1

Chapter 1

INTRODUCTION

The objective of the Study

This study aimed to determine the feasibility study of “The Greatest

Siomai” business in Villa Magsanoc, Tagum City and is specially designed to

assess the demand and supply situation of the proposed business in Villa

Magsanoc, Tagum City. In addition, is to identify the best competitiveness of

the proposed business. Moreover, is finding out the various technicalities in

handling the details of the operation. We also want to determine the ideal set-

up of the management on the proposed business. And lastly, is to analyze the

financial feasibility of the proposed business concerning the profitability,

liquidity and stability of the prospect business.

Methodology

The proponents will distribute the survey questionnaire to the variously

identified respondents. The interview will also be conducted to potential

customers. Observation of other indirect competitors will also be observed by

the proponents for that they might indirectly affect the proposed business

because their business can be a substitute product.

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Scope and limitations of the Study

Through the information, we have gathered in the survey and

interviews conducted. This study focused only on the four important aspects:

the marketing, which generates the demand or at least takes the order for a

product or service. Technical or production, which will estimate the costs and

processes needed to create the products for it become salable. Organization

or management is a factor of production and an economic resource which is

responsible for ensuring that labor and capital are effectively used and

distributed to increase productivity and profitability of the organization. And

lastly, the financial aspect which tracks how well the organization is doing,

paste the bills and collects the money. The study is made through the sharing

of ideas regarding the information gathered.

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Chapter 2

EXECUTIVE SUMMARY

Brief Description of the Project

The proposed business is named The Greatest Siomai. Siomai is one

of the trends in the food industry these days. The store is located at Villa

Magsanoc, Purok Mankilam, Tagum City that offers a delicious and different

variety of siomai products at an affordable price. The geographic area to be

covered by the business is being surrounded by small stores, schools, and

households who have the capabilities to buy the products of the said

business.

Project Contribution to the Economy

The proposed business contributes to the growth of micro-

entrepreneurs as it needs small capital in engaging in this kind of activity. It

will also help the local communities for creating another employment for the

public.

The business will encourage employment opportunities to the residents

that would bring a positive effect in the socio-economic stability. The

government will also benefit directly in this proposed business in the form of

tax payment, business permit and licenses. The entity does not only focus on

profit maximization but also contribute to the welfare of the people.

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Brief Profile of the Proponents

EDUCATIONAL
NAME ADDRESS
BACKGROUND

Aventurado, IV-BS Accounting Purok 5, Basak, Nabunturan,

Drinomie Jean Technology Compostela Valley Province

IV-BS Accounting Binuangan, Maco, ComVal

Baruiz, Lyza Mae
Technology Province

IV-BS Accounting Prk. 6, San Miguel, Tagum

Canillas, Jayca
Technology City

Faelogo, Kristine IV-BS Accounting Blk. 4 Lot 12, Camella Homes,

Marie Technology Tagum City

IV-BS Accounting Blk. 17 Lot 1, Villa Magsanoc,

Gallibo, Mary Grace
Technology Tagum City

Ombajin, Sheena IV-BS Accounting Prk. 10-A, Alejal, Carmen,

Marie Technology Davao del Norte

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Chapter 3

MARKETING PLAN

Description of the Product

Siomai is a type of traditional Chinese dumpling, originating from

Hohhot, Inner Mongolia. In Cantonese cuisine, it is usually served as a dim

sum snack. It is a popular dim sum dish which consists of ground pork or

shrimp or both, carrots, dried mushrooms, green onions and flavored with soy

sauce, Chinese wine, salt, pepper and sesame oil. Egg and cornstarch are

used to bind the mixture together. It is then wrapped in wonton wrappers and

steamed. Then our supplier's products will have different varieties like beef,

pork and our bestselling variety will be Japanese siomai. Our product might

be typical and classic, but it will surely come at a very reasonable price

without compromising its quality and taste.

Comparison of the Product with its Competitors

The product is definitely unique compared to the products of our

existing competitors. What makes it different among others is that the product

is served at a lower price without compromising its taste, and the product itself

is appealing in the eyes of the target customers because it offers a tasty

variation of a traditional snack with a delicious sauce. It will surely bring out

the curiosity of the customers, and once they tasted our products, they'll

surely come back for more. Not to mention its proximity to the village belt that

the residents don't need to go to the mall to buy their favorite snack at a high

price.
 6

Location

The proposed business will be located at Villa Magsanoc Brgy.

