Province of Misamis Oriental

MUNICIPALITY OF VILLANUEVA
Republic of the Philippines

PROJECT BRIEF

Proponent ACP/Proponent Beneficiary : San Roque Village – Dayawan – Tri Motor

Operator Drivers Association

Proposed Business/Project : Rice Trading Store
No. of Beneficiaries : 40 Beneficiaries
Total Project Cost
 DOLE Support :
 Proponent ACP/Proponent
Beneficiary :
 Others :
Total :
Contact Person : Julito Lagawan/President
Contact Number : 0935-016-7015

II. EXECUTIVE SUMMARY

Marketing Aspect

San Roque Village – Dayawan – Tri Motor Operator Drivers

Association will engage in a rice trading business project in order to meet the
demand and to provide the necessity of rice products for every individual and family
in the community. The rice trading business project guaranteed a quality and
affordable rice products that could be purchase anytime in need. The business
customers are the members of the association and the neighbors nearby. The
business project also opts to engage in different product promotion approach in
order to adopt the changing market trend. With this, the number of customers will
expect to expand and sales will be maintain and elevate from time to time.
 Production Aspect

The business project is a new livelihood business which will be owned

and operated by the association and will be managed by all the members of the
association. In order to accommodate the demand of the customers, the association
will replenish the stocks every month to ensure the availability of stocks when
demand arises.

Management Aspect

To ensure that the business is productive and competitive, a project

management team will be established by selecting trustworthy individuals among its
members in order to oversee the whole business operation. The project
management team is also responsible in the implementation of policies in the
business operation. Policies such as transparency, financial report, evaluation,
product information and availability, and marketing are the main focus to make the
business successful.

Financial Aspect

Currently, the association relies only on the funds collected from the
members through membership fee, monthly dues and payment for penalties. The
fund will be utilized to purchase supplies, tools and equipment that are necessary to
the business operation. The association also welcomes other sources of funds from
different government agencies or private organizations as an additional capitalization
and assures its proper utilization in order to acquire more materials for the
improvement and expansion of the whole business project.

Collaboration of Stakeholder’s Commitment

San Roque Village – Dayawan – Tri Motor Operator Drivers

Association commits to its stakeholders a good line of communication and
harmonious relationship in order to have a better business transaction. The
association also commits to handle with care whatever assets and assistance
provided by a particular government agency and assures that it will be managed well
for the sustainable and stable growth of the association and its beneficiaries.
III. ORGANIZATION/ACP/PROPONENT OVERVIEW

History, Structure and Organization

San Roque Village – Dayawan – Tri Motor Operator Drivers

Association was organized and formed on January 1, 2023 at Barangay Dayawan
San Roque Village Covered Court. It is composed of 40 members who are all male.
It also composed of 5 officers from president down to auditor. The association was
formed for the purpose of establishing an organization in which all the tri motor
operators and drivers in Barangay Dayawan can be a member. The association is
legally registered to the Department of Labor and Employment on July 18, 2023 with
certificate registration number RO10 – MISORPO – WA – 7 – 2023 – 00525.
Currently, the association is still thriving and will pursue its goals and commitment to
showcase the skills and enhance the quality of life of its members.

Strategic Direction

The association aims to become a business enterprise that could

benefit both its members and its stakeholders. It aims to provide affordable and
quality rice products which essential for the day to day meal of every individual and
family in the community. Moreover, the association strives to maintain and add the
number of stocks from time to time to accommodate the growing number of demand
from the consumers.

People and Relevant Skills and Expertise

The members of the association specifically those in the project

management team are all capable and can manage the rice trading business project
since they have the experience in vending. The members can easily market and sell
the rice products due to the fact that rice is highly in demand in the community. The
members can also promote different brands of rice products to offer consumers with
a wide variety of rice products.

