FORMATION

ANNEX Z
DOLE KABUHAYAN PROGRAM
GROUP BUSINESS PLAN

I. PROJECT BRIEF

Proponent ACP/Proponent Beneficiary : Purok 6 Urban Poor Neighbourhood

Association, Inc. (PUPNAI)

Proposed Business Project : General Merchandise Store

No. of Beneficiaries : 20

Total Project Cost : ₱ 312,500.00

DOLE Support : ₱ 250,000.00

Proponent ACP/Proponent : ₱ 62,500.00

Contact Person : Carmencita L. Casila

Contact Number : 0997-835-2623

II. EXECUTIVE SUMMARY

A. Marketing Aspect
As the population rises, demand for basic commodities also increases as it is directly
proportional to the latter. In the past few years demand for basic commodities
dramatically increases in Northern Mindanao, especially during the onset of the
pandemic. Understanding the basic supply and demand of the community could help
alleviate poverty thereby generating employment in the area.

One of the common places of commerce where goods are being sold is the General
Merchandise Store. Various items are readily available for public use in a general
merchandise store, now, food products are considered part of general merchandise
stores due to advanced technology in food preservation.

The proposed location of the business is at Purok 6, Gusa, Cagayan de Oro City where
the number of passers-by and households is high. This could drive a positive impact on
the business. In addition, nearby small sari-sari store owners travel to the city proper to
buy groceries for their store and own consumption.

B. Production Aspect
The schedule of purchasing raw materials shall be agreed upon by the association based
on the present situation of the store including the needed and in-demand items.
Potential suppliers’ profiles must be well reviewed by the association for the benefit of
the business and its members. It should include suppliers with agreeable terms and
possibly lower prices.
The association shall take into consideration the inflation rate that could greatly affect
the purchasing power of the store. This would help the association attain an informed
decision to maintain the stability of the business operation.
C. Management Aspect

The association has operational staff who have the capacity and enough experience in
handling the business. They shall be responsible to ensure that the business is

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profitable. Further, the association shall be held accountable for reporting and updating
the business performance to the officers and members of the association and to the
agencies in authority directly funding the project.

The management team is oriented with their individual responsibilities. The project
management team is led by a project manager who is in charge of the operation and
takes the lead in marketing. Other members of the project team shall assume tasks on
purchases of supplies and materials, sales inventory, record keeping, and cashiering.
This personnel must maintain important documents related to the day-to-day operation
of the business such as but not limited to maintaining the price list of all items to
prevent data discrepancies and ensure that the information is correct, maintenance of
payment deliveries, cash out for wages and rental payments, and proper inventory of
stocks. Additionally, just like most businesses, workers for the business must ensure that
there is proper a work schedule and this must be supported by a daily time record as
proof that work has been rendered.

These management team members are also required to attend training for everyone to
perform their tasks well, if necessary. Training could include bookkeeping, auditing, and
inventory to promote transparency in handling the business.

The officers of the association must ensure that the operation of the business is
compliant with government regulations and the constitution and by-laws.

D. Financial Aspect
For this project, the proponent needs a start-up capital of Two Hundred Fifty Thousand
pesos (P 250,000.00) for the direct material. With the grant from DOLE X-CDO, the
association could purchase for the first cycle of the business. The proponent in this
regard is expected to double the start-up capital in the next year of operation and be
liquid at that time.

On the other hand, to ensure that the income of the business is properly accounted for,
cash should be deposited in the designated bank of the association for a period being
agreed and withdrawals must be supported with signed documents. Documents such as
petty cash vouchers and payrolls must be maintained. This is to assure the members of
transparency.

E. Collaboration of stakeholders’ Commitments (Organization /ACP, beneficiaries, etc.)

The association commits to work together with the Department of Labor and
Employment in full submission to their rules and regulations. The must be proper
coordination and collaboration where the main agenda is not just to acquire funding
but to improve the livelihood of the members and community, enabling them to
participate in the improvement of the local economy.

In order to attain this, members of the association must support and assist the
management in undertakings that would benefit them.

III. ORGANIZATION/ACP/PROPONENT OVERVIEW

A. History, structure, and organization

The proponent is a registered and accredited community-based urban poor association

by Security and Exchange Commission (SEC) and Presidential Commission for Urban
Poor (PCUP) with 20 members living at Purok 6, Barangay Gusa, Cagayan de Oro City.

