Sqweeky

Presented to the
Accountancy Department
De La Salle University - Manila

In partial fulfillment
Of the course requirements
In ACCOB1

He, Adel John P.

Julio, Alfred Jan Michael Yap
Kwok, Nikolas
Ty, Bryan Kendrick Pua
Chapter I
The Background of the Partnership Business

1.1 The Name of the Partnership

The name Sqweeky is derived from the word “squeaky”, and it is defined as a
high pitched sound. Normally, this is associated with the sound a surface makes when it
is very clean and shiny, hence, “squeaky clean”. We wanted to give it a very fun name
and something memorable and really ingrained in people. At the same time, we would
like to give the impression to our customer that our product, combined with technology,
can bring cleanliness and convenience at the same time.

As for the logo inspiration, we wanted to have a very cartoonish look as we are
trying to emulate something childish, or something fun. The reason for that is that we
believe that being clean should not be merely a menial task that could take a long time,
and that it should be fast, convenient and easily accessible. Those two stars on each
end of the letter “S” and “Y” symbolizes the very cartoonish effect of gleam after every
clean surface while at the same time, stars also symbolize excellence and positivity. We
went for the color blue as blue is the color for cleanliness and purity. Last and not the
least are those two hands reaching for the sky. It takes inspiration from the saying,
“Cleanliness is next to Godliness”. The partnership holds the belief that being clean and
pure at the same time brings us closer to God.

In Cleanliness We TrustⓇ
 The partnership has always believed in the importance of staying clean. As
mentioned, we believe that staying clean is also to be near God. Our motto is a play on
the famous phrase, “In God We Trust'', which is also the official motto of the United
States of America. We put our faith in the importance of staying hygienic which can
boost self-esteem and also lead to a better society.

1.2 Identification of the Partnership

The business is to be identified as a partnership which consists of 4 college
students, all with degrees related to business and finance. It is agreed upon that the
business consists of general partners, hence, making this a general partnership.

Table 1. Names, Addresses, and Position of the Partners

Name Address Class Position

Adel He San Juan General Partner Chief Financial

Officer

Alfred Julio Manila General Partner Advertising

Manager

Nikolas Kwok Taguig General Partner Marketing Manager

Bryan Ty Quezon City General Partner Operations

Manager

1.3 Effective Date of Partnership

The Sqweeky. was founded on May the 10, 2021 with the co-signing of the
respective general partners, Adel He, Alfred Julio, Nikolas Kwok and Bryan Ty. The
partnership is established with the Articles of Co-Partnership of Sqweeky. with the terms
and conditions discussed and agreed upon. The effective date shall be determined once
the partnership has garnered enough personal capital, with the sponsorship of some
angel investors, to purchase the required raw materials and finance for marketing and
recruitment.

1.4 The Purpose and Principal Place of Business of the Partnership

Purpose
 The business was first conceptualized as a means to target the needs of the
masses during the COVID 19 crisis that has very much defined the year 2020 and the
earlier months of 2021. With the increased demand of contactless service, Sqweeky.
aims to be a pioneer of contactless hygiene providers so as to reduce the spread of the
virus. This is also done to cut out the middleman that leads to the reduction of the cost of
the supplies so that more people would be able to afford it.

Of course, the purpose would also have to go beyond pandemic. We believe that
the integration between technology, artificial intelligence and hygiene will significantly
improve the lives of our customers by targeting 3 goals: customer satisfaction, speed
and convenience. This is achieved through collecting data that is granted to us by our
customers to study their behaviors and patterns to provide the best experience for the
customer as they go on and proceed with their daily care routine.

We believe that the goal of our business in general could possibly revolutionize
the entire hygienic market as a whole as it stayed stagnant for a while without much
major breakthrough innovation with the hygienic appliances or the hygienic space.
Through this, not only will we bring ecological change, by using technology to reduce
water consumption and to possibly reduce the amount of chemicals from soap and
shampoo that goes to the ocean, we will also bring social change by introducing
educational programs and charity that aims to increase clean water consumption and to
reduce open-space defecation.

Place
The projected headquarters of our business will primarily be located in Ayala,
Makati as it is more well known as the business center of the Philippines. All important
business affairs such as negotiations, acquisitions, everyday office work, designing of
the product and marketing plans would be done in Makati. In terms of production and
testing of the appliances, it would strictly be made in the Philippines so as to stimulate
economic growth. As to where the factories and plants would be built, we would have to
do further research since there is limited information on the prices of renting or building a
factory itself.
1.5 Investments of the Partners
Knowing that the business will involve machinery, technicalities and acquisition of
supplies, the capital needed would be relatively significant for 4 college students, so, to
raise capital, Sqweeky and Co. would be gathering investments from prospective
investors.

But, to detail the investment from the partners, which can include cash and non-cash
assets, below shall be the initial investment for the company.

