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BLOSSOMING BUDS FLOWER SHOP

MEMBERS:

ANTONIO JOSE DION S. JAVILLO
SHERA C. ARCENAS
ROBERTSON G. DIEGO
RANILA ANN O. VICERA

BLOSSOMING BUDS FLOWER SHOP

A project Feasibility Study presented to

The faculty of the College of Business Administration
Hercor College

In Partial fulfillment of the requirements in
BMGT 200 – Business Research

Members: Antonio Jose Dion S. Javillo Shera C. Arcenas Robertson Diego
Ranila Ann o. Vicera

BSBA – 4A
March 2012

ACKNOWLEDGEMENT This Feasibility Study was made possible by the guidance, supervision, cooperation and participation of the following: To Almighty God who always look up and secure the safety of the prepares in doing this project. To our parents who always guide and give words of wisdom to inspire us in doing our best in preparing the feasibility study as well as giving their both financial and emotional support To our beloved intelligent instructress and business plan Professor, Sandy Minez, who has greatly shared her knowledge to us with patience and diligence in helping us meet the necessary works for the completion of our feasibility Study.
To Ms. Alona Doce our class adviser,for giving her support and some formulas used in the said study and also to our Department Head Mrs. Agnes D. Buday. And to all the Herccor Family.
To the preparers, they who have given a lot of efforts and consumed so much time to make the completion of the feasibility study possible and successful within the given time. Together, we sincerely acknowledge and give thanks the person/s mentioned above who have brought the success of doing this Feasibility Study. We are very grateful for this wonderful accomplishment.

TABLE OF CONTENTS

* EXECUTIVE SUMMARY..................................................6 * Name of Principals * Business Name * Location * Business Description and Goals

* INTRODUCTION...........................................................8

* Marketing Aspects.......................................................10 * Demand * Supply * Existing Market Situation * Projected Sales

* MARKETING PLAN.......................................................12 * Price and Services

* TECHNICAL ASPECTS...................................................15

* BUSINESS PROCESS.....................................................17

* BUSINESS FLOW CHART..............................................18

* MACHINARY AND EQUIPMENT...................................19

* TOOLS.........................................................................19

* FURNITURE & FIXTURES..............................................19

* SUPPLIES....................................................................20

* UTILITIES.....................................................................20

* PURCHASE AND INVENTORY.......................................20 * BUILDING STRUCTURE.................................................26

* ESTIMATED RENOVATION COST..................................26

* ORGANIZATIONAL ASPECT...........................................27

* ORGANIZATIONAL STRUCTURE....................................29

* ORGANIZATIONAL CHART............................................29

* JOB ANALYSIS..............................................................30

* COMPENSATION AND FRINGE BENEFITS.......................33

* FINANCIAL ASPECT.......................................................34

* FINANCIAL ASSUMPTION.............................................35

* TOTAL PROJECTED COST...............................................36

* INCOMESTATEMENT.....................................................37

* CASH FLOW STATEMENTS.............................................38

* STATEMENT FOR CHANGES IN PARTNERS EQUITY.........39

* STATEMENT OF FINANCIAL POSITION...........................40

* SCHEDULE OF DEPRECIATION.......................................41

* FINANCIAL ANALYSIS....................................................42

* RETURN ON INVESTMENT.............................................43

* RATE OF RETURN ON SALES.........................................43

* GROSS PROFIT RATIO...................................................44 * SOCIO – ECONOMIC ASPECT........................................45

EXECUTIVE SUMMARY *
EXECUTIVE SUMMARY
Name of Principals: Antonio Jose Dion S. Javillo Shera C. Arcenas Robertson Diego Ranila Ann o. Vicera
Business Name: “BLOSSOMING BUDS FLOWER SHOP”
Location:
The geographic location of our business is located in NHA Homesite, Lawaan, Roxas City. This is an ideal location since at the back of the flower shop is a vacant lot were local flowers and plants could be planted, which will be used in the operation of our business. This location is deemed appropriate because of its accessibility to the customers.
Business Description and Goals: Our goal is to operate a small flower shop that will provide a wide selection of different flowers. Specifically, the flower shop, which is registered under the business’ name “Blossoming Buds Floral Shop”. This business will generate substantial profit margins and sales that will allow profitable revenue for the community throughout the course of the year.

The purpose of starting this business is to generate profit by providing superb customer satisfaction. This flower shop is committed to operate with a constant enthusiasm for giving service, being open to implementing new ideas and maintaining a willingness to adapt to evolving market condition.

Introduction

Introduction:
Floristry is the general term used to describe production, commerce and trade in flowers. It encompasses flower care and handling, floral design or flower arranging, merchandising, and display and flower delivery. Wholesale florists sell bulk flowers and related supplies to professionals in the trade. Retail florists offer fresh flowers and related products and services to consumers.

