CHAPTER 1

DESCRIPTION OF THE BUSINESS

This chapter describes the business relating it’s the business Identity,

description of the service, organizational type, organizational form and graphic

identity.

Business Identity

The Speedfast trucking delivery services come from the mind of the four

proponents namely: Carmelyn Retor, Rachelle Marie Oclaman, Romel Cajuyong

and Sushmei Jubane. It is a great inspiration to the four persons to eventually

pursue an idea of having the fastest and convenient trucking delivery services.

The “Speedfast” represents the goal to continue higher competition of

transporting product to the costumer with fast, efficient and effective delivery.

Description of the Service

The Speedfast is the type of business that will offer trucking services. The

business will open at 7:00 am until 7:00 pm at night. The business will be

provided logistic services that transport the freight from the contract clients to

another with the right blend of safety and security delivery services needed. The

business will find a quality and effective services for the client’s satisfaction by

having affordable price and fast delivery of goods and freight. It will load different

goods and freight through hauling from the small businesses such as farming,
poultry, and livestock. It will also include large businesses like manufacturer,

companies, enterprises and industries, and other type of business. It will also

offer truck for rent to form another service which some of the clients will request

to move any belongings and freight with safety services. Aside from the contract

and verbal consignment, between the customers and proponents which build

with confidence and trust to negotiate each other about loading and unloading of

cargoes, the business will also accept online negotiation to deliver directly the

non-perishable, perishable and refrigerated goods to any areas of Mindanao.

There will be an intended truck for perishable, non-perishable and refrigerated

goods in delivery. The trucks that will be used for perishable goods have a

wooded or plastic crate, cardboard, container (pallets), trays, basket, plywood

crates, bunches and gauze sacks or plastic sacks inside to stow the different

classification of perishable goods. The trucks for non-perishable goods will be

protected inside by foam that covers around the truck to avoid devastation of the

goods. Also, there will be a designated truck for frozen goods; it will have a

thermostat inside the truck to control the different temperature zones to prevent

from spoiling and melting of goods.

It will require bigger capital to invest and negotiate more companies to

gain higher profit. According to Queensland business, in business, negotiation

skill is important in both informal day-to-day interactions and formal transaction

such as negotiating a condition of sales, lease, service delivery and other legal

contracts. Good negotiation contributes significantly to business success, as

they:
  Help build better relationship

 Deliver lasting, quality solution rather than poor short-term solutions

that do not satisfy the needs of either party

 Help avoid future problem and conflicts

A good negotiation will leave each party satisfied and ready to do business with

others by delivering and picking up the product after the contract signing and

verbal consignments.

Organizational Type

The Speed fast trucking services is a business market type where it will

provide convenient access to the customers to deliver the goods and freight in a

standard way of delivering through quality, quantity (with no more, no less of

goods and freight), with the right time of delivering the goods and freight and yet

at a minimum cost. It is also a type of business where the business owners and

clients will negotiate to process the transaction through shipment delivery

whether pick up or door to door (warehouse to warehouse) and truck renting

services.

Organizational Form

The business will be owned by proponents, namely Carmelyn Retor,

Rachelle Marie Oclaman, Romel Cajuyong and Sushmei Jubane under the

general partnership where they will contribute an equal capital to build and form a

trucking delivery business. Speedfast trucking services will have an estimated

capital of PHP 50,000,000.00 to arise the partnership business. In terms of profit

agreement and loss. The four partners will equally receive the right amount of

percentage (25%) from what they will have earned in the business, every year

end the four partners will get their share.

In addition, the proponents agreed to make another alternative way of

distribution of share when it comes to assets and liabilities of the business. Since

it cannot prevent someone to left the business, the proponents decide that the

business partner will get one-fourth (25%) of its original investment and will fully

get his/her share as for the year end. The remaining liabilities of partners

concerning to the business, the retaining partner will only liable to pay at least

(10%) each as for the agreement of general partnership. Moreover, since it

cannot also prevent someone to die. The business partner that passed away will

get his full investment but he/she cannot get his/her share. The entitled position

he or she has will be replace by his/her closest family that will capable to do his

responsibilities as one of highest position of the company. If the business will be

dissolved or disband the four partners will equally divide all the assets and the

liabilities of the business.

Graphic Identity

The picture emphasizes the permanent business logo as a trademark of

the business.
speedfast Trucking
Flash
Delivery
delivery,

Figure Services
1. delivery is to Speedfast Logo

move.

The proponents think critically to form a unique logo to represent the

speed and consistency with the right blend of safety and security of the freight

delivery of the business. It shows courage and dedication of the business that

reflects to the proponent’s identity. The logo of the Speedfast trucking delivery

services is personally made and agreed by the four proponents who have the

combination of knowledge and idea to determine the business logo that

symbolizes the empathic desire and hard work for the business.

The tiger represents the fastness which the business will provide for

client’s satisfaction. It is inspired the strong foundation to create business

partnership between the four proponents. It describes the proponents’ desire to

build the business in spite and despite of struggle to achieve the right strategy for
the business to take advantage but still the proponents get the most effective

way that will stand to the uniqueness of the business. The lightning symbolizes

the innovative ideas of the proponents to be one of the fastest trucking delivery

services. This will be moving towards the vision, mission, goals and objectives of

the business. It is generally thought to be a positive symbol as it embodies

strength and toughness to attract people to be part of the trucking services

business. It figures out the versatility of services related to the operation process

which indicates the stability of the fast and quick delivery services it will offer.

Slogan

“FLASH DELIVERY, DELIVERY IS TO MOVE.”

The Speedfast Trucking Delivery Services slogan is inspired by a cheetah

and lightning as it both moving like a flash. It indicates the fastest delivery of the

goods and freight. The innovated idea of the proponent, fulfil the optimism

strategy of the business that will emphasize the value of the service that brings

luck and satisfaction to clients as well as to the proponents.

The proponents decided the slogan to specialize the dedication toward

works and to the work forces of business. The services provide fastest and

efficient through the common idea of the proponent to be more effective in the

field of trucking delivery services. It will be known also as a very competitive

trucking delivery services and has an unforgettable name because of the best

rendered services in the business industry.

 CHAPTER II

REGULATORY AND RISK ANALYSIS

This chapter discusses the regulatory and risk analysis of the business.

Regulation, Taxes and Licences

Regulations are commonly set up to enforce safety and standards, and to

protect consumers in market as well as the employees. The good practice of

responsibilities safety makes awareness to understand the safety regulatory

inside the company. The Bureau of Internal Revenue is the government agency

mandated by law to assess and collect all national internal revenue taxes, fees

and charges. All types of business entities are all require to be registered. This

agency will give the permission to the business that will operate legally;

Securities and Exchange Commission (SEC), Department of Labor and

Employment (DOLE) and Local Government Units (LGU), Department of

Transportation (DOT), Land Transportation Office (LTO), Philippine Economic

Zone Authority (PEZA).

