TRIPLE J’S SWEET & DELIGHTS

BUSINESS PLAN
2020-2021

1. EXECUTIVE SUMMARY
1.1 Vision
Our Vision is to become the first choice of assorted sweets in the Locale and a
respected company consistently recognized by our customers, our employees, our
shareholders, and the community that we live in.
We consider values to be an important part of our success. They define
who we are, and what sets us apart from our competitors. These Values include:
 Honesty. We act truthfully and sincerely to our customers and
employees alike, providing consistency in workplace behavior, and
building loyalty and trust among our customers.
 Integrity. We adhere to our ethical and moral principles. We follow
them at all times, no matter who’s watching.
 Accountability. We are responsible for our choices or actions.
Being accountable builds trusts between employees as they
understand that they can depend on each other.
 Teamwork. We act as a team, committed to each other, and bound
by trust and loyalty.
1.2 Mission
Our mission is to build a franchise that offers high-quality and nutritious sweets
and associated treats at a competitive price, in order to meet the demand of our target
markets including middle to high-income groups, as well as tourists and visitors.
Triple J’s Sweets & Delights will aim to provide unique cupcake and milk tea
products and services by retailing and wholesaling tasty treats. We maintain a friendly,
creative, and fair working environment that welcomes diversity, hard work, and new
ideas. We intend to generate profit to provide a fair return for our investors and to expand
the business into other surrounding communities.

1.3 Goals
Our Goals are as follows:
 Increase Profit Margin
 Capture a bigger market share
 Provide better customer service
 Improve employee training
 Maintain Profits

1.4 Objectives
To achieve our goals, we have set the following objectives:
 Earn at least a 20 percent after-tax rate of return on our investment during
the next fiscal year
 Increase market share by 10 percent over the next three years.
 Training employees thoroughly
 Establishing a financial plan to review accordingly

1.5 Company Overview

Triple J’s Sweets & Delights is a confectionery company in Naga City that sells
high-end baked goods to customers. Triple J’s Sweets & Delights is founded by Ms.
Jonalie Basbas, Mr. John Jerick Cavite, and Mr. Edmund James Sandejo, students who
love baking and also practice their skills in food decorating through their hobbies.
Furthermore, the founders understand the target customers from their experiences. The
company’s competitiveness rests on the founders’ experience, business skills,
relationships, and enthusiasm.

1.5.1 Name, Form of Business Organization and Location of the

Business
 The name of our small business will be known as Triple J’s Sweets &
Delights. The origin of our business name was based on the initials of the
business owners. From the name itself “Sweets & Delights'', our business offers
delicious cupcakes that are both gluten-free and vegan at the same time. Products
made with quality ingredients in traditional and experimental flavors.
Triple J’s Sweets & Delights is a Partnership business, with three owners
namely Ms. Jonalie Basbas, Mr. John Jerick Cavite, and Mr. Edmund James
Sandejo who have equal shares in the business.
Triple J’s Sweets & Delights is a mini cafe that will be located between
the Big Olivan Condominium Building and Caltex Gasoline Station. The address
is 125-B Zone 1, Bagumbayan Norte, Naga City, Camarines Sur, Philippines.
This is an excellent location to serve our target market. The condominium is
centrally located and easy to reach from anywhere in the metropolitan area.
Traffic at this location is one of the highest in the area, with a count of over
37,000 vehicles passing by east and over 34,000 passing by west daily. Triple J’s
Sweet and Delights will have over 3,300 potential patrons between the age of 10-
24, and a total population of 55,302 within only 3 square miles. The Caltex
Gasoline station is well known to our market and will be easy to identify in our
advertisements. Locating on these streets makes it easy for our customers to reach
us by car or any vehicle. Moreover, there are parking lots from these streets.
Parking is ample around the big condominium and more than 30 spaces are
available immediately at the left side area of the Caltex Gasoline station.

1.6 Business Description

Triple J’s Sweets & Delights is a small business that offers a wide variety of
unusual flavoured gluten-free cupcakes. We deal in all forms and flavors of cupcakes.
Our cupcakes are super chic, fun, and fabulous! We believe that every day you should
have something a little special in it, which is why we've added some umph to our
cupcakes and offer every flavor every day. We are entering the food industry, specifically
baked goods, sweets and cupcakes. The industry is expected to rise by 15-20% in the
next 5 years.
 As part of our strategy to create multiple sources of income in line with our core
business concept, we will run an in – house and community-based consultancy service
and training as it relates to cupcakes and other baked foods. Our intention of starting
Triple J’s Sweets & Delights is to make profits from the industry and we will do all that
is permitted by the law in the country to achieve our aim and ambition.

1.6.1 Product Description

Triple J’s Sweets & Delights products will be baked and retailed cupcakes
made in different designs, different variants, different themes, and different
flavors and of course different packaging just to appeal to our target market.
This cafe provides a fresh batch of cupcakes at all times during business
hours and will also bake to order for orders larger than 12 cupcakes. The products
being sold in this cafe also includes milk teas. They will all be unique, and like
nothing anyone’s seen before. Catering and deliveries will also be available under
some circumstances. Customers will sure love this business for it is very timely
and relevant to our generation today.

1.6.2 Equipment/Materials Needed

1. Oven
The number one equipment in this list is an oven. Small convection ovens
can accommodate a maximum of five sheet pans, while their double convection
counterparts can hold twice the number of pans. Furthermore, a double deck oven
can allow us to bake our confection at two different temperatures at the same
time, which makes it a good investment for our business.

