POTATO TWISTER

-A potato that twists your taste buds…

A Business Plan

Proponents:

Ma.Josefine H. Burac

Dan AlfrieFuerte

Jerome Ladores

Ma. Lyn Madrona

Joem Nemenzo

Phillip Ian Jayme

Jerome Ladores

Grade 12-ABM
 January 2018

Table of Contents
CONTENT PAGE
I. Executive Summary……………………………………………………………………………………………3
II. Business Concept………………………………………………………………………………………………5
III. Description of the Business…………………………………………………………………6
IV. Target…………………………………………………………………………………………………………………………7
V. Marketing Plan……………………………………………………………………………………………………8
a. Product
b. Price
c. Place
d. Promotion
VI. Sales Plan………………………………………………………………………………………………………………9
VII. Production………………………………………………………………………………………………………………10
VIII. Business Requirements…………………………………………………………………………………11
a. Staffing and Costs
b. Business Organization
c. Equipment
d. Space Requirement
e. Other Cost
f. Business Inputs
g. Material Costs
h. Depreciation
IX. Sales and Costs Plan……………………………………………………………………………………12
X. Cash Flow Plan……………………………………………………………………………………………………12
XI. Conclusion - Intent………………………………………………………………………………………13

I. Executive Summary
‘Potato Twister’ offers an amazing potato snack known as
“Tornado Potato” that will surely twist the taste buds of all
individuals.This entity is a corporation composed of seven (7)
people: Ma. Josefine Burac, Dan Alfrei Fuerte, Jerome Ladores,
Ma. Lyn Madrona, Joem Nemenzo, Phillip Ian Jayme.

Tornado potato is a snack which made of medium size 100

grams deep fried potato that is cut spirally and then serves
either with powdered cheese, sweet and spicy fishball sauce or
ketchyonnaise (a mixture of ketchup and mayonnaise). The said
product is served in a bamboo skewer with price of ₱20.00 per
stick or per serve.

‘Potato Twister’ is located at Fort San Pedro National High

School Campus, which is managed by the ownersthemselves. The
product is distributed through a first come first serve basis.

‘Potato Twister’ is targeting to sell 50 sticks/serves of

tornado potato daily which the owner is expecting to gain
₱1,000.00. ‘Potato Twister’ can generate also 1,000
sticks/serves per month and 12,000 sticks/serves annually.

To increase the sales of ‘Potato Twister’, we offer the

Barkada Bundle promo for every five sticks of a set of friends,
there will be an additional one stick for free. ‘Potato Twister’
plans to make a bold move to increase from the current sales of
20,000.00 monthly to ₱ 30,000.00 monthly for the next 12 months.
Thus, Potato Twister forecast increasing profits from
₱240,000.00 to ₱360,000.00 in the next 12 months.

Potato Twister has targeted to increase its production and

sales to ₱50,000.00 monthly to generate sales of ₱600,000.00 in
3 years.

II. Business Concept

The Filipino people is fond of eating especially

youngsters, others can see them eating everywhere like in malls,
parks, streets, and schools. This is the reason behind why
owners pushed ‘Potato Twister’ Corporation to sell a potato
snack called tornado potato inside the school premise.

Potato Twister will be the answer to an increasing demand

for snack-type fast food, to be consumed while students having
their break time.Potato Twister Corporation knows that students
always eat the same foods every day inside the school canteen,
thus Potato Twister Corporation wants them to taste a new
product that will twist their taste buds. Potato Twister will
offer them a potato snack with a price ₱20.00 per stick/serve
the student can now enjoy the tasty and twisty tornado potato.

The business is known as the Potato Twister, the name is

derived from the product itself which is twisted potato. Potato
Twister was started as a small business which will continue to
grow with the help of the customers.

III. Description of the Business

Our enterprise is called ‘Potato Twister’ named after its
main ingredient which is the twist potatoes or simply known as
“Tornado Potatoes”. It is a deep fried spiral-cut whole potato
on a skewer, brushed with various seasonings such as onion,
cheese, or honey. Some varieties have spliced sausages in
between. Potato Twister put a Filipino twist on the tornado
potato, it is deep fried on bamboo skewer either with powdered
cheese, sweet and spicy fish ball sauce or ketchyonnaise (a
mixture of ketchup and mayonnaise). The said product is served
in a bamboo skewer with price of ₱20.00 per stick/serve.
‘Potato Twister’ has its own stall that serves customer who
comes to the stall, the catering of its customer is first comes
first serve basis that allows them to be organized.