Floristry as a term can refer to the cultivation of flowers as well as their arrangement, and to the business of selling them. Much of the raw material supplied for the floristry trade comes from the cut flower industry. Florist shops, along with online stores are the main flower-only outlets, but supermarkets, garden supply stores and filling stations also sell flowers.

Floral Design or floral arts is the art of creating flower arrangements in vases, bowls, baskets or other containers, or making bouquets and compositions from cut flowers, foliages, herbs, ornamental grasses and other plant materials. Often the terms "floral design" and "floristry" are considered synonymous. Florists are people who work with flowers and plants, generally at the retail level. Flowers and plants so they will remain fresh as long as possible, and would be desirable for purchase, which also involves knowledge of customers' requirements and expectations. Ability to create a variety of floral designs such as wreaths, bouquets, corsages, boutonnières/'buttonholes', permanent arrangements and other more complicated arrangements is also important.

The flowers sold in florist shops typically represent the varieties abundantly available in the season but also include blossoms flown in from around the world. Basic varieties in temperate latitudes include roses, tulips, irises, orchids and lilies. Fashion sometimes plays a role in floristry; what is considered the flower that everyone needs to have today can change very quickly.
The floristry business has a significant market in the corporate and social event world as flowers play a large part in the decor of special events and meetings. Centerpieces, entryways, reception tables, bridal bouquets, weddings and stage sets and only a few examples of how flowers are used in the business and social event settings.

Marketing Aspects

Marketing Aspects: Demand There are more or less (10) hotels in Roxas City, (4) colleges and (2) universities, (2) major churches, surrounding the proposed location of the flower shop. The target markets are hotels, event planners, students and other customers who are in need for flowers and flower arrangements during special occasions. The partners decided to put up a business that caters to the needs and wants of customers for high quality flowers and flower arrangement in an affordable and reasonable price.

Supply There is no existing floral shop that is personalized, convenient, and efficient in service. There are only flower vendors and they are very few.

Existing Market Situation: At present there are flower vendors who are located at the City Plaza. They do not have any promotion offered to customers for they are only small time vendors and have little capital to spend on their promotion. They only cater to walk-in customers. They cannot cater very well to the needs of their clients because they lack of skilled artist and florist. These flower vendors can be a threat to the proposed business.
Blossoming Buds Floral shop total sales projections for five (5) years are as follows:

Projected Sales Blossoming Buds will increase in sales due to quantity demanded. On the 2nd year and 3rd year the estimated demand will increase to 5% and on the 4th year and 5th year our estimated demand will increase up to 10%.
Blossoming Buds Floral shop total sales projections for five (5) years are as follows:
Table 1 YEAR | PERCENTAGE | PROJECTED SALES | 1ST YEAR | | P 828,360.00 | 2ND YEAR | 5% | P 869,778.00 | 3RD YEAR | 5% | P 913,267.00 | 4TH YEAR | 10% | P 1, 004, 594.00 | 5TH YEAR | 10% | P 1, 105, 053.00 |

Computations for the first year of operation:
Assumed sales per day x 30 days x 12 months
P 2,301.00 x 30 x 12 = P 828,360.00

MARKETING PLAN: Blossoming Buds Floral shop will provide high quality flowers and flower arrangement in a very convenient yet a very reasonable prices. “Classic and Fresh” is the trademark of the business. Its vision-mission is to be the no.1 flower shop in Roxas City and in the province of Capiz. Clients can choose from different varieties of flowers and artistic flower arrangements that Blossoming Buds Floral shop offers. E- Commerce and personalized cards will be used as a tool for promotion and advertising. Referrals, word of mouth and artistic product display will supplement our promotion program.

Table 2. PRICE AND SERVICES
Flowers
ITEM | SUPPLIERS PRICE | SALES PRICE | Lady Mumps | 500 | 600 | White Rose | 200 | 300 | Red Rose | 200 | 300 | Pink | 200 | 300 | Baby’s Breath | 300 | 400 | Carnation | 400 | 500 | Tulips | 1000 | 1100 | Leaves | 300 | 400 | Calla Lily | 275 | 375 | Orchids Long Stem | 250 | 350 | Chrysanthemum | 500 | 600 | Buttons Mumps | 240 | 340 | Spider Mumps | 240 | 340 | Mixed Mumps | 240 | 340 | Anastasia | 240 | 340 | Antorium – Red | 250 | 350 | Wonder White | 100 | 200 | Taiwan Yellow | 160 | 260 | Star Gazer | 400 | 500 | Gerbera | 300 | 400 | Gladiolas | 180 | 280 | States | 200 | 300 |

*The quantity of orders varies depending on occasions (like valentines, graduation, all saint/souls day) and demand on the types of flowers.