2. Proof boxes
Professional bakers also need proof boxes for their roll dough and bread to
rise at the recommended temperatures. And since proof boxes come in different
sizes, mobile proof boxes can be recommended for small bakeries. For your
information, these boxes can accommodate a maximum of 20 pans, and can as
well be moved out when they are no longer in use. Better still, these proof boxes
are generally less expensive than the built-in models, hence suited for small
professional bakers who are just starting out.

3. Racks and baking sheets

In the beginning of our business, at least ten 18″ X 26″ baking sheets with
three or more racks, as well will be purchased. In addition, we will be needing a
number of sheet cake pans, round cake pans, muffin tins and pie pans to start the
business.

4. Mixers
One or two counter mixers and planetary dough mixers with a capacity of
30 to 40 quarts are among the essential equipment that will be purchased at the
start of our business.

5. Work Tables
Work tables are important for storing all the items needed in our business
while baking or to provide ample working space in our cafe. We will be choosing
the sturdiest work tables that suit our budget, since it will be used most of the
time. The height of the worker/baker will also be considered in choosing the work
table to protect them from back pains and being uncomfortable while working.

6. Chiller
This is the “must-have” bakery equipment for storing cold ingredients like
butter, milk, and cream. Since chillers have flat worktops, these are great in
providing the much-needed working space in bakeries. A chiller with a stainless-
steel worktop is preferable in our business since it may actually lessen the burden
of having to buy more work tables, since we’ll have enough space for storing all
the baking items that are needed.

7. Sinks
 A three-department sink will be needed for washing, rinsing and sanitizing
your dishes and other appliances that cannot be effectively washed in a
dishwasher. Two, federal regulations demand to have a mop sink that’s
exclusively reserved for cleaning the floor and lastly, it will be required to have a
separate sink in the kitchen for washing the staff’s hands before or while baking.

8. Freezers
Freezers will also be needed to store the baked goods such as cupcakes,
cakes and the dough as well. Generally, these freezers are room-sized and can
actually store a large number of cakes, cookies, and other of our products.

1.6.3 Size of the Business

Triple J’s Sweets & Delights is a small-sized business consisting of the
owners only. The ideal customer of this business are people in 3 to 65 year old
range.

1.6.4 Personnel Requirement

During the first months of operation, the founders will be the only
employee of Triple J’s Sweets & Delights. After the first phase of the operation, if
the business becomes more active and known in the market, additional employees
will be added in order to meet the needs of season. Each of the employees will be
paid on an hourly basis.
Qualifications:
 At least a senior high school graduate.
 18 years of age and above
 Resides within or near Naga City.
 Experience related to customer service
 Experience related to finance and auditing
1.7 Business Model

Business Model

Partner Key Activities Offer Customer Customer

Network Relationship Segments

 Bake  Cupcake at
 Ingredients cupcakes every  Bulk  Local
distributor  Serve occasions orders customer
s drinks and themes  Loyalty s
 Delivery  Customize  Personalize Discounts  Online
service cupcakes d cupcakes  Coupons customer
 Adding  Cupcake and Shop s
new flavor Vouchers  Occasion
flavors combos  Freebies s / Parties
 Cupcake  Customer orders
combo Satisfactio
menu n surveys
 Dine-in, and
Take-out, discussion
Key and delivery Distribution
Resources services Channels

 Baking  Social
 equipment Media and
 Baking website
Formulas  Delivery
 Employee Service
s and  Product
Staffs Advertisin
g
Cost Structure Revenue Statements
 Product Ingredients  Product Sales
 Equipment and Facilities  Online Sales
 Delivery cost
 Websites and advertisements

1.8 Business and Product Position

Triple J’s Sweets & Delights is a small cafe that will be on a quest to offer the
highest value products at a very inexpensive price that will make eating more enjoyable.
Triple J’s Sweets & Delights will enable its clients and customers to find a place where
that can be at ease and feel valued.

1.9 Wealth Improvement Approaches

This section of the executive summary describes the methodologies or approaches
that will be taken by the business in order to:

a. Maintain a competitive advantage.

Triple J’s Sweets & Delights, compared to the existing markets, offers well-baked
cupcakes made in different designs, variants, themes, and flavours that target
different kinds of consumers. Its current location which makes it easy for people
to reach is excellent for this business, making it have a greater sale than the
competitors. Triple J’s Sweets & Delights is not just a cupcake shop but a mini
café that offers milk teas to become a partner with these cupcakes that the
 consumers could enjoy. The customers could either dine-in in the café or have its
take-out which will make them comfortable and have a quality time. Delivery
services are also available for those who are craving for these products on their
home, where with just a simple click you can already have it delivered to you.

b. Position the business in the Market

Aside from the availability of our products in our store and online
platforms, Triple J’s Sweets & Delights will also offer franchising for those who
are willing to sell our products in different locations. Supermarkets and store
owners can also do retailing of the products with its packaging and brand on their
stores.

c. Improve the market share

Triple J’s Sweets & Delights will pay close attention to higher visibility
and competitive pricing of our goods and services in order to assume and
maintain our share of the market. Customer satisfaction about the products is a top
priority in order to come up with better marketing strategies and product revision
that will please the consumers.

d. Maximize the utilization of resources

Since the suppliers are just within our area, supplies will be distributed
every week. With this given time of delivery of the supplies, we maximize the use
of our resources and make sure that it is enough and will not be wasted. When it
comes to the working hours of our employee, we make sure that they are working
8 hours a day with their given rate; and if they exceed that time, we give
additional rate for the overtime that they spent.

