Operational Plan

Explain the daily operation of the business, its location, equipment, people, processes, and surrounding
environment.
Production
How and where are your products or services produced?
Explain your methods of:
Production techniques and costs
Quality control
Customer service
Inventory control
Product development
Blue Falcons Trucking Services provides high quality services from our highly competitive staff. Each of our
workers are trained with the proper etiquette and had good moral standings. Our drivers are briefed by new laws
and undergone random tests to ensure their quality performance are not impaired. Office staff have their
segregation of duties to ensure that less or no fraudulent activities are going inside the office premises. We have
our strict fix pricing to our customers to avoid us from involving into negotiations on prices that may be a factor
of fraud. In terms of customer service, our hospitable staff will entertain queries about our customers needs a
telephone hotline and an e-mail address is provided in order to serve our valued customers. Blue Falcons
Trucking Services believes that a good quality control is a satisfaction guarantee for customers. These controls
provide our customers the safeguard of their goods and materials in which the main purpose on why they
entrust their products into us.
Location
What qualities do you need in a location? Describe the type of location youll have.
Physical requirements:
Amount of space- The office has an ample space to ensure the convenience of our visiting customers.
Its size of 100 square meters floor area is enough to put up an office with the files and other office
paraphernalia.
Type of building- Pocot Building in which our main office is located is a commercial three-storey
building.
Zoning- The location of our business is in a zone where commercial activities are mostly held. Pocot
Building is a commercial establishment near other commercial building. The area is occupied by many
business entities, a health insurance plan office, an emporium and formerly a popular FM radio station.
This building has been advertised lately which is a big factor that our business will be found easily.
Power and other utilities- we get electricity access from our service provider in Davao del Sur, the
DASURECO and the water supply from Digos Water District, the local water service provider here in
Digos, the electric meter is commercial type meaning we get a rate that is different from industrial or
residential. We have an ample power and water resources which is also a vital factor in establishing our
business location.
Access:
Is it important that your location be convenient to transportation or to suppliers?
Since our business is mainly trucking, it is necessary that we need to have an area where transportation is
deemed considered. The convenience of our office space is also a must since we are dealing with various
businessmen.
Do you need easy walk-in access?
Blue Falcons does need an easy walk-in access so that customers will not be burdened to travel so far just to
reach our office.
What are your requirements for parking and proximity to freeway, airports, railroads, and shipping centers?
The requirements for parking is necessary since we have customers bringing their respective vehicles. We do
not want to compromise their trust with just having poor parking facilities that is why it is also considered.
Construction? Most new companies should not sink capital into construction, but if you are planning to build,
costs and specifications will be a big part of your plan.
Since we are a new and emerging company we are deeply focused on branding our services to our customers by
providing them the highest quality of trucking services they could get thus we focus our financial sources in our
equipment and vehicles. Though we planned to expand our business in the future, we are currently not thinking
about constructing a building since our office will serve as our working space and an area for queries only, since
our service is done particularly out of the office, but we do not disregard construction of a building in the future.




Cost: Estimate your occupation expenses, including rent, but also including maintenance, utilities, insurance,
and initial remodeling costs to make the space suit your needs. These numbers will become part of your
financial plan.
Rent - P 12,000.00/month
Maintenance - P 12,000.00
Insurance- Employees P 2,637.5/month (PHIC)
P 5,000/month (truck)
P 227.5/month (fire)
Total P 7,865.00/month
Utililties - P 5,200.00/month
Initial remodeling cost- P 145,000.00
What will be your business hours?
Our business hours will begin at 8 oclock in the morning until 5 oclock in the afternoon with lunch break at 12
noon. We are open on Saturdays from 8 oclock in the morning until 12 noon. We are open on special holidays
but will not be open on regular holidays.
Legal Environment
Describe the following:
Licensing and bonding requirements
The requirements for the licensing of our trucking company are DOLE (Department of Labor and
Employment), PSC (Public Service and Commision), BIR (Bearue of Internal Revenue), Common
Carrier Bond
Permits
Licensing and bonding permits in Securities and Exchange Commission, City permit/ Mayors Permit,
Land Transportation Franchising and Regulatory Board permit.
Health, workplace, or environmental regulations
Our trucks are subjected to regular emission test for environmental regulations.
Special regulations covering your industry or profession
The special regulation required by the LTFRB (Land Transportation Franchising Regulatory board) is
to comply with the certificate of public convenience.
Zoning or building code requirements
There is no building code permit because we are only renting a commercial space.

