Revised Paper

HUG CAKE
HUG CAKE
A
Business Proposal
Presented to the Faculty of
Science, Technology, Engineering and Mathematics (STEM)
AGUSAN NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL DEPARTMENT
T. Sanchez Street, Butuan City
Submitted by:
XII- HAWKING
Bouquia, Berlynne Mae B.

Dicdican, Pia Jasfaith A.
Dicdican, Pia Jashope A.
Galeon, Winjosh J.
Sarmiento, Eunice Lois A.
Yamit, Kayezelyn
Submitted to:
ROUEL T. PEREZ, Ph.D.

Entrepreneurship Professor
OCTOBER 2019
TABLE OF CONTENTS
Page
ACKNOWLEDGEMENT ii
DEDICATION iii
TABLE OF CONTENTS iv
EXECUTIVE SUMMARY
Brief Profile of the Entrepreneurs 4
Significance of the product 6
SECTION 1 MARKETING PLAN

1.1 Product Description 7
1.2 Comparison of the Product with its Competitors 8
1.3 Location 10
1.4 Market Area 10
1.5 Main Customers 10
1.6 Total Demand 11
1.7 Market Share 11
1.8 Selling Price 11
1.9 Sales Forecast 11
1.10 Promotional Method 12
1.11 Marketing Strategies 12
1.12 Marketing Budget 16
SECTION 2 PRODUCTION PLAN

2.1 Production Process 17
2.2 Fixed Capital 22
2.3 Life of Fixed Capital 23
2.4 Maintenance and Repairs 24
2.5 Source of Equipment 24
2.6 Planned Capacity 25
2.7 Future Capacity 25
2.8 Terms and Conditions of Purchase Equipment 27
2.9 Factory Location and Layout 27
2.10 Raw Materials 28
2.11 Cost of Raw Materials 30
2.12 Availability of Raw Materials 31
2.13 Labor 32
2.14 Cost of Labor 32
2.15 Labour Availabulity 33
2.16 Labuor Productivity 33
2.17 Factory Overhead Expenses 33
2.18 Production Cost 36
SECTION 3 ORGANIZATION AND MANAGEMENT PLAN

3.1 Form of Business 40
3.2 Organizational Structure 41
3.3 Business Experience and Qualifications of the 42
Entrepreneurs
3.4 Pre-operating Activities 45
3.5 Pre-operating Expenses 45
3.6 Equipment and Facilities 47
3.7 Administrative Expenses 42
SECTION 4 FINANCIAL PLAN

4.1 Project Cost 54
4.2 Income Statement 72
4.3 Cash Flow Statement 74
4.4 Balance Sheet 76
4.5 Return of Investment 76
4.6 Pro-Forma Income Statement 78
LIST OF TABLES
LIST OF FIGURES
ACKNOWLEDGEMENT
The researchers want to give thanks to those people who had contributed
in making this work to make the project become a reality. They wish to express
their warm expression to the following:
To the Almighty Father for the wisdom and determination that he gave to
the researchers while doing the project and giving the researchers the strength,
good health and peace of mind to finish the research paper;
To Dr. Rouel T. Perez, who helped in giving advices, support and
encouragement to finish this paper;
To their classmates, Grade 12 Hawking, for their guidance and patience.
And making themselves available whenever they are in need of help in making
their research paper;
Lastly, the entrepreneurs would like to extend their gratitude to their
families for their wholehearted support especially in terms of financial assistance
in finishing their research paper.

DEDICATION
We humbly dedicate this work to our ever supporting entrepreneur smiling
teacher Dr. Rouel T. Perez the person who led us to have a potential to be an
entrepreneur one day, giving us his time for us to finish our project. We will never
forget for what his done for his effort, concern, and time. He is one of the reasons
that we successfully finished our work.
This project is also dedicated to our parents for their support for giving us
what we need throughout the process, and special thanks to Ramon Baring the
owner of Maricel salon for his inspirational interview with us we never would’ve
done this project without her.
Let’s not forget the members of the group, for the hard work, helping each
other fighting all sorrows, solving all problems, and overcoming confusion. And
all Students of Agusan National High School – Senior High School Department,
for they are the aim and the biggest contribution of support in the project
And, above all, God without him this are all for nothing he never
surrendered to shed us his Love, grace and wisdom to accomplish this project
that, somehow in the very near future, may contribute to help to those who will
use and appreciate it.

EXECUTIVE SUMMARY
We came up with our company name BENYCID for it represents every
name of the owners of the company. The partnership and the bonds the owners
have they decided to put it that way for B stands for Berlynne Bouquia, E stands
for Eunice Sarmiento, N stands for WiNjosh Galeon, Y stands for Kayezelyn
Yamit lastly the CID if it will be reversed it is DIC and it stands for the twins who
are Faith and Hope Dicdican.
For our company logo, the BEN and CID words are color red for it
symbolizes the company's owners strong bond with each other, while the Y is
color green for it represents the company being eco-friendly to the environment.
The letter Y's font was also designed for a reason, in chemistry 1, three lines
represents three carbons bonded to another so it has triple bond that means it is
the strongest bond. In conclusion, Y is in the center for it is the reason of the
partnership of the owners and it has created a strong bond between the owner
that can't be easily broken.
Now to the product's logo which is the hug cakes. It was written Hug
Cakes in the middle of the two rectangular dark brown color. The dark brown
color means that it is the chocolate filling while the lighter color represents the
pancake. It is a burger like kind of structure that the Hug Cakes will have and the
reason why it is called Hug Cake since they appear like the two pancakes with
chocolate fillings inside are hugging each other. The eyes represents the
customers, in every bite size of Hug Cakes they will consume, their eyes will
show the evidence of Hug Cakes' mesmerizing taste of the product.
Benycid Company has or is an innovative business that will provide
delicious and affordable pancakes. The form of business will be partnership,
owned and operated by Kayezelyn Yamit, Berlynne Bouquia, Eunice Sarmiento,
Faith Dicdican, Hope Dicdican and Winjosh Galeon. The company or business is
scheduled to to begin operations on September 23, 2019 and it will be located at
A.D. Curato Street, Butuan City. The Company is expected to have a total of
₱1,500.00 sales, ₱753.63 cost of goods sold and a net profit of ₱569.37 in the
month of September having only 3 days of selling. For the month of October,
having 5 days of selling the product, the company aims to have a total of
₱2,875.00 sales, ₱1,347.27 cost of goods sold and a net profit of ₱1,441.48.
The company aims to be unique compared to any pancake house. It will
serve pancake with choco filling that is tasty in a comfortable environment. It will
target all customers especially the students and pancake lovers.
The main goal of our company is to inspire and spread moments of love,
comfort and happiness and to create value and make a difference. To be one of
the popular pancake sellers in the Philippines is also one of our goals having a
lot of franchise to continue by serving the best yet simple delicious pancakes.
What sets Hug Cakes apart from other commercial pancake company
stores is that Hug Cakes offers its unique batter mixture in a very affordable price
with our home made chocolate filling which will benefit the students with tight
budget.
Hug Cakes serves a product in a burger like figure pancakes in which
there are two bite size pancakes with a chocalate filling in between. With a
balance of sweetness from the chocolate filling and fluffiness from the pancakes,
Huggy Cakes make sure that in every bite of the consumers they would be
feeling the satisfaction of the taste that would fill in their stomachs.
Vision
Hug cakes envisions itself to be one of the leading companies in the food
industry and to be well-known through our brand here in the Philippines by
serving the best yet simple and delicious pancakes.
Mission
Benycid Company’s mission is to inspire and spread moments of love,
comfort and happiness and lastly, to create value and make a difference by
creating and promoting our unique batter mixture with a great taste and budget
friendly panckaes that will serve as a taste of home with every bite.
Tagline
“ A taste of home with every bite”
Product’s Logo Company’s Logo

