SOBRANG PINALEdocx PDF

v
“OFFERING HOUSE HELP SERVICES IN ONLINE APPLICATION; A

MARKET STUDY”
In Partial Fulfillment of the Requirement

In the course of
Management Advisory Services
By
GWEN SULA LACANILAO
MARIA REBEKA YSABEL MASANGKAY
RUFFA MAE MATIAS
LIZZETTE JOIE SENOBIO
SEPTEMBER 2019
APPROVAL SHEET

This research study entitled,
“OFFERING HOUSE HELP SERVICES IN ONLINE APPLICATION; A
MARKET STUDY”
prepared and submitted by the following researchers; GWEN SULA
LACANILAO, MARIA REBEKA YSABEL MASANGKAY, RUFFA MAE
MATIAS, LIZZETTE JOIE SENOBIO in the course of MANAGEMENT
ADVISORY SERVICES hereby recommended for approval and
acceptance.
MR. ANTONIO O. YU, CPA, DBE

Adviser
Approved
Figure 21: HR by the
& Administrative committee
Department on Oral Examination with a grade
https://cdn.fbsbx.com/v/t59.2708-21/75283705_23916811610…oh=f1ec3d4f324c06b2f3e6f6c163d3de26&oe=5DC4F996&dl=1 06/11/2019, 4G30 PM

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of ___
MR. BENJIE DE LEON MR. WILLIAM BALTAZAR, CPA, DBA

Member Member
MR. ANTONIO O. YU, CPA, DBE

Figure 24: Lounge Chairman
Accepted and approved in partial fulfillment of the requirement for the

degree of BACHELOR OF SCIENCE IN ACCOUNTANCY.
_________________________
DR. ANTONIO O. YU, CPA, DBE
Dean, CCBALTCH
TABLE OF CONTENTS
TITLE PAGE………………………………………………………………….i
APPROVAL SHEET…………………………………………………………ii
TABLE OF CONTENTS…………………………………………………….iii
ACKNOWLEDGEMENT…………………………………………………….xi
Introduction………………………………………………………………….…1
I. The Market Study
a. Business Description……………………………………….…1
b. Statement of the Problem……………………………….……2
c. Methodology……………………………………………….…..4
i. Respondents of the Study……………………………4
ii. Sampling Technique…………………………………..4
iii. Data Gathering Instrument………………………...…
4
iiii. Validation of Data Gathering
Instrument……………5
v. Data Gathering Procedure……………………………5
vi. Data
Analysis…………………………………………..6
d. Presentation, Analysis, and Interpretation of Data………..10
e. Industry Analysis……………………………………………...17
i. Existing
firms…………………………………………..18
ii. Industry
Attractiveness……………………………….21
iii. Price
Study…………………………………………….22
1. Projected Sales……………………………….23

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2. Findings ……………………………………….23
f. Conclusion …………………………………………………….24
g. Recommendation …………………………………………….25
II. The Feasibility Study …………………………………………….26
a. Business Name……………………………………………….26
b. Business Location…………………………………………….26
c. Service Description…………………………………………...26
Figure 26: Supply Room
Chapter 1: Market Feasibility………………………………………..…..27
I. Service Strategy…………………………………………………...27
a. Branding………………………………………………………..30
II. Place Strategy……………………………………………………..30
III. Pricing Strategy……………………………………………………32
a. Pricing of Main Competitors………………………………….32
IIII. Promotion Strategy………………………………………………..34
a. Advertising and Promotion……………………………………37
Chapter 2: Technical Feasibility………………………………………….37
I. Services…………………………………………………………….37
II. Project Capacity and Production Schedule………………….…42
III. Equipment and Furnitures………………………………………..43
IIII. Plant Location……………………………………………………...47
V. Plant Layout…………………………………………………….48-55
VI. Building and Facilities……………………………………………..56
VII. Supplies ……………………………………………………………57
VIII.
Utilities………………………………………………………………58
IX. Labor Requirement……………………………………………......59
Chapter 3: Organization and Management Study…………………………62
I. Form of Ownership……………………………………………….62
II. Advantages of Partnership……………………………………….62
III. Disadvantage of Partnership……………………………………..63
IIII. Officers and key personnel……………………………………….66
V. Registration and Licensing……………………………………72-75
Chapter 4: The Financial Feasibility…………………………………………76
I. Financial Assumptions…………………………………………….76
II. Project Cost………………………………………...………………78
III. Projected Financial Statements…………………………………..
a. Projected Income Statements………………………………..79
b. Projected Statement of Changes in Equity………………….82

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c. Projected Statement of Financial Position…………………..82
d. Projected Statement of Cash Flows………………………....83
IIII. Financial Analysis………………………………………………….83
a. Liquidity Ratio…………………………………………………..83
b. Profitability Ratio……………………………………………….83
V. Investment Acceptability…………………………………………..85
a. Break-even point……………………………………………….85
b. Return on Investment…………………………………….……85
c. Payback Period ……………………………………….……….86
d. Net Present Value……………………………………………..86
e. Internal Rate of Return………………………………………..86
f. Profitability Index………………………………………………87
Chapter 5: Socio – Economic Study and Environmental Impact………..88
Chapter 6: Conclusion and Recommendation…………………………….90
List of Tables
Table 1: Population of the Respondents…………………………………..11
Table 2: Frequency distribution based on Age group…………………..12
Table 3: Frequency distribution based on Gender………………………..13
Table 4: Frequency distribution based on Monthly Income……………...14
Table 5: Gross Market Acceptability Rate…………………………………15
Table 6: Quantity Demanded………………………………………………..16
Table 7: Frequency of Availability…………………………………………..16
Table 8: Years of Business………………………………………………….18
Table 9: Nature of Ownership……………………………………………….19
Table 10: Capitalization of Business………………………………………..20
Table 11: Weighted Mean of Industry Attractiveness……………………..21
Table 12: Accepted Selling Price……………………………………………22
Table 13: Sales forecast for the next five years……………………………23
Table 14: Competitors' Price…………………………………………………32
Table 15: Projected Schedule………………………………………………..39
Table 16: Projected Capacity…………………………………………………39
Table 17: Depreciation Schedule Of Equipment & Furniture……………..46
Table 18: List of Supplies for each service………………………………….57
Table 19: Total Number of Staffs and expected salary……………………60
Table 20: Total Number of Laborers and expected salary………………..60
Table 21: Total Number of Staffs………………………………………….68
Table 22: Total Number of Laborers………………………………………69
Table 23: Qualifications and Skills of Staffs and Management Team…70
Table 24: Gantt Chart……………………………………………………….71
Table 25: Liquidity Ratio…………………………………………………….83
Table 26: Profitability Ratio…………………………………………………83
Table 27: Break-even Point…………………………………………………85
Table 28: Return on Investment……………………………………………85
Table 29: Payback Period ………………………………………………….86
Table 30: Net Present Value………………………………………………..86

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Table 31: Internal Rate of Return…………………………………………..86
Table 32: Profitability Index…………………………………………………87
Table 33: Marketing Expense………………………………………………96
Table 34: Equipment………………………………………………………..96
Table 35: Furnitures and Fixtures………………………………………….97
Table 36: Payroll Schedule…………………………………………………97
Table 37: Depreciation Schedule………………………………………….98
Table 38: Lease Expenses…………………………………………………99
LIST OF FIGURES
Figure 1: Service Strategy Flow…………………………………………..29