Insurance
Our insurance company is the Radiowelth Finance Corporation and will shoulder all insurance
coverage. The employees are required to comply with the Philippine Health Insurance Corporation for
health insurance.
Trademarks, copyrights, or patents (pending, existing, or purchased)
The company name and the company logo.
Personnel
Number of employees
There are 29 employees.
Type of labor (skilled, unskilled, and professional)
5 were professional, 10 skilled drivers, 2 security guards, and 12 unskilled drivers.
Where and how will you find the right employees?
During the recruitment phase of employees, the entity attempts to establish contact with potential job
applicants by job postings within the organization, advertising to attract external applicants, and
employee referrals. We will hire drivers from TESDA accredited schools, integrate with DOLE and
join job fairs.
Quality of existing staff
The drivers are properly educated for the Republic Act 4136 and other existing laws. Professionals
must be a graduate in any business related course.
Pay structure
Classification Range
Driver P 325.00 daily wage
Porter P 312.00 daily wage
Cashier P 515.00 daily wage
Accountant P 600.00 daily wage (Non-CPA)
P637.00 daily wage (CPAs)
Security Guard P 312.00 daily wage
Utility P 5,000 monthly salary
Manager (Part of BOD) P 520.00 daily wage

Training methods and requirements
Employees must join related seminars and symposium.
Who does which tasks?
Accountants records financial transactions and events with related disclosures and presentations.
Cashier responsible for cash receipts and disbursements.
Security Guards responsible for the safeguard and protection of the assets and day to day transaction
of the business.
Drivers - truck drivers provide an essential service to industrialized societies by transporting goods over
land and assures safety whatever that may come while travelling.
Porters Assist drivers during the delivery; they may have experience in basic mechanic and must
know how to deal with unexpected situations.
Utility workers- Assigned in maintaining sanitation in the business place.
Manager- manages operations, checks the performance of the business.


Have you drafted job descriptions for employees? If not, take time to write some. They really help
internal communications with employees.
Drivers - must have at least a code 3 professional license
- must be male from 25-45 years old
- not been convicted in any criminal cases
- graduate of any driving related course
- must have at least one year meaningful experience
- with good moral and pleasing working attitude
Porters preferably a graduate of technical/ vocational school
- must be male from 20-45 years old
- not been convicted in any criminal cases
- preferably knows how to fix truck issues (mechanic) and in good physique
- with good moral and pleasing working attitude
Cashier must be a graduate of any 2-4 years business related course
- male or female from 22-35 years old
- with a minimum of 2 years meaningful business experience
- with good moral and pleasing personality
Accountant must be a graduate of BS Accountancy or other accounting related course
- preferably a Certified Public Accountant or TESDA Bookkeeping NCII holder
- must know latest accounting standards and practices
- must be 22-35 years old
- with at least one year accounting related business experience
- with good moral and pleasing personality



For certain functions, will you use contract workers in addition to employees?
Yes, during renovation, contract workers are being hired.
Inventory (WALA NA NI)
What kind of inventory will you keep: raw materials, supplies, finished goods?
Average value in stock (i.e., what is your inventory investment)?
Rate of turnover and how this compares to the industry averages?
Seasonal buildups?
Lead-time for ordering?