Table 2. Breakdown of the Investments of the Partners of Sqweeky Clean

Partners Cash Non-Cash Capital Ratio Total

Investment Investment Investment

Adel He 70 000 30 000 25% 100 000

Nikolas Kwok 70 000 30 000 25% 100 000

Alfred Julio 70 000 30 000 25% 100 000

Bryan Ty 70 000 30 000 25% 100 000

1.6 Allocation of Profits and Losses

The partners have discussed and agreed that the distribution of profits and
losses for He, Julio, Kwok, Ty will be 1:1:1:1, respectively. As the investments, the skills,
and abilities of each partner are equal; thus, profit and losses are divided equally.

1.7 Rights and Duties of Each Partner

Sqweeky aims to uphold the rights and responsibilities of the partners. The
partners have discussed and agreed on the following terms and conditions, in
accordance with the civil code of the Philippines, from articles 1767 to 1867.

The following are Rights of the Partners:

I. All partners have an equal right to participate. Each partner has the right to
share, contribute, and vote for the good of the company.
 II. All partners have the right to share profit. Each partner has the right to receive
fair profit distribution in relation to their investment.
III. All partners have the right to co-ownership of all property. All partners have equal
rights to all property in the partnership.
IV. All partners have a right to be notified and consulted before any major decisions
are made.
V. No new partner can be admitted into the partnership without the consent of all
partners.
VI. The property of the firm shall be held and used strictly for the business.
VII. Major decisions made by the partners should require a majority vote of three
partners and above. If an impasse has been reached, further debate and
consultation until three votes are reached should be done.

The following are Duties of the Partners:

I. Assets may only be used for business related purposes, private and personal use
is forbidden.
II. Personal profit from the business is not allowed, all profits should be distributed
fairly to each partner in accordance with their investments.
III. All information regarding the business must be shared, no concealment between
partners should be done.
IV. A partner must provide true and accurate business records.
V. A partner is bound to act within the scope of his authority.
VI. A partner must compensate for any loss suffered due to fraudulent behaviour.

1.8 Condition for Partners’ Withdrawal of Assets

The partners have agreed to the following conditions for the partners’ withdrawal
of their respective assets:
1. Once a partner decides to withdraw their assets, all partners that remain should
be informed two (2) weeks before the effective date of withdrawal of that said
partner with a signed and written consent form approved by the partners that
remain.
The unauthorized withdrawal of a partner without a written approval by the
remaining partners is not allowed.
 2. The partner that chose to withdraw their share is forbidden to work for a close
competitor of the company to avoid the possible leakage of private information
Sqweeky.

1.9 Manner of Keeping Books of Accounts

The manner of keeping the books of accounts of Sqweeky shall correctly record
all the transactions in the book of accounts of the company, record all the receipts and
expenditures during the whole period of the partnership. The partners can easily access
the books of accounts of the company through a view only document for transparency
among partners. The books of the company will be safely kept digitally and hand -written
and the books shall be checked by the financial department to make sure there are no
mistakes recorded in the books and it is accurately written.

1.10 Dissolution Decision Making

The dissolution of the partnership will be decided through a voting system in
which the dissolution will only be granted if the majority of the members voted to dissolve
the partnership. The partner that wishes that the dissolution occurs should state their
intent or reasons in a written statement that will then be distributed among partners for
transparency. In cases of some unforeseen circumstances that may occur such as a
death of a partner, the dissolution of the partnership shall automatically take place.

1.11 Arbitration in Settling Disputes

To ensure the privacy and confidentiality of the partners involved, Squeeky
Clean’s Arbitrary clause will prevent disputes from reaching the court. Instead, the
clause shall legally bind the involved parties to resolve disputes in private, so as to
protect the name and reputation of the partners and restrict the possible involvement of
the public and the media. The arbitrator will be hired from an external firm, and will
decide on a non-disputable solution based on the evidence and information given.
Before the arbitration may take place, all parties and the arbitrator must agree to the
procedure. The arbitration, should one occur, will take place in the main office of
Squeeky Clean partnership in Ayala, Makati.
1.12 Detailed Description of the Product
Given that the COVID-19 cases in the Philippines are once again on the rise,
Squeeky Clean aims to provide its customers with a clean, hygienic, and accessible way
to obtain products that help stop the spread of the virus. The product that Sqweeky will
produce is a fully automated vending machine that offers a wide array of hygiene
products to help consumers stay safe and combat the spread of the virus. The vending
machine will include surgical and M3/n95 masks, 60ml bottles of alcohol, boxes of
tissue, and packs of wipes.

Design of Product

The price of a vending machine per unit in the Philippines is around PHP 60,000
to PHP 70,000. But there would be needed customization so as to provide competitive
advantages. Below are the necessary innovations we think that could give us
advantages.
UV Lights
The vending machines will have built-in ultra violet lights that are placed directly
above the keypad in order to kill germs and eliminate traces of COVID-19. This will
ensure that consumers will be able to use the machine without having their safety and
hygiene compromised. The ultra violet lights will also be placed inside the flap
compartment as it will be frequently touched by customers along with the keypad.