TECHNICAL ASPECTS

TECHNICAL ASPECTS The Blossoming Buds Floral shop strategic location makes it accessible to customers such as hotel managers, event planners and church goers. Blossoming Buds Floral shop will sell fresh flower and provide services such as flower arrangement. Free consultations for event planners as part of additional services will be available from Monday to Friday. Our shop is a 130 square meters of old building that we will only renovate. The Blossoming Buds Floral shop operation starts with getting orders from hotels and other customers like caterers and event planners. Flowers will be delivered everyday to target buyers.
TECHNICAL LAYOUT OF BLOSSOMING BUDS FLOWER SHOP

BUSINESS PROCESS

The blossoming Buds Flower Shop will start to operate on the month of April in the 2012. It will serve the public from 8am to 6pm for the whole week.
Blossoming Buds will order the flowers from Baguio and Cebu, after receiving the ordered flowers we will wash and arrange them properly to be an exhibit design for the customers to choose The customers can choose freely what kind of design they want that satisfy them.

Business Flow Chart
Pick-up Orders/ Delivery

Orders

Payment to Cashier
Buyers
Direct Purchase of Walk-in Clients
Blossoming Buds Flower shop

Machinery/Equipment/Furniture & Fixtures/Utilities Requirement

Table 3 Machinery and Equipment
Machinery Quantity Unit Cost Total Cost Aircon 1 18,600 18,600 Fire Extinguisher 2 3,600 7,200 Computer 1 20,000 20,000 Freezer 1 30,000 30,000 Total: P 75,800 Table 4 Tools Scissors 5 100 500 Plant Cutter 3 150 450 Knife 3 95 285 Spray bottle 5 50 250 P 1, 485 Table 5 Furniture and Fixture Long table 1 3,000 3,000 Chairs 6 300 1,800 Store Cabinet 1 1,000 1,000 Flower Cabinet 2 3,000 6,000 Flower Stand 5 2,000 10,000 Computer Table 1 1,500 1,500 P 23,300

Table 6 Supplies Items Quantity Unit Price Amount Pots 30pcs 45 1,350 Papers 5 bundle 25 125 Vases 15pcs 156 2,340 Abaca wrappers 5 yards 400 2,000 Gift wrappers 5 meter 300 1,500 Floral foam 5 boxes 500 2,500 Floral wire 35kls. 35 1,225 Ribbons 30 pcs. 28 840 P 11,880 Table 6 Utilities

Electricity (Capelco) 1000/month 12,000
Water (MRWD) 500/month 6,000
Telecommunication (globe) 899/month 10,788 P 28,788 Purchases and Inventory For the first year of operation, purchases will be estimated at P 472,500.00; second year P 496,325.00; third year P 520,650.00; fourth year P 572,155.00; fifth year P 629,560.00.

Purchases – 1st Year

Qty. per year | Item | Unit Cost | Total | 72 dozen | Lady Mump | 500 | 36,000.00 | 60 dozen | White Rose | 200 | 12,000.00 | 96 dozen | Real Rose | 200 | 19,200.00 | 60 dozen | Pink Rose | 200 | 12,000.00 | 60 kilo | Baby’s Breath | 300 | 18,000.00 | 48 pcs. | Carnation | 400 | 19,200.00 | 24 dozen | Tulips | 1000 | 24,000.00 | 60 kilo | Leaves | 300 | 18,000.00 | 60 dozen | Calla Lily | 275 | 16,500.00 | 120 dozen | Orchids LS | 250 | 30,000.00 | 60 bundle | Chrysanthemum | 500 | 30,000.00 | 96 dozen | Button Mumps | 240 | 23,040.00 | 96 dozen | Spider Mumps | 240 | 23,040.00 | 96 dozen | Mixed Mumps | 240 | 23,040.00 | 72 dozen | Anastasia | 240 | 17,280.00 | 120 dozen | Antorium Red | 250 | 30,000.00 | 240 dozen | Wonder White | 100 | 24,000.00 | 120 dozen | Taiwan Yellow | 160 | 19,200.00 | 60 stock | Star Gazer | 400 | 24,000.00 | 60 dozen | Gerbera | 300 | 18,000.00 | 120 dozen | Gladiolas | 180 | 21,600.00 | 72 bundles | States | 200 | 14,400.00 | Total 472,500.00 |

