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FORTH CYCLE
Bike Shop & Rental
Live Better. Ride a Bike!

Title Page

A Project Feasibility Study

Presented to the Faculty of the
College of Business and Accountancy
Tarlac State University
Tarlac City

In Partial Fulfillment of the

Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management

Researchers

Acero, Monica
Ang, Aldrin
Aquino, Mary Rose
Borja, Abegail
Laxamana, Jennifer
Tandoc, Rhenz Myka
Torrefranca, Fritzy

December 2022
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Republic of the Philippines

Tarlac State University
College of Business and Accountancy
Financial Management Department

APPROVAL SHEET

This project feasibility study of Monica Acero, Aldrin Ang, Mary Rose
Aquino, Abegail Borja, Jennifer Laxamana, Rhenz Myka Tandoc and Fritzy
Torrefranca, entitled “Forth Cycle Bike Shop & Rental” which is prepared and
submitted in partial fulfillment of the requirements for the degree Bachelor of Science
in Business Administration Major in Financial Management, is hereby accepted.

DR. ROWENA C. RAMOS

Adviser

PROJECT FEASIBILITY STUDY COMMITTEE

_________________________
Chairman

______________________________ ____________________________
_ Member Member

Accepted and approved in partial fulfillment of the requirements for the Degree
Bachelor of Science in Business Administration Major in Financial Management.

DR. JHONEL C. PANLILIO

Dean, College of Business and Accountancy

December 2022
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ACKNOWLEDGMENT

First and foremost, the proponents would like to glorify the Lord God

Almighty for His guidance and for the strength, knowledge, wisdom, and patience He

had given all throughout the duration of this study. The glory, honor, and praise to

His name alone.

Acknowledgment is deserved for the energy, patience, time, knowledge,

diligence, and support of their respected professor and the PFS committees of this

study, Dr. Rowena C. Ramos, Mr. Sherwin John F. Gragasin, Mrs. Yvette S. Legaspi

and Mr. Ferdinand Y. Silaran who have shared in the process of making this

feasibility study. The proponents are sincerely grateful for pushing us to finish this

work well. Thank you for never giving up on us.

The proponents would also like to express their gratitude to their families, most

specifically to their parents, who have supported them physically, financially, and

emotionally. Their support, trust, wisdom, and guidance have given them the strength

and inspiration to further finish this business plan.

Sincerest gratitude is extended also to our respondents who have taken time and

cooperated in answering the survey questionnaire to finish this study.

Together, we sincerely acknowledge and give thanks the person/s mentioned

above who have brought the success of doing this feasibility study. We are very

grateful for this wonderful accomplishment.

Researchers
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DEDICATION

This feasibility study is dedicated to our dear parents who serves as our

inspiration and gave us their support and helped us through providing moral,

financial, and spiritual support, they never miss to give us strength in every step all

the way.

This feasibility study is also dedicated to Tarlac State University, who gave the

researchers a chance and opportunity to test their cooperation and dedication

including the assessment of skills and cultivating oneself and others to finish this

study. Also, this study is dedicated to our feasibility study adviser, who brought us

together, and gave us the knowledge on how to complete this study.

We would like to dedicate this feasibility study to our Almighty God, who gave

us life and strength, without His guidance and protection; we would not be where we

are now thanks to his power that gave us peace of mind to arrange our unorganized

thoughts and ideas.

Researchers
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Table of Contents

Title Page ....................................................................................................................... i

APPROVAL SHEET .................................................................................................... ii
ACKNOWLEDGMENT.............................................................................................. iii
DEDICATION ............................................................................................................. iv
Table of Contents .......................................................................................................... v
List of Tables ............................................................................................................. viii
List of Figures ............................................................................................................... x
Executive Summary ..................................................................................................... xi
Introduction ................................................................................................................... 1
Management Aspect...................................................................................................... 5
Name of the Business ................................................................................................ 5
Nature of Business .................................................................................................... 5
Location ..................................................................................................................... 6
Forms of Organization .............................................................................................. 6
Investment Amount ................................................................................................... 6
Vision, Mission, and Core Values Discussion .......................................................... 7
Logo .......................................................................................................................... 9
Organization Chart .................................................................................................. 11
Duties & Responsibilities of Workforce and Qualifications ................................... 11
Basic Pay ................................................................................................................. 13
Store Hours .............................................................................................................. 13
Computation of Salaries .......................................................................................... 14
Nature of Reduction on Payroll & Benefits ............................................................ 14
General Policies of the Company ............................................................................ 16
Legal Compliance ................................................................................................... 19
Articles of Incorporation & Bylaws ........................................................................ 20
Marketing Aspect ........................................................................................................ 25
Industry analysis ...................................................................................................... 25
Demand and Supply Analysis ................................................................................. 27
Forth Cycle’s Competition ...................................................................................... 29
Identifying Target Market ....................................................................................... 30
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Projected Demand/Sales .......................................................................................... 40

4Ps of Marketing: Product....................................................................................... 53
4Ps of Marketing: Price Discussion ........................................................................ 66
4Ps of Marketing: Place .......................................................................................... 71
4Ps of Marketing: Promotion .................................................................................. 73
SWOC Analysis ...................................................................................................... 75
Technical Aspect ......................................................................................................... 78
Location ................................................................................................................... 78
Floor Plan ................................................................................................................ 80
Procurement Process ............................................................................................... 83
Selling Process ........................................................................................................ 84
Renting Process ....................................................................................................... 86
Risk of Loss or Damage Clause .............................................................................. 88
Penalty fee ............................................................................................................... 88
Late Return Fee ....................................................................................................... 89
Terms and Conditions ............................................................................................. 89
Safety and Protection of Renters ............................................................................. 90
Initial Investment Utilization .................................................................................. 96
Socio-economic Aspect .............................................................................................. 98
Contribution to the Community .............................................................................. 98
Corporate Social Responsibility .............................................................................. 99
Financial Aspect........................................................................................................ 100
Financial Assumptions .......................................................................................... 100
Forecasted Financial Statement: Statement of Financial Position ........................ 103
Forecasted Financial Statement: Comprehensive Income .................................... 104
Forecasted Financial Statement: Changes in Partners’ Equity.............................. 105
Forecasted Financial Statement: Cash Flow ......................................................... 106
Notes...................................................................................................................... 107
Financial Analysis ................................................................................................. 120
Conclusion............................................................................................................. 128
Appendices ................................................................................................................ 129
Appendix A: Questionnaire................................................................................... 130
Documentation .......................................................................................................... 134
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Curriculum Vitae ...................................................................................................... 136

