BUSINESS PLAN

Christine Mae H. Dahinog

Thara Faye V. Tabudlong

Alaine John M. Paquera

Keziah Kyle C. Poonon

Angel O. Gamil
Executive Summary

Objectives
1. To create a service whose primary goal is to exceed costumer’s
expectation,
2. To enhance the various steps in purifying water in order to maintain
the highest quality of water purification, and;
3. To maintain loyalty of present costumers and attract other market
segments.

Mission Statement
To provide a finest quality of purified drinking water that is accessible and
safe for a better future and a healthier community

Keys to Success
1. Water business knowledge
2. Hands on sales, financial, and marketing management,
3. Effective marketing strategies, and;
4. Passion for a successful business.

Description of the Business

Company Ownership
Serene Purified Drinking Water Refilling Station is a purified water refilling
station owned by five (5) general partners, all of which are Accountancy Business
and Management (ABM) students. Listed below are the partners’ background for
reference.

Partner's Name, Position, and Contact Information

Name of Partner Position Contact Number
Keziah Kyle C. Poonon General Partner/General Manager 09261780005
Thara Faye V. Tabudlong General Partner/Assistant Manager 09360312227
Alaine John M. Paquera General Partner 09758305349
Angel O. Gamil General Partner 09058022421
Christine Mae H. Dahinog General Partner 09161990916

Location
The business would be structured at Central Mindanao University (CMU)
Industrial Complex. A location lacking with stationed water refilling
establishments. It withholds a large population of over 2137 household. Below is
the campus map of CMU showing the CMU market.
Hours of Operation
The business will be open at 8:00 AM to 6:00 PM everyday except Sunday.
Deliveries are also available anytime within the business hours which can be
accessed by calls or texts.

Products and Services

The product offered is purified, clean, and safe water. It will be
loaded/refilled into a 20 –litter round galloon. Costumers without galloons can
purchase the readily available product of the business. A delivery service is also
available upon request of the costumer.

Manufacturing
Machinery and equipment that will be used would be the following:
1. Multimedia Sediment Filter – This type of filter removes
sediments such as rust, sand, and particles visible to the naked eye. This
employs five (5) filters.
2. Active Carbon Filter – This filter removes all organic chemicals,
pesticides, and other more chemicals that can result to foul taste and
odor.
3. Reverse Osmosis Membrane – This is the heart of the system
and the most expensive unit amongst. It removes inorganic materials,
bacteria and viruses while retaining its oxygen content.
4. Ultraviolet Lamp – This is used to ensure that water is free from
disease-causing micro-organisms.
5. Ozone Generator – The water is passed through this to prevent
bacteria growth in the product tank and prolongs the shelf life of the
water.
Management
Keziah Kyle C. Poonon – General Manager
Qualifications:
• Strong understanding of costumer and market dynamics and
requirements
• Excellent interpersonal skills (Communication, self-awareness,
trust building, problem solving and decision making)
• Excellent organizational skill
• Flexible and self motivated
Job Description:
• Maintains staff by recruiting, orienting, and training employees
• Accomplishes staff results by communicating job expectations
• Establishes strategic goals by gathering pertinent business,
financial, service, and operations information
• Accomplishes financial objectives by forecasting requirements
and maintains quality service by enforcing quality and
costumer service standards.

Thara Faye V.Tabudlong – Assistant General Manager

Qualifications:
• Excellent interpersonal skills to provide quality service to both
both internal and external costumers
• Ability to interact with different levels of personnel
• Strong organizational and time management skills
• Able to work independently yet flexible
• Reception skills including effective answering of telephone and
face to face contact with public.
Job Description:
• Maintains professional and technical knowledge by attending
educational workshops; reviewing professional publications;
establishing personal networks; and, participating in
professional societies
• Contributes to team effort by accomplishing related results as
needed
Bookkeeper
Qualifications:
• Trained in QuickBooks accounting package
• Knowledge in Microsoft Office and Internet
• Excellent interpersonal skills
• Numerate and literate
• Able to prioritize and work on own initiative
• Male or female
Job Description:
 • Maintaining the financial records of the business
• Preparing and processing payroll/s
• Reconciling all accounts periodically
• Preparing financial statements quarterly
• Calculating taxes, collecting bad debts, and analyzing financial
statements
• Producing accounting reports and income and expenditure
statements

Technical Assistant
Qualifications:
• Ability to interact with different levels of personnel
• Flexibility and availability
• Has at least 2-year Vocational Diploma
• Knows how to operate and repair a water refilling station
equipment
• Male
Job Description:
• Ensure legal compliance of packaging, both suitability for
purpose and disposal
• Strive to minimize environmental impact of packaging,
operations and waste management
• Evaluating and trailing new machinery for water processing
and improving production processes

Front liner
Qualifications:
• At least High School graduate
• Pro-active team worker
• Knows how to deal with costumers
• Knows how to drive
• Male
Job description:
• Can be an all around except manager, assistant manager, and
bookkeeper
• Receive and refills the water containers from the costumers
• Operate the machine
• Provide costumer products and services
• Act as delivery man in case the delivery staff is unavailable

Delivery Staff
Qualifications:
• Knows how to drive a tricycle and has a driver’s license
• Male
 Job Description:
• Delivers the order of the costumer via tricycle.

