A. IntroductionWhether it's their beautiful frosting, their petite size, or their ability to light up a smile, cupcakes really do have ultimate treat appeal. Every generation loves them and even the grumpiest cant help but help themselves to these tasty pieces of art.

Cupcakes come in many varieties and sizes but there are a few factors that are always the same. Cupcakes are generally baked in muffin pans that are lined with baking paper. They are small in size and are usually frosted and decorated. The best thing about cupcakes is that you can be as basic or as unique as you want with them. Almost any type of cake or brownie can be made into a cupcake with some tweaks of the recipe and a little ingenuity.

Cupcakes may seem Americanized or westernized but you can find cupcakes almost anywhere you go. In Southeast Asia, Thailand, Iceland, Brazil, Argentina, Britain, Hungary etc. In the Philippines you can find rice cakes steamed in banana leaf cups. The varieties are endless and the adaptions are unique to every baker.

Many great classic cupcakes can be served frosted, like Chocolate Butter cream Cupcakes or Mint Chocolate Cupcakes. Others are great plain like Applesauce and Cinnamon Cupcakes or Rum Raisin Cupcakes.

Whether you are a child or an adult, a novice or an experienced baker, once you get started with my cupcake recipes you'll realize just how fun baking and decorating cupcakes can be!

B. Projected Demand

Survey out of 100 x 12 months = Demand

( 100% x 12 = 1,200 )

In determining the Projected demand of RICZEL Cupcakes (Sweet place for you (), we based our computation on the survey that we conducted among a number of people living within the Angeles City especially , those Barangay and school which are near in our market area.Table B.1YEARTOTAL NO. OF DEMAND PER YEAR

20151, 200

20161,218

20171,236

20181,255

20191,274

As the population increase the demand of the services also increases. And as the result, a percentage of 12% was recorded as an increase of demand per year.C. Projected Supply

Table C.1YEARTOTAL NO. OF SUPPLY PER YEAR

201536, 000

201636, 540

201737, 088

201837, 644

201938, 209

D.Projected Demand and Supply

In determining the Projected Demand of Riczel cupcake, we based our computation on the survey that we conducted among the number of people living within the Angeles City specifically those barangays that are the near the market area. As a result of the survey it shows that:Table D.1

Age

DEMANDSUPPLYGAPMARKET SUPPLY

C. Potential number of Customer Table D.2BARANGAYPOPULATIONPERCENTAGESAMPLE SIZE

F. Market AreaRICZEL Cupcakes (Sweet Place for you() is a hang out place here in Pampanga. Pampanga is one of the better places to start up a business. Our business is operating from 9 AM to 9 PM. Our target markets are: Students, Employees, Teenagers, Couples Families and Others.About the Students, we have three (3) student markets. The first is the High School Students, then the College Students and the Elementary Students. High School teens represent one of the fastest growing populations here in our country. Teens significant buying power both in their own right and context of their family purchasing decisions.

College Students are difficult to reach, typically between 18 years old to 20 years old something. They are also hard to find with direct mail because they are highly transient. Our most critical step is to understand our customers needs and to meet those more effectively than the competition. Constantly, we are focusing on the customer and what he/she needs and wants to buy, not what products or services we need or want to sell.G. Buying PowerBased on the survey, we found out that the potential consumers are as follows:Table G.1

CUSTOMER

FREQUENCYPERCENTAGE

Students4747%

Employees3434%

Couples1010%

Families33%

Others66%

TOTAL100100%

In determining the buying power for the potential customers. We the surveyors of the

feasibility study used questionnaires and acquire interviews to the people around the market area in order to gather data.H. Market Share

The market share determines the total share of each business. It is according to the survey in which shows the computed share of each business.

Table H.1

36% of the respondents prefer to eat in Competitor 1, 30% in Competitor 2, 25% in Competitor 3 and the remaining 11% prefer to eat at RICZEL Cupcakes.I. Comparative Analysis Along Of CompetitorsEvery Individual deserves the best value of their money. And it is practical to choose the products with highly quality that will satisfy the constantly changing demands of the customer at affordable price. The lower the price, the higher customer you will have. But, quality must also be considered.Table E.1

Product Name

RICZEL CUPCAKESDOMINIC CUPCAKERY

Red Velvet6065

Chocolate4550

Vanilla Cupcakes4550

Peppermint Mocha5050

Dark Chocolate5570

Banana4045

Strawberry4550

Brown Sugar Butterscotch5060

Nutella Chocolate Chip3035

White Chocolate Molasses Cookies3035

Red Velvet Oreo Brownies3035

Peanut Butter Cup Crunch Brownies2530

Hot Coffee ( Brewed )3030

Chocolate Shake2527

Fruit Shakes2527

Pandan Shakes2527

Coffee Shake3540

J. Gantt ChartACTIVITYSEPTEMBER

OCTOBERNOVEMBERDECEMBERJANUARY

12341234123412341234

Project and Conceptual preparation of business plan

Incorporation and business registration

Construction of the building

Recruitment, selection, hiring and training of employees

Purchased of tools, materials and equipments

Advertising and Promotion

Dry run and business operation

K. SWOT AnalysisIs a structural analysis for analyzing the business strength, weaknesses, opportunities and threats to know how to manage it right.