1.10 Parties Supporting the Business

The parties that have a direct relationship with the business are as follows:
a. Consumer

Consumers are the main reason why a business is implemented. The product
and services are being offered to them; and in return the business gains sales and
recognition to the public. The target consumers of the Triple J’s Sweets & Delights
are those people at any age who are fond of sweets and baked products and drinks.
These products are good for those events like parties, weddings and ceremonies;
since, we offer customized products depending on the theme, flavor, and as well the
size depending on the choice of the consumers. Customers could go directly into
our shop or either shop online on the food deliveries available.

b. Creditors

Triple J’s Sweets & Delights will issue an agreement between the family
and friends of the owners supporting them to invest in the business. In order to not
break our agreement with these creditors, marketing strategies and plans are top
priority to increase the sales and pay the debts that we have with these creditors.

c. Suppliers

Suppliers are those who provide the resources in making the product. Since
the main product of our business is cupcakes and milk teas, the main supplies are
Flour and Milk. To make sure that the supplies are at high quality, we purchase
these main ingredients on Naga PrimeGoods, Inc., a distributor and sub-distributor
of imported and local food and other consumer goods in Naga City. Other
ingredients such as dairy products are purchased from Mang Dairy Inc.

d. Employees and Staff

Triple J’s Sweets & Delights owners will be the one to manage the business.
As owners of a growing business, we are looking for a way to lessen the expenses.
So as an aid, we will not employ other employees and staff; instead, we will
manage the business as far as we can.
2. MARKETING PLAN

2.1 SWOT Analysis

Strengths
Our strength lies in the fact that we deal in all forms and flavors of cupcakes and a
wide range of products. We will bake and retail cupcakes and other baked goods made in
different designs, different variants, different themes, and different flavors and of course
different packaging just to appeal to our target market. We also have good equipment to
meet the demand, competitive price and new marketing strategies, new and different
varieties of cupcakes and milk teas, and the ambience of our cafe will also be appealing
to our customers since the owners have great concerns with aesthetics.
We have state of the art bakery facility and equipment that has positioned us to
meet the demand of cupcakes even if the demand tripled overnight or if we have a
massive order to meet an emergency need.

Weaknesses
The fact that we are new in the market, setting up a mini cafe business in a city
with other smaller and larger cupcake businesses might likely pose a challenge for us in
breaking into the already saturated market in Naga City. In essence our chosen location
might be our weakness. But nevertheless, we have plans to launch out with a big bang.
We know with that; we will be able to create a positive impression and we have a proper
handle when it comes to building on already gathered momentum. Also, one of the
weaknesses of our business is the lack of experience of the founders since they have only
learned through their own personal experiences.

Opportunities
 The opportunities available to us are unlimited. Loads of people consume
cupcakes and sweets on a daily basis and all what we are going to do to push our
cupcakes partnered with milk teas is already perfected. Not only this but our business has
a growing concern for health, and expansion of the product range. There will also be new
bakery products in the area.

Threats
The threat that is likely going to confront us is the fact that we are competing
with already established cupcake baking, milk tea shops, and retailing businesses in Naga
City and also there are other entrepreneurs who are likely going to launch similar
businesses within the location of our business. Of course, they will compete with us in
winning over the available market. Another threat that we are likely going to face is
unfavorable government policies and economic downturn. Usually economic downturn
affects purchasing / spending powers.

2.2 Marketing Mix

2.2.1 Product
Cupcakes are the key product of Triple J’s Sweets & Delights, and product
quality is essential for the success of the business. In order to ensure product
quality, this cafe will emphasize cleanliness and sanitation, use quality
ingredients, and will always be sure all cupcakes and other products are properly
made and baked. Innovations are also an important factor in the growth and
success of the company. This cafe will start by offering a variety of options, from
simple flavors to more decadent ones as well as different kinds of frostings, and
numerous decoration styles for all types of occasions.
However, to grow as a business, it is important for Triple J’s Sweets &
Delights to innovate their product. To do so, the mini cafe will continually work
to develop and test new recipes for new flavors of cupcakes and milk teas. Doing
so will allow the company to have more variety to offer and possibly attract new
customers. Along with this, Triple J’s Sweets & Delights will create a couple of
seasonal cupcakes and milk teas which will only be available during certain times
of the year. Doing this will give consumers something to look forward to in
upcoming months, as well as increase business as customers splurge on cupcakes,
they enjoy that are only around for a limited time. By creating new product
flavors, Triple J’s Sweets & Delights will not only grow as a business, but will
also increase sales.

2.2.2 Place
Triple J’s Sweets & Delights will open as a single cafe, along with a
catering service, in the city of Naga. Although the company is beginning as a little
cafe in a small town, the objective of the business is to continually grow.
Likewise, the catering service will grow as more bakeries are opened and perhaps
the ability to cater multiple events at one time will be reached.
The internet is an extremely efficient way to expand the business to a
wider range of areas; therefore, Triple J’s Sweets & Delights will develop a
website on which customers can place orders. Customers will then pick up their
reserved orders at the cafe, or, if they are not located near one, Triple J’s Sweets
& Delights will find an appropriate way to safely ship the cupcakes. Doing so will
not only increase the number of consumers that will be able to access the
business, but will also allow Triple J’s Sweets & Delights to determine
appropriate locations for opening more successful cafe, based on the areas from
which the most orders are placed.