The association decided to step up to an entrepreneurial setting with General

Merchandise as an add-up business. This will not only provide additional income to its
members for their everyday sustenance but also skills through training and experience.

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With this, the association would like to apply and develop its knowledge of the
business.

B. Strategic Direction

As part of its enabling strategy, the cooperative already registered with the
Cooperative Development Authority as a Cooperative and looks forward to running a
General Merchandise business in the locality. The association needs to access working
capital for the business.

 Mission: Purok 6 Urban Poor Neighborhood Association aims to give the

beneficiaries a company that will help the association raise more money.
Generally, to increase the beneficiaries' quality of life and produce additional
revenue.
 Vision: To be one of the biggest merchandise companies in the city, where
customers can find and buy anything that they want and need at an affordable
price.

C. People and Relevant Skills and Expertise

Selling is a basic skill of the key members as they have experienced it in their small
stores. They are now responsible for ensuring that the right amount of goods is
available in-store at the right price. Through shrewd planning, careful purchasing, and
sensible promotions profits can be enhanced. Merchandisers also assess the needs of
individual stores and how they might differ based on the factors such as store size and
target demographics. Marketing and accounting which includes bookkeeping will be
enhanced through further training and implementation.

D. Address/Location

The project location of the proposed business will be Purok 6, Gusa, Cagayan de Oro
City near the Water refilling station and Coastal Road. It is 5 meters from the road. The
property is owned by the Association and it’s a donated lot by the Cagayan de Oro City
Government.

IV. INTRODUCTION

A. Background Information

It has been known that the Department of Labor and Employment (DOLE), is giving
grants to organizations and associations to be used as a Livelihood Program or some
businesses to help each participant cope with and recover from shocks and stresses
(such as natural disasters and economic or social upheavals) and to improve their well-
being and the well-being of future generations without jeopardizing the natural
environment or resource base.

The aim and goal of this business proposal are to broaden the reach of business interests
to meet demand and meet the needs of the people and group members. Women who
are active members of the organization are immediate beneficiaries.

Through this project, it would serve as an avenue for the association to generate
additional income that would help stir the economy. It will attract new customers from
nearby barangays thereby increasing transactions and sales which shall soon lead to
expansion. This could greatly impact the social and economic aspects of the
beneficiaries and the community.

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B. Purpose and objectives of the proposed business

The purpose of this project is to continuously generate income for the association
through economic activity and ensure economic stability. Thus, its objectives are:

a) To Provide the members with basic commodities at a fair market price under an
equitable financial structure;
b) To provide additional or alternative income sources to its members; and
c) To provide entrepreneurial skills to its members.

C. Direct and indirect beneficiaries

The members of the association shall be the direct beneficiaries of this project. Their
immediate family members will help in the marketing aspect and can participate in the
supply chain. However, school-age children below 18 years old and senior citizens
should not be allowed to work on the project. The family members and the local
community will also benefit from the business.

D. Brief description of the proposed business

General Merchandise Store primarily sells food to its customers as well as non-food
household items like cleaning or bathroom products. For this proposed business
venture, the association has come to a collective decision of selling primary
commodities that are needed daily by the consumers including but not limited to
canned goods, toiletries, diapers, milk, coffee, laundry detergents, and others. The
association conducted a market analysis to identify that these items are fast-moving in
the area based on the preferences of the general population.

V. THE PROPOSED BUSINESS/PROJECT

A. MARKETING PLAN

i. Analysis of the market

Retailing or wholesaling basic commodities is not new to the market in the
Philippines. In 2015, a total of 115,998 establishments engaged in retailing and
wholesaling and 4.1% engages in selling groceries. In the fifth year, a total of
116,220 establishments engaged in retailing and wholesaling. It could show that
there is an increase in the demand for what these retail and wholesale stores are
selling. Thus, supply also increases. With the fluctuation of the inflation rate, the
association shall study and identify the in-demand and fast-moving products. To be
able to reach the target market, additional strategies must be established. In this
way, the income could sustain the operation of the business.

Poor credit policy and lack of knowledge in financial planning pose a threat in this
industry. The association should establish controls that would lessen the impact of
bad debts, if possible eliminate debts. Bulk purchase is also to be considered in
order to cut other expenses, so the goods will become affordable to the customers.

ii. Products or services to be offered

The main goods and commodities sold to customers are those utilized for personal,
household, or non-commercial uses, such as groceries. Major commodities that the
community needs shall be stocked by the store such as canned goods, toiletries,
diapers, milk, coffee, laundry detergents, and others.

