SCENTED SECRETS

Scented Candles

BUSINESS PLAN

GROUP 3

MEDENILLA, CLYDE LAWRENCE C.

TOMINEZ, FAITH ALEXANDRA P.

DULAY, ERWIN JAMES O.

ILAGA, GIAN DARYLL C.

INAY, JABEZ TRUMAN KEITH III

FEBRUARY 2022
 CHAPTER 1: INTRODUCTION

Name of the firm: Scented Secrets

Location: Barangay San Isidro, Cainta, Rizal

Over the past few years, Relaxation is considered as a process that relieves stress on your

mind and body. At present, there are many different forms of relaxation and aromatic candles are

one of the common forms. Scented candles play an important function in the health spas to

relieve symptoms of bronchitis, high blood pressure, tension, insomnia. In addition, scented

candles provide holistic approaches for relieving people of emotional and mental stress, grief,

and trauma. Scented candles contain additives taken from a variety of sources such as essential

oils, herbs, spices, citrus, berries, musk, oatmeal, and sea breeze. Today, scented candles are

produced on an industrial scale from petroleum sources such as paraffin and benzene homologies

to create aromas which are potentially harmful to human health. Therefore, it is necessary to

produce aromatic candles from natural sources such as soy wax, beeswax, dried lavender

flowers, natural essential oils to bring the most practical benefits to the users.

The principal object of Scented Secrets is to produce scented candles which yield

pleasant scent or odor. This is made possible using a carrier or vehicle. These carriers are the

sugars, among which may be sucrose, dextrose, levulose, mannose, and glucose. The present

attempt includes a method of making a scented and/or a colored candle which consists of

forming a plurality of separate particles of candle wax; combining the coloring and/or scenting

agents with these particles; coating the particles with the selected agent or agents by agitating the
particles and agents together; and disposing the coated and dried particles in surrounding relation

to a candle wick. Various additives are used in candles to provide desirable qualities, such as

color, scent, texture, and stability.

The quantity of diluent required is the quantity necessary for dissolving the fragrance or

the antioxidant. Scented candles utilize a scent agent, typically a scented oil, that is added to the

wax of the candle during manufacture and that releases a scent during the burning of the candle.

The scent may be provided in different concentrations for different candles and a growing trend

is to provide highly scented candles having a strong concentration of the scented agent.

Fragrance-emitting candles are widely available and are typically employed to impart odorant

into space.

However, on the preparation of scented candles from beeswax, soy wax, combined with

self-distilled lavender essential oil. The product is made entirely from natural materials. In

addition, with the support of antioxidants, which help long-lasting scented candles, the aroma is

less variable during storage and transport. The objectives were to investigate the parameters

affecting the distillation process of lavender essential oil; create a candle that has long lasting, no

health effects, low cost; determine some physicochemical properties and sensory evaluation of

the product. The aroma and benefits of aromatherapy show that human emotion adjusts, so the

demand for aromatic candles is widespread. And the use of candles to provide a variety of

satisfying aesthetic effects of religious, festive or relaxation.

Back to this date, the candle industry continues to increase resulting in increased demand for

cultural objects such as candles. Further, traditional customs such as wedding practices, birthday

celebrations, festival of lights, and others are also impact the growth of candle industry

positively. The global Scented candles market size was valued at USD 531.5 million in 2020 and

is expected to expand at a compound annual growth rate of 3.3% from 2021 to 2028. The growth

of market is being driven by an increase in the number of hotels, restaurants, wellness facilities

and religious institutions. And this is where Scented Secret is formed.

A.

• Business Concept

The Scented Secrets strategy aims to build a medical and aromatic candle business

that features the best product of candles that serve as a decorative, an aromatic and a

mosquito repellant. Scented Secret seeks to innovate the traditional walk accommodation

practices that a typical candle businesses offers and change it to where customers can order

as like on a regular shop but an addition to where customers can order their product of

choice like online shopping through the Scented Secrets online site or a trustworthy app

and delivers the goods to the doorsteps for those who like to avoid the hassle of going out

and walking to the store fearing on the pandemic. The Scented Secrets online site/or app

will be built in a user-friendly environment, one tap away from reaching our best scented

candles that have decorative, long burning, environmental friendly and relatively helpful
for your collective health; thus, authenticators will be added to avoid misorder. And what’s

good about our app is you can pay them through online payment or by COD to ensure the

satisfactory of our dear customers.