Figure 2: Business Logo……………………………………………………30
Figure 3: Online Application……………………………………………….31
Figure 4: Sample Flyers……………………………………………………36
Figure 5: Sample Social Media Site………………………………………36
Figure 6: Office Desktop……………………………………………………40
Figure 7: Office Printer……………………………………………………..41
Figure 8: Airconditioning Unit……………………………………………..41
Figure 9: Office Chair………………………………………………………42
Figure 10: Office Workstation……………………………………………..42
Figure 11: Office Cabinet…………………………………………………..43
Figure 12: Equipment Shelf Rack…………………………………………43
Figure 13: Office Table……………………………………………………..44
Figure 14: Conference Table………………………………………………44
Figure 15: Pantry Table Set………………………………………………..44
Figure 16: Lounge Chair……………………………………………………45
Figure 17: Plant Location…………………………………………………..47
Figure 18: Plant Lay-out…………………………………………………48-55
Figure 19: Organizational Chart……………………………………………65
Figure 20: Business Permits And Licensing…………………………….71-73
Figure 21: Project Cost…………………………………………………….78
Figure 22: Source of Capital………………………………………………79
Figure 23: Projected Income Statements………………………………..79
Figure 24: Projected Statement of Changes in Equity………………….82
Figure 25: Projected Statement of Financial Position…………………..82
Figure 26: Projected Statement of Cash Flows………………………….83
APPENDIX
A. Survey Questionnaire……………………………..94
B. Financial Plan/Schedule………………………….96

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ACKNOWLEDGEMENT
The researchers would like to acknowledge the people behind the

success of this research. First and foremost, the researchers glorify God
who gave them strength to finish and present this research with
confidence.
To their families who never failed to give their full support and
understanding.
To the program chair of Accountancy and adviser, Mr. Antonio O.
Yu, CPA, DBE, for patiently giving advices and suggestions to improve the
research study and guidance all throughout the process of making
research. This is not possible without him. And also, to the panel for their
insights and inspirations.
To everyone, thank you!
97
INTRODUCTION
This research consists of two parts. First part, the market study to
determine if there is a market when the service is introduced to the
market. While the second part of this research is the feasibility study, that
determines if the project is feasible/profitable.
THE MARKET STUDY
The researchers conducted a market study to answer the following

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questions; if there is a market, if the amount quantity demanded is
substantial enough to introduce the service to the market, and lastly if the
industry is attractive to introduce the service.
BUSINESS DESCRIPTION
In this generation everything is fast-phased, thus, maintaining a
household is not an easy task especially to people working day and night.
Mr. Butler is an application created for the sole purpose of helping people
to manage and fix their house in a most time-convenient way. This
application offers services such as:
• House cleaning
• Laundry
• Carpentry
• Plumbing
• Electrical works
The application is user-friendly for easier access. The engagement can
be done by selecting the service that is needed. There will be contract
provided where the client needs to agree with to continue the
engagement. It is for the client's assurance that the butlers undergo
trainings to provide their house an absolute care and nothing but
excellence.
STATEMENT OF THE PROBLEM
General Problem:
The study will aim to investigate the Online Application offering
House Help Services marketability to the target respondents and industry.
Specific Problems:
The study will seek to answer the following specific questions:
1. What is the profile of the respondents?
1.1 Target Market
1.1.1 Age
1.1.2 Gender
1.1.3 Monthly Income
1.2 Existing Firms
1.2.1 Years of business
1.2.2 Nature of ownership
1.2.3 Capitalization
2. How do target market assessed the acceptability of the service along
the areas of:
2.1 Gross Market Acceptability Rate (GMAR)
2.2 Quantity demanded
2.3 Acceptable selling price
3. How do the existing firms assess the attractiveness of the industry in
which the business in consideration of the following forces of
competitiveness:
3.1. Rivalry among competing firms
3.2 Threats of new entrants
3.3 Threats of substitute
3.4 Bargaining power of consumers
3.5 Bargaining power of suppliers

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METHODOLOGY
This presents the respondents of the study, sampling method, the
research and validation of instrument, data gathering procedure, and
statistical treatment of data.
Respondents of the Study
The respondents of the study are composed of house hold and
companies’ population in District 1 of Parañaque City.
Sampling Technique
This study used Random Sampling. One of the best things about
simple random sampling is the ease of assembling the sample. It is also
considered as a fair way of selecting a sample from a given population
since every member is given equal opportunities of being selected.
Data Gathering Instrument
A survey questionnaire was used as the main data-gathering
instrument for this study. It was divided into three main sections; the profile
of the respondents, market acceptability and industry attractiveness. The
researchers wanted to determine profile of the respondents, it contains
socio-demographic characteristics of respondents such as name, age,
gender, and monthly income/allowance. In Market Acceptability, it aims to
determine how marketable the product is, and the ranges of prices they
are willing to pay for the services. Further, the Industry attractiveness
section, focuses on what level of attractiveness the competition in the
industry. The draft of the questionnaire was drawn out based on the
researcher's readings, previous studies, professional literature, published
and unpublished thesis relevant to the study.
Validation of Data Gathering Instrument
The questionnaire designed for the research was subjected for a
validation process which fell under the process of content validity. Content
validity is the extent to which are representatives of the questions that
could be asked to assess a particular. In examining content validity, the
researchers should consult experts and for the validation process of this
study, a copy of the research questionnaire was given to an accounting
practitioner. The expert examined carefully the research questionnaire to
ascertain the appropriateness and adequacy of the instrument.
Data Gathering Procedure
The researchers equipped the survey questionnaire that is
appropriate to the knowledge of the respondents. For the respondents of
industry attractiveness, the researchers collected the 50 existing firms by
gathering information about the firms parallel with house help services.
While the respondents for the market acceptability were composed of
random 85 adults ranging from 18 years old and above. In consideration
with the fact that the respondents were a large population, the researchers
decided to promulgate the surveys through the use of electronic mail. The
researchers included brief instructions as to how the questionnaires
should be answered together with the assurance that the information they
provided will be protected with confidentiality. Hereafter, the data gathered
from the survey questionnaires are subject to analyzation and
interpretation by the researchers.
Data Analysis
The researchers find the quickest and easiest way to gather
information is through survey questionnaire. The questionnaire was

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designed specifically for respondents to be able to answer the question by
putting a mark/check on the appropriate space in the questionnaire that is
delivered to them online. Every statement was rated by the respondents
using the following scales:
4 - Very attractive
3 - Attractive
2 - Unattractive
1 - Very unattractive
Weight Range of Mean Category
4 3.51 – 4.00 Very attractive
3 2.51 – 3.50 Attractive
2 1.51 – 2.50 Unattractive
1 1.00 – 1.50 Very unattractive
To interpret the data effectively, the researcher will employ the

following statistical treatment. The researcher was guided by the following
statistical tools used to interpret the data.
1. Mean
It is most popular and widely used measurement for representing
the entire data by one value is what most laymen call an average
and what the statisticians call the arithmetic mean. Its value is
obtained by adding together all the items and by dividing this total
with the number of items. This will employ to determine the
assessment of the different factors involved in the study.
Formula:
Mean ()
Where,
= Mean
N = Number of statements under the study
= Sum of total number of observations in the different
statements
2. Percentage - is a number or ratio expressed as a fraction of 100. It
is often denoted using the percent sign, "%", or the abbreviations
"pct.", "pct"; sometimes the abbreviation "pc" is also used. A
percentage is a dimensionless number.
This is expressed in percent as: P = (f/N) x 100%

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PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
This section presents the data gathered together with the statistical
analysis and its interpretation from examining the results of the survey
conducted on seventy (85) random respondents that is below 25 years old
and above. The purpose of this section was to provide an overview of the
approach used in the market study and how it is applied by the
researchers.
Statement of the Problem No.1: What is the profile of the
respondents?
1.1 TARGET MARKET
The study target markets compose of:
1. District 1 (Household and Companies) – comprises of single,
couple or families and companies in the first district of
Paranaque City who can avail the services offered.
The demand for the house help services is related to the changing
demographic and geographical factors. The table shows the household
size and companies in different barangays in District 1, Paranaque City. It
is a good indicator to identify the potential places to target and do
marketing/ promotional activities:
DISTRICT 1 FREQUENCY PERCENTAGE

