CHAPTER I

BUSINESS CONCEPT

INTRODUCTION

Candles, although no longer a man’s major source of light, they continue to grow in popularity
and use. They symbolize celebration, mark romance, soothe the senses, define ceremony, and
accent home decors – casting a warm and lovely glow for all to enjoy.

Candles are a tradition in many cultures, a mainstay in many homes, and even a luxury to treat
yourself and others with, but what are the real benefits to burning them? Especially at a time like
now, when many of us have been quarantined for over a month, can candles truly affect how we
feel about our space?

“It is scientifically proven that scented candles can play an essential role in the physiological
effects of mood, stress, working capacity, and overall mental health,” Chryssa Chalkia, an
accredited clinical integrative psychotherapist and cognitive behavioral therapist, said. That
scented candles have effect on reducing anxiety.

“The soothing effect that candles have is based on how the brain processes smells. The smell of
scented candles stimulates our limbic system, the part of the brain that is home to our memory
and emotions. Hormones like serotonin and dopamine can be produced to help regulate mood.
Therefore, our emotional state is influenced by the relationship that exists between scents,
memories, and emotions.”

In short, certain scents can be attractive to you because of the memories you have in association
with them. But some scents trigger the same hormones over and over again in many different
people, making them widely popular in calming home scents. These aromas, like geranium,
lavender, and peppermint, have “proven to be useful for the treatment of various psychological
and physiological disorders.”

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OVERVIEW OF THE BUSINESS CONCEPT

Begin to sell scented or aroma candles that will definitely provide well-being to the body, mind,
and spirit. Give benefits like, improving someone’s mood, increasing focus, remembering
positive memories, providing a more restful sleep, alleviating stress and will likely make homes
smell nice and feel cozy. A business that will not just offer all-natural scented candle to existing
customers but also intrigue potential ones.

BUSINESS NAME

This candle making business will be registered under the name SPARKS Candle Co. which
symbolizes light in the deepest darkest hour. And the tagline will be “Let There Be Light”, is a
biblical phrase found in the book of Genesis 1:3. This also reminds us how God created light
according to The Bible.

BUSINESS OFFERINGS

We will be dealing in scented candles, which come in jars and in all sizes. These candles are
made of soy wax with organic herbs and flowers. Ingredients that will be used will be all natural.
Here we have considered the kinds of materials and types of aromatic candles and why it is
important to consider them.

Aroma. Scents have the power to tap into the essence of human memory. We are not just having
the typical plain scents like jasmine, lavender, vanilla, citronella, and the like, but we are also
coming up with new aromatic combinations like coconut + lime, jasmine + sandalwood,

2
peppermint + lavender + green tea and more. Different scents that can give different effects
whether it is for improving mood, relaxation, memory, healing, studying, focusing, etc.

Glass jars. We are also making sure the glass is heat-resistant, does not crack and hold wax well.

Wicks. We are using one of the healthiest wicks which is made from braided cotton or paper
with cellulose core and wood wicks. The purpose of a core in a wick is to prevent the wick from
falling over and extinguishing itself.

Finally, we are making sure these natural, clean-burning scented candles will not pollute the air
in your home. We want our future customers to appreciate what scented candles can give as their
effectiveness has been proven to soothe us, their light makes them a perfect aid for any
relaxation routine. The flame of a candle helps to sooth our soul; reducing stress and increasing
self-awareness. While all candles offer a sense of calm, scented candle that complements your
mood can make a world difference.

UNIQUE QUALITY

Burning of scented candles in indoor environment can release a large number of toxic chemicals.
Our product will be all-natural aromatherapy soy wax candles with organic herbs and flowers.
As we know, soy wax is biodegradable and cleans up with plain old soap and water. Soy wax has
a lower melting point than paraffin wax and because of this, soy candles will burn slower or
longer. Compared with paraffin wax, duration is up to 50% longer. Soy wax creates Petro soot
free candles. Finally, by being organic we are also helping mother nature in reducing pollution.

BUSINESS STRUCTURE

The form of business organization Sparks chose was General Partnership. It is a business
arrangement by which two or more individuals agree to share in all assets, profits, and financial
and legal liabilities of a jointly-owned business.

A general partner has responsibility for the actions of the business, can legally bind the business
and is personally liable for all the business’s debts and obligations.

A business will be quite simple, certainly the simplest way for two or more people to run
business together. There will also be minimal paperwork once Partnership agreement set up,
business benefits from the expertise and efforts of more than one owner, partners can provide

3
specialist skills and greater potential to raise finance. This way, it will operate more effectively
and efficiently since two or more persons are present for sharing ideas and strategies to achieve
company’s goals and objectives.

LOCATION

The business will be operated from and have the primary office in one of the owner’s house
which is situated in San Rafael, Tarlac City. Due to pandemic it is safer and more convenient to
work from the comfort of your home. It’s an easy access from the main road to avoid traffic jam,
parking space, and especially, to practice social distancing. Same is true for the future customers.

Figure 1. San Rafael, Tarlac City

BUSINESS FEASIBILITY STUDY OBJECTIVES

This study aims to understand thoroughly all aspects of this project or concept of candle making.
It is meant to identify problems, opportunities, determining objectives, describing situations,
defining successful outcomes and assessing the range of costs and benefits associated with

4
several alternatives for solving a problem. This is especially essential in justifying the investment
of money.

Even though candles are there for hundreds of years, they're still relevant up to now meaning
there's still rising demand from both households still as businesses

Despite candles being around for varying centuries, they still play an important role in today’s
society. Except for illumination, the time of scented candles and fragrances have ushered in a
very new perspective and also the promote it constantly searching for unique and creatively
made candles to be used in homes, businesses and special occasions. During this candle making
business plan, Sparks Candle Co has done an in-depth market research and identified untapped
opportunities to harness and grow business revenue by providing the viability of this study.

5
 CHAPTER II

SITUATION ANALYSIS

RELATED STUDIES

This chapter provides information and studies related and relevant to the current study.

RELATED STUDIES

Foreign Study

Candles are made from solid combustible waxes of fatty substance formed around a wick.

Beeswax candles were utilized in Egypt and Crete as early as 3000 B.C. Much later, candles

were made by pouring molten wax or tallow into molds, containing wicks. Next came the

paraffin, which is crystallized from petroleum. Today, commercially available candles are

approximately made from 65 percent paraffin and 35

Percent octadecanoic acid.

Waxes compromise a broad group of opaque, water repellent, essentially solid materials having

varied chemical composition and lots of diverse applications. Its name applied originally to

present esters of fatty acids and monohydric alcohols but not refers to both natural and

manufactured products resembling these esters. They soften gradually on heating, going through

a soft, malleable state before ultimately forming a liquid.