• Business Model

Our business model is based on the sales over the actual Scented Secrets Market,

and by the Scented Secrets site/app to gain profit thus Leverage Intelligent Sales,

Marketing Data for Revenue Growth, and customer demands can be a crucial factor in

achieving the business’ potential in having the total maximum capacity of the revenue. The

estimated cost of the enterprise products would range from 150 up to 720 pesos per

lavender scented candle depending on the size and 25,000 to 100,000 for business startups.

These costs can ensure that profits are created by evaluating the total sales profitably.

Dividing it into sectors can ensure that all parties receive their fair share of the profit and

get back the total expenses lost in creating the business. Thus, this factor is not guaranteed

to be absolute, and therefore the complete demands of the customers can significantly drive

the costs of the product. Hence, these factors can be controlled if the product maintains its

regular flow of demands. A significant investment of the enterprise would come from bonds

because it is more stable compared to stocks. After all, they usually provide a steady flow of

income, but their long-term return probably will be less; however, they can sometimes

outperform a particular stock’s rate of return. This investment can give the enterprise a

competitive edge because the business can gain profit over time without a high risk of
losing money. The enterprise can also finance the business by portioning some amounts of

the profit made by the industry, and the same goes for funding its growth.

B.

• Business Goals

Vision

“To help people realize that candles aren’t just for lighting and to soothe; they can

also be used as a torch to lead anyone, affluent or poor, along their dark and winding

paths.”

Mission

“To give our dearest and most sincere prayers that are incorporated in every candle

we light in any event to provide customer happiness with our high-quality candles.

Including that not only meets our customers needs but also piques their interest. With a

systematic service for a safe and eco-friendly working place for it’s professional and

excellent employees.”
 Objectives Key Results

1. To build a significant market 1a. Number of created branches through-

presence in the region of out the Calabarzon Region.
Calabarzon 2a. Sales Volume attained.
3a. Market shares in Calabarzon Region

2. To provide its owners with good 2a. Number of net profits for the next 5
financial results. years.

2b. Return of quality (ROE)

2c. Return on assets (ROA) or return on

investments (ROI)

2d. Return on sales (ROS)

3. To provide high-quality scented 3a. Growth of sales

candles and services to
3b. Percentage of repeat customers
customers.

3c. Customer survey rating

4. To make working at Scented 4a. Management and employee turnover

Secrets a pleasant and
4b. Number of job applicants compared to
rewarding experience.
other similar establishments

5. To satisfy our customers with 5a. Number of customer reports

our Scented Secrets
5b. Number of deliveries per day.
app/Facebook Page.
 Key Results Performance Indicator

2022 2023 2025

(Now) (One year later) (Five years later)

Number of created branches 1 3 10

throughout the Calabarzon
Region.
Sales volume attained Php 8 million Php 13 million Php 60 million

Market shares in Calabarzon 2% 4% 10%

Region
Amount of Network Profits for Php 2,400,00 Php. 8,800,000 Php. 17 million
the next Five years
Return of Quality (ROE) 53.3% 55% 60%
Return on Assets (ROA) OR 31.4% 40% 60%
Return on Investments (ROI)

Return on sales (ROS) 30% 35% 40%

Growth Sales 20% 25% 30%

Percentage of repeat customers 30% 40% 50%

Customer Survey Rating 3.5 (on a scale 4 (on a scale of 1 4.5 (on a scale of
of 1 to 5) to 5) 1 to 5)
Management and employee 12% 15% 20%
turnover
Number of job applicants 10% more job 25% more job 40% more job
compared to other similar applicants applicants applicants
establishments
Number of deliveries per day 96 128 145
Number of customer reports 10 5 3
 CHAPTER 2: EXECUTIVE SUMMARY

Even before the pandemic when several lockdown and travel restrictions were

implemented as disease control measures to protect the health and safety of citizens, scented

candle businesses have already been thriving around the streets of Metro Manila. Scented Secrets

will deal decorative and scented candles, which will be available in different shapes and sizes.