Address/Location

The business project will be established at San Roque Village of

Barangay Dayawan where the association is currently located.
IV. INTRODUCTION

Background Information

Through the years, Filipinos are widely known as rice consumers. Rice is a
major component in every Filipino diet. Breakfast, lunch and dinner are not complete
when rice is not present and not being served. Rice also produces nutrients such as
calories and carbohydrates which is essential in the body for everyday activity.
Today, rice is still a major commodity among Filipinos and the constant grow of the
population requires additional supply of rice to accommodate the growing population.
However, despite the rising demand, supply of rice is abundant since the country still
engaging in rice farming and production. For more years rice will still be a major
commodity and will be continually consume by its consumers.

Purpose and Objectives of the Proposed Business/Project

1. To establish a business enterprise where it can provide the

necessity of rice products to its customers.
2. To develop entrepreneurial skills among the members that could
improve them individually and the association as a whole.
3. To provide members with a livelihood in order for them to earn
additional income.
4. To help the members uplift their financial and economic condition.
5. To generate income for the benefit and betterment of the
association.

Direct and Indirect Beneficiaries

The direct beneficiaries of the project are the members of the association
while the indirect beneficiaries are the families of the members of the association.

Brief Description of the Proposed Business

The rice trading business project was realized due to the reason that the
association notices the high demand of rice products in San Roque Village of
Barangay Dayawan. The association also identifies San Roque Village as a potential
market for such products because it’s a highly populated Village which is a sign of a
large quantity of costumers. San Roque Village – Dayawan – Tri Motor Operator
Drivers Association notices that the rice products that are being sold in the
municipality of Villanueva are located only in the public market in which customers
will ride a tri motor or motor sikad to get to the public market. This situation hassles
the customer due to the fact that it will take time and customers will spend for the
fare. To lessen this hustle and for the ease and convenient, the association decided
to purchase rice products from suppliers and market it in San Roque Village where it
will be directly sell to its members of the association, individuals and families in San
Roque Village of barangay dawayan. In the long run, an Roque Village – Dayawan –
Tri Motor Operator Drivers Association will strive to become a supplier of rice
products in San Roque Village of Barangay Dayawan and also in the municipality of
Villanueva.

V. THE PROPOSED BUSINESS/PROJECT

A. Marketing Plan

 Analysis of the market

The business project is feasible due to the fact that there’s a high demand of
rice products in San Roque Village because of a large number of individuals and
families in the area. Competitors are the existing rice trading store which is present
in the distant public market. The only problem that the business project may
encounter is the unavailability of rice products supply. If there’s no stock of agrivet
products, sales will hamper and will be difficult for the association to replenish its
stocks.

 Products or service to be offered

The association will sell rice products with an affordable price. Rice products
that will be offered to customers ensure quality and will be purchase from a reputable
supplier before being sold.

 Brand Strategy

The rice products of the association are essentially available based on the
need and demand of the customer. The customers could select different brand of
rice which is available in the association’s store. Also, the rice trading business is
feasible because of a large number of individuals and families residing in San Roque
Village.
  Distribution Strategy

A promotion strategy will be implemented in order to make the product

introduce and to be known in the public. An actual display and availability of the
product in the store helps the business project easily distribute the rice products into
the customers. The location of the store where the business will be put up also plays
a significant role in the distribution process. The store of an Roque Village –
Dayawan – Tri Motor Operator Drivers Association is strategic because it located
along the entrance ang exit road of San Roque Village. This means that all
customers can easily access and avail the rice product of the business.

 Products Strategy

The association will conduct a daily business operation to meet the daily
demand of rice products of the customers and maintain the volume requirement to
ensure availability of stock in times of need. One good advantage is that, all the
members of the association will patronize the rice products of the business project.
The members will also implement a shifting schedule so that the business operation
will continue and not be hampered.

 Pricing Strategy

We used cost plus strategy in order to set the price of the products, the
computation would be:

Purchased Cost + Operating Cost + Mark Up = Selling Price

The mark up would be 10% of the purchased price of the rice supplies.

 Promotion Strategy

The use of word of mouth will be applied to market the rice products. The
group would also use tarpaulins or signages to notify the public and even use the
social media platform such as Facebook to promote the rice products.

 Prospective Buyers
 The first buyers would be the members of the association. Individuals and
families residing nearby and in Barangay Dayawan would be the main customers.