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A simple case-by-case study is to be undertaken by the association to decide if a

product is marketable since this varies from one item to another, the purchaser
analysis is crucial for a rise in business sales. To draw clients and create customer
loyalty, the store must offer a number of options.

iii. Brand Strategy

Maintaining good customer service skills and the association’s culture in handling
transactions with their members and customers will result in a good customer
relationship. This would positively impact the business.

iv. Distribution strategy

Items in a general merchandise store are expected to be fast-moving considering
that it consists primarily of basic household commodities. Thus, the distribution of
these items is manageable. To be able to avoid damage to stocks, the management
shall ensure that only in-demand goods are purchased.

The future plan of automation will help the association make the best financial
decisions that may require more capital but require less ongoing labor than the
manual alternatives.

v. Product Strategy
The association has strategized to focus on low-cost products that are well-known in
the market based on their quality. Initially, the association has to familiarize the
terms and agreements with suppliers by getting smaller stocks of various goods just
to know the saleable and fast-moving items and to establish a relationship with the
supplier.

vi. Pricing
Just as the right price is one that customers will pull the trigger on quickly, a price
that's too high or too low will cause hesitation. The organization intends to follow
the prevailing market price of the basic commodities that the community needed.
Any increase in prices due to inflation shall be agreed upon by the association.

The association shall put at least 10% increase from the product’s original price for
retails and 5% for wholesale.

 Promotion Strategy
The association will adopt promotion strategies that are price discounting and
product bundling. Price discounting is a popular technique mainly used to acquire
customers to try and buy the products. Today, this type of push strategy can be
carried out in a much more targeted way, in areas with a high concentration of
families price discounts can be applied to basic commodity products to drive
incremental sales.

Product bundling, on the other hand, is a technique that can be used for market
penetration, sometimes offering a product with a perceived higher value for the
client. A strong marketing campaign and promotion strategy aimed at driving
distribution of offering a lower-cost alternative. Using social media marketing,
design attractive sales commissions and incentives, adopt also customer loyalty
bonuses for the members, and give discounts for wholesale buyers.

Further, the association shall boost its sales through the use of social media. Social
media is one of the key players in today’s product promotion.

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 Prospective buyers
The prospective buyers are simply the association members and the members of
their households and the community residing in the area. But today because it is
now possible to ship and deliver products within the city and even other
neighboring provinces through shipping services, especially in product bundling
strategy.

B. PRODUCTION PLAN
i. Production Plan
The management of this business must ensure goods are available. Strictly install an
efficient inventory system to track a consistent supply of goods for sale from various
suppliers.

ii. Plant/workplace
The association has already an existing area/building that will serve as the store that
is big enough for the proposed project and it’s strategically located in the area.

iii. Raw Materials

Grocery items are always available in the market, and looking for partner suppliers
with the same vision as the association is a strong factor for a stable supply of
goods.

iv. Personnel
The existing management team directly involved in the business operation will be
the people who will handle the proposed business coupled with a commitment to
handle and further the business. The association shall undergo a series of
orientations/training to strengthen the capacity of the business. Capacitating the
members on the basics of marketing and financial literacy and management could
go a long way in this type of business. There will be tools and certain controls that
the association needs to install.

v. Safety and Health

The association will abide by what has been required by the agency concerns about
safety, proper sanitation, and hygiene. The management shall closely coordinate
with the local government for their guidance relating to existing business
regulations such as registration and health standards.

Safety

 The door lock in the entrance and exit way is secured.

 Sharp tools shall be placed in a proper area.
 No hanging of heavy things.
 Flammable liquid shall be kept in a closed container.
 All electrical switches/outlets should be off or unplugged when not in use
 Keep the area always clean.

Health
 No alcoholic drinks allowed in the working area
 No smoking in the working area.

vi. Facilities required and their production capacity

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This proposed business needs a stock room and space as a display area. Display
racks are also necessary, and hanging cabinets and refrigerators are also important.
This is to ensure that goods are not damaged.

vii. Business hours and schedules

The store will be open daily at a specific time agreed upon by the association and
the management and its workers.

C. MANAGEMENT PLAN
i. Composition of the Project Management Team

The success of the association’s business will depend on the member’s

commitment, hard work, and performance of their respective duties and
responsibilities as mentioned in the constitution and by-laws.

