BUSINESS PLAN OF

LOKIEH LOGENE’S SORBET-HOUSE

EXECUTIVE SUMMARY

1. DESCRIPTION OF THE BUSINESS

Lokieh Logene’s Sorbet-House is a special ice cream store for those people who

crave for delicious yet affordable ice creams. These ice creams— or what Filipinos

would like to call “sorbets” — would not only give the tongue a sense of satisfaction but

also sustain enough nutrition to the body, hence making our body healthy.

Lokieh Logene’s Sorbet-House has different varieties of sorbets made from the

most nutritious food groups. These are camote sorbet, banana sorbet and squash

sorbet. These ice creams are covered with different toppings such as cheese, peanuts

and sprinkles.

These nutritious products are securely placed in a tightly-sealed cup, cooled in a freezer

for five hours and will be placed in an ice box for selling purposes.

Lokieh Logene’s Sorbet-House does not only produce high quality products but

also develops and encourages the entrepreneurial skills of the students such as

planning, marketing, risk-taking, etc.

The sources and ingredients of these products were bought in the market to

minimize expenses. We are to sell these products inside and outside the school

campus. During break time we will also introduce our products room to room as our way

of promotion. Students and teachers are our target customers. Oftentimes during

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weekends we will sell our products near our homes by which our customers are our

neighbors and by passers.

2. PROFILE OF THE ENTREPRENUERS

Lokieh Logene organization is composed of entrepreneur students who have the

potential to handle such businesses. All of these students have relevant experiences in

buying and selling ice creams in public market.

Name of the Owner:

Lead Members:

Lorraine Abellana Grade 12 Senior High Student

18 years old

Abucayan Norte, Calape, Bohol

Nina Cuanan Grade 12 Senior High Student

18 years old

Bentig, Calape, Bohol

Geraldine Dominise Grade 12 Senior High Student

18 years old

Candungao, San Isidro, Bohol

Members:

Kiehl Cambangay Grade 12 Senior High Student

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 Lowille Rulos Grade 12 Senior High Student

Name of the Advisors

DEBIE MARIE Special Science Teacher 1

SAMIJON 2 years Teaching Experience

Area: Agricultural Fishery

Currently Teaching: Entrepreneurship and

Science

3. CONTRIBUTIONS TO THE ECONOMY

The project's contributions to the community and the country are to:

 Help the local farmers who grow camote, bananas and squash to

make a better living

 Help 25% of the students who suffered from malnourishment

 Encourage people to grow vegetables and fruits in their garden

 Improve standard of living

 Source of allowance for school expenses during high school

OVERVIEW OF THE BUSINESS

I. Name of Business: Lokieh Logene’s SORBET- HOUSE

Address of the Business: Mayor Anunciacion R. Tuazon Nat’l School of

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 Fisheries, Calape, Bohol

II. Nature of Business: Cooperatives

III. Mission: Lokieh Logene is committed in ensuring customers’

satisfaction by providing the tastiest, most nutritious

and budget-friendly ice creams.

IV. Vision: Lokieh Logene envisions students and teachers being

satisfied with the nutritious and budget-friendly ice

creams.

V. Values: To supply sufficient, healthy and sustainable ice

creams to our valued customers

SECTION 1: MARKETING PLAN

The Problem / Need

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 A. People nowadays tend to eat more meat and sweets rather than

eating healthy vegetables and fruits.

B. People need food that doesn’t only satisfy their taste buds, but also

give them enough vitamins and nutrients to keep their body healthy.

1.1. Description of the Product

Ice creams are famous Filipino treats. Lokieh Logene’s Sorbet-House

brings the unique ingredients in making such ice creams. These are camote,

banana and squash— all of which are not yet marketed by other entrepreneurs in

the community. It is not just mouth-watering, but it is also capable in making our

body healthy.