II. Brief Profile of the Entrepreneurs
Berlynne Mae B. Bouquia
-Berlynne is the Marketing manager of the company. A kind of
entrepreneur who is perseveringly responsible (directly or indirectly) for
almost all of the corporation's marketing trends, advertising strategies, as
well as promotional activities making sure that the company will have good
and potential buyers.
Pia Jasfaith A. Dicdican
-Faith is the company’s Sales Manager. She is the kind of
entrepreneur who always plan ahead of time and is charge of maintaining
and managing the business’ specific performance metrics (marketers track
marketing and social media metrics, such as campaign and program
statistics, performance metrics such as new opportunities and leads, and
financial metrics) to access the success of the said activities and of the
company.
Pia Jashope A. Dicdican
-Hope is a kind of entrepreneur who has a lot of idea. As the Vice
President of the company, systematic planning and problem solving are
one of her competencies. She is a confident woman making wise

decisions and sticking to it contributing and innovating solutions to
problems encountered by the company.
Winjosh J. Galeon
- Winjosh is the company’s production head. He is a self-critical
entrepreneur learning from his mistakes and experiences of others. He
converts the ideas into execution bestowing his time, skills and effort
contributing to the success company.
Eunice Lois A. Sarmiento
- Eunice is the Finance Manager charged with managing the corporation's
day-to-day affairsa and almost all of the corporation's financial matters
making sure that the company will have a good profit from its starting
capital. She is the kind of entrepreneur who takes initiative in every action.
Kayezelyn Yamit
-Kaye is the Chief Executive Officer (CEO) or President. She is the
brain of the company. A kind of entrepreneur that has the ultimate
responsibility for the corporation's activities, signs off on contracts and
other legally binding action on behalf of the corporation. She is the type
of entrepreneur who is always open for suggestions and ideas and
leads the company very well. Not to mention, she is an artistic
entrepreneur who made the company’s logo.

III. Significance of the product
Hug cake aside from a wallet friendly product, it is beneficial to the people
and the economy. It provides a kind of taste that gives people a sense of
satisfaction and can take away the hunger of a person anytime anywhere. This
product can help our economy in a way of purchasing the ingredients of the
product in local stores. Because of this the store in return can be able to pay the
tax, which it can help to uplift the economy.

SECTION 1
MARKETING PLAN
This section presents the business’ document outlining the detailed
business' product, marketing strategy and tactics. This covers a whole variety of
marketing-related details, such as costs, goals, and action steps.
1. 1 Product Description
Our product is named “Hug Cakes”. It only has one filling, and that is our own
Homemade and delicious chocolate filling that is not too sweet and not too bitter
making customers want more! The product aims to be cost-efficient by serving a
cheaper and convenient way for students the students and teachers to fill up their
hunger cravings. It is named Hug Cakes it is because there are two round fluffy
pancakes that are just the exact size for eating but a less smaller than the regular
size of pancakes. One of round fluffy pancake is placed with the chocolate filling
and then hugged with the other round fluffy pancake. Our products are pack and
sold first in table napkin table tissues then placed in the small paper bags since
the founders of the company also aim for an alternative that is an eco-friendly
way of selling the product to help lessen plastic pollution to help save our
environment.
One of our income goals is to more revenue than what we spent on our
operating expenses it involves income from sales, interest on investments and
rent on business property. We need to have a poriftability goal that should be
sufficient to sustain stakeholders such as the owners or the partnership in
business that can enable our business to save money for expansion or capital
reserves.
One of the company’s responsibilities is to give back to the community
some of our profits which is what we called charity. 6% our profits will be given
back to the community through charity for the tax benefit we will receive will be
based on how much our business’ revenue would be.
1.2 Comparison with other Companies
Our company aims to put the product, Hug Cakes in business to provide
the students and the faculty a quality food that is affordable, delicious, and
can take away their hunger. This product is fresh in the canteen of Agusan
National High School SHS building and will surely give a new kind of taste
and satisfaction to all.

Competitor A Competitor B
Analysis Hug Cake
Mc Donalds Jollibee
-Affordable price -Most well-known -Has grown
-With chocolate house-hold brand exponentially on all
fillings -Market leader in aspects on
-Convenient fast food industry operation
-Variations -Strong and -Stronghold of
Strength -Easy process to marketable product heritage and
change product or -Adaptation of its monument of
packaging product Filipino victory
-Consistent quality -Drive-in -Superior menu
of product line-up
-Always available
-No reputation yet -Dividend growth -Fast food can
-Limited manpower rate has been cause obesity
-Limited time slowing -The existence of
Weakness -Often related to other competitors
unhealthy food
-Price competition
-Competitors are -Penetrate in many -Employees receive

active in other countries extensive training
markets -Menu innovations -Menu innovations
-Ability to access -Cope with the fast
Opportunities cultural marketing changing consumer
through staff-Ability needs
to access cultural -Cope with the fast
marketing through changing consumer
staff needs
-Changing -Competition from - Governments are
customer taste and strong peers considering
preferences -Governments are regulations
Threats -A lot of activity in considering targeting fast food
the market regulations chains
-Direct competitors targeting fast food -Existence of other
in the future chains competitors
Table 1. SWOT Analysis
1.3 Location
The location of the company is in the Agusan National High School, A.D.
Curato St, Butuan City.
1.4 Market Area
The product will be sold both in Junior and Senior High School
Department of Agusan National High School. As such the market area will
consist of the people within the locale of the market area.
1.5 Main Customers
The target customers for this product are the students, teachers, track
heads, and faculty of Agusan National High School from Junior and Senior High
School Department of all ages. Specifically, the primary target market is the
students. The secondary target market consists of the teachers and the school
personnel of ANHS.
1.6 Total Demand
Through the survey conducted by the entrepreneurs after the free tasting
of their delicious products, the entrepreneurs found out that that they met the
customer expectations and requirements. With its affordable price, quality
ingredients, great taste, convenience and accessibility, they will sell 50-100 hug
cakes per day.

1.7 Market Share
Out of the total population of the Agusan National High School Junior and
Senior High Department which includes the teachers and staff, the entrepreneurs
expected that the interest will reach at least 80% of the entire population.
1.8 Selling Price
The selling price of the product is 5 pesos each since it can be affordable
and convenient to everyone.
1.9 Sales forecast
The entrepreneurs value the demands of the customers so as long as the
Hug Cakes are in demand and the customers want more, production of the
product
will be pushed through. The estimated numbers of Hug Cakes to be sold are 100
per day.
1.10 Promotional Method
To promote the product, the entrepreneurs provide business cards to
those who want to buy more or requests for orders of the product; a brochure
that features the products exquisite qualities; posters and flyers so the product
will be made known to everyone and an advertisement video, reaching out
through social media promotion especially on our social pages.

