Business Plan

[January 2023]

LucKeah Merainda
Krispy Eggcellence

S.L. Teves St., Calindagan

Dumaguete City, Negros Oriental, 6200
09979336106
Confidentiality Agreement

The undersigned reader acknowledges that any information provided by

_________________________ in this business plan, other than information that is in
the public domain, is confidential in nature, and that any disclosure or use of same by
the reader may cause serious harm or damage to ________________________.
Therefore, the undersigned agrees not to disclose it without express written permission
from ________________________________.

Upon request, the undersigned reader will immediately return this document to
___________________________.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

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 Table of Contents

Confidentiality Agreement………………………………………………………………….. 2

Table of Contents…………………………………………………………………………….. 3

I. Executive Summary……………………………………………………………………….. 4

II. Company Description……………………………………………………………………. 5

III. Products and Services………………………………………………………………….. 7

IV. Marketing Plan…………………………………………………………………………… 8

SWOT Analysis Worksheet………………………………………….…….…………........... 8
Competitor Data Collection Plan……………………………………..…………….……….. 11
Competitive Analysis Worksheet……………………………………………………….…… 12
Marketing Expenses Strategy Chart…………………………………………………....…... 14
Pricing Strategy Worksheet………………………………………………………….………. 14

V. Operational Plan………………………………………………………………………….. 17

VI. Management and Organization……………………………………………………….. 20

Management Worksheet…………………………………………………..…………………. 20
Organization Chart……………………………………………………………………………. 23

VII. Startup Expenses and Capitalization……………………………………………….. 24

VIII. Financial Plan…………………………………………………………………………… 26

IX. Appendices……………………………………………………………………………….. 36

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I. Executive Summary

We first began our LucKeah Merainda business plan as a means on earning a

profit as students. As young entrepreneurs, we are filled with passion and dedication in
achieving our dreams on starting our own business. Starting the business was a
challenge in and of itself. We had faced many difficulties as we were starting out. But in
the end, we persevered through all the difficulties and we were able to make a profit that
was worth the trouble. LucKeah Merainda is a shared proprietorship of seven (7)
entrepreneurs, all of which shared a major role in maintaining and growing the business.
The target market of the company consists of students, teachers, staff and other
administrators of Dumaguete City National High School. The company offers a product
that is both appetizing and affordable for the target market and any other customer that
may pose an interest in buying the product. Given that the products are homemade and
fresh, selling the products was a success. The estimated amount of time in selling a batch
(100 pcs.) of our product was around 1 hour, proving that the product was a hit and that
customers from all over the campus were eager to try out the product. We feel that our
company is uniquely positioned to profit in the current market. With enough time and
dedication, the company is projected to grow to a scale that will enable us to become
successful even further.

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II. Company Description

Company Description Worksheet

KRISPY EGGCELLENCE

Company Mission Statement

Krispy Eggcellence aims to revitalize and embrace one of the best delicacies that
was once in Dumaguete City National High School during the pre-pandemic years.

Company Philosophy/Values
The company lives the core values: K.R.I.S.P.Y.
• Kind
• Respectful
• Inspires and to Invigorate
• Sophisticated
• Pure
• YES to life!
Company Vision
Krispy Eggcellence envisions a company that could stand on its own against the
future markets and any possible competitor that could pose as a challenge for us. A
company that thrives and grows into a massively successful business.
Goals & Milestones
1. Krispy Eggcellence aims to start the introduction of the product to the school in
order to get the students, and other potential buyers, invested on the product.

2. We aim to create a wide variety of combinations of the product in order to please

each and every customer that would come. Changing flavors, sauces, styles would
be a start to this. Going along with the current trends is a surefire way to get a good
start to a newly opened business. This is a goal for us, to go along with what's new
and trendy in order for our product to be popular. And, to do so, we will update our
product to the current trends to appease the masses.

3. Making partnerships, inviting new investors, creating new contracts, are our utmost
priority. In return, it would enable us to open more branches, businesses, and new
target markets that would be a good source of income. All parties involve would
greatly benefit the deals and would also create more jobs for people.

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Target Market
Target markets will primarily consist of DCNHS students, together with other
potential buyers both inside and outside the school premises.

Industry/Competitors
1. The industry is consistently expanding its capabilities and accumulating
maturity. As the market continues to grow and evolve, the presence of a
substantial number of business competitors is expected to provide a significant
contribution to the expansion of the industry. Any possible alliances that are
seeking to participate in this initiative should have norms and conventions that are
comparable to those that are presently in place.

2. In order for our company to capitalize on the anticipated shifts and developments
in the market, we are going to build a match between what is currently on top and
what would permit a fantastic engagement with potential customers. This includes
making adjustments to the appearance and functionality of the product, as well as
the packaging, in order to entice and exceed customer’s expectations, and might
then acquire more new buyers.