BACLARAN 13 16%
DON GALO 6 7%
LA HUERTA 5 6%
SAN DIONISIO 21 24%
SAN ISIDRO 12 15%
SANTO NINO 8 10%
TAMBO 13 16%
VITALEZ 6 7%
TOTAL 85 100%
Table 1: Population of the Respondents
The above table shows the most attractive barangay to target and
serve is Barangay San Dionisio which has the highest population in
household and companies with a percentage of 24%. Followed by the
Barangay Tambo and Baclaran with 16%.
According to the surveys, the results for the profile of the
respondents are as follows:
1.1.1 Age
Table 2: Frequency distribution based on Age group

Frequency
Age Group Percentage
25 years old and below 60 71%
26 to 35 years old 15 18%
36 to 45 years old 6 7%
45 years old and older 4 5%
Total 85 100%
The conducted surveys are answered by 71% of people who are in

25 years old and below and 18% people have ages with 26 years to 35

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years old. Then 7% of the people are in 36 to 45 years old and lastly,
those people who are in 45 years old and above are 5% all in all.
1.1.2 Gender
Table 3: Frequency distribution based on Gender

Gender Frequency Percentage
Male 40 47%
Female 45 53%
Total 85 100%
Table 3 shows that there are more male respondents with

51.43% than the female with 48.57% who are fond of using the house help
services.
1.1.3 Monthly Income/Allowance
Table 4: Frequency distribution based on Monthly Income

Monthly Income Frequency Percentage
15,000 and below 50 59%
16,000- 25,000 14 16%
26,000- 35,000 9 11%
35,000 and above 12 14%
Total 85 100%
According to the survey, 58 of people have a monthly income of

15,000 and below and 16% have 16,000 to 25,000 income. Then 11% of
the conducted people have 26,000 to 35,000 monthly income while 14%
have their income with 36,000 and above.
Statement of the Problem No. 2: How do target market assessed the

acceptability of the service along the areas of:
1.1 Gross Market Acceptability Rate
Market Acceptance FREQUENCY PERCENTAGE

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Yes 76 89.41%
No 9 10.59%
TOTAL 85 100%
Table 5: Gross Market Acceptability Rate
Gross Market Acceptability Rate (GMAR): 89.41%

Conservativeness (75.00%)
Net Market Acceptability Rate (NMAR) 14.41%
Population x 3,609
Market Share 520
The table represents the Gross Market Acceptability Rate with result
that shows 89.41% of the respondents in availing the services. On the
other hand, the net market acceptability rate ended with a result of 14.41%
with a 75% conservativeness for the existing firms.
1.2 Quantity Demanded
FREQUENC PERCENTAG
SERVICES Y E
HOUSE CLEANING 30 39%
LAUNDRY 14 18%
CARPENTRY 9 12%
PLUMBING 11 14%
ELECTRICAL WORKS 12 16%
TOTAL 76 100%
Table 6 Demand for Services
SERVICES FREQUENCY
The table above shows the Quantity Demanded of the services
offered. Based on the result of the survey conducted, 30 of 76 or 39% are
willing to avail the house cleaning services offered. However, 14 of 76 or
18% will avail the laundry services. The carpentry got the lowest result of
12% or 9 of 76, while plumbing got 11 of 76 or 14% and electrical works
with 16% or 12 of 76.
Twice a Weekly Monthly Annually Total Percentage
week
HOUSE 9 13 6 2 30 39%
CLEANING
LAUNDRY 3 9 2 0 14 18%
CARPENTRY 1 2 4 2 9 12%
PLUMBING 2 2 4 3 11 14%
ELECTRICAL 1 3 5 3 12 16%
WORKS
Total Frequency of Service Availment 76 100%
Table 7: Frequency of Availability

The table 4 shows the total frequency of availment of the
customers. The customers would likely to avail the house cleaning and
laundry services are demanded by weekly. When it comes to the
carpentry, plumbing and electrical works, based on the conducted survey,

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the customers would likely to acquire these services by monthly.
As shown in the gross market acceptability rate of the services
offered, 30 out of 70 people with an equivalent of 39%, are willing to avail
the house cleaning services while 18% of the customers will demand for
laundry services. The carpentry services resulted that 9 out of 76 people
are more likely to avail it while 14% of the people wanted the plumbing
services and lastly, 12 out of 76 people will avail the electrical works.
Statement of the Problem No. 3: How do the existing firms assess
the attractiveness of the industry in which the business in
consideration of the following forces of competitiveness.
INDUSTRY ANALYSIS
For the industry analysis, the results of the survey answered by the
business in the service industry was used to determine if the industry is
attractive. The Porter’s five forces were used, these are threat of new
entrants, bargaining power of customers, bargaining power of suppliers,
threat of substitutes, and competitive rivalry within the industry.
a. INTENSITY OF COMPETITION
b. THREATS OF SUBSTITUTES
c. THREATS OF NEW ENTRANTS
d. BARGAINING POWER OF CONSUMER
Existing Firms
The researchers conducted a survey to fifty (50) companies who
offers different services in the industry.
1. Years of business
Table 8: Years of Business

Years of Business Frequency Percentage
10 years and below 30 60%
11 to 20 years 10 20%
21 to 30 years 5 10%
30 years and above 5 10%
Total 50 100%
Table 8 shows that there were more businesses that are somehow
new to this industry with 60% followed by 11 to 20 years with 20% and for
21 to 30 years and 30 years and above both have 10%.
2. Nature of ownership
Table 9: Nature of Ownership

Nature of
Ownership Frequency Percentage
Sole Proprietorship 15 30%
Partnership 20 40%
Corporation 15 30%
Total 50 100%
Based on the results, there are more businesses in the industry

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which is partnership with a 40%, while the sole proprietorship and
corporation has 30%.
3. Capitalization
Table 10: Capitalization of the Business

Capitalization Frequency Percentage
P 500,000 and below 10 20%
P 501,000 to 1,000,000 10 20%
P 1,001,000 to 1,500,000 10 20%
P 1,501,000 and above 20 40%
Total 50 100%
Results showed that there were businesses who had their

capital started at the range of 1,501,000 pesos and above that has
40%, while the rest got 20% equally.
INDUSTRY ATTRACTIVENESS
Table 11: Weighted Mean of the Industry Attractiveness

The table above illustrates the intensity of competition among
similar firms which generated a weighted score of 2.50 from the frequency
of response of the respondents divided by the total number of
respondents. Thus, the rivalry is intense. The threats of substitute which
will determine if the industry has a competitive environment for the existing
competitors which garnered a weighted score of 2.90 proving that the
threat is low. While the bargaining power of supplier based from the total
response of the respondents which procured a weighted score of 2.90,
hence, the threat is low. And the information about the bargaining power of
consumer which gives a 3.10 weighted score meaning the threat is low.
Therefore, it can be concluded that the industry attractiveness with
a general weighted average of 2.85 means the industry is attractive.
PRICE STUDY
Selling Price
Our price ranges differ according to house help services we offer.
Please refer to the list below:
Services FREQUEN PERCENTA

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Offered Ranges of Prices CY GE
House
P250 – P350/hour 9 12%
Cleaning:
P1, 250 – P3, 000/ 5 days package 13 17%
P 5,000 – P8,000/unlimited
8 11%
subscription for 1 month.
Laundry: P100/ kilo- garments only 5 7%
P350/ kilo- comforters, curtains, bed
9 12%
sheets
Carpentry: P800/day 1 1%
P4,000/week 4 5%
P16,000/monthly subscription 4 5%
Plumbing: P750/day 2 3%
P3,750/week 2 3%
P15,000/monthly subscription 7 9%
Electrical
P5,000 – P7,500/5 days package 4 5%
Works:
P15,000 – 20,000/Unlimited
8 11%
subscription for 1 month.
TARGET MARKET (BASED ON THE RESULTS
76 100%
OF SURVEY)
Table 12: Accepted Selling Price
As shown in the table above, the respondents were asked to

choose what is the accepted selling price of the services they wanted to
avail (refer to table 4). For the house cleaning service, there are more
willing to pay for 5 days package. In laundry service, there were more
people who wanted to avail the service for the heavy garments cost
P120/kilo with 12%. Payment for a day and a week of service seems to be
accepted when it comes to carpentry and a monthly subscription for the
plumbing service.
a. PROJECTED SALES