Built-in Camera
A camera will be installed within the vending machine to monitor if customers are
following proper hygiene procedures. It will also ensure that the partnership will be able
to detect if the machine is damaged or if some products are stolen.

We will be placing the vending machines in Quezon City, as it is one of the

places in the Philippines that is most affected by the COVID-19 virus. The vending
machines will be specifically placed in bus stops around Quezon City to maximize the
amount of exposure, whilst also avoiding competition such as drug stores and
convenience stores. By placing the machines around bus stops we hope that people will
use our product since it both offers the same items that are cheaper than those sold in
stores, and is easily accessible for people who are on the go.
Chapter II
Partnership Strategic Planning

2.1 Vision Statement

We believe in the power of innovation and we are confident that Sqweeky can
bring about positive change to our customer’s lives and be a trusted brand for hygiene.

2.2 Mission Statement

Our mission is to enhance the experience of customers when it comes to
hygiene, but at the same time, Sqweeky aims to reduce water waste, consumption and
the chemicals from hygienic products that are damaging the environment.

2.3 Strategic Objectives

a. Customer
i. To enhance the customer experience by introducing innovation that could
enhance their lives and by having attention to detail that further satisfy our
customer
ii. To target more markets by making different options of our appliances and
overall service more accessible and more affordable to the common man.
iii. To develop relationships with customers by offering optional maintenance
checks yearly for free, by introducing educational programs that aim to
educate on the importance of hygiene on hard-to-reach areas and by
providing sanitary toilets to the marginalized.
b. Financial
i. To be very transparent and accurate when it comes to releasing our financial
statements so as to uphold our company’s integrity with our shareholders.
ii. To reduce the cost of manufacturing our appliances and our services while
maintaining the same quality.
iii. To be very realistic with our profitability goals.
iv. To expect losses in the first few months of operations and make back up plans
to minimize the damage if it gets worse.
c. Internal
i. To value each and every employee in our company by providing comfortable
wages and by not abusing worker’s rights
ii. To encourage creativity and innovation among employees
 iii. To value the important of brutal honesty as we believe in the importance of
transparency

2.4 SWOT Analysis

Table 3. SWOT Analysis of Sqweeky Clean

Strengths Weaknesses

● Products are useful and ● As it is a startup business there is

convenient for customers. limited capital.
● Products are affordable, and cater ● Partners have limited resources.
to the lower to middle classes. ● As the partners are still new, thus
● Offers multiple products that are they have little business
useful, whether during or after the experience.
pandemic. ● New business so there is no
established reputation or identity
yet.

Opportunities Threat

● High demand for sanitation ● Multiple competitors in the field.

products. ● Lack of reputation may lead to less
● Increasing need of convenience consumers.
for sanitary products. ● Lack of experience in the field so
● There is a new normal standard unforeseen problems may occur.
that is an ideal situation for the
product.

The business has its strengths and weaknesses. An example of one strength is
its convenience for consumers; because of the location and availability of the product,
consumers would not need to look for the nearest convenience store and can easily
purchase products. Products are also affordable and cater to the middle and lower
classes, as such, people can easily buy sanitary products while in public locations. The
company also sells multiple products that are useful during or even after the pandemic,
these items are useful and important in everyday life thus garnering multiple consumers.
Some weaknesses of the business are that it is a new business so there are still limited
funds and assets, as the partners are still new they may be inexperienced when a
pressing issue arises, and the business lacks reputation or identity yet making
consumers less inclined to trust the business.

The business also has multiple opportunities and threats. Some opportunities of
the business are that currently there is a high demand for sanitation products,
furthermore, when the pandemic ends society will still have to adapt to a new clean
normal so sanitary products will still be in demand; unlike before, people need a more
convenient option to be able to buy sanitary products, thus, the product and its location
is an ideal machine for the new normal. Some threats to the business are there are
multiple competitors in the field such as UnicornHygienics etc., there is a lack of
reputation which would lead to less consumption, and lack of experience in handling
sudden unforeseen problems which may result in negative outcomes.

2.5 PEST Analysis

Table 4. PEST Analysis of Sqweeky Clean

Political Economic

● Presidential Decree No.856 is the ● Value of Isopropyl alcohol is

Code on Sanitation of the expected to grow to an annual rate
Philippines. One of the main of 8.2% in 7 years. Market
purposes of the P.D. is to maintain demand for alcohol was around
public health and monitor the 2.66 kilotons in 2020.
sanitation level of businesses. ● There was a large negative
impact on the economy because
of the pandemic.