3. In order for the Krispy Eggcellence to survive and succeed with other businesses,
it will need to implement strategies such as gaining control of technology, providing
consumers with goods and services of a high quality, engaging customers with the
guarantee and dedication we have to embodying our core values. This will enable
it to open the door to an opportunity that will allow it to triumph over other
businesses.

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III. Product and Services:
KRISPY EGGCELLENCE
Product/Service Idea
A delicious snack for the people that everyone would love and would greatly enjoy.
Special Benefits
Affordable and readily available in school to satisfy everyone’s hungry stomach
and also is healthy as it is egg-based.
Unique Features
Inspired by a previous snack that is of the same type. To revive it in school and to
introduce it to new students that have not tried it before, letting them experience its unique
flavor.
Limits and Liabilities
The product’s stock is limited to the stock of the supplies (e.g. fresh eggs, flour,
etc.) thus rationalizing the prices to make it profitable. There is also a chance of buying a
bad or spoiled egg, thus, making it a loss in profit and making it a liability.
Production and Delivery
The product is produced in-home and brought to the school for selling. If orders
were to come from outside school premises, free delivery would be applicable to those
customers. For the packaging of the product, since orders and sales mostly come from
inside the school premises, plastic cups were used along with paper plates, both of which
have a label of the company. For orders that come from outside of school premises,
plastic Tupperware will be used will be used as the packaging method.
Suppliers
Supplies for the product’s ingredients are bought from local vendors at the city’s
public market or other venders that are within the city.
Intellectual Property Special Permits
The ownership for this product is a shared one as it is an investment from a group
of entrepreneurial stakeholders that are willing to go through with this idea.
Product/Service Description
The product is a delicious snack that would for sure make anyone like it. It is a
hardboiled quail egg that’s battered and breaded with breadcrumbs then deep fried to
golden perfection. Its crispiness and deliciousness would captivate the customers.

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IV. Marketing plan:
Declaration:
We, entrepreneurs, hereby declare that the marketing plan is our original work. It
is submitted in partial fulfillment of the curriculum for the subject of Entrepreneurship in
the First Semester at STEM 12- Ramos.

Barriers to Entry:

1. The lack of initial funding was the primary obstacle we faced when developing our
product. As young entrepreneurs, we require a particular budget to pay for the
initial production costs to get this product to the market in the first several weeks.
Despite the product's seeming simplicity, funding is still required. It is therefore a
time commitment to generate sufficient revenue to cover fixed costs. Up until then,
we will have sufficient funds to keep operating.

2. The second barrier is the economic scale. Dumaguete city's rising ingredient
prices pose a serious threat to the output. Our research led us to conclude that the
ideal place to shop for ingredients is a local, independently owned shop, or else to
negotiate a discount on the needed materials. On the other hand, we can reach
technical scales by increasing both the speed and scale of our production process.
We believe efficiency can be improved by breaking down the many steps of
production into individual jobs.

Threats and Opportunities:

• Changes in government regulations

• Changes in technology
• Change in the economy
• Change in your industry

SWOT Analysis Worksheet

Strengths Weaknesses Opportunities Threats

Product/ Giving back

Poor financial Partnership with Raw materials
service opportunities to
performance other business cost may vary
offering the society

Shares the No
same values as Can create way partnerships
Minimal
Brand/ customers, and to communicate
marketing
marketing offers the best and socialize the - competitors
experience
quality on the costumers may introduce
market better products

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 Staffs are work
Building long Time
ethic focused Minimal
term relationship management
Staff/ hour working
with delighted can be a major
Adaptable to experience
staffs issue
change quickly

Awareness of Multi-level
Operations/ internal and dependency Growing e- Not enough
management external and ineffective commerce retail outlets
costumer needs communication

Offering
The market
Unique product additional
Shortage of may ask more
Market and good services and
financing improvement
reputation discounts to the
of the product
market

Can any of your strengths help with your weaknesses or combating your threats? If so,
please describe how below.

By pinpointing our areas of improvement, we may work toward strengthening

those aspects that have previously been our weak points. Our strengths will be our source
of enlightenment to develop our weaknesses through thinking positivity in acquiring our
specific goals. That way, we'll be ready to deal with the impending dangers facing
our company.

Based on the information above, what are your immediate goals/next step?

We refuse to dwell on the shortcomings of our company. Instead, the company will
be focusing on developing the areas where our company excel. The next thing we will do
is create a contingency plan in case any of the ongoing dangers materialize, and also so
that we can provide our customers what they want in the event that they demand more
innovation of our product right away.

Based on the information above, what are your long-term goals/next steps?

After the next year or two, we hope to have diversified our product and service
offerings and expanded into a new geographical market. Also, growing the number of
our team members is a long-term objective since, as our company develops, so will the
volume of its output.