Oils are greasy, generally combustible liquid of vegetables, animals or mineral origin which is

insoluble in alcohol and always in Ether. Oils are used as food, for lubricating, illuminating and

as fuel. It’s also utilized in the manufacture of soap, candles, cosmetics, perfumery, etc.

Vegetable oils are increasingly used as a substitute for fossil fuels. Vegetable oils are the idea of

biodiesel, which may be used like conventional diesel. Some oil blends are utilized in

6
unmodified vehicles, but straight oil needs specially prepared vehicles which have a way of

heating the oil to scale back its viscosity and physical phenomenon. Another alternative is oil

refining. The oil features a presence of viscosity, which suggests it's thicker in surface than the

opposite liquid.

Local Study

BAYAMBANG, Pangasinan -- Denmark’s Candle, a small, micro and medium enterprise

(MSME) during this town that's expanding its market within Pangasinan and Metro Manila with

its unique decorative and organic scented candles, is really being managed by a millennial.

In an interview Saturday, 29-year-old Raymond Rusell said it had been in 2017 when he decided

to explore the business of candle-making, which won’t to be the bread and butter of his family.

Rusell was a graduate of Hotel and Restaurant Management course, and worked as a bartender,

among his other list of employment.

“I felt that I don’t want to be an employee, I wanted to travel into business and that I had the

interest in continuing my father’s candle-making business since I used to be the sole one of us

six siblings who wanted it,” he added.

His father, Romer, 59, a worker from a well-known candle factory in Metro Manila. He even

became a sub-contractor, wherein the factory gave him raw materials and he need to produce the

candles back here in his hometown.

However, the factory stopped giving them raw materials as many other sub-contractors, who

were also ready to produce an equivalent product as theirs, emerged that made the competition

stiffer.

7
“My father continued the business on his own, but it didn't have best since candle-making may

be a seasonal business and there have been already many other candle manufacturers unlike

before,” he said.

INDUSTRY REVIEW

Foreign Study

The global candle market size was valued at USD 3.45 billion in 2018. High consumption of

candles as an aesthetic-appealing product among female millennials for household application is

anticipated to drive the expansion. Beauty retailers, independent brands, and fashion houses are

arising with innovative products to constantly capture new customer base and to retain the older

ones. Over the past few years, the commercial utility of candles has been witnessing an increase,

with the bulk of spa and massage centers using scented candles for a soothing effect. Similarly,

restaurants and fine dines are increasingly using the merchandise to make a gorgeous and

aromatic ambiance for the purchasers.

Demand for organic candles made from natural wax is on the increase over the past few years.

The demand is positively influenced by the preference for candles that don't end in carbon

blackening. Alongside this, rising awareness among millennials regarding the consequences of

burning candles on the environment is encouraging them to strive toward reducing the carbon

footprint. Synthetic candles made from contaminated oil, lead wicks, and artificial fragrance

cause indoor air polluting which consequentially results in respiratory and other health issues.

The U.S. Environmental Protection Agency (EPA) found that the excessive use of Volatile

8
Organic Compounds (VOCs) in candles can cause headaches, skin irritation, fatigue, nausea,

runny nose, dizziness, irritated mood, and even cancer and organ damage.

Lighting candles have an excellent significance in celebrations, religious ceremonies, get-

togethers, and festivals. It not only creates great ambiance outside but also provides a soothing

effect on the mind.

Increasing use of candles are often seen in commercial places. Spa and massage centers have

rapidly increased the utilization of those products. Candle massage may be a popular therapy,

which is gaining traction. These products relieve back pain, osteoarthritis, headache, and anxiety.

Scented Candle Market - Overview

A scented candle is a candle with a natural or synthetic scented material blended into it. Scented

candles are known to generate psychological effects from the ambient aroma of fragrances.

Materials used for aroma in scented candles are generally categorized into two groups: plant

extracts/essential oils or fragrant chemicals. Evaporation of the fragrance from the pool of heated

wax candle generates the aroma from a lighted scented candle. Essential oils are extracted from

shrubs, trees, and flowers from all over the world. Each essential oil has its own unique chemical

makeup. Fragrant chemicals are usually derived from animal sources and petroleum.

Scented Candle Market - Drivers and Restraints

Factors such as increasing consumption of eco-friendly candles and usage of candles for home

decoration are expected to drive the scented candle market globally. Organic candles are an

alternative to paraffin wax candles. These candles are toxin free and only have natural and

organic materials. Another name for organic candles is green candles. Bee wax and soy wax are

the two organic materials used to make candles. Bee wax is 100% natural and does not release

any toxic gas when lighted. Soy wax is also an organic material used for making candles. Usage

9
of organic candles is expected to increase due to increasing consumer awareness about these

products. Manufacturers are also designing specialized scented candles for home furnishing to

enhance the look of the house. Fruit shaped candles for the living room and dining area are

available in the market. Such innovation by manufacturers is anticipated to increase the

consumption of candles.

Scented Candle Market - Segmentation

The global scented candle market can be segmented based on the raw materials, product type,

fragrance, distribution channel, and region. Based on raw material, the scented candle market can

be classified into wax, liquid dyes, soy, glass, and others. Based on product type, the market can

be classified into jar, pillar, tea light, tumbler, vase, and others. In terms of fragrance, the scented

candle market has been segmented into fruit, flower, spice, blends, and others. Based on

distribution channel, the scented candle market can be segmented into online and offline

distribution channel. The offline channel of distribution can be further classified into

hypermarkets/supermarkets, departmental stores, and specialty stores. Online retail stores create

events to increase sales through themed promotions, such as during Christmas, birthdays etc.

which is supporting the sale of scented candles through online retail stores. The seamless

shopping experience with the dominance of private label brands and rising internet penetration is

encouraging consumers to buy scented candles online.

Based on region, the global scented candle market can be categorized into North America,

Europe, Asia Pacific, Middle East & Africa, and South America. Scented candles sale is

expected to be dominant in North America and Europe, due to availability of raw materials

especially in countries such as Poland, Germany, and the Netherlands. Further, the growth of the

global scented candle market is expected to be the fastest in the Asia Pacific region. This growth

10
is supported by countries such as Australia, Japan, China, and India. In Europe, Germany and the

Netherlands are the main importers of candles. Poland, Germany, and the Netherlands are

Europe’s main candle producers.

Scented Candle Market - Key Players

Some of the key players offering scented candles in the global market includes Reckitt Benckiser

(Air Wick) (U.K.), CoScentrix, P&G (U.S.), Yankee Candles (U.S.), Colonial Candle (U.S.), Lee

Naturals, The Conscious Candle (Australia), Welburn Candles Pvt. Ltd. (India), Parcan

(Netherlands), Bolsius International BV, and others. There are a number of candle manufacturers

in Northern Europe. Key manufacturers include Diana, Balsius International, Yankee Candles,

and Vollmar Gmbh.