2.2.3 Price
After Triple J’s Sweets & Delights first opens, its key objectives will
include strong market share survival, and return on investments. Achieving these
aspirations will eventually allow the business to become profitable. Keeping these
goals in mind, the company will choose prices which are competitive with the
industry. Doing so will help Triple J’s Sweets & Delights stay in business with
prices that are not high over competitors, which would likely turn customers
away. Yet by not being immensely below the market price, the business will still
be able to receive as much possible income while remaining competitive. As these
 prices result in the strong market share and survival of Triple J’s Sweets &
Delights, the company will then be able to use income to pay returns on
investments, and in time, receive profits

2.2.4 Promotion
Promotion objectives of Triple J’s Sweets & Delights will consist of
creating consumer awareness, generating interest and desire, and moving the
customer to make the purchase. Strategies for making consumers aware of
the cafe will include advertising and hosting a grand opening. Offering free
samples of the tasty treats at the grand opening may lead to both consumer
interest and desire. As customers try the delicious delights, they will be less
hesitant about making a purchase. By simply building customer awareness,
interest, and desire, consumer purchases will increase, raising company sales.
Being located in a small town, public relations will also be important for the
business. Community involvement will be an extremely valuable method of
addressing this. Doing so will not only help Triple J’s Sweets & Delights receive
more business from locals, but will also increase the company's chance of
referrals in the community. A few ways Triple J’s Sweets & Delights will utilize
public relations is through community involvement such as taking part in
community activities, sponsoring local events, or donating gift certificates or
baked goods for fundraisers. This will show the company's desire to be involved
and help out the community, which is extremely appealing to community
members. It will also provide positive exposure for the company. Public relations
will be essential for Triple J’s Sweets & Delights to be successful.

2.3 Market Analysis

2.3.1 Market Definition
 As a bakery café, Triple J’s Sweets & Delights will have a broad target market.
People of all ages, children through adults, enjoy delicious treats and milk teas, and
therefore will be incorporated in the target market. This product is not a high-priced item
and, as a result, will be available to nearly all people regardless of varying incomes.
Located in an area with a high number of residence and passers, the target market of this
company will include many locals who will indulge in the delights.

2.3.2 Customer Analysis

Triple J’s Sweets & Delights targets those people of all ages, from
children through adults, those who enjoy delicious treats and those who do not
fear sugars. Our products are not highly priced because we aim to serve all its
customers from lower to upper income wagers by providing affordable prices to
our products and accommodating services that will please the customers coming
into the business. Aside from these, we are targeting not just the customers from
our local stores, but also, we have provided our products in the online platforms
so that it could reach those customers who are in different locations covered by
our delivery services. With the various products that we had, we are still looking
for new recipes in order to pursue the wants of the customers and increase their
number.

2.3.3 Competitor Analysis

Triple J’s Sweets & Delights will be the only cupcake shop in our
location; but still, other bakeries and cake businesses will offer competition in the
market. There are existing names of cake shops and bakeries that are locally
known in the city that would be a great competitor with our business. But despite
the similar businesses in the area, Triple J’s Sweets & Delights still has its
strengths that would outshine the existing competitors.
Our business is flexible when it comes to pricing, we make sure that our
price is not higher than its competitors and affordable for all its customers.
Addition to this, we will be offering different kinds of high-quality cupcakes and
milk teas that the customers could choose while considering its price and quality.
The current location of our business is still one of its strengths making it to be
accessible to a larger market. Finally, the cafe experience and the comfortable
lounge for customers plus the convenient services will be a major advantage of
Triple J’s Sweets & Delights.

2.3.4 Market Forecast

 Customers
o People who love sweets
o Ages 3-65, mostly kids and teenagers
o successful
o throw parties
o residence of Naga City or near the town

 Market Size and Trends

o Growing between 15% and 20%

The trend for cupcake businesses has been growing as more and more people are
opening cupcake shops.

 Competition and Competitive Advantage

o Competitors
 grocery stores
 cupcake shops
 milk tea shops
 café that offers sweets
o Competitive Advantage
  quality
 service
 wide variety
 uniqueness

2.3.5 Market Position

3. OPERATIONAL PLAN
3.1 Organizational Structure
3.1.1 Job Description

CHIEF EXECUTIVE OFFICER (CEO) or PRESIDENT

Main purpose:
This person will be the driving force behind the company; he or she will
make things happen, put together the resources to support the company and take
the product to the marketplace.

Duties & Responsibilities:

The job duties of a Chief Executive Officer (CEO) in a company or
organization vary depending on the organization's mission, product, goals, and
operational needs to stay profitable. Duties also vary depending on the size of the
organization and the number of employees, among other factors. In general, these
responsibilities include:
 Creating, communicating, and implementing the organization's vision,
mission, and overall direction
 Leading the development and implementation of the overall organization's
strategy
  Formulating and implementing the strategic plan that guides the direction
of the business or organization.
 Overseeing the complete operation of an organization in accordance with
the direction established in the strategic plans
 Evaluating the success of the organization in reaching its goals
 Representing the organization for civic and professional association
responsibilities and activities in the local community, the state, and at the
national level
 Participating in industry-related events or associations that will enhance
the CEO's leadership skills, the organization's reputation, and the
organization's potential for success.

MARKETING MANAGER

Main purpose:

This person is responsible for managing the promotion and positioning of

a brand or the products and services that a company sells marketing managers are
employed to attract more customers to buy from the company and to raise brand
awareness through the creation of marketing campaigns. They will also analyze
the types of customer that a company wants and how to attract them, and they’ll
figure out ways for the company to better serve the customers they already have.

Duties & Responsibilities:

Because a marketing manager job role is so diverse and interesting,
depending on the size of the company, the marketing manager can be responsible
for many diverse activities, such as:
 Website management.
 Social media management.
 Copywriting and content management.
 Data analytics.
  PR and corporate communications.

SALES MANAGER

Main purpose:
Sales managers lead a sales team by providing guidance, training and
mentorship, setting sales quotas and goals, creating sales plans, analyzing data,
assigning sales territories and building their team.

