PROPOSED EXIT STRATEGY

The proponents plan to degrade the business and focus on the Cafe shop if ever the business fails to be
profitable. Coffee shops are incredibly profitable thanks to their high-profit margin and low cost of stock.
Because of the busy location of the business, it would be ideal to continue the Cafe business, the car care
area can be renovated into a drive thru area for on-the-go customers to still maximize the lot area.

PROPOSED ENTRY STRATEGY

The business will use print and technology to advertise the business in the market. Flyers and posters will
be distributed around the location of business and nearby barangays. We will have a Facebook, Instagram
account and an official website to attract the attention of people who will not be reached so that customers
can simply find and contact us through these platforms. Additional advertising promotions on social
media will be used for more exposure to customers.

TIMELINE OF THE EVENTS

PRODUCTS RESEARCH AND DEVELOPMENT

For the product and service research and development, the proponents plan to strengthen the workforce by
adding more personnels and provide them with proper training to continuously meet the standard of
offering quality products and services and to satisfy the needs of customers.
REGULATORY AND LEGAL ISSUES

DTI City Permit

Barangay Permit
Mayor’s Business Permit
Sec Registration
FUTURE RESEARCH AND DEVELOPMENT

For the product and service research and development, the proponents plan to strengthen the workforce by
adding more personnels and provide them with proper training to continuously meet the standard of
offering quality products and services and to satisfy the needs of customers.

The proponents of Project 49 Car Care & Cafe intend to improve the facilities by expanding the car
service area to provide additional services and, in the future, adding more room to accommodate more
products.

Project 49 Car Care Care is planning to expand the business by offering franchises to interested investors
after 4 years of operation.

CRITICAL RISK

Contingency Plan

This company should always prepared for the possibilities of problem may encounter, there
should be plan that may be prepared to evade internal and external risk inside the company

Problem and Assumption Insurance Provisions Contingency Plan and Control

•Life Insurance •Fire Drill
•Accident Insurance •Emergency Exit
ACCIDENTS
•Fire Insurance •First Aid kit
•Property Insurance •Hospital Contact Nos.
•Fire Drill
• Life Insurance •Fire Exit Fire
• Accident Insurance •Extinguisher
FIRE • Fire Insurance •First Aid kit
• Property Insurance • Fire Blanket
• Building Insurance •Fire Sprinkler
•Hospital Contact Nos.
• Life Insurance • Calamity Drill
• Accident Insurance • Emergency Exit
TYPHOON • Fire Insurance • First Aid kit
• Property Insurance • Monitor Typhoon Warning Signal
• Calamity Insurance • Hospital Contact Nos.
• Life Insurance
• Accident Insurance •Earthquake Drill
EARTHQUAKE • Earthquake Insurance •Emergency Exit First
• Property Insurance •Aid kit Hospital Con
• Calamity Insurance
 • Life Insurance
• Flood Insurance • First Aid kit
FLOOD • Accident Insurance • Hospital Contact Nos.
• Property Insurance • Monitor Typhoon Warning Signal
• Calamity Insurance

FINANCIAL ASSUMPTION & PROJECTION

General Assumptions

1. 90% of the initial capital requirement came from the equity of the owner and 10% came
from bank loans.
2. PAYBACK
3. Total market share is the combined market share of car owners and non-car owners
within the 1 kilometer radius of the exact location
4. Employees' benefits are estimated at 13% of salaries and wages
5. Increase of Projected Sales (Cafe) by 10% annually
6. Increase of projected car services income by 10% annually
7. The Furniture and Fixtures will be changed after 5 years.
8. Store equipment will be changed after 5 years of operation.
9. The depreciation expense is computed based on acquisition cost divided by the life of
number of years per equipment.
10. The Utilities expense would increase 5% annually.
11. The office, car care and cafe supplies expenses would increase 5% annually.