We know that there are over 10,000 different candle scents and we are proud to say that we hold

an amazing, scented candle not only it is long lasting but also affordable, pet and eco-friendly.

We shall continuously look to improve and diversity our scent line.

The Scented Secrets have a walk accommodation as a typical scented market business but

has a distinct feature of having online site/app. Customers can order and have their preferred

product delivered right through their doorsteps. The business owners had chosen this style for

those who want to have a floral and soothing scented candles while having the comfort of their

homes to have a stress-free environment. The Scented Secrets administrator manually chooses

the employees to ensure that the best quality products are always be sent to the customers. The

managing staff had excellent management skills to provide advisory or support capacity by

providing them with information. In addition, the managing staff should be approachable for the

sake of communication which best fits the requirements of becoming the one who will lead the

market when the administrator is away for other business opportunity. The administrator also

proposed the main branch of the to be a large market located along the highway main street of

San Isidro, Cainta, Rizal with an allocated parking lot. The administrator had chosen this

location because of its easy access. It is on the main section where many people pass, increasing

the chance of entering the Scented Secrets market.

Strategic Options

The Scented Secret will complete in the candle making market capitalizing on its

advantages in mobility, efficient and quality service, professional and experienced employees,

ability to cut on fixed costs and rent, and ability to offer solutions to customer pain points

through convenience, flexibility, and enough variety of service options. On the other hand, the

business need to optimize their operations despite limitations under these constraints: space,

time, resources, and manpower. Additional preventive costs for the maintenance of the shop

should also be considered given that there may be unexpected disaster.

✓ Given these, the business may resort to the following strategic options to take

advantage of the opportunities it will have in the market and minimize threats along the

way of its operations:

• The business should intensify how it will accommodate the long queues in physical

scented candle shop in the area by focusing on the efficiency aspect where customers do not need

to go to the store and wait in line as the service will come to their places while providing the

same - or better, quality scented candles by reliable, trained, and experienced candle makers who

are focused to solely their job, while being time and cost-efficient;

• It can utilize the increasing demand in the market by highlighting how Scented Secrets

will solve and cater to the uncertainty and problems that customers constantly encounter by

offering them mobility wherein they only need to book a schedule, no need to travel to the store,

and assures that safety protocols are maintained.

 • It should strategically position itself in the market with competitive pricing while

offering the best quality scented candles in the area that provides solutions to customers’

unknown problems such as transportation, busy schedule, safety, and so on whose employees are

professional, well-trained, and specialized who will cater to customers’ specific needs and wants

as well as added value; and,

• The Scented Secrets can intensify the actions of consistently aiming at cutting down

costs as external inevitable problems that may increase expenses.

✓ All persons who contributed to the formation of the proposed concept Scented

Secrets proponents, particularly the:

• Profit can be made by resource mobilizers and financial supporters who provide

financial help for the start-up of a firm as well as providing analytical study of the business.

• Technology suppliers and applicators who, with their expertise and experience, assist in

the selection of technological equipment and funding for the business.

• Governance and top management, who meticulously examined the industry’s best

practices.

• Operating and support teams that assist in the organization of the company’s programs,

activities, tasks, and resources.

• Potential business partners who shared their thoughts on how to help the industry reach

its full potential.

 CHAPTER 3: BUSINESS PROPONENT

Lawrence Cortez is a 30-year-old marketing management graduate of the University of

the Philippines Diliman – Extension Program in Pampanga. With the support of his competence

and critical thinking skills in company management, he is assigned as President. As President, he

is expected to make an astonishing impact to the company. He is responsible for enforcing the

law and establishing policies that must be obeyed by all employees and departments. He’s also in

charge of setting short and long-term objectives. He must also oversee the budget and guarantee

that all departments achieve their objectives. Finally, a good president must possess strong

leadership and decision-making abilities to assist management and employees in creating a

happy and well-coordinated atmosphere for current and prospective clients.