According to a recent report published by Fast.MR, titled, Vietnam & Philippines Candle Market

2018: Market Size, Market Volume, Trends, Opportunity, forecast 2018-2024, Vietnam candle

market is expected to reach USD 55.3 Million by the end of 2024 from USD 48.2 Million in

2018 and is predicted to thrive at a CAGR of 2.4% over the forecast period. In terms of value,

Philippines candle market is expected to mark a valuation of USD 35.4 Million by 2024 by

growing at a CAGR of 1.9% throughout the forecast period i.e., 2019-2024.

Vietnam & Philippines candle market is segmented by candle type, raw material, price range,

and distribution channel. Based on candle type, the market is segmented into Pilar candle, taper

candle, votives, tea lights, floaters, and others. The market is segmented on the basis of price

range into low price, mid-price, and high price.

Also, in the raw material segment, Vietnam & Philippines candle market is sub-segmented into

paraffin wax, soy wax, gel wax, beeswax, palm wax, and others. Moreover, based on the

11
distribution channel, Vietnam & Philippines candle market is further sub-segmented into online

stores and offline stores.

Rising Consumption of Candles for Home Décor

In the modern era of electric lights, candles have almost lost their function as a source of light.

However, candles have re-emerged as popular home décor and are being increasingly used in the

home as for therapeutic and relaxing effects. Further, the launch of multiple fragrances of the

candle is helping candles to vie more space in home décor and air-freshening store shelves. The

demand for scented candles has showcased and upward in recent years on account of the

growing willingness of consumers to increases the hominess of the room.

Design Innovation & New Product Launch

Candle manufacturers in Vietnam are continuously focusing on improving their products in

terms of design and innovation. These Vietnamese manufacturers mainly generate their revenues

through international markets, and in order to attract international buyers, these manufacturers

develop hundreds of new items each season and introduce new and innovative products. Design

innovation is also a key factor which has been encouraging the candle demand in the domestic

market as these high-class candles are commonly used for religious purposes, decorative

purposes, and consumer use in Vietnam. The manufacturers are also launching new high-quality

products for both international as well as domestic consumers. For instance, Home décor and

interior furniture trading company Peony Home launched the first Vietnamese-made home

fragrance candle.

Competitive Landscape

The report profiles various major market players of Vietnam candle market, which include,

Creative Lights Viet Nam Corporation, Universal Candle Vietnam Corporation, Fleming

12
International Vietnam Ltd., Yankee Candle, Caro Candles Company Limited, Peony Home,

Nguyen Quang Minh Candle, Vietnam International Victory Co. Ltd. and other major & niche

players.

Also, the report profiles various major market players of Philippines candle market, which

include, Vayao Wax Manufacturing Inc., Doc's Candles, Alice Blue Candle, FAVORI, The

Candleroom, Bath & Body Works Direct, Inc., Happy Island Candle Co., Yankee Candle

Philippines and other major & key players.

Competitive landscape analysis provides detailed strategic analysis of the company’s business

and performance such as financial information, revenue breakup by segment and by geography,

SWOT Analysis, key facts, company overview, business strategy, key product offerings,

marketing and distribution strategies, new product development, recent news (acquisition,

expansion, technology development, research & development and other market activities).

Local Study

Aroma Candle making is a relatively new but interesting business because of the growing

demand for aromatic candles. It is advisable to engage in this business amid the promising

prospects of this industry in the local and export markets.

Candles call to mind the ancient or traditional source of household lighting that, in current times,

no longer hold water. Older candles were made of tubes that were filled with oil or animal fat

wherein wicks that were made of cloth provided the material for lighting candle with fire.

Candles were mainstays in altars, during regular church rites and also during fiestas, when

masses were held to celebrate the occasion. There was a great demand for candles then, because

electricity was often scarce.

13
Another example candle type aside from those made of oil or animal fat were candles derived

from beeswax. These were found in bees, located in the four pairs of stomach glands of the

honeybee. Beeswax is lemon-colored and smell like honey mixed with a distinctive aroma. It is

difficult to manufacture artificial beeswax so it continues to command high price in the market.

In fact, just to be able to supply the needs of the churches for these candles, houses of worship

accept these as the tithe or donations.

In the course of time, candles become in demand for varied purposes aside from its traditional

usage as a source of light. Candles became available in varied shapes and sizes, including the

now popular and scintillating aroma candles. Slowly, candle making has become a thriving

industry and one can observe the mushrooming of candle shops selling ready-to-make candles,

molds, wax, wick, essential oils and other requirements of the enterprise.

Industry Situational

It was in 1997 when the demand for aroma candles in the Philippines increased. Normally, there

is a low demand for this product during the months of January and February. It picks up soon

during the month of March, when candles exhibit flourish. Export orders begin to increase during

the months of April and May. But the peak season falls during the celebration of two Christian

events – All Saints Day also known as “Todos Los Santos” and the Christmas season.

Some leading importers of candles from the Philippines are the United States, Europe, Korea,

Japan and Taiwan. While our production level of candles equals that of China, we remain the

leading supplier of decorative and aroma candles worldwide.

In the local market, decorative candles sell like hot cakes because it is cheap. But in terms of

business potentials, aroma candles provide bigger profits. A single candle can rake in as much as

14
a thousand pesos, or even sold at higher prices. Second in profitability is the manufacture and

sale of decorative candles while ordinary ones like vigil candles command the lowest prices.

Luxury Wax Candles Market Global Research Report 2020 is a comprehensive business study

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The Global Luxury Wax Candles market 2020 research provides a basic overview of the industry

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15
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the production, apparent consumption, export and import of Luxury Wax Candles in North

America, Europe, China, Japan, Southeast Asia and India.

KEY DRIVERS AND KEY BARRIERS

Drivers Barriers
Candle making is one of the best small Simply making great candles and then just
businesses you can start. It has low startup trying to sell them online is probably going to
costs. fail.
It doesn’t require much equipment.
Not easy to dispose by reason of customer
being more practical.
The process isn't labor intensive and can be Harder to earn a decent profit margin as it
done right from home. takes time to reach high level of sales which
may result in a failure business as owner
might lose interest in it
Many are leaning towards natural, limited There will be high competition
ingredient products like soy and beeswax. 

16
TARGET MARKET

The proponents choose to market scented candles to almost all ages from young teen to adult
especially women. Women buy more candles for themselves as well as for gifts for others.

Competition (Comparison of competitor)

Most candles today are made of paraffin wax which creates highly toxic benzene and toluene

when burned (both are known carcinogens). In fact, the toxins released from paraffin candles are
the same as those found in diesel fuel fumes and are linked to asthma and lung cancer. Our
product will be all-natural aromatherapy soy wax candles with organic herbs and flowers. As we
know, soy wax is biodegradable and cleans up with plain old soap and water. Soy wax has a
lower melting point than paraffin wax and because of this, soy candles will burn slower or
longer. Compared with paraffin wax, duration is up to 50% longer. Soy wax creates Petro soot
free candles. It is made by removing the waxy substance from crude oil, a non-renewable
resource. This is how the proposed business is better than others offering similar product.

