Chapter IV

FINANCIAL PLAN

An essential part of the business plan is the financial plan, since it assesses the business's long-

term viability and affordability. This section offers a start-up summary that takes initial investment

requirements into consideration. then a thorough breakdown of production expenses. Next,

projections for sales are offered to calculate possible earnings using assumptions about the market.

Lastly, a projected income statement is created to assess financial performance and

profitability. Together, this chapter shows how responsible financial the stability and prosperity of

the business venture are supported by management.

EXPENSES COST

A. Raw Materials ₱15,000.00

B. Packaging Supplies ₱6,000.00

C. Cooking Materials ₱5,500.00

D. Equipment ₱28,000.00

E. Office Supply ₱3,000.00

F. Rent Expense ₱3,000.00

G. Salaries Expense ₱15,000.00

H. Permit and License ₱4,500.00

I. Utilities Expense ₱3,000.00

J. Miscellaneous ₱9,000.00

K. Materials and Labor ₱58,000.00

Total: ₱150,000.00
A. Raw Materials

Particulars QTY Unit Price Amount

Real Thai Rice 30 packs ₱112.75 ₱3,382.50

Paper (100 g)

Buldak ×3 Spicy 50 packs ₱90.65 ₱4,532.50

Noodles (140 g)

Jolly Canola Oil 10 bottles ₱147.65 ₱1,476.50

(1L)

Magnolia Full 10 cartons ₱97.70 ₱977.00

Cream Milk (1 L)

Emborg Mozzarella 15 packs ₱248.40 ₱3,726.00

Shredded Cheese

(200 g)

Total: ₱14,094.50

B. Packaging Materials

Particulars QTY Unit Price Amount

Container 100 packs ₱40.25 ₱4,025.00

Logo Stickers 1,000 pcs ₱1.00 ₱1,000.00

Tissue Napkins 10 packs ₱41.25 ₱412.5

Total: ₱5,437.5
C. Cooking Materials

Particulars QTY Unit Price Amount

Stainless Steel Pan 2 pcs ₱899.00 ₱1798.00

Stainless Steel Pot 1 pc ₱899.00 ₱899.00

Silicone Spatula 2 pcs ₱99.00 ₱198.00

Measuring Cups & 1 set ₱99.00 ₱99.00

Spoons

Stainless Mixing 2 pcs ₱149.00 ₱298.00

Bowl

Tongs 2 pcs ₱50 ₱100.00

Total: ₱3,392.00

D. Equipment

Particulars QTY Unit Price Amount

Two-Burner Gas 1 ₱3,500 ₱3,500

Stove

LPG Tank (11kg) 1 ₱2,800 ₱2,800

LPG Regulator & 1 ₱900 ₱900

Hose

Stainless 1 ₱6,000 ₱6,000

Preparation Table

Stainless Sink 1 ₱3,500 ₱3,500

Exhaust Fan 1 ₱2,500 ₱2,500

Fire Extinguisher 1 ₱2,000 ₱2,000

LED Lights 3 ₱600 ₱1,800

Total: ₱23,000
E. Office Supplies

Particulars QTY Unit Price Amount

Hair Net 2 packs ₱45.00 ₱100.00

Face mask 2 boxes ₱13.00 ₱26.00

Disposable plastic 2 boxes ₱21.50 ₱43.00

gloves

Apron 2 pcs ₱70.00 ₱140.00

Hand Sanitizer 2 bottles ₱69.10 ₱138.2

Dishwashing Liquid 2 bottles ₱120.00 ₱240.00

Broom & Dustpan 1 set ₱199.00 ₱199.00

set

Garbage Bags 2 packs ₱69.55 ₱139.5

Cleaning Cloths 2 pcs ₱75.00 ₱150.00

Plastic Garbage Bin 1 pc ₱230.00 ₱230.00

Total: ₱1,405.7

F. Rent Expenses

SamWrap has a monthly rent expense of ₱3,000.00. The business is proposed to operate in

a subdivision near a basketball court, where rental rates are generally lower than those in

commercial areas or shopping malls. A monthly rental expense of ₱3,000.00 was allocated based

on the estimated cost of leasing a small space.

