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EXECUTIVE SUMMARY

Studies shows that charcoal products are often perceived to have devastating
ecological and environmental effects. The most commonly cited impact is
deforestation and the clearance of forest and woodland. At present, large amount of
waste in every household were observed. That gives us an opportunity to produce
alternative charcoal briquettes.

With that, BriCoal Company will offer eco-friendly, affordable, efficient and
effective, unique and good quality alternative charcoal briquette that is made of
sawdust. Sawdust are agricultural wastes that are obtained by smoothing of wood or
lumber. These wastes or residues are commonly produced since there are
continuous productions of smoothened wood due to a demand in furniture-making
process.

Our business will use different marketing strategies to attract our costumers
this includes; social media (e.g. Facebook, Instagram, and Twitter), flyers and
posters, news paper advertisement, etc, to showcase our product. The products are
to be sold to the residents of different Barangay in Valencia City, Bukidnon, but the
main targets are the barbeque grill owner. The price of the product will not exceed
60% return from its expenses.
Initial Capitalization for the business is Php 86,760, good for one month
expense. Expected revenue for 1 year is Php 280,378, while total cost of goods sold
is Php 439,460.00.
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INDUSTRY, TARGET COSTUMERS AND COMPETITOR ANALYSIS

The wood charcoal is the leading and number one source of charcoal in the
Philippines. Though it helps many Filipinos in terms of grilling and cooking, still we
cannot change the fact that production of this product damages our forest, and if this
continues it will cost a lot of problems that us humans will suffer.
And with that, we consider this aspect as an opportunity to produce an eco-
friendly and alternative charcoal, that does not cost that much and our target
costumer can still afford it. Production of our product does not only mean that we will
generate profit but also this movement can minimize the environmental problems
such as deforestation.
The products are to be sold to the residents of the different Barangay in
Valencia City Bukidnon. Additionally, those Barbeque grill owner are also part of our
target costumer since our charcoal briquette is somewhat use for grilling. Also for
those people, that will have an outing, picnic, or bonding that will have a barbeque
party. Moreover, our main targets are the household, since they are the one who
mainly use charcoal for cooking.
People living in Valencia City, Bukidnon are fond of using charcoal as their
cooking agent. Also lots of snacks sold here are cooked through grilling. With that we
doubt that as the year pass by charcoals will be forgotten since us Filipinos
specifically here in Valencia are huge fans of grilled food.

COMPANY DESCRIPTION

History of the Company

Charcoal products are often perceived to have devastating ecological and
environmental effects. The most commonly cited impact is deforestation and the
clearance of forest and woodland. At present, large amount of waste in every
household were observed. Hence, recycling domestic waste in a careful approach
helps the problem in environment. It is therefore imperative to consider alternative
raw material in making charcoal product that are not harmful to the environment.
BriCoal Company brings you an eco-friendly, good and high quality Charcoal
briquettes product for grilling which is Filipino-made, with sawdust as the main raw
material. The owner of BriCoal company, Crisha Jean Dalimocon observed that there
are many cases of deforestation due to “pagkakaingin” also there are a lot of sawdust
wasted here in our place, with that she come up with an idea to use the sawdust as
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main raw materials for making this charcoal briquettes that can be used for cooking.
The owner saw the potential of this business to grow and can compete with the
commercial products.
BriCoal Company will be situated at the farmers market of Purok-5
Guinuyuran Road, Poblacion, Valencia City Bukidnon. We choose this location
because, in this market, this is where people do buy charcoal, with that it will be easy
for us to find customers. It is the best location for our business since it is an open
area and a good space for this kind of business.
We name our company as BriCoal, since our company focus on producing
Charcoal Briquettes, in which we get the “Bri” from the “Briquettes” and “Coal” from
the “Charcoal”, and ends up with the company name BriCoal. Our tagline is “Your
eco-friendly Charcoal”.

Nature of the Company

The company will provide an alternative cooking fuel to the people who
acquire the service of the company. The company will be a manufacturing company
for it turns raw materials into finished product. The company is a sole proprietorship
form of business organization. The said company is a startup company and could be
a potential producer of charcoal briquette.

Vision Statement
To be the leading company in terms of charcoal briquette production in the
Philippines; also to be the leading provider of good and high quality charcoal
briquette that are attuned to the needs of every household.

Mission Statement
To provide environmental friendly charcoal briquettes with a good and high
quality that satisfies our customers.

Product
Bricoal Company will manufacture a charcoal briquette product out of
sawdusts, however this charcoal briquette is quite different since it will not be black in
color, because we are not going to carbonized it. This product will surely click
because lot of Filipinos are fond of eating different foods that is cooked through
charcoal, which means that charcoal briquette is in demand. Also it can attract
customers for its eco-friendly feature since it is made up of waste products. Moreover
this charcoal briquette is very much affordable and has a good and high quality.
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PRODUCT OR SERVICE PLAN

BriCoal product has a number of competitive features that will be used to its
advantage to achieve market penetration, these are the following;

Eco-friendly

Our product is eco-friendly for it is made up of waste products, and does not
release black smoke.