Purchases – 2nd year

| Items | Unit Cost | Total | 76 dozen | Lady Mump | 500 | 38,000.00 | 63 dozen | White Rose | 200 | 12,600.00 | 101 dozen | Real Rose | 200 | 20,200.00 | 63 dozen | Pink Rose | 200 | 12,600.00 | 63 kilo | Baby’s Breath | 300 | 18,900.00 | 50 pcs. | Carnation | 400 | 20,000.00 | 25 dozen | Tulips | 1000 | 25,000.00 | 63 kilo | Leaves | 300 | 18,900.00 | 63 dozen | Calla Lily | 275 | 17,325.00 | 126 dozen | Orchids LS | 250 | 31,500.00 | 63 bundle | Chrysanthemum | 500 | 31,500.00 | 101 dozen | Button Mumps | 240 | 24,240.00 | 101 dozen | Spider Mumps | 240 | 24,240.00 | 101 dozen | Mixed Mumps | 240 | 24,240.00 | 76 dozen | Anastasia | 240 | 18,240.00 | 126 dozen | Antorium Red | 250 | 31,500.00 | 252 dozen | Wonder White | 100 | 25,200.00 | 126 dozen | Taiwan Yellow | 160 | 20,160.00 | 63 stock | Star Gazer | 400 | 25,200.00 | 63 dozen | Gerbera | 300 | 18,900.00 | 126 dozen | Gladiolas | 180 | 22,680.00 | 76 bundles | States | 200 | 15,200.00 | Total 496,325.00 |

Purchases – 3rd Year

| Items | Unit Cost | Total | 80 dozen | Lady Mump | 500 | 40,000.00 | 66 dozen | White Rose | 200 | 13,200.00 | 106 dozen | Real Rose | 200 | 21,200.00 | 66 dozen | Pink Rose | 200 | 13,200.00 | 66 kilo | Baby’s Breath | 300 | 19,800.00 | 53 pcs. | Carnation | 400 | 21,200.00 | 26 dozen | Tulips | 1000 | 26,000.00 | 66 kilo | Leaves | 300 | 19,800.00 | 66 dozen | Calla Lily | 275 | 18,150.00 | 132 dozen | Orchids LS | 250 | 33,000.00 | 66 bundle | Chrysanthemum | 500 | 33,000.00 | 106 dozen | Button Mumps | 240 | 25,440.00 | 106 dozen | Spider Mumps | 240 | 25,440.00 | 106 dozen | Mixed Mumps | 240 | 25,440.00 | 80 dozen | Anastasia | 240 | 19,200.00 | 132 dozen | Antorium Red | 250 | 33,000.00 | 265 dozen | Wonder White | 100 | 26,500.00 | 132 dozen | Taiwan Yellow | 160 | 21,120.00 | 66 stock | Star Gazer | 400 | 26,400.00 | 66 dozen | Gerbera | 300 | 19,800.00 | 132 dozen | Gladiolas | 180 | 23,760.00 | 80 bundles | States | 200 | 16,000.00 | Total 520,650.00 |

Purchases – 4th Year

| Items | Unit Cost | Total | 88 dozen | Lady Mump | 500 | 44,000.00 | 73 dozen | White Rose | 200 | 14,600.00 | 117 dozen | Real Rose | 200 | 23,400.00 | 73 dozen | Pink Rose | 200 | 14,600.00 | 73 kilo | Baby’s Breath | 300 | 21,900.00 | 58 pcs. | Carnation | 400 | 23,200.00 | 29 dozen | Tulips | 1000 | 29,000.00 | 73 kilo | Leaves | 300 | 21,900.00 | 73 dozen | Calla Lily | 275 | 20,075.00 | 145 dozen | Orchids LS | 250 | 36,250.00 | 73 bundle | Chrysanthemum | 500 | 36,500.00 | 117 dozen | Button Mumps | 240 | 28,080.00 | 117 dozen | Spider Mumps | 240 | 28,080.00 | 117 dozen | Mixed Mumps | 240 | 28,080.00 | 88 dozen | Anastasia | 240 | 21,120.00 | 145 dozen | Antorium Red | 250 | 36,250.00 | 292 dozen | Wonder White | 100 | 29,200.00 | 132 dozen | Taiwan Yellow | 160 | 21,120.00 | 73 stock | Star Gazer | 400 | 29,200.00 | 73 dozen | Gerbera | 300 | 21,900.00 | 145 dozen | Gladiolas | 180 | 26,100.00 | 88 bundles | States | 200 | 17,600.00 | Total 572,155.00 |

Purchases – 5th Year

| Items | Unit Cost | Total | 97 dozen | Lady Mump | 500 | 48,500.00 | 80 dozen | White Rose | 200 | 16,000.00 | 129 dozen | Real Rose | 200 | 25.800.00 | 80 dozen | Pink Rose | 200 | 16,000.00 | 80 kilo | Baby’s Breath | 300 | 24,000.00 | 64 pcs. | Carnation | 400 | 25,600.00 | 32 dozen | Tulips | 1000 | 32,000.00 | 80 kilo | Leaves | 300 | 24,000.00 | 80 dozen | Calla Lily | 275 | 22,000.00 | 160 dozen | Orchids LS | 250 | 40,000.00 | 80 bundle | Chrysanthemum | 500 | 40,000.00 | 129 dozen | Button Mumps | 240 | 30,960.00 | 129 dozen | Spider Mumps | 240 | 30,960.00 | 129 dozen | Mixed Mumps | 240 | 30,960.00 | 97 dozen | Anastasia | 240 | 23,280.00 | 160 dozen | Antorium Red | 250 | 40,000.00 | 321 dozen | Wonder White | 100 | 32,100.00 | 145 dozen | Taiwan Yellow | 160 | 23,200.00 | 80 stock | Star Gazer | 400 | 32,000.00 | 80 dozen | Gerbera | 300 | 24,000.00 | 160 dozen | Gladiolas | 180 | 28,800.00 | 97 bundles | States | 200 | 19,400.00 | Total 629,560.00 |

