hrm project

In partial Fulfillment in

Entrepreneurship with Feasibility Study

Siomai Pizzazz

Submitted by:

Kristine Faith C.Sunico

Kens Louis G. Pueblos

Glynis Lyn S. Lagarnia

Submitted to:

Ms. Arlou Mae P. Tecson

March 2015

Table of Contents

Acknowledgement i

Introduction ii

CHAPTER 1

Description of the Business 1

Location 2

Objectives 3

Demographic Profile 4

Socio-cultural Forces 5

Political and Legal Forces 6

Pricing Strategy 7-18

Promotional Tools 19

CHAPTER 2

Proponents Profile 20

Type of Organization 21

Organizational Chart 22

Job Description 23

Operating Policies 24

CHAPTER 3

Technical Aspect

Logo 25

Product Description 25

Floor Plan 26

Roof Plan 27

Waste Disposal 28

CHAPTER 4

List of Financial Assumption 29-34

Income Statement 35

Balance Sheet 36

Return on Investment 37

Cash Flow Statement 38

Ratio Analysis 39

Supply and Demand Schedule 40

CHAPTER 5

Conclusion 41

References 42

Acknowledgement

The researchers owe a lot of gratitude to a lot of people who helped and supported

them on making this feasibility study.

They would like to express their deepest thanks to the almighty God for giving

them guidance and strength to pursue and complete the study.

Sincerest thanks to the instructor Mrs. Arlou Mae P. Tecson, for her assistance and

dedicated involvement in every step throughout the process, this paper would have never

been accomplished. They would like to thank her very much for her support and

understanding over the whole duration of the class.

And to their beloved parents who fully gave their support financially and

emotionally and for the advices which motivate them to finish our work. And to all the

people especially their classmates, team members itself that have made valuable

comments and suggestions on this project which gave us inspiration to improve their

work. The researcher thanks all the people for their help directly to complete their

feasibility study.

Lastly, to the persons who made this study possible, Mr. Kens Louis Gabasa

Pueblos, Ms. Kristine Faith Cortes Sunico and Ms. Glynis Lyn Sepada Lagarnia, who

truly gave their time and effort, for the cooperation and teamwork to achieve this study.

Introduction

Food business is one of the most influential businesses nowadays, in terms of

social economic factor of society foods are the basin needs of a human being. Food

establishment is somehow like a flower that has a lot of variety and color. Food business

is an eye catching to the consumer because of its demand nowadays.

Siomai is one of the trending food businesses in this generation because of its

delicious and unique quality taste. Siomai Pizzazz is build to sustain the desired food of

this generation. We created something new that will bring the consumers and the siomai

together.

Filipino loves to eat different kinds of foods and this are the main reason why

they created siomai business to innovate the flavor, texture, and the quality of siomai to

the next level. The Siomai Pizzazz is soon to be established and reveal in its unique twist

and flavor.

The intention of this business is to give fulfillment of our customers that we could

possibly offer, and that is the goal of this proposal. And to determine whether the

business idea might generate an adequate level of cash flow and profitability and remain

viable in the market place over a long term.

Description of the business

Name of the Business

This is a newly established food service business in town. It is inspired by

Chinese cuisine. It is because Filipinos were greatly influenced by chinese culture, many

years ago. And this business would like to preserve the originality and the quality of the

food.

The product is basically, different varieties of siomai. Including the original good

quality made Siu Mai ( which is known as siomai here in the Philippines ), some

innovations and house specialty. And also different kind of dipping sauces, in which you

can choose and even mix two kinds of dipping sauces. Endless possibilities, and that

makes it more exciting and interesting. That is why the company is complimented by the

word “pizzazz” which basically means a quality or style that is exciting and interesting.

The prospect customers will be students, staffs and the people nearby. Since the

first planned location will be near college universities, it will surely get the target

market.The growth of this business will surely be hasty, because of the quality of the

service and the uniqueness itself which differs from other siomai outlets.

Location :

Aguada (Pob.), Ozamis City in Misamis Occidental

Objectives :

To establish a presence as a successful local siomai outlet and gain market share

in Philippines’ fast food industry.

To create a unique, innovative, and interesting menu that will differentiate us

from the rest of the competition. Having this on mind, people around us would be

easy to attract, by this kind of menu that every person couldn’t resist to try our

specialties.

To sell the products that are of the highest quality, as well as keeping the

customers happy and satisfied with all of our product categories from food to

store merchandising. More customers will be satisfied, and that’s a lot of income

if we met or exceed their expectations.