Product/Service Features and Benefits

Krispy Eggcellence is a hard-boiled egg that has been battered with breadcrumbs
and deep-fried until it is a beautiful golden brown and crisp. This product is unique

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because it is served with our own sweet and sour sauce, which was created in-house and
is a huge part of what makes it so delicious and appealing. With only 14 calories per
serving, a quail egg is an excellent source of several essential nutrients. It is an excellent
source of vitamin B12, selenium, riboflavin, and choline, and even a small amount of iron.
Because selenium and riboflavin aid in the metabolism of food into energy, the product is
healthier and more beneficial to consumers.

Product Delivery:

Our product can be delivered through meet ups or door-to-door delivery.

Warranty/Guarantee:

The company is giving the costumer assurance in providing the best quality of the
product that they expected. We guarantee them the good services so that their payment
will be worth it.

Service Contracts:

Please review the accompanying service agreements and letter if you are
interested in joining our team. In a nutshell, we're looking for hardworking people of all
ages (15 and up) to join our team. There are people that can help with anything from
customer support to production to delivery.

Refund Policy:

No refund policy.

Target Costumer

The target market of the product are the senior high students, junior high students,
teachers of Dumaguete City National High School, since they are the ideal costumers
that our product and services suit to our offerings.

Demographic

For Customer:

1. Ages: 14-20 years old

2. Gender: masculine, feminine, common, and neuter.
3. Location: Dumaguete City National High School
4. Income: School Allowance
5. Occupation: Student
6. Educational level: Junior High and Senior High School Student

For Businesses:

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1. Industry: Food Service
2. Location: Dumaguete City National High School
3. Size: Small Business
4. Stage in business: Startup
5. Annual Sales: None

KEY COMPETITORS

Competitor Data Collection Plan

Krispy Graham
Product CheeseMozza Coffee Jelly
Eggcellence Bites
₱20.00 per
Price ₱10.00 each ₱15.00 each ₱8.00 each
cup
Krispy CheeseMozza It is lively and Made out of
Eggcellence is are deep fried chewy, and crushed
special snacks also gives a graham
because it is composed of bitter but a crackers,
served with sliced cheese sweet taste at condensed
our original coated with the same milk and all-
egg, flour and purpose
recipe of a time. Some
breadcrumbs. cream.
sweet and describe it as
This is a snack Served with
sour sauce that will also creamy, but toppings that
that makes the boost your others say it contains
product tastier intake of has a fluffy additional
and highly calcium, a texture to it. It flavor
pleasing. mineral really just
essential for depends on
Its ingredients bone strength
Benefits/features contain (quail the individual.
as well as The mixture of
egg) loathed muscles and
with high coffee and
nerve function. sugar creates
quality
proteins, a tasty
vitamins, combination of
minerals, good milky and
fats and sweet but also
various trace lovely bitter at
nutrients, the same
making the time.
product
healthier and Helps you to
beneficial to speed up your
the market. metabolism.

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 The product CheeseMozza This product is Due to the
has a great is also a new something greater
chance of player in the that does possibility of
success and market. If relatively well ingredient
profitability as handled within the price
its taste is correctly, it profiting increases, the
unlike any could become aspect. It has product
other. Its price a big a big chance already on the
Size/Profitability
is very much competitor for to turn in a market does
within range of us, as cheese- large profit in not always
the students’ related the current last.
daily products market.
allowance, usually sell
thus making it well.
very
affordable.
In advertising,
the company
prefers online
and print for it Through
Through social Through
Market Strategy will be more social media.
media. social media.
convenient for
the target
market to
access easily.

Competitive Analysis Worksheet

Competitor Competitor Competitor Importance to

Factor Me
A B C customer

Products S S S S 1

Price S W S W 1

Quality S S S S 2

Selection S S S S 2

Service S W S S 1

Reliability S S S S 1

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 Stability S S W S 1

Expertise W S S S 2

Company S S S S 2
Reputation

Location S S S S 2

Appearance S S S S 2

Sales Method S S S S 2

Credit Policies S S S S 2

Advertising S S S S 2

Image S S S S 2

In this, the company can identify the business company of the competitor as well
as this company's business. The worksheet above shows the strengths (S) and
weaknesses (W) of the company that can determine the advantages and disadvantages
of the company. Apparently, the company's business shows strengths in many factors
mentioned above as it based on our survey. It indicates that the business is also
necessary to the customers.

Positioning/Niche
Krispy Eggcellence provides nutritional value that benefits everyone and gives a
nostalgic feeling of the previous product before with a unique flavor for the new ones
schooling here (DCNHS) who need some hunger pangs or snacks because it is affordable
and readily available within the school to satisfy everyone’s hunger.
How will you market your product/service?
In advertising, the company prefers online, personal interaction and print materials
because it is convenient for the target market and it can be accessed easily by the
consumer at least once a week. The marketing for this business may include social media,
print marketing materials, referrals, and the like, as this kind of marketing is common for
beginners and can attract customers in the market.
The image that the company wants to portray is a touch of orange color as it
increases cheerfulness, youthfulness, creativity and affordability in business. With this
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color, it represents something affordable yet of reasonable quality, exciting and
youthfulness in marketing; it grabs the attention of the students; and it demonstrates
stellar customer service on a budget. The company aims at something that is eye-
catching, on a budget and simple to the market.

