UpFeasibility Research

Chapter 1: Introduction

A. Introduction

At present many successful business came to be from small time business ideas from
entrepreneurship and feasibility study classes. Coffee has been a hit recently as there many
more peoples coming into cafés for their morning drink to start up their days, adding coffee
to start up the day is good but now adding a enjoyable sight of dogs playing around would
great for a sighting to begin a day. The unique selling point of the business is that it is one of
the first Cafes that will be providing a wide variety of services for dogs and cats while still
letting customers feel the café experience. Millions of people wake up and start their day
with a fresh, hot and comforting coffee. Coffee is enjoyed all over the world and all coffee
lovers would agree that a fleshly brewed coffee made from the finest beans is the best way
to enjoy a coffee. Varieties of tastes, and flavors of coffee also ,,aamake it a drink that
anyone can enjoy on ,, ,.a And the presence of cafés are very much appreciated since most
of us loves to drink coffee with our loved ones, friends and family.

The proposed business of the researchers is the "Furry Sanctuary Pet Café" which is located
at the national highway Daro, Dumaguete city. Once a customer enters the cafe, the
customer will receive a warm welcome from the employee to motivate the customer to start
their day. The inside of a menu of the café are the different types of milk teas, coffees, cakes
and pastries. this business will have two parts which is "hooman" place where the customers
will enjoy their peaceful coffee drinks and foods and the other part is the "puss n' pups" place
where the animals will be, there will be an entrance fee which cost about 200 pesos along
with the entrance fee the customers will also receive any of the beverages for free which is
milk tea and coffee to make more enjoyable for the customers as long as the customers paid
the entrance fee they can stay all they want playing with the cats and dogs in "puss n'
pups". ​Oneof the best ways to promote a new cat cafe business is by
hosting events. Cat cafes may host lectures on cat-related topics, cat and
dog-oriented meetups, movie nights with pets or pictorial sessions with
pets. Hosting events gives people a specific reason to come. Once they
experience the Furry Sanctuary Pet cafe, they’ll likely talk to family and
friends about the events as well as the services offered. A pet cafe
business can keep customers returning by offering discounted rates to
people who come frequently. Memberships that include unlimited visits is a
popular way to drive regular traffic and revenue.

The reason why the researchers start this business because it will be the first animal cafe in
dumaguete and it will benefited for both consumers and animals. The business promote pet
adoption: The amount of homeless dogs and cats is astounding. Any way that rescue homes
and shelters can promote pet adoption is a decided step in the right direction. By visiting the
dogs and cats regularly, people are more likely to develop a bond with one of them, which
increases the chances of finding a home. Pet cafes reinvent the way people connect with
shelter pets: Instead of sitting in play pens where dozens of animals romp around vying for
attention, the café element allows guests to stay for a length of time where they can observe
the other creatures in action. They can take time to connect with the dog in a way that
visiting a pen does not. Pets benefits the humans: People who live far from family, or may
have limited networks and communities and find emotional support and physical affection
from the eager cats and dogs at these cafes. Playing with animals has proven to boost the
morale, mental and emotional health of lonely individuals

B. Statement of the problem

The proponents aim to know the market profitability of the Furry Sanctuary Pet Café in
Dumaguete City, Negros Oriental the following questions were constructed
for the determination of the business feasibility

1. Is the proposed "Furry Sanctuary Pet Café of Dumaguete City” feasible in the
Management Aspect?

2. Is the proposed "Furry Sanctuary Pet Café of Dumaguete City" feasible in the Marketing
Aspect?

3. Is the proposed "Furry Sanctuary Pet Café of Dumaguete City feasible in the Technical
Aspect?

4. Is the proposed "Furry Sanctuary Pet Café of Dumaguete City” feasible in the Financial
Aspect?

5. Is the proposed "Furry Sanctuary Pet Café of Dumaguete City" feasible in the
Socio-Economic Aspect?

C. Significance of the study

The target audience of this study are:

Pet lovers t​ hat enjoy the services of sweet desserts, cold drinks and a place to study and
relax along with the companion of pets. As research says that interacting with animals is
good for our mental health at the same time a stress reliever for some people.
Students and Employed Citizens ​ that can’t spend much time on their pets because of the
lack of time at home due to school and long working hours yet they are still looking for a
place to be accompanied by pets and interact with other pet owners at the same time.