To make “Siomai Pizzazz” a destination spot for people who wants to chill and

hangout . Since lot of people love to hangout in coffee shops, why not change the

idea and visit our siomai outlet, where they can find the best siomai in town with

more interesting and limitless possibilities of their preferences.

To ensure that customers are served with high quality food at a great value. With

the service we offer and the product we served, costumers will be surely satisfied.

Make them patronize our product, and will surely invite more people to come by

and try our best sellers.

To expand into a number of outlets by a year or 3, and sell the franchise to

neighboring cities. Let the people from other places taste our product. Soon it will

be bigger and will be known in neighboring cities. And we will be open for

negotiation to open new outlet in other cities.

Demographic Profile

Aguada Ozamiz City

Island Group MindanaoRegion 10Province Misamis OccidentalCity Ozamiz CityPopulation 7,071

Aguada is a barangay of the Phippines component City of Ozamiz in the Province

of Misamis Occidental in Northern Mindanao which is part of the Mindanao group of

islands.

Aguada belongs to the baranggay of Component City Ozamiz City which

Compose the Center of the Component City.

The component city Ozamiz City with a population of about 123,137 and its 51

barangays belong to the partly urban areas in the Philippines. While some of the

barangays developed modern urban structures, some others, especially those which are

seated in the outlying areas, remained rural. By the end of 2007 Aguada had 7,701

residents.

Other barangays of Ozamiz City are 50th District (Pob.), Bacolod, Bagakay,

Balintaak, Banadero(Pob.), Baybay San Roque, Baybay Santa Cruz, Baybay Triunfo,

Bongbong, Calabayan, Capucao c., Capuca P., Carangan, Carmen (Misamis Annex),

Catadman- Manabay, Cavinte, Cogon,Dalapang, Diguan, Dimaluna, Dona Consuelo,

Emargo, Gala, Gango, Gotokan Daku, Gotokan Diot, Guimad, Guigona, Kinuman Norte,

kinuman Sur, Labinay, Labo, Lam-an, Liposong, litapan, Malaubang, Manaka,

Maningcol, Mentering, Molicay, Pantaon, Pulot, San Antonio, Sangay Daku, Sangay

Diot, Sinuza, Stimson Abordo(Montol), Tabid, Tinago, and Trigos.

Socio-Cultural Forces

Succeeding in any business takes work and effort, due to the many challenges that

exist in all market. Unfortunately, the hurdles are the higher and more complex in global

markets than in domestic ones.

This is particularly true when dealing with differences in socio-cultural forces,

economic and financial forces, legal and regularity forces, and physical and

environmental forces. In this field of business, this deals a hard time exploring the

possibilities to maintain the quality of the product that the certain establishment is selling.

In this case, the food that we are selling is very much competent to the other one.

Many factors that we proceed to look for, the budget, the location, the environment and

the most important is the consumer if they can handle the pressure of the competition

towards to the quality and quantity of the products. In terms of the budget and location

our team is obliged to conduct preliminary studies in obtaining the vision and the mission

of our products to be sold.

The factors of the location are needed to be process so that the location of the

business will be automatically approved and the quantity of the product will matter after

all. In this field of the completion the assurance of the success is the number of the

population in the said location that the business will be establish, the product and the

budget will make a future decision if the business will rise or fall.

Political and Legal Forces

Every business has unique regulations that guide licensing requirements, observe

and track changes to business to avoid legal problems. The business in Aguada, Ozamiz

Ciy is legally operated and provided permits to ensure that our business are following the

governments rules and regulations with regards the way a country is run.

Aguada is a place where our business will be safe in terms of fire, there’s a fire

station located at Vicente Ostia Avenue, Ozamiz City. And the City Hall located and Don

Anselmo Bernard Avenue, Ozamiz City.

Ozamiz Ciy is Ruled by Mayor Aldong Parojinog, Ozamiz City is agricultural by

resources but it has become the center of commerce, health, transportations and education

is part of Mindanao, considering its strategic location and its peaceful atmosphere. The

city has good harbor location, its local port is the principal outlet of mineral deposits,

agricultural and forest products of the provinces of Zamboanga del Norte, Zamboanga del

Sur, Maguindanao, parts of Lanao del Norte and Misamis Occidental.