1.11 Marketing Strategy
The 7 Ps are a set of recognized marketing tactics, which the entrepreneurs
will use in any combination to satisfy customers in our target market.
1. Product
The products to be sold to the customers are Hug Cakes. It is made with two
pancakes hugging each other with a homemade chocolate filling inside. The
product aims to be cost and efficient by serving each of it for a very affordable
price to fill up the hunger of the students, teachers, school heads and any
pancake lovers. The pancakes are made with love that results to its fluffiness
while the chocolate filling balances the fluffiness of the pancake for it gives a not
too sweet and heavenly taste.
2. Price
Hug cakes follows a comprehensive pricing strategy that is based on the
perceived value of its products. The entrepreneurs considered the following
objectives for pricing of the product:
 To maximize long run profit
 To increase Sales Volume
 To increase market share
 To set the benchmark for the whole market
 To obtain a set target of return on investment (ROI)

 To obtain a set target of return on sale (ROS)
 To control the price fluctuation in open market
 To obtain customer satisfaction through set price this is 5 pesos.
Since a lot of cafes and even fast food chains like McDonalds serve as one of
our competitors, Huggy Cakes ensures its pricing is within customers reach.
Overall, Huggy Cakes' pricing is closely aligned with its goals and objectives
ensuring their customers’ benefits.
3. Promotion
The Benycid Company will employ a number of professionals in marketing
and advertising strategies. The company will promote its product using numerous
way of connecting to people to spread product information ensuring brand
awareness, to explain the purpose of product, to achieve the attraction of target
market, to ensure product availability and most especially to satisfy customers’
needs. One great example of advertising it is through social media pages or
social media ensuring the effective spread of message of our product and for it to
be known. Also, the entrepreneurs considered and will use some of the
traditional ways of promoting Hug Cakes such as giving and pasting of posters,
flyers, business cards, billboards or even TV advertisement.

4. Place
Benycid Company is suited to follow the FMCG (fast moving consumer
goods) distribution pattern which will allow the brand to penetrate all relevant
player in the market. But the main place where the Hug Cakes will be is near the
Agusan Nation High School which is located at the J.C. Aquino Street. Aside
from that, the company assures to closely interact with consumers in food parks,
other close to school located places, and malls.
5. People
This is a vitally element of the service marketing mix. The company staffs
locally and also promotes from within. This allows the team to manage the
operations to understand local cultures as well as the corporate philosophy. The
people in the business would be the employees and management who ensures
to give the best of their capabilities to give good and quality services. And lastly,
the customers of both Junior and Senior High School Department of Agusan
National High School who will be buying and receiving the goods and services
6. Process
The food specifications for weight, size, taste and content are the same
everywhere. All workers and retailers need to meet the specifications. The
product is processed and made in the company’s kitchen or small factory.
Kitchen layouts are all the same. To bridge the gap of language differences, the
menu display,
brochures, flyers and etc. contains images that help create similarities
everywhere. Part of the process, there will be a monthly and weekly
management check of machines, equipments, sales, and products to check the
financial status and address the problems found to be solved immediately.
7. Physical Evidence
Locations are similarly created with a family friendly environment. There is an
area for children, and service is always provided with a smile comfort. The
menus including the flyers, brochures to be given will be structured simply with
the pancakes. Also, the Hug Cakes to be served are ensured to be clean, good
and neatly packaged giving the customers satisfaction, wants and needs.
1.12 Marketing Budget

MARKETING ACTIVITIES BUDGET
Market Survey Php. 50.00
Food testing Php. 600.00
Advertisement Php. 660.00
Poster Php. 200.00
Business Card Php. 100.00
Flyers and Brochures Php. 200.00
Social Media Promotion Php. 450.00
TOTAL: Php. 2260.00
Table 2. Marketing Budget
The marketing Budget is well planned, organized and budgeted by the
company’s CFO- Berlynne Bouquia and her staff and approved by the CEO and
board members ensuring that they can communicate effectively with the listed
activities above to surely spread the message of our product which is to
inspire and spread moments of love, comfort and happiness and lastly, To create
value and make a difference. Apart from it, the CFO and her staff also monitors
the business’ specific performance metrics (marketers track marketing and social
media metrics, such as campaign and program statistics, performance metrics
such as new opportunities and leads, and financial metrics) to access the
success of the said activities and of the company.

SECTION 2
PRODUCTION PLAN
Production plan involves production planning which is the administrative
process that take place within a manufacturing business and which involves
making sure that sufficient raw materials, staff and other necessary items are
procured and ready to create finished products according to the schedule
specified. A typical large manufacturing business engaging in production
planning will aim to maximize profitability while maintaining a satisfied customer
base.
2.1 Production Process
The production process is a component appearing under production plan
of the overall business plan. The production process is the process a product or
service takes in order for it to become ready for customers to buy.
The process of making the hug cakes is very easy and simple; the only
needed equipment for making the product can be found in the kitchen such as
measuring cups for the exact and right amount or proportion of ingredients,
containers and other equipment usually found in kitchen.
Ingredients:
 All-Purpose Flour
 Eggs
 Salt
 Baking Powder
 Oil
 Butter
 White Sugar
 Vanilla Extract
 Milk
 Cocoa Powder
 Condensed milk
Procedure:
 In making the pancakes
1. Prepare all the ingredients to make the pancakes.
2. In a bowl, mix together the all-purpose flour, sugar, baking powder and the
salt and white sugar. Set aside the mix ingredients. Then separate the
egg whites carefully, add the egg yolks in the mix ingredients and whisk it
together with the milk.
3. Whisk the egg whites until you get that sticky-ish result, then mix it up
together with the mixed ingredients.
4. Preheat pan to medium heat. Grease pans, then pour the mixed pancakes
ingredients according to the desired pancakes size.
5. Repeat process.
 In making the chocolate filling
1. Blend cocoa and butter. Place the cocoa powder and softened butter in a
bowl and add 1 tablespoon of vanilla extract. Stir until blended and mix
until it becomes a paste.
2. Transfer the chocolate mixture into a bowl (or top of a double boiler).
3. Fill saucepan or double boiler about 1/4 full with water (1 cup). Place the
chocolate mixture on top of the saucepan or double boiler, and bring the
water to just simmering, over low heat.
4. Heat until hot, stirring frequently. Regularly scrape the chocolate off the
sides with a rubber spatula, to prevent scorching. When the paste is hot
(but not cooked), Put it back in the processor and mix till smooth.
5. Blend in 1 cup Condensed milk ¼ cup sugar. Stir the paste, and add milk
and sugar gradually. Mix well until the paste is smooth and creamy. Taste,
and adjust with more sugar if necessary, and salt as needed.
6. Pour in mold or ice cube tray. Put it in the fridge until the chocolates have
set.
7. Take them out, and dust with powdered sugar. Enjoy!