Business Regulation

The Speedfast trucking delivery services will have business regulation that

will be implemented in the business. It will help to attain compliance of the

business plans and strategy. It will reduce the unavoidable risk and the

equalization power of authority from the top management down to the lower
position of employees. In establishing the regulation, it will also remind the entire

system to limit any prohibited areas inside the company. They will be responsible

enough as an employee to abide the rules and regulation from the management.

With this, the business regulation for the company will embrace the quality and

standard professionalism of work.

The rules that will be implemented are the following;

1. The employees must login at exactly 7 o’clock AM and logout at 7

o’clock PM.

2. All employees must wear adequate and proper uniform.

3. All technician and maintenance must wear safety gear inside the

company.

Safety rules and regulations for drivers;

1. The drivers must have a driver license

2. Zero tolerance of drugs and alcohol

3. Pre and post trip inspection of vehicles must complete daily.

4. Unauthorized passengers are prohibited without prior approval from

management.

5. Clear vehicle debris after being loaded and unloading.

6. Truck drivers that leave the cab must remain at safe distance away

from truck during loading and unloading.

7. Smoking is not allowed during the operation.

These safety rules will be implemented for the protection and safety of the

employees.
 Abiding these rules will make the operation more efficient and successful.

However, the repeated violation of the safety rules will be ground for termination

of employment.

Insurance

One of the requirements needed in the trucking delivery services will have

an insurance policy for the truck, this will ensure the truck is fully protected and

insured from the damages caused by hauling, accidents, or moving cargo. It is

the obligation of the company to have an appropriate of insurance to provide

coverage to the damages of property. It will help the company to reimburse the

money after the incident happened so that the proponent will not suffer the

serious financial setback due to lose and damages.

Risk Management

Risks are inherent in every industry and it is completely out of control of

any organization. Instead, risk management serves as a system anticipate

potential disruptions for one purpose; it will help companies develop dynamic

processes and system that quickly, effectively and reliably respond to changing

logistics and transportation issues.

The Risk and Solution of the Speedfast trucking services are as follows:
Table 1. Speedfast Risk Management Analysis
Risk Solution
Truck accident/ collision accident Insure the trucks to insurance
company
Proper distribution of drivers’ workload
Routinary check-up of vehicles
Loosen spare parts of vehicles Tighten the loosen parts of vehicles
Scheduled maintenance check-up
Some parts of the vehicles are already Purchase new parts
rusty
Drowsiness of drivers during travel There should be two drivers for long
distance delivery
Strict observance of company rules
Damages of the cargoes Insurance from the company
Flat tires Bring extra tire and tool kit
Bad weather condition Automatically inform the clients of the
delay
Overheat machine Routinary check-up
Bring water as cooling system

1. Truck accident/collision will be insured by the insurance company to

reimburse the damages that cause from the accident. It will be the

responsibility of the drivers to ensure the safety and prevent the collision

happened during the operational duty. The solution should be the daily

check-up of the truck and vehicles to and unload the cargoes

continuously.

2. Loosen spare parts of vehicles will be one of the routinary doing of the

driver to avoid accidental happening. To tighten the brakes and other part

of the vehicles to ensure the safety of the drivers and the freights. It would

be happened every schedule month of maintenance to check-up of the

vehicles especially in long distance trip.

 3. Some parts of the vehicles are already rusty, it will be necessary to

purchase new parts to change right away the stained part of vehicles to

ensure the efficient loading and unloading operation.

4. Drowsiness of the driver during the travel, there should be two drivers

available for every trip to avoid drowsiness and change the tired drivers

every long-distance trip. Observe also the rules and regulation of the

company to ensure safety of everyone.

5. Damages of cargoes, the company will be liable for any damages of the

cargoes during the travel due to accident and negligent of the drivers.

6. Flat tires, the drivers are always reminded to bring extra tires in case of

needed to change the tires.

7. Bad weather condition, the company will automatically inform the owner of

the freight that the delivery will be delayed due to the bad weather.

8. Overheat machine will be one of the routinary doing of the drivers to

prevent overheat of the machine and the drivers are reminded to bring

water for the cooling system in case trouble during travel.

Signage of the Company

According to fastsign.com, business safety signs must remain compliant

with the safety regulation by posting the correct business safety signage

throughout the work place area. Using the safety signs will alert the employees,

costumer, and visitors to areas for extra precaution.

 The Speedfast trucking delivery services will have the signage for the

management and employee to avoid accident and danger inside the company.

 “One way” signs keep traffic flowing in the direction.

 “Crosswalk” sign warns drivers to be aware of pedestrian.

 “Wheelchair accessible” sign let the disable visitors know where to

go.

 “Authorized access” sign that let the authorized person to enter.

Inspection

According Schubert (2019), all commercial motor vehicles that weigh more

than 10,000 pounds must undergo annual Department of Transportation

inspection. It is an inspection conducted by the Department of Transportation to

ensure that all the parts and accessories are safe to use, in good conditioned

and working properly. A DOT is the executive department Philippines

government responsible for the maintenance and expansion of viable, efficient,

and dependable transportation systems as effective instruments for national

recovery and economic progress.

The truck drivers are expected to inspect their trucks prior to every trip,

just as trucking companies are expected to regularly and systematically inspect

their fleet. Proper routine inspection is vital to pre-empt accidents and makes

drivers carriers aware of defects, or parts in disrepair, and fix them before can

cause accident.
 According to Federal Motor Carrier Safety Administration (FMCSA) the truck

inspection rules should up held the following:

1. Every motor carrier and intermodal equipment provider must

systematically inspect, repair, and maintain, or cause to be systematically

inspected, repaired, and maintained, all motor vehicles and intermodal

equipment subject to its control.

2. Parts and accessories shall be in safe and proper operating condition at

all times.

3. Push out windows, emergency door making lights in busses shall be

inspected at least every 90 days.

The Speedfast Trucking Delivery Services keep all their inspection and

maintenance record for the entire time they own the vehicles and for 18 months.

Drivers also have a duty to make frequent truck inspections. Before and every

ride, drivers must make truck inspection to make sure it’s safe. The truck

inspections include loads. Drivers must also stop to check their loads with the

first 50 miles of trip, and after driven for three hours or 150 miles which ever

happened first.
Preventative Maintenance

According to J.J Keller and Associate Incorporation since 1953,

preventive maintenance is the key to any successful maintenance program for

commercial motor vehicles. Through preventive maintenance, vehicles are

inspected, repaired, and maintained and such a way that defects are prevented

from surfacing in the first place, before a violation or accident can occur.

Figure 2. Preventative Maintenance

Ten Ways of Preventative Maintenance for Trucks

 Check fluid levels

 Change fluids

 Verify the tires pressures

 Check the tires

 Inspect the brakes

 Check air filters

 Do battery load test and electrical system verification

 Inspect the gearbox and clutch

 Check out exterior lightning

 Services the fifth wheel platform

Therefore, those things are important in maintaining the truck that will

prevent from deterioration. Since it is very important, it will provide as

guidance to the employees especially to the drivers that should be always

implemented before and after travel to prevent accident and unavoidable

circumstances.
 CHAPTER III

LOCATION ANALYSIS

This chapter constitutes the location, population growth, community

environment and business environment. Location analysis is a selection study

evaluates the potential opportunity for a specific site.