Duties & Responsibilities:

 Managing organizational sales by developing a business plan that covers
sales, revenue and expense controls.
 Meeting planned sales goals.
 Setting individual sales targets with the sales team.
 Tracking sales goals and reporting results as necessary.
 Overseeing the activities and performance of the sales team.
 Developing your sales team through motivation, counseling and product
knowledge education.

SERVICES MANAGER:

Main purpose:
A Service Manager manages the service department team and handles
customer service interactions, reports, and repairs. The Service Manager ensures
excellent customer service, maintains strong relationships with customers and
third-party vendors, and ensures repeat customers.

Duties & Responsibilities:

 Delegating and directing service tasks, monitoring the progress of current
projects, and managing service team members to ensure the team's
objectives and sales goals are met.
  Handling customer complaints or concerns quickly and professionally to
maintain good customer relationships and ensure repeat customers.
 Assisting with or performing administrative tasks, such as managing and
updating invoices, processing new orders, and tracking inventory.
 Setting up and maintaining a service desk and evaluating its efficiency.
 Resolving service desk problems and improving service methods to
increase the service desk's productivity and customer service.
 Monitoring department issues and client complaints to create methods to
lessen recurring issues.
 Auditing work and customer service to ensure the company's high
standards, efficiency, and productivity goals are met.
 Maintaining strong relationships with manufacturers, dealers, and Sales
Representatives.
 Helping to train new employees in company procedures.
 Maintaining a strong working knowledge of industry regulations,
restrictions, and laws, ensuring the company's adherence to these
regulations, and remaining current on the industry's standards and new
innovations, materials, tools, and processes.

3.2 Production Plan

3.2.1 Production Schedule
3.2.2 Production Process
3.2.3 Equipment Required
3.2.4 Materials and Sources of Materials
3.2.5 Estimated Production Cost
3.3 Operation Plan
3.3.1 Evaluation of Suppliers
Naga PrimeGoods, Inc. has been a Foodservice distributor in Naga City
since 2015. It is a one-stop-shop offering a wide range of food and non-food
products under our Foodservice Group. Triple J’s Sweets & Delights will be
purchasing ingredients from Naga PrimeGoods, Inc. to increase the number of
resources of Wheat Flour And All-Purpose Flour to increase the production in
time.
Together with Naga PrimeGoods, Inc, Mang Dairy Inc. would be a great
partner with us. Mang Dairy Inc. is one of the good dairy companies in Naga City,
comprising over 90% of the non-refrigerated margarine market and over 80% of
refrigerated margarine market in the city. Mang Dairy Inc. will be supplying dairy
products in Triple J’s Sweets & Delights; Supplies such as Butter, Cheese, Milk,
Cultured Dairy, and other dairies.

3.3.2 Purchase Procedures

In order to support local businesses, it is important that we purchase
ingredients grown in the country. We jointly use local Wheat Flour and All-
Purpose Flour from Naga PrimeGoods, Inc. as well as local dairies for our dairy
products provided by Mang Dairy Inc.There are different suppliers available in
the area; but as far as we assess those suppliers, we have seen that Naga
PrimeGoods, Inc and Mang Dairy Inc provide high quality goods which would be
best for the production of Triple J’s Sweets & Delights’ products.
The purchasing of the goods will be scheduled weekly to make sure that
within this time interval, the supplies will be enough and on proper storing.

3.3.3 Storage and Inventory Control

It is necessary that we know the attributes of the goods in order to store
each of them properly. Triple J’s Sweets & Delights will provide a small
warehouse for storing and inventory of the raw materials and the on-process and
finished products. The equipment that will be used during the production will also
be stored in a small space in the warehouse to ensure that it is properly handled
and stored after use and could avoid any potential risks in the business.
In order to ensure that all accounting records are up-to-date and accurate,
we will take an inventory count every week. The number of products sold and the
 remaining supplies will be put on a record to track the growth of the business and
to estimate the number of supplies needed in the following weeks.

3.3.4 Sales Procedures

Triple J’s Sweets & Delights’ products will be distributed in two possible
ways. First is that customers can come to our local store located between the Big
Olivan Condominium Building and Caltex Gasoline Station at Bagumbayan
Norte, Naga City. Triple J’s Sweets & Delights Store offers a dine-in experience,
good for those customers who want to spend their time together with our
cupcakes and milk teas. Addition to this, we will extend our service for those
customers far from our location by providing delivery services, but in exchange
additional charges apply.
In order for Triple J’s Sweets & Delights to continually progress, we will
develop procedures to determine possible marketing strategies that will turn the
business into success. Product innovation is one of the goals that will be set by the
company in order to corstme up with new products that will click on the market.
Also, Customer Satisfaction with our products and services will be observed to
know more about the products they prefer and provide feedback on how well the
company manages as a way to meet the standards of the customers.

4. FINANCIAL PLAN
4.1 Start-Up Costs

Place Renovation ₱ 5,000.00

Furnitures ₱ 3,000.00
Office Supplies for 1 month ₱ 40.00
Store Supplies for 1 month ₱ 14,245.00
Payment for utilities for 5 days ₱ 200.00
Raw Materials for 5 days ₱ 11,150.00
Transportation for 5 days ₱ 300.00
Equipment and Tools ₱ 2,490.00
 Total Start-Up Cost ₱ 36,425.00

Total Start-up cost

Suggested Initial Investment by Each Partner
# of Partners in Business

₱ 36,425.00
= ₱ 12,141.67
3

Product Cost Estimation

Assumption

This is the daily cost of production. One yield is equivalent to 200 pcs of
cupcakes. Another yield for the drinks will be equivalent to estimated number of milk tea
which is 75.