Pricing Strategy

Recipe Chinese Pork siomai

Chicken siomai Beef siomai Shrimp, scallop, pork

siomai

Total CostPhp. 127.18 Php. 128.68 Php. 146.18 Php. 136.68

Cost per Yield Php. 2.31 Php. 2.34 Php. 2.66 Php. 22.46

130% Profit Margin

Php. 3 Php 3.04 Php. 3.46 Php. 3.20

Selling Price per Piece

Php. 5.31 Php. 5.38 Php 6.12 Php. 5.66

Dipping sauce Adjusted average

Adjusted average

Adjusted average

Adjusted average

12 % VAT + 12% + 12% + 12% + 12%

Standard Price ( 5 pieces ) Php. 33.00 Php. 33.00 Php.40.00 Php. 40.00

Dipping sauces :

Cost per yield( Php. )

130% Profit Margin( Php.)

Selling price per Serve( Php.)

Recipe #1Recipe #2Recipe #3Recipe #4

2.242.402.402.29

2.93.123.122.98

5.145.525.525.27

Total cost Php. 21.45Ave. cost per serving

Php. 5.36

Chinese Pork Siomai

( Siu Mai dumplings with pork and shrimp )

Yield:55

Ingredients :

Procedure :

1. Soften the mushrooms by soaking in hot water for 20 minutes. Squeeze out any

excess water. Cut off the stems.

2. Soak the shrimp in warm, lightly salted water for 5 minutes. Pat dry. Mince the

mushrooms, shrimp, and green onion. Combine with the ginger and pork. Stir in

the seasonings. Mix the filling ingredients thoroughly.

3. Put a wanton wrapper in your hand. Wet the edges. Put 2 to 3 teaspoons of filling

in the middle, taking care not to get too close to the edges. Gather up the edges of

the wrapper and gently pleat so that it forms a basket shape, with the top of the

filling exposed.

¼ kg ground pork

175 g .shrimp

1 egg

½ onion

½ ginger

3 green onions

30 g. shiitake mushrooms

55 Wonton wrappers

Seasonings :

15 mL Chinese rice wine

15 mL sesame oil

10 mL oyster sauce

10 g. salt

10 g. Freshly ground black -pepper

4. Steam over boiling water until the filling is cooked through ( 10-15 minutes ).

Food Costing of Chinese Pork Siomai

Ingredients Quantity Unit Cost ( peso ) Total Cost (peso)

ground porkshrimpeggoniongingergreen onionsshiitake mushroomsWonton wrappers

Seasonings :Chinese rice winesesame oiloyster saucesaltFreshly ground black -pepper

¼ kg175 g.1 piece½ piece½ piece3 pieces30 g.55 pieces

15 mL15 mL10 mL10 g.10 g.

180 per kg.200 per kg.5 per piece4 per 1 piece3 per 1 piece6 per 9 pieces30 per 100 g.10 per 55 pieces

60 per 100 mL100 per 400 mL40 per 100 mL3 per 100 g.5 per 80 g.

4535521.52910

93.7540.30.63

Total Recipe costCost per yield130% Profit Margin

127.182.313

SUGGESTED SELLING PRICE

5.31 per piece

Chicken Siomai ( Filipino style )

Yield:55

Ingredients :

1/2 kg Chicken (ground)

250 g. Carrots

1 egg

1 onion

½ ginger

3 green onions

30 g.shiitake mushrooms

55 Wonton wrappers

Seasonings :

15 mL Sake

15 mL sesame oil

10 mL soy sauce

10 g salt

10 g Freshly ground black –pepper

Procedure :

1. In a mixing bowl, combine the ground chicken, mushroom, carrots, onion, ground

black pepper, salt, sesame oil, and egg. Mix well using a spatula

2. Lay a piece of wonton wrapper in a plate. Scoop about a tablespoon of mixture

and place it in the center of the wrapper. Wrap the mixture by folding the sides

until the meat mixture is enclosed. Do this step until the mixture is consumed.

3. Pour the water in a steamer. Bring it to a boil.

4. Meanwhile, arrange the chicken siomai in the steamer. Make sure that you grease

the steamer using a cooking spray or by rubbing with cooking oil. This will

prevent the wrapper from sticking.

5. Steam the chicken siomai for 15 to 25 minutes. The time will depend on the size

of the siomai.

Food Costing of Chicken Siomai ( Filipino Style )


Chicken (ground)Carrotseggoniongingergreen onionsshiitake mushroomsWonton wrappers

Seasonings :Sakesesame oilsoy saucesaltFreshly ground black -pepper

1/2 kg250 g.1 piece1 piece½ piece3 pieces30 g.55 pieces

15 mL15 mL10 mL10 g.10 g.

