Economic Survey

I.

a. Proposed Name: Oikos Christian Network Multipurpose Cooperative

b. Kind of Cooperative: Multipurpose Cooperative

c. Member Group: Christian Communities

d. Address of the Cooperative: Karuhatan, Valenzuela City

e. Number of Original Members: 50

f. Proposed Number of Increase Membership for 1st year and the following years:

First Year : Five Hundred ( 500 )

Second Year : One Thousand ( 1000 )

Third Year : Three Thousand ( 3000 )

The names, nationalities and mailing addresses of its Cooperators. The board of directors and members of different committees.

Names of Directors Nationality Address

Names of Management Staff

I. Common Bond of Membership

The members of the cooperative shall be Filipino Christian community residing at Valenzuela city, Metro Manila, Philippines.

II. Objectives of the Cooperative

a. Primary Objective: To make the lives of the Christian community more productive and prosperous and achieve quality of life

b. Secondary Objective: To create a culture of social capitalism, people empowerment, spirit of cooperativism and transform the lives of the community at large.

c. Proposed Business : ( mini-grocery or Sari-sari store , Coffee vending machines, market vendors loan, micro-financing and marketing computer accessories and customized USBs)

III. Economic and Technical Conditions Regarding the Business

a. Are there other organizations (like your cooperative) in your proposed area that offer the same products and services your cooperative will be offering?

Yes. The Karuhatan market is the venue, some cooperative exist around are engaged more on credit and financing, banking and none of them has a mini-grocery and vending machines.

1. The mini-grocery or sari-sari store will be rented on the heart of Karuhatan market which is strategic for more members of the cooperative and its office. The Store will be patronized and publicized. The COOP will be supplied volumes of grocery items on consignment basis. More items are priced identical and/or lower than Puregold Valenzuela , Puregold is known as the cheapest grocery mall of the town.

2. Coffee vending machines are stationed in the market place but our machines will be positioned near the stop light, we will place 4 machines on 4 corners of the streets where market, schools , TODA , hospitals , schools and business firms are located.

Pls see Vending Machine FS below:

3. The Marketing Business ( Customized USB and Computer Accessories )Marketing Capital = 65,000.00

b. How many employees are there and where will the cooperative get the people needed to run the business?

The cooperative will have 7 employees and they will come from qualified residents of the city.

c. What machinery/equipment will the cooperative need to run its business?

The equipment needed to run are tables, chairs, computers, Adding machine, electric fans, telephones.

Vending machines cost 15K each only. We will buy 4 machines. The magic is : when we reach certain required kilos of coffee, mocca and choco – the merchant will continue to supply a brand new machine which is free of charge.

d. Do the officials/employees/members need special training to be able to run the business of the cooperative?

Basic training to the Gen. manager, on simple accounting, staff and online marketers or Virtual Assistants.

e. Considering the present situation in your area, explain how the cooperative will succeed in running its business?

Our store shall be patronized by the members and the public and products will enter into consignment basis from a factory, sell grocery goods in large amount at reasonable prices. The store shall be located strategically, accessible.

Second, our vending machines are without maintenance, no large competitions, no need for an employee to manage, income is on a daily basis with less operating cost a day.

Third, lending goods to market vendors by 5% interest rate only instead of 10 or 20% i.e. Bombay. The interest is really attractive to market vendors.

As per marketing USBs and computer accessories, the supplier supplies the gadgets and accessories direct from China. There were no cooperatives doing the business on our locality. As per bidding, we can win over competitors nationwide since we do not pay taxes as cooperative compared to corporation/s or companies.

IV. Financial Aspect

a. Where and how will the cooperative get its capital to run a business?

From the contribution of each member.

b. How much is the cooperative expected to earn during the first year of operation?

Projected Annual Income with Capitalisation of 400,000.00 – Initial Capital from 200 members alone. Our projected membership for a year’s operation is 500 .

b.1 Vending Machine :

Conservative Figures each machine will earn 57,120 x 4 machines = 228,800. Based from 175 net income per day. Pls see FS below:

Take Note : We can generate additional branded machines by patronizing the merchant’s products which is free of charge

b.2 Sari-sari store : Capitalization – 75K

Store will earn 144,200 annually based from conservative daily income of 500 pesos only.

b.3 Market vendor’s lending : Start up cap say 20,000.00

We will lend 20K worth of goods payable in one month with just 5% interest , thus;

We earn 1000 per month x 12 months = 12,000.00

b.4 Marketing Customized USBs and computer accessories

A. Capitalization – 65,000

B. Capital Expense 1. 2 computers = 10,0002. 4 Sun Telephones = 5,0003. Working capital = 50,000.00

3.a Monthly Gross Income – 100% ROI and 100% income but 30% goes to Supplier

Income is 70% of 50K = 35,000.00

Therefore,

4.a Annual Income is 350,000.00

Note : ( No Income on the 1st two (2) months due to Client’s Prospecting and Online Promotion

5.a Monthly

Therefore : The COOP earns 742,800 a year.