Table 1

SWOT Analysis of the business

Strengths Weaknesses Opportunities Threats

Product Made with all-natural It takes a while Lack of Supply and demand
ingredients to dispose competitors due
product because to uniqueness of Lack of supply due
of curing period. the product to increased demand
Price Price is affordable People are more Other candle
without "money companies price their
compromising the conscious" than candles lower to
quality ever before, and attract more
are learning to consumers
buy only what
they need, and
may stop buying
candles if they

17
 don't have the
money.
Place Business can be done No Physical Can be sold Customers prefer
right from home as it Store online buying from an
doesn’t require much actual store
equipment. Expand online
stores
Promotion Make brand go viral Technical Compete with Lack of popularity
through online viewing large businesses
advertisement problems

Potential to reach
large market
Give customers
great deals

People Experienced owner May end up Product can be People are watching
giving up if enjoyed by what they spend their
desired profits everyone of all money on, not buy
have not ages candles.
achieved within a
short period.

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 CHAPTER III

BUSINESS VIABILITY

MARKETING ASPECT

The Marketing Aspect is important to all feasibility studies. It makes a big impact on the study
because it serves as the basis for the proponents to have a clear picture whether to pursue the
business or not. It will determine the factors to be considered in establishing and coming up with
the business as well as the financial basis through the projected demand. This chapter seeks to
determine the opportunities and threats, the target market, the total demand and supply of the
product, the competition and the marketing program which refers to the product, price, place and
promotional strategies.

Description of the project

The proponents will begin to sell scented or aroma candles that will definitely provide well-being
to the body, mind, and spirit. Give benefits like, improving someone’s mood, increasing focus,
remembering positive memories, providing a more restful sleep, alleviating stress and will likely
make homes smell nice and feel cozy.

Location

The business will be operated from and have the primary office in one of the owner’s house
which is situated in San Rafael, Tarlac City. Due to pandemic it is safer and more convenient to

19
work from the comfort of your home. It’s an easy access from the main road to avoid traffic jam,
parking space, and especially, to practice social distancing. Same is true for the future customers.

Market area

The market area will cover all possible customers in the country as products will be available in
proponents’ online store. As the coronavirus outbreak continues to limit the amount of “brick
and mortar” shopping around the world can do, more and more customers are turning to online
shopping as a solution to get the items they need and want. The proponents have considered it is
the best time to do the business online to also encourage future customers to stay at home.

Demand Analysis

Supply and demand are one of the most fundamental principles of microeconomics, a branch of
economics that studies how single-factor and individual decisions are made.

It is important to understand the roles of the two players, consumers and producers as well as the
analysis of demand theory to come up with a good business decision. It also helps proponents to
design the appropriate pricing policy.

The demand for the Sparks Candle Co. is computed based on the residents of the different

barangays around Tarlac City and Barangays near San Rafael, Tarlac City.

Slovin’s Formula:

The proponents used the Slovin’s Formula to determine the needed number of the respondents.

It is computed as n=N(1+Ne²)

Whereas:

n – number of samples

N – total population

e - number of errors

20
 N
n= 2
(1+ N∗e )

32,622
n = 1+¿ ¿

32,622
n = 1+[32,622∗0.0025]

32,622
n = (1+81.56)

32,622
n = (82.56)

n = 395.13 = 395 samplings

Barangay Population Percentage (%) No of Resp

San Rafael 14,341 43.96% 173.6
San Sebastian 3,654 11.20% 44.2
Maligaya 3,616 11.00% 43.8
Binauganan 4,498 13.79 54.5
San Roque 6,514 19.97 78.9
Total 15,989 100% 395

Barangay Population Percentage (%) No of Resp

San Rafael 14,341 43.96% 173.6
San Sebastian 3,654 11.20% 44.2
Maligaya 3,616 11.08% 43.8
Binauganan 4,498 13.79% 54.5
San Roque 6,514 19.97% 78.9
Total 32,623 100.00% 395

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 Table _ shows the number of respondents in each barangay. The proponents have

gathered data about the number of population in each barangay. The actual data is in the year

2015. The breakdown of the respondents is shown with the used of the Slovin’s formula at 0.05

margin of error.

The proponents conducted a survey among 395 respondents from Barangay San Rafael,

San Sebastian, Maligaya, San Roque, and Binauganan. The survey will serve as a guide of the

proponent to know the preferences and opinions of the respondents.

Barangay Number of households

San Rafael 6,849

San Sebastian 1,827

Maligaya 1,807

Binauganan 2,249

San Roque 3,257

Table 2. Number of Households

Survey Result
The proponent’s survey questionnaire contains of 8 questions. The proponent distributed

395 survey questionnaires. The survey results are tallied and examined to be more

understandable. The result is summarized, interpreted and analyzed.

Gender of the Respondents

N=395
Answers Frequency (f) Percentage (%)
Male 64 16%
Female 331 84%

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 Total 395 100%
Table 3

Table shows that the majority of the respondents are female.

Frequency Distribution of the Respondents if they are buying candles

N=395
Answers Frequency (f) Percentage (%)
Yes 340 86%
No 55 14%
Total 395 100%
Table 4

Table shows the percentage of respondents if they are buying candles, 86% of the respondents
answered yes.

Frequency Distribution of the Respondents

on what kind of candles, they are buying
N=390
Answers Frequency (f) Percentage (%)
Scented 245 62%
Unscented 150 38%
Total 395 100%
Table 5

Table shows the percentage of respondents on what kind of candles they are buying, 62% of the
respondents answered Scented while the remaining 38% answered unscented.

Frequency Distribution of the Respondents as to their likeness to

Environment-friendly kind of candles
N=395
Answers Frequency (f) Percentage (%)
Yes 281 71%
No 47 12%
Maybe 67 17%
Total 395 100%
Table 6
Table shows the percentage of respondents who likes environment-friendly candles, 71% of the
respondents answered yes.

23
 Frequency Distribution of the Respondents
on what influences them to buy candles
N=395
Answers Frequency (f) Percentage (%)
Scent 195 49%
Packaging 71 18%
Price 43 11%
Wax Quality 51 13%
Brand 35 9
Total 395 100%
Table 7

Table shows the percentage of respondents on what influences them to buy candles, majority of
the respondents answered scent is what influences them to buy candles.

Frequency Distribution of the Respondents

on how often they buy scented candles
N=395
Answers Frequency (f) Percentage (%)
1-2 times a week 140 48%
Once a month 126 32%
Every 3 months 51 13%
Rarely 28 7%
Never 0 0%
Total 395 100%
Table 8

Table shows the percentage of respondents on how often they buy scented candles. Majority of
the respondents answered 1-2 times a week.