The Benycid Company also considered the 4M’s to be able to guide them in
making the business successful by managing, monitoring ,advertising, and
promoting the product.
Manage
Finding out which strategies, language, and styles encourage the
customer along the path. In line with managing, the company decided to
continuously give posters, flyers, brochures, and business cards to make sure
the product can really be known and can be advertised to other people especially
in social media pages. Another strategy of the company is to give discounts most
especially to their valid and regular customers and deliver orders to other stores
to sell a lot of their product each day. By this, regular management check will be
done to make sure whether there is a problem that needs to be addressed
immediately.
Make
To connect with brand influencers and potential customers, the
entrepreneurs decided to make and proved creative, colorful, and attractive
posters, flyers, brochures , calling cards, advertisement (TV, radio) to make sure
their brand is known to advocate its message which is to inspire and spread
moments of love, comfort and happiness creating a value and making a
difference.
Measure
After conducting the free tasting of the product, the company found out
that there are some improvements or things to be addressed immediately. The
company measured and weighted the things that matter to make the product be
not off market ads it meets the requirements and needs of customers.
Monitor
In monitoring the business, the entrepreneurs will check the financial and
business performances regularly from the sales to the customers demand and
the workers performance. The entrepreneurs will also check the relationships
between the customers’ environment and strategies to perform in order to sustain
good service quality. The entrepreneurs will also be monitoring the campaigns
through social media and feedbacks from the customer. There will also be
evaluation forms to be given to the customers to know if there are still
improvements the company should look into.

2.2 Fixed Capital
Fixed capital is clearly referred to as the physical capital or a real capital
which is not consumed or invested in the production of any real product. The
fixed capital is the one which is kept fixed and is not used in exercising the
expanses.
In the production of the hug cakes, the only needed equipment or
machineries are blender and stove which we already have. The other equipment
and cost to be used in the operational process are the following:
Items Amount
Parchment Paper Php 35.00/pack
Toothpicks Php 17.00/box
TOTAL Php 52.00
Table 3. Costs of Equipment
2.3 Life of Fixed Capital
Life of fixed capital refers to the duration or how long would be the fixed
capital or fixed assets would last.
As for this particular business; with proper and careful handling, the lifespan of
the fixed assets would last about a year or two.
2.4 Maintenance and Repairs
Maintenance is routine activities meant to prevent damage and prolong
the life of appliances, fixtures, equipment and machines used in the production of
the
product in a business. On the other hand, repairs are restoration work for when
something gets broken, damaged or stops working. This part of the production
plan tackles about how the fixed assets would be taken care.
The maintenance will be done through proper cleaning process using
lukewarm water, detergent and clean cloth. The fixed assets will be cleaned
using
detergent, after that, the fixed assets will be then transferred into a container with
lukewarm water and lastly, the fixed assets would be then wiped clean and dry
with a clean cloth. The fixed assets are attainable and always available in the
local stores found in the vicinity of Butuan City.
2.5 Source of Equipment
This component of the business plan tackles about how will the equipment
to be used in the production of hug cakes can be found and purchased. As for
the equipment needed for the production of hug cakes, the equipment is very
accessible and can be bought in a single local supermarket or malls, at any
occasions, any time.
2.6 Planned Capacity
Planned capacity involves the process of capacity planning which could be
referred to as the process of determining the production capacity needed by an
organization to meet changing demands for its products. Its goal is to maintain a
flow in resource usage.

In making the Hug Cakes, the planned capacity that can be made very
month would be around 2500 - 3200 pieces that can earn up to Php 12, 500 to
Php 16, 000. And for the labor, the owners can make 3200 pieces of Hug Cakes
per month.
Figure 1. Planned Capacity
The Photo Attached Indicates the short-term shop stationed in T. Sanchez St.
Butuan City.
2.7 Future Capacity
Any business organization that is planning to optimize their existing space
must take into consideration future growth plans of the business. Many business
organizations with extra space find they have the ability to lease out newly freed
up floors, one of the biggest drivers of ROI and cost saving. However, if this is
not planned in sync for the future growth, released space may be tied up with a
long-term sub lessee creating collocation problems when new space is needed.
Therefore, planning for the future capacity accurately is very crucial and relevant
for the business. The future capacity of the stall will be discussed in this certain
part of the business plan.
The future capacity that Php 5, 000 to Php 10, 000 is looking forward in selling
their product may increase in double to triple capacity limit. The production of the
Hug Cakes will be doubled which means that the capacity would be 6400 pieces
per month to be made. There will be additional 2 workers to assist the owners in
making the hug cakes. And also, a multiple penetration strategy in selling the
product will be utilized.
Figure 2. Future Capacity

The Photo Attached Indicates the long-term shop stationed in T. Sanchez St.
Butuan City.
2.8 Terms and Conditions of Purchase Equipment
In this part of the business plan, the terms and conditions will be
discussed particularly in purchasing the equipment to be used in the production
of the product for the proposed business.

The Hug Cakes Stalls fixed assets or the materials that will be used in the
operation process of manufacturing the product will be purchased or bought
through direct cash.
2.9 Factory Location and Layout
Factory location refers to the choice of region and the selection of a
particular site for setting up a business factory but the choice is made only after
considering cost and benefits of different alternative sites. On the other hand,
layout refers the arrangement of physical facilities such as machinery,
equipment, furniture and etc. within the factory building. There will be two short-
term stalls, one located near Butuan Central Elementary School and one in
Agusan National High School.
The location of the Hug Cakes Stalls will be located near the Butuan
Central Elementary School and Agusan National High School at A.D. Curato
Street, Butuan City, Philippines.

Figure 3. Planned Capacity
The Photo Attached Indicates the short-term stall located in Butuan Central
Elementary School.
2.10 Raw Materials
Raw material is a basic substance in its natural, modified, or semi-
processed state, used as an input to a production process for subsequent
modification or transformation into a finished goods.
Date Item Brand Quantity Unit Price Amount

All Purpose
9-03-19 Repacked 1 kilogram ₱37.60 ₱37.60
Flour
Baking
9-03-19 Repacked 1 pack ₱20.00 ₱20.00
Powder
9-03-19 Eggs Repacked 1 dozen ₱5.08 ₱69.60
9-03-19 Salt Fidel Iodized 10 grams ₱10.15 ₱10.15
9-03-19 Oil Palm Olien ¼ kilograms ₱10.50 ₱10.59
9-03-19 Butter Dari Creme 200 grams ₱52.45 ₱52.45
White
9-03-19 Repacked ½ kilograms ₱15.00 ₱15.00
Sugar
Vanilla
9-03-19 Repacked 1 pack ₱5.00 ₱5.00
Extract
Alaska
9-03-19 Milk 1 can ₱26.10 ₱26.10
Evaporada
Cocoa
9-03-19 Rich Bakers 1 kilogram ₱100.00 ₱100.00
Powder
Table 4. List of Raw Materials, Cost of Raw Materials
The Hug cake stalls have a total of 10 raw materials needed for the
production of the 400 pcs of Hug Cakes. Five (5) of these raw materials are
used to make the pancake batter and the remaining five (5) for the chocolate
filling.
2.11 Cost of Raw Materials and Availability of Raw Materials
The company bought the raw materials at Langihan Market. This market is
known to be selling good quality of products in a price that is affordable to all.
(See table 4)
2.12 Labor
The company will need 4 labours in order to make the product. One (1)
labour will be in charge in preparing the pancake mix and one (1) for cooking it
afterwards, another one (1) for making the chocolate fillings and another one (1)
labour for the packaging of the product. These 4 workers are paid in a minimum
of wage of Php 100.00 per day and are given quarterly incentives depending on
the sale.
2.13 Cost of Labor
Quantity Worker No. of Hours Weekly

Mixer of
1 10 ₱350.00
Ingredients
1 Cook 10 ₱350.00
1 Repacker 10 ₱350.00
1 Packer 10 ₱350.00
Table 5. Cost of Labor
As the company chooses direct man labor that depends on the work as
shown above, The Company based their weekly minimum wage by the board
which is Php. 350.00. The workers are required to work during regular days and
will have rest days during holidays. If they decided to take on leaves,
they should follow the right process of incentive leaves by the company. The
allotted time during the working hours is 10 hours per day following the specified
working hours which is from 7 am-5pm.
2.15 Labour Availability
The company will hire 4 efficient, experienced in the field of cooking, and
full-time labours to work for the business.