Social Technological

● 9 out of 10 Filipinos wear masks ● A study tackled the possible

when in public. benefits of vending machines in
● DTI and DOLE implemented supplying the necessities of
guidelines that mandated people society.
to wear masks.
● Double masking helps reduce rate
of COVID

Political
P.D. 856 is the Code of Sanitation of the Philippines, it helps monitor, maintain, and
improve the health of the public and businesses. It contains a series of laws that tackle
all the necessary levels of sanitation for different types of business to operate, to keep
the general public safe from any infections, pollution, etc. (Lawphil Project, n.d.)
Sqweeky Clean shares the ideals of the decree and aims to uphold the values of P.D.
856 and to help maintain and improve the health of the public. Through the ease of
access to sanitary products, it aims to provide and remind the public to always keep safe
and clean from viruses and diseases.
Economic
As the pandemic continues, the demand for sanitary products quickly grew, things such
as masks, alcohol, tissues, etc. were increasingly in high demand. In a research report, it
was expected that the value of isopropyl alcohol would grow to an annual rate of 8.2%
from 2020 to 2027, it was also estimated that the market demand for alcohol was around
2.66 kilotons in 2020. (Grand View Research, 2020) Although market demand for
sanitary products was high, the pandemic largely affected the economy negatively; the
pandemic has led to a decline in tourism, transport, exports, consumption, etc. (NEDA,
2020) Sqweeky Clean hopes to counteract this by maximizing the demand of the
sanitary products to help stabilize the economy.

Social
In a survey, it was estimated that during the pandemic around 9 out of 10 Filipinos would
wear masks while outside; (Sanchez, M., 2020) As it was mandated by DTI and DOLE
that people should wear masks to avoid risk of infection, and to reduce the risk of
spreading the virus. (DTI, 2020) To reduce the risk it was found that double masking
actually increases the effectiveness of masks. (Berg, S. 2021) Sqweeky Clean aims to
help normalize the new normal by selling masks to promote social interactions.

Technological
In a study, the benefits of vending machines in supplying femine hygiene products. It
explained how vending machines would provide convenience for women in need of
pads, tissues, etc. (Yunita, A., 2019) Sqweeky Clean builds on this concept and wants to
provide convenience to the public in need of sanitary products.
Chapter III
3.1 Partnership Organizational Chart

3.2 Job Description and Reporting Authority

Table 5. Job Description and Reporting Authority of Sqweeky Clean

Position Reports To: Job Description

General Manager The General Manager serves as the head or top

executive of the company and is responsible for
allocating the budget, formulating policies,
coordinating business operations, monitoring and
encouraging staff. The general manager is also
responsible for overseeing the whole business if every
aspect of the business is doing their jobs correctly.

Marketing Manager General The marketing manager is responsible for researching

Manager and analyzing the market, overseeing all the creation
of promotional materials and marketing campaigns to
improve the sales of the company, and also report
marketing and sales results to the general manager.

Operations Manager General The operations manager is in charge of managing

Manager stock control, checking inventory,checking the overall
quality of the product, keeping an eye on the budget,
and also checking if there are budget changes.

Purchasing Manager Operations The purchasing manager is in charge of negotiating

Manager the prices for all of the materials needed for production
of the product and also ensures that the quality of the
 materials are worth it for the price and also within the
budget for raw materials.

Customer Service Operations The customer service manager must provide quality
Manager Manager service to the customers and answer all the inquiries
of the customers in case of problems with the products
being sold by the company and make sure that all the
requirements of the customers are met completely.

Finance Manager General The finance manager is in charge of the funds of the
Manager company and makes sure that all assets and equity
are recorded correctly and liabilities are paid on time
and fully. He is also responsible for interpreting
financial information and for thinking of strategies for
the long-term financial benefit of the company.

Accountant Finance The accountant is tasked to prepare financial

Manager statements, create the payroll, calculate tax returns
and payments, audit and check the financial
information provided to him, and analyze the accounts
and business plan of the company.

Advertising Manager Marketing The advertising manager is in charge of directing the

Manager company’s advertising activities and supervising staff
members to develop creative, interesting, and
consistent specific ad campaigns.

Human Resources General The human resources manager is in charge of

Manager Manager handling the employees of the company. He oversees
the recruiting, hiring, and interviewing of new staff if
they are fit for the job. He also plans, directs, and
coordinates the administrative aspect of an
organization.
Chapter IV
Partnership Marketing Planning

4.1 Target Market

The primary target market of our Sqweeky Vending Machine would be the
essential workers. We believe that they are our target market as they are the highest at
risk when it comes to transmitting the virus, so it is essential that they get the most
protection at any place and at any time. These essential workers include the “dry and
wet market vendors, frontline government workers, frontline workers in financial sectors,
priests and religious leaders, construction workers, workers in manufacturing for food,
beverages, medical and pharmaceutical products, transport services.” (CNN, 2021). We
also believe that there is a huge market in the Philippine as 9 out of every 10 Filipinos
wear masks, while at the same time, practice washing their hands by using soap and the
necessary protection using alcohol (DOH, 2020 in Magsambol, 2020).