145 per kg.40 per kg.5 per piece4 per 1 piece3 per 1 piece6 per 9 pieces30 per 100 g.10 per 55pieces


72.510541.52910

93.7510.30.63


128.682.343.04


5.38 per piece

Beef Siomai

Yield:55

Ingredients :

1/2 kg Beef

1 egg

1 onion

½ ginger

3 green onions

55 Wonton wrappers

Seasonings :

25mL vinegar

15mL sesame oil

10mL oyster sauce

10g. salt

10g. Freshly ground black pepper

Procedure :

1. Combine all the ingredients together except the wrapper.

2. Wrap the meat in siomai wrapper by placing about 1 tbsp of meat in the center of

the wrapper then press all the sides to the middle leaving an open space on top.

3. Place all the wrapped meat in the steamer.

4. Steam for 20-25 minutes.

Food Costing of Beef Siomai


Beef eggoniongingergreen onionsWonton wrappers

Seasonings :vinegarsesame oiloyster saucesaltFreshly ground black -pepper

1/2 kg1 piece1 piece½ piece3 pieces55 pieces

25 mL15 mL10 mL10 g.10 g.

200 per kg.5 per piece4 per 1 piece3 per 1 piece6 per 9 pieces10 per 55 pieces


100541.5210

153.7540.30.63


146.182.663.46


6.12 per piece

Shrimp, Scallop, Pork siomai

( Japanese style )

Yield: 55

Ingredients:

175g Shrimp

1/8 kg Bay scallops

¼ kg ground pork

1 egg

½ onion

55 Wonton wrappers

Seasonings :

15 mL Sake

15 mL sesame oil

10 mL soy sauce

10g. salt

10g. Freshly ground black –pepper

Procedure:

1. To make the filling: Chop the shrimp and scallops finely then add the pork, egg

and onion. Transfer the mixture to a bowl and rapidly mix in the seasonings.

2. To make the siomai: hold on a wonton wrapper in your hand. Spoon 1 tablespoon

of the filling into the center of the wrapper ( rinse the spoon in cold water so the

filling doesn’t stick ). Gather the edges of the wrapper up around the filling and

squeeze the sides together with your fingers forming a little pleated cup

3. Place all the wrapped meat in the steamer.

4. Steam for 20-25 minutes.

Food costing of Shrimp, Scallop, Pork siomai ( Japanese style )


ShrimpBay scallopsground porkeggonionWonton wrappers

Seasonings :Sake sesame oilsoy saucesaltFreshly ground black -pepper

175g1/8 kg¼ kg1 piece½ piece55 pieces

15 mL15 mL10 mL10 g.10 g.

200 per kg.200 per kg.180 per kg.5 per piece4 per 1 piece.10 per 55 pieces


3525455210

93.7510.30.63


136.682.463.20


5.66 per piece

Dipping Sauces :

Recipie #1

serves 17Ingredients Quantity Unit Cost ( peso ) Total Cost (peso)Chili (siling labuyo)Cooking oilGarlicShrimp paste

120 g.45 mL2 cloves5 Tbsp.

10 per 100g.20 per 100mL7.5 per bulb50 per cup

1291.515.63

Total CostCost per yield130% Profit Margin

38.132.242.9

Suggested Selling Price 5.14

Recipe #2

serves 21Ingredients Quantity Unit Cost ( peso ) Total Cost (peso)Red chilli GarlicCooking oil

100 g.100 g.120 mL

12 per 100 g.15 per 100 g.20 per 100 mL

121524

Total costCost per yield130% Profit Margin

512.43.12


Recipe #3

serves 16Ingredients Quantity Unit Cost ( peso ) Total Cost (peso)Soy saucevinegarSesame oil

120 mL60 mL10 mL

10 per 100 mL40 per 100 mL100 per 400 mL

1223.952.5


38.452.403.12


Recipe #4

serves 21Ingredients Quantity Unit Cost ( peso ) Total Cost (peso)Sili habaOilGarlicOnionSugarcatsup

100 g.120 mL2 cloves½ piece1 Tbsp.100 g.

15 per 100 g.20 per 100 mL7.5 per bulb4 per 1 piece18 per 250 g.25 per 550 g.

15241.521.084.55


48.132.292.98


Sago’t Gulaman (sweet beverage)

25 drinks

Ingredients:

3 cups sago

2 pcs. gulaman

3 cups sugar

Water

Crushed ice

Procedure:

1. To cook sago: In a saucepan, boil water and put in uncooked sago. Stir constantly

to prevent them from sticking. Drain and rinse. Set aside.