Two types of cost will be calculated: (1) unit variable cost, and (2) unit share of
operating and other expenses referred to as fixed costs.

4.2 EXPENSES

4.2.1 Unit Variable Cost

The unit variable cost refers to how much it would cost to manufacture one unit of
the product. This includes the cost of direct materials, direct labor, and direct overhead.

 Direct Materials
a. For Cupcakes
MATERIALS UNIT COST
All-purpose flour 4 ½ kg ₱ 220
White Sugar 5 kg ₱ 250
Baking Powder 3 pack ₱ 30
Cornstarch 1 pack ₱ 10
Butter 350 g ₱ 100
Eggs 4 dozen ₱ 240
 Evaporated milk 2 cans ₱ 60
TOTAL ₱ 910

The total direct material cost for producing 200 pcs of cupcakes ₱910.00. The direct
material per unit is ₱4.55.

b. For Milk teas

MATERIALS UNIT COST
Brown Sugar 1 kg ₱ 50
Tapioca 1 kg ₱ 95
Tea 5 pack ₱ 150
Fresh Milk 3000 mL ₱ 900
Ice Cubes 5kg ₱ 125
TOTAL ₱ 1320
The total direct material cost for producing 75 pcs of milk tea is ₱1320.00. The
direct material per unit is ₱17.6

 Direct Labor

No payment for the labor will be made. All efforts will be done by the
owners of the business.

 Direct Overhead

This is the amount to be spent in the manufacturing overhead (energy,

water, and other utility costs) for every product produced.

I n making the cupcakes, the owners will use electricity in operating the
oven worth ₱ 160.

𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 = Total factory manufacturing overhead

total number of products produced

 ₱ 160
𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑cupcakes = = ₱ 0.8
200 pcs

In making the milk teas, the owners will use manual labor and fuel amounting ₱ 50.

𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 = Total factory manufacturing overhead

total number of products produced

₱ 50
𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑cupcakes = = ₱ 0.67
75 pcs

4.2.2 OPERATION EXPENSES

Computation for Monthly Production of Cupcake and Milk tea

PRODUCT PRODUCTION PER NUMBER OF MONTHLY

DAY DAYS PRODUCTION
Cupcakes 200 20 4000 pcs
Milk tea 75 20 1500 pcs

Unit Share of Fixed Cost

The second type of cost is unit share of fixed cost. Fixed costs are expenses incurred
that are not related to the manufacture of the product.

 Office Supplies (Monthly)

 Supply Qty Unit Total
Cost Cost
Ledger 1 pc ₱30.00 ₱30.00
Notebook 1 pc ₱10.00 ₱10.00
Total ₱40.00

Cupcake Subtotal ₱20.00

Milk Tea Subtotal ₱20.00

 Store Supplies (Monthly)

Supply Qty Unit Cost Total Cost

Paper bag 3 pack ₱15.00 ₱45.00
Cupcake box 400 pcs ₱3.00 ₱1200.00
Cupcake liners 20 pack ₱50.00 ₱1000.00
Plastic cups 1500 pcs ₱8.00 ₱12000.00
Plastic Straws 15 packs ₱100 ₱1500.00
Total ₱14,245.00

Cupcake Subtotal ₱2,245.00

Milk Tea Subtotal ₱13,500.00

 Utilities

Utility Per day # Days Monthly

Water ₱10.00 20 ₱200.00
Electricity ₱30.00 20 ₱600.00
Total ₱800.00
Cupcake Subtotal ₱400.00
Milk Tea Subtotal ₱400.00
 Transportation

Per Production # Days Monthly

₱60.00 20 ₱1200.00
Cupcake Subtotal ₱600.00
Milk Tea Subtotal ₱600.00

 Tools and Equipment

Tools and
Equipment Qty Unit cost Total Cost
Microwave Oven 1 unit ₱500.00 ₱500.00
Gas Stove 1 unit ₱500.00 ₱500.00
Weighing Scale 1 unit ₱300.00 ₱300.00
Total ₱1300.00
Cupcake Subtotal ₱650.00
Milk Tea Subtotal ₱650.00

Tools/ Kitchen Unit cost Total Cost

Utensils Qty
₱200.00
Mixing Bowl 4 pcs ₱50.00
Trays 4 pcs ₱30.00 ₱120.00
Knife 3 pc ₱30.00 ₱90.00
Measuring Spoon 2 set ₱100.00 ₱200.00
Container 4 pcs ₱100.00 ₱400.00
Spatula 2 pc ₱50.00 ₱100.00
Pot Holder 4 pcs ₱20.00 ₱80.00
 Total ₱1190
Cupcake Subtotal ₱595.00
Milk Tea Subtotal ₱595.00

The total fixed cost for cupcake is ₱4,510.00. The business plans to produce 4000
pcs of cupcake every month, each cupcake will absorb ₱1.13 of fixed costs.

The total fixed cost for milk tea is ₱15,765.00. The business plans to produce
1500 pcs of milk tea every month, each milk tea will absorb ₱10.51 of fixed costs.