Or 2,063 per day or 61,900.00 per month .

TAKE NOTE AGAIN; Income from other business enterprises are not counted yet such as Capitalization coming from daily savings deposits, micro-financing program coming from grants/government loans , donations, mission fund or mission campaign, etc.

Projected Annual Expense :

b.1 Personnel Allowance :

Gen. Manager – 100 a day or 3000 monthly

Store Manager – 100 a day or 3000 monthly

Collection Officer – 80 per day or 3000 monthly

Bookeeper - ( part-time ) 25 per day or 600 monthly

Total of 9600 per month x 12 month = 115,200

b.2 Monthly Maintenance:

Office and Store Rental : 7000 or 233 per day

Billing : 1500 or 50 per day

b.3 Honorarium : ( Maybe effective after 6 months operation )

9 cooperators plus 5 committee chairman for 300 pesos each a month during co-operators monthly meeting . Total of 4200 per month. However, honorarium shall be entitled to those present on the meeting only.

b.4 Training Cost : ( covered by our safety net procedures )

TOTAL ; 22,300.00 Monthly Expense

Vis-a-Vis our Monthly Net Income of 61,900.00 =

39,600.00 COOP MONTHLY NET INCOME OR

475,200 ANNUAL INCOME

i.e. 210 % of interest income

c. How much will the cooperative need to run its business during the first year?

P 100,000.00 on its 1st year, P 2,500,000.00 on its second year? P 6,000,000.00 on its third year?

i.e. Based from my membership projection ;

First Year : Five Hundred (500)

Second Year : One Thousand (1000)

Third Year : Three Thousand (3000)

d. Is the cooperative planning to invest? If yes, what investment and when?

Yes. The cooperative plans to build its own building, probably after five (4) years of operation . Next year, We will consider Mutual Fund Investment, Bonds and Equities , Franchising businesses like Generic/Branded pharmacy on its second year of operation; Computer Center, Micro-financing, etc.

V. Structure and Management

a. Who will be assigned to manage the daily operations of the cooperative?

There will be 6 full time members whom we will pay to manage the cooperative.

b. How many people will compose the cooperative’s Board of Directors?

Ten (10)

c. What will be the role of the Board of Directors?

The Board of Directors will manage all the activities of the cooperative and provide the rules according to the Bylaws.

d. Will the cooperative have an audit committee? Yes

e. Will the cooperative have a credit committee? Yes

f. Will the cooperative pay an accountant/bookkeeper? No

g. What will the salary of the following personnel be?

1. General Manager – 3000.00 per month

2. Store Cashier – 3000.00 per month

3. Collector – 3000.00 per month

4. Bookeeper - 600.00 per month ( part time )

FS of Vending Machines:

1. Total Initial Investment

Products Packing Unit Unit Price AmountCoffee Vending Machine  1 unit 1 15,000.00 15,000.00Barista Choi Coffee Powder  1 kilo/pack 1 240.00 240.00Barista Choi Choco Powder  1 kilo/pack 1 240.00 240.00Barista Choi Mocha Powder  1 kilo/pack 1 240.00 240.00Barista Choi 6.5oz Paper Cups

 2,000 cups/case 1 1,400.00 1,400.00

Total Initial Investment

17,120.00

 

2. Cost per Cup

Consumables/Supplies CostingCost per

cupBarista Choi Coffee, Choco or Milk Powder

 Php 240.00/kilo makes at least 100 cups 2.4010 grams mix per 125 ml of water

Barista Choi 6.5oz  Php 1,400.00/case has 2,000 paper cups 0.70Distilled Water 5 gallons

 Php 25/5gallons makes 151 cups of 125ml

0.15

Electricity Consumption

 Php11/12 hrs that feeds 200 cups 0.05

 Total cost per cup 3.30

 

3. Computation of Profit

Selling priceif                     Php 5.00Total cost per cup -            3.30

Gross profit per cup Php 1.70Estimated no. of cups sold per

dayif                 x  100

cupsGross profit per day Php170.00/day

No. of days per month x    30 days    Note:

Gross profit per month Php 5,100.00/monthmonthly gross profit depends on the no.of cups sold per day

 

4. Return of Investment

Total Initial Investment Php 17,120.00Gross profit per month   /    Php   5,100.00estimated Return of Investment

3 to 4 months   : return of investments depends on the gross profit per month

Specifications of the machine:

Canister no./capacity: 3 x 1.6 kilos each (3 varieties of hot beverages) Electronic sales recording and resetting of each canister. Automatic setting of water, temperature, powder. Automatic cup dispensing or choose to provide cups manually. Cup capacity is 62 cups (6.5oz paper cup) Machine Size 300(W)*480(D)*630(H) 2.7 liters of water inside reserve tank. Recognizes 5 peso coin and able to set from free, 5, 10, 15, 20, 25, 30pesos/cup..... by 5 Electrical Power : 220v 820watts

Submitted by: ptr cris

Position: Chairman of the Board of Directors