PROMOTIONAL BUDGET
Marketing Expenses Strategy Chart

Target Market 1 Target Market 2 Target Market 3

One-time Expenses ₱0.00 ₱0.00 ₱0.00

Monthly Expenses ₱0.00 ₱0.00 ₱0.00

Labor Costs ₱50.00 ₱50.00 ₱50.00

PRICING

Pricing Strategy Worksheet

Krispy Eggcellence

The company will employ a cost-plus pricing strategy.

₱394.50 (Total Expenses)

× 0.10% (Percentage of Gain)
₱39.45
+₱394.50
₱433.95
× 0.10% (Percentage of loss)
₱43.395
To solve for the product price:
• ₱394.50 + ₱39.45 + ₱43.395 = ₱477.345
• ₱477.345 ÷ 50 = ₱ 9.5469 ~ ₱10.00

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 The "cost-plus" pricing strategy is a very simple pricing strategy where the
company decides how much extra it will charge for an item over the cost. The company
will have a 10% markup for the product, and the cost-plus price is ₱10.00. In some ways,
the pricing strategy may not affect the positioning of the business in the market due to its
competitors in a particular market as well as the customer's perception. Take a look at
the competitors' data collection plan; it shows that the company's business price is
somewhat near or low as the other competitors' prices because most of these companies
are using the cost-plus pricing strategy, which is one of the most basic pricing strategies
that a beginner can have. The price that the company has is affordable, especially for
those people who are on a budget, because this kind of pricing offers a great chance for
them to save money.
The company's business will offer the market a product that the market needs and
wants. This will give the market different features, such as different variations of the sauce
of the product and it also has a nutritional value that makes it more pleasing to the
customers.
Location or Proposed Location
The first Krispy Eggcellence store is planned to open in the Dumaguete City
National Highschool Canteen. The store will be located on congested student routes and
near purchasing facilities in order to capture customers on their way to or from class,
while they are out for lunch, or on a break. Dumaguete City National Highschool Canteen
is the most convenient location for customers. It is easily accessible to all students, and
many potential customers pass through. There are numerous benefits to locating our
company there.
Distribution Channel
We have agreed to use direct sales as our distribution channel when selling our
product. This method will reduce our expenses and allow us to be more attentive to our
sales progress
12- month sales forecast
Month Products sold Price per piece Total Revenue
January 400 pcs ₱10.00 ₱4,000.00
February 400 pcs ₱10.00 ₱4,000.00
March 400 pcs ₱10.00 ₱4,000.00
April 400 pcs ₱10.00 ₱4,000.00
May 400 pcs ₱10.00 ₱4,000.00
June 400 pcs ₱10.00 ₱4,000.00
July 400 pcs ₱10.00 ₱4,000.00
August 400 pcs ₱10.00 ₱4,000.00
September 400 pcs ₱10.00 ₱4,000.00
October 400 pcs ₱10.00 ₱4,000.00
November 400 pcs ₱10.00 ₱4,000.00

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December 400 pcs ₱10.00 ₱4,000.00
TOTAL
FORECASTED ₱48,000.00
REVENUE

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V. Operational Plan

Production
Ingredients Needed Quantity /size Price per piece/pack Total Cost
Quail Eggs 50 pcs. ₱90.00 ₱90.00
Flour ¼ kg. ₱12.00 ₱12.00
Breadcrumbs 500g ₱73.00 ₱73.00
Oil 2 Flats ₱28.00 ₱56.00
Brown sugar ¼ kg. ₱23.00 ₱23.00
Ketchup 1 Sachet ₱5.00 ₱5.00
Cornstarch ½ kg. ₱15.00 ₱15.00
Soy sauce 1 Sachet ₱7.25 ₱7.25
Eggs 5 pcs. ₱7.00 ₱35.00
Butane 1 Bottle ₱20.00 ₱20.00
Sticks 1 Bundle ₱10.00 ₱10.00
Vinegar 1 Sachet ₱7.25 ₱7.25
Garlic 1 Bulb ₱5.00 ₱5.00
Onion 1 Bulb ₱10.00 ₱10.00
Chili Peppers 1 Pack ₱10.00 ₱10.00
Cups 1 Pack ₱16.00 ₱16.00
TOTAL ₱394.50

The total cost of our product is ₱394.5. We have made 50 products in that cost, to
divide the total cost by the product we made it would be ₱7.89 per piece.
Production method:
The process of creating Krispy Eggcellence goes through several steps, which can
be shown using the flow chart. The following are the general processes involved in our
product method: planning and purchasing ingredients, preparing ingredients, cooking,
selling, and delivering.