Figure 3. The location map of the business

Location
 The proponents agreed to put up the business to Balbagon, Mambajao

Camiguin besides the Rusi in the left side of it. The location will be accessible to

the target customer because these places that will be easily respond the

customer services.

Another reason why the proponents choose Balbagon area as a business

site because the place is along the highway and belongs to the capital of

Camiguin Province which is strategic.

The proponents agreed the proposed building structure.

Figure 4. Building Structure

According to Philippines Statistics Authority (PSA) this are the numbers of

establishment that exist here in the Camiguin Province.

Table 2. Establishments in the Province of Camiguin

City/Municipality Total Numbers of Establishment

(Master list)
Catarman 124
Guinsiliban 15
Mahinog 96
Mambajao 359
Sagay 72
Camiguin 666

Therefore, this will be the number of prospect’s establishment for the

Speedfast Trucking Delivery Services.

Formula:

N
n=
1+ N e 2

666
n=
[ 1 +(666) ¿

666
n=
[ 1+ ( 666 )( 0.0025 ) ]
666
n=
[ 1+1.665 ]

666
n=
2.665

n=249.9∨250

124
Catarman n= ∗250
666
 n=0.3∗250

n=45

15
Guinsiliban n= ∗250
666

n=0.03∗250

n=7.5 or 8

96
Mahinog n= ∗250
666

n=0.14∗250

n=35

359
Mambajao n= ∗250
666

n=0.54∗250

n=135

72
Sagay n= ∗250
666

n=0.11∗250

n=27.5 or 28

Overall Total = 250 Or 251

Based on the computation above, the overall total sample size for

Speedfast Trucking Delivery Services will be 250 establishments. The subtotal in

every municipality will be Catarman 45, Guinsiliban 7.5, Mahinog 35, Mambajao

135, and Sagay 27.5 respondents.

Employee Availability

Based on the survey, there will be available employees in the area of

Camiguin which has the potential to be a Human Resources and workforce of the

business and there will be TESDA Center available in the province.

Competition

According to Westbrook (2018), competition of the business is the

process of companies and individuals competing in the same industry or field. A

sort of competition applies to virtually all business and employees.

Insurance Rates

According to Insurance Commission, insurance rate is an averaged (for

entry–level to a truck), expect to pay anywhere between 12,000 to 20,000 pesos

(on higher) annually. Rates will vary depending on the model of the vehicles.

Premiums refer to the amount premiums a customer is required to pay for

the insurance written during the accounting period.

Business Environment

According to www.businessenvironment, business environment is the

combination of internal and external factors that influence a company’s operating

situation. The business environment can include factors such as clients and

suppliers: in technology, law and government activities and market, social and

economic trends.
 The factors of the environment explicitly determine the demand of

customer and accessible to the market. The Speedfast Trucking Delivery

Services will be accessible to the market and to the costumer because of the

factors that will find the business to be profitable trucking services. The external

and internal factor will be one of the sights that will need the business to

influence the target market costumer.

CHAPTER IV

Management Analysis
 This chapter discusses about organizational structure, staffing and major

operational consideration.

Organizational Structure

The organizational structure of Speedfast will be the outlines on how

certain job and activities are directed in order to achieve the goals of the

business.

General Manager

Daily Operation Costumer

Accountant Fleet Manager
Manager relation Staff

Mechanic Driver

Driver’s helper

Janitor

Figure 5. Organizational Chart of Speedfast

Speedfast Operational Procedure

Procedures
 1. Information Gathering and Exchange

2. Order Pick Up

3. Cross dock

4. Order Delivery

5. Invoicing

Information Order Pick Cross Dock

Gathering and Up
Exchange

 Verification  Unload
  Verification
 Fact Finding Appointment
 order  Routing  Slotting/
information  Dispatching Location
 Routing/
Load
Planning
 Loading

Invoicing Order
Delivery

 Settlement  Unload
 Payables  Return
 Update/Confirmation

Figure 6. Speedfast Procedure and Process Flow Chart of Operation

Duties and Responsibilities

Accountant
 The accountant will prepare the asset, liability and capital account entries

by compiling and analysing account information and recommends financial

actions by analysing accounting options and substantiates financial transactions

by auditing documents. He / She will maintain accounting controls by preparing

and recommending policies and procedures.

Fleet Manager

He / She will be responsible for assisting recruitment of quality drivers into

the fleet, maintaining detailed records of vehicles servicing, inspection and

scheduling regular vehicles maintenance to ensure operational efficiency, among

other duties.

Daily Operation Manager

The Daily Operation Manager will coordinate activities that affect

operational decisions and business requirements. He / She will be responsible

for the production, procurement, planning of daily operation as well as

communicate with all relevant employees to ensure delivery times are met.

Costumer Relation staff

This staff handles the concern of the people who buy company’s services.

It also responsible to rectify issues experienced by individual customers as well

aim to improve the organizations overall customer satisfaction ratings. Resolve

costumer complaints.

Mechanic
 Mechanic performs maintenance, diagnostic test, repairs, and inspections

of small trucks and cars. It is also work on engines, drive bells, transmissions,

and electronic system such as steering, brakes, and accident-avoidance

systems.

Driver

The driver is the one who drives the truck to deliver the freight.

Janitor

The person that is responsible to maintain the cleanliness of the building

and secure the security duties of the equipment and materials inside the

company.

Driver’s Helper

A driver helper works with drivers to deliver product or equipment to

costumer and clients. Responsible for all tasks with the exception of driving, such

loading and unloading the truck, interacting with costumers and filling out papers

works to records deliveries.

Staffing

This will be the process of hiring, positioning and overseeing employees in

an organization. The business will hire 1 accountant, 3 managers for supervision

of fleet/mechanics and daily operation, 1 auto-mechanic, 5 drivers, 2 janitors, and

5 driver helpers to make the goal of the business run successfully. The business

will also hire the best applicant base of the skills, expertise and certificate that
they are holding and will suit to the position require needed of the business and

has the ability to retain in the business and will also help the business to be more

competitive advantage.

As per business require the following applicant must have the qualification

of;

Accountant

 Certified Public Accountant (CPA)/Graduate in Bachelor of Science in

Business Accountancy

 2-3 years of experience

 With good personality

 24-30 years old

Managers

 Graduate in Bachelor of Science in Business Administration

 With knowledge in truck operation

 At least 2-3 years’ experience

 24-30 years old

Auto-mechanic

 Graduate in Bachelor of Technology/Certificate of Technology major in

Automotive

 With experience

 TESDA NC II Holder

 18 years above

Drivers
  TESDA NC II Holder

 With license to drive heavy equipment truck

 With 2 years’ experience

 18 years above

Driver’s Helper

 At least College/High School Level

 With driving skills, NC Holder in Driving and with a little knowledge in auto-

mechanism.