Frequency Distribution of the Respondents

on what kind of candle container, they prefer
N=395
Answers Frequency (f) Percentage (%)
Glass jar 174 44%
Tin can 166 42%
Others 55 14%
Total 390 100%
Table 9

24
Table shows the percentage of respondents on what kind of container they prefer. 44% of the
respondents answered glass jar, while 42% chose tin can, and the remaining percentage
answered others.

Frequency Distribution of the Respondents

on how much would they pay for a homemade soy scented candle
N=395
Answers Frequency (f) Percentage (%)
100 ml – 165php 190 48%
150 ml – 195php 138 35%
200 ml – 265php 39 10%
250 ml – 295php 28 7%
Total 395 100%
Table 10

Table shows the percentage of respondents’ answers on how much they would pay for a
homemade soy scented candle.

Frequency Distribution of the Respondents as to

their willingness to try our products
N=395
Answers Frequency (f) Percentage (%)
Yes 292 74%
No 63 16%
Maybe 40 10%
Total 395 100%
Table 11
The table above indicates the percentage of the answers of the respondents, table shows above
that 74% of the respondents are willing to try our products, 16% answered no while the
remaining 10% answered maybe.

Main Customers

The proponents choose to market scented candles to those who are looking for all-natural scented
candles that will give soothing effect that can stimulate one’s limbic system which is part of the
brain that is the home to our memory and emotions. And women, as study shows, are more likely
to buy scented candles for themselves as well as for gifts for others.

25
 Barangay Number of Population Annual Population Growth Rate

(2010 – 2015)

San Rafael 14,341 -0.40%

San Sebastian 3,654 -0.72%

Maligaya 3,616 -0.06%

Binauganan 4,498 1.50%

San Roque 6,514 -1.07%

Table 12. Population of Target Barangay

 Total Demand

Historical Demand

Year Total Population Historical Demand Computations

2019 32,378 17,011 32,378 x 71% x 74% = 17,011

2018 32,135 16,883 32,135 x 71% x 74% = 16,883

2017 31,894 16,757 31,894 x 71% x 74% = 16,757

2016 31,655 16,631 31,655 x 71% x 74% = 16,631

2015 31,418 16,507 31,418 x 71% x 74% = 16,507

The table above presents the historical demand for the proposed business from the year 2015-
2019. The 71% represents the percentage of the respondents as to their likeness to environment-
friendly kind of candles as shown in table 6 and 74% for those who are willing to try our
products as shown in table 11.

26
Arithmetic Straight Line Method

Figure 1
Historical Demand Graph
32,600

32,400

32,200

32,000

31,800

31,600

31,400

31,200

31,000

30,800
2015 2016 2017 2018 2019

Formula: Average Annual Increase = 2019 demand – 2015 demand

From 2015 to 2019 number of years -1

= 32,378 - 31,418
5-1

= 960
4

Percentage Average Increase in Demand = 240

Figure 1 shows the graph of the Historical Demand using the Arithmetic Straight Line Method. It
is used to determine the projected demand as it is indicated by the Straight Line with 240
increases in demand.

Projected Demand

Year Projected Demand Computations

27
 (People)
2020 32,618 32,378 + 240 = 32,618

2021 32,858 32,618 + 240 = 32,858

2022 33,098 32,858 + 240 = 33,098

2023 33,338 33,098 + 240 = 33,338

2024 33,578 33,338 + 240 = 33,578

The table indicates the projected demand for the year 2020 – 2024. The total projected
demand for the upcoming year, 2020 up to 2019 are as follows: 32,618 in 2020; 32,858 in
2021; 33,098 in 2022; 33,338 in 2023; and 33,578 in 2024.

Historical Supply for the year 2015 to 2019

Year Competitors Historical Supply

Local Stores Online

2019 3912.53 5613.63 9526.16

2018 3883.09 5571.39 9454.48

2017 3854.11 5529.81 9383.92

2016 3825.13 5488.23 9313.36

2015 3796.61 5447.31 9243.92

The table shows the historical supply of the competitors. Local stores were computed at 23% of
the total number of projected demand and online at 33%. This shows that the proposed business
can offer more supplies to their targeted market.

28
 Figure 2
Historical Demand Graph
9550

9500

9450

9400

9350

9300

9250

9200

9150

9100
2015 2016 2017 2018 2019

Formula: Average Annual Increase = 2019 supply – 2015 supply

From 2015 to 2019 number of years -1

= 9526.16- 9243.92
5-1

= 282
4

Projected increase in supply = 71 scented candles

Figure 1 shows the graph of the Historical Demand using the Arithmetic Straight Line Method. It
is used to determine the projected demand as it is indicated by the Straight Line with 240
increases in demand.

29
Supply Analysis

Based on the conducted survey that is done through distributing the questionnaires to the

respondents the percentage of the residents who are willing to try and avail the service that the

proposed business will offer, the proponent have determined their projected supply.

Projected Supply

Projected Supply Computations

2020 9,597 9,526 + 71 = 9,597

2021 9,668 9,597 + 71 = 9,668

2022 9,739 9,668 + 71 = 9,739

2023 9,810 9,739 + 71 = 9,810

2024 9,881 9,810 + 71 = 9,881

Table 13

Table shows the projected supply of the year 2020 to 2024 with the increase of 71 supply

a year.

 Supply-demand Analysis

A gap in the market is an opportunity to make and sell something that is not
available yet. Success of any business is determined by two factors which are the
demand of the product at a price and the rate of growth of demand; supply
capability of the business to supply the demand.

30
 Year Projected Projected Demand Percent Market Share
Demand Supply – Supply Unsatisfied
Gap
(1) (2) (3) = (1) (4) = (5) %
– (2) (3)/(1)x100
%
2020 32,618 9,597 23,021 70.6 1,611 7
2021 32,858 9,668 23,190 70.6 2,087 9
2022 33,098 9,739 23,359 70.6 2,569 11
2023 33,338 9,810 23,528 70.6 3,059 13
2024 33,578 9,881 23,697 70.6 3,555 15

Table indicates the demand and supply gap for the year 2020 to 2024. Coming
from the projected demand presented in table _ and the computed projected
supply shown in table _ , the demand and supply gap is obtained by subtracting
the projected supply from the projected demand which shows the available market
for the proposed business and the percent unsatisfied is obtained from the
demand-supply gap divided by the project demand. The proponents will cater 7%
of the market share for the initial year and an increase of 2% every year after.

Selling Price

Service Revenue Forecast

The service revenue forecast was obtained from the projected market share to cater the demand-
supply gap.