B. Production Plan

 Production Cycle

Step 1
Canvassing

Step 8 Step 2
Restocking Purchasing

Step 7
Step 3
Inventory
Receiving
and
Recording

Step 6
Marketing

Step 4
Safekeeping
Step 5
in the
Display
stockroom
and
Labeling

Above is the production cycle of rice trading business. In this kind of business,
there’s a series or step by step processes that need to be follow in order to maintain
the quality of rice products to be sold and to ensure the availability of stocks in times
of need.

 Plant/Workplace
 Guardian Dayawan Villanueva Association has an existing building in Purok
18, Dayawan Villlanueva, Mis. Or. owned by one of its members. The association
decided to utilize this building to become a store and at the same time make use of
the back of the store as a stockroom for the rice products.

 Raw Materials

Rice supplies are the main product of the business project and will be differed
by the brands. Rice supplies are the following:

Valencia Rice
Young Chow Jasmine Rice
Premium Rice
160 Rice
Justin Rice
Princess Bea Rice
Vietnam Rice
Brown Rice
Mangbiga Violet Rice
Mais #10 Rice
Mais #12 Rice
Bahay Rice
Pilit Rice

 Equipment/Tools/Materials

Equipment and tools such as calculator and weighing scale will be used in the
whole business operation.

 Personnel

As to the personnel, the association forms a business management team

where selected and trustworthy individuals are part of the business operation cycle.
These individuals are assigned to different functions and roles that make the
business operational. These personnel are being paid for the service they rendered
through honorarium system. And since these personnel are farmers, they can
effectively market the rice products and assist the customers in choosing the quality
rice product.
  Safety and Health

During the business operation, personnel are required to use facemask.

Additionally, an occupational safety and health policy will be imposed in the
workplace to ensure a safe and workable working environment.

 Productivity

Each individual who is part of the Project Management Team has a set of
knowledge and skills which contributes significantly in every aspect of the business
project. A team effort of these individuals will guarantee the success of the business
project.

Projected Annual Cost

PARTICULARS AMOUNT
Raw Materials 292,000.00
Total in three months operation 292,000.00
Multiplied by 12 (Monthly basis) 12
Annual Cost 3,504,000.00

Projected Annual Sales

PARTICULARS AMOUNT
Raw Materials 321,200.00
Sales in three months operation 321,200.00
Multiplied by 12 (Monthly basis) 12
Annual Sales 3,854,400.00

C. Management Plan

 Composition of Project Management Team

Guardian Dayawan Villanueva Association Project Management Team

Project Manager
 Assistant Project
Manager

Bookkeeper

Auditor

Store Keeper

Specific Duties and Responsibilities

Project Manager – Supervise and manage the overall operation and

transaction of the association.
Assistant Project Manager – Assist the project manager in supervision and
management and may also assumes the duties and
responsibilities when the project manager is not around.
Bookkeeper– Responsible for all the records related to financial transactions

either inflow or outflow made by the association.

Auditor – Check and record all the financial accounts and inventory of all
assets the association possessed.
Storekeeper – Designated for the receiving, safekeeping and selling of
 agrivet supplies. They can be also called as “tindera/tindero”.

 Organizational Structure

San Roque Village – Dayawan – Tri Motor Operator Drivers Association

Organizational Structure

President

Vice – President

Secretary Treasurer

Auditor
P.I.O

President – Acts as the presiding officer and operation manager of the whole
business project. He/she responsible to oversee the association and its
business transactions and also represents the association to all the
transactions the association involved.

Vice – President – Assist the president in all of its function and may assumes
the duties and responsibilities of the president when the president is not
around.
 Secretary – Responsible for acquiring necessary documents for the
association and its safekeeping. He/she also responsible in reporting all the
business transaction the association is dealing with.

Treasurer –Custodian of all the financial assets and in-charge of all finances
of the association. He/she is responsible in reporting all the monetary aspect
of the association and the business.

Auditor –Audits all the association’s financial assets and tangible assets.
He/she oblige to report the all findings of the audit.

Sgt. At Arms – Maintain peace and order in the association and in the
business operation. He/she is in-charge of handling conflicts that may rise
among the members.