STRENGTH

Colorful Accessible location

Affordable products and Good customer service

Relaxing ambiance Security Guard

WEAKNESSES

Limited Space

Limited Flavors to offer to the market

The Business is new in the market

No Delivery

OPPURTUNITIES

Market Growth Seasons

Innovation

THREATS

Entry of new competitors

Product Pricing

Price increase of raw materialsL. Description of Products

CUPCAKERED VELVET CUPCAKES

Buttery red velvet cupcakes with creamy cheese frosting on top.PRICE

60.00

CHOCOLATE CUPCAKES

Rich, tender Chocolate cupcakes made of unsweetened natural cocoa powder topped with vanilla frosting and sprinkles.

PRICE

45.00

VANILLA CUPCAKES

Vanilla Cupcakes made of vanilla almond milk & yogurt with Vanilla bean frosting.

PRICE

45.00

PEPPERMINT MOCHA CUPCAKES

Deep Chocolate cupcakes flavored with peppermint and coffee topped with peppermint vanilla frosting, candy canes and a chocolate drizzle

PRICE

50.00

DARK CHOCOLATE CUPCAKES

Dark Chocolate Cupcakes topped with dark chocolate frosting. Good for Chocolate lovers.PRICE

55.00

BANANA CUPCAKES

The ultimate trio of your favorite flavors! Super-moist banana chocolate chip cupcakes with milk chocolate and peanut butter swirled frosting on top. PRICE

40.00

STRAWBERRY CUPCAKES

These fresh strawberry cupcakes are made purely from scratch with real strawberries. Top them with strawberry whipped cream.

PRICE

45.00

BROWN SUGAR BUTTERSCOTCH CUPCAKES

Brown sugar cupcakes filled with homemade butterscotch sauce, topped with vanilla frosting and more butterscotch.

PRICE

50.00

COOKIES

Nutella Chocolate Chip Cookies

Covered with butter and nutella Chocolate.PRICE

30.00

White Chocolate Chip Molasses Cookies

Soft and chewy brown sugared molasses cookies with lots of sweet white chocolate chips.PRICE

30.00

BROWNIES

Red Velvet Oreo Browniesred velvet brownies layered with Oreo frosting, chocolate ganache, and topped with Oreos.

PRICE

30.00

Peanut Butter Cup Crunch Brownies

Made of Semi-Sweet Chocolate Baking Bars , topped with peanut and creamy peanut butterPRICE

25.00

DRINKSBrewed Coffe

Made of Coffee and MilkPRICE

30.00

Chocolate Shake

Made of Chocolate powder & Milk for sweet taste.PRICE

25.00

Fruit Shakes

Made of Different Fruit Flavors and Milk

PRICE

25.00

M. Promotional Activites

Advertisement and Promotion

First week to Second Week

Posting of banners and Tarpaulins Distribution of flyers

Third week to Fourth Week

Social Network Advertisement

Fifth week to sixth week

Promo and Free Taste

FLOOR PLAN59.5 SQ.M 7.50 M

VICINITY MAP

Vi

MC ARTHUR HI-WAY

Diego Silang St.

J. Perspective View

Chapter 3

In this Chapter, all the Management process of the business is tackled, starting from the organizational structure down to Vicinity Map.

The nature of our business is Partnership. A partnership that is composed of five partners, each partner will invest a 20 % share and will get a 20% dividend annually.A. ORGANIZATIONAL STRUCTURE

B. Job Description

POSITIONJOB SPECIFICATIONJOB

DESCRIPTIONSALARIES AND BENEFITS

ManagerHe/she must be 24 years old.Graduate of a 4 years business course.

Must have at least 2 year experience of managing a business.

Responsible for managing all the aspects of the business. Responsible for applying commercial skills to meet sales and cost.500/day

Other mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay.

Baker

He/she must have a passion for food or in baking.Creativity for developing new products or decorating confectionery.

Responsible for baking, decorating and create new product.400/dayOther mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay.

Cashier/ Crew

He/she must be 18 years old and above.At least College Level must be a trust worthy person.

-A crew must be 18 years old above, easy to train and have a pleasing personality.

-A cashier is responsible for receiving payments or cash handling.- A crew is responsible for serving the order and assisting customers.300/dayOther mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay

Maintenance

Must be 20-25 years old and graduate of any related course about maintenance.