2.16 Labour Productivity
The labours will be monitored according to their performance and output in
terms of productivity in making the product will also be evaluated.
2.17 Factory Overhead Expenses
The company produced a total of 100 Hug Cakes and to produce the total
production of 100 Hug Cakes, the company incurred the cost of
Item Brand Quantity Unit Price

All-Purpose Flour Repacked 1 kilogram Php 37.00
Baking Powder Repacked 1 kilogram Php 20.00
Eggs 1 dozen Php 69.60
Salt Fidel Iodized Salt 10 grams Php 10.15
Oil Palm Olien ¼ kilograms Php 10.50
White Sugar Repacked ½ kilograms Php 15.00
TOTAL Php 162.85
Table 6. Total Amount of Ingredients for pancake batter
Item Brand Quantity Unit Price

Butter Dari Crème 200 grams Php 52.45
White sugar Repacked ½ kilograms Php 15.00
Vanilla Extract Repacked 1 pack Php 5.00
Alaska
Evaporated milk 1 can Php 28.10
Evaporada
Rich Bakers
Cocoa Powder 1 kilogram Php 100.00
Cocoa Powder
TOTAL Php 198.55
Table 7. Total Amount of Ingredients for Chocolate Filling
Operational Expenses
Item/Description Amount
Parchment Paper Php 35.00/pack
Table napkin (tissue papers) Php 10.00/pack
Toothpicks Php 17.00/box
Transportation Php 60.00
Electricity Php 30.00
TOTAL Php 188.00
Table 8. Total Amount of Items for Operational Expenses
Total product costs:
Php162.00 (for pancake batter) + Php226.55 (chocolate filling) +
Php188.00 (operational expenses) = Php 576.55 total product cost. Therefore,
the company incurred the total product costs of Php. 576.55 to produce 100 hug
cakes.
Cost per product:
= Cost or Raw materials / no. of products made
= Php. 361.40 / 100 = Php. 3. 61 each
Opex:
= Opex / no. of products made
= Php. 188.00 / 100
=Php. 1.88 each

Total Price:
= Cpp + Opex
= Php. 3.61 each + Php. 1.88 each
= Php. 5.49
Total Cost of Production
TcP = (Cost of Product + Operating Expenses) / No. of goods produced
TcP = (Php. 361.40 + Php.188.00) / 100 = Php. 5.49
Selling Price
Selling Price = Total Price + (Total Price x Mark up)
Selling Price = Php. 5.49 + (Php. 5.49x 0.1) = Php. 6. 00
Opex:
= Opex / no. of products made
= Php. 188.00 / 100
=Php. 1.88 each
Total Price:
= Cpp + Opex
= Php. 3.61 each + Php. 1.88 each

= Php. 5.49
Total Cost of Production
TcP = (Cost of Product + Operating Expenses) / No. of goods produced
TcP = (Php. 361.40 + Php.188.00) / 100 = Php. 5.49
Selling Price
Selling Price = Total Price + (Total Price x Mark up)
Selling Price = Php. 5.49 + (Php. 5.49x 0.1) = Php. 6. 00

SECTION 3
ORGANIZATION AND MANAGEMENT PLAN
The organization and management plan is of great importance to any
business. It provides guidance by establishing formal reporting relationships
within the business so that each aspect of operation is taken account for and
handled by an individual with the appropriate skill set. Managing the business
and ensuring that each department is equipped with enough resources is also
essential.
3.1 Forms of Business
Hug cakes is established through a formal arrangement or partnership
between 6 individuals cooperating to manage this business. All partners involved
in this form of business share liabilities and profits equally, although not every
partner is necessarily involved in the management and day-to-day operations of
the venture. The partners are involved in general partnership where everyone
agree to share in all assets, profits and financial and legal liabilities of the Hug
cakes business. The partners have unlimited liability, which means that the
partners’ personal assets are liable to the partnership's obligations. In fact, any
partner can be sued for the entirety of a partnership's business debts.

3.2 Organizational Structure
KAYEZELYN YAMIT
PRESIDENT
PIA JASHOPE A. DICDICAN

VICE PRESIDENT
WINJOSH J. GALEON EUNICE LOIS A. PIA JASFAITH A. DICDICAN

PRODUCTION MANAGER SARMIENTO SALES MANAGER
FINANCE MANAGER
BERLYNNE MAE B. BOUQUIA

MARKETING MANAGER
3.3 Business experience and Qualifications of the Entrepreneurs
A. Role of Members
I. Executive Department
 President- Kayezelyn Yamit is the most respected head of the business
that is responsible for providing strategic leadership for the company by
working with the Board and other management to establish long-range
goals, strategies, plans and policies.
 Vice President- Pia Jashope A. Dicdican is the one next in line who helps
the president by also being responsible for making sure that things are
executed in the day-to-day operations of the company.
II. Production Department
 Production Manager- Winjosh J. Galeon is trusted to ensure that
manufacturing processes run reliably and efficiently. Planning, organising
production schedules, assessing project and resource requirements, re-
negotiating timescales or schedules as necessary, selecting, ordering and
purchasing materials (raw and not raw) are the things he also is charged
to do.
III. Sales Department
 Sales Manager- Pia Jasfaith A. Dicdican is tasked maintain sales volume,

product mix and selling price by keeping current with supply and demand,
changing trends, economic indicators and competitors. She also ensures
targets are delivered through people management, performance review,
reward and individual recognition and lastly, assess the strengths and
weaknesses of the sales team and manage the sales program accordingly.
IV. Marketing Department
 Marketing Manager- Berlynne Mae B. Bouquia is responsible for
developing, implementing, and overseeing all marketing and advertising
strategies, as well as promotional activities. She also heads the
analyzation demographics to delimit target markets for new products,
brands, or services and make sures keeping up-to-date with marketing
trends and requirements to ensure their marketing strategies comply with
the latest practices and standards.
V. Finance Department
 Finance Manager- Eunice Lois A. Sarmiento assists executives in making
decisions that affect the organization, a task for which they need analytical
ability and excellent communication skills. She is held are responsible for the
financial health of an organization that produces financial reports, direct
investment activities, and develop strategies and plans for the long-term
financial goals of the company.