Promotional measures

Advertising and promotion are essential to getting the word out about the proponents’ business.
The proposed business will be promoted through daily specials which will be announced on

31
Facebook, Instagram, and Twitter; state of the art website; and special offers and discounts. The
proposed business will also use signages and tarpaulins.

Marketing budget

The allotted budget for the advertisement of the proposed business is Php 3,450.00. It is
composed of Social Media Promotion, Signages, and tarpaulins.

Promotional Expense

Items Quantity Unit Cost Total Cost

Social Media Promotion Every 1 minute P 260.00 P 1,300.00

(5 days/month)

Tarpaulin 5 280.00 1,400.00

Signages 5 150.00 750.00

TOTAL P 3,450.00

Table 14

The table above shows the total cost of promotion that the proposed business will use.

Projected Advertising Expense

Years 2020 2021 2022 2023 2024

Amount P 3,450.00 P 3,546.6 P 3,645.90 P 3,748.00 P 3,853.00

Table 15

The table above shows the projected advertising expense (Social media advertisement,
Tarpaulins, and Signages) that will be use for the next 4 years of the proposed business
operations. The estimated expense is based on the half of the initial promotional expense to be
incurred at the inception of the business. The advertising expense will increase every year based
on the inflation rate of 2.5%.

MANAGEMENT AND PERSONNEL ASPECT

32
One of the important aspects in building a business. Management must be able to plan all the
activities to become productive and competitive in the industry. This includes the officer and key
personnel, organizational chart, form of ownership, as well as pre-operating expenses. The main
objective of this plan is to determine the option effectiveness of the organization set-up.

Company Name

This candle making business will be registered under the name SPARKS Candle Co. which
symbolizes light in the deepest darkest hour. And the tagline will be “Let There Be Light”, is a
biblical phrase found in the book of Genesis 1:3. This also reminds us how God created light
according to The Bible.

Emblem

Mission

To give light and provide relaxation to the body, mind, and spirit through aromatherapy
candles.

Vision

To be the best scented candle making company in the world.

Core Values

To provide quality scented candles that will give an extra sense of calm to our customers.

To sell not just to our existing customers but also to intrigue potential ones.

Form of Ownership

33
The form of business organization Sparks chose was General Partnership. It is a business
arrangement by which two or more individuals agree to share in all assets, profits, and financial
and legal liabilities of a jointly-owned business.

A general partner has responsibility for the actions of the business, can legally bind the business
and is personally liable for all the business’s debts and obligations.

Organizational Structure

Job Roles and Responsibilities

Owners

Manager

Customer Service Staff/Workers

Executive/Web
Content

Table 16
Organizational Structure

Business experience and qualification of key personnel

Chief Executive Officer – CEO (Owner)

Job Description

 Ensures that the organization’s strategic direction is communicated to the management

staff and invariably the employees
 Ensures that the company’s corporate structure is built in such a way that it affects and
influences the management staff as well as other middle and lower end employees
 Responsible for the performance of everyone and invariably the success of the company
and takes an active role to ensure that the required performance is needed

34
 Uses the CEO position to cultivate relationship with important customers thereby
ensuring that new businesses are not only brought in but that the profitability of the
business is increased
 Responsible for creating and introducing new varieties of candles into the marke
 Analyzes market trends and also responsible for developing product proposals that will
enable the business make profit
 Responsible for reviewing product line so as to ensure that a focused brand concept
direction is achieved
 Works with fragrances and colors to identify marketable varieties
 Works with all the necessary aspects to ensure that all target costs are met
 Carries out constant research on the right scents and colors for the candles
 Works with product development to ensure that only the right colors and scents are used
in making candles
 Responsible for ensuring that the company gets the right staff and in the right number so
as to be able to meet the objectives of the company
 Works closely with the manager and owner to ensure that strategies regarding human
resources are in line with the goals of the company
 Responsible for drafting recruitment policies, as well as staff career development policies
that is in line with the company’s overall policy
 Ensures that new staffs are oriented properly, while older staffs are adequately trained
and appraised regularly for promotion or fringe benefits
 Responsible for bookkeeping and accounting transactions
 Ensures that the company’s accounts are reconciled at the end of every month
 Responsible for paying invoices and payrolls
 Responsible for creating strategies that will address the need of target segments
 Responsible for drafting an effective marketing plan, which would cover promotion and
the right pricing
 Works with manager to ensure that the sales and marketing strategies meet with the
overall strategies of the company
 Ensures that the company’s image is projected positively in the course of meeting target
market requirements

35
Qualifications

 Has experience in dealing with budgets and must ensure that resources are properly
allocated in accordance to the policies of the business

Manager

 Performs supervisory roles and also works hand in hand with them to ensure that the
operations in the company runs smoothly
 The manager ensures that the company’s policies are followed at all times. He works
hand in hand with the CEO and can make certain decisions on behalf of the CEO
 The Manager is responsible for ensuring that feedbacks are gotten from the staff and
relayed to the CEO
 Helps to translate the vision and mission statement of the company to the staff so that
everyone is aware of what is needed to be done
 Helps resolves conflicts, as well as motivate employees
 Responsible for ensuring that reviews are carried out on the company’s budget as well as
production goals, and make adjustments where necessary
 Communicates with customers through chat or video apps to get their feedback on scents
 Interacts with customers through chat or video apps and pass feedbacks back to the
appropriate department.

Qualifications

 bachelor's degree in business or a related field such as economics, communication,

advertising, marketing or statistics.

Salary

Employee with the position stated above will receive a salary of P520.00 per day

Customer Service Executive / E-commerce and Web Content Administrator

36
  Manages online account. Interacts with customers and answers their enquires whilst also
handling complaints from clients in a satisfactory manner
 Projects the image of the company positively to customers at all times
 Works closely with the manager to ensure that their tasks are in line with company’s
policies
 Has in-depth knowledge about company’s products and services
 Ensures that web content is created and accurate
 Responsible for the creation of content marketing materials

Qualifications

 Ability to communicate clearly

 Ability to read customers
 Attentiveness
 Excellent writing, designing and editing skills.

Salary

Employee with the position stated above will receive a salary of P420.00 per day

Production Workers

 Responsible for the production of scented candles, curing, assembling, packaging or

storing them.
 Also responsible for preparing items for distribution.

Qualifications

 Must be 18 years old and above

Salary

Employee with the position stated above will receive a salary of P385.00 per day.

Proposed Policies of the Business

37
When a business has clear policies, both employees and employer benefit. Outlining employees’
rights and expectations within your company helps set behavioral and performance standards for
the workplace, and gives employees an overall framework of how to be successful in a business.
Policies also help to protect a business and contribute to a safe and more enjoyable work
environment for everyone. These considerations have made Sparks Candles Co. set its rules as
well.