Responsible in maintaining and repairing the equipments.300/day

Other mandatory benefits by law such as SSS, PHIL-HEALTH, PAG-IBIG and 13th Month pay

Security GuardMust be 20-25 years old and have an experience.Responsible in securing the store.

300/day

C. Employees BenefitsSocial Security System(SSS)

All employees hired by private companies are become an SSS member(Republic Act No. 8282) . This system aims to protect its member for when they are unable to work such as sickness, disability, maternity, old age and death, or other such contingencies not stated but will result in loss of income or result to a financial burden.Philippine Health Insurance(PhilHealth)

The Philippine Health Insurance Corporation is the medical insurance company of the Philippine. All employees are required to be contributors of this service (Republic Act 7875). Members are given health and hospitalization subsidies should they or a dependent be hospitalized. Monthly contribution are based on actual employee monthly salaries and the amount of employee contribution is matched equally by the employer.

PAG IBIG FundHome Development Mutual Fund Decree No. 1530, a system of employee-employer contribution for housing purpose.

13th Month Pay

According to Presidential Decree No. 851, all Filipino employees are entitled to a year-end bonus equivalent to one (1) month salary regardless of the nature of their employment.

Chapter 4

Financial Aspect

Pre Operating Expense

Capital Fixed Cost

Building Improvement100,000

Equipments123, 681.50

Furniture & Fixtures79, 310.00

Baking Utensils4,406.00

Office Equipments12,421.00

Total Capital Fixed Cost

219,818.50

Working CapitalSalaries & wages65,000Electricity5000Water800

Advertising2,500

Permits & License3,468Raw Materials 29,340Office Supply500Repair maintenance2,000

Employee Contribution4, 833.50

Total 113,441.50Total Capital Fixed Cost

219,818.50

Total Working Capital

113,441.50

Total333,260.00Salaries & Wages

PositionDaily

MonthlyYear 1Year 2Year 3Year 4Year

Manager50013, 000156, 000171,600188,760207,636228,399.60

Baker 140010, 40011,44012,58413,842.4015,226.6416,749.30

Baker 240010, 40011,44012,58413,842.4015,226.6416,749.30

Cashier/Crew3007,8008,5809,43810,381.8011,419.9812,561.98

Cashier/Crew3007,8008,5809,43810,381.8011,419.9812,561.98

Cashier/Crew3007.8008,5809,43810,381.8011,419.9812,561.98

Security Guard300

7,8008,5809,43810,381.8011,419.9812,561.98

Total 2,50065,000213,200234,520257,972.1283,769.2312,146.12

SSS Payments

PositionMonthlyYear 1Year 2Year 3Year 4Year 5

Manager333.303,999.64,399.564,839.565,323.475,855.82

Baker 1266.703,200.403,520.443,872.484,259.734,685.70

Baker 2266.703,200.403,520.443,872.484,259.734,685.70

Cashier/Crew266.703,200.403,520.443,872.484,259.734,685.70

Cashier/Crew266.703,200.403,520.443,872.484,259.734,685.70

Cashier/Crew266.703,200.403,520.443,872.484,259.734,685.70

Security Guard266.703,200.403,520.443,872.484,259.734,685.70

Total 19,335.5023,20225,522.2028,074.4030,881.8533,970

Phil health

PositionMonthlyYear 1Year 2Year 3Year 4Year 5Year 6

Manager2503,000.003,300.003,630.003,993.004,392

Baker 12002,400.002,640.002,904.003,194.403,513.84

Baker 22002,400.002,640.002,904.003,194.403,513.84

Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84

Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84

Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84

Security Guard2002,400.002,640.002,904.003,194.403,513.84

Total 1,45017, 400.0019,140.0021,054.0023,159.425,475.00

Pag-ibig

PositionMonthlyYear 1Year 2Year 3Year 4Year 5

Manager2503,000.003,300.003,630.003,993.004,392

Baker 12002,400.002,640.002,904.003,194.403,513.84

Baker 22002,400.002,640.002,904.003,194.403,513.84

Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84

Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84

Cashier/Crew2002,400.002,640.002,904.003,194.403,513.84

Security Guard2002,400.002,640.002,904.003,194.403,513.84

Total 1,45017, 400.0019,140.0021,054.0023,159.425,475.00

Statement of Major Assumption

In getting the projected sales for RICZEL Cupcakes , based on our survey we conducted out of 50 person, 48 person are willing to have the product in service we offer.

Formula:

Projected sales x transaction/day x 30 days x 12 month.

= 645 x 48 x 30 x 12

=11, 145,600 projected sales on first year of the business.

There would be a 10 % increase of gross income every year.

Income tax rate from year 1 to 5 remain constant ( 32 % )

Electricity, water, salaries and wages, advertising expense, office supplies and

raw materials will increase 10 % annually. From 1st year to 5th year the depreciation of fixed assets, repair and maintenance, permits and licenses will remain constant.