B. Management and Organization
DEPARTMENT FUNCTION
Executive Department is the

over-all head and brain of the company.
The deparment oversee all aspects of
Executive Department the business. Establishing Policies,
Directing Financial Goals, Hiring and
Managing Staff and Initiating and
overseeing major projects are just some
of their duties and responsibilities.
Production Department handles
the planning, organizing, directing and
Production Department controlling of production activities. They
ensure that the products are
successfully made from raw materials
and are well packaged.
Sales Department is believed to be
the key to the crucial success of the
Sales Department company. They are responsible for
making the business known and grow,
retaining customers, and most especially
making sales.
Marketing Department holds the
key to good marketing and sales. The
department holds responsible
Marketing Department for promoting the products, ideas and
mission of the enterprise, finding new
customers, and organizes all the
activities that are concerned with
marketing and promotion.
Finance Department ensures to
produce the company’s financial
statements. The department handles the
Finance Department planning, organizing, auditing,
accounting, and controlling the
company’s finances. The department
also makes sure that company’s
money is managed well.
Table 9. Management and Organization
3.4 Pre-operating Activities
The Benycid Company started by a group of 6 members with one mission
and vision that is to create a product that will spread and share happiness and
the taste of comfort once eaten.
The members and entrepreneurs of the Benycid Company decided to start
the business by researching and brainstorming to choose a product that is new,
unique and delicious and will be a hit in the business industry. After the company
has come up with a possible product the members of the company decided to
conduct a survey to know whether the planned product will be accepted by the
target market. The company then conducted a free tasting activity to determine
what kind of qualities of the product that the costumers want and the company
was open to the suggestions and further comments of the people who were able
to taste the product. All of these activities helped and served as a guide to
finalize what qualities of the product that will really make the costumer buy it and
where company made adjustments to finally come up with the product hug
cakes.
In order for the Benycid Company to establish a long term business in the
country it first needs to register to the Securities of Exchange Commission
(SEC). Where after, the company needs to go to Local Government Unit (LGU) in
order for it to register the company to Agusan National High School SHS
Department Butuan City where the company will operate the business. The
company also
needs to register to Bureau of Internal Revenue (BIR) in order to get their
business’
taxpayer identification number, registration of book accounts and authority to
print. After all these processes the company will then become a big business
firm and then needs to register to the Department of Labour (DOLE) and Social
Security System (SSS). The Benycid Company also needs certificate from the
Bureau of Food and Drugs and Department of Health to certify that the business
is legal and safe to costumers.
3.5 Pre-operating Expenses
Description Materials Cost

Preliminary Survey Papers, Photocopy, etc. Php 50.00
Food Tasting Raw Materials, tools and
Php 350.00
equipment
TOTAL Php 400.00
Table 10. Total Amount of Pre-Operating Expenses
3.6. Equipment and Facilities (Machineries)
A. Executive Department
Figure 4. Executive Department Equipment and Facilities
Machineries needed:
1. Multi-function Printer 6. Clocks
2. Computers 7. Shredder
3. Lights 8. Air conditioner
4. Telephones 9. Backup Drive
5. Internet Connection 10. Lampshade
B. Production Department
Figure 5. Production Department and Facilities

Machineries needed:
1. Computer 5. Multi-functionPrinter
2. Telephone 6. Internet Connection
3. Air conditioner 7. Calculators
4. Lights 8. Clocks
C. Sales Department
Figure 6. Sales Department Equipment and Facilities
Machineries needed:
1. Computers 5. Internet Connection
2. Calculators 6. Projector
3. Multi-function Printer 7. Table Lights
8. Air Conditioner 8. Clocks

D. Marketing Department
Figure 7. Marketing Department Equipment and Facilities
Machineries needed:
1. Computers 5. Calculators
2. Multi-function Printer 6. Internet Connection
3. Clocks 7. Projectors
4. Table Lights 8. Air conditioner

E. Finance Department
Figure 8. Finance Department Equipment and Facilities
Machineries needed:
1. Calculators 5. Computer
2. Telephone 6. Internet Connection
3. Air conditioner 7. Multifunctional Printer
4. Clocks 8. Projector
3.7 Administrative Expenses
QTY DESCIRPTION UNIT COST COST
5 Epson L120 Ink Tank System

Printer 4,990.00 24,950.00
10 HP COMPAQ 6200 SFF PENTIUM

G620 2.6GHZ 4GB/250GB 23inch
WIDE LED monitor With ACC
79,990.00
[Office PC, Student PC, Office 7,990.00
Package
5 Samsung Split Air Conditioner
100,00.00
20,000
1 D-Link Wireless NAdsl2+ Router
5,634.18
5,634.18
10 Led Adjustable Desk Lamp 320.00 3,200.00
5 Panasonic KX-TS840MX
Integrated Telephone System 1,999.00
9,995.00
5 Rikon Brown Wall Clock

500.00 2,500.00
10 Casio MJ-120GST GST Calculator 494.00 4,940.00
3 nic UC36 Mini LCD Home Theater
3,049.00
Video Projector 9,147.00
TOTAL: Php 240,356.18
Table 11. List of Administrative Expenses
SECTION 4
FINANCIAL PLAN
This section shows the comprehensive evaluation of the current pay and
future financial state by using current variables to predict future income, assets,
values and withdrawal plans.
4.1 PROJECT COST
The total contribution of each member is ₱100.00. The project capital
is ₱600.00 for this month of September.
Summary of Sales, Transactions and Expenditures
In the Month of September
Item Brand Quantity Unit Price Amount

All Purpose
Repacked 1 kilogram ₱37.60 ₱37.60
Flour
Baking
Repacked 1 pack ₱20.00 ₱20.00
Powder
Eggs Repacked 1 dozen ₱5.08 ₱69.60
Salt Fidel Iodized 10 grams ₱10.15 ₱10.15
Oil Palm Olien ¼ kilograms ₱10.50 ₱10.59
Butter Dari Creme 200 grams ₱52.45 ₱52.45
White Sugar Repacked ½ kilograms ₱15.00 ₱15.00
Vanilla Extract Repacked 1 pack ₱5.00 ₱5.00
Alaska
Milk 1 can ₱26.10 ₱26.10
Evaporada
Cocoa Powder Rich Bakers 1 kilogram ₱100.00 ₱100.00
Table 12. Total Summary of Sales, Transactions and Expenditures (Month of
September)
Day 1- September 23, 2019
No. of goods produced: 100 pcs.