Keziah Kyle C. Poonon

General Manager

Thara Faye Tabudlong

Assistant General Manager

Delivery Man Frontliner Technical Bookkeeper

Assistant
The Organizational Struture

Start-up Acquisition Summary

Appendix 1 shows the breakdown of the start-up acquisition. It is
comprised of the budget for equipment, renovation for the station, delivery
tricycle, and supplies. Expenses for one (1) month rent, utilities, and salaries also
are included as some sort of margin for the starting business.

Marketing

Market Analysis
The target consumers are the residents of Central Mindanao University.
Approximately the size of our potential costumer base has 2,137 households as
of 2019. This projection is based on the data by Barangay Service Point, Barangay
Dologon.

Projected number of households, Brgy Musuan, Maramag, Bukidnon

Year No, of Household
2014 1,843.70
2015 1,899.01
2016 1,955.98
2017 2,014.66
2018 2,075.10
2019 2,137.35
 As per verbal questioning with sample respondents, results shows that a
household with an average member of five (5) consumes an average of two (2)
galloons of drinking water per week. This data shows an average of 222,285
galloons annually. The possible percentage of the market will be 50% of this
household. This gives us an annual projection of production of water by galloons
of 111,142.

Projected household consumption of drinking water (20-liter galloon)

Average Annual household
Year No. of Household Consumption/week consumption
(galloons) (galloons)
2019 2,137.35 2 222,285
2020 2,201.47 2 228,953
2021 2,267.52 2 235,822
2022 2,335.54 2 242,897
2023 2,405.61 2 250,183

Competition
Drinking water business within the campus is dominated my agua-boo
that offers free delivery services. However, the nearest drinking water refilling
station is stationed at Dologon, Maramag, Bukidnon about a kilometer away from
CMU. Other stations are also located at Valencia City, Bukidnon.
The edge of this business would be its accessibility anytime and would be
able to cater the consumers without waiting for scheduled delivery. Another
thing is its location. It is much more convenient to buy since it is only within the
campus and easier to call for its delivery service. It also offers a cheaper price in
coordination with convenience.

Opportunities
Water is the most basic need of an individual and with such a large
population, CMU lacks a stationed purified drinking water. This opens an
opportunity for the partnership into opening up a water refilling business. With
the competitors’ price range, the business foresees an opportunity of large
percentage of target consumers offering a cheaper and more convenient and
accessible product and services.

Pricing
The competitors’ price ranges from P35-P50. One competitor offers 3
galloons for P100 with free delivery. Other nearby stations offers P40 per galloon.
In comparison to the observation among the competitor’s price, the business
would be able to compete for P30 per galloon.
Advertising and Promotion
Customer awareness is the first step in promoting a new business. The
business will achieve this by advertisement by the tricycles around the campus,
social media (Facebook and Twitter) and hopefully through the word of mouth.
During the opening of the shop, the first 20 costumers will be given a card
that earns a point whenever they buy from the station. There will be certain
freebies when the card achieves a certain point.
Strategy and Implementation
The strategy is to concentrate on the target market and to actively work in
developing a dealership network, specifically local businesses. Market strategy
would include offering the latest trend in technology in purifying water to attract
costumers also through social media. Product strategy includes offering a bottling
cleaning before refilling and delivery of product anywhere, anytime.
Appendices

Appendix 1. Projected Start-up Expenses

Projected Start-up Expenses

Water refilling machine 250,000
Renovation 62,700
Delivery Vehicle (Tricycle with side cart) 80,000
Business Permit and other legal documents 15,000
Training of employees 25,000
Initial Supplies 21,800
Salary Expense 23,000
Rental Expense 5,000
Electricity Expense 8,000
Fuel Expense 2,500
Water Expense 7,000
Total Expenses 500,000

Appendix 2. Start-up capital

Start-up Capital
cash in:
Partner's Equity:
Poonon's Equity 50,000
Tabudlong's Equity 50,000
Paquera's Equity 50,000
Gamil's Equity 50,000
Dahinog's Equity 50,000
Loan Payable 250,000
Total cash in 500,000.00