FINANCIAL STATEMENT OF PROJECT 49 CAR CARE & CAFE

PROJECT COST

Projected Use of Funds

Capital Expenditure
Furniture and Fixture ₱48,190.00
Store Equipment ₱179,157.00
Land Improvement ₱220,430.00
Total Capital Expenditures ₱447,777.00
Pre-Operating Expense
Advertising Expense ₱13,422.00
Permits and Licenses ₱6,500.00
Total Pre-Operating Expense ₱19,922.00
Operating Expense
Utilities Expense ₱126,000.00
Salaries and Benefits Expense ₱1,783,704.00
Cafe Supplies ₱58,143.00
Car Supplies and Accessories ₱116,507.00
General Store Supplies ₱30,124.00
Cleaning Supplies ₱11,670.00
Total Operating Expense ₱2,126,148.00
TOTAL ₱2,593,847.00

INITIAL CAPITAL REQUIREMENT

Capital Expenditure
Furniture and Fixture ₱48,190.00
Store Equipment ₱179,157.00
Land Improvement ₱220,430.00
Total Capital Expenditures ₱447,777.00
Pre-Operating Expense
Advertising Expense ₱13,422.00
Permits and Licenses ₱6,500.00
Total Pre-Operating Expense ₱19,922.00
Operating Expense
Utilities Expense ₱126,000.00

Salaries and Benefits Expense ₱1,783,704.00

Cafe Supplies ₱58,143.00
Car Supplies and Accessories ₱116,507.00
General Store Supplies ₱30,124.00
Cleaning Supplies ₱11,670.00
Total Operating Expense ₱2,126,148.00
Sub-total ₱2,593,847.00
Contingency Fund ₱26,153.00
TOTAL CAPITAL REQUIREMENT ₱2,620,000.00
Bank Loan (10%) ₱262,000.00
Equity (90%) ₱2,358,000.00
Total ₱2,620,000.00

MANPOWER

DAILY NO. OF NO. OF MONTHLY

POSITION ANNUAL WAGE
WAGE STAFF WORKING DAYS WAGE

Manager ₱650.00 1 26 ₱16,900.00 ₱202,800.00

Bookkeeper ₱600.00 1 26 ₱15,600.00 ₱187,200.00
Cashier ₱600.00 1 26 ₱15,600.00 ₱187,200.00
Cook ₱550.00 1 26 ₱14,300.00 ₱171,600.00
Barista ₱550.00 1 26 ₱14,300.00 ₱171,600.00
Service Crew ₱550.00 1 26 ₱14,300.00 ₱171,600.00
Car Personnel ₱560.00 3 26 ₱43,680.00 ₱524,160.00
In house helper ₱537.00 1 26 ₱13,962.00 ₱167,544.00
TOTAL ₱1,783,704.00

PRICE ANALYSIS

Coffee Fruit Shakes

Direct Materials ₱25.00 Direct Materials ₱25.00
Direct Labor ₱15.00 Direct Labor ₱15.00
Factory Overhead Factory Overhead
Supplies ₱45.00 Supplies ₱34.00
Water ₱5.00 Water ₱5.00
Others ₱8.00 Others ₱8.00
Total ₱98.00 Total ₱87.00

Mark up (65%) ₱161.70 Mark up (65%) ₱143.55

Tea Sandwiches
Direct Materials ₱25.00 Direct Materials ₱10.00
 Direct Labor ₱15.00 Direct Labor ₱5.00
Factory Overhead Factory Overhead
Supplies ₱32.00 Supplies ₱20.00
Water ₱5.00 Water ₱5.00
Others ₱8.00 Others ₱7.00
Total ₱85.00 Total ₱47.00