Unemployed Residents ​this study can be a potential employment opportunity for them and
eventually obtain a stable and sufficient job.

The​ ​Government ​can benefit from the different taxes such as income tax, property tax and
business tax as having more businesses can boost the income tax of our local economy.

Investors- ​if time goes by and this business idea of putting up the Furry Sanctuary Pet Café
will be a big hit and success, investors are welcome to invest in this business since they will
be aware of viability of the business they are getting involved..

Future Researchers​ this will serve as their headstart for them to start their research and
can be used as a basis to seek more references for their study.

D. Scope and Delimitation of the study

Upon conducting this study, the researchers should be well aware of their scope and
delimitation.The foundation this study is the proposed establishment of the furry sanctuary
pet cafe in national highway daro It focuses to know the marketability of the business.
This paper will include the (5) aspect of feasibility namely: management, technical,
marketing, financial and socio-economics aspects.The possible products and services is
limited to cakes, pastries, coffee, milk teas for the customers and pet owners. The Furry
Sanctuary Pet Café will only limit their animals to dogs and cats which the customers can
feed the pets and to have a time filled with excitement, relaxation and companionship but we
will not allow borrowing of the pets beyond the premises of the cafe, on the other hand the
services that will not be offered are meal dishes, selling of pets, grooming of pets, training of
pets.

E. Definition of terms

Pet cafe- ​is a place where people can play and interact with various animals like cats, dogs,
rabbits etc. While they enjoy the food and drinks being offered.

Audiences- ​the target consumers that who will buy our products from "Furry Sanctuary Pet
Café"
Romp- ​the pets in Furry Sanctuary Pet Café are trying to get the attention of the customers
by making loud noises and jumping around.

Vying- ​the pets in Furry Sanctuary Pet Café is trying to compete with other pets just to be
notice by the customer.

Consumers- ​the main benefactors of the service from Furry Sanctuary Pet Café

F. Review of Related Literature

How to create and start the business

According to R. Hisrich, M. Peters and D. Shepherd the authors of the book entitled
Entrepreneurship 7th ​7th edition stated that being an entrepreneur takes lots of skills based
on the belief that being creative and agile will help you and your company thrive or being
skeptical person who nonetheless, is more than willing to give it a try. In either case,
experience is the best teacher. Learning how to be more creative is like learning any skill
you gain. You gain expertise over time. Starting small can gain with skepticism among your
co-workers and your own uncertainty. Begin by trying some strategies of your own or with a
few colleagues. By practicing creative techniques and attitudes, you’ll surely gain the needed
confidence and skill to build a company that includes everyone in it's creative run.
Remember the goal is always to designate the creativity of each and everyone in your
company.

Financing the new business

In financing a new business, there are 2 types of financing that needs to be considered;
debt financing and equity financing. Debt financing is a financing method involving an
interest bearing instrument, it requires the entrepreneur to pay back the amount of funds
borrowed as well as a fee expressed in terms of the interest rate. There can also be an
additional fee, sometimes an additional fee sometimes, referred to as points, for using or
being able to borrow the money. It's counterpart is the Equity financing does not require
collateral and offers the investors some form of ownership position in the venture. The
investors shares in the profit of the venture, as well as any disposition of it's assets on a pro
data basis based on the percentage on the business owned. (Hisrich et.al 2008)

Ethics and social responsibilities of an entrepreneur

The life of an entrepreneur is not easy being an entrepreneur must be capable of taking risk
when it comes to his or her capital in order to sell and deliver products and services while
expending greater energy than the average businessperson in order to innovate. In the face
of daily difficulties and situations the possibility exist that the entrepreneur will establish the
balance between ethical exigencies, economic expediency, and social responsibility. (Hisrich
et.al 2008)

Understanding the costumers

According to a book by Robert Christie Mill entitled restaurant management​ 2nd edition,​
says that the best way to understand the customers is by first categorizing the market, this
can be relevant in a sense that makes thinking of food service and industries as being
arranged in 3 general categories: the captive market, mass market and status market. It is
easier this way because the food industry will be recognized as to which market it caters it's
services to. There is an indication that traditional complaints about institutional food have
less to do with the food and more to do with the way the food is served and the lack of
control the customers have in the process.