Planning and purchasing the ingredients needed including the quantity,

cost, total product to be made and the possible profit.

Preparing the ingredients; mixing and adding seasonings.

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 Start in cooking; Boiling to frying the breaded quail eggs.

Advertising and selling our very own Krispy Eggcellence.

Delivering our products to our valued customers.

Our product can be purchased online and physically. We have our Facebook page
and contact numbers wherein our customers can contact us there and order virtually.

Quality Control
We must first comprehend the specifications in order-to-order components that
meet the specified quality standards. While finding the cheapest providers may save
money, it may fall short of their quality assurance standards. As a result, before beginning
the ordering process, it is critical to define the key qualities of materials. When the
ingredients arrive, we should inspect the shipment to confirm that all products meet our
standards. If the delivery falls short of expectations, the corporation should return the
items to the supplier.
Set a timer to boil the quail egg. It is critical to keep quail eggs perfectly boiled.
When frying the quail eggs with breading, we take care to ensure that they are well cooked
and golden brown. We must ensure that each product retains its taste and physical
appearance over time.
Location

Our location is around 20 × 40 sqm in size. It is a retail establishment. Anyone may

sell, but large stores are not permitted. This location is near purchasing facilities, as well
as a student and staff route. There are no rental fees, but we must spend a small amount
to decorate our mini stall. The use of electricity and water is not required in the selling
and delivering stage of our product.

Legal Environment
There is no need for a license or permits. We are in the process of acquiring our
own brand name. We do not have any insurance coverage. There are no environmental,

18
health, or workplace regulations that could have an impact on our operation. There are
no unique restrictions that may have an impact on our business. There are no bonding
requirements.

Suppliers

Since our product is ordered from a quail egg provider in Banilad-Bacong,

Dumaguete City, we will order approximately 50 quail eggs in our opening, which will cost
₱90.00 in inventory each time we order from them. They only accept cash payments and
no credit and make delivery in the early morning. The quail egg seller is a family business
that grew gradually until they decided to expand and provide entrepreneurs in the city
with their products. We also anticipate any supply constraints and short-term delivery
issues. Instead of panicking in such a situation, we will take the initiative and look for quail
eggs in the market that are both affordable and of high quality. Yes, they are a touch more
expensive than our first option. We anticipate that the cost of supplies will fluctuate as a
result of the current economic situation. If the cost of suppliers rises, we will raise the
price of our product by a small amount. The payment terms of our supplier would be every
delivery day.

Credit policies

LucKeah Merainda Company only accepts cash payments and does not accept
credit. We don’t have any credit policies.

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VI. Management & Organization

Management Worksheet

Rain Ashly Infante defines lasting

leadership as character, not capacity or
competency. She's good in
communicating as well as sharing her
plans and ideas to her members. She
makes our team work very well and in
order. Her visions on our proposed project
are exquisite as she sees the bigger
picture of our team as we work within her
head, what it's capable of, and what it will
take to get there.

Kevin Francisco L. Abiera is one of our

team members whose definitely good in
creating wonderful ideas. He creates and
share his opinions to his teammates. He's
hardworking and I know we need him in
our team because of his skills. A truly
Bio/s reliable member who’s responsible and
shows integrity by completing tasks and
showing up even when a leader isn’t
looking over their shoulder or offering
praise.

Divine Grace Du knows how to act right

especially in times of difficulties. Her ability
to handle difficult problems and enables
her to surpass situations whereas she can
think solutions easily in critical situations
would be a great characteristic in our team
to add. Her positivity and happy aura give
smiles to everyone she encounters.

Sharmen E. Omandam defines success in

perseverance. I see her as a calm yet
hardworking person in our group. She is
able to finish her works on time and shares
ideas to her teammates. She's good in
communicating and her honesty in sharing
her opinions is a good character she
shows. She's polite and still remains calm

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 in a crisis. Is passionate in doing her works
and gives her best.

Leahna Jane G. Macias brings innovative

ideas and suggestions forward that will
impact positively as a great asset in the
team. She's full of hope and is confident
about the future or the successful outcome
of something. When someone is faced with
a tough challenge or a roadblock, she
always volunteers to take action. She's
also active in fulfilling her duties.

Lucy May V. Baritua always sees the

accomplishments and what they can do to
continue to make herself better. As she
receives acknowledgements, she takes it
as a motivation to also do her best in
everything. She listens to feedbacks as
well as the opinions of everyone. She's a
teammate who is great under pressure.
She offers new and fresh ideas and new
perspective

Brianna Marie Chiong is a competitive girl,

but knows how to respect someone's
opinion. Her artistic skills enable the team
to create designs that would intrigue
someone’s interests. She spreads
happiness in us and that will help us to
bloom due to her high confidence
especially in entertaining others.