2. To cook gulaman: Boil water in a saucepan and put in uncooked gulaman. When

it has dissolved in the water, strain thoroughly. Set aside to cool, then cut into

cubes.

3. To make arnibal (sugar syrup): Over medium heat, caramelize sugar. When

melted, pour in water and continue cooking to make sure that the sugar is

dissolved completely. Set aside to cool. Put some arnibal on the sago to sweeten

the latter.

4. Put some sago and gulaman in glasses. Sweeten by adding enough arnibal. Add

ice-cold water or crushed ice.

Food costing

Ingredients Quantity Unit Cost Total Costsago 3cups 30 per cup 60gulaman 2pcs. 15 per pcs. 30sugar 3cups 25 per pcs. 75water

Total recipe costCost per yield

130% profit marginSuggested selling

price

1656.68.5815.18

PROMOTIONAL TOOLS

Siomai Pizzazz is very near where the target market is located in nearby

universities like La Salle University and Misamis University making the business very

accessible and convenient to them. There are many ways to promote Siomai Pizzazz.

Social Media, since most of the people are engaging on social medias

they could easily locate the Siomai Pizzazz by posting on facebook.

Brochures, the lay-out and the design could attract the customer to taste the

different varieties of Siomai pizzazz since brochure is readable.

Tarpaulins, to catch the attention of the customers and to those people who are

passing by the area.

Proponents Profile

Siomai Pizzazz will be own and manage by Dr. Kennedy S. Sunico, a graduate of

Bachelors of Science in Veterinary Medicine at Central Mindanao University and

currently he is working as the Regional Director assigned in Cebu City as the Meat

Inspector. The owner is 53 years old, since he is a meat inspector he knows already the

food production because he is exposed on food processing like making of hotdogs, ham,

patties and even on making siomai meat. He is currently residing in ICC Village

Maningcol, Ozamiz City together with his wife Dr. Evelyn Sunico a Veterinary doctor as

well. When the owner is not around her wife will take over the place and supervise the

staffs and the chef to maintain the smooth flow of operation. There will be two servers to

attend the guests order and provide the quality service to the guest. And a chef to cook

and prepares the ingredients and cook the food. Siomai Pizzazz could cater varities of

siomai.

Type of Organization

The sole proprietorship is the simplest business form under which one can operate a

business. The sole proprietorship is not a legal entity. It simply refers to a person who

owns the business and is personally responsible for its debts. A sole proprietorship can

operate under the name of its owner or it can do business under a fictitious name. Siomai

Pizzazz which is own by Dr. Kennedy S. Sunico. The fictitious name is simply a trade

name- it does not create a legal entity separate from the sole proprietor owner.

The sole proprietorship is a popular business form due to its simplicity, ease of

setup, and nominal cost. A sole proprietor need only register his or her name and secure

local licenses, and the sole proprietor is ready for business. A distinct disadvantage,

however, is that the owner of a sole proprietorship remains personally liable for all the

business's debts. So, if a sole proprietor business runs into financial trouble, creditors can

bring lawsuits against the business owner. If such suits are successful, the owner will

have to pay the business debts with his or her own money.

The owner of a sole proprietorship typically signs contracts in his or her own name,

because the sole proprietorship has no separate identity under the law. The sole proprietor

owner will typically have customers write checks in the owner's name, even if the

business uses a fictitious name. Sole proprietor owners can, and often do, commingle

personal and business property and funds, something that partnerships, LLCs and

corporations cannot do. Sole proprietorships often have their bank accounts in the name

of the owner. Sole proprietorships often have their bank accounts in the name of the

owner.

Organizational Chart

Job Description

OWNER/Manager

CHEF/COOK FOOD SERVER 1

FOOD SERVER 2

Owner/Manager - the one who finance all the costs, including all permits needed for putting up business,

food costs, equipments, financial, labor.

- manage daily and weekly sales, determine profits and losses.

- She/he is responsible in the supervision of the business daily operation.

- responsible in the acquisition of raw materials and other supplies

- responsible in checking the inventory and maintaining a record.

Chef/Cook – the one who will cook the food and the orders.

Food Servers – responsible in the preparing of orders and attending the customer’s needs

- the first shift prepares the burger house to open and the closer shift will be

the one to clean and keep the ending inventories for the day.

Operating Policies

Food Safety is one of the most important tasks given to the siomai staff, policies and procedures must be followed in order to ensure that food-borne illnesses are not allowed to spread.