4.2 Location Place Strategies

To gain a more established identity and attract consumers, Sqweeky plans to
place these machines right before public venues such as bus areas, LRT and MRT
stations, taxi stops and many more. The reasoning behind this is to avoid the risk of
spreading the virus indoors. Transport areas such as bus areas, LRT and MRT stations
are used as it serves a wide variety of possible consumers who travel daily.

4.3 Promotion Strategies

As the pandemic continues, society has adapted to the situation through social
media, proper sanitation precautions, etc.; To properly promote the product, the plan is to
create pubs, ads, and short promotional videos in social media platforms such as
Facebook, Instagram, Twitter, and Youtube to be able to appeal to online customers. For
public areas, the plan is to put up posters and ads to further entice customers, and finally
Sqweeky has prepared an informative demonstration and proposal for business partners
and potential investors.
 4.4 Projected Units Sold
As Sqweeky started its services in mid 2021, the starting months shows a slow
rise in units as the vending machines gain reputation and

Table 6. Projected Units Sold for Sqweeky Clean from Jun 2021 to May 2024
Sqweeky Clean
June 2021 to May 2022

Products Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Surgical Masks/ 1
2755 3025 3362 3687 4034 4521 4874 4990 5205 5430 5600 5820
piece

Surgical Masks/ 1
875 1173 1443 1500 1640 1780 1860 1990 2050 2200 2350 2455
box

N95 masks/ 1 piece 323 514 670 750 825 870 895 930 964 992 1020 1075

60ml bottle of
2188 2474 2734 2895 2960 3082 3148 3396 4070 4206 4698 4986
alcohol

Wipes 568 685 792 894 965 1000 1140 1200 1290 1380 1464 1572

Tissues 1986 2114 2305 2390 2685 2900 3100 3350 3600 3770 3950 4230

Monthly Unit Sales 8695 9985 11306 12116 13109 14153 15017 15856 17179 17978 19082 20138

June 2022 to May 2023

Products Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Surgical 5890 5900 6100 6210 6290 6360 6400 6500 6580 6640 6690 6750
Masks/ 1
piece

Surgical 2500 2550 2590 2630 2680 2730 2800 2850 2895 2920 2960 2975
Masks/ 1 box

N95 masks/ 1100 1150 1200 1270 1310 1340 1400 1430 1465 1520 1560 1580
1 piece

60ml bottle 5000 5100 5190 5250 5290 5340 5390 5420 5530 5600 5640 5680
of alcohol

Wipes 1700 1790 1850 1940 2000 2070 2130 2175 2200 2290 2340 2360
Tissues 4300 4400 4500 4590 4660 4690 4720 4780 4860 4890 4910 4930

Monthly Unit 20490 20890 21430 21890 22230 22530 22840 23155 23530 23860 24100 24275
Sales

June 2023 to May 2024

Products Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Surgical
Masks/ 1 6700 6680 6600 6550 6530 6510 6500 6460 6400 6370 6350 6320
piece

Surgical
2950 2930 2910 2900 2895 2890 2880 2875 2850 2830 2820 2810
Masks/ 1 box

N95 masks/
1570 1560 1550 1530 1515 1505 1500 1490 1480 1460 1450 1435
1 piece

60ml bottle
5670 5660 5625 5615 5600 5595 5570 5560 5550 5520 5500 5470
of alcohol

Wipes 2340 2320 2310 2300 2295 2270 2255 2210 2200 2150 2120 2100

Tissues 4900 4870 4850 4830 4815 4800 4780 4765 4755 4730 4710 4680

Monthly Unit
24130 24020 23845 23725 23650 23575 23485 23360 23235 23060 22950 22815
Sales

Table 7. Annual Units Sold for Sqweeky Clean

Annual Units Sold

Total Units
Products First Year Second Year Third Year Sold
Surgical Masks/ 1 piece 53303 76310 77970 207583
Surgical Masks/ 1 box 21316 33080 34540 88936
N95 masks/ 1 piece 9828 16325 16610 42763
60ml bottle of alcohol 40837 64430 66935 172202
Wipes 12950 24845 26870 64665
Tissues 36380 56230 57485 150095
Annual Units Sold 174614 271220 280410 726244
4.5 Projected Sales
The following tables are the projected sales of Sqweeky for its first three (3) operating
years, given the selling price of each product.