To sustain a reasonable atmosphere of the business, the President and the Vice
President of the group would consider recommendations from their members in
decision-making. The Project Management Team (PMT) will compose of Manager,
Purchaser, Cashier, and Sales Personnel. They will receive compensation based on
the agreed salary scheme with the association. The officers must see to it that the
business will withstand, through close supervision and monitoring, especially on the
sales and expenses aspects.

ii. Specific Duties and Responsibilities

Position: Supervisor
Status: Full Time
Job Description:

 Is in charge of the business’ whole service.

 Is in charge of workers and workplace sanitation.
 Ensures that the association’s policies and procedures for corporate operations
are followed correctly.
 Make policy and action recommendations to management to help develop the
framework.
 Report any violation/s in policies and guidelines to resolve issues and concerns.
 Perform other duties and responsibilities as authorized by the constitution and
by-law of the association or board of directors and general assembly.

Position: Purchaser
Status: Full Time
Job description:

 Testing and tracking the amount of loaded and unloaded goods.

 Keep a master list of all products, including their names, brands, and sizes.
 Write a report for daily reports.

Position: Cashier
Status: Full Time
Job Description

 Is in charge of all sales sets in the store.

 Is in charge of depositing daily collections in a depository bank that has been
approved.

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 Is in charge of compiling monthly reports and maintaining a cashbook.

Position: Sales Personnel

Status: Full Time
Job Description

 Works on the sales floor providing assistance directly to the customers.

 Greeting customers who enter the store.
 Maintaining store display

Position: Bookkeeper
Status: Full Time
Job Description

 Retain all PUPNAI receipts and disbursement records.

 Assist in the preparation of monthly company financial reports organization.

iii. Profit sharing Distribution

At the end of the year, the organization shall close its account and perform an audit
and inventory. The profit sharing shall be based on the member’s contribution and
that is what is known as dividend which amount is proportionate to each
contribution. From the net profit, below will be the profit-sharing scheme:

Particular Allocation
Patronage Fund 40%
General Fund 30%
Training Fund 10%
Community Development Fund 20%

iv. Business Structure

The association shall adopt a straightforward approach to managing the project.
The PMT which is led by the Supervisor reports directly to the officers of the
association through administrative guidance to both members PMT, this will
guarantee that everyone will profess in running the business.

Officer of the
Association

Board of Trustees

Project Management
Team Members

Furthermore, the association is regulated through its bylaws, which require that the
board of Trustees and the association will meet every First Sunday of the month,
the regular General Assembly meets every first Sunday of the month of the quarter,
and the Annual General Assembly meeting every first Sunday of December every
year.

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v. Specific Training needs

The important training for those who are directly involved in the operation is the
basic Accounting and Auditing, Simplified Bookkeeping System, Policymaking, and
Entrepreneurship Development Training. At any rate, by monitoring and evaluation
of the project by the Department of Labor and Employment, training needs could be
determined. Training may be either in the Pre-Implementation phase or in the
Implementation phase.

D. FINANCIAL PLAN

i. Cost of Direct Raw Materials

Particulars Quantity   Unit Cost Total Cost

B-MEG Premium Grower Hog Pellet 25kg Repacked 8 sacks 1,100.00
8,800.00
B-MEG Integra 3000 Free Range Chicken Finisher
50 packs 80
Pellet 1kg 4,000.00
Valencia Rice 50kls (1 sack) 7 sacks 2,500.00
17,500.00
Youngchow Rice 50kls (1 sack) 10 sacks 2,250.00
22,500.00
Jasmine Rice 50kls (1 sack) 10 sacks 2,500.00
25,000.00
Princess Bea Rice 50kls (1 sack) 9 sacks 2,400.00
21,600.00
UFC Hapi Fiesta Vegetable Oil 1L Sup 10 packs 142
1,420.00
Silver Swan Sukang Puti 100mL Jr 15 pouches 9
135.00
Silver Swan Sukang Puti 200mL 10 pouches 12
120.00
Silver Swan Soy Sauce 100mL Jr 15 pouches 11
165.00
Silver Swan Soy Sauce 200mL 10 pouches 15
150.00
Magic Sarap 8g (16's) 8 bundles 71
568.00
Aji-Nomoto (Vetsin) 10g (18’s) 8 packs 53
424.00
Sarsaya Oyster Sauce 30g (6’s) 10 ties 38
380.00
Papa Banana Catsup 100g 15 pouches 15
225.00
UFC Banana Catsup 100g 15 pouches 16
240.00
Knorr Chicken Cube Single 10g (12’s) 5 dozens 78
390.00
Knorr Beef Cube Single 10g (12’s) 5 dozens 78
390.00
Aji-Nomoto Tasty Boy 80g/70g 15 packs 16
240.00
Aji-Nomoto Crispy Fry Regular 62g 15 packs 29
435.00