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List of Tables
Table No. 1 Investment Amount ..................................Error! Bookmark not defined.
Table No. 2 Manager Salary ........................................Error! Bookmark not defined.
Table No. 3 Store Hours ..............................................Error! Bookmark not defined.
Table No. 4 Manager Salary Computation ..................Error! Bookmark not defined.
Table No. 5 Mechanic Salary.......................................Error! Bookmark not defined.
Table No. 6 Deductions and Benefits ..........................Error! Bookmark not defined.
Table No. 7 Requirements ...........................................Error! Bookmark not defined.
Table No. 8 BIR Registration Documents ...................Error! Bookmark not defined.
Table No. 9 Registration for Business Name...............Error! Bookmark not defined.
Table No. 10 Projected Selling Price-Bikes ................Error! Bookmark not defined.
Table No. 11 Projected Selling Price-Bike Parts .........Error! Bookmark not defined.
Table No. 12 Projected Selling Price-Bike Accessories ............ Error! Bookmark not
defined.
Table No. 13 Projected Selling Price-Clothing............Error! Bookmark not defined.
Table No. 14 Projected Selling Price-Repair Services Error! Bookmark not defined.
Table No. 15 Projected Selling Price-Bike Rental.......Error! Bookmark not defined.
Table No. 16 Projected Monthly Sales-Month Status .Error! Bookmark not defined.
Table No. 17 Projected Monthly Sales-Bikes ..............Error! Bookmark not defined.
Table No. 18 Projected Monthly Sales-Bikes Continuation ...... Error! Bookmark not
defined.
Table No. 19 Projected Monthly Sales-Bikes Total ....Error! Bookmark not defined.
Table No. 20 Projected Monthly Sales-Bike Parts ......Error! Bookmark not defined.
Table No. 21 Projected Monthly Sales-Bike Parts Total ........... Error! Bookmark not
defined.
Table No. 22 Projected Monthly Sales-Bike Accessories ......... Error! Bookmark not
defined.
Table No. 23 Projected Monthly Sales-Bike Accessories Total Error! Bookmark not
defined.
Table No. 24 Projected Monthly Sales-Clothing .........Error! Bookmark not defined.
Table No. 25 Projected Monthly Sales-Clothing TotalError! Bookmark not defined.
Table No. 26 Projected Monthly Sales-Repair Services ............ Error! Bookmark not
defined.
Table No. 27 Projected Monthly Sales-Repair Services Total .. Error! Bookmark not
defined.
Table No. 28 Projected Monthly Sales-Bike Rental ....Error! Bookmark not defined.
Table No. 29 Projected Monthly Sales-Bike Rental Total ........ Error! Bookmark not
defined.
Table No. 30 Projected Annual Sales-Bikes ................Error! Bookmark not defined.
Table No. 31 Projected Annual Sales-Bike Parts ........Error! Bookmark not defined.
Table No. 32 Projected Annual Sales-Bike Accessories ........... Error! Bookmark not
defined.
Table No. 33 Projected Annual Sales-Bike Clothing ..Error! Bookmark not defined.
Table No. 34 Projected Annual Sales-Repair Services Error! Bookmark not defined.
Table No. 35 Projected Annual Sales-Bike Rental ......Error! Bookmark not defined.
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Table No. 36 Bicycle Products ....................................Error! Bookmark not defined.

Table No. 37 Bicycle Parts ..........................................Error! Bookmark not defined.
Table No. 38 Bike Accessories ....................................Error! Bookmark not defined.
Table No. 39 Clothing..................................................Error! Bookmark not defined.
Table No. 40 Bicycle Prices.........................................Error! Bookmark not defined.
Table No. 41 Bicycle Parts Prices................................Error! Bookmark not defined.
Table No. 42 Bicycle Accessories Prices ....................Error! Bookmark not defined.
Table No. 43 Clothing Prices .......................................Error! Bookmark not defined.
Table No. 44 Service Repair Prices .............................Error! Bookmark not defined.
Table No. 45 Bike for Rent Prices ...............................Error! Bookmark not defined.
Table No. 46 Price list for Damaged Bicycles .............Error! Bookmark not defined.
Table No. 47 Property, Plant and Equipment-Furniture ............ Error! Bookmark not
defined.
Table No. 47 Property, Plant and Equipment-Protective Tools. Error! Bookmark not
defined.3
Table No. 48 Property, Plant and Equipment-Store Supplies .... Error! Bookmark not
defined.5
Table No. 49 Property, Plant and Equipment-Other Supplies ... Error! Bookmark not
defined.7
Table No. 50 Total Project Cost ................................................................................. 97
Table No. 51 Statement of Financial Position .......................................................... 103
Table No. 52 Statement of Comprehensive Income ................................................. 104
Table No. 53 Statement of Changes in Partners’ Equity .......................................... 105
Table No. 54 Statement of Cash Flows .................................................................... 106
Table No. 55 Note 1 Sales ........................................................................................ 107
Table No. 56 Note 2 - Cost of Goods Sold ............................................................... 108
Table No. 57 Note 3 - Compensation Expense ......................................................... 109
Table No. 58 Note 4 - Utilities Expense ................................................................... 109
Table No. 59 Note 5 - Rent Expense ........................................................................ 110
Table No. 60 Note 6 - Depreciation - Furniture and Fixtures ................................... 110
Table No. 61 Note 7 - Store Supplies Expense ......................................................... 111
Table No. 62 Note 8 - Permits and Licenses Expense .............................................. 112
Table No. 63 Note 9 - Marketing Expense ............................................................. 1133
Table No. 64 Note 10 - Repair and Maintenance Expense ....................................... 113
Table No. 65 Note 11 - Cash .................................................................................. 1144
Table No. 66 Note 12 - Prepaid Rent ...................................................................... 1144
Table No. 67 Note 13 - Furniture and Fixtures (Net) ............................................. 1155
Table No. 68 Note 14 - Protective Tools and Equipment (Net) ............................. 1166
Table No. 69 Note 15 - SSS Payable ...................................................................... 1177
Table No. 70 Note 16 - PhilHealth Premium Payable ............................................ 1178
Table No. 71 Note 17 - Income Tax Payable.......................................................... 1189
Table No. 72 Note 18 - VAT Payable................................................................... 11920
Table No. 73 Vertical Analysis ............................................................................. 12122
Table No. 74 Horizontal Analysis ........................................................................ 12122
Table No. 75 Horizontal Analysis with Change ................................................... 12223
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Table No. 76 Liquidity Ratio .................................................................................... 123

