LIVELIHOOD BUSINESS PROPOSAL

I. Identifying Information

A. Project Title: Hand Loom Weaving

B. Name of project proponent: Runruno Indigenous People’s Organization (RIPO)
C. Location: Runruno, Quezon, Nueva Viscaya
D. No. of beneficiaries: 10 Female from 5 IP tribes (Kalaguya, Ibaloi, Tuwali, Ayangan
and Kankana-ey)
E. Contact Person: Danny Pacantes/Catalina Maanao
Position: RIPO President/IPMR
Address: Runruno, Quezon, Nueva Viscaya
F. Total Project Cost: Php131,000.00
SDMP Fund: Php131,500.00
G. Source of Fund: FCF-SDMP Fund

II. Rationale:

Runruno is the most interior barangay of the municipality of Quezon, Nueva Viscaya. The original
Igorot inhabitants of the barangay are Kalanguya but many tribes migrated in the barangay to seek
better fortune through farming and gold mining. Runruno Indigenous People’s Organization (RIPO)
was organized since 2015 through the assistance and guidance of the national commission on
indigenous people (NCIP) with the support of the indigenous people’s mandatory representative
(IPMR) municipal representative Hon. Victor Cadingan. The RIPO was composed of five tribes
namely Kankanaey, Ibaloi, Kalanguya, Twali and Ayangan. Each tribe are represented by three
tribal elders to composed a total of 15 elders who’s role are tribal advisers and representative during
meetings and other IP activities in the barangay.

Weaving is a century age old industry. Started since women started weaving their skirts, belts and
men’s G-string then to blankets and burial cloths. The woven products were utilized as clothing, as
status symbol, as cultural material during rituals, festivities, death and heirloom and as a
contemporary fashion (clothing, fashion accessories and home furnishing). Weaving is to have
something to do after farm and house works rather than doing nothing. It is also an alternative
source of income. Even if not sold, they weave to have something for special occasions, for token
and social responsibility in the event of death..

Traditional weaving defines the cultures and behaviors of these tribes. But modernization and
commercialization has affected the traditional art of weaving. Patterns from woven cloth are now
copied into fabrics that are manipulated easily by factories. But more importantly, it resulted to the

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 decline in the practice of weaving the local tribal costume not to mention that income derived from
weaving also slowly diminishing.

As of now, skilled weavers are diminishing due to old age and the younger generation are somewhat
not aware of the rich culture and tradition of their ancestors and not interested to continue the legacy
of their grandparents. Market development, enterprise management and product development are
another challenges that the community need to address.

One way for cultural preservation is to institutionalize the traditional practice of costume weaving
and eventually passing it from generation to generation and to ensuring that none of the traditions
will be neglected or die down.

The ten (10) IP member beneficiaries that was identified and trained for the backstap weaving will
also trained on hand loom weaving to upgrade their knowledge and to improve the quality of their
produce product.

III. Project Objectives

a. General Objectives:
Generally, the project aims to preserve culture and tradition of the community and provide
additional source of income to the identified 10 IP members.
b. Specific:
1. To assist and develop members to be self-reliant, productive and business
oriented entrepreneurs in the next 5 years of operation.
2. To upgrade skills on weaving to 10 IP members.
3. To provide additional capitalization for the business enterprise
4. To increase income of the IP members involved in the production by at least
20% in the next 2 years.
5. To produce woven materials such as costumes for the 5 tribes, table runners,
place mat, blankets and others.

IV. Project Description

The project is composed of three (3) components namely the Conduct of Skills Training on Hand
Loom Weaving Machine, Training on Loom Weaving Machine, Production and Marketing.

a) Conduct of Skills Training on Hand Loom Weaving Machine

1. Community Based-Training

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 Members who will be attending the training are those who trained on the Back strap training and
currently weaving, this is in continuity of the present activity in weaving and one way in upgrading
of their skills.

Lecture for loom weaving machine will be done throughout the duration of the training. Setting up
the Loom weaving machine how to use the machine and actual weaving will be done during the
training.

b) Production

After the training and assessment, the participants will have a good sense of the general principles of
weaving, they will continue weaved using the new equipment instead of manual blackstrap this will
produce faster unlike usual blackstrap that they will consume time and effort.

Thread and other weaving materials shall be procured.

c) Marketing Activities
The group of weavers will promote their woven products in the community and to compete
into the marketing trend which is the social media, they can post product through social media
and coordinate to LGU and MLGU and DOTR (Department of Tourism) for the promotion of
the product.