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The table below illustrates the projected 5% increase on annual
sales for the next five years.
Table 13: Sales Forecast for the Next five (5) Years.
FINDINGS
The researchers aim to investigate whether there is market or not and
if the study is feasible and attractive in the industry.
1. Is there a market?
According to survey questionnaires being given to the respondents, it
resulted that the Gross Market Acceptability Rate had a percentage of
89.41% which indicated that the respondents would surely avail the
services when it will be offered to them.
2. Is the amount quantity demanded substantial enough to introduce the
services in the market?
Based on the results arrive from the data gathering that the researchers
conducted, the results arrived with the different amount of quantity
demanded to each service that they are willing to avail was shown in Table
3: Demand for Services. It indicated that the quantity demanded is
substantial enough to introduce the services in the market. Majority of the
respondents are interested to House Cleaning services with a percentage
of 39% followed by Laundry with 18%, electrical works with 16%, plumbing
with 14% and the last is carpentry that has 12%.
3. Is the industry attractive?
According to the data gathering, the researchers arrived with the
results that the industry is attractive. The researchers conducted data
gathering procedure on businesses who are engaged in the same
services. Based on the results shown in table 8, the industry is attractive
with a general weighted average of 2.85.
CONCLUSION
Based on the findings arrived, it can be concluded that there is a
market to offer house help services in the District 1 of Parañaque City. The
surveys that were distributed showed a result of the Table 2: Gross Market
Acceptability Rate, the majority of the respondents with a percentage of
89.41% answered that they will avail the services when it will be offered to
them. The amount of quantity demanded to each service that they are
willing to avail was shown the results in Table 3: Demand for Services
were substantial enough to introduce the product to the market.
Subsequently, most of the respondents are interested to House Cleaning
services with a percentage of 39% followed by Laundry with 18%,
electrical works with 16%, plumbing with 14% and the last is carpentry that
has 12%. Also, in order to determine the industry attractiveness, the
researchers surveyed businesses who were engaged in same services.
Based on the results, it can be concluded that there is a market for the
services with a general weighted average of 2.71 for the industry
attractiveness which means that it is attractive in the industry.
RECOMMENDATION
On the basis of the conclusion, it is highly recommended to conduct full
blown feasibility study.

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THE FEASIBILITY STUDY
A feasibility study is an analysis that takes all of a project's
relevant factors into account—including marketing, technical,
organizational and management, financial and socio-economic
feasibility—to ascertain the likelihood of completing the project
successfully. Project managers use feasibility studies to discern the
pros and cons of undertaking a project before they invest a lot of
time and money into it.
Business Name
The Butler
Business Location
It is located in Aseana City, Mall of Aisa (MOA) Complex, Barangay
Tambo, Paranaque City. (District 1)
Service Description
The Butler offers house help service in the most convenient way.
The business has its slogan, “At you service” that delivers how the
company wanted to give the awesome and easiest way of availing these
services. It offers five (5) services as mentioned above. The services are
offered with the use of online application that offers mobility anytime or
anywhere you go, you can avail without the hassle of scheduling it. Since
a lot of people are busy, these services are just one click away at the tip of
your fingers.
CHAPTER 1:
MARKET FEASIBILITY
Market feasibility studies should include a description of the
industry, current market analysis, competition, and anticipated future
market potential. This section presents the 4 P’s in the marketing
strategies.
I. SERVICE STRATEGY
This is very important in a highly competitive business
environment that there is a great service strategy present in order
to address customer needs and wants. This strategy will include
employees on the front line; therefore, the employees must
understand the company’s vision regarding customer service and
comply with it to the best of their ability.
Qualifications needed for the customer service representatives:

A. Superior communication skills. - communication skills
are essential to make the business effective especially that it is
very much needed for handling inquiries of customers about
the different services offered.
B. Self-control – ensure that the personnel has a great self-

control when it comes in dealing with customers that
sometimes are difficult to deal with. For this reason, you
must be able to handle both the easy and hard times that
comes with serving the public.
C. Knowledgeable about the services. It is important for the

business to hire someone who knows the services inside
and out.
D. Caring. Customers are also looking for someone who

actually cares about them, not just making a paycheck. To

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land a good impact to the customers, personnel must have a
caring attitude in general about helping people.
E. A good work ethic. As with any job, personnel must have a

good work ethic. They must be willing to put the needed
work in to provide exceptional customer service.
This diagram below represents the flow effective service strategy of "The
Butler"
Figure 1 Service Strategy Flow
Branding
The logo of "The Butler" is illustrated below. The yellow background was
chosen to represent for freshness, happines, positivity and enlightenment
which will be very helpful in the business and the man represented the
jolly and efficient workers of "The Butler". The different stuff and
equipment inside the house shaped line represented the different services
offered.

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Figure 2 Business Logo
II. PLACE STRATEGY
The internet plays a big part in our generation today. Whatever you
want to have or want to get things done, in just a click, you will have it.
Therefore, The Butler chose this platform for a wide-range of clients and
easily accessible for the public. It can be downloaded from Playstore or
Appstore for free. It only requires creating an account for each client that
will avail different services offered by The Butler.
Figure 3 Online
Application
III. PRICING STRATEGY
Prices of main
competitors
Provided below
are the list of prices
of different house help services from known competitors.
House Cleaning: P350/hour
Laundry: P150-400/ kilo
Carpentry: P650-850/day

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Plumbing: P850/day
Electrical Works: P1000/hour
Table 14: Competitor’s Prices
In Price/Quality dimension, the study will be preferable than the

competitor because it is specialized in quality service. Direct competitors
are those individuals who are involved in providing house cleaning
services, cloth washing services, repair services individually. There are
also some companies which specialize in providing these services but
only provide one or two segments of services. The indirect competitors will
be laundry and dry cleaner/s companies in the market.
The Butler will use the Market Pricing Penetration Strategy. Typically,
this comes in the picture when you are marketing and selling products in a
saturated and highly competitive market. Market penetration strategy is
needed when you are looking at the product market expansion grid. Thus,
the current market might already be saturated, or it may have high
competition or your current product has low turnaround time. In such case,
what can be your strategy to increase market penetration? Here are 6
tactics to increase market penetration.
There are 6 tactics for Market penetration strategy. The
following are:
1. Price penetration.
The oldest trick in the book is to drop the price of the service
thereby possible increasing the attractiveness of the service and
taking on the challenge of the competitor.
2. Increase promotions.
Another tactic for market penetration strategy is to increase the
promotions for the service and thereby increase the pull strategy for
these services. By giving trade discounts, sales promotion
discounts, and any such additional benefits to the customers along
with promotions will ensure that you penetrate the market better.
3. Increase reach.
The service is channel driven, than increasing the reach of your
service is the best market penetration strategy to sell better than
the competition. Using online application makes the services easy
to avail.
4. Increase usage.
By increasing the usage of a services, we can increase its
consumption thereby penetrating the market even further.
5. Attract competition customers and dealers.
By dropping the price in a given area for the distributor or targeting
the existing dealers of competition products, you can increase your
market penetration by decreasing the availment of services offered by
competitor.
6. Non users to start the availing the services.
Encouraging non users to start to avail the services is a tough task
and this is where the marketing department steps in. Promoting the
services to social media sites and other types of promotions are
needed in this tactic.
IIII. PROMOTION STRATEGY
Advertising and Promotion
This refers to raising customer awareness of the services and creating
services loyalty.