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Dolphin Special Bihon 200g 10 packs 24

240.00
Six Fortune Vermicelli Sotanghon 8oz 10 packs 40
400.00
Reylens Pancit Canton (1/2kl) 10 packs 86
860.00
Reylens Misua Single Pack 6’s 10 packs 32
320.00
Lucky Me Pancit Canton (chilimansi) 15 packs 15
225.00
Lucky Me Pancit Canton (sweet & spicy) 15 packs 15
225.00
Lucky Me Pancit Canton (hot & spicy) 15 packs 15
225.00
Lucky Me Chicken Noodles 55g 15 packs 14
210.00
Lucky Me Beef Noodles 55g 15 packs 14
210.00
Lucky Me Spicy Labuyo Beef 50g 15 packs 15
225.00
Lucky Me Spicy Labuyo Chicken 50g 15 packs 15
225.00
Mega Sardines Chili (Red) 155g 10 cans 28
280.00
Mega Sardines (Green) 155g 10 cans 28
280.00
Young’s Town Sardines Chili (Red) 155g 10 cans 28
280.00
Young’s Town Sardines (Green) 155g 10 cans 27
270.00
Fresca Tuna Flakes In Oil 175g 10 cans 37
370.00
Fresca Tuna Flakes Adobo175g 10 cans 34
340.00
Fresca Tuna Flks Afritada 175g 10 cans 33
330.00
Fresca Tuna Flks Caldereta 175g 10 cans 33
330.00
Fresca Tuna Flks Hot & Spicy 175g 10 cans 36
360.00
Argentina Beef Loaf 150g 10 cans 26
260.00
Argentina Beef Loaf 250g 10 cans 36
360.00
Argentina Corned Beef 150g 10 cans 41
410.00
Argentina Corned Beef 175g 10 cans 46
460.00
Holiday Beef Loaf 150g 10 cans 26
260.00
Holiday Corned Beef 160g 10 cans 44
440.00
Birch Tree Milk 33g (8’s) 10 ties 81

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810.00
Bear Brand Swak 33g (8's) 10 ties 94
940.00
Milo Sachet 24g (12's) 10 ties 114
1,140.00
Nescafe 3in1 Original Twin Pack 52g (10’s) 10 ties 131
1,310.00
Nescafe 3in1 Creamy Latte Twin Pack 51g (10’s) 10 ties 133
1,330.00
Nescafe Creamy White Twin Pack 51g (10’s) 10 ties 131
1,310.00
Nescafe Classic Sticks 1.9g (48's) 10 ties 120
1,200.00
KOPIKO Blanca Coffee Twin Pack 52g (10's) 10 ties 127
1,270.00
KOPIKO Black Coffee Twin Pack 50g (10's) 10 ties 127
1,270.00
KOPIKO Brown Coffee Twin Pack 55g (10's) 10 ties 127
1,270.00
Great Taste White Twin Pack 50g (10's) 10 ties 125
1,250.00
Brown Sugar (1 sack) 1 sack 3,600.00
3,600.00
White Sugar (1 sack) 1 sack 4,500.00
4,500.00
Tiger Katol (10pcs) 10 boxes 22
220.00
Emi Standard Match (10pcs) 10 packs 23
230.00
EQ Diapers Large (28’s) 10 packs 250
2,500.00
EQ Diapers Medium (32’s) 10 packs 250
2,500.00
EQ Diapers Small (36’s) 10 packs 250
2,500.00
Sunsilk 13mL (pink) (6’s) 10 ties 41
410.00
Sunsilk 13mL (green) (6’s) 10 ties 41
410.00
Palmolive 12mL (pink) (6’s) 10 ties 41
410.00
Palmolive 12mL (violet) (6’s) 10 ties 41
410.00
Head and Shoulder 12mL (pink) (6’s) 10 ties 39
390.00
Head and Shoulder 12mL (green) (6’s) 10 ties 39
390.00
Pantene Shampoo Soft & Smooth Care 12mL (6's) 10 ties 40
400.00
Pantene Shampoo Total Damage Care 12mL (6's) 10 ties 40
400.00
Rejoice Shampoo Rich 16mL (6's) 10 ties 45
450.00