Detailed description of the product:

Product/service Camote Sorbet Banana Sorbet Squash Sorbet

Medium-sized, Medium-sized,
Medium-sized,
Specification cool Yellowish fresh Orangey
chilly, Violet
(e.g. size, color, Lakatan Banana, Squishy Squash,
Camote, topped
quality) topped with topped with
with cheese
peanuts sprinkles
Packaging The delicious and The sweet The cold and

mouth-watering delicious sorbets yummy sorbets

sorbets are pack are pack in a well- are pack in a well-

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 Product/service Camote Sorbet Banana Sorbet Squash Sorbet
in a well-sealed sealed cup
sealed cup
cup

1.2. Comparison of the Product with its Competitors

People can see a lot of entrepreneurs selling dirty ice creams and soft ice

creams in streets and schools. But what makes our ice cream different is that the

main ingredients are unique and nutritious. They are made up of camote, banana

and squash— all of which sustains nutrients and energy to keep our body strong

and healthy. It also comes with inviting toppings; these are cheese, peanuts and

sprinkle. Our enterprise can guarantee you that our product is of high-quality, and

follow the sanitation rules.

1.3. Location

The business is to be located in front of Mayor Anunciacion R. Tuazon

National School of Fisheries. It is purposefully located where it is accessible to

our target market.

1.4. Market Area

The market area of Lokieh Logene’s Sorbet-House is located within the vicinity of

Mayor Anunciacion R. Tuazon National School of Fisheries and Bentig-Calunasan

Elementary School, particularly between the area of Bentig and Calunasan, Calape,

Bohol.

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1.5. Main Customers

The students and faculty of Mayor Anunciacion R. Tuazon National School of

Fisheries are our main customers.

1.6. Total Demand

Mayor Anunciacion R. Tuazon National School has approximately 1,000 students

and 30 faculty members. The business will target 80 % of the total population of the said

school.

1.7. Market Share

There are similar businesses in the area, but is not a permanent business.

Other entrepreneurs often sell ice creams only when there are special occasions in the

school. Because of that, we guarantee there would be 80% share.

1.8. Selling Price

The following are the selling price of the sorbets:

Sorbets Price
Camote Sorbet Php 5.00 per cup
Banana Sorbet Php 5.00 per cup
Squash Sorbet Php 5.00 per cup

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1.9. Sales Forecast

AVERAGE NO.

SORBETS CUPS SOLD PER PRICE TOTAL

WEEK
Camote Sorbet 1,800 5.00 9,000.00
Banana Sorbet 1,700 5.00 8,500.00
Squash Sorbet 1,900 5.00 9,500.00
TOTAL 27,000.00

1.10. Promotional Measures

 The first ten underweight customers will receive a sorbet for

free.
 Every purchase of 5 sorbets a day will have a chance to win an

extra sorbet.

1.11. Marketing Strategy

One way of promoting our products is through the following:

1) Printed information answers the possible questions of the customers

about our products. It gives more knowledge that would satisfy them

and will be distributed to the passers as we expect them to be our

valued customers.

2) Posters which contains some information about the products and

organization. It will be posted in different bulletins.

3) Each Member will sell the products.

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1.12. Marketing Budget

The marketing budget will be Php 300,000.00

SECTION 2: PRODUCTION PLAN

2.1. Production Process

Steps Camote Sorbet Banana Sorbet Squash Sorbet

1. Prepare all the raw Prepare all the raw Prepare all the raw

materials, Tools and materials, Tools and materials, Tools and

Machinery. Machinery. Machinery.

2. Line all the ingredients. Line all the ingredients. Line all the ingredients.

3. Peel the camote and Peel the banana and Peel the squash and

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 slice it into thin shapes. slice it into thin shapes. slice it into thin shapes.
4. Put it into a clean pot Put it into a clean pot Put it into a clean pot

and put 40 glasses of and put 40 glasses of and put 40 glasses of

water. water. water.

5. Heat it up and wait until Heat it up and wait until Heat it up and wait until

the camote is squishy. the banana is squishy. the squash is squishy.

6. Mix it with the Mix it with the Mix it with the

evaporated milk and evaporated milk and evaporated milk and

sugar. sugar. sugar.

7. Put it in a clean Put it in a clean Put it in a clean

container and let it cool container and let it cool container and let it cool

for a while. for a while. for a while.

8. Scoop your desired Scoop your desired Scoop your desired

amount and place it in a amount and place it in a amount and place it in a

well-sealed cup. well-sealed cup. well-sealed cup.

9. Add the cheese Add the peanut toppings Add the sprinkle

toppings toppings
10. Cover your cups and Cover your cups and Cover your cups and

place your products in a place your products in a place your products in a

freezer for better freezer for better results. freezer for better

results. results.
11. After 10 hours, your After 10 hours, your After 10 hours, your

products are ready for products are ready for products are ready for

selling. selling. selling.