Mankilam, Tagum City. The chosen area is very accessible especially to its

residents and students because it will be located near school and the said

village.

Market Area

The market area of the business is in Tagum City, Davao del Norte.

Main Customers

The main customers of the proposed business will be the residents of

Villa Magsanoc Brgy. Mankilam, Tagum City and the nearby residents and

students of the nearby schools.

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Figure 1.

Vicinity Map
 8

Figure 2.

Vicinity Map
 9

Figure 3.

Cart Layout
 10

Historical Demand

Presented in Table 1 is the historical demand of Siomai in Villa

Magsanoc, Tagum City. The proponents conducted a series of interviews

among the residents living in the said place. They interviewed 329 residents

around Villa Magsanoc, 293 residents answered that they are willing to buy

Siomai and the proponents divide it by 329. They found out that 89% of the

residents are willing to purchase the product.

The proponents discovered that the total consumption of Siomai in a

week from the 293 residents is 879. They divided the total consumption of

Siomai which is 879 by 293 residents. And they found out that the average

consumption of Siomai per week of the residents in Villa Magsanoc is 3

serving of siomai. The amounts are based on Annex A.

Table 1

Historical Demand

Total
No. of
Target No. of Demand of
Approximate weeks
Market % Consumption Siomai per
Year Population per
(89%) per week year
year
(per set)

2016 1,543.00 1,374.16 3 52 214,369

2017 1,783.00 1,587.90 3 52 247,712

2018 1,854.00 1,651.13 3 52 257,576

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Projected Demand

Table 2 shows the projected demand for Siomai. It is shown that the

average increase of the demand in percentage is 9.77% based on the

historical demand. The computation for getting the percentage of the average

increase of demand is based on Annex B.

Table 2

Projected Demand

Year Base Year Average Increase Projected Demand

2019 257,576 25,160 282,737

2020 282,737 27,618 310,355

2021 310,355 30,316 340,670

Historical Supply

Table 3 shows the historical supply of the proposed business that is

based on competitors. This is to show the Siomai business is profitable in

their production. The said amounts are based on Annex A.

Table 3

Historical Supply

Competitors 2016 2017 2018

Master Siomai 9,341 11,222 13,037

Siomai King 3,447 4,294 5,141

Others/Streets 6,048 8,064 10,080

Total 18,836 23,580 28,258

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Projected Supply

Table 4 shows the projected supply of Siomai. Shown that the average

increase of the supply in percentage is 22.51% based on the historical supply.

The computation for the percentage of average increase of supply is based on

Annex B.

Table 4

Projected Supply

Total Projected
Year Base Year Average Increase
Supply

2019 28,258 6,361 34,619

2020 34,619 7,793 42,412

2021 42,412 9,547 51,959

Comparative Demand and Supply Analysis

Shown in Table 5 is the summary of total historical and projected

demand and supply of Siomai here in Tagum City. It can be observed in the

table that there are still demands of Siomai based on the unsatisfied demand.
 13

Table 5

Demand and Supply Analysis

Year Demand Supply Unsatisfied Demand

Historical Values

2016 214,369 18,836 195,533

2017 247,712 23,580 224,132

2018 257,576 28,258 229,319

Projected Values

2019 282,737 34,619 248,118

2020 310,355 42,412 267,943

2021 340,670 51,959 288,711

Projected Market Share

Table 6 shows the computation for the projected market share. Market

share is based on the production capacity of the proposed business against

the unsatisfied demand. The amounts used in market share and projected

production capacity is based on Annex D.

Table 6

Projected Market Share

Year Unsatisfied Demand Production Capacity Market share %

2019 248,118.00 42,192 17%

2020 267,942.94 45,563 17%

2021 288,711.35 49,095 17%

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Projected Selling Price

Shown in Table 7 is the projected selling price of delicious and

affordable Siomai. The proponents assume that per projection, it is increasing

by P 5.00 per year. The projection increase started on the second year of

operation. The reason why there is an increase in price is due to the increase

in prices of raw materials.

Table 7

Projected Selling Price

Particulars 2019 2020 2021

Japanese 20.00 25.00 30.00

Beef 20.00 25.00 30.00

Pork 20.00 25.00 30.00

Projected Sales

The percentage used is based on the number of customers that

choose a specific variety of siomai divided by the total number of customers'

desired variety of siomai. The said percentage is used through the three

projected years as we assume that it is a constant base from the interview we

conducted towards the residents of Villa Magsanoc, Tagum City and its

nearby places.