BUILDING STRUCTURE: The Blossoming Buds Floral Shop will utilized a family owned stall made of concrete construction materials. The cost of renovation which comprises labor, paint and other necessary construction materials is estimated at the amount of
P 15, 480. Signage is included which will be use to attract customers and passers-by. The following. are the list of materials to be used in renovation.

Table: 7. ESTIMATED RENOVATION COST Items | Quantity | Unit Cost | Total Cost | 3/4x4x8 Plywood | 4 | Php.900.00 | Php.3,600.00 | 1/4x2x8 Flat Molding | 5 | 40.00 | 200.00 | White Glue | 2 | 155.00 | 310.00 | Drawer Guide 9” | 3 | 65.00 | 195.00 | Cabinet Handle | 10 | 60.00 | 600.00 | 1/8 Clear Glass | 50 | 35.00 | 1,750.00 | Silicon | 5 | 125.00 | 625.00 | Painting Works | | | 4,500.00 | Glass Installer | | | 1,200.00 | Carpenter | | | 2,500.00 | | | | Php.15,480.00 |

ORGANIZATIONAL ASPECTS

LABOR REQUIRED: Blooming Buds Floral Shop need 4 person. The Manager/Cashier will assist the needs of the customers and record the daily transaction. The salesperson will receive P 4,000.00 monthly and will receive the mandated benefits. The Florist will receive a salary of P 3,000.00 monthly and will receive benefits. The Sales clerk will receive a salary of P 3, 000.00 monthly and will receive benefits.
The Manager is the one who supervise and control daily transactions of the business. As a cashier, he is responsible for accepting payments from the customers.

ORGANIZATIONAL ASPECT: Blooming Buds Floral Shop will be a partnership engaged in flower service business. The advantages of this type of business organization are as follows:

* It is easier to organize. * It is more personal and informal. * It brings greater financial feasibility to the business. * It combines special skills, expertise and experience of the partners. * It offers relative freedom and flexibility of action in decision making.
All of the four (4) partners will contribute P 50,000.00 each for the total of P 200,000.00 as initial capital.

ORGANIZATIONAL STRUCTURE: An organizational chart is presented to show the important function and their respective relationship, the channels of supervision and the authority of each employee who is charge of each function.

Blooming Buds Floral Shop
Organizational Chart

ANTONIO JOSE DION S. JAVILLO
MANAGER

SHERA C. ARCENAS
CASHIER

RANILA ANN O. VICERA
FLORIST

ROBERTSON G. DIEGO
SALESMAN

JOB ANALYSIS:

Position Title: Manager
Report to: Partners
Responsible for: Supervising and controlling the operations of the business.

QUALIFICATIONS: 1. A graduate of any Business related course. 2. With pleasing personality. 3. At least 22 years of age. 4. Must be honest, loyal and responsible.

DUTIES AND RESPONSIBLE: 1. Responsible for planning, staffing, directing and controlling the business transactions and activities. 2. Review the financial status of the business. 3. Responsible for the implementing of policies of the firm. 4. Responsible for any shortage 5. Deposit the cash collections to the bank. 6. Responsible for the daily cash report.

SALARY-P 4,000.00

Position Title: Cashier
Report to: The Manager
Responsible for: Accepting payments from customers.

QUALIFICATIONS: 1. Must have knowledge in basic mathematics. 2. With pleasing personality. 3. At least 20 years of age. 4. Must be responsible.

DUTIES AND RESPONSIBILITIES: 1. Responsible in keeping cash. 2. Receives all cash transactions. 3. Prepare daily cash report.

SALARY-P 2,000.00

Position Title: Sales Personnel
Report to: The Manager
Responsible for: Assisting the needs of the customers.

QUALIFICATIONS: 1. A graduate of at least two year course. 2. With pleasing personality. 3. Must be 18 years of age or above. 4. Must be honest and responsible on his/her duties.

DUTIES AND RESPONSIBILITIES: 1. Assist the needs of the customer. 2. Responsible for cleanliness and arrangement of the store.