Pre-operating expenses

Item Quantity Price Total Amount

Soy Wax 3kgs P 300 P 900.00

Fragrance Oil 12 (30ml) 160 1920.00

Candle Wicks 20 185 185.00

(Eco series)
Wooden wicks 2 73 146.00

Metal Candle wick 5 99 99.00

holder
Candy thermometer 1 70 70.00

Aluminum Tin Can 10 (150ml) 27 270.00

Glass Jar 10 (100ml) 45 450.00

Candle wick tab 1(84pcs) 170 170.00

sticker
Herbs and dried 2 90 180.00
flowers
TOTAL 66 P 1,219.00 P 4,390.00

Table 17. Production Expense

The table present the equipment needed in the business, the items and their quantity, as

well as their price and the total amount of expenses of the production. The total amount of

expense is P 4,390.00.

Registration Amount

38
 DTI P 500.00
BIR 530.00
TOTAL P 1,030.00
Table 18. Registration

The table above shows the total amount of business registration in DTI and BIR.

PRODUCTION AND OPERATIONS ASPECT

Product Description

Scented aroma candles which come in jars and in all sizes. These candles are made of soy wax
with organic herbs and flowers. These candles will definitely provide well-being to the body,
mind, and spirit. Give benefits like, improving someone’s mood, increasing focus, remembering
positive memories, providing a more restful sleep, alleviating stress and will likely make homes
smell nice and feel cozy.

Location Site

Sparks Candles Co. office is located at the owner’s house which is situated in San Rafael Proper,
Tarlac City. Customers are able to see products and place order online, specifically on their
Facebook account.

Target Location

The proposed business will initially be operated at the owner’s house which is located in
San Rafael, Tarlac City.

Accessibility to the customers

Products will be available to customers anywhere in the world as long as they have an all-
access internet connection since the business will operate online making it possible for them to
place an order 24 hours a day, 7 days a week at the tip of their fingers. With an exception in
terms of shipment, wherein products can only be delivered throughout Philippines.

Location Layout

39
Figures 2 and 3 shows the layout of the business’ location and its floor plan.

Figure 2. Location Layout

40
 Figure 3. Floor Plan

Business Process

Sparks will start as an online business that will likely be available 24 hours a day, 7 days
a week, wherein customers can comfortably shop at their homes through the use of the internet.

The proponents are taking the opportunity to grow their business online as the world
faces a phenomenon which is fortuitous in nature. They think this is the best time to encourage
their customers to stay and enjoy shopping at the comfort of their homes.

Land and Building

41
The proposed business will put up its shop in one of the owner’s house located in San Rafael,
Tarlac City. The shop shall have an area of 8 square meters by 12 square meters. The size of the
space is just enough for the operation of the business.

Maintenance and repairs

To assure the safety of the personnel, the customers, as well as the business as a whole, the
management will set a quarterly maintenance and repairs of the shop and its equipment to avoid
possible problems in the daily operations of the business.

Direct labor requirement

The business will be operated by the owner of the business, a manager, a customer service
executive/ web content administrator, and 3 production workers.

Salaries

The proponents will make sure that the employees shall receive their salaries and mandatory
benefits that are due to them, guided by the rules of the Department of Labor and Employment.

The table shows the Salaries and wages that the proponents will give to their employees.

Job Position Daily Monthly Annually

Manager Php 520.00 Php 13,520.00 Php 162,240.00

Customer Service Php 420.00 Php 10,920.00 Php 131,040.00

Executive

Production Workers Php 385.00 Php 10,010.00 Php 120,120.00

Table 19
Salaries and Wages

Republic Act No. 6727 (also known as the “Wage Rationalization Act”) mandates the fixing of

the minimum wages applicable to different industrial sectors, namely, non-agriculture,

agriculture plantation, and non-plantation, cottage/handicraft, and retail/service, depending on

the number of workers or capitalization or annual gross sales in some sectors

42
Personnel Productivity

To promote the welfare of the employee/s, each is entitled to the following benefits:

1. SSS Premiums;
2. PhilHealth Contribution;
3. Pag-IBIG contributions;
4. 13th Month Pay
5. They will be provided with the necessary trainings in candle making process and
provide customers with quality products.

Utilities

Electricity

Electricity is one of the most needed sources for operating a business especially in the
field of service industry. The consumption of the power will be supplied by Tarlac Electric Inc.
(TEI). The proposed business will have an approximate expense of P2,000.00 monthly.

Water

Tarlac Water District will support the operation in terms of water consumption. This will help
the business to maintain standard cleanliness around the area where candles are being cured. The
proposed business estimates an amount of Php 300.00 per month for this expense.

Utilities Monthly Annually

Electricity Php 2,000.00 Php 24,000.00

Water Php 300.00 Php 3,600.00

TOTAL Php 2,300.00 Php 27,600.00

Table 20
Total Cost of Utilities

The table indicates the total cost of utilities, this includes electric bill and water bill. Every
month the total cost will be Php 2,300 and Php 27,600 for every year.

Waste and Waste Disposal

43
 Globally, waste management remains a serious threat, especially among larger

organizations. The methods involved in waste management can have adverse effects on the

environment, climate, and health of human. To effectively manage waste, it is vital to create a

balance to promote recycling and protect consumers against harmful chemical substances. Sparks

candle co will ensure the cleanliness of the establishment and the place surrounding it. The

business will implement the right disposing of garbage by separating from recyclable to non-

recyclable and biodegradable to non-biodegradable garbage.

44
LEGAL ASPECT

Permits: DTI, SSS, BIR (forms)

Department of Trade and Industry (DTI)

Tasked to foster a competitive and innovative industry and services sector that contributes to job
generation and inclusive growth; and to advance the rights and responsibilities of consumers.

Figure 4. DTI Registration Form

45
Social Security System (SSS)

Designed to contribute to the nation's economic growth and development by providing financial
assistance to the business sector for the purpose of increasing productivity and enhancing
potential earnings through expansion diversification and other business development projects.

46
 Figure 5. SSS Registration Form

Bureau of Internal Revenue (BIR)

One of the things that a business owner needs to do to make your business legal by registering

the business with Bureau of Internal Revenue and to avoid the risk of being tax evader.

47
 Figure 6. BIR Registration Form

Article of Co-Partnership

Article I.- That the parties here to have agreed to and do by these presents become partners

under the firm name and style of A, B, C and Company with the principal office and place of

business.

Article II.- The purpose and business of said partnership shall be the description of business,

finding and other goods, wares and merchandise of a like nature and the doing of all things

necessary and incident thereto.

Article III.- The said A, B shall contribute to the capital of said partnership his skill, knowledge

and experience as an entire time and attention.

Article IV.- The said A, B shall devote his entire time, skill, labor, and experience to advancing

and rendering profitable the interests and business of said partnership and shall not engage in any

other business or occupation whatever on his individual account during the existence of said

partnership. Said C, D, shall not be required to devote any of his time or personal attention to the

business of said partnership.