The percentages used in the following table used in projected sales are

based on Annex D. Table 8 shows the projected sales of Siomai in 2019. The
 15

quantity and price of the ingredients and the total sales in 2019 is P

843,840.00.

Table 8

Projected Sales 2019

Price per Total Projected

Particulars % Quantity
set Sales

Beef Siomai 23% 9,704 20.00 194,083.20

Pork Siomai 37% 15,611 20.00 312,220.80

Japanese Siomai 40% 16,877 20.00 337,536.00

Total 100% 42,192 20.00 843,840.00

Presented in Table 9, is the projected sales of Siomai which increases

by P5.00 in 2020 because every quantity of price of ingredients increases that

is why the total sales in 2020 are P 1,139,079.87.

Table 9

Projected Sales 2020

Price per Total Projected

Particulars % Quantity
set Sales

Beef Siomai 23% 10,480 25.00 261,988.37

Pork Siomai 37% 16,858 25.00 421,459.55

Japanese Siomai 40% 18,225 25.00 455,631.95

TOTAL 100% 45,563 25.00 1,139,079.87

 16

Presented in Table 10, is the projected sales of Siomai which increases

by P5.00 in 2021 because every quantity of price of ingredients increases that

is why the total sales in 2021 is P 1,472,844.69.

Table 10

Projected Sales 2021

Price per Total Projected

Particulars % Quantity
set Sales

Beef Siomai 23% 11,292 30.00 338,754.28

Pork Siomai 37% 18,165 30.00 544,952.53

Japanese Siomai 40% 19,638 30.00 589,137.88

TOTAL 100% 49,095 30.00 1,472,844.69

Summary of Sales

Table 11 reveals the summary of sales in the next three years. In the

table, it can be seen that the sales are increasing. It indicates a potential and

a positive look of the business in the proposed location.

Table 11

Summary of Sales

Year Amount

2019 843,840.00

2020 1,139,079.87

2021 1,472,844.69
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Marketing Strategy

Promotional Measures and Marketing

The proponents proposed a unique yet effective way to promote the

product to the customers. They plan to advertise the product in various ways

like posting in their social media accounts to be able to have mass

advertisement and using flyers worth 700 pesos and discounts budgeted to

800 pesos to introduce their product. It is assumed that there is an increase of

5% in every year.

Table 12

Breakdown of Promotional Expenses

Particulars Price

Flyers (100pcs.) 700.00

Discount 800.00

Total 1,500.00

Table 13

Projected Promotional Expense

Year Total Cost

2019 1,500.00

2020 1,575.00

2021 1,653.75
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Distribution Strategy

The customer will go to the business location where the proposed

business will be located and it is at Villa Magsanoc, Tagum City.

Pricing Strategy

Based on the interview from the potential customers they said that they

could afford the proposed price and as long as the proponents can meet the

satisfaction of the customers.

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Chapter 4

PRODUCTION PLAN

Production Aspect

This chapter shows out the production process to be involved in the

preparation of siomai snacks. The said product is a ready-made siomai

purchased from the supplier that the company will preserve and reheat in the

time of sale. The proponents consider this as an essential aspect because it

involves procedures on how to come up with a delicious and affordable siomai

snacks product.

Terms and Condition of Purchase Equipment

The purchase of equipment will be paid on a cash basis to avail

discounts possibly.

Source of Equipment

The equipment to be used will be purchased at Department Store and

Grocery Stores of Malls of Tagum City and also it is available online and all

the items at a reasonable price.

Direct Material Availability

The proponents decided that the direct materials used in the proposed

business can be found in Tagum City.

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Siomai Snack Process

1. Pour water in the

pot and let it boil.

2. Arrange the
siomai in the
steamer and out it to
the stockpot.

3. Steam siomai for

15-25 minutes.

4. Serve hot with chili

sauce or regular
sauce and calamansi
or lemon dip.

Figure 4

Siomai Snack Process Flow Chart

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Production Capacity

Table 14 shows the production capacity of the business in three

consecutive years. The amount used in the table is based on Annex D.