James Orpiano, a well-known business partner and CEO of Oracle Enterprise, will be

the company’s financial backer. As a young CEO, his primary focus was on achieving financial

success and investing in his business partners. Appreciate all your associates do for the business,

according to a quote created by Sam Walton. Nothing beats a few well-chosen, well-timed, and

honest words of encouragement. They’re completely free and worth every penny of money. He

believed it was his obligation as a business owner to provide an environment in which his

employees could develop their talents and feel valued for their contributions.

Truman Mabitasan is a well-known vlogger who travels. Mabitasan completed his

bachelor’s degree in environmental studies at Merriam College during his college year.

Mabitasan’s next move is to follow his long-held ambition of discovering the world’s hidden
wonders. He began performing vlogs, community activities, and exceptional community support,

establishing himself as a powerful influencer. Mabitasan, as the company’s operating and

support team manager, will oversee the activities, programs, tasks, and resources required for

operations, ensuring that the programs benefit customers, the environment, and the company.

Daryll Coderias is a web and mobile development expert with four years of expertise in

the industry. He has set a personal goal of assisting developing firms in meeting their technology

needs in today’s culture. Coderias had started at the bottom of every businessperson’s entry from

a young age and had ascended to the top with the support of his supervisors. This experience has

improved his well-being and inspired him to assist other businesses succeed in the same way that

he did. His task as the enterprise’s Technology Provider and Applicator is to create the scented

secrets internet site to guarantee that no errors occur, which might lead to client dissatisfaction,

because it is the enterprise’s innovation.

Pilor Wax Manufacture Inc. is a store that sells soy wax, wicks, and jars, and it will be

the primary source of all the supplies required for scented secrets to operate. Ms. Alexandra

Pilor, a citizen of San Isidro, Cainta Rizal, is the owner of Pilor Wax Manufacturing Inc., which

is noted for its creative business methods and sales analysis. In her experiences, Ms. Pilor had

supplied many enterprises, and the scented secrets warmly accepts Ms. Pilor as a member of the

scented secrets team. Ms. Pilor, as the supplier of soy wax, wicks, and molds, will provide all the

high-quality products required to ensure our clients’ happiness and satisfactory of our products.
 Love’s Lavender Shop, like Pilor Wax Manufacturing Inc., is a supplier-based store that

primarily sells Lavender Essential Oils and Dried Lavender Flowers. Mr. Rei Love, the

proprietor of Love’s Lavender Shop, is our primary source of high-quality lavender essential oil

and dried lavender flowers. He will be responsible for supplying all Scented Secrets’ lavender

items as the company’s primary produce supplier. Mr. Love was hand-picked by Lawrence

Cortez, President of Scented Secrets, indicating that he will be a long-term partner for the firm

due to his dedication to the service.

 CHAPTER 4: TARGET CUSTOMERS AND MAIN VALUE PROPORTIONS

Customers provide instant feedback about the quality of products, services, and

support that a business need. A target customer is a type of customer in which a business wants

to offer its products or services.

A target market is set of individuals sharing similar needs or characteristics that your

company hopes to serve. The target market of this business is the citizens of Cainta, all around

the Philippines and all the possible customers around the province of Rizal that saw the

importance and the purpose of our hand-made products.

Our scented candle is undisputedly one of the best you will ever try. With your

budget of 800php, you can buy our candles you haven’t tested yet. The benefits you can get from

our candles is outstanding since the purpose of these is to reduce nervousness, anxiety &

depression, help maintain a healthy sleeping schedule, boost your immune system and many

more things that make you uncertain in life. What makes our product unique? It is fragranced of

pure essentials oils made from plants and fruits. The Lavender Scented Candles assurance to our

loyal and new customers that everything we sell is natural, clean and eco & animal friendly. We

are also following the strict rules enforced by the government for your safety and for our

professionals and employees. We will not slow down making the highest and prestige scented

candles that you tried and tested, we swore on the honor of our business to provide an

unforgettable high-quality service you may desire while treating all of current and future client

with respect.
 CHAPTER 5: MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND

ENVIRONMENTAL FACTORS

We will improve our company through market penetration because we will use new and

unique techniques that will allow more ideas to grow. Market penetration can assist the industry

in creating a hole and penetrating it for the company to enter the market as quickly as possible.