4.3 Manufacturing Cost

The total unit cost of each cupcake would be:

Cost Component Amount

Direct Materials ₱4.55
Direct Labor 0
Direct Overhead 0.80
Unit Fixed Cost 1.13
Total ₱6.48

The total unit cost of each milk tea would be:

Cost Component Amount

Direct Materials ₱17.60
Direct Labor 0
Direct Overhead 0.67
 Unit Fixed Cost 10.51
Total ₱28.78

4.4 Selling Price

MARK-UP PRICING
FC
UC = 𝑉𝐶/𝑈 +
US
Where:
UC = Unit cost
VC/U = Variable cost per unit
FC = Fixed cost
US = Unit Sales

a. CUPCAKE PRICING
Given:
 VC/U = ₱5.35
 FC = ₱ 4,510.00
 US = 4000 pcs
 DMU (Desired Mark-up) = 40%

FC UC
UC = 𝑉𝐶/𝑈 + MUP =
US 1−DMU
₱ 4,510.00 ₱ 6.48
= ₱5.35 + =
4000 pcs 1−0.40
= ₱5.35 + ₱1.13 = 10.8
UC = ₱6.48 MUP = ₱11

The selling price of cupcake per piece is ₱ 11.00 to earn a profit of ₱4.52.
 b. MILK TEA PRICING
Given:
 VC/U = ₱18.27
 FC = ₱ 15,765.00
 US = 1500 pcs
 DMU (Desired Mark-up) = 40%

FC UC
UC = 𝑉𝐶/𝑈 + MUP =
US 1−DMU
₱ 15,765.00 ₱ 28.78
= ₱18.27 + =
1500 pcs 1−0.40
= ₱18.27 + ₱10.51 = 47.97
UC = ₱28.78 MUP = ₱48

The selling price of milk tea per piece is ₱ 48 to earn a profit of ₱19.22.
4.5 Projected Financial Statement
4.5.1 Projected Income Statement
Assumptions
INCOME
1. The operation of business will start on March 01, 2021.
2. Sales is computed by multiplying the monthly production,
selling price and, number of months that the business will operate in a
year.
3. The business is projecting sales to increase at 10% in 2022.
4. Cost of Goods Sold is computed by multiplying the monthly
production, unit price and, number of months that the business will
operate in a year.
5. Cost of Goods Sold in 2021 will increase by 5% in 2022.

EXPENSES
 1.The different expenses is computed by multiplying the monthly
expenses by the number of months that the business will operate in a year.
2. Utilities Expense, Advertising Expense and Transportation
Expense will increase 10 % in 2022.
3. Office Supplies and Store Supplies will increase 5 % in 2022.

Triple J’s Sweets & Delights

Projected Income Statement 2021 and 2022

2021 2022
Sales ₱ 1,160,000.00 ₱ 1,531,200.00
Less: Cost of Sales 0000690,900.00 ……930,996.00
Gross Profit ₱ 469,100.00 ₱ 600,204.00
Less: Expenses
Office Supplies ₱ 400.00 ₱ 504.00
Store Supplies 142,450.00 179,487.00
Utilities 8,000.00 10,560.00 4.5.2
Transportation 12,000.00 15,840.00
Projected
Miscellaneous ……..10,490.00 ……………...-
Total Expenses ₱ 173,340.00 ₱ 206,391.00 Statement of
Net Income before taxes ₱ 295,760.00 ₱ 393,813.00
Changes in
Partner’s Equity
Distribution of Projected Profit/(Loss)
Partners 2021 Projected Net 2022 Projected Net
Profit/(loss) Profit/(loss)
Partner A ₱ 98,586.67 ₱ 131,271.00
Partner B ₱ 98,586.67 ₱ 131,271.00
Partner C ₱ 98,586.67 ₱ 131,271.00
₱ 295,760.00 ₱ 393,813.00

Triple J’s Sweets & Delights

Projected Statement of Changes in Partner's Equity
For the Year 2021
Partner A Partner B Partner C Total
Original
Investments ₱ 12,141.67 ₱ 12,141.67 ₱ 12,141.67 ₱ 36,425.00
Add: Additional - - - -
 Investments
Profit ₱ 98,586.67 ₱ 98,586.67 ₱ 98,586.67 ₱ 295,760.00
Total ₱ 110,728.34 ₱ 110,728.34 ₱ 110,728.34 ₱ 332,185.00

Less:Withdrawals ……………...- ……………...- ……………...- ……………...-

Partner’s Equity, ₱ 110,728.34 ₱ 110,728.34 ₱ 110,728.34 ₱ 332,185.00

End

Triple J’s Sweets & Delights

Projected Statement of Changes in Partner's Equity
For the Year 2022
Partner A Partner B Partner C Total
Original ₱ 110,728.34 ₱ 110,728.34 ₱ 110,728.34 ₱ 332,185.00
Investments
Add: Additional - - - -
Investments
Profit ₱ 131,271.00 ₱ 131,271.00 ₱ 131,271.00 ₱ 393,813.00
Total ₱ 241,999.34 ₱ 241,999.34 ₱ 241,999.34 ₱ 725,998.00
Less:Withdrawals ……………...- ……………...- ……………...- ……………...-
Partner’s Equity, ₱ 241,999.34 ₱ 241,999.34 ₱ 241,999.34 ₱ 725,998.00
End

4.5.3 Projected Balance Sheet

Triple J’s Sweets & Delights
Projected Balance Sheet
2021 and 2022

2021 2022
Assets
Cash ₱ 332,185.00 ₱ 725,998.00
Total ₱ 332,185.00 ₱ 725,998.00

Liabilities and Partner's Capital

Partner A ₱ 110,728.34 ₱ 241,999.34
Partner B 110,728.34 241,999.34
Partner C 110,728.34 241,999.34
Total ₱ 332,185.00 ₱ 725,998.00
 Return on Investment Ratio

The return-on-investment ratio has two variations. One is the return on assets
and the other is the
return on equity.