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Dove Shampoo 10mL (6's) 10 ties 38

380.00
Cream Silk (pink) 12mL (6's) 10 ties 43
430.00
Cream Silk (green) 12mL (6’s) 10 ties 43
430.00
Bioderm Coolness Soap 60g 10 packs 22
220.00
Bioderm “Bloom” Pink 60g 10 packs 22
220.00
Bioderm Coolness Soap 90g 10 packs 30
300.00
Bioderm “Bloom” Pink 90g 10 packs 30
300.00
Safeguard Classic 60g 10 packs 24
240.00
Safeguard Bar (white beige) 85g 10 boxes 43
430.00
Silka Papaya Soap 65g 10 packs 22
220.00
Silka Green Papaya Soap 65g 10 packs 22
220.00
Dazz Dishwashing Paste 200g 4 cups 25
100.00
Smart Dishwashing Paste 200g 5 cups 28
140.00
Joy Liquid Ab Safeguard 17/18mL (6’s) 10 ties 41
410.00
Ariel Powder w/Downy 68g Jumbo (6’s) 10 ties 90
900.00
Tide Powder w/Downy 74g Jumbo (6’s) 10 ties 90
900.00
Wings Detergent Powder 60g (6’s) 10 ties 39
390.00
Surf Powder Kalamansi 70g/65g (6’s) 10 ties 42
420.00
Tide Bar (cut) 125g 10 pcs/bar 19
190.00
Pride Detergent Bar (cut) 100g 9 pcs/bar 11
99.00
Surf Detergent Bar (kalamansi) 360g 10 pcs/bar 28
280.00
Perla Blue Bar 380g 15 pcs/bar 54
810.00
Perla White Bar 380g 15 pcs/bar 54
810.00
Zonrox 100mL Fresh Scent 10 bottles 13
130.00
Zonrox 250mL 10 bottles 19
190.00
Zonrox 100mL (original) 10 bottles 13
130.00
Whisper Cotton Reg Fl Wings (8’s) 10 packs 50

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500.00
Whisper Cottony X-Lng Wings (10’s) 10 packs 128
1,280.00
Sisters Silk Floss Night Use Wings (8’s) 9 packs 29
261.00
Sisters Longer Pantyliner Bp (20’s) 10 packs 33
330.00
Charmee F/Pads All Night Plus 4’s 10 packs 30
300.00

TOTAL       157,857.00

ii. Cost of Direct Labor

Particular Quantity Rate/Day Duration Amount

Store Clearing, Fixing, and installation of racks and shelves 

Carpenter 2 650.00 5 days ₱6,500.00

Total Labor Cost       ₱6,500.00

iii. Overhead Cost

Particulars Quantity Monthly Annually
Admin Cost: (Honoraria)      
Manager 1 ₱ 5,000.00 ₱ 60,000.00
Purchaser 2 ₱ 9,000.00 ₱ 108,000.00
Cashier 1 ₱ 4,500.00 ₱ 54,000.00
Sales Personnel 2 ₱ 7,000.00 ₱ 84,000.00
Sub-total   ₱ 25,500.00 ₱ 306,000.00
Water Bill   ₱ 1,500.00 ₱ 18,000.00
Electric bill   ₱ 5,000.00 ₱ 60,000.00
Transportation   ₱ 2,500.00 ₱ 30,000.00
Total   ₱ 34,500.00 ₱ 414,000.00

iv. Pre-Operating Expenses

Particulars Quantity Unit Cost Total cost

₱ ₱
Training ()
  30,000.00 30,000.00
₱ ₱
Materials for building
  14,000.00 14,000.00
Business Permit   ₱ 7,500.00 ₱ 7,500.00
Insurance 20 ₱ 100.00 ₱ 2,000.00
₱
Total
  53,500.00

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v. Training Expenses Details

Particulars Quantity Duration Unit Cost Total Cost

Meals and Snacks 30 3 days 225.00 20,250.00

Resources Persons PF 1 3 days 1,500.00 4,500.00

Venue Rentals   3 days 1,500.00 4,500.00

Training Materials       750.00

Total   30,000.00
Only 15 members will be trained, and the other members will be trained by the members who
are already trained.