Although using this technique can be risky because penetrating the market requires lowering the

evaluated pricing to be visible to customers’ eyes. For specific intervals, the company will lose

5% to 15% of its original counted sales, resulting in high sales. This technique is used for one to

five months of business operations, however if client recognition is achieved, changing to the

original price plan might result in large profit. As a result, the needs of customers will be a

critical factor in deciding the total sales of the company.

Sizes/Promos/Prices Store-Bought Delivery

Small (Php 150) 10 13

Medium (Php 250) 12 17

Large (Php 350) 16 19

“Promo 1” Two medium plus 18 22

One small soy candle (Php
495)

“Promo 2” Two large plus 23 25

Two small soy candle (Php
720)
The tables above shows the prices of the candles that comes from different sizes and the estimated

number of services the business can provide, 175 services daily. Let’s say we want more people to buy.
Because we used market penetration to assess the overall market supply and demand the business offers,

we’ll need to cut the price and increase the production rate in such instance.

Assume that costume demand exceeds the predicted average rate of any business. In such instance, candle

prices will rise, resulting in a profit; therefore, total supply will not be a problem. Therefore, the cost of producing

the full supply in the market is estimated to be overestimated to reduce the possibility of no profit or bankruptcy.

Furthermore, the customer’s rate of purchasing the product is one of the factors or variables that can influence

market demands.

After this conclusion has been achieved, estimates for future demand and supply must be made. The

predictions can only have two outcomes: it will either stay the same or it will not. No changes to the trends will be

made if the physical factors or the market remain unchanged, however alterations may be made to maintain the usual

customer flow rate. And let’s say that the factor causes unexpected shifts in demand and supply estimates. In that

instance, changes should be done as soon as feasible to address the new factors that influenced demand and supply,

resulting in a shift. If no changes are made from the market or store, the price values will remain the same, but if

changes are done, the price can go up or down depending on the situation.

Market Demand and Supply

Our competitors are establishments that were built initially because they were the first in the area to sell

scented candles. They had gained the trust of the clients, resulting in our competitors having a far larger customer

base than we did. That is our disadvantage, but it is also our advantage because they are old-fashioned in online

selling, which has become a contributing component in our business. As a result, our competitors employ outdated

business structures and cost-cutting techniques.

Pilor Wax Manufacturing Inc. and Love’s Lavender shop are the suppliers of candle wicks, molds/jars, soy

wax, and lavender essential oils & dried lavender flowers in this business. Because they are faithful to the service
and easy to cooperate with, these suppliers are easy to trust. They choose direct selling since it is more convenient,

and buyers are not easily fooled.

Industry Dynamics

Social environment – Our company must adapt to what people like, which is usually something pleasant

to smell; this may necessitate some changes, and we must be acutely aware of the society’s social preferences in

terms of what they desire, as this will influence us as well; we will have to change when their preferences change.

Political Environment – This part, like taxation policies and economics, would have a significant impact

on our business. For example, a change in the tax rate would have an impact on our business. We must intervene if

our industry lacks political stability. Otherwise, it will be a failure.

Macro Environmental Factors

Economic Environment – To make more money, our demand must match our supply. If our suppliers

stopped delivering the supplies we needed, it would have an impact on our business. To put it another way, “if the

monkey had no banana, he would be sad; if the monkey had banana, he would be happy”; the same is true for us. To

please our customers, we must maintain the demands.

In today’s modern climate, we must innovate so that customers would try out our products, as well as

investigate what our customers want so that we will know what to do.
 CHAPTER 6: PRODUCT AND SERVICE OFFERINGS

Scented Secrets plans to offer a wide variety of products and service in order to increase its competitiveness

and get a larger market share. Clyde knows the secret to start a candle business and have it succeeded is to embrace

creativity and offer clients a unique range of products. Given his experience and studying market trends, Lavender

Candle is in a perfect position to capitalize on its strengths to achieve its business goals and increase revenue. The

following products will be offered by Scented secrets.

Many people wish to use lavender scented candles but don’t have the time to physically go to the store.