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1. Leaflets and flyers, and Tarpaulin
Leaflets and flyers will be distributed upon the opening of the shop
so that the market will be able to be informed that it is already
available. The leaflets and flyers will be personally done by the owner
of the business which has a budgeted amount of P 3,000.00
Tarpaulin will placed in front of the business. The cost would be P
2,500.00. It will be personally done by the owner as well.
Leaflets, flyers and tarpaulin will include the following information:
- Services offered
- Business slogan:
- Business name, address and contact number
- Business logo
Figure 4 Sample Flyers
2. Social Media – It is a lot way easier

to reach your market through social media like facebook, instagram
and twitter since it is the mainstream in today’s generation.
Figure 5 Sample Social Media Site

3. Word of Mouth- The most effective way of promoting your
business is through the word of mouth. Every happy customer can
steer dozens of new ones your way. It is one of the most credible
forms of advertising because a person puts their reputation on the
line every time they make a recommendation.
Chapter 2:
Technical Feasibility
Technical feasibility study is the complete study of the project in
terms of input, processes, output, fields, programs and procedures. It is a

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very effective tool for long term planning and trouble shooting. The
technical feasibility study should most essentially support the financial
information of an organization.
A. SERVICES
The services to be offered by The Butlers will focus on the commercial
and residential spaces. The different services are listed below.
Carpentry- the carpentry services will specialize in the installation of
wood frames, shelves, cabinetry, staircases, banisters, and other parts
associated with the practice of carpentry. The business will work directly
for residence and property owners.
Electrical Works-this service will mainly focus on installing and
maintaining wiring, controlling, and lighting systems. It could also provide
inspection of electrical components, such as transformers and circuit
breakers. This service will work on identifying electrical problems with a
variety of testing devices. Lastly, this will help customers for repair or
replace wiring, equipment, or fixtures using hand tools and power tools.
House cleaning- the basic service offerings to the business’ highly
esteemed customers will revolve around general house cleaning such as:
• Office cleaning, for commercial spaces, which includes garbage
removal, dusting and cleaning of all surfaces, sweeping and
mopping of floors, and cleaning of doors and walls as needed.
• Furniture cleaning
• Floor waxing
• Floor stripping and sealing
• Carpet cleaning
• Window cleaning
• Bathroom and kitchen area cleaning
Laundry Services- this will provide the best laundry services by giving
a high-quality service of washing, drying, and folding the clothes and
fabrics of the respective customers.
Plumbing Services- this service will involve the installation, repairing
and maintenance of any system which conveys several kinds of fluids.
Such systems range from water pipes to drains which are often used for
waste removal.
B. PROJECT CAPACITY AND PRODUCTION SCHEDULE
This will represent the project capacity and production schedule of the
online services offering house help.
Production Schedule
Operating hours per day 8 hours
Operating hours per annum 2,536 hours
Operating shift per day 1 shift
Operating days per week 6 days
Operating days per annum 317 days
Table 15. Projected Schedule

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The details of the project capacity of each service are as follows:
Projected Capacity
Carpentry
Minimum numbers of carpentry 5-10 minimum numbers of
works per day carpentry works per day
Maximum numbers of carpentry 10-15 maximum numbers of
works per day carpentry works per day
Electrical Works
Minimum numbers of electrical 5-10 minimum numbers of
works per day electrical works per day
Maximum numbers of electrical 10-15 maximum numbers of
works per day electrical works per day
House Cleaning
Minimum numbers of house 15-20 minimum numbers of
cleaning services per day house cleaning services per
day
Maximum numbers of house 20-30 maximum numbers of
cleaning services per day house cleaning services per
day
Laundry Services
Minimum numbers of laundry 10-15 minimum numbers of
services per day laundry services per day
Maximum numbers of laundry 15-20 minimum numbers of
services per day laundry services per day
Plumbing Services
Minimum numbers of plumbing 5-10 minimum numbers of
services per day plumbing services per day
Maximum numbers of plumbing 10-15 minimum numbers of
services per day plumbing services per day
Table 16. Projected Capacity
C. EQUIPMENT and FURNITURES

In this section, the equipment and furniture that will be used in the
company were listed below together with complete specification followed
by a table which shows the depreciation respectively.
1. OFFICE DESKTOP
· Brand: Dell Optiplex 7050 desktop

· Hard Drive: 256GB
· RAM: 8 GB

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· Hard Drive Type: SSD
· RAM Type: DDR4
· Processor: Intel Core i5-7500
· Processor Speed: 3.4 GHz
· Graphics: Integrated Graphics
· Processor Brand: Intel
· Product Dimensions: 19.2 x 15.7 x
10.3 inches
· Weight: 13.6 lbs
· Operating System: Windows 10 Pro
Figure 6: Office Desktop Php 52,250.00
2. Office Printer
· HP Laser Jet Enterprise 700 MFP

m775
o Print, copy, scan, digital send
· Print speed letter: Up to 30 ppm
(black and color)
· Prints up to 11x17"; 2 paper trays
(standard);
Scan to email; Auto duplex printing; 100-
sheet ADF
· FCC Class A emissions - for use in
commercial
environments, not residential
environments
Figure 7: Office Printer Php 78,500.00
3. Air-conditioning Unit
Mitsubishi Electric MSZ-GL Series
Catechin Plus Air Purification
System
Hi CFM – fastest Cooling

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Dot Liquid Crystal Display
Eco-Friendly Operations
24 x 7 Support
Wide and Long Throw – up to 12
meters
Anti-Allergy Enzyme Filter
Quietest - 19db
Auto Restart
Figure 8: Airconditioning Unit Php 75,000.00
4.Office Chair
· Wide base for extra
stability
· Rated to 1200 lbs.
Figure 9: Office Chair Php 2,650.00
5. Office Workstation
Usage/Application: Offices
Brand: Godrej
Material: Engineered Wood
Color: Standard Color
Size: Standard Sizes
Figure 10: Office Workstation Php 4,778.13

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6. Office Cabinet
Series: 22" Deep Verticals
No. of Drawers: 2
Overall Width: 15
Overall Height: 28.38
Finish Powder: Coated
Material: Steel
Handle Type: Aluminum
Standards: ANSI/BIFMA
Figure 11: Office Cabinet Php 3,700.00
7. Equipment Shelf Rack

· 3 rows shelf rack

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Figure 12: Equipment Shelf Rack · Php 7,250.00
8. Office table
Material: Laminated Wood
Color: Gray
Dimension:
1002 Office Table: L1008 x W620 x
H760 mm
1202 Office Table: L1208 x W620 x
H760 mm
Figure 13: Office Table Php 7,550.00
9. Conference Room table
· Mahogany meeting table with 8

chairs
Figure 14: Conference room table · Php 45,580.00

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10. Company Pantry table
· White and oak finish kitchen island
with 6
High-stool chair
Figure 15: Company pantry table • Php 38,050.00
11. Lounge Chair set

· Stainless steel waiting lounge
chairs YA-59
Figure 16: Lounge chair set · Php 6,000.00

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Table 17:
Depreciation Schedule of equipment, furniture and leasehold improvement
D. PLANT LOCATION

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The business to be established will lease an office space. It is
located in Aseana City, Mall of Asia (MOA) Complex, Brgy. Tambo,
Parañaque City. The location is surrounded by different industries and
businesses which will be good for the attractiveness of business to the
market.
Figure 17: Plant Location
E. PLANT LAYOUT
The office layout in the case of The Butler is not parallel to other
service providers since it tends to clients outside the office premises.
However, the company will have comfortable furnishings and reasonable
ambience in order to create good working environment. The Butler will use
a rented house of approximately 4 rooms from where to conduct business
operations.
The company’s layout consists of the following areas:

• Office of the Managing Director
• Office of the Chief Financial Officer
• HR & Administrative Department
• Accounting Department
• Restrooms
• Hallway
• Supply Room

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• Lounge
• Company pantry
• Conference room
Figure 18: Plant Layout
▪ AREA EACH OFFICE
1. Office of the Managing Director

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2. Office of the Chief Financial Officer
3. HR & Administrative Department
4. Accounting Department

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Figure 19: Office of the General Manager
▪ ARRANGEMENT INCLUDING SPACES FOR CONFERENCE

ROOM, RESTROOM, ETC.
1. Company Pantry
Figure 20: Office of the Chief Financial Officer
2. Lounge
3. Restrooms
4. Supply Room