Table 14

Production Capacity

Year Capacity

2019 42,192

2020 45,563

2021 49,095

Purchase of Direct Materials

Table 15 shows the purchase of raw materials. The cost of raw

materials is composed of 1 pack of each variety (Japanese siomai, pork

siomai and beef siomai), 1/ 4 pack of chili sauce, 1/4 kilo of calamansi, and

0.200 liters of soy sauce. The number of servings is based on the number of

siomai in a pack which is 60 pieces multiply to 3 which is the total number of

packs then divided by the number of pieces per serving which is 4.

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Table 15

Cost of Raw Materials-Japanese/Pork/Beef Siomai

Ingredients Unit Unit Cost Total Cost

Quantity

Japanese/Pork/
pack
Beef Siomai 3 150.00 450.00

Chili Sauce 1/4 pack

160.00 40.00

Calamansi 1/4 kilo

20.00 5.00

Soy Sauce liter

0.200 40.00 8.00

Total Cost
503.00

Produce No. of

Servings 45.00

Cost per Serving

11.18

Table 16 shows the summary of cost per serving for a different variety

of siomai for the year 2019, 2020 and 2021 with cost per serving of 11.18,

11.74 and 12.32 respectively. Proponents assumed to have an increase of

5% per year.
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Table 16

Summary of Cost per Serving

Year Cost per serving

2019 11.18

2020 11.74

2021 12.32

Table 17 shows the summary of purchased material for Japanese

Siomai, Pork Siomai and Beef Siomai. In 2018 the total cost of purchased

material is P471,612.80 ; in 2019 is P534,760.03 and in 2020 is P605,020.05.

Table 17

Summary Cost of Raw Materials

Year Quantity Cost per serving Total

2019 42,192 11.18 471,612.80

2020 45,563 11.74 534,760.03

2021 49,095 12.32 605,020.05

Direct Labor

Table 18 shows the Direct Labor. Direct labor is the product cost that is

needed in the production of the product. The table below will show the

projected cost of labor annually. It is projected that it will increase every year

by 5%.
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Table 18

Direct Labor (Cook)

Year Total Amount

2019 54,000.00

2020 56,700.00

2021 59,535.00

Freight In

Presented in Table 19 is the projected transportation cost for the

purchases of products computed at 800 pesos per month multiplied by 12

months per year. Proponents assumed to have an increase of 5% per year.

Table 19

Projected Freight In

Year Total Amount

2019 9,600.00

2020 10,080.00

2021 10,584.00

Fixed Equipment

Table 20 shows the machines and equipment to be used by the

proponents. The following kitchen equipment and machinery have a long-

term economic use for the production.

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Table 20

Fixed Equipment

Total
Particulars Quantity Unit Cost
Amount

Steamer 1 2,450.00 2,450.00

Portable Butane Gas Stove 1 545.00 545.00

Cooler 1 2,455.00 2,455.00

Total 3 5,450.00

Depreciation

Presented in Table 21 is the computation of the depreciation expense.

The proponents used the straight-line method of depreciation. Furthermore, it

is assumed that the economic life of the capital is 3 years. The proponent

uses 3 years of the estimated value of depreciating property.

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Table 21

Depreciation Expense

Particular Cost Estimated 2019 2020 2021

Life

Fixed Equipment

Steamer 2,450.00 3 816.67 816.67 816.67

Portable Butane
545.00 3 181.67 181.67 181.67
Gas Stove

Cooler 2,455.00 3 818.33 818.33 818.33

Total 5,450.00 1,816.67 1,816.67 1,816.67

Utility Expense

Table 22 shows the utility expense of the business such as power

supply per month and the annual cost to be incurred by the proposed

business. It shows that on year 1 the utility expense is P2,160.00.

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Table 22

Utility Expense

Rate Annual

Utility Source Basis Per Total

Month Cost

Tagum Water cubic

Water Supply 180.00 2,160.00
District meters

Total 2,160.00

Projected Utility Expense

Table 23 shows the projected utility expense for the next three years. It

is assumed to have an increase of 5% per year.

Table 23

Projected Utility Expense

Year Total Amount

2019 2,160.00

2020 2,268.00

2021 2,381.40

Rent Expense

In the interview conducted, the estimated rent per month is 1,500 or a

total of 18,000 per year. It is further assumed to increase by 5% per year.

Details are presented in Table 24.