vi. Capital Outlay

Particulars Quantity Unit Cost Total Cost

Double Sided Rack (180x90x70) 1 ₱ 7,900.00 ₱ 7,900.00
Single Sided Rack 3 ₱ 6,200.00 ₱ 18,600.00
Weighing Scale 100 kg 1 ₱ 7,500.00 ₱ 7,500.00
Fujidenzo INR - 100s 10 CU.FT 2 Door Ref 1 ₱ 21,643.00 ₱ 21,643.00
Wooden Rice Box (6 holes) 1 6,500.00 ₱ 6,500.00

Total ₱ 62,143.00

vii. Project Cost

Particulars Total Cost DOLE Proponent

Cost of Direct Raw Materials ₱ 157,857.00 ₱ 157,857.00  
Cost of Direct Labor ₱ 6,500.00   ₱ 6,500.00
Capital Outlay ₱ 62,143.00 ₱ 62,143.00  
Overhead Cost      
Admin Cost: (Honoraria) ₱ 25,500.00   ₱ 25,500.00
Utilities Expenses ₱ 6,500.00   ₱ 6,500.00
Transportation ₱ 2,500.00   ₱ 2,500.00
Operating Expenses      
Training ₱ 30,000.00 ₱ 30,000.00  
Materials for building ₱ 14,000.00   ₱ 14,000.00
Insurance ₱ 2,000.00   ₱ 2,000.00
Permit/License ₱ 7,500.00   ₱ 7,500.00
Total ₱ 314,500.00 ₱ 250,000.00 ₱ 64,500.00
The total equity of the project will come from the members' contributions.

viii. Projected Financial Statement

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 FORMATION

Particular Year 1 Year 2 Year 3

Income:      

Cash sales ₱ 6,771,790.00 ₱ 7,952,348.00 ₱ 9,558,

Other Income ₱ 18,000.00 ₱ 15,000.00 ₱ 16,

Total Income ₱ 6,789,790.00 ₱ 7,967,348.00 ₱ 9,575,

Less: Cost of sale      

₱
Purchases ₱ 6,512,918.00 ₱ 7,814,
6,182,852.00
Add: Freight In ₱ 17,950.00 ₱ 18,500.00 ₱ 19,

Total Cost of sales ₱ 6,200,802.00 ₱ 6,531,418.00 ₱ 7,833,

Less: Inventory ₱ 350,405.00 ₱ 372,048.00 ₱ 391,

₱
Stocks available to sale ₱ 6,159,370.00 ₱ 7,442,
5,850,397.00
Gross Income ₱ 939,393.00 ₱ 1,807,978.00 ₱ 2,132,