Article V.- Each partner may make and take contracts for and on behalf of the partnership

business, but contracts or purchases involving a liability of more than. Shall be made only a full

consultation and with the approval of both partners. All contracts shall be made and taken only in

the firm name. In case of disagreement as to making, taking or assuming any contract or

obligation by the firm, such contract or obligation shall not be made or entered into. Each partner

shall have the right to discharge any employees hired by either of them.

48
Article VI. – Each partner agrees that all gain, profit, advantage and increase which shall arise

by reason of said co-partnership or joint business as afore head, shall be, from time

to time during the existence of said co-partnership, equally divided between them share and

share alike, and all losses and expenses, as shall happen or to be incurred in said business

without fraud, shall be paid and borne equally between them.

Article VII. – Neither partner shall release or cancel any indebtedness or obligation due to the

partnership except on full payment either give or extend credit to any- persons or company

without the consent of the other.

Article VIII.- Neither partner shall at any time sign the firm name, or his own name, or pledge

the firm’s credit, or his own individual credit, in any manner as surety or guarantor on any paper,

bill, bond, note or draft, or other obligation what so ever. Neither partner shall assign, pledge or

mortgage any of the partnership property, or his interest therein, or do anything or permit any act

whereby the firm’s money. Interest or property, or his interest therein, may be liable to seizure,

attachment or execution.

Article IX. - Each partner shall faithfully and honestly do and administer each and every part of

the work undertaken or taken charge of by him or by them solely for the profit and advantage of

the partnership.

Article X. - There shall be kept at the principal office and place of business of said firm, at all

times during the continuance of said partnership, true, accurate, full and complete books of

account, in which shall be entered all moneys received and disbursed by said partners, or either

of them, or their agents or employees; all goods, wares, merchandise and other property bought

49
and sold, for or on account of the business of the firm; all contracts, undertakings,

obligations, debts and liabilities taken or incurred, and also all other matters and things in any

manner appertaining or belonging to the business of said firm.

It shall be the duty of said A. B. to faithfully, carefully and accurately keep the books and

accounts as aforesaid; and it shall be the duty of the said G. D. at all' times, to furnish the said A.

B. with true, accurate and complete information, account and data of all transactions and things

by him undertaken, or under his charge.

Each partner shall, at all times, have free access to said books, and to all papers, documents

and writings, belonging to the firm, without interruption or interference by the other.

Article XI. - It shall be the further duty of said A. 8. to attend to, and have charge of, the

finances, moneys and accounts of said firm, collect the bills, accounts and moneys due to the

said partnership and make and prepare monthly statements of the same for the use of each of the

said partners.

All moneys received by said partners, or either of them, from said business, or in any way

coming thereto, shall be daily deposited in the Bank of, or such other bank or banks as said

partners shall mutually agree upon, to the account and credit of A. B. & Company. Each partner

shall have the right, at all times, to inspect and examine all bank books of said firm.

All debts and obligations of said firm shall be paid by check on said bank account, or accounts.

Checks for amounts less than dollars $ may be signed by A. B.; checks for amounts exceeding

dollars $ shall be signed by A. B. and countersigned by C. D.

50
Article XII. - The said A. B. may draw, from the profits of said business, the sum of dollars $

per month. Any deficiency in said sum in any one month shall be made up to the said A. B. from

the profits of subsequent months before any division of profits shall be made. The amounts so

drawn shall be charged against the share of the profits of the said A. B. in each quarterly account

hereinafter provided for.

Article XIII. - It is further agreed that they, the said partners, shall, on the day and at the end of

every three months thereafter, make and render each to the other a true, just and accurate account

of all income and profits, by them, or either of them, made, and of all losses by them, or either of

them, sustained, and of all receipts and disbursements by them, or either of them, received or

made, and of all other things by them or either of them done, or suffered, in and about the

partnership business; and the said quarterly accounts being so made, each shall deliver to the

other, at such time, their equal shares of the profits of the business, and all moneys on hand shall

be equally divided at such time, taking into consideration all amounts withdrawn by either of

said partners for his own personal use during such preceding three months. But at all times

amounts shall be left to the credit of the partnership, and not divided, sufficient to pay all debts

and obligations of said partnership then unpaid, and for the reasonable requirements of the

business thereof.

Article XIV. - This agreement shall be binding and in force and the term of this partnership shall

be for the period of years from the date hereof unless sooner terminated and dissolved by consent

or by the death, bankruptcy, insolvency, or disability of either party.

51
Article XV. - At the time of dissolution of the partnership, or any termination thereof, the

partners each to the other or in case of death, bankruptcy, insolvency or disability of either, the

survivor to the executors, administrators, trustee, assignee or guardian of the other, shall make

and render a true, just and final account of all partnership transactions, and adjust and fully settle

all matters relating thereto. After payment of all debts and obligations of the partnership, all the

property and assets of the firm shall be appraised at the true value thereof, and the said C. D. may

select therefrom, at such valuation, property and assets to the value of dollars $, being the

amount contributed by him to the capital of said firm, the property so selected to be and become

the sole and individual property of the said C. D. All property and assets of said firm remaining

after the selection so made by said C. D. shall be equally divided between the partners, share and

share alike, and each partner, for himself, and his personal representatives, hereby agrees to

execute all necessary instruments to invest the other with the sole right to the property

apportioned to such other and thereafter neither shall interfere with the same nor release any

account, claim, debt or property apportioned to the other.

All contracts and obligations then outstanding and unperformed shall be fully completed and

performed in the name and for the advantage and profit and at the expense of the partnership and

all profits made or losses sustained thereby shall be equally divided share and share alike.

Article XVI - It is further mutually agreed and covenanted that no

changes, alterations, additions, modifications or qualifications shall be made or had in the terms

or provisions of any article or articles of this agreement unless the same shall be made in writing

signed by each of the partners.

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In witness whereof, the parties hereto have set their hands to duplicates hereof on the day and

year first above written. A. B.,

FINANCIAL ASPECT

Project cost

Major Assumptions

In the formulation of financial projections, assumptions play a major role because they serve as
the foundation for estimating the future expenditures, expenses, and revenues of the project as
accurate as possible. These assumptions, therefore, must be based on well-considered, realistic
and workable facts. The following are the list of major assumptions.

1. The average inflation rate in the Philippines will accelerate in the next 5 years
from 2.5 to 3 percent.
2. Expenses such as utilities, repairs and maintenance, miscellaneous are affected
also by inflation.
3. Inflation has impact on the cost of product supplies.
4. Significant new competition in the market
5. Each partner is assumed to withdraw P10,000 every month.
6. Salaries and benefits for workers will increase based on tenurity.

Financial Projection

Financial Analysis

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