I. Return on Assets
New Income
=ROA
Average Assets

2021 2022
New Income New Income
=ROA =ROA
Average Assets Average Assets

295,760.00 393,813.00
=ROA =ROA
332,185.00 (332,185.00+725,998.00)/2

393,813.00
II. Return on Assets =ROA
529,091.00
New Income
=ROA
Average Assets

2021 2022
New Income New Income
=ROE =ROE
Average Assets Average Assets

295,760.00 393,813.00
=ROE =ROE
332,185.00 (332,185.00+725,998.00)/2

393,813.00
=ROE
529,091.00
4.5.4 Projected Cash Flow Statement
Triple J’s Sweets & Delights
Projected Statement of Cash Flow
2021 and 2022
 2021 2022
Cash Flows from Operating Activities
Cash Received from customers ₱ 1,160,000.00 ₱ 1,531,200.00
Payment to purchase raw materials (690,900.00) (930,996.00)
Payment to utilities (8,000.00) (10,560.00
)
Payment to acquire furniture (3,000.00) -
Payment for store supplies (400.00) (504.00)
Payment for office supplies (142,450.00) (179,487.00)
Payment for stall renovation (5,000.00) -
Payment for transportation (12,000.00) (15,840.00
)
Net cash provided by (used in) operating ₱ 298,250.00 ₱ 393,813.00
activities
Cash Flows from Investing Activities
Payment to acquire tools ₱ (1,300.00) -
Payment to acquire equipment (1,190.00) -
Net cash provided by (used in) investing ₱ (2,490.00) -
activities
Cash Flows from Financing Activities
Cash received as investment by owners ₱ 36,425.00 -
Net cash provided by (used in) financing ₱ 36,425.00 -
activities
Net Increase (Decrease) in Cash ₱ 332,185.00 ₱ 393,813.00
Cash balance at the beginning of the period - 332,185.00
Cash balance at the end of the period ₱ 332,185.00 ₱ 725,998.00

4.6 Projected Schedule of Division of Profit or Loss

The three partners decided to divide the profit and loss equally.
Partners 2021 Projected Net 2022 Projected Net
Profit/(loss) Profit/(loss)
Partner A ₱ 110,728.34 ₱ 241,999.34
Partner B ₱ 110,728.34 241,999.34
Partner C ₱ 110,728.34 241,999.34
Total ₱ 332,185.00 ₱ 725,998.00

5. APPENDICES

5.1 Resume
JONALIE A. BASBAS

125-B Zone 1 Bagumbayan Norte, Naga City Philippines

E-mail: jonaliebasbas@gmail.com

Mobile: 09630894253

CAREER OBJECTIVE:

An organized, driven, hardworking student with an excellent educational record,

passion for health and well-being. A highly approachable, positive individual with good
people skills as well as the ability to lead, make critical decisions and work to deadlines.
To devote my knowledge, experience, skills, and energy to the treatment and well-being
of animals and to work for an institution reputed for its excellence in fostering animal
care. Seeking to pursue every avenue to achieve a career in veterinary medicine.

EDUCATIONAL BACKGROUND

Senior High School in Science Technology Engineering and Mathematics

Camarines Sur National High School – Naga

June 2015 to Present

SKILLS, ACTIVITIES, AND INTERESTS

 Proficient in speaking English, Filipino, and Bicol

 Computer Literate; Proficiency in MS Word, Power Point, video editing, and

audio editing

 Writing and Reciting Poems and Stories

  Painting

 Singing and Dancing

PERSONAL INFORMATION

Date of Birth: June 3, 2002

Place of Birth: Naga City

Civil Status: Single

Height: 5 feet

Weight: 45 kg

Citizenship: Filipino

Religion: Roman Catholic

Sex: Female

I hereby certify that the above information is true and correct according to my knowledge

JOHN JERICK B. CAVITE

Provincial Address: 073 Baras Canaman, Camarines Sur

johnrick07cavite@gmail.com

0928-568-9191

CAREER OBJECTIVE:

To secure a position that provides equal opportunities for growth, development,

training and promotion where I can contribute to the fullest all my skills to the workplace
and ensure loyalty to the company I am working with.

EDUCATIONAL BACKGROUND:

Secondary: Camarines Sur National High School

Peñafrancia Avenue, Naga City
2014 – 2021
Elementary: Naga Central School II
Jacob St. Naga City
2008 – 2014

SKILLS, ACTIVITIES, AND INTERESTS

 Can perform various computer program functions, including Photo and

Video Editing, Adobe and Microsoft Offices
 Can speak straight English, Filipino, and Bicol language.
 Art and Musically Inclined Person
 Have a good communication skill
 Able to work and adjust in working with others.
 Can work under time pressure
PERSONAL INFORMATION:
Date of Birth: September 07, 2002

Place of Birth: Camarines Sur

Civil Status: Single

Height: 165 cm

Weight: 48 kg

Citizenship: Filipino

Religion: Roman Catholic

Sex: Male

I hereby certify that the above information is true and correct according to my knowledge

JOHN JERICK B. CAVITE

5.2 Documentation
5.3 Survey Questionnaire
 Name (optional): Gender:

Age: Occupation:

Kindly rate the things listed below. 3 2 1

Excellent Better Good
1. Aesthetics and environment of our mini cafe

2. Cupcakes

3. Milk tea

4. Quality and speed of service

5. Price of products

Generally, how would you rate our mini café?

Would you like us to improve any aspect of our café to suit you better?

5.4 Result of Survey

Name (optional): Gender:
 Age: Occupation:

Kindly rate the things listed below. 3 2 1

Excellent Better Good
1. Aesthetics and environment of our mini cafe 92 8 0

2. Cupcakes 87 8 5

3. Milk tea 100 0 0

4. Quality and speed of service 90 10 0

5. Price of products 100 0 0

Generally, how would you rate our mini café?

Would you like us to improve any aspect of our café to suit you better?

5.5 Prototyping Result and Documentation

a) Documentation

b) Logo