SALARY-P 2,000.00

Position Title: Florist
Report to: The Manager
Responsible for: Flower Arrangement

QUALIFICATIONS:
1. A graduate of any course.
2.With pleasing personality.
3. Must be 18 years of age or above.
4. Must be honest and responsible on his/her duties.
5. Must be artistic and creative in flower arrangement.

DUTIES AND RESPONSIBILITIES:
1. Assist the needs of the customer.
2. Responsible for cleanliness and arrangement of the store.

SALARY-P 2,000.00 COMPENSATION AND FRINGE BENEFITS: The salary increase will depend on the degree of responsibility. The employees will receive benefits such as Social Security Sysstem (SSS), and PHILHEALH.

FINANCIAL ASPECT

FINANCIAL ASPECT
Financial Assumptions: 1. Renovations with an estimated life of 10 years will be depreciated using the straight line method. 2. Equipment, furniture and fixture with an estimated life of 10 years and will be depreciated using the straight line method. 3. The store supplies is estimated of Php. 11,880.00 with an estimated increase of 2 % every year. 4. Working days shall be 312 days a year. 5. Operating hours per year shall be 3,744 hours. 6. All finished products are assumed to buy by the customers everyday. 7. Selling price of the product shall be based on the existing market price. 8. Sales shall be partly on cash and on account. 9. The salaries expense with increase by 3% every 3 years. 10. Electricity expense shall be P 12, 000 a year and increase by 2% every year. 11. Water expense shall be P 6, 000 a year and maybe increase by 2% every year. 12. Telecommunication expense shall be P 10, 788 a tear may increase by 2% every year. 13. SSS, Philhealth, Pag ibig fund contribution will be based on the salaries and the premium contribution schedule for members of employed sector. 14. Each partners can withdraw their shares, but must not exceed to Php. 50,000 within one year. 15. Sales for the first year of operation is P 828, 360, and may increase 5% on the second and third year and 10% on the fourth and fifth year due to market growth and product and service acceptance.

TOTAL PROJECTED COST Fixed investment: Equipment 75,800 Furniture and Fixture 23,300 Tools 1,485 Renovation 15,480 Total fixed investment 116,065 PRE OPERATING EXPENSE Business plan preparation 1,500 License registration 2000 Total pre operating expense 3,500 WORKING CAPITAL Inventory 11,099 Salaries expense 120,000 Water expense 6,000 Electricity expense 12,000 PhilHealth contribution 13,200 Pag – Ibig contribution 4,400 SSS contribution 13,736 Total working capital 180,435.00 TOTAL PROJECTED COST 300,000.00 TOTAL PROJECTED COST BLOSSOMING BUDS, is financed equally in which each of the four(4) partners will contribute Php. 75,000 for a total of Php. 300,000.

BLOSSOMING BUDS FLORAL SHOP
STATEMENT OF RECOGNIZED REVENUE AND EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5
Projected Sales P 828, 360 P 869, 778 P 913, 267 P 1, 004, 594 P 1, 105, 053
Less: Cost of Sales 451, 155 473, 713 497, 399 547, 139 601, 852
Gross Profit 377, 205 396, 065 415, 868 457, 455 503, 201
Less: Operating Expense
Salaries Expense 120, 000 120, 000 120, 000 123, 600 123, 600 Supplies expense 11,000 11,220 11,444.4 14, 183 14, 466
Utilities 28, 788 29, 364 29, 951 30, 550 31, 161
Philhealth contribution Exp. 13, 200 13, 200 13, 200 13, 200 13, 200
Pag-ibig contribution Exp 4, 400 4, 400 4, 400 4, 400 4, 400
SSS Contribution Exp 13, 736 13, 736 13, 736 13, 736 13, 736 Depreciation Exp 11, 458 11, 458 11, 458 11, 458 11, 458
Taxes and Licenses 2, 000
Profit before Tax 172,623 192,622 216,078 246, 328 291, 180
Less: Provision for
Income Tax (35%) 60,418.05 67,417.7 75,627.51 86, 214.8 101, 913
Net Profit 112,204.95 125,204.3 140,450.49 160, 113.2 189, 267 BLOSSOMING BUDS FLORAL SHOP
PROJECTED CASH FLOW STATEMENTS Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow From Operating Activities
Cash Received from customers P 828, 360 P869, 778 P913, 267 P 1, 004, 594 P 1, 105, 053
Payment for Salaries (120, 000) (120, 000) (120, 000) (123, 600) (123, 600)
Payment for Supplies (11,880) (12,117.6) (12,359.94) ( 14, 183) (14, 466)
Payment for utilities (28, 788) (29, 364) ( 29, 951) (30, 550) (31, 161)
Payment for Taxes and licenses (2, 000)
Philhealth contribution Exp. (13, 200) (13, 200) ( 13, 200) ( 13, 200) ( 13, 200)
Pag-ibig contribution Exp ( 4, 400) (4, 400) (4, 400) ( 4, 400) (4, 400)
SSS Contribution Exp ( 13, 736) ( 13, 736) ( 13, 736) (13, 736) (13, 736)
Payment for Income taxes (60,418.05) (67,417.7) (75,627.51) (86,214.8) (101,180)
Payment for Purchases (474, 900) (498, 645) (523, 577) (575,935) (633,528)
Net Cash Flow from Operating Expense 99,037.95 110,897.7 120,415.55 142,775.2 169,782