Table No. 77 Profitability Ratio.............................................................................. 1245
Table No. 78 Solvency Ratio .................................................................................. 1256
Table No. 79 Turn-Over Ratio ................................................................................ 1256
Table No. 80 Cash Flow Statement Analysis ......................................................... 1257

List of Figures
Figure No. 1: Forth Cycle Logo .................................................................................... 9
Figure No. 2: Organization Chart ............................................................................... 11
Figure No. 3: Male and Female Ratio ......................................................................... 31
Figure No. 4: Age Range ............................................................................................ 31
Figure No. 5: Status of Respondents........................................................................... 32
Figure No. 6: Agreement of Respondents................................................................... 33
Figure No. 7: Mode of Transportation ........................................................................ 34
Figure No. 8: Amounts spent on Transportation ...................................................... 344
Figure No. 9: Agreement on New Mode of Transportation...................................... 355
Figure No. 10: Bicycle Ownership ............................................................................. 36
Figure No. 11: Future Bike Acquisition ................................................................... 366
Figure No. 12: Bike Preference .................................................................................. 37
Figure No. 13: Options for Bike Acquisition.............................................................. 38
Figure No. 14: Amount Willing to Spend................................................................... 39
Figure No. 15: Location .............................................................................................. 72
Figure No. 16: Location Near TSU............................................................................. 72
Figure No. 17: Location near a park ........................................................................... 72
Figure No. 18: Location near food spots .................................................................... 72
Figure No. 19: Distribution Channel .......................................................................... 73
Figure No. 20: Facebook Promotion........................................................................... 74
Figure No. 21: Instagram Promotion .......................................................................... 74
Figure No. 22: TikTok Promotion .............................................................................. 74
Figure No. 23: YouTube Promotion ........................................................................... 74
Figure No. 24: Zamora St. Tarlac City ....................................................................... 78
Figure No. 25: Parking Area – Front View................................................................. 79
Figure No. 26: Parking Area – Side View 1 ............................................................... 79
Figure No. 27: Location of Shop Space ...................................................................... 80
Figure No. 28: 1D Floor Plan ..................................................................................... 81
Figure No. 29: 3D Floor Plan 1 .................................................................................. 81
Figure No. 30: 3D Floor Plan 2 .................................................................................. 82
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Figure No. 31: 3D Floor Plan 3 .................................................................................. 82

Figure No. 32: 3D Floor Plan 4 .................................................................................. 82
Figure No. 33: Procurement Process .......................................................................... 83
Figure No. 35: Renting Process .................................................................................. 86

Executive Summary

As we all know, we are currently facing a global environmental crisis. The state

of our environment is deteriorating at an increasing and alarming level. While the

work needed to save this planet can be overwhelming, the proponents wanted to enter

the bicycle industry opening a bicycle shop for the purpose of encouraging people to

start living in environmentally friendly ways through easy steps such as by opting for

a more sustainable transportation. Promoting and encouraging people to use bicycles

as a mode of transportation is a great solution that works for everyone. Traveling

sustainably helps decrease pollution, reduce harmful chemicals, improves our air

quality, and overall builds a healthier community.

Our business named Forth Cycle is a merchandising type of business. It will

offer products and services of high quality at reasonable prices. The business will be

governed by seven individuals under a partnership agreement. Since the partners have

a strong bond-like family and has built trust with each other, they decided to
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contribute and combine their financial resources as a source of their profit for the best

interest of their business operation.

Forth Cycle will be located at City Walk Mall, Zamora St. Tarlac City near

Tarlac State University Main Campus and other schools and business establishments

where many potential customers walk by. The location of our business gives

customers easy access and is well-known to our target market. Our business will

operate at 8:00 AM to 7:00 PM. Forth Cycle will offer products such as mountain

bikes, road bikes, hybrid bikes, women’s bikes, folding bikes, BMX bikes, electric

bikes, and children’s bikes. We will also offer repair services like major tune up and

minor tune up. Additionally, our business will offer a rental option for people who

cannot afford to buy brand new bikes and for those who needs a bike for temporal

use. The business plans to launch promotion in the first months of its operations. We

will promote and advertise our shop through flyers, social media, and word-of-mouth

dissemination. Our target group focuses on university students who are our main

target as this group gave the most volume based on our survey. Second to students are

elderly workers and travelers. As for our competitors, our business has 4 direct and 1

indirect competitor around its location. However, we believe that with our passion of

bringing quality products and services to our customers, our offer of rental option,

and the advocacy we hold, we can outperform them.

