of MyMunchkins are private school students ages

11 to 18 years old. Such students belong to elementary, junior high school,
and Grade 11 and also adults near that area and teachers also. The
potential customers in the area, in terms of numbers are:

Business Plan (Entrepreneurship) 33

Junior High School (Grade 7 to Grade 10) - 14
Senior High School (Grade 11-12) - 81
Teachers - 5
Total Demand - 100

Sales

Yes No

Based on the survey conducted 90 out of 100 respondents said yes if

asked to buy the Munchkins product. Therefore, if the company proceeds to
sell to different elementary and high schools the resulting number of potential
consumers would be 90.

a. Market Share

The data is insufficient to be able to know the market share as the

competitors are not willing to give their income statements, but they are
some given prices they have in their business. To be able to calculate the
market share, information from competitors is required, but up to no avail as
they want to keep their financial statements confidential.MyMunchkinsstll do
so want to keep their financial statements from competitors.

b. Selling Price

The selling price of MyMunchkins would be set at 5-10 pesos for one
order of the product. The price was set in relation to the cost of the raw
materials as well as the equipment and labor cost which was involved in
producing the product. The price was decided upon the need of gaining a

Business Plan (Entrepreneurship) 34

certain amount of income to keep the business running. With the 960 pesos, it
can make 300-450 pieces.
Production Cost : (per day)

Cost of Materials 960.00

Cost of Labor 400.00

Overhead 40.00

Total Cost 1,400.00

Required/Suggested Sale Price P5.00 - 10.00 pesos each

c. Sales Forecast

The sales forecast was determined through multiplying the price of the
product per unit to the number of units that the entity must sell monthly. Thus,
given that the fixed price is 5-10 php and the target number of units to be
sold per day is 250 units for 5 pesos and 150 units for 10 pesos, the target sales
should be 3,050 pesos , on a daily basis.

Price per unit x Number of units per daily Target sales remarks

5php x 250 1250 daily

10php x 180 1800 daily

Business Plan (Entrepreneurship) 35

 d. Promotional Measures

MyMunchkins will be utlilizing paraphernalia such as posters, tarpaulins

and business cards to make people aware of the product’s existence. The
posters will indicate what the product really is all about and what makes it
unique and stand out from other products or notebooks. Business cards
indicating the name of the MyMunchkins e-mail address, telephone number,
and physical office address will also be included to be open for future
partnerships and other endeavors that may require it.

The use of social media will also be utilized as many are now into the
use of media accounts. MyMunchkins will be using Facebook, and email as
its main source of promotion, and also, such collaterals will be used for the
made to order munchkins in general.

e. Marketing Strategy

Continue with the promotional strategies, also create new and

improved styles and designs of notebooks produced. Give incentives and
activities for the employees to increase productivity and boost the
employees’ morale. Create promos and premiums in dates of peak pricing to
persuade and attract customer to buy customized notebooks that would
surely fit the taste of customers especially dates when school semester is
starting.

a. Philanthropic Movement

MyMunckins’s involvement for the betterment of the society and the

welfare of others spans in giving a small portion of its income to charitable
institutions that are seeking financial help. Also included in its philanthropic
involvement is giving back to its community by instilling a program that

Business Plan (Entrepreneurship) 36

focuses on the free giveaway of munchkins to children or youth. The program
focuses on public schools and some private school in rural and some in urban
areas areas because they are the ones who need and want it the most as
their location is far away from supply routes. Furthermore, the program also
includes a munchkin designing contest in which the winner will be awarded a
prize in connection to MyMunckins such as a one month supply with 500 units,
this program will be done every MyMunchkins anniversary.

We are also in need of labor, thus, MyMunchkins also extends its

philanthropic program by giving jobs to people with much potential. This can
become an opportunity to help, as well as maximize the creativity and effort
that employees and personnel currently possess.

b. Marketing Budget

Every month, the company would be using 5 tarpaulins which costs

1000 Pesos all in all, 15 posters which costs 750 pesos a month, 200 flyers
which is 160 Pesos and 200 business card which costs 1000 Pesos.

SECTION IX
FINANCIAL PLAN

1. Project Cost

To be able to start the project without incurring any losses and huge
costs, the amount of 100,500 is required to establish a successful start for the
project. This cost will help in all the costs and can avoid major setbacks that
may happen in the starting stages of the business endeavor.

Pre-Operating Expenses 5,200.00

Promotional activities 1000.00
Baking equipments and Tools 34,543.00
Administrative Expenses 1,899.00
Salaries 37,500.00
Transportation 300.00
Communications 699.00
Equipments and Machineries 4,500.00
Raw Materials 29,760.00
Factory Overhead Expenses 360.00
Total 146,000.00

Business Plan (Entrepreneurship) 37

2. Financial Plan and Loan Requirement

The planned finances for the business are as follows: 146,000 pesos will
be loaned from the parents of the entrepreneurs. The entrepreneurs are still in
the academe and still cannot fund themselves in starting the business up.
However, with the help of the guardians of the entrepreneurs, finances can
be met and will be paid in due time.

3. Security for Loan

The loan that the entrepreneurs have received from their parents
should serve as collateral.

4. Profit and Loss Statement (Income Statement)

Sales P 94,550.00

Less: Cost of Sales -29,760.00

Gross Profit P 64,790.00

Less: Operating Expenses:

Legal Fees (-620.00)

Salaries & Wages (-17,500.00)

Baking Supplies (-500.00)

Rent Expense (-1500.00)

Transportation Expense (-300.00)

Promotional Expense (-1000.00)

Utilities:

Electricity Bill (-700.00)

Water Bill (-200.00)

Internet Bill (-1299.00)

Depreciation Expense (-6,500.00)

Business Plan (Entrepreneurship) 38

 Total: 34,571.00

Operating Income 30,219.00

Less: Loan Expense (-12,166.67)

Taxable Income P 34,571.00

Less: Income Tax (30%) (-10,371.3)

Net Income P 12,033.03

CURRICULUM VITAE

Name:

Address:

E-mail Address:

Phone Number:

Birthdate:

Family Background:

Educational Background:

Academic Affiliations:

Business Plan (Entrepreneurship) 39

Business Plan (Entrepreneurship) 40