Hand washing- the most important policy to follow is proper hand washing

procedures before and after contacting to the food to avoid cross-contamination.

FIFO- when storing food, always follows the first in, first out. Newer food is to be

stored behind or on the bottom of the stacks, leaving older food more likely to be

used first.

Dishwashing- Follow all the state laws in regards to dishwashing procedures

Tables- must be cleaned and sanitized after each customer. Sanitizer water should

be kept in separate buckets for this use, and it should be changed frequently.

Sick Employees- employees with coughs, sneezing or other symptoms should stay

home so as not to infect fellow workers and the customers.

Temperature- the food temperature should monitor in order to determine that the

meat inside the molo wrapper is already cooked to avoid any food poisoning in

regards to the food production.

Food Area- the area must be clean to predict any unnecessary diseases that could

create food borne illness.

Technical Aspect

SIOMAI PIZZAZ

The product is basically, different varieties of siomai. Including the original good

quality made Siu Mai ( which is known as siomai here in the Philippines ), some

innovations and house specialty. Combination of different variety, with set menus

including package of siomai with beverages. And also different kind of dipping sauces,

in which you can choose and even mix two kinds of dipping sauces. Endless possibilities,

and that makes it more exciting and interesting. That is why the company is

complimented by the word “pizzazz” which basically means a quality and style that is

exciting and interesting.

LAY OUT

Floor Plan

Legend:

chair

extension table

lavatory sink

round chairs

table

toilet

Roof Plan

Waste Disposal Management

List of Financial Assumptions

1. Sales are in cash basis.2. Selling Price per serving (5pcs.) will increase 3% every year.

2016 2017 2018 2019 2020

Chinese Pork Siomai

33 34 35 36 37

Chicken Siomai 33 34 35 36 37

Beef Siomai 40 41 42 43.25 44.50

Shrimp, Scallop, Pork Siomai (Japanese Style)

40 41 42 43.25 44.50

3.Cost of Direct Materials will increase by 3% every year, the following is the cost of direct Materials per unit with its corresponding increase.

2016 2017 2018 2019 2020

Chinese Pork Siomai

127.18 131 134.93 138.98 143.15

Chicken Siomai

128.16 132.54 136.52 140.62 144.84

Beef Siomai 146.18 150.57 155.09 159.74 164.53

Shrimp, Scallop, Pork Siomai (Japanese Style)

136.68 140.78 145 149.35 153.83

Dipping Sauces

2016 2017 2018 2019 2020

Recipe # 1 38.13 39.27 40.45 41.66 42.91

Recipe # 2 51 52.53 54.11 55.73 57.40

Recipe # 3 38.45 39.60 41.49 42.73 44.01

Recipe # 4 48.13 49.57 51.06 52.59 54.17

4.Straight- line method of depreciation is used.

Property, Tools and equipment

Cost Salvage Value Estimated Useful life(in year)

Refrigerator Php.15,995 Php.5000 10

Steamer Php.3549 Php.500 5

Table Php.2,000 ----------------

Chairs(30) Php.3,000 ----------------

5.Operating expense are the follows.

Particulars Projections

Salaries and wages 10% increase every 3 years

13th month pay One month of their total salary

SSS and Philhealth contribution Based on the existing contribution table.

Rent To be paid monthly, beginning of the month Php.2,000/month

Transportation Php.300.00 only

VAT registration fee Php500.00 annually

Selling and Office Supplies 2% increase every year except calculator

Tools 2% increase every year

Permits and Licenses 3% increase every year

Repairs and Maintenance 2% increase every year

Utilities 3% increase every year

Miscellaneous 2% increase every year

6. Accrued expenses will include the following.

Increase Php.1000 every 2 years.

SSS and Philhealth One month bill

Light and Power One month bill

Water One month bill

Withholding Tax One quarter payment

VAT Payable One quarter payment

7. Selling price per drinks will increase by Php1.00 every two year.

2016 2017 2018 2019 2020

Coke Php.13 Php.13 Php.14 Php.14 Php.15

Sprite Php.13 Php.13 Php.14 Php.14 Php.15

Royal Php.13 Php13 Php14 Php14 Php15

8. Cost per drinks will increase 2% every two years.

2016 2017 2018 2019 2020

Coke Php.10.42 Php.10.42 Php.10.63 Php.10.63 Php.10.84

Sprite Php.10.42 Php.10.42 Php.10.63 Php.10.63 Php.10.84

Royal Php.10.42 Php.10.42 Php.10.63 Php.10.63 Php.10.84

9. Inventories are available during the first quarter of the year while the remaining

purchases are budgeted for 3 quarters. Ending inventory in 38% of the total cost

of Direct Materials.