Start up expenses:
Water refilling machine 250,000.00
Delivery Vehicle (Tricycle with side cart) 80,000.00
Renovation 62,700.00
Business Permit and other legal documents 15,000.00
Training of employees 25,000.00
Initial Supplies 21,800.00
Operational Expenses:
Salary 23,000.00
Rental 5,000.00
Electricity 8,000.00
Fuel 2,500.00
Water 7,000.00
Total Cash Out 500,000.00

Assumptions:
1 Operational expenses is good for one month
2 Loan is payable in 5 years at 10% interest
3 Water refilling machine and delivery vehicle are part of non-current assets

Appendix 3. Projected Cash flow Statement

Serene Purified Drinking Water Refilling Station

 Projected Statement of Cash Flows
For the fiscal year 2019-2023

2019 2020 2021 2022 2023

Cashflows from Operating Activities
Cash inflows:
Cash Sales 1,000,281 1,030,290 1,061,199 1,093,035 1,125,826
Collected receivables 333,427 343,430 353,733 364,345
Total inflows 1,000,281 1,363,717 1,404,629 1,446,767 1,490,170

Cash Outflows:
Renovation (62,700)
Business Permit and other legal documents (15,000)
Training of employees (25,000)
Initial Supplies (21,800)
Salary (276,000) (289,800) (304,290) (319,505) (335,480)
Rental (60,000) (60,000) (60,000) (60,000) (60,000)
Electricity (96,000) (100,800) (105,840) (111,132) (116,689)
Fuel (30,000) (31,500) (33,075) (34,729) (36,465)
Water (84,000) (84,000) (84,000) (84,000) (84,000)
Tax (153,469) (192,072) (198,348) (204,670) (211,033)
Total outflows (823,969) (758,172) (785,553) (814,035) (843,667)
Cash balance from operating activities 176,313 605,545 619,075 632,732 646,503

Cashflows from Investing Activities

Water refilling machine (250,000)
Delivery Vehicle (Tricycle with side cart) (80,000)
Cash balance from investing activities (330,000) - - - -

Cashflows from financing Activities

Partner's Equity:
Poonon's Equity 50,000
Tabudlong's Equity 50,000
Paquera's Equity 50,000
Gamil's Equity 50,000
Dahinog's Equity 50,000
Proceeds from loan 250,000
Service Charge (5,000)
Interest Expense (25,000) (20,000) (15,000) (10,000) (5,000)
Loan payment (50,000) (50,000) (50,000) (50,000) (50,000)
Poonon (92081.00) (115243.00) (119009.00) (122802.00)
Tabudlong (92081.00) (115243.00) (119009.00) (122802.00)
Paquera (92081.00) (115243.00) (119009.00) (122802.00)
Gamil (92081.00) (115243.00) (119009.00) (122802.00)
Dahinog (92081.00) (115243.00) (119009.00) (122802.00)
Cash balance from financing activities 420,000 (530,405) (641,215) (655,045) (669,010)
add: Cash beg balance 266,313 341,453 319,313 297,000
Net Cash Flows 266,313 341,453 319,313 297,000 274,494

Assumptions:
1 Cash sales is 75% while accounts receivable is 25% of the total sales
2 Accounts receivables are collected the following fiscal year
3 Salary expense, electricity expense, and fuel expense is expected ti increase at 5% per year

Appendix 4. Projected Income Statement

 Serene Purified Drinking Water Refilling Station
Projected Income Statement
For the fiscal year 2019-2023

2019 2020 2021 2022 2023

Revenues:
Sales 1,333,709 1,373,720 1,414,932 1,457,379 1,501,101
Total Revenues 1,333,709 1,373,720 1,414,932 1,457,379 1,501,101

Expenses:
Business Permit and other legal documents 15,000
Training of employees 25,000
Renovation 62,700
Initial Supplies 21,800
Salary 276,000 289,800 304,290 319,505 335,479.73
Rental 60,000 60,000 60,000 60,000 60,000
Electricity 96,000 100,800 105,840 111,132 116,688.60
Fuel 30,000 31,500 33,075 34,729 36,465.19
Water 84,000 84,000 84,000 84,000 84,000
Depreciation Expense 19,333 19,333 19,333 19,333 19,333
Interest Expense 25,000 20,000 15,000 10,000 5,000
Service Charge 5,000
Total Expenses 719,833 605,433 621,538 638,699 656,967

Net income before tax 613,875 768,287 793,393 818,681 844,134

less: income tax 153,468.83 192,071.64 198,348.29 204,670.22 211,033.50
Net income before tax 460,406.49 576,214.93 595,044.88 614,010.65 633,100.49