No. of goods sold: 100 pcs.
No. of goods unsold: -
Cost of Raw Materials: ₱139.16
Cost of Product: ₱ 2.5
Cost of Production: 251.21
Total Operating Expenses: ₱112.05
Percentage Mark-Up: ₱2.5
Selling Price: ₱5.00
Total Sales: ₱500.00
Total Profit: ₱248.79
A. COST OF RAW MATERIALS
Quantity Description Unit Price (Php) Amount (Php)

2 cups All-purpose flour 5.37 10.74
2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
3 tablespoons Baking powder 2.00 6.00
1 pinch Salt 1.00 1.00
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ½ cup 26.10 65.25
Milk
1 teaspoon Vanilla Extract 1.00 1.00
TOTAL: 139.16
Table 13. Raw Materials Expenses
B. OPERATING EXPENSES

1 can Butane 35.00 35.00
100 pcs. Packaging 17.05 17.05
Transportation 60.00 60.00
TOTAL: 112.05
Table 14. Operating Expenses Cost
C. TOTAL COST PER PRODUCT
TCP= RMT+Opex = 139.16 + 112.05 / 100 = ₱2.5
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.5 + 2.5 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.5 = ₱2.5



2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ½ cup 26.10 65.25
Milk
TOTAL: 139.16

1 can Butane 35.00 35.00
TOTAL: 112.05
TCP= RMT+Opex = 139.16 + 112.05 / 100 = ₱2.5
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.5 + 2.5 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.5 = ₱2.5



2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ½ cup 26.10 65.25
Milk
TOTAL: 139.16

1 can Butane 35.00 35.00
TOTAL: 112.05
TCP= RMT+Opex = 139.16 + 112.05 / 100 = ₱2.5
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.5 + 2.5 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.5 = ₱2.5
Summary of Sales, Transactions and Expenditures
In the Month of October
Item Brand Quantity Unit Price Amount

All Purpose
Repacked 1 kilogram ₱37.60 ₱37.60
Flour
Baking
Repacked 1 pack ₱20.00 ₱20.00
Powder
Eggs Repacked 1 dozen ₱5.08 ₱69.60
Salt Fidel Iodized 10 grams ₱10.15 ₱10.15
Oil Palm Olien ¼ kilograms ₱10.50 ₱10.59
Butter Dari Creme 200 grams ₱52.45 ₱52.45
White Sugar Repacked ½ kilograms ₱15.00 ₱15.00
Vanilla Extract Repacked 1 pack ₱5.00 ₱5.00
Alaska
Milk 1 can ₱26.10 ₱26.10
Evaporada
Cocoa Powder Rich Bakers 1 kilogram ₱100.00 ₱100.00
Table 19. Total Summary of Sales, Transactions and Expenditures (Month of
October)
Day 1- October 01, 2019


2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ½ cup 26.10 65.25
Milk
TOTAL: 139.16

1 can Butane 35.00 35.00
TOTAL: 112.05
TCP= RMT+Opex = 139.16 + 112.05 / 100 = ₱2.5
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.5 + 2.5 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.5 = ₱2.5



2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ½ cup 26.10 65.25
Milk
TOTAL: 139.16

1 can Butane 35.00 35.00
TOTAL: 112.05
TCP= RMT+Opex = 139.16 + 112.05 / 100 = ₱2.5
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.5 + 2.5 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.5 = ₱2.5


Cost of Production: ₱269.36

2 ½ cups All-purpose flour 5.37 13.43
2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
3 tablespoon Baking powder 2.00 6.00
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ¾ cup 26.10 78.25
Milk
1 ½ teaspoon Vanilla Extract 1.00 1.50
TOTAL 154.86

1 can Butane 35.00 35.00
TOTAL 114.05
Table 25.Operating Expenses Cost
TCP= RMT+Opex = 154.86 + 114.05 / 125 = ₱2.15
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.15 + 2.85 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.15 = ₱2.85



2 pcs. Eggs 5.80 11.06
1 cup Sugar 8.57 8.57
Rich Cocoa
1 cup 35.00 35.00
Powder
Angel Evaporada
2 ½ cup 26.10 65.25
Milk
TOTAL: 139.16

1 can Butane 35.00 35.00
TOTAL: 112.05
TCP= RMT+Opex = 139.16 + 112.05 / 100 = ₱2.5
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.5 + 2.5 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.5 = ₱2.5


Cost of Production: ₱ 324.28

3 pcs. Eggs 5.80 17.45
1 ½ cup Sugar 8.57 12.85
4 tablespoon Baking powder 2.00 8.00
Rich Cocoa
1 ½ cup 35.00 52.50
Powder
Angel Evaporada
3 cup 26.10 91.35
Milk
TOTAL 203.26

1 can Butane 35.00 35.00
TOTAL 121.02
TCP= RMT+Opex = 203.26 + 121.02/ 150= ₱2.16
#GP
D. SELLING PRICE
SP= TCP + Mup = 2.16 + 2.84 = ₱5
E. PROFIT
P= SP – TCP
= 5.00 – 2.16 = ₱2.85

4.2 INCOME STATEMENT
BENYCID Company
INCOME STATEMENT
In the September of 2019
HUG CAKES
Sales 1,500.00
Cost of Goods sold 753.63
Gross Profit before tax 746.37
Less:
Incidental Expenses 125.00
MarketingExpenses (Brochure) 7.00
Taxdue 45.00
Net Profit after tax ₱569.37
For the month of September 30, 2019, the company has gained the
sales of ₱1,500.00. This was deducted by the total cost of goods sold which is
₱753.63. Since the month of the September is the start of selling goods
additional expenses were added up and these are the Incidental Expenses
which is equal to ₱125.00, Marketing Expenses (Brochure) that costs ₱7.00
and ₱45.00. These additional expenses were deducted to the Gross Profit
thus, the net profit of the company for this amount of time is ₱569.37.
BENYCID Company
INCOME STATEMENT
In the October of 2019
HUG CAKES
Sales 2,875.00
Cost of Goods sold 1,347.27
Gross Profit before tax 1,527.73
Less:
Tax due 86.25
Net Profit after tax ₱1,441.48
For the month of October 7, 2019, the company has gained the sales
of ₱2,875.00. This was deducted by the total cost of goods sold which is
₱1,347.27. ₱86.25 was deducted from the total Gross Profit thus, the net
profit of the company for this amount of time is ₱1,441.48.