10. Drawings the owner will withdraw an amount half of the net income every

year.

11. The business is Vat registered.

Cost of Machineries, Equipment and Tools

Table 1.

Shows the cost of machineries and equipments that are needed for the operation of

Siomai Pizzazz.

Machineries Equipment

and Tools

Supplier Cost per Item

Steamer(2) Quality Appliance Php.1,744.50x 2

Refrigerator Quality Appliance

Center

Php.15,995

Small tong(stainless) Gloria Bazaar Php.19.75

Long tong(stainless) Gloria Bazaar Php.39.25

Spatula Gloria Bazaar

Total Cost

Php. 8.50

Php. 19,611.50

Furniture and Fixture

Table 2.

Below are the list of furniture and features needed and the cost of each supply.

Furniture and Fixture Supplier Cost per Item

Table(6) L and M Php.2,500

Chair(30) Jumawan Furniture

design

Total Cost

Php.3,800

Php. 6,300

Cost of Supplies

The cost supplies are annually except for the calculator.

Supplies Supplier Cost

Calculator National Book Store Php.549.75

Ballpen National Book Store Php.105.25

Columnar National Book Store Php.59.50

Hand soap Watsons Php.79.99

Drinking Straw Robinsons Php. 172.75

Toothpick Robinsons Php. 43.50

Siomai Plate Robinsons

Total Cost

Php. 157.25

Php. 1,167.99

Siomai Pizzazz

Projected Income Statement

As of December 31, 2016-2020

Sales: 2016 2017 2018 2019 2020

Siomai 854,700 883,575 912,450 941,325 970,200Drinks 229,050 229,050 239,850 239,850 248,850

Gross Sale 1,083,750 1,112,625 1,152,300 1,181,175 1,219,050Less:Cost of

Sale 480,621 490,741.23 503,055.06 513,791.62 524,940.27Gross profit

Less: Operating ExpensesSalaries &

Wages 330,000 330,000 330,000 363,000 363,000Accrued Expenses 8,540 8,540 9,540 9,540 10,540

Rent Expense 12,000 12,000 12,000 12,000 12,000Transportation

Expense 3,600 3,600 3,600 3,600 3,600Advertising

Expense 3,000 3,0060 3,121.20 3,183.62 3,247.30Supplies Expense 2,583.50 2,635.17 2,687.87 2,741.63 2,796.46Utilities Expense 4,871.61 5,017.76 5,168.29 5,323.34 5,483.04

Repairs & Maintenance 15,000 15,300 15,606 15,918.12 16,236.48

Miscellaneous Expense 6,000 6,120 6,242.40 6,367.25 6,494.59Tax &

Licenses 3,000 3,090 3,182.70 3,278.18 3,376.53Depreciation-

Equipment 1,709.30 1,709.30 1,709.30 1,709.30 1,709.30Depreciation-

Building 20,000 20,000 20,000 20,000 20,000Total Selling

& Administrative

Expense 390,304.41 391,072.23 392,857.76 426,661.44 428,483.70Net Income 198,824.59 210,811.54 236,387.18 220,721.94 245,626.03

Siomai Pizzazz

Project Balance Sheet


Assets 2016 2017 2018 2019 2020

Cash 96,557.59 112,338.70 153,156.57 169.953.35 193,878.22Inventory 184,540.04 186,481.67 191,160.92 195,240.82 199,477.30Furniture 5,000 5,000 5,000 5,000 5,000Building 180,000 160,000 140,000 120,000 100,000Equipment 19,544 17,834.70 16,125.40 14,416.10 12,706.80Less: Depreciation 1,709.30 1,709.30 1,709.30 1,709.30 1,709.30Prepaid Rent 24,000 24,000 24,000 24,000 24,000______ Total Assets 507,952.30 513,945.77 527,733.59 519,900.97 533.353.02

Liabilities & Owners Equity

Liabilities: Accrued Expense 8, 540 8,540 9,540 9,540 10,540

Owners Equity: Sunico, Drawing 99,412.30 105,405.77 118.193.59 110.360.97 122,813.02

Sunico, Capital 400,000 400,000 400,000 400,000 400,000Net Income 198,824.59 210,811.54 236,387.18 220,721.94 245,626.03