2.2. Fixed Capital

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 Buildings, Machinery and Equipment Price

Building (5x10 meters) P100, 000.00

Stove P15, 000.00

Freezer P25, 000.00

Cash Register P20, 000.00

Cabinet P20, 000.00

2.3. Life of Fixed Capital

The estimated life of each fixed assets is estimated based on the period over

which the assets are expected to be available for use. The estimated lives of fixed

assets are reviewed periodically and are updated if expectations differ from the previous

estimates due to physical wear and tear, technical or commercial obsolescence and

legal or other limits use of the assets.

2.4. Maintenance and Repairs

Maintenance will be done weekly for the freezer, cash register and the stove to

ensure its functionality. If repairs of the equipment are needed, we will hire a

professional technician or an expert. To the building and cabinet, if there are damages,

repairs will be done immediately to avoid accidents.

2.5. Sources of Equipment

The equipment must be acquired two weeks before the production starts. All the
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equipment must be obtained through face-to face bases and not online transaction to

ensure proper warranties. It could be bought in malls or direct resellers. The money to

be used will be from the owners’ contributed money.

2.6. Planned Capacity

The capacity to be used is approximately P180, 000.00 for all the equipment and

buildings.

2.7. Future Capacity

Spare Capacity is considered so that there will be amount to be used if ever there

will be a shortage of the plan. If ever it will be used in, buying another equipment or

salary of the technician to be hired and also it could be additional cash for the pre-

operating expenses.

2.8. Terms and Conditions of Purchase Equipment

The terms and conditions of the purchased equipment shall refer to the stated

terms and conditions of the equipment when in it was purchased.

2.9. Factory Lay-out

Cabinet
Sink Freezer
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 Stove

Cash Register

Exit Entrance

2.10. Raw Materials

20 kilos Camote 70 packs well-sealed cups

20 kilos Squash 20 packs small plastic spoons

20 kilos Banana (Tundan) 10 packs of peanuts

30 cans evaporated milk 10 packs of sprinkles

30 kilos white sugar 10 boxes of cheese

2.11. Cost of Raw Materials

Item Unit Price Ouantity Unit Cost

Camote Php 50.00 10 kilos Php 500.00
Banana Php 50.00 10 kilos Php 500.00
Squash Php 50.00 10 kilos Php 500.00
Evaporated Milk Php 35.00 30 cans Php 1,050.00
White Sugar Php 30.00 30 kilos Php 900.00
Well-sealed cups (small) Php 80.00 50 packs Php 4,000.00
Small Plastic Spoons Php 50.00 20 packs Php 1,000.00
Peanuts Php 30.00 10 packs Php 300.00

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 Sprinkles Php 30.00 10 packs Php 300.00
Cheese Php 30.00 10 boxes Php 300.00
Php 9,350.00

TOTAL

2.12. Raw Materials Availability

Raw materials are all available in the local market. It will be purchased on the

qualified supplier approved by our adviser.

2.13. Labor

All members of the business are said to take part in labor. It may be as a cashier,

as a purchaser and production operator. But for security purposes, the members will

hire 3 people to help in manufacturing the product. Production is done through cooking

and packing.

2.14. Cost of Labor

The cost of labor will be Php 150.00 per day.

2.15. Labor Availability

Labor is highly available since the owners of the business planned to hire those

people who are living near Calunasan, Calape, Bohol.

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2.16. Labor Productivity

Owners of the business decided that cash incentives or bonuses will be given

every end of the month.

2.17. Factory Overhead Expenses

Factory overhead is computed per month.

Water Bill 300.00

Electricity Expense 1,000.00
TOTAL 1,300.00

2.18. Production Cost

The production cost per unit is Php 3.00

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SECTION 3: ORGANIZATION AND MANAGEMENT PLAN

3.1. Form of Business

The type of business ownership will be cooperative; in which members pool

money, skills and other resources and share profit and loss. It is to be run by students

themselves. Mutual support and motivation are needed for the business to last longer.

3.2. Organizational Structure

Owners/Management

Production Team Sales Personnel

3.3. Business Experience and Qualifications

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Owner- responsible for the management and accountability of the business itself, at the

same time, they are the ones who will produce the product.

 Oversees daily production and ensures product quality

 Responsible in purchasing raw materials

Sales Personnel – They are responsible for the advertisement, selling and promoting

of the product.