Moreover, the partners of Forth Cycle will invest an initial investment of

Php1,225,000.00 for the establishment of the business and its operations. The initial

investment should also be earned back within 5 years based on the computations

done. Along with the fact that the business profits every year, Forth Cycle is a
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feasible business that has shown growth and sustainability backed by data and

calculations.

This study covers the five aspects of project feasibility study. The first aspect

– management aspect will provide the information about the form of ownership the

business has, the start-up cost, the basic requirements, and procedures in registering

the business and the government agencies that the business is related to, the study of

the key personnel and manpower requirements, and the business culture. The

marketing aspect will serve as the basis of the financial section through the projected

demand. This includes the area covered, target market, proposed location,

competitors, the demand and supply analysis, demand forecasting, marketing

program and SWOT analysis. The technical aspect will provide the information that

includes the structures and the floor plan, operating procedures/processes that are

essential to the overall operation of the business, proposed equipment, machineries

and supplies together with their descriptions and specifications. The socio-economic

aspect in general will provide the information about the socio-economic study of the

business as well as its environmental impact. This part will tackle the benefits that

can be rendered to the staff, society, and country, and most importantly, the

environment. The last part of the study will be the financial aspect which have the

purpose of projecting how much start-up capital is needed, the sources of capital, the

return on investments and other financial considerations.

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Introduction

Global Warming is the major problem that the world is currently facing, a worst

enemy that will affect how our future generations will be shaped. An increase in the

concentration of carbon dioxide in the atmosphere causes a significant increase in the

planet’s temperature. This points out the gas being the main cause of climate change

and triggers alarm for decades. One-fourth of all greenhouse gas (GHG) emissions

connected to fuel are produced by the transportation sector, and half of these

emissions come from passenger cars. The need for passenger vehicle transport is

expected to triple globally by 2050, making climate concerns even more severe.

Mobility plays a vital role in the society and economy. A transport system that

is efficient and accessible is crucial for the quality of life of all people and for

planetary health. However, this sector remains one of the biggest environmental

challenges that we are facing. Based on the International Energy Agency (IEA),

transport is responsible for 24% of direct carbon dioxide emissions due to the burning

of fossil fuels. Far from declining, the number of emissions resulting from transport is

continuing to rise. In addition, the World Health Organization data depicts transport

as a part of the problem of air pollution that is responsible for more than seven

million premature deaths every year.

The effects of this ever-increasing emission of carbon dioxide and other

greenhouse gasses in the atmosphere led to global warming and climate change to

deteriorate than it has ever been before and are now being seen and felt by many

countries around the world. In Germany, people are experiencing extremely hot days
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in the last several decades. Scientists warn the nation that they will experience more

extreme weather floods, due to climate change. In Japan, significant changes in the

environment are seen in their shorter snow seasons and fewer snowfalls. They are

also experiencing heavier rains and heatwaves. Japan suffers from a decline in their

crops and other negative effects on oceans, agriculture, and farming. In India, deadly

heatwaves kill thousands of people every year. While people in Fiji also suffers from

rising seas and warming temperatures that leads them to experience frequent

cyclones, floods, and drought. Another country that is highly vulnerable to climate

change is Kenya where scientists suggest that the average annual temperature in their

country will rise. Extreme weather changes affect Kenya’s economy as they are

dependent on tourism and agriculture.

Philippines is in fact included in the top 10 countries which are most affected by

climate change based on a 2021 study. Philippine’s geography is one of the major

factors for being most at risk from the effects of the climate crisis. The country is hit

by an average of 20 typhoons every year. And in recent years, people observed and

felt the increase of the intensity of storms experienced in the country. Global

warming has had a devastating effect on the Philippine’s Sea life. Sea temperatures

are rising, and pollution is killing the coral reefs. Nowadays, fewer fish are found in

the oceans leading to increased prices for these commodities and leaving thousands of

Filipino people hungry.

Being aware of all these issues and data, we must now start to comply to urgent

and necessary measures to reduce transport’s environmental impact. The main

solutions we can do is to start reducing our dependency on fossil fuels and to opt for a
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sustainable transport system. Emission-free vehicles must be promoted. Therefore,

our group believes that putting up a bike shop business venture is an innovative idea

as it is one of the best sustainable transportation solutions for a sustainable future.

Using bikes as a means of transportation is beneficial and works for everyone.

Bicycles are widely recognized as an effective solution for reducing short

distance trip related climate impacts and addressing sedentary lifestyle caused chronic

diseases. As a solution to worsening traffic on the roads in Tarlac City a Bike shop

that does not only sells bicycle but also rents them to advocate cycling

as an alternative to jeeps, tricycle, motorcycle etc. on short distance trip. Aside from it

being eco-friendly and not emitting carbon dioxide gases, it is not costly. Our

business venture called Forth Cycle will promote a transportation system that will

help solve some of our environmental problems. Our business envisions the

improvement of the bicycle culture in our country. The key argument to why bicycles

are part of the solution to urban traffic is because of the ability to decrease congestion

by having fewer cars on the road and it has bloomed on the rise of pandemic to be the

usual mode of transportation.

Public transit is a great idea to move several passengers in one vehicle, but

studies show that people are not motivated to use it because they like to have control

of their schedules. To the average commuter, finding the fastest routes to get from

Point A to Point B is the biggest motivator when choosing a mode of transportation.

Based on this logic, choosing a small vehicle like a pedal bike, e-bike or electric

scooter is an optimal solution to lower the carbon emissions per ride and still follow

your own schedule. The business also envisions a wider number of people opting for
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and promoting sustainable transportation by welcoming and encouraging people to

use bikes as an alternative means of transport. We have agreed with the idea of

putting up a bike shop as our business venture in the hopes of spreading awareness

about the current state of our environment due to the negative effects of the current

transportation system we have today.