Total Liabilities & OwnersEquity 507,952.30 513,945.77 527,733.59 519,900.97 533,353.02

ROI Playback Period

Annual Net Income Depreciation Expense

Annual Operating Cash flow

2016 198,824.59 21,709.30 220,533.892017 210,811.54 21,709.30 230,579.182018 236,387.18 21,709.30 254,579.182019 220,721.94 21,709.30 238,351.342020 245,626.03 21,709.30 264,098.85

1,112,371.28 108,546.50 1,207,980.49

Average Annual Net Income:

1,112,371.28/5 = 222,474.26

Playback:

400,000/220, 533.89 = 1.81 or 1 year and 9 months

ROI:

222,474.26/400,000 = .56 or 56%

Siomai Pizzazz

Projected Cash Flow Statement


Cash flow in Operating Activities

2016 2017 2018 2019 2020

Net Income 198,824.59 210,811.54 236,387.18 220,721.92 245,626.03(increase)/decrease

in Inventory -- -- -- -- --Depreciation in

Building 20,000 20,000 20,000 20,000 20,000Depreciation in

Equipment 1,709.30 1,709.30 1,709.30 1,709.30 1,709.30Increase/Decrease

in Accrued Expense -- -- 1,000 -- 1,000

Net Cash provided by

Operating Activities 220,533.89 230,579.18 254,417.24 238,351.35 264,089.85

Purchase of Furniture --

Purchase of Equipment -- -- -- --

Sunico, DrawingIncrease/

(Decrease) in Cash 96,577.59 25,761.11 30,817.87 9,796.78 30,924.87Beginning, Cash -- 96,577.59 122,338.70 153,156.57 162,953.35

Ending, Cash 96,577.59 122,338.59 153,156.57 162,953.35 193,878.22

Financial Ratio Analysis

I. Profitability ratio

2016 2017 2018 2019 2020

Return on Sales

Net Income 198,824.59

210,811.54

236,387.18

220,721.94

245,626.03

/Net sales 609,129 621,883.77

649,224.94

667,383.38

694,109.73

33 % 34% 36% 33% 35%

Gross Profit Rate

Gross profit 1,083,750 / Net Sales 609,129

Return on Assets

Net Income 198,824.59

210,811.54

236,387.18

220,721.94

245,626.03

/ Total Assets 507,952.30

513,945.77

527,733.59

519,900.97

533,353.02

39% 41% 45% 42% 46%

Supply and Demand Schedule

Price Quantity demanded (per day)

Quantity supplied (per day)

30.00 Php

33.00 Php

36.00 Php

39.00 Php

42.00 Php

500 pcs.

440 pcs.

380 pcs.

320 pcs.

260 pcs.

350 pcs.

375 pcs.

400 pcs.

425 pcs.

450 pcs.

42 SUPPLY

39

36

33

30 DEMAND

200 300 400 500

Conclusion

The study proved that the people living in the said location for the Siomai pizzazz

agreed and found out that Siomai Pizzazz will be a very convenient Siomai House for

them because they offer a good quality of Siomai yet can be bought in a very affordable

price. The study showed that Siomai Pizzazz gives a very big help not just to target

market but as well as to the employees and the owner as well.

The study has proven that the proven business is feasible and worth venturing into

through the proper gathering of information from the management, marketing and

technical aspect, as well as in the systematic financial computation to get the designed

output for the proposed business.

References

Books and Websites

James White Encyclopedia of Small Business

Michael Bryant, Essentials of Entrepreneurship and Small Business

Management

Gregory Kelly, The Foundation of Entreprenuership

Peter Smith, Entrepreneur`s Guide:Starting and Growing a Business

Peter Drucker, Innovation and Entrepreneurship

http://www.entrepreneur.com/encyclopedia/sole-proprietorship

http:// https://www.google.com.ph/webhp?sourceid=chrome-

instant&ion=1&espv=2&ie=UTF-8#q=technical%20aspect%20of

%20feasibility%20studywww.entrepreneur.com/

http://www.slideshare.net/wualankcloy/feasibility-study-marketing-

technical-and-management-aspect

http://en.wikipedia.org/wiki/Feasibility_study

http://en.wikipedia.org/wiki/Feasibility_study

http://www.slideshare.net/wualankcloy/feasibility-study-marketing-technical-and-management-aspect

http://www.slideshare.net/wualankcloy/feasibility-study-marketing-technical-and-management-aspect

http://www.entrepreneur.com/



http://www.entrepreneur.com/encyclopedia/sole-proprietorship

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