Suppliers
Identify key suppliers:
Names and addresses
Sacred Heart Gas Station
Diversion Road, Barangay Cogon, Digos City, Davao del Sur

Type and amount of inventory furnished
-Lubricants: Break Fluid, Power-steering Fluid, Engine Oil, and Gear Oil
-Fuel
History and reliability
The Cor Jesu College traces its roots to June of 1959 when upon the request of Father Maurice
Leveille P.M.E., then parish priest of Digos and on invitation of the late Bishop Clovis Thibault,
P.M.E., three Brothers of the Sacred Heart, namely; Br. Jean Paul Elric Beaudet, S.C., Br. Clement
Tranchemontagne, S.C. and Br. Guillaume McCabe, S.C. took over the management of the 220 boys of
the Holy Cross Academy of Digos under the administration of the Religious of the Virgin Mary Sisters
(RVM). In the administration of the new Boys' Department, the Brothers partnered with six lay
collaborators, namely; Mr. Rosalio Deloria, Mr. Diosdado Ypil, Mr. Teodosio Geyrozaga, Mr. Pedro
Soriano, Mr. Rogelio Magdayao, and Mr. Alfredo Barrera.
In the business operation, the College constructed the Sacred Heart Gas Station located at
Cogon, Digos City. It was officially operated on March 23, 2007. It is envisioned to provide quality
services to the vehicle owners passing the area. The Sacred Heart Gas Station became a corporation in
2007. It received the Gold Retailer Award in 2008 for attaining the quota.
In school year 2007-2008, the Board of Trustees has appointed Br. Edgardo S. Escuril, SC as
new President. With the revision of the articles of incorporation of the College, the corporation has
elected lay members in the Board of Trustees. The first elected lay members were Dr. Sergio Opea
and Ms Nenita Malbas, CPA, MBA. In answer to present needs, the administration initiated
re-structuring of the college which eliminated the two vice-presidents.
Sacred Heart Gas Station has been known as reliable in supplying such as lubricants and fuel.

Should you have more than one supplier for critical items (as a backup)?
Since BlueFalcons is a service-entity. We can only say that the needed supplies are lubricants such as
Lubricants: Break Fluid, Power-stirring Fluid, Engine Oil, and Gear Oil and Fuel. Sacred heart Gas Station is a
reliable company so there is no need for us to have more than one suppliers.
Do you expect shortages or short-term delivery problems?
No, since Sacred Heart Gas Station is within Digos City area only it is safe to expect that there will be
no shortage or short-term delivery, except for fortuitous events, of course.
Are supply costs steady or fluctuating? If fluctuating, how would you deal with changing costs?
Our services will be Purchase-Order, since we will render services basing on customer contract so we
can say that the use of lubricants and fuel will be fluctuating. Hence, the purchase of lubricants and fuel will also
be fluctuating. To deal with the cost we will establish a budget for the purchase of lubricants and fuel. If the
actual cost differs from the budgeted amount there will be a variance analysis and necessary action will be taken.
Credit Policies
Do you plan to sell on credit?
Yes.
Do you really need to sell on credit? Is it customary in your industry and expected by your clientele?
Yes since not all customers have their cash readily available. Yes, every trucking business has been
involved in credit payments.
If yes, what policies will you have about who gets credit and how much?
How will you check the creditworthiness of new applicants?

The Blue Falcons Trucking Services will establish a concrete and reliable credit policy based on the past
knowledge of the proprietors: The 5 Cs of Credit. We will identify the credit worthiness of a customer
by his Capacity or whether the customer has the adequate capacity to pay, Character that is important
for dealing with disputes, Capital if the customer has steady asset or savings growth, Condition which
pertains to customers economy, and the Collateral which he inspects whether our entity has full and
sole control. The result in the assessment will determine by how much will be the credit limit for the
said customer. The patronage of the customer will also be a basis for granting a credit application.
What terms will you offer your customers; that is, how much credit and when is payment due?
The terms will range from 15 to a maximum of 60 days the maximum credit will depend on the credit
limit of the customer based upon the assessment and records.
Will you offer prompt payment discounts? (Hint: Do this only if it is usual and customary in your
industry.)
Yes
Do you know what it will cost you to extend credit? Have you built the costs into your prices?
Yes however the additional cost was not integrated into our prices. In cases where customers avail our
service on account, we will establish an additional interest rate so that worthless accounts could be
offset against the interest of the other accounts.
Managing Your Accounts Receivable
If you do extend credit, you should do an aging at least monthly to track how much of your money is tied up in
credit given to customers and to alert you to slow payment problems. A receivables aging looks like the
following table:
Total Current
30 Days Past
Due
60 Days Past
Due
90 Days Past
Due
Over 90 Days
Past Due
Accounts
Receivable
Aging
0%
1-15 = 5%
16-30 = 10%
31-45 = 12%
46-60 = 15%
61-75 = 18%
76-90= 25%
worthless