Affordability

Our product is cheap in terms of price; it is very affordable, that everyone can
access our charcoal briquette.

Efficient and Effective

Our product can easily cook the food you grill.

Unique

Our product is unique and new to the target market, since no one had been
producing this charcoal briquette out of sawdust here in Valencia City Bukidnon.
Moreover our product is not your typical charcoal which is black in color, as it is
brown.

Preserve our Mother Earth

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For we are only recycling waste products to produce this charcoal briquette, it
will help minimize the cutting of trees in our area, that will be used for cooking

MARKETING PLAN

Our company’s mission is to provide good and high quality charcoal

briquettes with a price that is affordable for everyone. With that our pricing will be
based from our expenses in manufacturing the product plus a small percentage of
interest. The price of the product will not exceed 60% return from its expenses.

Marketing Strategies
Our company will use variety of marketing strategies to promote our product.
Social Media
BriCoal Company will create a page to increase awareness and visibility of
our products to the citizen. We will be active in Facebook, Instagram, and Twitter to
promote our product.
Flyers
BriCoal Company will make flyers and distribute it to anyone, so that many
people will know that our company is producing this product. In the flyers the price of
the product will be given, the location, the telephone number, and the benefit of the
product will also be given.
News Paper ads
This is for that citizen just like oldies to know that our product exists. Since old
people rarely visit social media and fond of reading news paper. The details that we
will give will be same as the details given in the flyers
Sales Promotion
This is to attract customers, but this will only happen once the company
already generates its desired sales.
Good Costumer Service
Having excellent costumer service will help to generate more costumers,
since it will provide the costumer with the feeling that the business is looking out for
the costumer’s interest.
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Sales Projections
Quantity Year 1 Year 2
Unit Php Unit Php
Pcs. Price Per Month
100 35 php 2,000 24,000 840,000 26,400 924,000

Year 3 Year 4 Year 5

Unit Php Unit Php Unit Php
29,040 1,016,400 31,944 1,118,040 35,138 1,229,844
Note: There will be a 10 % increase in the quantity of Charcoal Briquettes to be sold
as well as its price

OPERATION AND DEVELOPMENTAL PLAN

Manufacturing Method

Collection of
Sawdust

Straining the
sawdust collected

Mixing the sawdust with the

cornstarch and water

Molding of the mixture

Drying of the molded charcoal

briquettes
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A. Collection of Sawdust

In the collection of sawdust, the sawdust were collected from different

furniture making store.

B. Straining of the Sawdust

In straining the sawdust, a strainer will be used, this process is important for it
will separate small particles from bigger one.

C. Mixing the Sawdust with Cornstarch and Water

The sawdust is mix with cornstarch and water, for it to be molded. The
cornstarch and water served as the thickening agent of the charcoal.

D. Molding the Mixture

After the step 3 we will going to mold the mixture of sawdust, cornstarch and
water

E. Drying of the Briquette

After molding it, the mixture will be dried under the sun for the water to
evaporate.

Operating facilities

In manufacturing the raw materials into finished product, the needed

equipments are strainer and molder. The product will be produced at Poblacion,
Valencia City Bukidnon.

Quality Control Method

To control the quality of the product, the same materials will be used. The
weight of each briquette will be controlled at 100 grams using a digital weighing
scale. The shape of the briquette is identical with each other with the use of the
molder. The process will also be controlled by strictly following the right procedure in
producing the product.

Sources of Supplies

The raw materials of the product are from the other existing businesses that
provide the needed number of supplies for producing the charcoal briquettes. The
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sawdust is from the furniture making businesses, the cornstarch are from the public
market, and the water is from the water line.

IX. MANAGEMENT TEAM

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POSITIONS DUTIES AND RESPONSIBILITIES

1. Owner Responsible for planning all the
necessity of the business, from the
capitalization until to the hiring of staff
The owner should also ensure that her
doings are protected and registered in
the government.
2. Staff (Production) He/she will be the counterpart of the
owner in the production of the product.
Responsible for ensuring that the product
is processed and produced well.
3. Staff (Marketing) He/she will be the counterpart of the
owner in selling the product. Responsible
for advertising the product through social
media or any promotional campaign.

Bricoal Company will be registered as a single proprietor enterprise with the

Department of Trade and Industry provincial office. A Barangay clearance will also be
secured before it applies for a Mayor’s permit to legally operate as a micro
enterprise. The BIR (Bureau of Internal Revenue) registration will also be done after
getting all the necessary registration documents and permits from DTI (Department
of Trade and Industry), Barangay, and office of the Mayor. The owner and the staff
will be registered with the Social Security System. The wages of the staff will be
based on the daily rate as provided by law.
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CRITICAL RISKS ASSOCIATED

Every business might also encounter risks within its venture but it is also
important to know the possible risks for it to avoid.