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5.
Figure 22: Accounting Department
Figure 23: Company Pantry
Conference Room
6. Hallway

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F. BUILDING AND FACILITIES
The space area measures 135 m². It is a premium and fiber optic
ready building that composed of four (4) office rooms, conference
room, storage space, comfort rooms and pantry. The area is in warm
shell condition with minimum lease length of three (3) years which
costs a monthly payment of P168, 971.
AMENITIES

Air conditioning
Fire exits
Alarm System
Lobby
CCTV
Reception area
Elevators
Smoke detector
Fire alarm
24-hour security

Figure 25: Restrooms
G. SUPPLIES
The supplies needed for the following services are listed below:

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Figure 27: Conference Room
Table 18. List of Supplies each Service
H. UTILITIES
• Water
The area has its own meter for water consumptions because
running water is a must for a business. From a health and safety
perspective, it is important to have access to water for first aid and basic
hygiene.
• Sewage and Drainage System
It has already an installed septic tank which is connected to the

water drainage system. This also handles the proper waste segregation

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and disposal.
• Telecommunication and Wireless Connection
This is an important matter because wireless connection and
telecommunication are the bloods of this kind of business. It has to avail
the services of the best and suitable telecommunication company for the
business.
• Electricity
The industry is important for the economy because all businesses
require electricity to operate. Electricity plays an important role for homes
& industries. the whole devices and equipment at homes, businesses and
industries are running because of electricity.
I. LABOR REQUIREMENTS
There will be two types of staffs working for the company;
permanent and part time. A permanent staff consists of those working in
the administrative team. They will be hired for post like administrative
officer, human resource/customer relationship officer, database operator.
Newspaper advertisement and personal referral will be used for
recruitment of these staffs. Selection will be done on the basis of review of
qualification, prior experience, communication skills and completion of
interview. Part time staffs consist of the butlers itself. Primarily, to recruit
these staffs they will need to download the application in their mobile
phones. Selection will be done on the basis of prior work experience and
no criminal records.
The requirement of personnel for the business will be fulfilled by

local labor market. The company’s purpose is to find people to do the
specific services for the clients. Therefore, the company will use the
appropriate media to attract individuals to download the application in their
mobile phones. Additionally, it will use advertisement to be scattered
around the web to inform labor about the 28:
Figure employment
Hallway opportunity. The
company will recruit the best personnel from the available market source.

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Table 19: Total number of staffs and their expected salary for the next five years
Table 20: Total number of laborers and their expected salary for the next five
years

Manpower requirements
I. Physical Requirements:
• Age must be 18-45 years old
• no skin allergies
• drug-free
• no terminal illness
II. Skills and Qualities

• Must be at least a graduate of TESDA with
2 years of experience
• good attention to detail
• willingness to do repetitive work
• the ability to work methodically and follow
instructions
• willingness to work flexibly - good
timekeeping skills

CHAPTER 3
ORGANIZATION AND MANAGEMENT STUDY
This section discusses about form of ownership, organizational
chart, officers and key personnel and their job and duties, the GANTT
chart of activities, and the business' registration and licensing.

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Form of Ownership
The Butler is a partnership. It is composed of partners having
mutual trust to open up a business combining their total contributions.
Advantages of a Partnership
1. Easy to Form. The main advantage of partnership is that it can be
easily organized. There are no legal formalities required in this type
of business. The partners enter into a partnership and start
business.
2. Favorable Credit Standing. The second merit is partnership

enjoys a better credit rating in the eyes of creditors. As the liability
of each partner in the organization is unlimited, the financial
institutions can safely advance loans to the firms.
3. Large Capital. Another advantages is that it brings more and more

capital to the business by the joint efforts of the partners.
4. Greater Management Ability. As we know that there are many

partners involved in the business operation of the partnership, due
to which the firm can distribute the duties and responsibilities to
each partner as best suited to him.
5. Profit Incentive. The profit is always shared by the partners

according to the agreement.
6. Advantages of Secrecy. As the partners can keep the business

secrets with themselves leads not to require any law to publish its
profit and loss account and balance sheet.
7. Ease of Dissolution. The partnership can easily be dissolved with

the mutual consent of partners or according to the contract. There
is no formal document to be drawn up as in the case of a joint stock
company.
Disadvantages of a Partnership
1. Unlimited Liability. One of the basic demerits of partnership is that
the partners are personally and jointly responsible for all the debts
of the firm. In case the business suffers losses and then the
personal property of partners can be sold under the court order for
the clearance of the debts of the business.
2. Limited Life of Firm. The second demerit is that the duration of

business is always uncertain. It can be dissolved in case of
partner’s death, withdraws and sell his interest etc.
3. Frozen Investment. It is very easy to invest his money in the

partnership by a partner but very difficult to withdrawn any funds
from the business.
4. Dispute Among the Partners. As we know that every partner has

his own thought of views, in this type of business sometime dispute
occurred among the partners on decision making, so quick action
required to be taken by all the partners for the remedial
measurement.
5. Possibility of Misuse of Resources. As the resources of the firm

are owned by the partners jointly leads to misuse these resources

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by the partner/ partners.
6. Loss of Business Opportunities. One of the demerits is that in

case of differences in view among the partners, a delay may take
place in decision-making. This can cause loss to the business.
7.
Lack of Public Confidence. Partnership form of organization may not

be enjoying public confidence due to lack of publicity and
regulations.
Organizational Chart
Figure: 19 Organizational Chart
Officers and Key Personnel

I. Job Duties and Responsibilities
Managing Director: Direct the company in keeping with the vision
outlined for the company by the Board of Directors. Represent the
company as required, including attendance of important functions, industry
events and public meetings.
Administrative/ Account Officer: A successful Administrative Officer
will act as the point of contact for all employees, providing administrative
support and managing their queries. Main duties include managing office
stock, preparing regular reports (e.g. expenses and office budgets) and
organizing company records. If you have previous experience as an Office
Administrator or similar administrative role, we’d like to meet you.
Human Resource / Customer Relationship Officer: Analyze current
and past marketing data to help determine overall marketing strategy.
Ensure marketing ideas coincide with the company's brand and mission
statement. Responsible for all the activities related to human resources in

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the organization. Recruitment, selections, development and training are
some of the responsibility performed by Human Resource officer. He/ She
will also be responsible for managing customer relationship. The duties to
be performed will include: handling potential customers enquiry and
existing customers complaints, search for new customers, profile
customers’ needs and maintain communication with potential clients.
Marketing Manager: manages the marketing of a business or

product. They can be responsible for several services or products, or be in
charge of a single product. A marketing manager needs to have an
outgoing, gregarious, and spontaneous nature. In concert with these traits,
they need to be highly focused, detail-oriented, and very conscientious of
meeting budget restraints and timelines.
Operations Supervisor: responsible for overseeing the day to day
operations of an organization and ensuring that the business has the staff,
resources and funds needed to run smoothly. Their duties include
coordinating staff schedules, maintaining supplies and inventory, and
implementing professional development strategies. Operations Managers
also work with upper management to develop budgets and create financial
forecasts in order to ensure the organization remains solvent.
Treasurer: The treasurer position is responsible for corporate liquidity,
investments, and risk management related to the company's financial
activities.
Accountant: manage all financial transactions, from fixed payments
and variable expenses to bank deposits and budgets.Accountant
responsibilities include auditing financial documents and procedures,
reconciling bank statements and calculating tax payments and returns. To
be successful in this role, you should have previous experience with
bookkeeping and a flair for spotting numerical mistakes.
Cashier: Primary role is to assist customers in the in-store check-out
process. Responsible for counting the contents of cash register drawer at
the end of each shift, maintaining receipts, records and withdrawals. May
be responsible for checking materials and supplies and reporting when
stock is low.
Laborers: Their roles are depending on what services the customers
will avail. (House cleaning, laundry, carpentry, plumbing, electrical works.)
Guard: Secures premises and personnel by patrolling property;
monitoring surveillance equipment; inspecting buildings, equipment, and
access points; permitting entry.
II. Total headcount per department