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Table 24

Rent Expense

Year Total Cost

2019 18,000.00

2020 18,900.00

2021 19,845.00

Table 25

Summary of Projected Manufacturing Cost

Particulars 2019 2020 2021

Raw Materials 471,612.80 534,760.03 605,020.05

Direct Labor 54,000.00 56,700.00 59,535.00

Freight In 9,600.00 10,080.00 10,584.00

Manufacturing Overhead:

Depreciation 1,816.67 1,816.67 1,816.67

Utilities 2,160.00 2,268.00 2,381.40

Rent 18,000.00 18,900.00 19,845.00

Total Manufacturing
21,976.67 22,984.67 24,043.07
Overhead

Total 557,189.47 624,524.69 699,182.12

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Operating Expense

The following next tables indicate the operating expense that the

business will incur in the operating years.

Salaries and Wages

Table 26 shows the salaries of the employee of The Greatest Siomai. It

is assumed to increase by 5% per year. The cashier is projected to receive a

salary of P 3, 500 per month or a total of P 42,000 for 2019, P 44,100 for 2020

and P 46,305 for the year 2021.

Table 26

Salaries and Wages(Cashier)

Year Total Cost

2019 42,000.00

2020 44,100.00

2021 46,305.00

Honorarium

Table 27 shows the honorarium given to the bookkeeper of The

Greatest Siomai. It is assumed to increase by 5% per year. The bookkeeper is

projected to receive P 1,500 per month or a total of P 18,000 for 2019, P

18,900 for 2020 and P 19,845 for 2021.

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Table 27

Honorarium(Bookkeeper)

Year Total Cost

2019 18,000.00

2020 18,900.00

2021 19,845.00

Utensils Expense

There are kitchen utensils which are charged directly to expense

because it would not be repaired if in case it will be destroyed. The

proponents get a budget for replacement per year if in case it could no longer

be used. Table 28 and 29 show the details and the budgeted amount per year

respectively.

Table 28

Utensils Expense

Particulars Quantity Unit Cost Annual Total Cost

Tong 12 40.00 480.00

Knife 5 170.00 850.00

Chopping board 2 120.00 240.00

Total 1,570.00
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Table 28 shows the summary of utensils expenses for the (3) three

executive years of the proposed business operation with 5% increase per

year.

Table 29

Summary of Utensils Expense

Year Total Utensils Expense

2019 1,570.00

2020 1,648.50

2021 1,730.93

Permit, Taxes and Licenses

Table 30 shows the breakdown of Permits, Taxes and Licenses.

Table 30
Breakdown of Permits, Taxes and Licenses
Amount
Inspection fee 100.00
ESPF 125.00

SF/RCEPF 40.00

Fire (National) 100.00

Engineering 600.00

Others 670.00

TOTAL 1,900.00
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Table 31 shows the operating expense of the business permit, taxes

and licenses cost P1, 900.00 and it is assumed to increase by 5% annually.

Table 31

Projected Permits, Taxes and Licenses

Year Total Cost

2019 1,900.00

2020 1,995.00

2021 2,094.75

Office Supplies

Table 32 shows the record of office supplies expense with unit cost and

quantity for a year. The total cost for office supplies expense is P 991.00.

Table 32
Office Supplies Expense
Particulars Quantity Unit Cost Annual Total Cost
Receipt 12 22.50 270.00
Ballpen 25 7.00 175.00
Notebook 12 18.00 216.00
Calculator 1 330.00 330.00
Total 991.00

Table 33 is the summary of office supplies expense. It is projected to

increase 5% per year.

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Table 33
Summary of Office Supplies Expense
Year Total Office Supplies Expense
2019 991.00
2020 1,040.55
2021 1,092.58

Store Supplies

Table 34 shows the record of supplies expense annually with the unit

cost and quantity. The total cost of store supplies expense is P23,717.60.

Table 34

Store Supplies

Particulars Unit cost Quantity Annual cost

Butane 18.00 360 6,480.00

Table Napkin Holder 40.00 4 160.00

Plastic Jar 40.00 6 240.00

Trash Can 139.75 4 559.00

Tissue 18.00 104 1,872.00

Paper Siomai Tray 35.10 324 11,372.40

Cellophane 9.10 162 1,474.20

Rags 30.00 12 360.00

Chair 200.00 6 1,200.00

Total 23,717.60
 34

Presented in Table 35 is the summary of store supplies expense. It is

projected to increase by 5% per year.