Income Statement

YearYear 1Year 2Year 3Year 4Year 5

Gross Income11, 145,60012, 260, 16013,486,17614, 834,793.616,318,272.96

Operating Expense

Salaries & wages213,200234,520257,972.1283,769.2312,146.12

Electricity60, 00066,00072, 60079.86087, 846

Water9,60010,56011,61612,777.614,055.36

Advertisement30,00033,00036,30039,39043,923

Office expense60006,6007,2607,9868,784.6

Raw materials29,34032,27435,501.4039,051.5442,956.69

Permit & license3,4683,4683,4683,4683,468

Repair & maintenance24,00024,00024,00024,00024,000

Annual Depreciation58, 00263,80270,182.4277,200.6684,920.73

Total Operating Expense315, 608.00474,224

446,299.92

487,722.86

534,254.50

Net Income10, 829,992.0011,785,936.0013, 039,876.0814, 347,070.7415,784,018.46

Less Income Tax 32 %3,465,597.443,771,499.524,172,760.354,591,062.645,050,885.91

Net Income After tax7,364,394.568,014,436.488,867,115.739,756,008.110,733,132.55

Net Book Value

Fixed AssestsCostUseful LifeAnnual Contributrion

Building Improvement100, 000.001010, 000.00

Equipments115, 501.001011, 550.00

Furniture & Fixture44, 122.00104, 412.00

Total259, 62325, 962

Permits & License

DTI200.00

BIR500.00

MAYORS PERMIT300.00

SANITARY PERMIT150.00

FIRE SAFETY518.00

BUSINESS PERMIT1,650.00

BARANGAY CLEARANCE150

TOTAL3,468.00

YearYear 0Year 1Year 2Year 3Year 4Year 5

Cash Inflow

Investment333,260

Gross Income11,145,60012, 260,16013,486,17614,834,793.616,318,272.96

Total Cash Inflow333,26011,145,60012, 260,16013,486,17614,834,793.616,318,272.96

Cash Out Flow

Building Improvement100,000

Equipments123,681.50

Furniture & Fixtures79,310.00

Operating Expenses315, 608.00474,224

446,299.92

487,722.86

534,254.50

Tax Payments (32%)3,465,597.443,771,499.524,172,760.354,591,062.645,050,885.91

Total Outflow302,991.503,781,205.444,245,723.524,619,060.275,078,785.505.585,140.41

Net5 Cash Flow30,268.5010,829,992.0011,785,936.0013,039,876.0814,347,070.7415,784,018.46

Add. Cash Beg. Balance30,268.5010,860,260.5022,646,196.5035,686,072.5850,033,143.32

Cash Ending Balance30,268.5010,860,260.5022,646,196.5035,686,072.5850,033,143.3265,817,161.77

Statement of Cash flow\Balance Sheet

YearYear 1Year 2Year 3Year 4Year 5

Current Asset10,860,260.5022,646,196.5035,686,072.5850,033,143.3265,817,161.77

Total Current Asset10,860,260.5022,646,196.5035,686,072.5850,033,143.3265,817,161.77

Fixed Asset

Building Improvement90, 00080, 00070, 00060, 00050, 000

Equipments111,313.35100,182.0190,163.8181,147,4373,032.69

Furniture & Fixtures

Raw Materials

Total Fixed Asset

Liabilities and Equities

Accounts payable

Equity

Capital

Retained earnings

Total equity

Less: Annual Contributiuon

EMBED Excel.Chart.8 \s

1.73 m

KITCHEN

CR

3.75 m

OFFICE

COUNTER

4 M

8 m

2.30 m

3 M

Mega X

Salon

7-eleven

(7/11)

Mister Frosty

AUF

College

AUF

Medical Center

Jollibee

Great Dames AUF

ROYALE

Burgasm

Mercury Drug

DOA AURORA ST.

Acqua- Oro

Generics

Pharmacy

MCDO

( AUF )

Professional

School

( AUF )

Dominic

Cupcakery

RICZEL CUPCAKES

A Sweet place for you

Shoulder Boulder

RICZEL

CUPCAKES

A Sweet place for you

5 Rat Internet Cafes

RICZEL CUPCAKES

A Sweet place for you

RICZEL

CUPCAKES

A Sweet place for you

CUPCAKES-COOKIES-BROWNIES

MANAGER

MAINTENANCE/ CREW (3)

CASHIER/

CREW (2)

CASHIER/

CREW (1)

BAKER (2)

BAKER (1)

_1486257957.xlsChart1

0.36

0.3

0.25

0.11

36%

30%

25%

11%

MARKET SHARE

Sheet1

MARKET SHARE

COMPETITOR 136%

COMPETITOR 230%

COMPETITOR 325%

RICZEL Cupcakes11%

To resize chart data range, drag lower right corner of range.