You will need a policy for dealing with slow-paying customers:
When do you make a phone call?
When do you send a letter?
When do you get your attorney to threaten?
At the end of the credit term and if the customer still didnt pay the account they are bound to
pay, we will make a phone call once. If the customer will not reply within 15 days after the phone call,
we will send a demand letter to notify the customers about the accounts and if still, the customer will
not pay reply to the letter, we will still send another letter but only a maximum of 3 times. If still the
customers will not reply to the letter we have send thrice, we will get an attorney as our spokesperson to
the customer so that legal actions will take place if customer will still not pay the said accounts they are
bound to pay.



Managing Your Accounts Payable
You should also age your accounts payable, what you owe to your suppliers. This helps you plan whom to pay
and when. Paying too early depletes your cash, but paying late can cost you valuable discounts and can damage
your credit. (Hint: If you know you will be late making a payment, call the creditor before the due date.)
Do your proposed vendors offer prompt payment discounts?
No.
Management and Organization
Who will manage the business on a day-to-day basis? What experience does that person bring to the business?
What special or distinctive competencies? Is there a plan for continuation of the business if this person is lost or
incapacitated?
~The company will hire a well trained professional with a 2-year minimum experience in the field. He/she must
have an approachable, honest, trustworthy, truthful, good communication skills, patient and motivated
personality to create a good working environment among him/her and other employees. If he/she were to be
incapacitated from work, the process of hiring another worthy manager would take place or training another
employee to take the place of the former manager.
If youll have more than 10 employees, create an organizational chart showing the management hierarchy and
who is responsible for key functions.
Include position descriptions for key employees. If you are seeking loans or investors, include resumes of
owners and key employees
.





Professional and
Advisory Support
List the following:
Board of directors
o Jason Boyd Aldanese he has been previously related in various business ventures relating
trucking, former accounting head of DOLE Philippines in Kidapawan North Cotabato, and
Partners
Managing Partner
Maintenance crew
& other services
Servicing
Department
Financial & Accounting
Department
Utility Workers
Security Guards
Drivers
Porters
Accountant
Cashier
currently an owner of 6 10 wheeler trucks that has been employed at different businesses such
as DOLE Philippines, Pepsi Cola, and Stanfilco.
o Carlito Sanoria Jr. A Certified Public Accountant previously the senior accountant of
Ledoux Corporation in Brgy. Cogon Digos City and a former insurance agent of Radiowealth
Finance Corporation.
o Nathaniel Maghinay A full time businessman. Owns a piggery at Jose Abad Santos, Davao
Occidental, former accountant of Metropolitan Bank and Trust Company Kidapawan
Branch
o Lester Cabano an owner of a rice milling facility at Matanao Davao Del Sur and a ricefield
owner. Formerly Accounting staff of Development Bank of the Philippines- Digos Branch.
o Gale Charm Seerez after gaining a Masters Degree on Business Administration in De La
Salle University, she decided to be the COO of Blue Falcons Trucking Industry and manage
the companys operations. With experiences from her former work at S&R BGC Branch, she
came back from her hometown to live a simple life and manage this Trucking Services
o Christian Lasala a former OFW for 6 years, he came back with enough investments from his
former work as an accountant for SILVER METAL INT'L. CO. LLC in Dubai. Currently
owns CJL Foods Inc.
o Paolo Giovanni Garcia is the head of City Treasurers Office in Digos City and formerly the
head of OCEEM Digos City. He owns a tract of agricultural land located at brgy. Kapatagan
Digos City and real estates at Solariega Residence in Davao City.
Management advisory board
o Carlito Sanoria Jr.
o Nathaniel Maghinay
o Gale Charm Seerez
Attorney
o Atty. Johari G. Baa
Accountant
o Carlito Sanoria Jr.
Insurance agent
o Christine G. Maghanoy
Banker
o Metrobank and Trust Company