 With or without experience

 18 years of above

Janitors

 At least College/High School/Elementary Level

 With or without experience

 18 years of above

Availability of Personnel in the Local Labor Force

Based on the research of the four proponents, there will be personnel

available in the community and since we have TESDA Center here in the

province of Camiguin there is a big assurance that there will a skilled and expert

in the position that require by the business.

Compensation and Benefits

According to the Labor code of the Philippines the salaries and benefits

should be given to the employees with exact amount of their working days and
the right benefits. This will be address to all working employees to have a

Minimum Wage, Holiday Pay (Article 94), Over Time Pay (Article 87), Maternity

Leave (RA1161, as amended by RA 8282), Thirteenth-Month Pay (PD 851),

Separation Pay (Articles 298-299), Retirement Pay (Article 302), Philhealth

Benefits( RA 7875, as amended by RA 9421), Social Security System Benefits

(RA 1161, as amended RA 8282), PAG-IBIG Benefits (RA 9679).

Minimum wage rate x hours of work (8 hours) = wage/salary

Computation for overtime pay

On ordinary days

Number of hours in excess of 8 hours (125% x hourly rate)

On rest day, special day, or regular day

Number of hours in excess of 8 hours (130% x hourly rate)

Benefits

The business will give the employee benefits as per abiding the legal law

in the Philippines. The employees will receive benefits such as total package of

rewards, recognition, bonuses and incentives every 24 th of December. Aside from

this benefit they will also have SSS, PHILHEALTH, and PAG-IBIG. This will help

the business to attract and retain the competent personnel.

Housing
 The proponents propose to provide housing for those employees who’s

living far from the business area and will also give allowances maximum of Php

300.00 for the driver and helper per trip.

Major Operational Consideration

The SpeedFast Trucking Delivery Services will consider the internal and

external environment. In business objectives, the staffing is one of the

operational considerations that will help the business operate. Through training

and promotion of staff, it will be built and maintained facilities and implemented

programmes of the business, will come out the good result of well chosen, well

trained, well-motivated staff and will retain employee.

Service Philosophy

Costumer service is taking care of costumers needs by providing and

delivering professional, helpful, high quality service and assistance before,

during, and after the costumer requirement are meets.

The proponents believe that a customer is always first. Giving them a

good quality services provides satisfaction and efficient delivery. The costumer is

primary important because it will be the blood life of the company and the source

of income to the employees.

Vision
 The vision of the Speedfast Trucking Delivery Services is to become

progressive and competitive advantage through giving high quality service that

will satisfy the customers need.

Mission

The mission of the Speedfast Trucking Delivery Services is to provide;

 High quality of services

 Fast and efficient delivery

 Opportunity of work to people

 Good customer relationship

 Customer satisfaction

Goals

The goal of the Speedfast Trucking Delivery Services is to meet the

satisfaction of the customers through delivering the high-quality services. Hiring

the best qualified personnel that will help to result of high profitability and

produce quality and good services of the business. It will also help the business

to expand and can compete worldwide.

Objectives

The objective of the Speedfast Trucking Delivery Services as to follow the

vision, mission and goals of the company and to provide;

 High quality services for all the customers.

  Expansion of the business.

 Compensate all the employees with exact salary based on minimum rate

and base on their position.

Seasonal Effect

According to Tarradell (2017), being prepared for the seasonality of

trucking changes is incredibly important. Anticipating the dipping in soaring of

freight rate, fuel, prices and market demand in accordance to different seasons of

the year makes a person a smart business owner ready to maximize profits and

save money.

Strategically, truck shipping seasons are divided up roughly like quarters

in a corporate calendar.

This table show the seasonal effect of the trucking services

Table 3. Seasonal Effect of Speedfast Trucking Services

Season 1: January through March The Quite Month
Season 2: April through July The Find Me a Truck Season
Season 3: August through October The Peak Season
Season 4: November through The Holiday Season

December

Typically, the two-middle season of the year are the busiest. The first

season is the slowest and the fourth season is the healthy until just before the

Christmas holiday.

Backup Equipment, Special Equipment

 The Speedfast Trucking Delivery Services will have a special equipment

use to deliver the freight like refrigerated truck, dry truck (for perishable and non-

perishable goods). The more special equipment to be use, the more profit will be

gain. However, to prevent an unavoidable circumstance that causes stoppage of

operation during the delivery of freight. There will be backup towing trucks which

carry the truck that should always be ready to whatever happens. There will also

backup tires and tools to use in case of deterioration of the truck.

Table 4. Tools and Equipment

Tools Uses Pictures

Air compressor Use to convert power

into potential energy

stored in pressurized

air.
Grinder machine Use for grinding and

cutting tool.

Jack Use for lifting heavy

object and raising the

truck off the ground so

that a wheel can be

changed or the

underside inspected.
Early warning Design to use safety

device purpose which could

 lessen the odds of an

accident.

Screw driver Use for tightening or

(Phillips) loosening screw

notches.

Gauge Use to make

measurements or in

order to display certain

dimensional

information.
Pliers Use to cut, grab, bend

or turn.

Eye protection Use too see everything

clearly and protect the

eyes from preventing

might impair your

vision as you check the

vehicle’s intimate part.

Work light Doing auto

maintenance needs

light to see things

 clearly.
Pressure washer Use of high- pressure

water spray to remove

mold, grime, dust, and

dirt surfaces.

CHAPTER 5

MARKET AND TECHNICAL FEASIBILITIES

This chapter discuss the result of technical feasibility that will conducted

by the proponent. It will show the result of the market surveys that will be

establish by the proponent as well as the technical analysis that will perform by

the partners.

Market Segmentation
 Market Segmentation is aggregating prospective buyers into groups or

segment with common needs and who respond similarly to a marketing action.

This is to minimize the risk by determining which services have the best chances

to deliver efficiency of service to the customer and determining the best way to

deliver the services to the market.

SPEEDFAST TRUCKING
DELIVERY SERVICES

MACRO BUSINESS MICRO BUSINESS

Livestock
Manufacturer owner
 Fruits &
Enterprises
vegetables
vendor

Industries Copra’s
buying
business

Merchandise
Dry goods &
Ukay-ukay
business

Figure 7. Market Segmentation

Based on the shown table above, there will be two main target markets for
the Speedfast Trucking Delivery Services which will be the macro and micro
businesses will provide the logistic transaction and the sustainability profit of the
business. Under the macro business market target will be the manufacturers,
enterprises, industries, and merchandises. On the other hand, the micro
business includes the following businesses, the livestock owner, fruits and
vegetables vendor, and dry goods/ukay-ukay.
The figure above indicates the segmentation of the target market for the
business to easily identify the target customers and to determine the specific
demand.This table is the result of customer satisfaction survey conducted by the
partners as part of their market study.