Table 8. Projected Sales for Sqweeky Clean for Year 1

Projected Sales
Sqweeky Clean
June 2021- November 2021 (6 months)

Products Price June July August September October November

Surgical
Masks/ 1 ₱2 ₱ 5510 ₱ 6050 ₱ 6724 ₱ 7374 ₱ 8068 ₱ 9042
piece

Surgical
Masks/ 1 ₱ 84 ₱ 73500 ₱ 98532 ₱ 121212 ₱126000 ₱ 137760 ₱ 149520
box

N95
masks/ 1 ₱ 110 ₱ 35530 ₱ 56540 ₱ 73700 ₱ 82500 ₱ 90750 ₱ 95700
piece

60ml
bottle of ₱ 25 ₱ 54700 ₱ 61850 ₱ 68350 ₱ 72375 ₱ 74000 ₱ 77050
alcohol

Wipes ₱ 35 ₱ 19880 ₱ 23975 ₱ 27720 ₱ 31290 ₱ 33775 ₱ 35000

Tissues ₱ 15 ₱ 29790 ₱ 31710 ₱ 34575 ₱ 35850 ₱ 40275 ₱ 43500

Monthly
_ ₱218910 ₱ 278657 ₱ 332281 ₱ 355389 ₱ 384628 ₱ 409812
Sales

Projected Sales
Sqweeky Clean
December 2021- May 2022 (6 months)

Products Price December January February March April May

Surgical ₱2 ₱ 9748 ₱ 9980 ₱ 10410 ₱ 10860 ₱ 11200 ₱ 11640

Masks/ 1
piece

Surgical ₱ 156240 ₱ 167160 ₱ 172200 ₱ 184800 ₱ 197400 ₱ 206220

Masks/ 1 ₱ 84
box

N95 ₱ 98450 ₱ 102300 ₱ 106040 ₱ 109120 ₱ 112200 ₱ 118250

masks/ 1 ₱ 110
piece

60ml ₱ 78700 ₱ 84900 ₱ 101750 ₱ 105150 ₱ 117450 ₱ 124650

bottle of ₱ 25
alcohol

Wipes ₱ 35 ₱ 39900 ₱ 42000 ₱ 45150 ₱ 48300 ₱ 51240 ₱ 55020

Tissues ₱ 46500 ₱ 50250 ₱ 54000 ₱ 56550 ₱ 59250 ₱ 63450

₱ 15

Monthly ₱ 429538 ₱ 456590 ₱ 489550 ₱ 514780 ₱ 548740 ₱ 579230

_
Sales

Table 9. Projected Sales for Sqweeky Clean for Year 2

Projected Sales
Sqweeky Clean
June 2022- November 2022 (6 months)

Products Price June July August September October November

Surgical ₱ 11780 ₱ 11800 ₱ 12200 ₱ 12420 ₱ 12580 ₱ 12720

Masks/ 1 ₱2
piece

Surgical ₱210000 ₱ 214200 ₱ 217560 ₱ 220920 ₱ 225120 ₱ 229320

Masks/ 1 ₱ 84
box

N95 ₱121000 ₱ 126500 ₱ 132000 ₱ 139700 ₱ 144100 ₱ 147400

masks/ 1 ₱ 110
piece

60ml ₱125000 ₱ 127500 ₱ 129750 ₱ 131250 ₱ 132250 ₱ 133500

bottle of ₱ 25
alcohol

Wipes ₱ 35 ₱ 59500 ₱ 62650 ₱ 64750 ₱ 67900 ₱ 70000 ₱ 72450

Tissues ₱ 64500 ₱ 66000 ₱ 67500 ₱ 68850 ₱ 69900 ₱ 70350

₱ 15
Monthly ₱591780 ₱ 608650 ₱ 623760 ₱ 641040 ₱ 653950 ₱ 665740
_
Sales

Projected Sales
Sqweeky Clean
December 2022- May 2023 (6 months)

Products Price December January February March April May

Surgical ₱ 12800 ₱ 13000 ₱ 13160 ₱ 13280 ₱ 13380 ₱ 13500

Masks/ 1 ₱2
piece

Surgical ₱ 235200 ₱ 239400 ₱ 243180 ₱ 245280 ₱ 248640 ₱ 249900

Masks/ 1 ₱ 84
box

N95 ₱ 154000 ₱ 157300 ₱ 161150 ₱ 167200 ₱ 171600 ₱ 173800

masks/ 1 ₱ 110
piece

60ml ₱ 134750 ₱ 135500 ₱ 138250 ₱ 140000 ₱ 141000 ₱ 142000

bottle of ₱ 25
alcohol

Wipes ₱ 35 ₱ 74550 ₱ 76125 ₱ 77000 ₱ 80150 ₱ 81900 ₱ 82600

Tissues ₱ 70800 ₱ 71700 ₱ 72900 ₱ 73350 ₱ 73650 ₱ 73950

₱ 15

Monthly ₱ 682100 ₱ 693025 ₱ 705640 ₱ 719260 ₱ 730170 ₱ 735750

_
Sales

Table 10. Projected Sales for Sqweeky Clean for Year 3

Projected Sales
Sqweeky Clean
June 2023- November 2023 (6 months)