Our business venture wants to provide offers for the purchase and rental

process. So those who cannot afford the cost to acquire a unit will benefit from using

our products by means of rent and opportunity for all of those who want to try it. The

use of bikes started to be a trend after pandemic had happened two years ago and

until now people are still using it for transportation. To be able to meet the needs of

students, passengers, and commuters to reach their destination at their own time and

effort, the business wanted to bring those bikes that are ready for their ride whether it

is purchased or rent.
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Management Aspect

Name of the Business

FORTH CYCLE- inspired by the all Filipina 4-member group 4th Impact, it

is our goal for the business to also reach international heights just as they have done.

The meaning of the word “Forth” also means to move onward. We’d like to keep our

business going for a long time and so, “Forth” embodies this objective, to continue

moving forward and succeed against any challenges the business will face at any

point in time. “Cycle” on the other hand, simply reflects what the business offers,

which are all related to bicycles and cycling. This is to let our potential customers

immediately know what type of business we are just from hearing our brand name.

Nature of Business

Forth Cycle is a retail merchandising business that is operated in a local bicycle

shop. To earn, Forth Cycle buys goods and adds markup or profit to the cost of

products then sells them to the customers. Beyond bicycles, our bicycle shop may

offer accessories, spare and replacement parts, tools, and a variety of services.

Services may include expert fitting and custom bike building or ordering,

maintenance, and repairs from our experience bicycle mechanics. We also offer

bicycle for rentals which our main reason of reselling as well as sales. Forth Cycle

may also specialize in one or more aspects of cycling: bicycle racing, triathlons,

bicycle touring, BMX, and mountain biking. Similarly, our shop may carry a diverse

range of bicycles from single seated upright bikes to more specialized types such as

tandem bicycles, recumbent bicycles, and folding bicycles.

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Location

Our shop is located in City Walk Mall at Zamora St.Tarlac City near the Tarlac

State University Main Campus.

Forms of Organization

Forth Cycle is owned by seven people specifically by Ms. Monica T. Acero,

Mr. Aldrin Stephon I. Ang, Ms. Mary Rose A. Aquino, Ms. Abegail A. Borja, Ms.

Jennifer E. Laxamana, Ms. Rhenz Myka B. Tandoc, and Ms. Fritzy P. Torrefranca. It

is specifically a general partnership because the partners will be responsible for

management and the financial responsibilities of the partnership. The seven owners

will share in all the profit of the business. The profit will be equally divided. We

choose the partnership because it is inexpensive to start and less expenses.

Investment Amount

The expected expenses for the first three-months operation of Forth Cycle is

computed to be Php 964,586.90 and will be utilized for bike units, accessories and

bike parts including rent of the shop space, salaries of employees, clothing, furniture,

and equipment including store supplies and other necessities on the business. To be

able to reach the mentioned expenses, the partners consisting of seven members

contributed an amount of PHP 175,000.00 each, which totals to PHP 1,225,000.00 of

investment amount. The computed cost of expenses is expected to have an excess as

it’s overestimated. The remaining amount will be utilized for the next month of

operation if needed.
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Table 1
Investment Amount

Vision, Mission, and Core Values Discussion

Vision

We envision a community where bicycles can become the preferred mode of

transportation. A future in which people can have a healthier lifestyle, a greener

environment, and a sustainable way of living.

It is also our goal to become the foremost bike shop in the province of Tarlac.

Mission

To establish Forth Cycle Bike shop as a prime choice for bicycles and consistent

quality of work on our repairs with affordable prices. We seek to promote a healthier
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lifestyle and offer a more sustainable way of living. We strive to grow our business in

line with the sustainable development goals, particularly in climate action.

Core Values

Form a lasting relationship with our beloved customers

Outstanding and reliable quality of service

Respect for our customers and the environment we humans benefits from

Time dedicated in encouraging a healthier and greener lifestyle for our customers

through biking

Heuristic approach to challenges and trials the business may face

Consistency in everything we do

Yearning for a better world and contributing to its fulfillment

Continuous improvement of our business, especially in our service and products

Love as our foundation, for the treatment of our customers and the environment

Easy to access and affordable bicycles our customers can rent or buy
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Logo

Figure 1:Forth Cycle Logo

Logos are something that makes us stand out from our competitors. Having a

unique and eye-catching logo can give advantage for the business, it also needs to

contain story which the audience can relate. Everything that’s included in the logo

has its meaning, colors play an important role in how the brand is perceived.

There are 3 colors used in our logo and that are Navy Blue, White and Green

and these helped our logo to emphasize what we offer. To make it simple we only

include our business name and add an image of a biker and some chains.

Colors

A good combination of colors makes the logo more interesting, and it somehow give

a hint about the vibe in your shops.

• Green is included in our logo which gives emphasize to Nature, Tranquility,

Health, Wealth, and Harmony. We used the green color to show our support
 P a g e | 10

to the campaign going green, by using bicycles when running some errands

this helps to lessen the gases that automobile produces.

• Navy Blue means Loyalty, Mystery, Respectability and Sophistication. By

using the color Navy Blue as our base color this gives the elegant vibe to our

business.

• White is described to mean Cleanliness, Purity, Clarity, and Innocence, it also

helped our business name to be emphasize.

Design

The design for Forth cycle is simple and straight forward because some over

decorated logos can give confusion to the customers. We avoided adding a slogan in

our Logo to make it cleaner and to refrain from overcrowding it.

• Bike Rider above the business name, the rider gives hint to the audience about

the products that we offer. We place it above our business name to give

emphasis to it, and that also helped our logo to look more interesting and

elegant.

• Chains were placed on our logo to show that aside from bicycles we also offer

bicycle spare parts, accessories and even clothing.

• Forth Cycle is our business name but a different font was used. Forth cycle

has a different font in order to emphasize it because this means onward in

time and we are looking forward on seeing bicycles as a means of

transportation during rush hours in order to lessen the gasses that was being

produced by the automobile.