For instance, if our team would lack in

management/experience, our team will
hold a meeting for us to gather and share
our thoughts as a team. We will discuss
on what we can do and what we missed
to fill the gaps we lack as a team. In
Gaps in Management and Experience experience, we can share our insights to
each other so we will know what to do to
improve. We'll find videos on how to deal
without experience, also, ask related

21
 information that we can apply to
ourselves.

In dealing with the lack of finance, our

company can hire and seek a CFO or
retain an accountant by hiring an
executive search firm. Hiring an executive
search firm to find a CFO would save us
time and stress. The staff at an executive
search firm already has thorough
knowledge of the industry and may
already know candidates who are
qualified for the position. Our company
can also do this by our industry
connections, but if our team doesn't have
a wide network of contacts, we can try
networking online. Evaluating also the
options is a better help especially in times
of financial difficulties. If the search for a
new CFO has been fruitless, it’s time to
think about another options. If our
company might not need a full-time
professional CFO, we'll try to look for part
time candidates or an outside firm.
Advisors Mrs. Novalyn T. Ramos
(Entrepreneurship Teacher)

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Organizational Chart

LucKeah Merainda Company

Rain Ashly Infante

Group Manager/Salesperson

Divin
Kevin Francisco Abiera Brianna Marie Chiong
Sales Manager/Salesperson Production manager/Salesperson

Leahna Jane Macias Sharmen E. Omandam

Assistant Sales Assistant Production
Manager/Salesperson Manager/Salesperson

Lucy May Baritua Divine Grace Du

Assistant Sales Assistant Production
Manager/Salesperson Manager/Salesperson

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VII. Start-Up Expenses and Capitalization

LucKeah Merainda Company

Sources of Capital/Investors

Sources of Capital/Investors Amount

Rain Ashly Infante ₱70.00
Brianna Marie Chiong ₱70.00
Leahna Jane Macias ₱70.00
Divine Grace Du ₱70.00
Kevin Francisco L. Abiera ₱70.00
Lucy May V. Baritua ₱70.00
Sharmen E. Omandam ₱70.00
TOTAL ₱490.00

Capital Equipment/Ingredients List

Ingredients Amount
Chili Peppers ₱10.00
1 Bundle Sticks ₱10.00
500g Breadcrumbs ₱73.00
2 Flat Oil ₱56.00
50 pcs. Quail Eggs ₱90.00
¼ Flour ₱12.00
½ Cornstarch ₱15.00
¼ kg. Brown Sugar ₱23.00
1 Sachet Soy Sauce ₱7.25
1 Sachet Ketchup ₱5.00
5 Eggs ₱35.00
1 Pack (50 pcs/pack) Cups ₱16.00
1 Packs Vinegar ₱7.25
1 Bottle Butane ₱20.00
1 bulb Onion ₱10.00
1 bulb Garlic ₱5.00
TOTAL ₱394.50

Advertising and Promotional

Load ₱50.00
Printing ₱70.00
Other Expenses ₱50.00
TOTAL ₱170.00

24
Owners:

• Rain Ashly Infante

• Kevin Francisco L. Abiera
• Brianna Marie Chiong
• Divine Grace Du
• Sharmen E. Omandam
• Lucy May V. Baritua
• Leahna Jane G. Macias

Opening Day Balance Sheet

LucKeah Merainda Company

Assets

Current Assets

Cash on hand ₱500.00

Inventory ₱170.00
Others ₱50.00
TOTAL ₱720.00

Fixed Assets

Machinery & Equipment ₱150.00

Others ₱50.00
TOTAL ₱200.00

Other Assets

Transportation ₱100.00
Others ₱50.00
TOTAL ₱150.00

25
VIIl: Financial Plan
12-Month Profit and Loss Projection

Luckeah Merainda Company

The company’s product named Krispy Eggcellence is worth ₱10.00 each.

First Day (November 28, 2022)

On the first day, the company sold 50 pieces of Krispy Eggcellence.

Sales: ₱500.00
Profit: ₱105.50
Cost of all ingredients and materials needed: ₱394.50

Second Day (December 5, 2022)

On the second day, the company sold 103 pieces of Krispy Eggcellence.

Sales: ₱1,030.00
Profit: ₱453.00
Cost of all ingredients and materials needed: ₱576.75

Third Day (December 12, 2022)

On the third day, the company sold 100 pieces of Krispy Eggcellence.