Products Price June July August September October November

Surgical ₱ 13400 ₱ 13360 ₱ 13200 ₱ 13100 ₱ 13060 ₱ 13020

Masks/ 1 ₱2
piece

Surgical ₱247800 ₱246120 ₱ 244440 ₱ 243600 ₱ 243180 ₱ 242760

Masks/ 1 ₱ 84
box

N95 ₱ 110 ₱172700 ₱171600 ₱ 170500 ₱ 168300 ₱ 166650 ₱ 165550

masks/ 1
piece

60ml ₱ 141750 ₱141500 ₱ 140625 ₱ 140375 ₱ 140000 ₱ 139875

bottle of ₱ 25
alcohol

Wipes ₱ 35 ₱ 81900 ₱ 81200 ₱ 80850 ₱ 80500 ₱ 80325 ₱ 79450

Tissues ₱ 73500 ₱ 73050 ₱ 72750 ₱ 72450 ₱ 72225 ₱ 72000

₱ 15

Monthly ₱ 731050 ₱726830 ₱ 722365 ₱ 718325 ₱ 715440 ₱ 712655

_
Sales

Projected Sales
Sqweeky Clean
December 2023- May 2024 (6 months)

Products Price December January February March April May

Surgical
Masks/ 1 ₱2 ₱ 13000 ₱ 12920 ₱ 12800 ₱ 12740 ₱ 12700 ₱ 12640
piece

Surgical
Masks/ 1 ₱ 84 ₱ 241920 ₱ 241500 ₱ 239400 ₱ 237720 ₱ 236880 ₱ 236040
box

N95
masks/ 1 ₱ 110 ₱ 165000 ₱ 163900 ₱ 162800 ₱ 160600 ₱ 159500 ₱ 157850
piece

60ml
bottle of ₱ 25 ₱ 139250 ₱ 139000 ₱ 138750 ₱ 138000 ₱ 137500 ₱ 136750
alcohol

Wipes ₱ 35 ₱ 78925 ₱ 77350 ₱ 77000 ₱ 75250 ₱ 74200 ₱ 73500

Tissues ₱ 71700 ₱ 70200

₱ 15 ₱ 71475 ₱ 71325 ₱ 70950 ₱ 70650

Monthly
_ ₱ 709795 ₱ 706145 ₱ 702075 ₱ 695260 ₱ 691430 ₱ 686980
Sales

Table 11. Annual Sales for Sqweeky Clean

Annual Sales Revenue

 First Year Second Year Third Year Total Operations

₱ 4998105 ₱ 8120130 ₱ 8518350 ₱ 21636585

Chapter V
Partnership Operations Planning

5.1 Design of Services

As stated in 1.L, the fully automated vending machine will offer a range of
hygiene products to help keep consumers safe, prevent the virus from spreading, and
adapting to the new normal. With the addition of special features such as UV lights and
the built-in camera, the vending machine will be selling products such as different
qualities of masks, alcohol, tissues, etc. they will be positioned in bus stops and other
ideal locations to further help people maintain their health in public.

5.2 Quality Management

To maintain and improve the quality of products and service, Sqweeky plans to
employ a management system that focuses on the principles of the company which are:
to innovate and improve, to communicate with both customers and workers, and to
always focus on the potential needs and necessities of clients. The customer service
manager will be in charge of surveying the public opinion of the product.

5.3 Process Strategy

The process strategy refers to an organization’s strategy to convert its materials
into finished products. Sqweeky Clean will implement a repetitive focus process strategy
since the business produces identical vending machines with a wide range of hygiene
products. In a repetitive focus process strategy, assembly lines are used within factories
to increase efficiency and output. The production process combines different pre-made
components (UV-lights, camera, springs, etc.) through assembly lines until the last
component is added and the final product is made. Repetitive focus also allows for a
small degree of product flexibility, as components of the vending machine can be added
and/or removed if partners decide to change the blueprint of the product.
5.4 Store/Office Layout
The main office of Sqweeky Clean will be located in Ayala, Makati as the location
is known to be the business center of the Philippines. As the business is only a start-up,
the working office space will be measured at 225 square feet (15’ by 15’), enough room
for 4 partners. The office area will include a desk and working chair for each of the
partners, as well as common workplace items such as printers, fax machines, etc. The
room will also have a whiteboard for brainstorming and discussion. The office will also
have a pantry/break room that is 100 square feet (10’ by 10’), where the partners can
relax and eat. The break room will include a 4 seater table and comfortable furniture
such as couches. The room will also contain a water dispenser and a small fridge to
preserve simple food such as bread etc.

5.5 Human Resources

The Human Resource department of Sqweeky Clean is responsible for the hiring,
developing, compensating, and management of employees within the business. The
department is also in charge of handling personal requests from employees, such as
requests for maternity leave, sick leave, paternity leave, etc. In the case of misconduct
and other related issues, the HR department is responsible for the firing of employees.