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Organization Chart

Ang, Aquino, Tandoc,

Acero, Mary Rose Borja, Laxamana, Torrefranca,
Aldrin Rhenz
Monica T. A. Abegail A. Jennifer E. Fritzy P.
Stephon I. Myka B.

Manager(1)

Bike Mechanic
(1)

Figure 2: Organization Chart

Duties & Responsibilities of Workforce and Qualifications

Manager (1)

• Duties and Responsibilities

- In-charge of hiring and training employees

- Checks inventory and monitor other employee

- In-charge of distributing salary/wages to employees

- Coordinate with suppliers and check the quality of the bicycle units and parts

- Entertain employee and customer concerns

- Promote the product or service of the store

- Build a customer-employee relationship to trust the product and services

- Assist customers on the store and provide suggestion regarding their demands
 P a g e | 12

• Qualifications

- Graduate of any Bachelor’s Degree under business courses (BSA, BSBA, BS

Entrepreneurship)

- At least 22 years old and above

- Has experience as a salesman/ woman on any retail or merchandising stores

- Preferably someone who knows a lot about bikes and good at doing sales talk

- Can work full-time

Bicycle Mechanic (1)

• Duties and Responsibilities

- Perform skills on repairing and replacing bike parts

- Adjust and install bicycle parts based on the customer’s request

- Check and provide bicycle maintenance as for customer’s demand

• Qualifications

- Graduate of any Technical Vocational course on mechanics

- Senior High School Graduate under TechVoc Strand

- TESDA Automotive NC2 passer

- At least 18 years old and above

 P a g e | 13

Basic Pay

Salary and Wages

The salary is in minimum wage wherein the project proponent follows the

minimum rate as set by DOLE.

Table 2
Manager Salary

POSITION PER DAY WEEKLY MONTHLY YEARLY

PAY PAY PAY
Manager 450.00 2,700.00 10,800.00 129,600.00

Store Hours

The goal of Forth Cycle is to be an alternative way of transportation for the

residents of Tarlac City, especially during rush hours which is usually affected by

traffic congestion. Thus, we formulated the opening hours at a time where commuters

can access our bike rentals. We are open all days of the week from Monday to

Sunday where we start at 8am and end by 7pm. There is also a 2-hour break, an hour

provided for lunch and 30-minutes for rest in the morning and afternoon.

Table 3
Store Hours

DAY OPEN CLOSE

Monday 8:00 am 7:00 pm
Tuesday 8:00 am 7:00 pm
Wednesday 8:00 am 7:00 pm
Thursday 8:00 am 7:00 pm
Friday 8:00 am 7:00 pm
Saturday 8:00 am 7:00 pm
 P a g e | 14

Computation of Salaries

Manager/Cashier/Salesperson – As a regular employee, they are beholden to the

reduction and benefits required by the government such as SSS and Philhealth. This

is their expected salary.

Table 4
Manager Salary

Weekly Monthly Yearly

Per Day Deductions Salary After
Pay Pay Pay
Deductions
1 6 4 12 SSS Philhealth
450 2,700.00 10,800.00 129,600.00 495.00 216.00 10,089.00

Mechanic Salary- Assuming that on a bad month, the mechanic had 30 commissions,

on average are 50 commissions and on a good month is 70 commissions, then this is

the expected salary of a freelance mechanic.

Table 5
Mechanic Salary

Bad Month Average Month Good Month

1,000.00 2,000.00 2,500.00
1,650.00 3,000.00 3,750.00
1,125.00 1,650.00 2,625.00
3,775.00 6,650.00 8875.00

Nature of Reduction on Payroll & Benefits

Table 6
Deductions and Benefits

Personnel Basic Total Holiday Gross Tardiness Advances Leave SSS Phil Net
Pay/ days Pay Pay w/out Premium Health Pay
month worked pay Premium
Manager 10,800.00 Xx xx xx (xx) (xx) (xx) (495.00) (432.00) xx
 P a g e | 15

Forth Cycle only has one (1) regular employee, which is the Manager/Salesperson.

They have benefits as well as deductions for SSS and Philhealth which amounts to

Php 495 and Php 432 respectively.

Benefits of Employees

Employee/s in the business are entitled to receive the following benefits.

1. Working hours. Employee/s will not be given over 9 hours/day working

hours. All employees will have a designated 1-hour lunch break in the middle

of the day for them to rest and take their meals. The employees will also be

given a 30-minute break in the morning and 30-minute break in the afternoon.

2. Vacation Leave. The employee/s are entitled fifteen (15) day vacation leave

per year. On the 3rd year of service, employee/s are granted an additional one

(1) day vacation leave every year. Maximum vacation leave is nineteen (19)

days. Unused leaves will be converted into cash at the end of each year.

3. Sick Leave. The employee/s are entitled fifteen (15) day sick leave annually.

This leave replenishes every year. Unused leaves will be given as incentives at

the end of each year.

4. Holidays. Employee/s are granted twelve (12) paid national regular holidays

and six (6) special non-working days every year.

5. Paternity Leave. Employee/s who are fathers are entitled 7 days of leave for

the first four deliveries of his legitimate spouse.

 P a g e | 16

6. Parent Leave for Solo Parent. Solo parent employee/s who have worked

with the business for at least one year are granted 7 days parental leave.

7. Bereavement Leave. The employee/s are granted a 3-day bereavement leave.

8. 13th Month Pay. Employee/s will be granted a 13th month pay equivalent to

1/12 of an employee’s basic annual salary and will be given at the last month

of the year.

9. Allowance. On the 4th year of service in the business, employee/s will be

granted a semi-annually rice subsidy. This allowance will be given at the

second quarter and the fourth quarter of the year.

General Policies of the Company

Forth Cycle Partnership wishes to give the employees and staffs a better work

environment. We can only reach this goal by getting everyone’s cooperation and

compliance.

Provided below are the company’s general guidelines that are mandated to be

followed by the whole firm’s employees and staffs.