IV. Target Market

‘Potato Twister’ aims to provide a lip-smacking low-cost
product for individuals. Establishment of this food house seeks
business to flow smoothly and to be profit-oriented firm.
‘Potato Twister’ intends to cater all individuals especially
bulk of teenagers and youngsters. To large extent, everyone needs
something from our shop. The enterprise will be located at Fort San
Pedro National High School Campus to serve a whole lot of people,
but our major targets will include: Students, School Staffs and
Deep Fried Potato Lovers.
‘Potato Twister’ is targeting also to increase its sales
from the current sales of 20,000.00 monthly to ₱ 30,000.00
monthly for the next 12 months. Thus, Potato Twister forecast
increasing annual sales of ₱240,000.00 to ₱360,000.00 in the
next 12 months.
Over the next three years, Potato Twister is targeting to
increase its production and sales to ₱50,000.00 monthly to
generate sales of ₱600,000.00 in 3 years. With the continued
success of the corporation, in years, we will reimagine more
than just a stall but an outlet not in only in schools but in
different malls and parks with different snacks products
available. Guests and customers will have comfortable sits while
eating our specialty inside our outlet.
 V. Marketing Plan
‘Potato Twister’ is a corporation. There are five of us in
our company which handle the business altogether. Each of us
will receive the same income. Each of us holds equal shares of
ownership in the company. Owners in the business act as both
employees receiving a salary and as owners receiving dividends.
‘Potato Twister’ practices the direct sales model which is
the business’s own employees demonstrate and sell the product
directly to the end user.
 Product
Our main product is a tornado potato which is a deep fried
spiral-cut whole potato on a skewer, brushed with various
seasonings such as onion, cheese, or honey.With a Filipino twist
on the tornado potato, it is deep fried on bamboo skewer either
with powdered cheese, sweet and spicy fish ball sauce or
ketchyonnaise (a mixture of ketchup and mayonnaise).
 Price
The selling price for the ‘Potato Twister’ is ₱20.00 per
serve or per stick.
The following are the prices of Potato Twister’s
competitors:
Nene Chen’s Snack Bar - ₱30.00/stick
Jomar’s Food Cart - ₱35.00/stick

 Place
Potato Twister is located at Fort San Pedro National High
School Campus.
 Promotion
Flyers of Potato Twister will be distributed for the awareness
of the customers. To increase the sales of ‘Potato Twister’, we
offer the Barkada Bundle promo for every five sticks of a set
of friends, there will be an additional one stick for free.VI.
Sales Plan
 Objectives
 To lift the appetite of the bulk of teenagers and
students whenever they have their break and have
“meryenda”.
 To give new face of Tornado Potato that is usually known
for its basic existence.
  To maintain a profit-oriented business.
ANNEX A shows the Sales and Cost Plan for Potato Twister’s
current operation with total sales of 240,000 pesos deducted by
the total direct costs of 89,520 pesos, total indirects cost
42,635.04, and income tax of 45,294.84 which will result to the
net profit of 62,550.12.
ANNEX B shows the Maximum production and sales volume per
month.The total quantity of product that was sold out, expenses,
taxes and profit per month will also going to be started in the
ANNEX B, yet in a maximum production. In the simplest way the
production and sales will be going to be more than the quota per
day.
ANNEX C shows the target sales for the next three years.
The table in ANNEX C is the target production and sales volume
for the next three years. The current sales annual sales is
240,000. Potato Twister has targeted 360,000 for the 1st Year,
480,000 for the 2nd Year, and 600,000 for the 3rd Year.

VII. Production
To produce a great customer service, Potato Twister is
aiming for customer’s satisfaction, which caters the needs of
each customer and serve according to what they wanted, also
proper and fair treatment will be observed. Procedures in
production of Potato Twister are being followed, first a
customer must order, then the order will be taken by the seller.
Then the cook will prepare the order by washing the potato,
putting the potato on a bamboo skewer, cutting the potato
spirally, frying the potato, putting the customer’s choosen
sauce, then the order will be serve.
ANNEX D shows the business process workflow of Potato
Twister. The proper way of how to avail the product will be
going to be started. The business process workflow follows as
inquiry, quotation, order, production, delivery, packing, and
quality control.