V. Plan of Action
A. Technical Plan
1. Description of the project site- The livelihood business is located in Sitio Compound,
Runruno, Quezon, Nueva Vizcaya. This will be managed at home where there is a
separate space in the house of the master weaver itself for the business related activity.
Here all the weaving process will be done and also the raw materials is stored.
2. Number of Production Cycle/Year- The group will meet twice a week for the
production of woven textile products.
3. Production Scheme- The project will be implement by two member per tribe.
Commercial polyester, cotton and mercerized thread are the raw materials for weaving.
4. Technical Training Requirements- The group of weavers must undergo social,
managerial and technical training. Social Training will involve; value
formation/entrepreneurial mind set, leadership, team building and organizational
management among others. Managerial training will include; livelihood business
planning, strategic development planning, simple financial management and record
keeping. Technical trainings include setting up the back strap loom, warping and wept,
weaving process and marketing.
5. Practice Occupational health and safety procedures- Use of appropriate PPE and
controlling hazards/risk in workplace during weaving should be consistently followed.

Table 1. Training on Hand Loom Weaving Machine Budget Requirement

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 A. Particulars Quantity Unit Unit Cost Total Cost
a. Training fee, Food and Accommodation
Meals for Participants for 7 days 10 5 150 7,500.00
Snacks for Participants for 7 days 10 10 50 5,000.00
Professional fee of trainer (first Man-
5 2,000.00 10,000.00
Php1,000/day) days
Transport, Food Accommodation of RS Man-
5 1,900.00 9,500.00
days
Thread Lump sum 1 47,500.00 48,000.00
Subtotal       79,500.00
Additional capital for Loom Weaving
Hand Loom Weaving Machine Unit 2 17,500.00 35,000.00
Manual High Speed Machine Unit 1 17,000.00 17,000.00
Subtotal     52,000.00
Total Cost 131,500.00

A.3. Fixed Asset Requirement and Periodic Depreciation Costs – All fixed assets such as equipment and
machinery, land and structures, furniture and fixtures, necessary in the implementation of the business shall
be identified with corresponding cost. Acquisition and construction costs of the fixed assets shall be needed
in determining the financial viability. The total amount used in the acquisition and/or construction shall be
used in the determination of the capital requirement of the business. The concept of depreciation is
introduced as basis for applying the costs of usage of all fixed assets in the operation of the business
enterprise. Depreciation refers to the allocation of regular amount for the wear and tear of the fixed assets
for a pre-determined period of time. This period of time depend on the type of assets used. It is
recommended that a straight-line method be used because it is easy to understand and apply. In this method,
depreciation is determined by dividing the costs of the fixed assets by the number of years of estimated life.
For each of the fixed assets, it is presumed that there will be no scrap value of the assets at the end of the life
span.

Table 3. Fixed Asset Requirement and Periodic Depreciation Costs

Fix Asset Qty Acquisition Life Annual

Cost Span Depreciation
(Years)
Hand Loom Weaving Machine 5 3,500.00/unit
7,000.00/ of the 2
2 17,500.00
units of Hand Loom
Weaving Machine
Manual High Speed Machine 1 17,000.00 5 3,400.00/unit
Total Cost 52,000.00

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 Monthly Depreciation= 10,400/12=866.67
Purchased Cost

Annual Depreciation = ------Actual Cost-------------= 10,400.00

Estimated Life Span
B. Organizational and Management Plan

To achieve the project objectives and deliverables, below is the proposed project Organizational Structure
and the corresponding duties and functions.

Runruno Indigenous People’s Organization

(RIPO)

Officers

Treasurer Secretary

Manager

.Kankanaey Kalanguya Ayangan Tuwali Ibaloi

.Kankanaey Kalanguya Ayangan Tuwali Ibaloi

Personnel Personnel Personnel Personnel Personnel

Procurement/Marketing Bookkeeper Cashier

Officer

Duties and Functions of Key Officers and Members:

a. General Assembly:

1. Is the highest governing body of the association

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 2. Elect Officers
3. Ratify policies formulated by the Officers
4. At least ¼ of the total membership can call general/special assembly
5. Attend and participate in the deliberation/discussions in the General Assembly

b. Officers

1. Formulate Plans & Policies of the association/organization

2. Conduct regular meetings once a month and special meeting as needed
3. Oversee the manager & staff on project implementation
4. Appoint/dismiss all non-elective positions
5. Review & approve committee plans & program
6. Conduct periodic meetings with the committee chairman & Mgt Staff
7. Set or call Gen. Assembly meeting (Regular & Special)

c. Treasurer

1. Custodian of all properties and currencies own by the org.

2. Collect & disburse all receivables and payables
3. Monitor cash flows of the organization
4. Submit report the BOD and general membership on the financial conditions
5. Keep control on cash book and Official Receipts

d. Secretary

1. Take minutes of the Officers meetings and General Assemblies

2. Report to the Chairman on the number of present members during meetings
3. Archive all minutes of meetings/assemblies for reference.

e. Manager
1. Responsible for all business activities & undertakings on Loom Weaving Project
2. Implement all policies and guidelines on business operations
3. Provide directions to tribal elder in-charge, personnel and staff.
4. Submit reports to the Officers on the updates of the overall business operations

f. Tribal elder/leader

1. Act as an adviser for their respective tribes and responsible in attending meeting whenever RIPO
elders requires.
2. Submit plans and targets to the manager and officers for loom weaving project.

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 3. Supervises personnel assigned.
4. Submit to the manager and officers outputs and prepare regular reports.

g. Personnel

1. The trained weavers from each tribe composed of two members per tribe that are responsible in
weaving hand loams and other products based on target.

h. Procurement/Marketing Officer

1. Responsible in the procurement of supplies, inputs, tools and materials to be used for the
association and livelihood business enterprise
2. Responsible for the marketing of products produced by the association
3. Conduct periodic monitoring of movement of prices in the market
4. In-charge of linking products to prospective market outlets.
5. Formulate marketing competitive strategies.
6. Submit reports to the manager on the updates and problems encountered in marketing transactions

i. Bookkeeper

1. Keep & maintain financial records of the org

2. Prepare monthly Financial Statement Reports.
3. Do other functions as maybe assigned by the manager

j. Cashier

1. Collect & disburse all receivables and payables

2. Monitor cash flows of the projects
3. Submit report the manager on the financial conditions
4. Keep control on cash book and Official Receipts

Assisting Organization’s Role/Responsibility

Aside from the personnel trained to manage for this project and the tribal leaders as advisers, the tasks and
working relation of the project holder and the assisting organization shall be clearly defined and agreed
upon.

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To strengthen monitoring and evaluation of project performance and immediately respond to issues affecting
project implementation, a monthly meeting shall be establish with the project staff and the advisers of the
project holder. A quarterly shall also be held between the project holder and the assisting organization for
the reporting of project status. This shall help ensure the immediate execution of relevant policies in a timely
manner for a smooth project implementation.

C. Marketing Plan

The main customers are schools who are renting costumes during programs, pasalubong centers,
retail store owners or the wholesalers, local buyers from the province of Nueva Vizcaya, Benguet
and Ifugao, traders who collect products from weavers and Baguio City. The social contacts with the
retailers and clients can help to make the products as per needs of the market.

D. Marketing Objectives
 Establish linkages/commitments into the local market with target buyers such as
pasalubong centers, retail store owners or the wholesalers, local buyers .
 Regularly supply as it is needed by the customers.
1. Continuously Satisfying Customer Strategy
 Maintain deliveries of committed volume of product.
 Maintain good quality product.

2. Sales Force Performance Strategy

 Sustainable win-win relationship between supplier and costumer.
 Maintain product quality.
 Provide incentive to marketing in-charge.
 Regular updating of sales trend.
 Offering attractive incentives such as:
a) Free delivery
b) 10% to 20% discounts on volume cash purchases
c) 50 – 50 schemes. Fifty percent cash payment on delivery and 50 percent
Consignment payable for 7-15 days.
d) Consignment 7-15 days

3. Better Than Others Strategy

 Organize marketing in-charge.

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  Advertise products in print and broadcast media.
 Organize market day
 Participate on trade fairs and other market matching events
 Survey of potentials market outlets.
 Prompt action to customer’s concern.

4. Control Measures
 Always issue acknowledgement receipts or payment voucher.
 Maintain financial records or books of accounts.