Table 35

Summary of Store Supplies Expense

Year Total Amount

2019 23,717.60

2020 24,903.48

2021 26,148.65

Repair and Maintenance Expense

Table 36 shows the annual repair and maintenance of equipment used

in the business operation which assumed with an annual total amount of

P2,400.00 and a 5% increase per year.

Table 36

Projected Repair and Maintenance Expense

Year Total Amount

2019 2,400.00

2020 2,520.00

2021 2,646.00
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Table 37

Summary of Operating Expense

Particulars 2019 2020 2021

Promotional Expense
1,500.00 1,575.00 1,653.75

Salaries and Wages

42,000.00 44,100.00 46,305.00

Honorarium
18,000.00 18,900.00 19,845.00

Utensils Expense
1,570.00 1,648.50 1,730.93

Permit and Licenses

Expense 3,120.00 3,276.00 3,439.80

Office Supplies
Expense 991.00 1,040.55 1,092.58

Store Supplies
Expense 23,717.60 24,903.48 26,148.65

Repairs and
Maintenance 2,400.00 2,520.00 2,646.00

Total
93,298.60 97,963.53 102,861.71
 36

Chapter 5

MANAGEMENT AND ORGANIZATIONAL PLAN

Organization and Management Aspect

Forms of Business Enterprise

The proponents choose the sole proprietorship form business since

sole proprietorship is easy to handle. The proponents believed that a single

business could be efficiently and effectively manage by the owner.

Management and Organization Structure

The figure shows the existing organizational structure of the business.

Since it is a sole business organization, the owner will be the one responsible

for managing the business. And he will be the one to discuss the different

processes of its operation to his employee. And the employee is responsible

for rendering good service and preparing the orders of the customers.
 37

Manager/Owner

Bookkeeper

Cook Cashier

Figure 5

The Greatest Siomai Proposed Organizational Structure

 38

Management Qualifications and Functions

Job Description Qualifications Functions

 Can cook well.  Responsible for

 College/ high preparing the order

Cook school level of the customer.

 Hardworking

 Has a good

attitude

 Has experience in  Responsible on

managing money. handling the

 College/ high money and render

Cashier school level excellent service.

 Hardworking

 Has a good

attitude
 39

Chapter 6

FINANCIAL PLAN

This chapter shows the projected income statement, projected cash

flows, and projected balance sheet. It will determine the operation of the

business with profitability for the next three years.

Major assumptions

Market share is assumed 17% of the total unsatisfied demand per year.

1. Projection is computed using the moving average method.

2. Depreciation is calculated using the straight line method.

3. The promotional expense is assumed to increase by 5% per year.

4. Utility expense is assumed to increase by 5% per year.

5. Rent expense is assumed to increase by 5% per year.

6. Salaries and wages are expected to increase by 5% per year.

7. Honorarium is assumed to increase by 5% per year.

8. Utensils expense is assumed to increase by 5% per year.

9. Office supplies expense is assumed to increase by 5% per year.

10. Store supplies expense is assumed to increase by 5% per year.

11. Repair and maintenance are assumed to increase by 5% per year.

12. Permit, taxes and licenses are assumed to increase by 5% per year.
 40

13. Transportation expense is assumed to increase by 5% per year.

14. Drawing is assumed to be 30% for 2019, 50% for 2020 and 65% for

2021.

Total projected cost

The proposed business of the proponents needs P 57,200.00 for the

operation of the business.

Pre-operating Expense
Permits, Taxes and Licenses
1,900.00
Other Charges -
Initial Fixed Capital Cost
Equipment
5,450.00
Initial Working Capital (1 month)
Raw Materials
39,301.07
Utilities Expense
180.00
Rent Expense
1,500.00
Promotional Expense
125.00
Salaries and Wages
3,500.00
Honorarium
1,500.00
Utensil Expense
130.83
Office Supplies Expense
82.58
Store Supplies Expense
1,976.47
Repairs and Maintenance
200.00
Total
55,845.95
Add: Cash on Hand
1,354.05
Total Investment Cost
57,200.00
 41