Sanitation and food safety

It is as important to prepare existing employees for the new hire as vice versa. Employees
may be suspicious of new hires and will wonder if and how a new employee will affect them
and their job. This important section aims to make new employees feel like they belong.
There is a danger in exposing the new hire to too much information over a short period of
time. For a new employee, the first day is especially stressful: dealing with a work
environment, employees, supervisors, and customers who are different. To combat potential
problems of information overload, employees are given much of the information in writing in
the form of an employee handbook They are then asked to sign a declaration indicating that
they have received this information. In this way the company protects itself against future
employee. (Robert Christie Mill 2002)

Review of Related Studies

Philippine coffee traces it roots from the Highlands of Lipa City. In the 1800s,coffee was
brought to the Philippines; the seedlings were planted by the first settlers of the area, the
Macasaet clan. The volcanic soil, low temperature and cultivation practices of the Lipenos
brought about a unique coffee, Kapeng Barako, an aromatic, full-bodied strong-flavored
coffee that was distinctively Filipino. This passion for great coffee was continued by JoseH
Mercadoandhisfamily. Direct descendants of the Macasaet clan. Joe. as he is known by his
friends and colleagues with the humblest of beginnings.Café de Lipa's passion for coffee
runs deep toe in its ancestors' commitment to great coffee. They continued on with a love for
the magical brew, which still bears the name Kapeng Barako. (Ricca R. 1999)
Hudson and Hudson (2004) provide an interesting and insightful article on the act of the
world coffee economy on the Mexican state of Chiapas. This article takes an anecdotal and
local approach in its reporting on the impact of the world coffee market on this poor region of
Mexico. One of the persistent problems in the world coffee market is the fact that only a very
small proportion of the retail price accrues to growers. This problem is further examined later
this paper. This artiin cle also considers the phenomenon of "fair trade" coffee. That is,
coffee which is grown and sold through channels which afford the growers themselves a
greater share of the final market price of the coffee. However, the impact of fair trade was
not within the primary scope of this study but can be seen to have a growing influence on
coffee production patterns.

G. Research Methodology
​i. Research Instrument

Survey Questionnaires ​will be used to know the pulse or the demand of the people, to
know the marketability of this proposed business and to identify a consumer’s desire and
willingness to pay the price for the services offered by the business venture.

Interviews​ the researchers plan to conduct an that will be beneficial when it comes to
inquiries.

Books and Online Articles ​that will help provide a strong foundation for the study that will
solidify the information.

​ ii. Respondents of the Study

The study gives more importance to those people who love the companionship of pets and
the cafe experience all in one specially the residents of Barangay Daro Dumaguete City. The
researchers are planning to conduct a survey to random students, unemployed workers and
nearby residents.
Chapter II: Management Aspect

A. Project Schedule

A Conduct Feasibility Study

During this period, the proponents will conduct a study about the
proposed business and will be able to investigate whether the business is
viable or not. In order to examine the business viability, the proponents
will gather data with the use of various instruments and techniques such as questionnaires,
interviews and information from legit websites, books, journals and other sources of
essential data with regards to the study January 30 2020 – February 29 2020

B Putting up Equity
Capitalization is crucial in establishing a business as the business will not be
materialized without it. Finances of the proposed business must be planned wisely during
the period. The proponents will contribute equally and ample time is given in order to
complete the amount needed for the operation of the business. The proponents agreed to
contribute
P50,000 at the end of the April.
March 1 2020 – March 14 2020

C Registration All the legal procedures and requirements for the start of the
business must be accomplished during this period. Securing business permits from
Municipal or City Government, Security and Exchange Commission (SEC), Bureau of
Internal Revenue (BIR), Department of Trade and Industry (DTI), Department of Labor and
Employment (DOLE), Social Security System (SSS) and Philippine Health Insurance
Corporation (Phil Health) must be completed.

March 15 2020 – April 15 2020

D Plant Rental and Renovation

During this period, the proponents are going to locate the proposed
Business which is in National road, daro highway, Dumaguete city The existing space there
is widely available for making a moderate business it is a three story building but we only
rent the ground floor plus the mezzanine. the proponents
assumed to spend in leasing the facility for a total cost of P100,000 per
month. Refurbishing the leased space will come up with putting up of
tarpaulins and posters.
April 16 2020 – April 30 2020

E Canvassing and Acquiring of Equipment For this duration, the proponents will
start to canvass and acquire
Equipment that is needed for making the product
May 1 2020 – May 20 2020