I. Whistle-Blowing Policy

• The Company has a whistle-blowing policy in place to encourage workers to

report any suspected misconduct that they believe to be against the principles

of the Code of Ethics or in violation of the Corporation's rules and regulations.

The policy strives to shield the person who reports wrongdoing from reprisals

or retaliation and serves as a deterrent to passively supporting the commission

of wrongdoing.
 P a g e | 17

II. Code of ethics

An employee should:

• Be prohibited from any form of substance abuse

• exercise the prohibition of sexual harassment between employees to

employees, especially between the higher-ups and those below them

• avoid the form of bribes and giving and receiving gifts from outside and

inside the business in exchange for incentives

• exercise the proper dress codes, dress codes should only be limited to their

prescribed uniform and wearing of their IDs

• be prohibited from using their cell phones or social media during work hours

• uphold corporate interests and refrain from giving outright favors to

individuals, particularly when it comes to recruiting, contracting, or granting

dealerships,

• Utilize just the resources provided by the company, including money, time,

equipment, and property.

III. Attendance, Vacations and Leave Policy

• Vacation time is limited to five days per year and is referred to as Service

Incentive Leave (SIL). No leave is required during the first year of

employment because it is only accessible after that. However, many firms

provide 12–15 days of vacation time every year as part of their company

policy or in each employee's employment contract.

 P a g e | 18

• The employee cannot also claim SIL days if you offer business vacation leave

of more than five days. It is noteworthy that there is no paid sick leave, so

workers may wind up using their vacation time to avoid losing pay when ill.

• As enacted by the law, Expanded Maternity Leave Act No 11210, pregnant

women will be given 105 days or 3 months of paid maternity leave, and can

be extended by another 30 days of leave without pay.

IV. Employee disciplinary action and compliant policy

• An employee is expected to (1) receive a warning during their first offense,

(2) receiving deduction pay for their second offense, and (3) a suspension or

termination for their third offense. However, depending on the scale of the

severity of their misbehavior, termination will be the disciplinary action.

• If an employee has grievances within their working environment, they can

send a formal complaint to the HR Depression and non-retaliation shall be

enacted in order to protect the employee from personal revenge from the

subject of the grievance.

 P a g e | 19

Legal Compliance

Table 7
Requirements

Requirements Prices
Barangay Business Permit Php 500.00 – 1,000.00
Mayor’s Business Permit Php 2,000.00
BIR Registration Documents Php 4,275.00
SSS, PhilHealth, PAGIBIG
Registration for Business Name – SEC Php 6,750.00
Business Approved Company Name -
Articles of Partnership -
Statements Concerning Assets and Liabilities -
Treasurer’s Affidavit -
Company Particulars – Seven Owners -

Table 8
BIR Registration Documents

BIR Registration Documents Price

BIR Annual Registration Fees Php 500.00
Documentary Stamp Php 75.00
Books of Account Php 200.00
Cost of Printing Official Receipts Php 3,500.00
Total Php 4,275.00

Table 9
Registration for Business Name

Registration for Business Name – SEC Price

Business Name Reservation for 90 days Php 120.00
SEC Express Lane Php 600.00
SEC Registration fee Php 2,530.00
Stock Transfer Book Php 500.00
BIR Documentary Stamps Php 1,500.00
Notarial Fees Php 1,500.00
Total Php 6,750.00
 P a g e | 20

Articles of Incorporation & Bylaws

General Partnership

ARTICLES OF PARTNERSHIP

OF

FORTH CYCLE

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned partners, all of legal age, residents and citizens
of the Philippines, have on this day voluntarily associated ourselves together for the
purpose of forming a general partnership under the following terms and conditions
and subject to existing and applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of this partnership

shall be FORTH CYCLE and shall transact business under the said company name.

ARTICLE II. Business Purpose: That the purpose/s for which this partnership is
formed is/are: bike sales and rentals.

ARTICLE III. Principal Place of Business: That the principal place of business of
this partnership shall be located at: City Walk, Zamora St, Tarlac City, 2300
Tarlac (Complete address)

ARTICLE IV. Term of Existence: That this partnership shall have a Non-Fixed
Term Contract which shall continue until it is cancelled by the partners.
 P a g e | 21

Articles of Partnership

ARTICLE V. Partners’ Circumstances: That the names, nationalities and complete

residence addresses of the partners are as follows:

Name Nationality Complete Residence Address

Fritzy P. Torrefranca Filipino Parairo Compound Purok 2 Brgy

Buenavista, Pura, Tarlac.

Mary Rose A. Aquino Filipino #22 Purok 1 Brgy. Sinense Anao, Tarlac.

Rhenz Myka B. Tandoc Filipino 190 Diza St. Poblacion, San Manuel,
Tarlac.

Jennifer E. Laxamana Filipino Isabel Subdivision San Nicolas

Poblacion, Conception Tarlac.

Aldrin Stephon I. Ang Filipino 143 Linsao Subd, Brgy. Abogado,

Paniqui, Tarlac.

Monica T. Acero Filipino Sitio Almendras Baculong, Victoria,

Tarlac

Abegail A. Borja Filipino Matunyacab, Gerona, Tarlac.

 P a g e | 22

ARTICLE VI. Capital Contributions: That the capital of this Partnership shall
be the amount of Php 1,225,000.00, Philippine Currency, contributed in cash by the
partners, as follows:

Name Amount Contributed

Fritzy P. Torrefranca 175,000.00

Mary Rose A. Aquino 175,000.00
Rhenz Myka B. Tandoc 175,000.00
Jennifer E. Laxamana 175,000.00
Aldrin Stephon I. Ang 175,000.00
Monica T. Acero 175,000.00
Abegail A. Borja 175,000.00

Total Php 1,225,000.00

That no transfer of interest which will reduce the ownership of Filipino

citizens to less than the required percentage of capital as provided by existing laws
shall be allowed or permitted to be recorded in the proper books of the partnership.