P.I.O – Responsible for informing all the members of the association for
upcoming meetings, activities, trainings and other matters that are essential to
the association and its business operation.

 Task Assigned to Production Workers

Storekeepers are assigned as “tinder/tindero” in the store. They are

responsible for receiving, safekeeping and selling of rice supplies to the
customers.

 Commitment of Stakeholders

San Roque Village – Dayawan – Tri Motor Operator Drivers

Association commits to its stakeholders through the promotion of products
with an assured quality and affordable price.

 Profit Sharing Scheme

The member who is involved in the business will be paid through

honorarium every month and for the members, profit sharing will be
conducted annually in the General Assembly meeting of the association which
is held every December of the year.

D. Financial Plan

Monthly Working Capital Requirement

  Cost of Direct Raw Materials

Materials Unit Cost Quantity Total Cost

Valencia Rice 2,150.00 12 sacks 25,800.00
Young Chow Rice 2,550.00 12 sacks 30,600.00
Young Chow Brown Rice 2,200.00 12 sacks 26,400.00
Jasmine Rice 2,250.00 12 sacks 27,500.00
Jasmine Brown Rice 2,187.00 12 sacks 26,244.00
Princes Bea 2,200.00 12 sacks 26,400.00
Black Rice 2,500.00 12 sacks 30,000.00
Mais #10 1,875.00 12 sacks 22,500.00
Mais #12 1,900.00 12 sacks 22,800.00
Pilit 1,250.00 12 sacks 15,000.00
Total 253,244.00

 Cost of Direct Labor

Labor Rate Quantity Total Cost

Project Manager 1,000.00 1 1,000.00
Assistant Project Manager 1,000.00 1 1,000.00
Bookkeeper 1,000.00 1 1,000.00
Auditor 1,000.00 1 1,000.00
Store Keeper 1,000.00 1 1,000.00

Total 5,000.00

5,000.00 x 12 = 60,000.00

Overhead Cost

1. PMT Supervision/Administrative Cost

Position Unit Cost Quantity Total Cost

 N/A N/A N/A N/A
Total

2. Marketing Cost: 850.00 x 12 months = 10,200.00

3. Utilities: 600.00 x 12 months = 7,200.00

4. Transportation: 1,200.00 x 12 months = 14,400.00

5. Rent: 0.00

6. Others: 0.00

Furniture and Fixtures

Item Unit Cost Quantity Total Cost

Wooden Table w/ drawers 5,000.00 1 unit 5,000.00
Monobloc Chair 450.00 5 pcs 2,250.00
White Board 2x3 feet 1,200.00 1 pc 1,200.00
Trash Bin 270.00 1 pc 270.00
Total 8,720.00

Capital Outlay (Equipment/Tools)

Item Unit Cost Quantity Total Cost

Stainless Steel Scoop 250.00 1 unit 250.00
Calculator 200.00 1 unit 200.00
Weighing Scale 60 kilograms 3,000.00 1 unit 3,000.00
Total 3,450.00

Supplies

Item Unit Quantity Total Cost

Cost
Bond Paper short (11x8.5) 200.00 3 reams 600.00
 Bond paper long (13x8.5) 220.00 3 reams 660.00
Ballpen 7.00 30 pcs 210.00
Scotch Tape 1 inch 20.00 5 pcs 100.00
Scotch Tape 4 inch 40.00 5 pcs 200.00
Scotch Tape Holder 150.00 1 pcs 150.00
Masking Tape 35.00 5 pcs 175.00
Packaging Tape 50.00 5 pcs 250.00
Logbook 50.00 5 pcs 250.00
Permanent Pentel pen Marker 35.00 5 pcs 175.00
White Board Marker 50.00 5 pcs 250.00
Marker Ink Refill 50.00 1 bottle 50.00
Paper Fastener 35.00 2 boxes 70.00
Staple Wire 40.00 2 boxes 80.00
Stapler w/ remover 250.00 2 pc 500.00
Heavy Duty 2-Hole Puncher 200.00 1 pc 200.00
Total 3,920.00