Less: Operating Expenses      

Utilities ₱ 78,000.00 ₱ 81,500.00 ₱ 85,

Transportation ₱ 30,000.00 ₱ 32,500.00 ₱ 45,

Honorarium ₱ 306,000.00 ₱ 570,000.00 ₱ 672,

Permits and licenses ₱ 7,500.00 ₱ 7,800.00 ₱ 8,

Depreciation Cost -₱ 5,585.00 -₱ 5,585.00 -₱ 5,

Materials for building/renovation ₱ 14,000.00 ₱ 15,600.00 ₱ 35,

labor ₱ 6,500.00 ₱ 7,500.00 ₱ 10,

Insurance ₱ 2,000.00 ₱ 2,500.00 ₱ 3,

Office Supplies ₱ 6,500.00 ₱ 6,450.00 ₱ 6,

Total Operating Expenses ₱ 444,915.00 ₱ 718,265.00 ₱ 859,

Total Income ₱ 494,478.00 ₱ 1,089,713.00 ₱ 1,273,

ix. Projected net income distribution

Net profit Distribution Year 1 Year 2 Year 3

Patronage Fund 40 % 198,591.20 470,245.20 547,621.80

Community Development Fund 20% 99,295.60 235,122.60 273,810.90

General fund 30% 148,943.40 352,683.90 410,716.35

Training fund 10% 49,647.80 117,561.30 136,905.45

x. Projected Cash flow statement

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 FORMATION

Particular Year 1 Year 2 Year 3

Cash Inflow      

Cash Balance Beginning   ₱ 234,534.62 ₱ 892,295.25

Cash Sales ₱ 6,771,790.00 ₱ 7,952,348.00 ₱ 9,558,579.51

Grant From DOLE ₱ 250,000.00    

Other Income ₱ 17,613.12 ₱ 15,386.88 ₱ 16,500.00

Accounts Receivable 193,924.38 ₱ 248,315.56 ₱ 273,132.49

Member's Contribution ₱ 64,500.00    

Total Cash Inflow ₱ 7,297,827.50 ₱ 8,450,585.06 ₱ 10,740,507.25

Total Cash Outflow      

Light and Water ₱ 78,000.00 ₱ 81,500.00 ₱ 85,100.00

Salaries ₱ 306,000.00 ₱ 570,000.00 ₱ 672,000.00

Transportation ₱ 30,000.00 ₱ 32,500.00 ₱ 45,000.00

Office Supplies ₱ 6,500.00 ₱ 6,450.00 ₱ 6,800.00

Labor ₱ 6,500.00 ₱ 7,500.00 ₱ 10,000.00

business permit/renewal ₱ 7,500.00 ₱ 7,800.00 ₱ 8,000.00

Building Materials ₱ 14,000.00 ₱ 15,600.00 ₱ 35,000.00

Insurance ₱ 2,000.00 ₱ 2,500.00 ₱ 3,000.00

Purchases of Goods ₱ 6,200,802.00 ₱ 6,531,418.00 ₱ 7,833,800.00

Accounts payable ₱ 212,481.50 ₱ 135,021.25 ₱ 466,489.12

Equipment depreciation cost ₱ 5,585.00 ₱ 5,585.00 ₱ 5,585.00

Total Cash Out Flow ₱ 6,890,868.50 ₱ 7,509,674.25 ₱ 9,314,174.12

Cash Balance End ₱ 406,959.00 ₱ 940,910.81 ₱ 1,426,333.13

xi. Projected Balance Sheet

PARTICULAR YEAR 1 YEAR 2 YEAR 3

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 FORMATION

ASSETS      
Current Assets      
Cash 406,959.00 940,910.81 1,426,333.13
Other income 17,613.12 15,386.88 16,500.00
Accounts Receivable 193,924.38 248,315.56 273,132.49
Inventory End 350,405.00 372,048.00 391,690.00
Total Current Assets 968,901.50 1,576,661.25 2,107,655.62
Fixed Assets      
Equipment ₱ 62,143.00 ₱ 56,558.00 ₱ 50,973.00
LESS: Depreciation cost ₱ 5,585.00 ₱ 5,585.00 ₱ 5,585.00
Depreciated Cost ₱ 56,558.00 ₱ 50,973.00 ₱ 45,388.00
Total Fix Assets ₱ 56,558.00 ₱ 50,973.00 ₱ 45,388.00
TOTAL ASSESTS ₱ 1,025,459.50 ₱ 1,627,634.25 ₱ 2,153,043.62
       
LIABILITIES, GRANT & EQUITY      
Liabilities      
Patronage Refund 198,591.20 470,245.20 547,621.80
Agricultural Development Fund 20% 99,295.60 235,122.60 273,810.90
Training Fund 49,647.80 117,561.30 136,905.45
Insurance ₱ 2,000.00 ₱ 2,500.00 ₱ 3,000.00
Accounts Payable ₱ 212,481.50 ₱ 135,021.25 ₱ 466,489.12
TOTAL LIABILITIES ₱ 562,016.10 ₱ 960,450.35 ₱ 1,427,827.27
DOLE GRANT ₱ 250,000.00 ₱ 250,000.00 ₱ 250,000.00
Equity      
Members Contribution ₱ 64,500.00 ₱ 64,500.00 ₱ 64,500.00
Income 148,943.40 352,683.90 410,716.35
Total Equity ₱ 213,443.40 ₱ 417,183.90 ₱ 475,216.35
TOTAL LIABILITIES, GRANT & EQUITY ₱ 1,025,459.50 ₱ 1,627,634.25 ₱ 2,153,043.62

E. COLLABORATION WITH STAKEHOLDER COMMITMENT

The members of Purok 6 Urban Poor Neighborhood Association are responsible and very willing to
give their commitments to support to the best of their ability to make this business operational and
profitable. As members of the Purok 6 Urban Poor Neighborhood Association, it is their commitment
to protect the interest of the association and to promote increase and growth by exercising their
rights and its function and also patronizing its programs and services.

The Purok 6 Urban Poor Neighborhood Association commits to implementing the said project with
full cooperation and support. We further commit to adhere to all rules and regulations that will be
imposed by the Department of Labor and Employment and its Accredited Co-Partner relative to this
project.

Prepared By:

Carmencita L. Casila
President

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