Assumption:
1. Refer to sales projection for total sales
2. Salary expense, electricity expense, and fuel expense is expected to increase at 5% per year
3. Tax rate is 25% of the net income before tax
4. Refer to table below for depreciation

Projected depreciation expense

Particulars Useful Life (yrs) Scrap Value Depreciation Expense/year
Water refilling machine 250,000 15 50,000.00 13,333
Delivery Vehicle (Tricycle with side cart) 80,000 10 20,000.00 6,000
Total 19,333

Appendix 5. Projected Balance Sheet

Serene Purified Drinking Water Refilling Station

 Projected Balance Sheet
For the year 2019-2024

2019 2020 2021 2022 2023

Assets
Current Assets
Cash 266,313 341,453 319,313 297,000 274,494
Accounts receivables 333,427 343,430 353,733 364,345 375,275
Non-current assets:
Water refilling machine 250,000 250,000 250,000 250,000 250,000
less: accumulated depreciation 13,333 26,667 40,000 53,333 66,667
Net book value 236,667 223,333 210,000 196,667 183,333

Delivery Vehicle (Tricycle with side cart) 80,000 80,000 80,000 80000 80000
less: accumulated depreciation 6000 12,000 18,000 24000 30000
Net book value 74,000 68,000 62,000 56,000 50,000

Total assets 910,406 976,216 945,046 914,012 883,102

Liabilities and Capital

Current Liabilities:
Loans payable 200,000 150,000 100,000 50,000
Total Liabilities 200,000 150,000 100,000 50,000

Partner's Equity
Poonon's Equity 50,000 50,000 50,000 50,000 50,000
Tabudlong's Equity 50,000 50,000 50,000 50,000 50,000
Paquera's Equity 50,000 50,000 50,000 50,000 50,000
Gamil's Equity 50,000 50,000 50,000 50,000 50,000
Dahinog's Equity 50,000 50,000 50,000 50,000 50,000
Total Capital 250,000 250,000 250,000 250,000 250,000
add: Retained earnings 460,406 576,215 595,045 614,011 633,100
less: dividends distributed to partners: 460,406 576,215 595,045 614,011
Total liabilities and Capital 910,406 976,215 945,045 914,011 883,100
-
Assumptions:
1. Retained earnings is distributed as dividends to the partners the following year
2. Loans payable is amortized for 5 years.

Appendix 5. Sales Forecast

Projected Sales
2019 2020 2021 2022 2023
No. of galloons 44,457 45,791 47,164 48,579 50,037
Unit Price 30 30 30 30 30
Projected Sales 1,333,709 1,373,720 1,414,932 1,457,379 1,501,101

Cash Sales 1,000,281 1,030,290 1,061,199 1,093,035 1,125,826

Receivables 333,427 343,430 353,733 364,345 375,275

Assumptions:
1. Refer to the table below for the projected production volume

Projected Annual Production in Volume

Annual household consumption Projected annual production
Year (galloons) (galloons)
2019 222,285 44,457
2020 228,953 45,791
2021 235,822 47,164
2022 242,897 48,579
2023 250,183 50,037

Assumption:
1. Production volume is 20% of the total annual household consumption

Appendix 6. Break-even Analysis

Break-even Analysis
2019 2020 2021 2022 2023

Sales Volume 29,110 26,583 27,330 28,112 28,933

Sales in Pesos 873,302 797,505 819,887 843,369 868,000

Sales 873,302 797,505 819,887 843,369 868,000

less: variable Cost 385,269 408,372 421,263 434,531 448,187
contribution margin 488,033 389,133 398,623 408,838 419,813
less: Fixed cost 488,033 389,133 398,623 408,838 419,813
Net Income 0 0 0 0 0

Assumptions for Break even:

Projected Expenses
2019 2020 2021 2022 2023
Variable Expenses:
Electricity 96,000 100,800 105,840 111,132 116,688.60
 Fuel 30,000 31,500 33,075 34,729 36,465.19
Water 84,000 84,000 84,000 84,000 84,000
Supplies 21,800
Tax 153,469 192,072 198348.294 204,670 211033.498
Total Variable Expenses 385,269 408,372 421,263 434,531 448,187
Fixed Expenses:
Salary 276,000 289,800 304,290 319,505 335,479.73
Rental 60,000 60,000 60,000 60,000 60,000
Depreciation Expense 19,333 19,333 19,333 19,333 19,333
Business Permit and other legal documents 15,000
Training of employees 25,000
Renovation 62,700
Interest Expense 25,000 20,000 15,000 10,000 5,000
Service Charge 5,000
Total Fixed Expenses 488,033 389,133 398,623 408,838 419,813
Total Expenses 873,302 797,505 819,887 843,369 868,000

Selling Price Per Unit 30 30 30 30 30