Consultant or consultants
o Mr. Edgel Earl Abear, CPA MBA
o Mr. Alvin Genota
Mentors and key advisors
o Mr. Michael Barro, CPA
Personal Financial Statement
Include personal financial statements for each owner and major stockholder, showing assets and liabilities held
outside the business and personal net worth. Owners will often have to draw on personal assets to finance the
business, and these statements will show what is available. Bankers and investors usually want this information
as well.
Jason Boyd Aldanese- Financial Statements
Asset
Cash on Hand 239,994.73
Cash in Bank 250,248.00
Land 4,250,000.00
Account Receivables 650,000.00
Service Vehicle 3,450,000.00
Accumulated Depn 450,000.00 9,290,242.73
Liabilities
Accounts Payable 450,000.00
Mortgage Payable 2,000,000.00
Loans Payable 3,260,892.35 5,710,892.35
Net Worth 3,579,350.38






Lester B. Cabano Financial Statements
ASSET
Cash on hand P 470,000.00
Cash in bank 850,000.00
Accounts Receivable 252,000.00
Building 757,000.00
Land 3,100,000.00
Other assets 945,000.00 6,375,100.00
LIABLITIES
Accounts payable 700,000.00
Loans payable 560,000.00
Mortgage payable 800,000.00
Other liabilities 1,120,000.00 3,180,000.00
Net worth 3,195,100.00
Nathaniel Maghinay- Financial Statement
Assets
Cash on Hand 325,700
Cash in Bank 713,125
Accounts Receivables 550,000
Land 1,280,000
Building 850,000
Vehicle 970,000
Accumulated Depn 300,000
Investments 1,516,532 P 5,905,357
Liabilities:
Accounts Payable 632, 520
Mortgage Payable Land 820,000
Loans Payable 408,120
Other payables 1,232,580 P3,093,220
Net Worth P2, 812,137
Christian John R. Lasala- Financial Statements
Assets
Cash on Hand P 425,000
Cash in Bank 1,450,000
Accounts Receivables 350,000
Land Held for Sale 1,691,000
Land 1,370,000
Building 950,000 P 6,236,000

Liabilities
Accounts Payable P 290,000
Mortgage Payable Land 820,000
Loans Payable 940,000
Notes Payable 760,000 2,810,000
Net Worth P 3,426,000


Carlito Sanoria Jr. Financial Statements
Assets
Cash on Hand P 25,523.00
Cash in Bank 730,673.33
Cash on Time Deposit 2,504, 640.72
Vehicle 1,000,000.00
Accumulated Depn 450,000.00
House and Lot 750,000.00 P 4,560,837.05
Liabilities
Accounts Payable 25,000.00
Loans Payable 560,340.29 P 585,340.29
Net Worth P 3,975,496.76

Gale Charm Seerez Financial Statements
Asset
Cash on Hand 120,000.00
Cash in Bank 551,278.80
House and Lot 4,570,000.00
Investment in Trading Securities 1,678,330.92 6,919,609.72
Liabilities
Accounts Payable 128,882.09
Mortgage Payable 3,300,000.00 3,428,882.09
Net Worth 3,490,727.63

Paolo Giovanni Garcia- Financial Statements
Asset
Cash on Hand P 1,163,911.79
Cash in Bank 1,540,233.78
Land 6,540,000.00
House and Lot 5,560,000.00 14,804,145.57
Liabilities
Loans Payable 2,980,244.57
Mortgage Payable 2,302,057.00
Bonds Payable 980,000.00 6,262,301.57
Net worth 8,541,844.00
Startup Expenses and Capitalization
You will have many expenses before you even begin operating your business. Its important to estimate these
expenses accurately and then to plan where you will get sufficient capital. This is a research project, and the
more thorough your research efforts, the less chance that you will leave out important expenses or
underestimate them.
Even with the best of research, however, opening a new business has a way of costing more than you anticipate.
There are two ways to make allowances for surprise expenses. The first is to add a little padding to each item
in the budget. The problem with that approach, however, is that it destroys the accuracy of your carefully
wrought plan. The second approach is to add a separate line item, called contingencies, to account for the
unforeseeable. This is the approach we recommend.
Talk to others who have started similar businesses to get a good idea of how much to allow for contingencies. If
you cannot get good information, we recommend a rule of thumb that contingencies should equal at least 20
percent of the total of all other start-up expenses.
Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts, and terms of
proposed loans. Also explain in detail how much will be contributed by each investor and what percent
ownership each will have.