This is where I’d like to introduce the 3 rd party apps like Shopee, Lazada, and our own very own app named Scented

Secrets app. These apps will allow you to buy products quickly and easily anywhere in the Philippines, including

Luzon, Visayas, and Mindanao. You may look for “lavender scented candles” and find a lot of our items and a lot of

options that pique your interests for your home and special occasions. We are certain that our scented candles are

undisputedly the best in the Philippines.

What sets us apart from the competition is that we have created our very own Facebook page and our

own Scented Secrets App where customers can conveniently purchase our high-quality products without having to

visit our store. The products are delivered to the customers’ doorsteps, saving them time and effort. We decided to

make our very own Facebook page and Scented Secrets app since millennials prefer using this type of platforms to

purchase what they want and needs. As soon as the scented candles reach our buyer, they should rest assure that the

products will arrive safely handled with outmost care as they assure to deliver the expected products to your

doorsteps. Our Facebook page and our Own app is also open from 8:00 a.m. to 11:00 p.m. to ensure that the

customers can buy whenever and wherever they want—finally, the Lavender Scented Candle staff are versatile,

well-prepared and safe best quality of lavender scented candle has to offer.

Despite candles being around for numerous centuries, they still play a vital role in today’s society. Aside

from illumination, the era of scented candles and fragrances has ushered in a new perspective and the market it

constantly looking for unique and creatively made candles for use in homes, businesses and special occasions.
 CHAPTER 7: ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM

The company’s strategy is to estimate the actions required. The following is the approach for

establishing the industry and defending against competitors:

• Always overestimate capital requirements - this will help you minimize the possibility of unexpected

expenditure spikes. Most restaurants overlook instances in which the cost of operating materials and resources has

grown. To put it another way, if there is a sudden price hike, the restaurant will have no trouble restocking the goods

needed to keep the business running.

• Research your competitors - researching potential competitors not only aids in evaluating what services they

provide, but it can also aid in the development of our own business by identifying what services the competition

lacks and applying it to the enterprise. If your competitors have a weakness, you must seize the opportunity to act

and gain more customers.

• Pricing - as expenses. Customers will not return if the prices are excessively expensive. If it’s too low, the

company will go out of business.

• Market share - a significant market share can hinder a competitor’s growth, therefore having a substantial market

share is an important measure of a company’s competitiveness. Customers regard the business as a successful

enterprise, therefore higher market share means more exceptional sales. Having a large market share also means the

provider will offer you better prices. Customers’ demands are what generate profit, whereas the resources required

by the firm are what generate profit for suppliers.

Sales Strategy

For Scented Secrets to effectively reach out to the market, this business plan for candle making to

implement the strategies below to advertise its range of products.

• Send introductory letters to businesses and stakeholders to create awareness about the candle making

businesses

• Organize an opening party and invite guests from target markets to advertise the business. During the

opening, offer visitors free samples of products to allow them to have a feel of the quality

• Attend exhibitions and trade shows which are awesome platforms for advertising the candle making

businesses

• Market the business on social media platforms such as Facebook, Twitter and Instagram. Advertise the

business online using Google Ads.

• Advertise Scented Secrets Candle on local directory listings

• Create a simple search engine optimized website to boost the online presence of the candle making

businesses for purposes of gaining higher online rankings

ONLINE

Instagram: Many lifestyle brands found great success building a sizable following on Instagram. Curate a feed of

beautiful images related to your brand, stage photos of your candles to show off to customers and reach a larger

audience. You can also use Instagram to reach out to brand evangelists and provide a behind-the-scenes peek at how

you make your candles.

Pinterest: Home décor is a major category for users of Pinterest, which is one of the largest platforms customers use

to find brands and products. So, it’s wise for homemade candle merchants to consider Pinterest as a pillar in their

marketing strategy.
Snapchat: as another highly visual platform, Snapchat is another viable option for maker merchants. As one of the

fastest-growing social media platforms with more than 200 million users, DIY hustlers can use the medium to

market to an increasing audience.

Giveaways and contests: As part of a social/content marketing strategy, you can use some of your merchandise as

prizes in a series of giveaways and contests. Not only can these contests help you gain followers and build brand

awareness, but you also have the opportunity to show off how well your products work.