Cash flow from Investing Activities
Purchase of Equipment ( 75, 800)
Purchase of Furniture and Fixtures (23, 300)
Payment for renovation (15, 480)
Net cash flow from investing activities (114, 580)

Cash flow from financing activities
Cash received from investment 300, 000
Payments for withdrawals (50,000) (50,000) (50, 000) (50,000) Net cash flow from financing activities 300, 000 (50,000) (50,000) (50,000) (50,000)

Net Cash Inflow (Outflow) 284,457.95 60,897.7 70,415.55 92,775.2 119,782
Cash Beg. Balance 284,457.95 345,355.65 415,771.2 508,546.4
Cash Ending Balance P 284,457.95 345,355.65 415,771.2 508,546.4 628,328.4

BLOSSOMING BUDS FLOWER SHOP
STATEMENT FOR CHANGES IN PARTNERS EQUITY

1st Year 2nd Year 3rd Year 4th Year 5th Year

JAVILLO: Beg. Capital Balance 75,000 103,051.2375 109,3542.3125 144,464.935 159,493.235 Add: Share in Profit 28,051.2375 30,313.075 35,112.6225 40,028.63 47,316.75 Total 103,051.2375 134,352.3125 144,464.935 184,493.235 206,809.985 Less: Withdrawal -0- 25,000 -0- 25,000 -0- End. Capital Balance 103,051.2375 109,352.3125 144,464.935 159,493.235 206,809.985

ARCENA: Beg. Capital Balance 75,000 103,051.2375 134,352.3125 144,464.935 184,493.235 Add: Share in Profit 28,051.2375 30,313.075 35,112.6225 40,028.63 47,316.75 Total 103,051.2375 134,352.3125 169,464.9325 184,493.235 231,809.985
Less: Withdrawal -0- -0- 25,000 -0- 25,000 End. Capital Balance 103,051.2375 134,352.3125 144,464.935 184,493.235 206,809.985

DIEGO: Beg. Capital Balance 75,000 103,051.2375 109,3542.3125 144,464.935 159,493.235 Add: Share in Profit 28,051.2375 30,313.075 35,112.6225 40,028.63 47,316.75 Total 103,051.2375 134,352.3125 144,464.935 184,493.235 206,809.985 Less: Withdrawal -0- 25,000 -0- 25,000 -0- End. Capital Balance 103,051.2375 109,352.3125 144,464.935 159,493.235 206,809.985

VICERA:
Beg. Capital Balance 75,000 103,051.2375 134,352.3125 144,464.935 184,493.235 Add: Share in Profit 28,051.2375 30,313.075 35,112.6225 40,028.63 47,316.75 Total 103,051.2375 134,352.3125 169,464.9325 184,493.235 231,809.985
Less: Withdrawal -0- -0- 25,000 -0- 25,000
End. Capital Balance 103,051.2375 134,352.3125 144,464.935 184,493.235 206,809.985

BLOSSOMING BUDS Statement of Financial Position As of the year ended Dec. 31 1ST YEAR 2nd YEAR 3RD YEAR 4TH YEAR 5TH YEAR CURRENT ASSETS Cash P 284,457.95 345,355.65 415,771.2 508,546.4 628,328.4 Supplies 880 1,777.6 2,693.14 2,693.14 3,693.14 Inventory 23,745 48,612 79,225.4 108,057.4 138,045.46 Total Current Asset 309,082 395,745.25 497,689.74 619,296.94 770,067 NON CURRENT ASSET Equipment 75,800 Less: Acc. Dept. 7,580 68,220 60,640 53,060 45,480 37,900 Furt. & Fix 23,300 Less:Acc Dep 2,330 20,970 18,640 16,310 13,980 11,650 Building Impt. 15,480 Less: Acc Dept. 1,548 13,932 12,384 10,800 9,216 7,632 Total Current asset 103,122 91,664 80,170 68,676 57,182 Total Asset P 412, 204.9 487,409.25 577,859.74 687,972.94 827,249 Current Liabilities -0- -0- -0- -0- -0- Partner’s Equity Javillo P103,051.2375 Arcenas 103,051.2375 Vicera - 103,051.2375 Diego- 103,051.2375 Total partner’s eqiuty P 412,204.95 487,409.25 577,859.74 687,972.94 827,249