 Should be high school graduate

 Should have pleasing personality

Production Team – They are the ones responsible for the production of the product, at

the same time, they are the ones who will maintain the quality of the product.

 Must be a good in following instructions

 Must be hardworking

3.4. Pre-operating Activities

 Creating a product prototype

 Testing product prototype

 Validating product prototype

 Promotional Activities

3.5. Pre-operating Expenses

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 Free taste (20 cups of sorbet) Php 100.00
Tarpaulin (10x5 inches) Php 100.00
Flyers Php 100.00
Total Pre-operating Expenses Php 300.00

3.6. Equipment

Kitchen Utensils Price

Pot Php 1,500.00
Ladles Php 500.00
Knife Php 300.00
Chopping Board Php 300.00
Ice Box Php 2,500.00
TOTAL Php 5,100.00

3.7. Administrative Expenses

Item Quantity Price Cost

Record book 1 Php 80.00 Php 80.00
Ballpen 3 Php 5.00 Php 15.00
Bondpapers 2 Php 10.00 Php 20.00
Stapler 1 Php 30.00 Php 30.00
Calculator 1 Php 80.00 Php 80.00
Staple wire 5 Php 7.00 Php 35.00
TOTAL Php 250.00

SECTION 4: FINANCIAL PLAN

4.1. Project Cost

A. Total Cost of Ingredients (Per Week)

Item Unit Price Ouantity Unit Cost

Camote Php 50.00 10 kilos Php 500.00
Banana Php 50.00 10 kilos Php 500.00
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 Squash Php 50.00 10 kilos Php 500.00
Evaporated Milk Php 35.00 30 cans Php 1,050.00
White Sugar Php 30.00 30 kilos Php 900.00
Well-sealed cups (small) Php 80.00 50 packs Php 4,000.00
Small Plastic Spoons Php 50.00 20 packs Php 1,000.00
Peanuts Php 30.00 10 packs Php 300.00
Sprinkles Php 30.00 10 packs Php 300.00
Cheese Php 30.00 10 boxes Php 300.00
Php 9,350.00

TOTAL

B. Total Production cost (Per Week)

Per Day Per Week

Labor cost (3 persons at Php 150.00 per day) Php 450.00 Php 2,250.00
Transportation (2 way) Php 14.00 Php 70.00
Electric Cost (freezer) Php 20.00 Php 100.00
TOTAL PRODUCTION COST Php 770.00 Php 2,420.00

C. Total Project Cost

Php 9,350.00 + Php 2,420.00= Php 11,770.00

The total project cost is Php 11,770.00

4.2. Financing Plan and Loan Requirement

Sources of Funds : The owners or members of the business

Each member will contribute Php 60, 000.00 to raise Php 300, 000.00 that is

equivalent to the marketing budget.

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4.3. Security for Loan

Since loan requirement is not needed there will be no security for loan.

4.4. Total Sales

Gross sales: Php 27,000.00

Less: Cost of goods sold Php 11,770.00
NET PROFIT Php 15, 230.00

4.5. Flow Statement

LOKIEH LOGENE’S

SORBET-HOUSE

Cash Flow Statement

Cash sales 27,000.00

Collection of receivables 0.00
TOTAL CASH INFLOW 27,000.00
CASH OUTFLOW
Purchase of raw materials 9,350.00
Payment for labor costs 2,250.00
Payment for electrical charges 100.00
Transportation 70.00
TOTAL CASH OUTFLOW 11,770.00
Net Cash Inflow 15, 230.00
Add: Cash Balance,beginning 0.00
Cash Balance,Ending 15, 230.00

4.6 Break-even Point (BEP)

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 Costs ÷ Price = Breakeven Point in Units

Break-even
SORBETS Cost Price
Point in Units
Camote Sorbet 3.00 5.00 0.60
Banana Sorbet 3.00 5.00 0.60
Squash Sorbet 3.00 5.00 0.60
TOTAL 1.8

4.7 Return on Investment (ROI)

Net Income = 15, 230.00 = 1. 29

Total Assets 11,770.00

1. 29 x 100 = 129%

4.8. Financial Analysis

Return on Investment (ROI) measures overall asset productivity, a measure of

how well assets have been employed by management. Based on the results of the

operation, the business is profitable.

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