4.3 CASH FLOW STATEMENT
BENYCID Company
CASHFLOW STATEMENT
For the month ended September 30, 2019
HUG CAKES
Cash Flow from Operating Activities
Net Profit ₱569.37
Net cash from Operating Activities ₱569.37
Cash Flow from Investing Activities -
Cash Flow from Financing Activities
Capital ₱600.00
Net cash from Financing Activities ₱600.00
Cash of the Beginning Period -
Cash of the Ending Period ₱1,169.37
Table 30. Cash Flow Statement for the month of September
The table above shows the inflow and outflow of cash of Benycid
Company for the month of September. The company has net cash from
operating activities which is equal to ₱569.37, a total of ₱600.00 net cash from
financing activities and when these are added up, the company has a total of
₱1,169.37 cash for the ending period.
BENYCID Company
CASHFLOW STATEMENT
For the month ended October 7, 2019
HUG CAKES
Cash Flow from Operating Activities
Net Profit ₱1,441.48
Net cash from Operating Activities ₱1,441.48
Cash Flow from Investing Activities -
Cash Flow from Financing Activities
Capital ₱700.00
Net cash from Financing Activities ₱700.00
Cash of the Beginning Period ₱1,169.37
Cash of the Ending Period ₱3,309.85
Table 31.Cash Flow Statement for the month of October
The table above shows the inflow and outflow of cash of Benycid
Company for the month of October. The company has net cash from operating
activities which is equal to ₱1,441.48, a total of ₱700.00 net cash from financing
activities. The company has a total of ₱1,169.37 cash for the beginning period
which is the total money earned in the month of September. When added up, the
company has a total of ₱3,309.85 cash for the ending period.
4.4 BALANCE SHEET
BENYCID Company
BALANCE SHEET
For the month ended September 30, 2019
HUG CAKES
ASSET LIABILITIES
Cash ₱1,169.37 OWNERS’ EQUITY
Capital ₱600.00
Net Profit 569.37
TOTAL LIABILITIES AND
TOTAL ASSET ₱1,169.37 OWNERS’ EQUITY ₱1,169.37
Table 32. Balance Sheet for the month of September
The balance sheet shows the financial position or condition of an entity by
listing the assets, liabilities, and owners’ equity for the month of September. The
total amount of assets is equal to the total amount of liabilities and owners’ equity
which is ₱1,169.37.
BENYCID Company
BALANCE SHEET
For the month ended October 7, 2019
HUG CAKES
ASSET LIABILITIES
Cash ₱3,309.85 OWNERS’ EQUITY
Capital ₱700.00
Net Profit ₱2,610.85
TOTAL LIABILITIES AND
TOTAL ASSET ₱3,309.85 OWNERS’ EQUITY ₱3,309.85
Table 33. Balance Sheet for the month of October
The balance sheet shows the financial position or condition of an entity by
listing the assets, liabilities, and owners’ equity on the month of October. The
total amount of assets is equal to the total amount of liabilities and owners’ equity
which is ₱3,309.85.
4.5 RETURN OF INVESTMENT
𝑛𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑅𝑂𝐼 = ( ) 𝑥 100
𝑐𝑎𝑝𝑖𝑡𝑎𝑙
₱2,610.85
=( ) 𝑥 100
₱700
𝑹𝑶𝑰 = 𝟑𝟕𝟑 %
The net income of the business is ₱2,610.85 with a capital of ₱700.00. in
getting the return of investment (ROI), the net income must be divided by the
capital. The result is then multiplied by 100 thus, the ROI is 373%.
4.6 PRO- FORMA INCOME STATEMENT
BENYCID Company
PRO- FORMA INCOME STATEMENT
As of the month ended September 2019
2019 2020 2021 2022 2023 2024
Total sales ₱26,250.00 ₱28,875.00 ₱31,500.00 ₱34,125.00 ₱36,750.00 ₱39,375.00
Less: ₱12,605.40 ₱13,865.94 ₱15,126.48 ₱16,387.02 ₱17,647.56 ₱18,908.10
EXPENSES
Net Income ₱13,644.60 ₱13,865.94 ₱16,373.52 ₱17,737.98 ₱19,102.44 ₱20,466.90
Table 34. Pro-Forma Income Statement
The Pro-forma income statement shows the projected sales, expenses
and net income for a year transaction. Each month is increased by ten percent
(10%). In 2024, Benycid Company will have total sales of ₱39,375.00 and an
expense of ₱18,908.10 and a total of ₱20,466.90 net income.

ENTREPRENEUR’S PROFILE
I. Personal Information
Name: Pia Jasfaith A. Dicdican
Gender: Female
Age: 18 years old
Birth Date: June 5, 2001
Birth Place: Butuan City
Father’s Name: Mr. Prudencio L. Dicdican Jr.
Mother’s Name: Mrs. Jane A. Dicdican
II. Educational Background
Name of School S.Y.
Primary:
Father Saturnino Urios University 2006-2013
Secondary:
Junior High School
Agusan National High School 2013-2018

Senior High School
Agusan National High School 2018- present
III. Personal Information
Name: Pia Jashope A. Dicdican
Gender: Female
Age: 18 years old
IV. Educational Background
Name of School S.Y.
Primary:
Secondary:
Junior High School

Senior High School
V. Personal Information
Name: Winjosh J. Galeon
Gender: Male
Age: 18 years old
Birth Date: May 19, 2001
Father’s Name: Edwin A. Galeon
Mother’s Name: Dolynessa J. Galeon
VI. Educational Background
Name of School S.Y.
Primary:
Secondary:
Junior High School

Senior High School
VII. Personal Information
Gender: Female
Age: 18 years old
VIII. Educational Background
Name of School S.Y.
Primary:
Secondary:
Junior High School

Senior High School
IX. Personal Information
Gender: Female
Age: 18 years old
X. Educational Background
Name of School S.Y.
Primary:
Secondary:
Junior High School

Senior High School
XI. Personal Information
Gender: Female
Age: 18 years old
XII. Educational Background
Name of School S.Y.
Primary:
Secondary:
Junior High School

Senior High School

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HUG CAKE

Bouquia, Berlynne Mae B.

ROUEL T. PEREZ, Ph.D.

SECTION 1 MARKETING PLAN

SECTION 2 PRODUCTION PLAN

SECTION 3 ORGANIZATION AND MANAGEMENT PLAN

SECTION 4 FINANCIAL PLAN

their warm expression to the following:

good health and peace of mind to finish the research paper;

To Dr. Rouel T. Perez, who helped in giving advices, support and

encouragement to finish this paper;

To their classmates, Grade 12 Hawking, for their guidance and patience.

their research paper;

Lastly, the entrepreneurs would like to extend their gratitude to their

families for their wholehearted support especially in terms of financial assistance

in finishing their research paper.

We humbly dedicate this work to our ever supporting entrepreneur smiling

that we successfully finished our work.

done this project without her.

use and appreciate it.

We came up with our company name BENYCID for it represents every

are Faith and Hope Dicdican.

that can't be easily broken.

show the evidence of Hug Cakes' mesmerizing taste of the product.

Benycid Company has or is an innovative business that will provide

delicious and affordable pancakes. The form of business will be partnership,

owned and operated by Kayezelyn Yamit, Berlynne Bouquia, Eunice Sarmiento,

scheduled to to begin operations on September 23, 2019 and it will be located at

The company aims to be unique compared to any pancake house. It will

target all customers especially the students and pancake lovers.

Hug Cakes serves a product in a burger like figure pancakes in which

industry and to be well-known through our brand here in the Philippines by

serving the best yet simple and delicious pancakes.

Benycid Company’s mission is to inspire and spread moments of love,

“ A taste of home with every bite”

Product’s Logo Company’s Logo

Berlynne Mae B. Bouquia

-Berlynne is the Marketing manager of the company. A kind of

entrepreneur who is perseveringly responsible (directly or indirectly) for

almost all of the corporation's marketing trends, advertising strategies, as

and potential buyers.

Pia Jasfaith A. Dicdican

-Faith is the company’s Sales Manager. She is the kind of

entrepreneur who always plan ahead of time and is charge of maintaining

and managing the business’ specific performance metrics (marketers track

marketing and social media metrics, such as campaign and program

statistics, performance metrics such as new opportunities and leads, and

Pia Jashope A. Dicdican

-Hope is a kind of entrepreneur who has a lot of idea. As the Vice

President of the company, systematic planning and problem solving are

one of her competencies. She is a confident woman making wise

problems encountered by the company.

- Winjosh is the company’s production head. He is a self-critical

entrepreneur learning from his mistakes and experiences of others. He

contributing to the success company.

Eunice Lois A. Sarmiento

- Eunice is the Finance Manager charged with managing the corporation's

day-to-day affairsa and almost all of the corporation's financial matters

-Kaye is the Chief Executive Officer (CEO) or President. She is the

brain of the company. A kind of entrepreneur that has the ultimate

responsibility for the corporation's activities, signs off on contracts and

of entrepreneur who is always open for suggestions and ideas and

leads the company very well. Not to mention, she is an artistic