VIII. Business Requirements

a. Staffing and Costs
‘Potato Twister’ is composed of five (5) people who will
manage the whole business. The staffing compliment of the
business and the salary schedule is shown in ANNEX E.
 b. Business Organization
The organizational structure of Potato Twister is very
simple. This is shown below. The manager must have the ability
to direct people, time management skills, problem solving
ability. The business manager must have good communication
skills, organizational skill, and analytical skills. The auditor
must have good mathematical skills. The cook must have good
cooking skills. The seller must have good communication skills.

MANAGER

BUSINESS
MANAGER

AUDITOR

COOK SELLER

c. Equipment
There are materials that being used in ‘Potato Twister’ to
produce delicious tornado potatoes. The business’s equipment and
other asset are enumerated in ANNEX F, including the value of
each. The main equipment of the business is butane stove and
frying pan, food thongs, sauce containers, and bamboo skewers.
d. Space Requirement
Potato Twister is located at Fort San Pedro National High
School Campus because it’s the place where our target market is
present and the business will ask for permission from the school
head. The business layout is shown in ANNEX G.
e. Other Cost
The projected other costs of the business is shown in ANNEX
H. The major operating expenses are Butane (Gas) and water. The
business expend 7,200 for butane and 4,800 for water with the
total of 12,000.
f. Business Inputs
The project raw material (business input) requirements for
the next 12 months are enumerated in ANNEX I. The raw material
requirements are based on the increasing production during the
month. The major raw materials components are potato, oil,
powdered cheese, sweet and spicy fishball sauce, ketchup, and
mayonnaise.

g. Material Costs
The cost of the business inputs enumerated in the (f) above
is shown in ANNEX J. The business expends 67,200 for the
potatoes, 14,400 for the cooking oil, 1,800 for the mayonnaise,
1,920 for the cheese powder, 1,800 for the ketchup, and 2,400
for the fishball sauce, with the total of 89,520.
h. Depreciation
The depreciation computation of the company’s physical
assets is shown in the depreciation table in ANNEX K. The annual
depreciation of frying pan is 150, butane stove is 300, food
thongs is 25, sauce containers is 60, and table is 100, with the
total of 635.

IX. Sales and Costs Plan

ANNEX L shows the Sales and Cost Plan (or Projected
Income Statement) of Potato Twister’s next 12 months operation
with total sales of 360,000 pesos deducted by the total direct
costs of 134,280 pesos, total indirects cost 42,635.04, and
income tax of 76,895.68 which will result to the net profit of
106,198.32.

X. Cash Flow Plan

The process of how the cash comes in and out inside the
business or specifically known as cash flow is shown in ANNEX M.
On the first month the total cash in is 22,500, total cash out
is 11,072.92, and the cash at the end of the month is 11,427.08.
Every month 8,927.08 is added on total cash in.
IX.Conclusion – Intent
Eating out can be a very pleasurable experience. Having
dinner with a friend, eating romantic meal while on a date or
celebrating some special event with a party at a restaurant are
all things we enjoy doing. While waiting for the main course to
be served appetizers can satisfy and lift our appetite. For
individuals to have easier, affordable and a time-saving
appetizer, we offer a deep fried spiral-cut whole potato on a
skewer, brushed with various seasonings such as onion, cheese,
or honey.

Based on the evaluation of the market, the business has

potential to generate more profit. However, this is the premised
up on scaling up production and sales immediately.

‘Potato Twister’ plans to expand the business. The

business’s intention is to borrow 10,000 pesos to fund this
expansion program. Given the funds, the immediately increase the
production of potato snacks packs.

ANNEX N shows the amortization table for 10,000 pesos loan

at an interest of 7% per month and payable for 1 year. Potato
Twister’s Cash flow plan shows that the company can easily pay
for the monthly instalments. Further, the sales and costs plan
also shows that it can absorb the interest on the loan. Once
production is optimized, then much cash will flow in.

‘Potato Twister’believes that it will be successful in the

field of business. All it needs are enough facilities and
equipment to make this business grow and expand.