THE GREATEST SIOMAI

Projected Income Statement

For The Years Ended December 31, 2019-2021

2019 2020 2021

Sales 843,840.00 1,139,079.87 1,472,844.69

Total Sales 843,840.00 1,139,079.87 1,472,844.69

Less: Cost of Goods Sold

Direct Materials 471,612.80 534,760.03 605,020.05

Direct Labor 54,000.00 56,700.00 59,535.00

Freight In 9,600.00 10,080.00 10,584.00

Manufacturing Overhead 21,976.67 22,984.67 24,043.07

Total Cost of Goods Sold 557,189.47 624,524.69 699,182.12

Total Gross Profit 286,650.53 514,555.17 773,662.57

Less: Operating Expenses

Promotional Expenses 1,500.00 1,575.00 1,653.75

Salaries and Wages 42,000.00 44,100.00 46,305.00
Honorarium 18,000.00 18,900.00 19,845.00

Utensil Expense
1,570.00 1,648.50 1,730.93
Permits, Taxes and
Licenses 1,900.00 1,995.00 2,094.75

Store Supplies Expense 23,717.60 24,903.48 26,148.65

Repairs and Maintenance 2,400.00 2,520.00 2,646.00
Total Operating Expenses 91,087.60 95,641.98 100,424.08
Net Income 195,562.93 418,913.19 673,238.49
 42

THE GREATEST SIOMAI

Projected Statement of Cash Flow

For The Years Ended December 31, 2019-2021

2019 2020 2021

Cash Flow from Operating Activities

Net Income 195,562.93 418,913.19 673,238.49

Depreciation 1,816.67 1,816.67 1,816.67

Net Cash Provided by Operating 197,379.60 420,729.86 675,055.16

Cash Flow from Investing Activities

Purchase of
5,450.00 0.00 0.00
Equipment

Net Cash Used by Investing (5,450.00) (0.00) (0.00)

Cash Flow from Financing Activities
Cash
57,200.00 0.00 0.00
Contribution
Cash
58,668.88 209,456.60 437,605.02
Withdrawal
Net Cash Provided by Financing (1,468.88) (209,456.60) (437,605.02)
Increase (Decrease) of Cash 190,460.72 211,273.26 237,450.14

Cash Balance, Beginning 0.00 190,460.72 401,733.98

Cash Balance, Ending 190,460.72 401,733.98 639,184.12

 43

THE GREATEST SIOMAI

Projected Balance Sheet

As of December 31, 2019 - 2021

2019 2020 2021

ASSETS
Current Asset

Cash 190,460.72 401,733.98 639,184.12

Noncurrent Assets

Property, Plant & Equipment 5,450.00 5,450.00 5,450.00

Less: Accumulated Depreciation 1,816.67 3,633.33 5,450.00

Net Book Value 3,633.33 1,816.67 0.00

Total Assets 194,094.05 403,550.65 639,184.12

OWNER'S EQUITY
Capital Beginning 57,200.00 194,094.05 403,550.65

Net Income 195,562.93 418,913.19 673,238.49

Less: Drawings (58,668.88) (209,456.60) (437,605.02)

Total Owner's Equity 194,094.05 403,550.65 639,184.12
 44

APPENDIX

Financial Ratios Analysis

Gross Profit Ratio

The Gross Profit Ratio is a determinant whether the proposed business

will be efficient in utilizing raw materials. In year 2019 the Gross Profit Ratio is

33.97% which means that for every sale we’ll produce 33.97% of it goes to

Gross Profit Margin which increases for the succeeding years of 45.17% for

2020 and 52.53% for 2021.

Gross Profit
Ratio
2019 2020 2021

Gross Profit 286,650.53 514,555.17 773,662.57

Divide: Total
843,840.00 1,139,079.87 1,472,844.69
Sales
33.97% 45.17% 52.53%

Net Profit Ratio

The net profit ratio is used to measure the overall profitability and

hence it is very useful to proprietors. Annual net income and total revenue

is increasing per year thereby giving an increasing net profit ratio for the

succeeding years.

2019 2020 2021

Net Income 194,342.93 417,632.19 671,893.44
Divide:
843,840.00 1,139,079.87 1,472,844.69
Sales
Net Profit
23.03% 36.66% 45.62%
Ratio
 45

Return on Investment

The return on investment is a performance measure used to evaluate

the efficiency of an investment. This means that the potential return/s we

might get from our investment is 100.57% for 2019, 103.87% for 2020 and

105.44% for 2021.