Table 21: Total number of staffs
Position Number of Staffs
Partners 3
Managing Director 1
Administrative/ Account 1
Officer
Human Resource /1
Customer Relationship
Officer
Marketing Manager 1

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Treasurer 1
Cashier 1
Accountant 1
Security Guard 1
Total 11
Table 22: Total number of laborers

House cleaner 5
Cloth Washer 5
Electrician 5
Plumber 5
Carpenter 5
TOTAL 25
Table 23: Qualification and skills of staffs and management team
Position Qualifications
Bachelor’s degree and extensive business and industry
Managing Director experience.
Administrative/ Certified Public Accountant (CPA) with atleast 3 years’
Account Officer experience.
Human Resource / Bachelor’s Degree in Business Administration Major in
Customer Marketing/ Human Resource Management with at least 3
Relationship Officer year experience.
Bachelor’s Degree in Business Administration Major in
Marketing/Human Marketing/ Human Resource Management with at least 1
Resource Manager year experience.
Certified Public Accountant (CPA) with atleast 1 year
Accountant experience.
Treasurer Bachelor’s Degree in Accountancy

Bachelor’s Degree in Accountancy/ Business
Cashier Administration major in Financial Management
Laborers With atleast an experience or with TESDA Certification.
Security Guard With atleast 3 years' experience.

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Project Schedule
Table 24: GANTT CHART
The table above shows the operation schedule of “The Butler”. The
preparation for getting licenses as well as its approval is scheduled on
August however the approval may be extended to September to October.
While the documentation of licenses takes place on September to October
as well. The schedule for searching and evaluating site and its finalization
is on September and October. The architectural layout design must start
and completed by November so that on December the layout will be
accomplished. When it comes to office supplies, the canvasing and
evaluation of suppliers or sellers must be done on October to November.
After finalizing the supplies needed, the purchasing follows on December.
As to Human Resource department, the recruitment and selection of
employees will be on August to November and the training of selected
employees will be on December. After all of these, on the following year
will be the start of service as well as the marketing and promotion.
Registration and Licensing
Essentially, a corporation legally comes into existence when the business

owner registers the business name and obtains any relevant business
licenses.
Government agencies for registration
• Securities and Exchange Commission

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• Local Government Units where your business is located:
a. Barangay / Mayor’s permit
• Bureau of Internal Revenue

• Legally Required Registration of Employee Benefits
Employers are legally required to provide certain benefits for

employees. Employee benefits play an important role in the lives of
employees as well as their families. For that reason, the benefits you offer
can be a deciding factor for a potential employee’s decision to work at
your business.
Employee’s registration to the following:
• SSS
• PhilHealth
• Pag-ibig – HDMF

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•
Sanitation Certificate- A certificate that is issued by an authorized

governmental inspection agency that confirms the facility and/or
cargo has been inspected and meets the minimum sanitary
requirements.
• Fire Safety Inspection Certificate-

The Fire Safety Inspection Certificate (FSIC}
issued by the Bureau of Fire Protection

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serves as an assurance that a certain facility,
structure or building/occupancy has been
duly inspected and deemed complying to the
Fire Code of the Philippines or RA 9514.

CHAPTER 4
THE FINANCIAL FEASIBILITY
This section projects how much start-up capital is needed, sources
of capital, projected financial statements, financial statement analysis, and
other financial considerations. The study considers how much cash is
needed, where it will come from, and how it will be spent.
A. FINANCIAL STATEMENT ASSUMPTIONS

• Income Statement Assumptions
1. Service Revenue
Service rate: It increase by 5% annually.
Service: The service rendered is on cash basis.
2. Cost of Services Rendered:
Direct Labor: Salaries for Laborers.
Factory rent: 30% on service, 70% on administrative

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Factory utilities: 30% on service, 70% on
administrative
3. Selling Expenses
Depreciation: It will be depreciated using sum of the years digit
method with different salvage value depending on their model/brand.
Sales Staff Salaries: Salaries paid for sales staff. (marketing
manager)
Marketing Expenses: It increases by 5% of preceding year
expenses.
Office Supplies: It remains constant throughout the year.
Utilities : It remains constant throughout the year.
Tax Rate: Tax rate is 35%.
th
Staff Salary: It is assumed to increase after the 5 year of the
business.
th
Laborers Salary: It is assumed to increase after the 5 year of the
business.
• Cash Flow Assumptions:
1. Balance Sheet:
Current Assets
Investment: P 100,000 cash will be invested for the first year for
marketable securities at 10% and is assumed to be sold or redeemed
within one year. Investment will also increase at 10% every year.
Fixed Assets:
Furniture/ Equipment: No additional assets will be added in 5
years' time.
Equity and Liability
Drawings: The partners are assumed to have regular drawings of
25%.
B. PROJECT COST
The Project Costs are any expenditures made or estimated to be
made, or monetary obligations incurred or estimated to be incurred to
complete the project which are listed in a project baseline.

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The
Finan
cial
Feasi Figure 21: The Project Cost
bility
Schedule 4: Registration Charges

Business Permit and Licenses
DTI Registration Fee PHP 215.00

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Mayor's Permit - Business Permit Fee 5,027.00
BIR Registration Fee 500.00

TOTAL PHP 5,742.00
Schedule 8: Supplies

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SOURCING
Partner 1, Capital ₱625,000.00 25.00%

Partner 2, Capital 625,000.00 25.00%
Partner 3, Capital 625,000.00 25.00%
Partner 4, Capital 625,000.00 25.00%
Contributed Capital PHP 2,500,000.00 100.00%
Figure 22: Source of Capital

The partners have a total contributed capital
of P2,500,000. Each has 25% ratio of shares in
profit.
C. Projected Financial Statements
1. Projected Income Statement for 5 years
Figure 23: Projected Income

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statement
2. PROJECTED STATEMENT OF CHANGES IN EQUITY
Figure 24: Projected Statement of Changes

in Equity

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3. PROJECTED STATEMENT OF FINANCIAL POSITION
Figure 25: Projected Statement of Financial

Position
4. PROJECTED STATEMENT OF CASH FLOWS

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Figure 26: Projected Statement of Cash
Flows
D. FINANCIAL ANALYSIS
1. LIQUIDITY RATIO
Table 25: Liquidity Ratio

2. PROFITABILITY RATIO

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Table 26: Profitability Ratio
E. INVESTMENT ACCEPTABILITY
1. BREAK-EVEN POINT
Table 27: Break-even Point

The table above shows the breakeven point of the services offered by
The Butler. In house cleaning services, 117 clients are needed to
breakeven while 1,692 kilos of garments are needed to reach the
breakeven point for the laundry services. In carpentry, plumbing and
electrical works services, the clients needed to breakeven are 68, 16, and
13 respectively.
2. Return on Investment (ROI)
Table 28: Return on Investment

The higher the ratio, the greater the benefit earned. Every year, the
ROI increases.
3. PAYBACK PERIOD

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Table 29: Payback Period
The payback period refers to the amount of time it takes to recover the
cost of an investment. Grounded by the result of the payback period, the
company would recover its initial outlay after four years. Therefore, the
investment is desirable
4. NET PRESENT VALUE
Table 30: Net Present Value

The Net Present Value of the proposed project has a positive result
which means that the company could attract more investors.
5. INTERNAL RATE OF RETURN