Blue Falcons Trucking Services Startup Expenses:
Licensing, Bonding and other Legal Fee
(This estimate is based on the given data researched
at http://www.formsphilippines.com/ and
http://www.doingbusiness.org/ regarding various
permits and its cost based on Davao City with some
estimates asked from different resources and based
on estimates by real truckers including SOPs)

P 34,152.00
Purchasing of Trucks
(our plan is to purchase an initial ten trucks and we
will finance these trucks to a financing institution
probably Radiowealth Finance Corporation)
P2,000,000.00 (cash in)
P6,000,000.00 (financing)
P 8,000,000.00
Rent
(Rent is estimated based on past experiences of the
proponent and current average rent expense. Since
the rent is on a contract basis we indicate an annual
rent expense )
P 144,000.00
Advertising/Marketing Expense
(Estimated based on the prevailing radio
advertisement rate from Radio Mindanao Network
and DXPM 106.3)
P 320,000.00
Renovation / Remodeling
(Estimated by asking an engineer about repairs cost
and current prices of materials. Renovation includes
purchasing office equipment eg. computer, software,
copier, printer, telephone, furniture and other office
supplies)
P 145,000.00
Opening of Bank Accounts
(Estimated using Metrobank Checking Account.
This cost is for maintaining an initial deposit)
P 10,000.00
Utility
(Estimated using past experience on having a
commercial office space. This include telephone,
water, and electricity. This is shown on an annual
basis)
P 62,400.00
Creating Patent, Logo and Painting works
(This is estimated by computing probable costs
associated in creating logo and design painted in
trucks and in the office but will not be registered in
Intellectual Property of the Philippines.)
P 17,000.00
Daily Trucking Expenses expense for one year
(This includes allowance for drivers and fuel. The
cost of allowance is based on past experience and
reasonable judgment. The fuel is computed based on
the current selling price of fuel in Digos City
particularly in Sacred Heart Gas Station assuming
that trucks are fueled every week for 5 trucks )
1,091,880.00
Total P 9,824,432.00

The entity will acquire a long term loan from
Financial Institution Amount of loan Length of term Interest paid
Metrobank 2,000,000 2 years 8.87%
RFC 6,000,000 2 years 8.33%

Capitalization:
Since the Blue Falcons Trucking Services is a
partnership each partner will contribute their
money property and industry, the sharing will be
equal or 1/7 of each individual will have the
ownership. This will be the capitalization.
Jason Boyd Aldanese will contribute
Cash in Bank 250,000.00
Cash on Hand 100,000.00
Land (net Mortgage) 2,250,000.00
Total investment P 2,600,000.00

Nathaniel Maghinay will contribute
Industry
Cash on Hand 250,000.00
Cash in Bank 650,000.00
Investment 1,516,532.00
Total Investment P2, 876,532.00







Christian John R. Lasala will contribute

Cash on Hand 390,000.00
Cash in Bank 1,150,000.00
Accounts Receivables 320,000.00
Land ( less mortgage ) 980,000.00
Total Investment 2,840,000.00

Lester Cabano will contribute the following:
Cash on hand P 300,000.00
Land 3,100,000.00
Mortgage payable 800,000.00
Total Investment P 2,600,000.00









Carlito Sanoria Jr. will contribute the following
Industry
Cash in Bank 630,000.00
Cash on Time Deposit 1,900,000.00
Total Investment 2,530,000.00

Gale Charm Seerez will contribute the following:
Industry
Cash on Hand 150,000.00
Total investment 150,000.00


Paolo Giovanni Garcia will contribute the
following:
Cash on Hand 450,000.00
Cash in Bank 540,233.78
Land 2,450,000.00
Mortgage (500,000.00)
Total Invsestment 2,940,233.78