Email Marketing: Deliver your message (as well as promos, discounts, and other brand news) right to your

customers’ inboxes

OFFLINE

Getting direct feedback: If you’re eager to improve your products (or just dying to hear what customers think),

selling in person is a great way to do it. Meet your target customers face-to-face, address their pain points, and get

ideas for potential new products.

Discover wholesale opportunities: Ready to scale your business? Or looking to explore selling B2B? Markets and

fairs are ideal events to meet wholesale buyers and establish a foundation for such a relationship.

Build your online following and email subscribers: Whether you’re aiming to grow your social audience or build

your email list, use pop-up shops and markets to connect online. When visitors show up at your booth or shop, ask

them to subscribe to your email list or follow your branded social channels for new products, discounts, and

giveaways.
Networking and inspiration: Connecting with fellow makers and entrepreneurs is also a major part of the draw for

festivals, markets, and fairs. Meeting other merchants can inspire you with new ideas and help you come up with

new solutions to shared problems.

Input Throughout Output Marketing Desired Outcomes

• Harnessing of • Conversation of • Goods produced • Positioning • Customers

human, money, input into output or services satisfied

• Product
and physical and the delivered
• Sales Volume
resources. transformation • Packaging
attained
within the factory
• Resources • Place
• Profits generated
mobilized
• People
• People
-Money
• Promotion performance

-Men
• Prices

-Machines

-Methods

-Management
 Below are the process flow of the Scented Secrets Walk-In System and Delivery

System.
 CHAPTER 8: FINANCIAL FORCAST

YEARLY INCOME STATEMENT OF SCENTED SECRETS

TOTAL REVENUE PHP 8,000,000.00

COST OF GOODS SOLD PHP 3,000,000.00

GROSS PROFIT PHP 5,000,000.00

OPERATING EXPENSES
SALARIES PHP 1,200,000.00
RENT PHP 300,000.00
UTILITIES PHP 250,000.00

TOTAL OPERATING PHP 2,150,000.00

EXPENSES

TAXES PHP 450,000.00

NET INCOME AFTER PHP 2,400,000.00
TAX
THE TABLE ABOVE SHOWS THE YEARLY INCOME OF SCENTED SECRETS

BALANCE SHEET OF SCENTED SECRETS

ASSETS LIABILITIES
CURRENT ASSETS CURRENT LIABILITIES
CASH PHP 2,500,000.00 ACCOUNTS PHP 350,000.00
PAYABLE
ACCOUNT PHP 600,000.00 INCOME TAXES PHP 50,000.00
RECIEVABLE PAYABLE
INVENTORY PHP 1,726,450.00 WAGE PAYABLE PHP 245,050.00
SHORT TERM DEBT PHP 550,000.00
FIXED ASSETS LONG TERM LIABILITES
LAND AND PHP 800,000.00 LONG TERM DEBT PHP 1,271,300.00
IMPROVEMENTS
BUILDING AND PHP 1,200,000.00 STAKE HOLDER’S EQUITY
IMPROVEMENTS
EQUIPMENTS PHP 650,000.00 CAPITAL PHP 4,500,000.00
VEHICLES PHP 150,000.00 RETAINED PHP 660,100.00
EARNINGS
TOTAL ASSETS PHP 7,626,450.00 TOTAL PHP 7,626,450.00
LIABILITIES &
EQUITY
THE TABLE ABOVE SHOWS THE BALANCE SHEET OF SECNTED SECRETS
Sales: PHP 8,000,000.00

Net income after tax: PHP 2,400,000.00

ROS = Net income after tax

Sales
= PHP 2,400,000
PHP 8,000,000
= 30%

ROA= Net income after tax

Total assets
= PHP 2,400,000
PHP 7,626,450
= 31%

ROE= Net income after tax

Stakeholders
= PHP 2,400,000
PHP 4,500,000
= 53%
 CHAPTER 9: ENVIRONMENTAL AND REGULATORY COMPLIANCE

BUSINESS PERMIT

Business permit is a compliance document which entitles

and enables a business to legally operate in do business

in the area in which the business is registered. In short,

the business permit can be considered as a license to

operate within that specific area.