A. Profile of the Respondent

Table 5. Profile Respondent as to Occupation

Occupation Number of Respondent Percent

Employed 107 42
Self-employed 144 58
Unemployed 0

Total 251 100

The above table shows that the employed respondent gathered 42%
followed by Self-employed respondent got 58% while the unemployed
respondent has a zero percent based on the conducted survey.

Table shows the profile of respondent as to gender

Table 5. Profile of Respondent as to Gender

Gender Number of respondent Percent

Female 125 49.8

Male 126 50.2
TOTAL 251 100

The table above shows that the female respondent has 49.8%, while the
remaining respondents belong to the male respondent which has 50.2% and a
total of 100% according to the survey conducted by the group.

Table 6 shows the number of respondents as to income.

Table 6. Profile of Respondents as to Income

Income Numbers of Percentage
Respondents
P 20, 000 – P 40, 000 0 0
P 40, 000 – P 60, 000 0 0
P 60, 000 – P 80, 000 27 11
P 80, 000 – P 100, 000 77 32
P 100, 000 and above 147 57
 Totals 251 100

It can be observed that the table above indicates the income of every
respondent’s establishment that was conducted by the partner through survey. It
shows the lowest income from the bracket minimum of P20, 000.00 to the
highest income which is P100, 000.00 above. The highest income has the P100,
000.00 and above which has 57%, followed by the P80,000-P100,000 with 32%,
and finally the P60,000-P80,000 has 11% and the rest of the income has zero
percent.

Table 7. shows the number of respondents as to their civil status.

Table 4. Profile of Respondent as to Civil Status

Civil Status Number of Respondent Percent

Single 48 19
Married 198 79
Widow 5 2
TOTAL 251 100

The table above shows that the single has 19% of respondents followed by
the married that has 79% and the widow has only 4% of respondents.

Level of Satisfaction among Customers of Speedfast Trucking Delivery

Services
Table 8. Likers Scale on the Level of Satisfaction as to Services, Price,
Place, and Promotion
Arbitrary Statistical Limit Description Qualitative
Description
4 3.25 – 4.00 Strongly Exhibit
Acceptable acceptability at
all times

3 2.50 – 3.25 Acceptable Exhibits

acceptability
sometimes
 1.75 – 2.49 Less Acceptable Exhibits
2 acceptability rare
1 1.00 – 1.74 Not Acceptable Does not exhibit
at all

The table show the level of satisfaction among the customers of Speedfast
Trucking Delivery Services as to Price.

Table 9. Level of Satisfaction among Customers of Speedfast Trucking

Delivery Services as to Services.
INDICATORS WEIGHTED QUALITATIVE
MEAN DESCRIPTION
1. The business will offer trucking
delivery services through contract Strongly
consignment (freight, cargoes, 3.868526 acceptable
and any belongings).
2. The business will offer delivery
services available through online 3.199203 Acceptable
registration of the freight and
cargoes.
3. The business will offer delivery
services through verbal 3.438247 Acceptable
registration with customer of the
freight and cargoes.
Total Average Weighted Mean (TAWM)
3.501992 Acceptable

The table above indicates the Total average of Weighted Mean (TAWN)
which gained 3.501992 and it describe as acceptable.
The table show that the indicator 1 has the highest ranked with the
weighted mean of 3.868526 and describe as strongly acceptable. The indicator 2
has the weighted mean of 3.438247 and got the 2 nd ranked which describe as the
acceptable of the qualitative description. The indicator 2 which has the lowest
weighted mean of 3.199203, got the 3 rd ranked which also describe as
acceptable in the qualitative description.

Table 10. Level of Satisfaction among Customers of Speedfast Trucking

Delivery Services as to Price.
INDICATORS WEIGHTED QUALITATIVE
MEAN DESCRIPTION

1. The price will be depending of Strongly

numbers and sizes (small, 3.98008 acceptable
medium, large) of boxes.
2. The price will be depending by Strongly
pieces or sacks on delivery. 3.956175 acceptable

3. The price will be depending on Strongly

distance of travel in delivery of 3.972112 acceptable
cargoes.
4. In hardware delivery, the price will Strongly
depend on per cubic of gravel and 3.956175 acceptable
sand.
5. In renting the truck, the price will Strongly
be depending on per day basis. 3.956175 acceptable

Total Average Weighted Mean 3.964143 Strongly

(TAWM) acceptable

The table above show the Total Average Weighted Mean (TAWN) which is
gaining 3.964143 and it described as strongly acceptable.
It shows above that indicator 1 which states that “the price will be
depending of numbers and sizes (small, medium, large) of boxes)”, got the
highest ranked weighted mean of 3.98008 and describe as the strongly
acceptable in the qualitative description. The indicator 3 which states “the price
will be depending on distance of travel in delivery of cargoes”, got the 2nd to the
highest ranked which weighted mean of 3.972112 and describe as strongly
acceptable in the qualitative description. The indicator 2, 4 and 5 has equal
weighted mean of 3.956175 which states “the price will be depending by pieces
or sacks on delivery, in hardware delivery, the price will depend on per cubic of
gravel and sand and In renting the truck, the price will be depending on per day
basis and describe the three indicators as strongly acceptable.

Table 11. Level of Satisfaction among Customers of Speedfast Trucking

Delivery Services as to Place.
INDICATORS WEIGHTED QUALITATIVE
MEAN DESCRIPTION
1. The location of the business will Strongly
 be located at Balbagon, 3.9721116 acceptable
Mambajao Camiguin.
2. It will be convenient and Strongly
accessible to the customers 3.936255 acceptable
because it is along the highway.
3. There will be sofa, table, Strongly
magazines and television inside 3.9282869 acceptable
the office building while the
customer is waiting.
4. There will be provided free water Strongly
in dispenser inside the office for 3.9482072 acceptable
the waiting customer.

5. There will be a parking space for Strongly

the customers and employees in 3.9800797 acceptable
the establishment.
Total Average Weighted Mean (TAWM) Strongly
3.952988 acceptable

It can be observed the table above that the Total Average Weight Mean
(TAWN) is 3.952988 and describe as strongly acceptable.
The table above show that the indicator 5 which states of “there will be a
parking space for the customers and employees in the establishment” got the
highest ranked with the weighted mean of 3.9800797 and described as the
strongly acceptable. The indicator 1 got the 2 nd highest of the ranked which has
the weighted mean of 3.9721116 which states “the location of the business will
be located at Balbagon, Mambajao Camiguin”. The indicator 4 got the 3 rd ranked
with the weighted mean of 3.9482072 which states “there will be provided free
water in dispenser inside the office for the waiting customer and describe as the
strongly acceptable. The indicator 2 states “it will be convenient and accessible
to the customers because it is along the highway got the 4th ranked which has
the weighted mean of 3.936255. The indicator 3 has a weighted mean of
3.9282869 which would be the last ranked and describe as strongly acceptable.