F Canvassing and Purchasing of Raw Materials The proponents will examine

properly the amounts of raw materials
in order to acquire the ingredients at a lower cost. Searching for suppliers
is also taken into consideration in order to avoid negative fluctuations of the prices of raw
materials needed.
May 21 2020 – May 31 2020

G Hiring and Training of Employees

Selection of the qualified applicants will be done in this period. After
being qualified, orientations will be given to employees to have knowledge regarding the
business. Preparations such as the procedures and control
in the manufacturing of the product, handling of cash and the right
approach to customers will be taught to employees in order to build up
their confidence and increase productivity that will help them sustain
motivation in their current state, as well as in the future. There are also
factors to consider that significantly influences the employees on how they
will maintain a positive impression in the working environment by
recognizing their hard works and advocating balance in life and work.
Safety procedures will be extensively employed to assist the employees
with working safely. June 1 2020 – June 20 2020

H Promotional Campaign
Since the setting up of the business is nearly approaching, this is
the best time to endorse the product. Having enough time to notify people
about the product by giving leaflets or brochures, posting through social
media platforms and blog sites, and informing the public verbally will make the business
known. TheThe goal of the proponents is to make the product well-known in
order for people to recognize and buy the product.
June 21 2020 – June 30 2020
I Start of Normal Operation
After accomplishing all the necessary requirements, the business
will start to operate. Continuous promoting of product is still needed and
meeting the demands of the customers is to be obtained for the
customers' satisfaction.
July 13 2020 – on going

B. Form of business ownership

The proposed furry sanctuary pet cafe have agreed to organize the study as a form of
partnership-general partnership. According to Investopedia 2018 General Partnership is an
arrangement wherein two or more individuals agree to share in all assets, profits and
financial and legal liabilities of a jointly-owned business structure. Generally, the partners'
liability will be in proportion to the amount that they contributed to the partnership(Wonder
Legal, 2019).

The partnership will be composed of two (2) equally passionate individuals with different
interest but shares the same vision and mission for the success of the business.

Jhsan Y. Suelto​, a single Filipino citizen of legal age from Talay, Dumaguete City. He is a
well trusted and long time friend of the second proponent, who is interested, who is
interested in managing the Furry Sanctuary Pet Cafe, interior designs and the well balanced
diet of the pets. He will be investing his own personal savings in building the said proposal,
and will be tasked to be the operational manager of the business.

Franz Anthony Q. Go​, a single Filipino citizen of legal age from Bantayan, Dumaguete City.
He is a loyal friend of the first proponent. He is interested in making the floor plan for the
cafe and pet corner, in recording, analyzing and interpreting financial statements. He will be
investing his personal savings in the business and wil help in building the proposal in terms
of managing the renovation of the business, and will be tasked to be the financial manager
of the business.

C. Internal Organization

i. Job analysis

1. Job Title
2. Job Qualifications
3. Job Specifications
Chapter III: Marketing Aspects

D. Marketing Analysis
i. How will your product/services be successful?
ii. What will affect the success of your project

E. Opportunities
i. What special characteristics of your product/business?

F. Marketing Aspects
i. Threats
What can be some problems encountered by the business?

ii. Strengths
How can your company compete with others?

iii. Weaknesses
What can be the loopholes of your product or business?

iv. Demand Analysis

Why will the consumers patronize your product?
Are the consumers willing and have the capability to pay for the
product/service?

v. Supply Analysis
Who and where will your supply come from?
Will there be enough supply to cater to your demand?

Chapter IV: Technical Aspect

a. Technical Specification of the project

i. What is the main product?
ii. What is it made of?
iii. Description of the package?

b. (Raw) Material
i. How are the (raw) materials bought/gathered?
ii. Where do the materials come from?
iii. Why do you buy it from there?

c. Buildings and Facilities

i. Where will the operation of the business be?
 ii. Is it rented or owned? How much?
iii. Will it be bought or renovated? By how much?

d. Office and Plant Location

i. Where exactly the location be?

Chapter V: Financial Aspect

a. Statement of Assumption
i. Account payables are paid next month after the purchases

b. State the cash flow of the business

i. Capital
ii. Expenses
iii. Projected (Expected Income)

Chapter VI: Socio-Economic Aspect

a. Employment and income

i. Will you hire workers from the vicinity of the office/plant?

b. Social Implications
i. is your business helping income for the community?
ii. is your business cultivating creativity of the people?