Table 4: Channel of distribution

Target Market Local Institutional
Vendors, stores, Malls, Department stores
Traders; schools; LGU’s
Mode of Delivery Delivery/ Pick-up Cash/ Consignment
Mode of Payment Cash on delivery Cash on delivery
Consignment Consignment
50-50 schemes: 50% cash upon 50-50 schemes: 50% cash upon
delivery and 50% after 7-15 delivery and 50% after 7-15 days
days Consignment 7 days
Consignment 7 days

Financial Analysis

Assumptions
For 134 kg yarn/thread-produces 317m long x 30cm wide woven cloth
1 weaver= produces 1.5m x 0.30m/day
Cost of 1 tapis or woven cloth with dimension of 4 m long x 0.30m wide=Php1,000.00/pc
Volume of Production/cycle: 79 pcs tapis or woven cloth- 4 m long x 0.30m wide
Production cycle: There will be 2 cycle/year with a production of 79 pcs tapis or woven cloth
Depreciation cost/year=23,800/5=11,000.00/year
Depreciation cost/month=916.67/month
Depreciation cost/cycle=5,499.99/cycle

Production cost for Cycle 1 to 2, 2 cycle/yr

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 Thread: Php400.00/kg x 112.5kg = 45,000.00
Labor: 50% of Raw material cost = 22,500.00
Marketing = 1,000.00
Transportation: = 1,000.00
Electric Bill = 200.00
TOTAL Php69,700.00
Gross Income
79 pcs tapis or woven cloth at Php1,000.00/pc = Php79,000.00(for cycle 1 and 2-
first year of operation)

D. FINANCIAL PLAN

Table 6. Projected Capital Investment

Particulars Association FCF BLGU Total Cost
Equity Minerals
A. Labor
Production-weaving 22,500.00 22,500.00
Marketing 1,000.00 1,000.00
Transportation 1,000.00 1,000.00
Electric Bill 200.00 200.00
SUB-TOTAL 24,700.00 24,700.00
B. Materials/Inputs
Thread/Yarn-assorted color 45,000.00 45,000.00
Hand Loom Weaving Machine 38,000.00 38,000.00
Manual High Speed Machine 17,000.00 17,000.00
SUB-TOTAL 100,000.0 100,000.00
0
TOTAL COST 24,700.00 100,000.0 124,700.00
0

Table 7. Projected Income Statement

X  Particulars   Cycle 0 Cycle 1 Cycle 2

Sales   P      

  A.    Labor        

  Production   22,500.00 22,500.00 22,500.00

  Marketing   1,000.00 1,000.00 1,000.00

  Transportation   1,000.00 1,000.00 1,000.00

  Electric Bill   200 200 200

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   SUB-TOTAL   24,700.00 24,700.00 24,700.00

  B.     Materials/Inputs        

  Thread/Yarn-assorted color   45,000.00 45,000.00 45,000.00

Hand Loom Weaving Machine 38,000.00

Manual High Speed Machine 17,000.00
    100,000.00 45,000.00 45,000.00

  SUB-TOTAL   124,700.00 45,000.00 45,000.00

  C.    Depreciation Cost   5,500.00  5,500.00  5,500.00

  TOTAL PRODUCTION COST   130,200.00 75,200.00 85,686.67

  GROSS INCOME   79,000.00 79,000.00 79,000.00

  NET PROFIT   -51,200.00 3,800.00 3,800.00

Projected income statement is computed based on production cycle. The income would increase if they
increase the volume of production.

Table 8. Projected Cash Flow

X  3 Years of Operation

  Cycle 0 Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

CASH INFLOWS              

Beginning
    3,800.00 7,600.00 11,400.00 11,400.00 15,200.00
Cashflow

FCF Minerals 100,000.00            

Labor Capital 22,500.00            

Operational
2,200.00            
expenses

Sales:              

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 Production   79,000.00 79,000.00 79,000.00 79,000.00 79,000.00 79,000.00

Total Inflows

124,700.00 79,000.00 82,800.00 86,600.00 90,400.00 90,400.00 94,200.00

CASH OUTFLOWS

             

Production Cost
             

Inputs/Materials
100,000.00 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00

Labor Capital
22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00

Operational
2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
expenses

Depreciation Cost   5,500.00 5,500.00 5,500.00 5,500.00 5,500.00 5,500.00

Total Outflows 124,700.00 75,200.00 75,200.00 75,200.00 75,200.00 75,200.00 75,200.00

CASH BALANCE,
0.00 3,800.00 7,600.00 11,400.00 15,200.00 15,200.00 19,000.00
END

Projected ROI
Return on investment (ROI) measures the gain or loss generated on an investment relative to
the amount of money invested. ROI is usually expressed as a percentage and is typically used
for personal financial decisions, to compare an association's profitability or to compare the
efficiency of different investments.