Table 12. Level of Satisfaction among Customers of Speedfast Trucking

Delivery Services as to Promotion.
INDICATORS WEIGHTED QUALITATIVE
MEAN DESCRIPTION
1. The service will be introduced 3.976096 Strongly
through social media. acceptable
 2. The business will be promoted 3.964143 Strongly
through flyers. acceptable
3. The business will accept contract 3.960159 Strongly
through personal, social media, acceptable
messages and contacts.
4. The business will be promoted 3.948207 Strongly
through advertising television. acceptable
5. It will have a big billboard outside 3.948207 Strongly
the office building. acceptable
Total Average Weighted Mean 3.959363 Strongly
(TAWM) acceptable

The table above has the Total Average Weighted mean of 3.959363
(TAWN) and it can be described as strongly acceptable of the qualitative
description.
The table above indicates that the indicator 1 is the highest ranked with
the weighted mean of 3.976096. The 2nd indicator which states “the business will
be promoted through flyers” got the 2 nd ranked with the weighted mean of
3.964143 that describe as the strongly acceptable. The indicator 3 got the 3 rd
ranked for the weighted mean of 3.960159 that states “the business will accept
contract through personal, social media, messages and contacts”. The indicator
4 and 5 has similar weighted mean of 3.9487207 that indicates as strongly
acceptable in the qualitative description.

Market Analysis
This is an opportunity to entrench its competitive position in the
transportation market by selectively focusing to its target market on the
establishment. The business will be looking for potential clients that believe the
growing demand for the reliable solution in the segment costumer. Basically, a
business plan that present information regarding the market in which the
business operates.

Sales Projection
Sales projection is the projected figure that the business wants to meet the
target sales in a year. It is an expected earn to be hit yearly as a considerable
idea to know the status of the business. This is to determine whether the
company will be stable on the profit or it could be trend to upward or down ward
in the coming years of operation.
Table 13. Sale Forecast
2021 2021 2021 2022 2023
Sales
Trucking
services
Renting
services
Direct cost
of Sales
Total Sales

Marketing Strategy
The business will have the services as the solution to the many
establishments requiring cargo to be transported promptly and efficiently. The
business future plan marketing will be nationwide, emphasizing hauling
capabilities for any cargo around the Philippines. The services of the business
will be available by accepting online registration, verbal negotiation and contract
consignment to deliver with fast and efficient services to the costumer of any
establishments that need to deliver their freight and cargo.

Socio-demographic
According to Alexander Dobronte (2013), in the survey it should be
answer the question specifically to determine whether actually reaching the
target audience and whether or not gathering the information effectively that
should be seek. For instance, the demographic distribution will help to determine
how close the sample replicates of the target establishment. In other hand, socio-
demographic in the surveys help of this gaining popularity and immediate
response rate is higher.

Age
It has been shown in various scientific discipline that opinion on vast
number of topics differ between different age groups. When asking respondents
about age, ideally ask to fill their age (expressed as a number of years). In
calculating each respondent, a value (in number of years) it uses as continues
variable in the analysis to express differences in magnitude. Age will determine
the target costumer of the business that has a potential capability to do logistic
transaction.

Occupation
Knowing up the occupation of every respondents help the business to
identify the target market to have a logistic transaction. The analysis of the
occupational variables shows that the situation will be fairly similar to studies
performed in the conducted survey. The job grade shows that among employed,
self-employed and unemployed will be the chosen target of the survey to identity
the occupational target customer. The self-employed will be the highest category
had a participation rate in the survey that will double the unemployed as the
lowest category while few of employed worker had participated in the conducted
survey.

Marital Status
Marital status affects participation, married people participate more than
do those who are unmarried. The studies have observed that the participation
rate of married seems to have a varied effect that mostly of married people
participate the conducted survey. The fact that this married and unmarried played
a positive role in participation reinforces this hypothesis.

Behavioral Characteristic
Behavioral Characteristic are important skill set for business analyst to
determine the affect of efforts and gain trust and respect, it also to understand
and focus on fairness consideration of moral behavior.
According to the article shared by Shristi D (2019), there are some
characteristic of human behavior which are mostly in common. First, the behavior
Shows Individual Differences, this influenced by a number of factors that vary
from one person to another and even from the group of people. It will differ from
the physiological and bodily conditions in their past experiences, abilities and
background. Second, the behavior is always purposeful or goal directed, this will
be always purposeful one’s action to direct toward some goal that purely learnt
and acquired.
Table 14. Behavioral Characteristic
Promoter Supporter
High energy Dedicated and committed
Enjoyable to around Loyal team member
Creative imagination Good listener
Initiates relationship Patient
Motivating Good at reconciling faction
Competitive spirit Cause-oriented
Goal oriented Dependable

Controller Analyzer
Task accomplisher Objective
Bottom-line result Conscientious
Self-motivated Defines, clarifies
Forward looking Concern with accuracy
Fast decision-maker Gathered data/information
Initiates activities Test data
Disciplined Maintain standards

Geographic Characteristic
According to Dr. Jean-Paul Rodrigue(1998) geographic characteristic in
transport is a sub-discipline of geography concerned about the mobility of people,
freight and information and the spatial organization considering attributes and
constraints related to the origin, destination extent, nature and purpose of
movement.
Geographic residence are available in the data due to census bureau
confidentiality concerns, such variables provide broad geographical
demarcations of the respondent’s area of residence. This is a set of geographic
mobility question that will be included in the survey, occupation, status and
residence and current job. Finally, the characteristic of the respondent’s
environment will be available in several describing the size of the labor force and
employment rate for the labor market of current residence.

Competition Analysis
The Speedfast trucking delivery services has a few competitors in the
market place. It will be the biggest opportunity to build a trucking services in the
province because there are establishment needs to transport their freight and
cargoes to each of their respective costumer. A few competitors offered the same
affordable services like what the business will be offered, the competition will be
present in this analysis.

Type of Services
The Speedfast trucking delivery services will have the types of services
offered, such as delivering the cargoes and freight to the costumer, delivering the
perishable and non-perishable goods to the market with the contract
consignment and verbal registration, and accepting renting truck services for the
costumer request.
The establishment will have their own respective strengths,
weaknesses, opportunities and threats. The partner studied the SWOT that will
be intended to analyze the services in the competitive market.
Table 15. Strength and Weaknesses
Strengths Weaknesses
The strong customer relationship The lack of capacity to meet a wider
market.
The business identified the skilled and The lack of funding to purchase
competent drivers providing the additional truck or facilities to reach
commitment of work with safe and new market which the business only
reliable transportation of freight and depends on sales in order to expand
cargoes. and diverse.
The strong thriving entrepreneurial Lack of fully organized systems by
spirit of the business owner. control
Well establish equipment and facilities Gasoline-related increasing price
Readily available facilities and workers