Pre-Operating Cost:

1. Cost of Trainings – 0.00

2. Licenses/Permits – 2,500.00

3. Other attendant Cost – 0.00

FUNDING SOURCE
ITEM TOTAL
COST
DOLE Proponent/ Beneficiaries Others
Org.
1. Land
2. Building 30,000.00
3. Working Capital
 Raw Materials 292,000.00 292,000.00
 Labor 5,000.00 5,000.00
 Equipment/Tools 1,900.00 1,900.00
  Furniture and Fixtures 11,470.00 11,470.00
 Overhead/Administrative Cost
 Supplies 5,010.00 5,010.00
 Marketing 10,200.00 10,200.00
 Utilities 7,200.00 7,200.00
 Transportation 14,400.00 14,400.00
4. Pre-Operating Expenses
 Training
 Licenses/Permits 2,500.00 2,500.00
TOTAL 349,680.00 310,380.00 69,300.00

Financial Statements three (3) year period

Income Statement

Agrivet Supplies
Projected Income Statement
As of the Three Years Period Ended
PARTICULARS YEAR 1 YEAR 2 YEAR 3
Income ₱ 321,300.00 ₱ 672,970.00
Sales ₱ 3,854,400.00 4,239,840.00 4,663,824.00
Less: Cost of Sales 3,504,000.00 3,854,400.00 4,239,840.00
Gross Profit 350,400.00 706,740.00 1,096,954.00
Less: Operating Expenses
Direct Labor 5,000.00 7,260.00 7,986.00
Utilities Expense 7,200.00 7,920.00 8,712.00
Transportation 14,400.00 15,840.00 17,424.00
Pre-Operating Expenses
Licenses/Permits 2,500.00 2,750.00 3,025.00
TOTAL EXPENSES 29,100.00 33,770.00 37,147.00

NET INCOME ₱ 321,300.00 ₱ 672,970.00 ₱ 1,059,807.00

Cash Flow Statement

Agrivet Supplies
Projected Cash Flow Statement
As of the Three Years Period Ended
PARTICULARS YEAR 1 YEAR 2 YEAR 3
CASH INFLOW
Add: Cash Beginning, Bal., ₱ 629,080.00 ₱ 988,670.00
Equity 69,300.00
Proceeds from DOLE 209,380.00
Sales ₱ 3,854,400.00 4,239,840.00 4,663,824.00
TOTAL CASH FLOW 4,133,080.00 4,868,920.00 5,652,494.00
 CASH OUTFLOW
Raw Materials 3,504,000.00 3,854,400.00 4,239,840.00
Licenses/Permits 2,500.00 2,750.00 3,025.00
Transportation 14,400.00 15,840.00 17,424.00
Direct Labor 5,000.00 7,260.00 7,986.00
TOTAL CASH OUTFLOW 3,525,900.00 3,880,250.00 4,268,275.00
CASH BALANCE, END ₱ 629,080.00 ₱ 988,670.00 ₱ 1,384,219.00

Balance Sheet

Agrivet Supplies
Projected Balance Sheet
As of the Three Years Period Ended
PARTICULARS YEAR 1 YEAR 2 YEAR 3
Current Assets
Cash ₱ 629,080.00 ₱ 988,670.00 ₱ 1,384,219.00
Equipment/Tools 1,900.00 2,090.00 2,262.70
Supplies 5,010.00 5,511.00 6,062.10
Furnitures& Fixtures 11,470.00 12,617.00 13,878.70
TOTAL ASSETS 647,460.00 1,008,888.00 1,406,422.50

Investment 69,300.00 76,230.00 83,853.00

Net Income 321,300.00 672,970.00 1,059,807.00
Total ₱ 390,600.00 ₱ 749,200.00 ₱ 1,143,660.00

E. Stakeholder’s Commitments

We, the members of San Roque Village – Dayawan – Tri Motor

Operator Drivers Association commit to achieve the goals and objectives of the
association through our individual cooperation and utmost respect to each other for
the betterment of the association and its stakeholders. We also commit to uphold the
rights of every member and handle with care all the assets of the association.