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Table 31: Internal Rate of Return
The Project must be accepted because it resulted with a higher rate of
return.
6. PROFITABILITY INDEX
PROFITABILITY INDEX
1 + (Net Present Value/ Initial Investment Required
1 + (66,508.17/2,500,000)
0.026603268
1.03
Table 32: Profitability Index
Since the index is more than 1, then the investment is worthy
because it will earn back more than you invest in.
CHAPTER 5
SOCIO ECONOMIC-STUDY AND ENVIRONMENTAL IMPACT
This chapter in general provides information about the socio-
economic study of the business as well as its environmental impact. This
will tackle the benefits that can be rendered to the customers, the owners
and the staff and how the economy will have its own advantages when it is
already open for business.
Socio-Economic
The proposed business, “The Butler Incorporated” will bring
satisfaction to customers, who are looking for a services without the
hassle of finding/contracting directly anyone who can give them the
services without security if it’s safe. The business will help the customers
or individuals to maximize their time for other work and serve comfort to
the customers.
Contribution to the Economy
The proposed business will benefit the economy through providing
employment to every individual especially within the resident covered by
the study. This will give the hired employees and their families their source
of income for their living needs. This business will support local workers. It
will also promote the business and also contribute to the competition
which will lower the price of the services but will maintain its quality.
Contribution to the Government
As Filipino citizens, the business owners will pay their tax liabilities
mandated by the law. Tax will help the government generate funds for the
improvement of public service and government projects.
Contribution to the Society
“The Butler Incorporated” will keep this town marketable to attract
more investors that will help the community for its improvements and
modernization, which, in turn leads to money placed directly into the
community.
Environmental Impact
Any business with regards with the usage of cleaning chemicals
might add to the effect of what we are experiencing now, the “global
warming”. Since, the proposed business has to make sure that it will not

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cause any harm, the laborers will undergo training in which they would
discuss how to properly dispose this substance and safety measures in
dealing with them. There would be personal supplies for the laborers to
avoid direct contact with these substances.
Chapter 6
CONCLUSION AND RECOMMENDATION
Using the net present value method, it can be concluded that the
project is profitable since it procured a positive result proving that the
company could attract more investors. Since the internal rate of return
exceeds the company’s required return it can be concluded that the
project is desirable hence, should be accepted. The project will take four
years to pay back and the company’s earnings potential is great. Based
solely on the payback period method, the project is a good investment.
The Profitability Index resulted to more than 1 therefore the investment will
earn back.
Generally, The Butler is seen to be feasible upon studying its
location, market demand and the factors affecting the market and
projected financial statements. It is recommended that an extensive study
for other aspects of the business feasibility is conducted and the execution
of the marketing program developed accords to what really satisfies the
market.

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1. Rivalry among competing 4 3 2 1
firms If the rivalry If the rivalry If the rivalry If the rivalry
is very is negligible is intense is very
negligible Intense
Evaluate according to the number of
competing firms.
i.e, if many, the rivalry is very
intense therefore the industry is
unattractive (1)
4 - If the rivalry is very negligible
(Very Attractive)
3 - If the rivalry is negligible
(Attractive
2 – If the rivalry is intense
(Unattractive)
1 – If the rivalry is very intense (Very
Unattractive)
2. Threats of new entrants 4 3 2 1

If the threat If the If the threat If the threat
is very low threat is high is very high

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low
Assess in terms of size of capital and
level of technology.
i.e, if the capital required is large and
technology is not easily acquired then
the threat is very low therefore the
industry is very attractive (4)
4 - If the threat is very low (Very
Attractive)
3 - If the threat is low (Attractive)
2 – If the threat high (Unattractive)
1 – If the threat is very high (Very
Unattractive)
1. Bargaining Power of Supplier 4 3 2 1

If the If the If the threat If the threat
threat is threat is high is very high
very low low
In terms of availability and number of
suppliers.
i.e, if there is limited number of
suppliers, then the threat is very high,
therefore the industry is very
unattractive (1)
Attractive)
Unattractive)
2. Bargaining Power of 4 3 2 1
Consumer If the If the If the threat If the threat
threat is threat is high is very high
very low low
In terms of number of consumers
i.e, if there are few buyers and many
sellers then the threat is very high
therefore the industry is very
unattractive (1)
Attractive)
Unattractive)

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APPENDIX B
FINANCIAL PLANS AND SCHEDULES
MARKETING EXPENSE
Table 33: Marketing Expense
SUPPLIES
Equipment Number Cost Cost
PHP PHP
1. Office Desktop 18 940,500.00 940,500.00
2. Office Printer 2 157,000.00 157,000.00
3. Air-conditioning Unit 3 225,000.00 225,000.00
Total 23 1,322,500.00 1,322,500.00
Furnitures Number Cost Cost
4. Office Workstation 18 86,006.34 86,006.34

5. Office Chair 18 47,700.00 47,700.00
6. Office Cabinet 18 85,500.00 66,600.00
7. Equipment Shelf Rack 5 47,500.00 36,250.00
8. Office Table 2 15,100.00 15,100.00
9. Conference Room table set 1 55,580.00 45,580.00
10. Company Pantry table set 1 38,050.00 38,050.00
11. Lounge Chair set 2 12,000.00 12,000.00
Total 65 387,436.34 347,286.34

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Leasehold Improvement PHP 50,000.00 PHP 50,000.00
Table 35: Fixed Assets
PAYROLL SCHEDULE

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Table 36: Payroll Schedule
DEPRECIATION SCHEDULE
Table 37: Depreciation Schedule
LEASE
Lease Total lease
Square expense per Lease expense
expense for 5
Particulars Meter month per year years
Office
Space 135 Php 33,794.20 Php 405,530.40 Php 2,027,652.00
Table 38: Lease Expenses

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​ ​v

“OFFERING HOUSE HELP SERVICES IN ONLINE APPLICATION; A

In Partial Fulfillment of the Requirement

MARIA REBEKA YSABEL MASANGKAY

RUFFA MAE MATIAS

LIZZETTE JOIE SENOBIO

MR. ANTONIO O. YU, CPA, DBE ​

https://cdn.fbsbx.com/v/t59.2708-21/75283705_23916811610…oh=f1ec3d4f324c06b2f3e6f6c163d3de26&oe=5DC4F996&dl=1 06/11/2019, 4G30 PM

MR. BENJIE DE LEON MR. WILLIAM BALTAZAR, CPA, DBA

MR. ANTONIO O. YU, CPA, DBE ​

Accepted and approved in partial fulfillment of the requirement for the

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Figure 1: Service Strategy Flow…………………………………………..29

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The researchers would like to acknowledge the people behind the

​To everyone, thank you!

The researchers conducted a market study to answer the following

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Weight Range of Mean Category

4 3.51 – 4.00 Very attractive

3 2.51 – 3.50 Attractive

2 1.51 – 2.50 Unattractive

1 1.00 – 1.50 Very unattractive

To interpret the data effectively, the researcher will employ the

This is expressed in percent as: P = (f/N) x 100%

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DISTRICT 1 FREQUENCY PERCENTAGE

Table 2: Frequency distribution based on Age group

The conducted surveys are answered by 71% of people who are in

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​Table 3: Frequency distribution based on Gender

Table 3 shows that there are more male respondents with

1.1.3 Monthly Income/Allowance

Table 4: Frequency distribution based on Monthly Income

According to the survey, 58 of people have a monthly income of

Statement of the Problem No. 2: How do target market assessed the

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Gross Market Acceptability Rate (GMAR): ​ 89.41%

1.2 Quantity Demanded

Table 7: Frequency of Availability

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Table 8: Years of Business

Table 9: Nature of Ownership

Based on the results, there are more businesses in the industry

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Table 10: Capitalization of the Business

​Results showed that there were businesses who had their

Table 11: Weighted Mean of the Industry Attractiveness

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​As shown in the table above, the respondents were asked to

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Qualifications needed for the customer service representatives:

B. Self-control – ensure that the personnel has a great self-

C. Knowledgeable about the services. It is important for the

D. Caring. Customers are also looking for someone who

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E. A good work ethic. As with any job, personnel must have a

Figure 1 Service Strategy Flow

v

MR. ANTONIO O. YU, CPA, DBE

MR. ANTONIO O. YU, CPA, DBE

To everyone, thank you!

Table 3: Frequency distribution based on Gender

Gross Market Acceptability Rate (GMAR): 89.41%

Results showed that there were businesses who had their

As shown in the table above, the respondents were asked to

Table 18. List of Supplies each Service

The requirement of personnel for the business will be fulfilled by

Marketing Manager: manages the marketing of a business or