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Return of Investment = 15,200.00
(ROI) X 100
124,700.00

ROI = 12.19%

D.1 Collections of production capita (Raw materials and Fixed Asset):

1. Collections of production capital shall be made after marketing of products.

2. Depreciation cost shall be included in the collection.
3. All the payments made by the members shall be acknowledged by the treasurer thru the issuance of
an Official Receipts or acknowledgement receipt. The same shall be remitted to the treasurer and
deposited to association account in the following day after the collection in the authorized
depository bank.

D.2 Scheme in the Sharing of Re-flows and/or their Use:

The production capital collected will be re-used by the group. The group shall allocate from their share
budget for individual replication. Next Batch will wait for the next budget from association and or FCF.

The net profit from the project will be divided into 70% for the implementing group and 30% for the
association. The 30% share from the association will be divided as follows: 25% Trust Fund; 25%
Additional Capital; 30% will be shared by the members on annual basis and 20% Calamity Fund. However,
the association has the option to use the fund as additional capitalization of its existing business or another
business window/s.

D.3 Control mechanism

The association shall maintain a cash book and project account. All collections and monies derived from
project operations shall be deposited to the said account. No money shall be disbursed / withdrawn without
Board Resolution authorizing the transactions.

A monthly status report of fund utilization and re-flows shall be submitted by the treasurer noted by the
President for monitoring purposes.

D.4 Mechanism in event of default and non-remittance of repayments

The repayment rate is used as an indicator for collection efficiency with respect to the amount due. In this
particular case, the repayment shall be taken from the gross sales of the products sold; hence, repayment is
by individual member. However, in case there is a default of repayment and the maturity period as stipulated
in repayment duration has been lapsed as a result of negligence on the part of the member-borrower, the
association shall imposed penalty at 1% per month to the unpaid amount.

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On the other hand, if the cause of default is by natural calamity that is beyond human control and after
validation to be conducted by the association officers and FCF livelihood staff and if found to be reasonable
the member-borrower shall only pay the capital within the period of two years to give ample time to recover
his losses.

D.5 Savings Generation/mobilization

The proposed business activities also consider generation of savings among the members through capital
build-up (CBU) contribution of Php 100.00 after each cycle.

In order to earn interest such contribution will be lent to the interested members at minimal interest payable
through monthly amortization.

E. Sustainability / Expansion Plan

To sustain members’ active participation, aside from CBU, savings mobilization will be adopted. This
scheme will allow each member to contribute a certain amount as individual monthly savings with the
association. The savings will be treated and entered separately in the book of accounts of the association.

Annual general membership assembly shall be conducted. This forum will allow the association to review its
performance for the particularly period. It is also with this activity that the decision of expanding its
membership will be decided and approved by the members.

Proper coordination with LGU, DTI, DOST, DA and other line agencies deem necessary. The LGU on its
part should play active role by passing pertinent resolutions or ordinances that will supports the patronage of
the business activities in the locality. Also, financial assistance and business incentives are another form of
supports that the LGU and other agencies can extend to the association.

Likewise, Department of Trade and Industry on its part will provide technical and the necessary technology
needed in the development of by-products.

Aside from the technology assistance, the DTI and line agencies may also help in providing market access of
the product to the national markets.

F. Monitoring and Evaluation

The monitoring activities will be done to ensure that the business activities are implemented according to the
implementing schedule / business plan. This will be done thru regular/monthly meeting. This will provide
avenue for the officers to appraise themselves on the status of physical and financial conditions of the
project operations. At the same time, at early stage of the occurrence of any problem or issue the officers can
initiate immediate strategies to address the said problem. Regular meetings will also stimulate active
membership participation.

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Likewise, to determine the overall performance of the business operations periodic project evaluation will be
conducted. The conduct of periodic evaluation will be done bi-annual. This will allow the key officers to
formulate necessary policies and mitigating measures to address the unmet deliverables of the project.

On this stage, comparison of targets against accomplishments will be done. One example to this is the
number of kilos obtained based on the projected value. Did the targets are meet or not. How much of project
budgets are being disbursed and if the disbursement exceeded or below the targets. Another is the target
production volume and sales, and etc.

Prepared by: Reviewed by:

LOURDES GANO MARCELO P. SAMACO

Focal Person Community Relations Officer-Livelihood

Recommending Approval:

PEDRO DUMAGUING JR.

Chairman-Committee on Agriculture, Fisheries and Cooperatives

Approved by:

JOHN M. BABLI-ING AGNES B. ROSALES

Punong Barangay CRO Manager

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