G. Salaries Expense

Employee Days of Work Daily Salaries Amount

Owner/Manager 26 Days ₱600.00 ₱18,000.00

Cook 26 Days ₱500.00 ₱13,000.00

Cashier/Server 26 Days ₱460.00 ₱11,960.00

Total: ₱42,960.00

H. Permit & License

Permits & License Yearly

BMBE ₱0

Total: ₱0

I. Utilities Expense

Utilities Daily Use Daily due Amount

Electric Bill 26 days ₱76.92 ₱2,000.00

Water Bill 26 days ₱19.23 ₱500.00

LPG/gas 26 days ₱19.23 ₱500.00

Total: ₱115.38/day ₱3,000.00

J. Miscellaneous

To maintain operations and steady expansion, SamWrap will set aside ₱9,000.00 for various

costs. These funds will pay for unforeseen expenses like seasonal promotions, emergency

ingredient replenishment, and equipment repairs. A portion of this money will also be used for

employee training, which will improve customer satisfaction.

K. Materials and Labor

Materials QTY Unit Price Amount

Square Tubular 20 pcs ₱700.00 ₱14,000.00

Steel (1.5" × 1.5")

Marine Plywood (18 10 sheets ₱950.00 ₱9,500.00

mm)

Fiber Cement 8 sheets ₱650.00 ₱5,200.00

Board

Pre-painted GI 4 pcs ₱1,200.00 ₱4,800.00

Roofing Sheets

Canvas Awning 1 set ₱5,500.00 ₱5,500.00

(Orange & Cream)

Paint, Primer & 1 lot ₱2,500.00 ₱2,500.00

Finishing Materials

Screws, Bolts, Nails 1 lot ₱1,500.00 ₱1,500.00

& Adhesives

Electrical Materials 1 lot ₱2,000.00 ₱2,000.00

(wires, switches,

outlets)

Acrylic Signage & 1 set ₱4,000.00 ₱4,000.00

Vinyl Stickers

Labor 1 lot ₱13,000.00 ₱13,000.00

Total: ₱58,000.00
Production Cost

Particulars QTY Unit Price Amount

Real Thai Rice 30 ₱112.75 ₱3,382.50

Paper (100 g)

Buldak ×3 Spicy 50 ₱90.65 ₱4,532.50

Noodles (140 g)

Jolly Canola Oil (1 10 ₱147.65 ₱1,476.50

L)

Magnolia Full 10 ₱97.70 ₱977.00

Cream Milk (1 L)

Emborg Mozzarella 15 ₱248.40 ₱3,726.00

Cheese (200 g)

Container 100 ₱40.25 ₱4,025.00

LPG 1 ₱2,800.00 ₱2,800.00

Total: ₱20,919.5
₱20,919.50

Output Produced Unit Variable Cost Selling Price per Estimated Sales

per Output Output

1,300 pcs ₱46,800.00 ÷÷1,300

₱20,919.50 1,300 ₱69.00 1,300 pcs × ₱69.00 =

pcs = ₱16.09
₱36.00 ₱89,700.00

The company estimates that at least 50 pieces of SamWrap will be produced daily, with a total of

1,300 pieces expected to be produced over 26 operating days. This production goal is based on the

anticipated demand from the target market in Purok 23, Sunrise Valley, Lagao Subdivision,

General Santos City.

The estimated sales for 1,300 pieces amount to ₱89,700.00, based on the selling price of ₱69.00

per SamWrap. The business calculated aa total

total variable
variable production
productioncost
costof
of₱20,919.50
₱46,800.00totoproduce
produce

1,300 pieces
pieces within
withinone
onemonth,
month,resulting
resultinginin
a unit
a unit
variable
variable
costcost
of ₱16.09
of ₱36.00
per SamWrap.
per SamWrap.
The The

company expects its projected sales to sufficiently cover production costs while generating profit

to support business operations and future growth.

YEAR 1 YEAR 2 YEAR 3

Production Qty (1 Selling Year 1 Year 1 Sales Year 2 Year 2 Sales Year 3 Year 3 Sales

Month) Price Qty Qty Qty

SamWrap 1,300 ₱69.00 15,600 ₱1,076,400.00 16,200 ₱1,117,800.00 17,400 ₱1,200,600.00

pcs pcs pcs pcs

The table shows the projected sales of the business for three years. In Year 1, the projected sales

amount to ₱1,076,400.00 from the sale of 15,600 SamWraps. In Year 2, sales are expected to

increase to ₱1,117,800.00 from 16,200 SamWraps. By Year 3, the business projects sales of

₱1,200,600.00 from 17,400 SamWraps.

The projected increase in annual sales is based on the expected growth in customer demand,

improved brand recognition through promotional activities, and the strategic location of the

business at Purok 23, Sunrise Valley, Lagao Subdivision, General Santos City.