One of the possible risks that the business might encounter is the loss of
demands due to the uprising advancement of technologies that consumers would
change their preference. To prevent this risk, the company must adopt new
technologies and continue to innovate the product to satisfy the costumers’
preference.

The other risk that the business might encounter is the appearance of new
competitors that may affect the preference of the costumers. To avoid being left
behind by these competitors, the business should create new features.

CAPITALIZATION

The capital of the business is amounted to 86,760 pesos. The money will be
used to buy the supplies and equipment needed to conduct the production. 4,000
pesos will be used to buy sawdust, 7,500 pesos for the one sack of cornstarch, 700
pesos for the paper bag, that will be used for the packaging of the product, 23,060 is
for the filtering machine, 30,000 pesos is used to purchased machineries used to
mold the product, 3,000 pesos is for the payment of utilities, 17,000 pesos will be for
the labor cost and the remaining 1,500 is for the payment of taxes and licenses.

FINANCIAL PLAN
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Start-up Summary

Expenses Cost 2000 pack of Year 1

Charcoal
Briquette
Sawdust 10 php (10 kls) 4,000 48,000
Cornstarch 750 php (25kls) 7,500 90,000
Paper Bag 35 php (100 pcs) 700 8,400
Filtering machine 5,765 23,060 23,060
Molder 15,000 30,000 30,000
Utilities 3,000 3,000 36,000
Labor Cost 17,000 204,000
Permits and Licenses 1,500 18,000
TOTAL 86,760 457,460

The sawdust cost 10 php for 10 kls, and in every pack of charcoal briquette,
we need 2 kls, with that to produce 2,000 packs of the product, the banana peelings
should be 4,000 php. For every 1 sack of cornstarch that cost 750, there is total of
250 kls of cornstarch is need to produce 2000 pack of products. For the packaging of
the product, we will use a brown paper bag, which cost 35 pesos and contains 100
pieces. For every 2000 packs of product, the total amount will be 700 pesos. The
filtering machine for sawdust/strainer cost 5765 each, and for the faster production of
the product we approximately need 4 grinders. The molder cost 15,000 and to
produce 2000 pack of products in a month we need 2 molder machines. The utilities
estimated cost of utilities will be 3000 pesos every month. The cost of labor will cost
17,000 a month, and for the permits and licenses will approximately cost 1,500.

5 Years Profit/Loss Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 840,000 924,000 1,016,400 1,118,040 1,229,844
Cost of 439,460 483,406 531,747 584,922 643,414
Goods Sold:
Materials 235,460 259,006 284,907 313,398 344,738
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Other direct 204,000 224,400 246,840 271,524 298,676

expenses
Gross Profit 400,540 440,594 484,653 533,118 586,430
(Loss)
Gross 400,540 440,594 484,653 533,118 586,430
Income
Expenses:
Other Operational Expenses
Permits 1,500 1,500 1,500 1,500 1,500
Utilities 36,000 39,600 43,560 47,916 52,708
Income 400,540 440,594 484,653 533,118 586,430
before
interest and
taxes
Tax 120,162 132,178 145,396 159,935 175,929
Net Income 280,378 308,416 339,257 373,183 410,501
(Loss)

5-Years Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Cash 86,760 242,878 267,316 294,197 323,767
Balance
Cash Inflows
(Income):
Cash Sales 840,000 924,000 1,016,400 1,118,040 1,229,844
Total Cash 840,000 924,000 1,016,400 1,118,040 1,229,844
Inflows
Cash Outflows (Expenses):
Payroll 204,000 224,400 246,840 271,524 298,676
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Supplies 235,460 259,006 284,907 313,398 344,738

Taxes & 1,500 1,500 1,500 1,500 1,500
Licenses
Utilities 36,000 39,600 43,560 47,916 52,708
Other: 120,162 132,178 145,396 159,935 175,929
Total Cash 597,122 656,684 722,203 794,273 877,551
Outflows:
Ending Cash 242,878 267,316 294,197 323,767 422,293
Balance

5 Years Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets:
Cash on hand 280,378 308,416 339,257 373,183 410,501
Total Current 280,378 308,416 339,257 373,183 410,501
Assets:
Fixed Assets:
Molder 30,000 30,000 30,000 30,000 30,000
Filtering 23,060 23,060 23,060 23,060 23,060
Machine
Total Fixed 53,060 53,060 53,060 53,060 53,060
Assets:
Total Assets: 333,438 361,476 392,317 426,243 463,561
LIABILITIES AND EQUITY
Current Liabilities
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Income Taxes 120,162 132,178 145,396 159,935 175,929

Payable
Total Current 120,162 132,178 145,396 159,935 175,929
Liabilities
Capital 86,760
Add: Net Profit 280,378 308,416 339,257 373,183 410,501
Net 367,138 395,176 426,017 459,943 497,261
Capital
Total Liabilities 280,378 308,416 339,257 373,183 410,501
and Equity