Sales: ₱1,000.00
Profit: ₱608.25
Cost of all ingredients and materials needed: ₱391.75

Total sales: ₱2,530.00 (Days 1-3)

Total profit: ₱1,167.00 (Days 1-3)
26
Income and profit:

1st Day ₱605.50

2nd Day ₱1,483.25
3rd Day ₱1,608.25
4th Day ₱3,697.00

In one month, the company will sell its product for four times:
• 1x4=4
There are 12 months in 1 year:
• 4 x 12 = 48
Forecasted revenue

Php 10.00 Php 1,000.00

× 100 pcs. × 4 days
—————— ————————
Php 1,000.00 - Daily Revenue Php 4,000.00 - Monthly Revenue

Php 1000.00 Php 1,000.00

× 1 day × 48 days
——————— ————————
Php 1,000.00 - Weekly Revenue Php 48,000.00 - Yearly Revenue

Return on Investment
(Net income/cost of investment) x 100 = ROI

Daily Revenue
(₱1000/₱70.00) 100 = ₱1,428.59

Weekly Revenue
(₱1000/₱70.00) 100 = ₱1,428.79
Monthly Revenue

27
(₱4000/₱70.00) 100 = ₱5,714.285

Yearly Revenue
(₱48,000/₱70.00) 100 = ₱68,571.428

Assume that the company will sell Krispy Eggcellence for 12 months/year:

No. of Days in selling the No. of pieces of Krispy Eggcellence that will be
product made

1st Day 50 pieces

2nd Day 103 pieces

3rd Day 100 pieces

4th to 48th day 100 pieces

Assume that the company will have a profit of ₱608.25 on the 4th to 48th day of selling
the product:

No. of Days in selling the

Profit
product

1st Day ₱105.50

2nd Day ₱453.25

3rd Day ₱608.25

4th to 48th day ₱608.25 x 45 days = ₱27,371.25

TOTAL ₱28,538.25

The Luckeah Merainda Company will have ₱29,196.00 profit in 12 months.

28
For the first day up to the third day of making Krispy Eggcellence:
Expenses: Expenses for Equipment and Ingredients
Quantity Items/Ingredients Total
250 pcs. Quail Eggs ₱450.00
23 pcs. Eggs ₱161.00
1.5 kg. Breadcrumbs ₱211.00
6 flats Oil ₱156.00
3 pcs. Soy Sauce ₱21.75
¼ kg. Brown Sugar ₱23.00
2 ¼ kg. Flour ₱92.00
½ kg. Cornstarch ₱15.00
1 sachet Ketchup ₱5.00
5 pcs. Vinegar ₱36.25
3 bulbs Garlic ₱15.00
5 bulbs Onion ₱50.00
1 pack Chili Peppers ₱10.00
1 bundle Sticks ₱10.00
3 packs (50 pcs/pack) Cups ₱48.00
1 pack (50 pcs.) Paper Plates ₱19.00
2 bottles Butane ₱40.00
TOTAL ₱1,363.00

The potential financing sources of Luckeah Merainda Company are all from the
members. The company is willing to collaborate with any groups that have good records
as well.

3-Year Profit and Loss Projection

Assume that the company will sell Krispy Eggcellence for 3 years.

In one month the LucKeah Merainda Company will sell its product for four times.
• 1x4=4
There are 12 months in 1 year
• 4 x 12 = 48
In three years
• 48 x 3 = 144

29
 No. of Years in selling the
Profit
product

1st Year ₱28,538.25

2nd Year ₱29,169.00

3rd Year ₱29,169.00

TOTAL ₱86,939.25

The Luckeah Merainda Company will have ₱86,939.25profit in 3 years.

CASH FLOW PROJECTION

Cash at all times:
Total sales from the first until the third day of selling: ₱2,530.00
Projected cost:

Equipment/Ingredients List

Quantity Items/Ingredients Total

250 pcs. Quail Eggs ₱450.00
23 pcs. Eggs ₱161.00
1.5 kg. Breadcrumbs ₱211.00
6 flats Oil ₱156.00
3 pcs. Soy Sauce ₱21.75
¼ kg. Brown Sugar ₱23.00
2 ¼ kg. Flour ₱92.00
½ kg. Cornstarch ₱15.00
1 sachet Ketchup ₱5.00
5 pcs. Vinegar ₱36.25
3 bulbs Garlic ₱15.00
5 bulbs Onion ₱50.00
1 pack Chili Peppers ₱10.00
1 bundle Sticks ₱10.00
3 packs (50 pcs/pack) Cups ₱48.00
1 pack (50 pcs.) Paper Plates ₱19.00

30
 2 bottles Butane ₱40.00
TOTAL ₱1,363.00

All the members of the Luckeah Merainda Company are the sources of capital
(Investors). Each member of the company had invested ₱70.00 for the business.

Sources Capital / Investors

Investors Amount
Rain Ashly Infante ₱70.00
Brianna Marie Chiong ₱70.00
Kevin Francisco L. Abiera ₱70.00
Divine Grace Du ₱70.00
Leahna Jane G. Macias ₱70.00
Lucy May V. Baritua ₱70.00
Sharmen E. Omandam ₱70.00
TOTAL ₱490.00

● There is ₱490.00 cash for our start-up business.

● The cash worth ₱490.00 was used to buy all the materials/equipment and the
ingredients needed for making the product on the first day.
● The business has ₱490.00 cash on hand at any given time.