The table above emphasizes the strengths and weaknesses of the

business competitors. Knowing the strengths and weaknesses will help to work
out where will be the weak operation to change the business plan or the
marketing strategy. This is absolutely necessary to know how the partners
understand what the business doing and how the people do better for the
company. The strong customer relationship indicates the good communication
that essentially build customer relationship. Promoting the business and listening
the costumer will be equally important to build trust and make more logistic
transaction. Also, the business identified the skilled and competent drivers
providing the commitment of work with safe and reliable transportation of freight
and cargoes, this indicates that hiring the right driver will be vital to do safe
delivery of any freights and cargoes with effective and efficient work. The strong
thriving entrepreneurial spirit of the business owner, this will be developed
individuality who demonstrate a true passion for building the business great from
nothing and willing to push themselves to the limit to achieve big goals for the
business. Well establish equipment and facilities, this will also give one’s value to
the equipment and facilities that will help the operation continues and stable
foundation of work. Readily available facilities and workers, this will provide the
direct response to the costumer with good services and availability of facilities
and workers in the operation.
On the other hand, the weaknesses will include the lack of capacity to
meet a wider market, lack of funding to purchase additional truck or facilities to
reach new market which the business only depends on sales in order to expand
and diverse, lack of fully organized systems by control and Gasoline-related
increasing price. This will affect the status of the business when this weakness
strike but this will help the business owner to value lesson on how to reposition
the weaknesses of the business into winning advantages.

Technical Feasibility
This is the crucial requirement of the business to accomplish the project
system to be feasible and lead to success goals with an excellent tool for long
term planning. It is the logistic plan of the business on how to produce, store, and
deliver the services to the right quality and to determine the possibility of the
business success.

Location Selection
The selection of the location has a factor to be considered in the project
site location. It is convenient and accessible to the costumer; it should be located
near the market and the area or size is appropriate for the business and suitable
for the working operation, it is included the cost of the land which has an
affordable price rent, the availability of the suppliers where the location site is
proximity to the market, the infrastructure will be safe and can accommodate the
whole organization and the labour available near the site of the business. It also
considered the environmental regulation that the area will free from pollution of
the public health.

Technological Selection
The technology selection will be appropriate for the business
transaction and suitable for the operation to work effectively and efficient to gain
more higher profit. It is also included the time that should be ready for any
transaction and ready to receive and response the client in the right time of
services. The space also considered as a factor of technology selection which
appropriate at one place to generate the outcome of equipment and machine
during the operation.
Labor Requirements

The raw material the required production process to operate the

business included the following:
Table 16.
Description Life Span Unit Price Total Cost
Cost

Vehicles Use deliver

(trucks) cargoes and
goods. 10 years 6 ₱2,250,000.0 ₱13,500,000
0

Computer Use to input data ₱96,000

transaction of the
business. 5 years 4 ₱24,000.00

Television Use to entertain ₱15,999.00

clients in the
office. 5 years 1 ₱15,999.00

Water Use to provide 5 years 1 ₱6,000.00 ₱6,000.00

dispenser easy access to
drink water.

Air- Use to makes the 20 1 ₱60,000.00 ₱60,000.00

condition atmosphere cool years
of working zone
very comfortable.

Magazine 6 ₱300.00 1800

Bond Typically use for ₱1,150.00
paper writing,
photocopying and ₱1,150.00
printing.

ball pen Use for writing ₱250.00

any transaction of
the business. ₱250.00

Sofa Use for primarily 6 years 2 ₱12,000

seating.
₱6,000.00

table Use as surface 6 years 5 ₱55,000

for working.
₱11,000.0
0

Chair Use for sitting the

clients inside the
office. 6 years 7 ₱3,199.00 ₱22,393.00

Disposable Use for drinking ₱300.00

glass water.
₱300.00

calculator Use to perform

task that involve
adding, 3 years 4 ₱850.00
multiplying,
subtracting, and
adding numbers.

fire Use to extinguish

extinguishe or control or
r control small fires,
often in
12 2 ₱250.00
emergency
years
situation.

stapler Use to joins

pages of paper or
similar material by
thriving a thin
3 ₱330.00
metal staple
through the
sheets.
printer A device use to
accepts text and
graphic output 5 years
from a computer
3 ₱3,185.00
and transfer the
information to
paper.

printing ink Use in printing 4 ₱245.00

and consisting of
a pigment or
pigments of the
required color
mixed with oil or
varnish
especially.

log book Use to determine

work present of
the employee. 5 ₱55.00

binder clip Use for clipping

important files in
one’s clip. 6 ₱25.00

puncher Use to create

holes for folder or
binding purpose. 2 ₱128.00

Toilet Primarily use to 7 ₱30.00

paper clean.

liquid soap Use to wash 5

hands employees
to eliminate ₱112.00
bacteria

Tools
Air Use to convert
compresso power into
r potential energy
stored in
1 ₱9,200.00
pressurized air.

Grinder Use for grinding

jack and cutting.
1 ₱1,700.00
Early Design to use
warning safety purpose
device which could
lessen the odds
2 ₱350.00
of an accident.

Screw Use for tightening

driver and loosening
screw notches. ₱105.00

Gauge Use to make

measurement
Or in order to
display certain ₱175.00
dimensional
information

Pliers Use to cut, grab,

bend or turn.
₱450.00

Eye Use to see

protection everything clearly
and protect the
eyes from
preventing might
impair your vision ₱855.00
as your check the
vehicle’s intimate
part.

Work light Doing auto

maintenance
needs light to see ₱500.00
things clearly.

Pressure Use of high- ₱5,300.00

washer pressure water
spray to remove
mold, grime, dust,
and dirt surface.

Combinatio Multi- purpose

n wrench tool with the
set open- end for 1 ₱3,450.00
tightening and
loosening in small
spaces around
 nuts and bolts

Socket set Use turning tools.

1 ₱2,550.00

Best guard Use for driving

allen key bolts and screws.
set 1 ₱4,500.00

Cleaning
tools

Broom and Use for cleaning.

dustpan
₱180.00

Feather Use for cleaning

duster typically of a
wooden-dowel
handle.
3 ₱80.00

Mop Use for cleaning ₱129.00

the floor tiles.
3

Mop Use for squeezing ₱1200.00

Squeezer the mop.
1

 Utilities

There is an availability supply of utilities such as water and electricity.

The electric current amount depends on per kilowatt hour upon the imposed of
Camiguin Electric Cooperative (CAMELCO). Also, the water source of the
business comes from the Mambajao Water District that supply mostly of the
business establishment in Mambajao area.

Operational Feasibility
Based on the research and survey of the proponents, it finds out that
this is the concerned issues about the system will be used to develop operation
and to the implemented rules and regulation in the inside and outside of the
company. It also where the partners support the project planning and
development of the business. This will also include the legality of the operation
concerning the contract of the workers as well as the costumer, liability of the
business, and the concerning violation.
Table 17. Legal Requirements
1.Business Name Registration ₱215.00
2.Bureau of Internal Revenue ₱500.00
3.Mayor’s Permit
Requirements:
Business Name Certificate ₱500.00
Barangay Clearance ₱40.00
Police Clearance ₱150.00
Cedula ₱75.00
Sanitary Permit ₱50.00
Sanitary Inspection Fee ₱50.00
Health Certificate ₱100.00
Treasurer’s Certificate ₱50.00
Business Sticker ₱55.00
Garbage charge ₱1,200.00
Business Permit ₱1000.00
Total Requirements Cost ₱3985.00

This will be the legal requirements expenses that need to require in order
to operate the business. The total legal requirements will be ₱7735.00 that will be
deducted from the operation in year one.