Table 8 : Schedule of Depreciation EQUIPTMENT | QUANTITY | UNIT COST | TOTAL COST | Estimated Life | Annual Depreciation | Aircon | 1 | 18,600 | 18,600 | 10 yrs. | 1,860 | Fire Extinguisher | 2 | 7,200 | 7,200 | 10 yrs. | 720 | Computer | 1 | 20,000 | 20,000 | 10 yrs. | 2,000 | Freezer | 1 | 30,000 | 30,000 | 10 yrs. | 3,000 | | | | | | | Furniture & Fixture | CHAIR | 6 | 300 | 1,800 | 10 yrs. | P 180 | Long Table | 1 | 3000 | 3,000 | 10 yrs. | 300 | Store Cabinet | 1 | 1000 | 1,000 | 10 yrs. | 100 | Flower Cabinet | 2 | 3000 | 6,000 | 10 yrs. | 600 | Flower Stand | 5 | 2000 | 10,000 | 10 yrs. | 1,000 | Computer Table | 1 | 1500 | 1,500 | 10 yrs. | 150 | Total | 1 | 1,500 | 1,500 | 10 yrs. | P 2,330 | | Renovation Cost | | | P 15,480 | 10 yrs. | P 1,548 | Total P 11,458 |

FINANCIAL ANALYSIS Annual Cash Flow | First Year | Second Year | Third Year | Forth Year | Fifth Year | Profit | 112,204.95 | 125,204.3 | 140,450.49 | 160,113.2 | 189, 267 | Depreciation | 11,458 | 11,458 | 11,458 | 11,458 | 11,458 | Annual Cash Return | 123,662.95 | 136,662.3 | 151,908.49 | 171,571.2 | 200,725 |

PAY BACK PERIOD – the number of years for the partnership to recover their investment INVESTMENT ANNUAL CASH RETURN Annual Cash Return | Accumulation Cash Return | Year | 123,662.95 | 123,662.95 | 1 | 136,662.3 | 260,325.25 | 1 | 39,674.75 | 300,000 | 0.13 | | TOTAL | 2.13 | Therefore, the investments can be recovered for the period of 2.13 years.

RETURN ON INVESTMENT PROFIT INVESTMENT | Profit | Investment | Return on Investment | 1 | 112,204.95 | 300,000 | 0.37 | 2 | 125,204.3 | 300,000 | 0.42 | 3 | 140,450.49 | 300,000 | 0.47 | 4 | 160,113.2 | 300,000 | 0.53 | 5 | 189, 267 | 300,000 | 0.63 |

Test of Profitability – these shows the operational performance and efficiency of the project. RATE OF RETURN ON SALES – indicates the amount of net income per peso of sales or the profitability based on sales. PROFIT NET SALES | Profit | Net Sales | Rate of Return on Sales | 1 | 112,204.95 | 828, 360 | 0.14 | 2 | 125,204.3 | 869, 778 | 0.14 | 3 | 140,450.49 | 913, 267 | 0.15 | 4 | 160,113.2 | 1, 004, 594 | 0.16 | 5 | 189, 267 | 1, 105, 053 | 0.17 |

Therefore, the company’s profitability based on sales varies throughout the year or increases.

GROSS PROFIT RATIO – indicates the gross margin per peso of sales. Used in determining the adequacy of gross margin to cover operating expenses and provide profit. GROSS PROFIT NET SALES Gross Profit | Net Sales | Gross Profit Ratio | 377, 205 | 828, 360 | 0.46 | 396, 065 | 869, 778 | 0.46 | 415, 868 | 913, 267 | 0.46 | 457, 455 | 1, 004, 594 | 0.46 | 503, 201 | 1, 105, 053 | 0.46 |

OPERATING RATIO-Indicates what portion of sale is absorbed by the operating cost.

COST OF SALE + OPERATING EXPENSES NET SALES | COS+OE | NET SALES | OPERATING RATIO | 1 | 655,737 | 828, 360 | 0.79 | 2 | 677,156 | 869, 778 | 0.78 | 3 | 697,189 | 913, 267 | 0.76 | 4 | 758,266 | 1, 004, 594 | 0.75 | 5 | 813,873 | 1, 105, 053 | 0.74 |

SOCIO – ECONOMIC ASPECT

A. Employment One of the major problems of our country is unemployment. The Blossoming Buds Flower Shop will be able to help some out of school youth to find jobs even if it’s only a sideline job. It is a big help for them to sustain their needs through our efforts of helping them by the way of giving them partial jobs. And during expansion of the business the ones that will be hired will gain benefits from our shop such as SSS and philhealth.

B. Taxes
The proposed project will be a help to our economy. The taxes that our business will pay to the government will increase its revenue, which at the present time it needs, all the help that it can get. Payments to permits and licenses will contribute the government funds. Since the business is a partnership, the government share will be 35% of the total partnership income of the firm.

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