2019 2020 2021

Net Income 194,342.93 417,632.19 671,893.44

Divide: Average Total

193,240.05 402,056.15 637,218.85
Assets

Return on Investment 100.57% 103.87% 105.44%

Payback Period

The length of time required to recover the cost an investment. The

payback period of a given investment or project is an important determinant

whether to undertake the position or project. Long payback periods are

typically not desirable for investment positions.

Payback Period

Initial Investment
57,200.00

Divide by Net Operating Cash Flow

189,606.72

Payback Period 4 months

 46

ANNEX A

Target Market

1854/{1+[1854*(0.05^2)]}=329 293/329= 0.89 * 100= 89%

Willing to buy- 293

Historical Demand

Approximate Target No. of Consumption/week * Total

Population Market No. of weeks/year Demand

1,543 * 89% = 1,374.16 *3 * 52 = 214,369.13

1,783 * 89% = 1,587.90 *3 * 52 = 247,712.35

1,854 * 89% = 1,651.13 *3 * 52 = 257,576.39

Historical Supply

Master Siomai

2016 (139*7*4*12)*0.2 = 9,340.80

2017 (167*7*4*12)*0.2 = 11,222.40

2018 (194*7*4*12)*0.2 = 13,036.80

 47

Siomai King

2016 (57*7*4*12)*0.18 = 3,447.36

2017 (71*7*4*12)*0.18 = 4,294.08

2018 (85*7*4*12)*0.18 = 5,140.80

Other/Streets

2016 (6*60*7*4*12)*0.05 = 6,048.00

2017 (8*60*7*4*12)*0.05 = 8,064.00

2018 (10*60*7*4*12)*0.05 = 10,080.00

 48

ANNEX B

Rate of Change in Demand

Year Total Demand

2016 214,369.13

2017 247,712.35

2018 257,576.39

(247,712.35-214,369.13)/214,369.13 = 0.16

(256,576.39-247,712.35)/247,712.35 = 0.04

0.20

/ ___ 2

0.0977

* ___ 100

9.77%

Projected Demand

Average Increase

257,576.39 * 9.77% =25,160.28

282,736.67 * 9.77% =27,617.96

310,354.62 * 9.77% =30,315.7

 49

Base Year Average Increase Projected Demand

257,576.39 + 25,160.28 = 282,736.67

282,736.67 + 27,617.96 = 310,354.62

310,354.62 + 30,315.70 = 340,670.32

 50

ANNEX C

Rate of change in Supply

Year Total Supply

2016 18,836.16

2017 23,580.48

2018 28,257.60

(23,580.48-18,836.16)/18,836.16 = 0.25

(28,257.16-23,580.40)/23,580.48 = 0.20

0.45

/ 2

0.2251

* 100

22.51

Projected Supply

Average Increase

28,257.60 * 22.51% = 6,361.07

34,618.67 * 22.51% = 7,793.01

42,411.68 * 22.51% = 9,547.30

 51

Base Year Average Increase Projected Supply

28,257.60 + 6,361.07 = 34,618.67

34,618.67 + 7,793.01 = 42,411.68

42,411.68 + 9,547.30 = 51,958.98

 52

ANNEX D

Production Capacity (1st Year)

Residents
Average No. of No. of Production
Willing to
Consumption/Week Weeks/Month Month/year Capacity
Buy

293.00 * 3 * 4 * 12 = 42,192.00

Market Share (1st Year)

Production Capacity Unsatisfied Demand Market Share

42,192.00 / 248,118 = 17%

Projected Production Capacity

Year Unsatisfied Demand

2019 248,118.00 / 42,192 = 17%

Year Unsatisfied Demand Market Projected Production

Share Capacity

2020 267,942.94 * 17% 45,563.19

2021 288,711.35 * 17% 49,094.82

 53

Percentage

293 * 3= 879.00

No. of
Variety
Residents

Beef
202 202/879 =0.23 * 100 =23%
Siomai

Pork
325 325/879 =0.37 * 100 =37%
Siomai

Japanese
352 352/879 =0.40 * 100 =40%
Siomai
 54

ANNEX E

Questionnaire
 55

ANNEX F

Sample Survey
56
 57

ANNEX G

Quotation
 58

ANNEX H

Population
 59

ANNEX I

Certificate of Appearance
 60

ANNEX J

Business Permit Assessment Form

 61

ANNEX K

Business Information Sheet