Business permits are issued to ensure that businesses pay

their taxes and comply with local regulation for safety, security, health, and sanitation. Business

permits proves that you have a legitimate business that is recognized by the local government. It

also proves that your business follows certain laws and ordinances.

REGISTRTION OF BUSINESS NAME

Business name registration provides the business its legal

identity. Registering of business name helps us to avoid

legal problems with the government, secures our

reputation as a legitimate business, build trust among

suppliers, customers, and employees and allows us to

fully market our brand and business everywhere.

BARANGAY CLEARANCE

Barangay clearance is a government-issued document

in the Philippines. It is used to certify a person with

good moral character and a law-abiding citizen of a

certain barangay. It is a requirement before the

municipality issues any license for the business

activity. Barangay clearance can be obtained from the

barangay where the intended business of activity is

located or conducted.

BUILDING PERMIT

A building permit is a document of authorization issued by

a local government when an individual or company wants

to build a new structure or begin construction in an existing

structure for expansion or repair. It is intended to ensure

that the project plans to comply with the local standards for

land use zoning and construction. These standards are

intended to ensure the safety of current and future owners

and occupants in to provide enforcement of zoning and

land use policies.

Our business, scented secrets is a part od candle industry. When used safely,

candles give many hours of beauty and atmosphere. The twinkling candlelight

combined with elegant colors and sophisticated fragrances provide a great sensory

experience. Although candles are pieces of decoration, don’t forget that this lovely

works of art are also potential health and safety hazard. In entering candle industry,

we must understand the legal requirements in doing and selling candles which

includes industry standard and safety regulations. The law relating to candles is

complex and technical but every candle making business only needs to be aware of

the laws in place which are ultimately there to protect the business as well as the

customers. We must follow the rules and regulations in candle making business to

satisfy our customers and ensure their safety because having bad feedbacks from

them can poorly affect our business.

Pilor Wax Manufacture Inc. Permit 1.1 Love’s Lavender Shop Permit 1.2

The picture above shows that the product suppliers of Scented Secrets are legitimate and

are approved by the law.

 CHAPTER 10: THE CAPITAL STRUCTURE AND FINANCIAL OFFERING

AMOUNT PURPOSES SOURCES PRE PHP- & IN

VALUATION BUSINESS
150,000 Vehicle Scented Secrets 150,000 to 5%
250,000
1,500,000 Ingredients: Scented Secrets, 1,500,000 to 35%
Wax & Pilor Wax 2,000,000
Lavender Manufacture
Inc., Love’s
Lavender shop
700,000 Electricity & Scented Secrets 700,000 to 15%
Water Bill 900,000
800,000 Land Scented Secrets 800,000 to 15%
900,000
1,200,000 Building Scented Secrets 1,200,000 to 30%
1,500,000
The table above show the assets that builds the capital for Scented Secrets

CALCULATING THE TOTAL DEBT OF EQUALITIES RATIO

(FINANCIAL LEVERAGE)

For Scented Secrets at the end of the reporting period:

Total Liabilities = PHP 2,466,350

Stockholders Equities = PHP 4,500,000

Total debt to equities ratio (B/V):

B/V= Total Liabilities / Stockholders Equities

B/V= 2,466,350 / 4,500,000

B/V= 55%
 CALCULATING THE LONG-TERM DEBT TO EQUALITIES RATIO (CAPITAL

LEVERAGE)

For Scented Secrets at the end of the reporting period:

Total long-term Liabilities= PHP 1,271,300

Stockholders Equities= PHP 4,500,000

Total long-term debt to equities ratio:

= Total long-term Liabilities / Stockholders Equities

= PHP 1,271,300 / PHP 4,500,000

= 28%

Assets Liabilities
Current Assets Current Liabilities
Cash Php 2,500,000 Account Payable Php 350,000
Account Receivable Php 600,000 Income Taxes Payable Php 50,000
Inventory Php 1,726,450 Wage Payable Php 245,050
Short Term Debt Php 550,000
Fixed Assets Long-Term Debt Php 1,271,300
Land Php 800,000
Building Php 1,200,000
Vehicle Php150,000
Equipment Php 650,000

Total Assets Php 7,626,450