No. of Days of making Cost of all the materials

Sales
and selling and ingredients needed

1st Day ₱394.50 ₱500.00

2nd Day ₱576.75 ₱1,030.00

3rd Day ₱391.75 ₱1,000.00

The money from the investments were kept. Some of the company’s income on
the first and second day of selling Krispy Eggcellence were used to buy ingredients for
the third day of making the products and the money left were also kept so the LucKeah
Merainda company’s business won’t run out of money.

31
PROJECTED BALANCE SHEET
ASSETS
Current Assets

Cash on hand ₱24,000.00

Inventory ₱8,160.00

Others ₱2,400.00

TOTAL CURRENT ASSETS ₱34,560.00

Fixed Assets

Machinery & Equipment ₱125.00

Other Assets ₱50.00

TOTAL FIXED ASSETS ₱175.00

Liabilities

Notes Payable N/A

Student Loans N/A

Other Liabilities N/A

TOTAL LIABILITIES N/A

Other Assets

Transportation ₱2,880.00

Others ₱50.00

32
 TOTAL OTHER ASSETS ₱2,930.00

The estimated financial condition of the company’s business ate the end of the first
year is good. The LucKeah Merainda Company doesn’t have liabilities like notes payable,
student loans, and other liabilities, but have assets that is shown above.

Break-even Analysis
Fixed cost= ₱450.00
Selling price= ₱10.00
Variable Cost= ₱8.00

BE = FC ÷ ( SP- VC)
• Break-even = Fixed cost ÷ (selling price-variable cost)
• BE (unit) = 450 ÷ (10-8)
= 225

BE (₱) = Units x selling price

= 225 x ₱20.00
= ₱4,500.00

BREAK-EVEN CALCULATIONS

Cost of all ingredients and materials

INCOME
needed:

1st Day: ₱394.50 ₱500.00

2nd Day: ₱576.75 ₱1,030.00

3rd Day: ₱391.75 ₱1,000.00

33
 On the first day of making the product, the company spent ₱394.50 for all the
ingredients and materials needed. The company had an income of ₱500.00 and a profit
of ₱105.50.
On the second day of making the product, the company spent ₱576.75 for all the
ingredients and materials needed. The company have accumulated an income ₱1,030.00
and a profit of ₱453.25.
On the third day of making the product, the company spent ₱391.75 for all the
ingredients and materials needed. The company had an income of ₱1,000.00 and a profit
of ₱608.25.

The company doesn’t have any losses. The company spends more money for the
materials and ingredients needed for the first day than the third day of making the
product.
The company always has a profit from the first up to the third day of selling the Krispy
Eggcellence. ₱1,657.00 is the total amount of profit that the LucKeah Merainda
Company has. The total capital is ₱490.00 added with the total income which is
₱1,167.00, sums up to the total profit gained by the company.
LucKeah Merainda Company’s business has a positive outcome.

USE OF CAPITAL
● The LucKeah Merainda Company’s members invest ₱70.00 each.
● The total of investments: ₱490.00
● The ₱490.00 was used to buy all the ingredients and equipment needed to make
the product named Krispy Eggcellence for the first time.
● The company expected the money to grow so all the company members decided
to sell 50 pieces of the product on the first day, 103 pieces on the second day and
100 pieces on the third day to make sure that all the Krispy Eggcellence will be
sold out and LucKeah Merainda Company’s business will work well.
● The money left from the investments were kept. The income from the first day and
second day of selling the product were used to buy the ingredients that were
lacking on the third day of making the product. The company only spent money for
the equipment and materials needed.
● The company budgeted the money properly, some were kept and some were
spent. The money that was kept was being used for the materials/ equipment and
other future purposes.
● Later on, the total profit was divided equally to all the members of LucKeah
Merainda Company.

34
FINANCIAL ANALYSIS

November 8,
Dec. 5,2022 Dec. 12,2022 TOTAL
2022

No. of
50 103 100.00 253
Products sold

Price ₱10,00 ₱ 10.00 ₱10.00 ₱10.00

TOTAL
₱500.00 ₱ 103.00 ₱ 1,000.00 ₱2,530.00
SALES

Net profit margin = (net profit/ total sales) (100%)

= (1,074/ 2530) (100%)
= 42.45%
DIVIDING THE SHARES
Shares of every member = Total profit including the investments of all the members

Total profit ₱1,167.00

Total investment ₱490.00

TOTAL ₱1,657.00

At the end of the first and the third day of selling Krispy Eggcellence, three
members of LucKeah Merainda Company received ₱ 219.00 and four members received
₱218.00.

35
IX: Appendices
Advertising/Marketing Materials
The LucKeah Merainda Company’s advertising / marketing materials are posters,
social media/internet.

List of Equipment
The equipment that the company used in making the product are:
• Butane stove
• Cooking pots
• Frying pan
• Spatula/ tong
• Bowls
• Measuring cups and spoons

Market Research Studies

Research studies of the market are conducted through on the surveys inorder to
gain a better understanding of the market.

List of asset/s that can be used as collateral

• Cash on hand

36