Table 18. Speedfast Trucking Delivery Services Organizational Cost

Organizational Cost Fees
By laws partner ship ₱2,000.00
Research Fees ₱510.00
Notary ₱500.00
Total Cost ₱3100.00

Table 19. No. Freight- in cost of the business

Freight- In Description Month Projected Annual Total
Expense Cost Cost
Cost of For supplies 4 ₱3,000.00 ₱12,000.00
(delivery) like bond
 paper, etc,
(every 3
months)

The proponents will project the freight-in expense in annual total cost with
an amount of ₱12,000.00. It will assume that the cost of delivery will be
₱3,000.00 in every 4 months of delivery. It will be deducted during one year of
operation.
Note: The projection of the proponent will increase 2% of freight-in expense in
every 2 years.

Table 20. Estimated Cost in Transportation of Equipment, Supply and

Fixture.
Equipment Fixtures Supplies Annual total
transportation transportation transportation cost
Estimated ₱20,000.00 ₱15,000.00 ₱3,000.00 ₱38,000.00
cost

The proponents assumed that the annual total cost will be ₱38,000.00.
The estimated equipment transportation will be ₱20,000.00 and fixture
transportation will be ₱15,000.00 and supplies transportation will be ₱3,000.00,
this will be the estimated cost of one year only for the business projection.

Table 21. Estimated Projected Labor Cost

Projected Labor Cost
Employee Number Per Monthly Yearly 13th Annual
of day Salaries Salaries Month Total
Employee Pay Cost
General 4 550 57, 200 686, 400 57,200 743, 600
Manager
Accountant 1 400 10, 400 124, 800 10, 400 135, 200
Fleet 1 400 10, 400 124, 800 10, 400 135, 200
Manager
Daily 1 400 10, 400 124, 800 10, 400 135, 200
Operation
Manager
Customer 1 400 10, 400 124, 800 10, 400 135, 200
Relation
Staff
Mechanic 1 400 10, 400 124, 800 10, 400 135, 200
Driver’s 6 350 54, 600 655, 200 54, 600 709,800
Helper
Driver 6 350 54, 600 655, 200 54, 600 709, 800
Janitor 1 350 9, 100 109, 200 9, 100 118, 300
Total
Salary Cost 22 3,600 284,700 273,000 227,600 2,281,500

The table show above the projected total labor cost of the business which
will be deducted during one year of operation. The possible total labor cost will
be ₱2,940,600.00. It indicates that the manager has a total of cost of
₱700,700.00, the accountant, fleet manager, daily operation manager, customer
relation staff, and mechanic has the same amount of ₱135,200 each in annual
salary cost. The driver and driver’s helper have the same cost of ₱709,800.00 in
their annual salary cost. Lastly, the janitor has an annual projected salary worth
of ₱118, 300.00.
Note: The company will have 26 working days and multiply the number of
employee’s work.

The table show the Projected Cost of Philhealth contribution

Table 22. Projected Annual Cost of PhilHealth Contribution of Employees
Projected Annual Cost of PhilHealth Contribution of Employees
Employee Number of Employees Employer’ s Monthly Total Annual
Employees Salary Contribution Contributi Cost Cost
Deduction on
General 4 125 125 250 1000 12, 000
Manager
Accountant 1 125 125 250 250 3, 000
Fleet 1 125 125 250 250 3, 000
Manager
Daily 1 125 125 250 250 3, 000
Manager
Customer 1 125 125 250 250 3, 000
Relation
Staff
Mechanic 1 125 125 250 250 3, 000
Driver’s 6 125 125 250 1, 500 18, 000
Helper
Driver’s 6 125 125 250 1, 500 18, 000

Janitor 1 125 125 250 250 3, 000

Total Cost 66, 000
 The proponents will have Projected Annual Cost of PhilHealth Contribution
of Employees. It can be observed the table above that every employee has a
contribution every month that will be deducted on their salaries together with the
contribution of an employer amounting of ₱250.

Insurance Expense
The table show the Insurance Expense
Table 23. Projected Insurance Expenses
Projected Insurance Expenses
Number of Monthly Yearly Annual Cost
Truck
Truck 6 ₱2, 000.00 ₱24, 000.00 ₱144, 000.00
Building ₱1, 200.00 ₱14, 400.00
Total Cost ₱158, 400.00

The table indicates above the projected insurance expenses for the truck
and building that has monthly and yearly cost for the coverage insurance with an
annual total cost of ₱158,400.00. The insurance will protect from financial loss
and damages of property through reimbursements.

Promotion Expense
The show the Projected Advertising Expenses
Table 24. Projected Advertising Expense
Projected Advertising Expense
Advertisement Estimated Quantity Size Total
Tool Amount Expenses
Flyers ₱5.00 500 4 in ₱2, 500
Television ₱500, 000.00 30 seconds ₱500, 000
Billboard ₱50, 000.00 1 4x4 ft. ₱50, 000
Total ₱552, 500

The proponents will have the projected advertising expenses during one
year of operation. The total assumption of advertising expenses cost will be
552,500.00. This will help the business to be popular and promoted to its target
market. It will help also to raise awareness of the services offered by the
business.

Utilities Expense
The table show the Projected Utilities Expenses
Table 25. The projected utilities expenses of the business annually
Utilities Description Month Cost Annual Cost
Water bill For water purpose 10, 000.00 120,000.00
Electric bill For electric 15,000.00 180,000.00
purpose
Total Cost ₱300,000.00

The table above show the projected utilities expenses of the business
annually that cost 300,000.00. This will be the proponent projection of the water
and electric bill in the utility’s expenses.

Employees Benefits
The table show the Projected Cost of SSS
Table 26. Project Annual Cost of SSS contribution of employees
Employee No. of Employee Employer Monthly Total Annual
s employee s salary contributio contributio Cost cost
s deduction n n
General 4 180 180 360 1440 17,200
manager
Accountan 1 180 180 360 360 4,320
t
Fleet 1 180 180 360 360 4,320
manager
Daily 1 180 180 360 360 4,320
operation
manager
Costumer 1 180 180 360 360 4,320
relation
staff
Mechanic 1 180 180 360 360 4,320
Drivers 6 180 180 360 2,16 25,920
helper 0
Drivers 6 180 180 360 2,16 25,920
 0
Janitor 1 180 180 360 360 4,320
Total cost ₱99,36
0

It can be observed that the table above show the projected annual cost of
SSS contribution of employees in every month that deducted from their salaries.
The total annual cost of contribution worth ₱99,360.00 with in the year.