As a business in the vending machine industry, Sqweeky Clean does not require
manpower or human resources in terms of face-to-face service (vendors), since all
vending machines are fully automated. Especially during the COVID-19 pandemic,
Squeaky Clean aims to make the vending machines independent and fully functional to
minimize the spread of the disease. Instead, the human resource department of
Sqweeky Clean consists of technicians, business partners, and workers involved in the
customization of the machines. Technicians, who are in charge of repairs and
maintenance, will be hired on a contractual basis.

5.7 Supply Chain Management

The operations manager will assess the demand for the product, therefore will
conclude how much product should the company purchase to keep up with the demand
of the customers. The purchasing manager will then purchase the necessary materials
needed for the machines that the company will put up in various locations. The process
of production will be as follows: the purchasing manager will purchase the raw materials
for production and will then be forwarded to a subcontractor in which the product will be
produced. The packaging will also be manufactured through a subcontractor, the amount
will be dependent on the demand and season. Since there is an ongoing pandemic,
online platforms will be utilized for taking orders. Customers are encouraged to leave
any comments or feedback on what possible aspects can be improved in our product.

5.8 Inventory Management

The inventory of the company will be supervised by the operations manager.
When the shipment of finished product is received from the subcontractor, it will be
thoroughly checked if it has any imperfections or defects. If there will be any defect or
imperfections, it will immediately be recorded and reported to the subcontractor to ask
for a replacement for the said defective product. The company ensures that no product
will be released with defects because it plays a huge role in customer satisfaction. The
company will implement the “first-in,first-out” policy to avoid the stocking of old inventory
that can get damaged in time. This policy will allow the operations manager to ensure
that there are no products that will get wasted or left unsold. For every two weeks, the
company will conduct a physical counting and will be reported to the management team.

5.9 Scheduling and Maintenance

The human resource department will be in charge of the scheduling and
maintenance of Sqweeky Clean’s vending machines. To ensure that the products are
working and performing at the highest level, technicians will be hired to perform
maintenance, and any repairs if needed. The maintenance of the vending machines will
occur once every two weeks. In the case of severe damage, and thus requiring
immediate attention, a technician will be sent to assess the state of the machine. If the
vending machine is unrepairable on the spot, it will be brought to Sqweeky Clean’s
operation department for further inspection.
Chapter VI
Partnership Financial Planning
1. Initial Financing
a. The partners have decided a reasonable amount of PHP 400 000 with each
partner investing around PHP 70 000 cash and PHP 30 000 non-cash assets
which includes computers, equipment and maintenance kits. The partners
believe that this is enough to jump start around a few units of vending machine
as test units so as to gauge its possible performance.

The capital that would be garnered would be loaned from the parents of the
partners as this venture would require a relatively high amount of capital to begin
with since it would require redesigning, licensing and maintaining.

2. Pricing Structure
a. Surgical masks will be sold at 2 pesos per piece, surgical masks sold in boxes
would be around 84 pesos. N95 masks per piece would be 110 pesos, a tissue
box is around 15 pesos. Wet wipes would be 35 pesos. 60 ml alcohol would be
around 25 presos.

3. Chart of Accounts
a.
Table 7. Chart of Accounts of Sqweeky Clean

Account Number Account Title

Assets
101 Cash in Bank
102 Inventory
103 Accounts Receivables
104 Prepaid Expenses
105 Allowances for Doubtful Accounts
106 Buildings
106-A Accumulated Depreciation - Building
107 Equipments
107-A Accumulated Depreciation - Equipments
108 Machineries
108-A Accumulated Depreciation - Machineries
109 Furnitures and Fixtures
Partner's Equity
301 He, Capital
301-A He, Drawing
302 Julio, Capital
302-A Julio, Drawing
303 Kwok, Capital
303-A Kwok, Drawing
304 Ty, Capital
304-A Ty, Drawing
Revenue
405 Sales
Expenses
505 Purchases
506 Maintenance Expense
507 Taxes and License Expense
508 Depreciation Expense
509 Advertising Expense
510 Supplies Expense
511 Utilities Expense
4. Income Statement

5. Statement of Changes in Partners’ Equity

6. Statement of Financial Position

7. Statement of Cash Flows

 Statement of Cash Flows
Forecast for the years 2021-2023
2021 2022 2023

Cash flows from operating activities

Inflow
Cash received from product sales 4,998,105 8,120,130 8,518,350

Outflow
Payment of purchases (3,000,000) (5,000,000) (5,000,000)

Payment of various operating

expenses (800,000) (3,800,000) (900,000) (5,900,000) (950,000) (5,950,000)

Net cash from operating activities 1,198,105 2,220,130 2,568,350

Cash flows from financing

activities
Inflow
Initial Investment of partners 400,000

Outflow
Drawings 0 (43,787) (68,216)

Net increase in cash in Bank 1,598,105 2,176,343 2,500,134

Add. Cash Balance May 31 0 1,598,105 3,774,448

Cash balance, June 1 1,598,105 3,774,448 6,274,582

8. Computational Notes to the Financial Statements