Mark up (65%) ₱140.25 Mark up (65%) ₱77.55

DEPRECIATION

Per Unit Total Salvage Useful

Particulars Quantity Cost Cost Value Life Year 1 Year 2 Year 3 Total
Furniture & Fixture
Circular Table (4-Seater) 3 ₱2,500 ₱7,500 ₱2,500 1 ₱2,500 ₱0 ₱0 ₱2,500
Square Table (2-Seater) 4 ₱1,200 ₱4,800 ₱1,200 1 ₱1,200 ₱0 ₱0 ₱1,200
Kitchen Counter 1 ₱4,700 ₱4,700 ₱4,700 1 ₱4,700 ₱0 ₱0 ₱4,700
Couch 3 ₱2,500 ₱7,500 ₱2,700 1 ₱2,700 ₱0 ₱0 ₱2,700
Locker 1 ₱1,550 ₱1,550 ₱1,550 1 ₱1,550 ₱0 ₱0 ₱1,550
Shelves (Storage for Car
Accessories & Supplies) 3 ₱1,100 ₱3,300 ₱1,100 1 ₱1,100 ₱0 ₱0 ₱1,100
Toilet 2 ₱1,700 ₱3,400 ₱1,700 1 ₱1,700 ₱0 ₱0 ₱1,700
Bathroom Lavatory Sink 2 ₱1,500 ₱3,000 ₱1,500 1 ₱1,500 ₱0 ₱0 ₱1,500
Office Chair & Table set 1 ₱2,000 ₱2,000 ₱2,000 1 ₱2,000 ₱0 ₱0 ₱2,000
Counter Table (for
cashier) 1 ₱1,800 ₱1,800 ₱1,800 1 ₱1,800 ₱0 ₱0 ₱1,800
TOTAL ₱20,550 ₱39,550 ₱20,750 ₱20,750 ₱0 ₱0 ₱20,750
Per Unit Total Salvage Useful
Particulars Quantity Cost Cost Value Life Year 1 Year 2 Year 3 Total
STORE EQUIPMENTS
Cash Register 1 ₱1,750 ₱1,750 ₱875 1 ₱875 ₱875 ₱0 ₱1,750
Laptop 1 ₱20,000 ₱20,000 ₱10,000 2 ₱5,000 ₱5,000 ₱0 ₱10,000
Espresso Machine 1 ₱3,000 ₱3,000 ₱1,500 1 ₱1,500 ₱1,500 ₱0 ₱3,000
Electric Stove 1 ₱3,500 ₱3,500 ₱1,750 1 ₱1,750 ₱1,750 ₱0 ₱3,500
Built-in Kitchen Counter
(with exhaust fan) 1 ₱8,000 ₱8,000 ₱4,000 1 ₱4,000 ₱4,000 ₱0 ₱8,000
7 Cu. Ft. Refrigerator 3 ₱13,200 ₱39,600 ₱1,000 2 ₱6,100 ₱6,100 ₱0 ₱12,200
Chest Freezer (5 cu. ft.) 2 ₱10,500 ₱21,000 ₱800 2 ₱4,850 ₱4,850 ₱0 ₱9,700
Display Fridge 1 ₱6,899 ₱6,899 ₱3,450 1 ₱3,450 ₱3,450 ₱0 ₱6,899
Air Conditioner (Inverted) 1 ₱35,000 ₱35,000 ₱2,000 4 ₱8,250 ₱8,250 ₱8,250 ₱24,750
Brake fluid test
equipment (BFCS 300) 1 ₱1,400 ₱1,400 ₱700 1 ₱700 ₱700 ₱0 ₱1,400
Wheel Aligner 1 ₱20,000 ₱20,000 ₱10,000 2 ₱5,000 ₱5,000 ₱0 ₱10,000
Compressor 1 ₱2,400 ₱2,400 ₱1,200 1 ₱1,200 ₱1,200 ₱0 ₱2,400
Condenser 1 ₱2,750 ₱2,750 ₱1,375 1 ₱1,375 ₱1,375 ₱0 ₱2,750
Leak detector 1 ₱1,900 ₱1,900 ₱950 1 ₱950 ₱950 ₱0 ₱1,900
Pressure washer 1 ₱3,599 ₱3,599 ₱1,800 1 ₱1,800 ₱1,800 ₱0 ₱3,599
Vacuum cleaner 1 ₱2,459 ₱2,459 ₱1,230 1 ₱1,230 ₱1,230 ₱0 ₱2,459
Power sprayer 1 ₱4,200 ₱4,200 ₱2,100 1 ₱2,100 ₱2,100 ₱0 ₱4,200
Pressure tank 1 ₱1,700 ₱1,700 ₱850 1 ₱850 ₱850 ₱0 ₱1,700
TOTAL ₱142,257 ₱179,157 ₱87,079 ₱92,479 ₱50,979 ₱8,250 ₱151,707
OVERALL
DEPRECIATION ₱162,807 ₱218,707 ₱107,829 ₱113,229 ₱50,979 ₱8,250 ₱172,457