ARTICLE VII. Sharing Ratios: That the profits and losses of this partnership shall
be divided and distributed proportionately on the ratio of the capital contribution of
each partner.

ARTICLE IX. Management: That this partnership shall be under Fritzy

P. Torrefranca, as General Manager, who shall be in charge of the management of
the affairs of the company. He shall have the power to use the partnership name and
in otherwise performing such acts as are necessary and expedient in the management
of the firm and to carry out its lawful purposes.

ARTICLE X. Undertaking to Change Name: That the partners undertake

to change the name of this partnership, as herein provided or as amended thereafter,
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another corporation, partnership or person has acquired a prior right
to the use of that name or that the name has been declared as misleading, deceptive,
confusingly similar to a registered name, or contrary to public morals, good customs
or public policy.
 P a g e | 23

Articles of Partnership

IN WITNESS WHEREOF, we have hereunto affixed our signatures this Tuesday,

day of December 20,2022

Fritzy P. Torrefranca Mary Rose A. Aquino

(name of partner) (name of partner)
TIN TIN

Rhenz Myka B. Tandoc Jennifer E. Laxamana

(name of partner) (name of partner)
TIN TIN

Monica T. Acero Aldrin Stephon I. Ang

(name of partner) (name of partner)
TIN TIN

Abegail A. Borja
(Name of partner)
TIN

(Names and Signatures of the partners and TIN)

 P a g e | 24

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

____________________________) S.S.

BEFORE ME, a Notary Public, for and in _________________, this

____day of _________, 20___, personally appeared the following persons:

Name TIN/ID/Passport No. Date &

Place Issued

Fritzy P. Torrefranca

Mary Rose A. Aquino

Rhenz Myka B. Tandoc

Jennifer E. Laxamana

Aldrin Stephon I. Ang

Monica T. Acero

Abegail A. Borja

known to me and to me known to be the same persons who executed the foregoing
Articles of Partnership constituting of 4 pages, including this page where the
acknowledgement is written, and they acknowledged to me that the same is their free
and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and place above written.

NOTARY PUBLIC
Doc. No. ______;
Page No. ______;
Book No. ______;
series of 20 ______.
 P a g e | 25

Marketing Aspect

Industry analysis

Here is the industry SWOC analysis for FORTH CYCLE, specifically for FORTH

CYCLE’s location City Walk, Zamora St, Tarlac City, 2300 Tarlac

The group went to look for potential locations at Tarlac City that are mostly

affected by traffic jams and where there is foot traffic to make sure that our bicycle

business will be easily known and accessible to all. It is an advantage that there are no

near competitors at the chosen location. The business would like to focus on reaching

its target market which are the students, employees, and commuters who go or travel

along Tarlac City. As the business is all about bicycles, the group makes sure that its

location is applicable of what it offers, meaning that it is friendly and safe for bicycle

users. And the main goal is to cut lost time due to traffic when commuting, and at the

same time is that the business will contribute positively to our environment.

• Strength

Location: Our location in City Walk will draw attention to nearby shoppers

and students who is our target customers. There is no near bike shop from our

location which will give us advantage and less competition in the market.

Also, our location has more foot traffic than most of our competitors

Uniqueness: Although there are other bike shops in Tarlac, we stand out

unique against our competitors for we will be the first to offer bike rentals

inside Tarlac city.

 P a g e | 26

Foot traffic: One of the strengths that we have in our location is foot traffic.

City Walk is a very crowded place that has a lot of foot traffic, especially

students, which is one of our targeted customers.

• Weakness

Bike lane: There is no Bike lanes in the location of our business

Rental fee: Because We our located in a mall our rental fee for the shop is

expensive.

Location: There is no bike lanes in the location of our business.

• Opportunity

Extension: We can expand our business by putting up bike parking space or

docking throughout Tarlac city and TSU (Tarlac State University) campuses

where they can park the rental bikes and rent them there.

Technological Advancement: Putting AI device on bikes so they can be

rented in docking stations without human interaction. This will make bike

renting easier and more accessible.

Government project: The government of Tarlac City has a ongoing projects

of constructing bike lanes inside the City.

• Challenges

Jeepneys: Because they have route around Tarlac City and is the major

transportation vehicle in Tarlac city.

Bike lane: There is no Bike lanes in Tarlac City, the only place that currently

has bike lane is in F, Tañedo St.

 P a g e | 27

Competitors: There's both high-end and entry levels bike shops in Tarlac that

is already stablished. Therefore, pricing of our products and services will be

limited because of competitors.

Analysis: Take note that this SWOC analysis has been made after viewing

and analyzing the location of Forth Cycle to correctly analyze its Strengths,

Weaknesses, Opportunities and Challenges.

Demand and Supply Analysis

Demand Analysis

Forth Cycle wants to bring the target consumers the best and affordable bike

units to be acquired plus a rental option to those who cannot afford a single unit. The

affordable bikes will suit the customers’ taste and are of great quality even at a low

price. Bikes that will be rented by the customers are offered brand new with similar

quality but are different with the units for sale.

To identify how willing the customers in buying the units, the researchers ask

the participants on the survey of how much they are willing to pay for a unit and how

much will be the payment for rent. Even if the concept of renting is not yet popular in

the city, few are willing to try this new idea made by the researchers. When the

pandemic occurred, a lot of bikers’ groups opened, and people did follow this trend

and a lot of them brought a single unit or two for themselves. It became the most used

transportation mode for the past two years. In Tarlac City, bike lanes have been added
 P a g e | 28

on the roads to be used by bikers. There are also plans and projects for adding new

bike lanes in addition to the current one to accommodate more bikers.

Supply Analysis

As a start-up business in the industry, the suppliers are not easily identified and

selected. It is hard work to be able to convince some of the bike shops built in the

City as some are not willing to disclose their suppliers worrying about a competitor.

The researchers then decided to look for online suppliers as it’s easier to

communicate and close a deal with the price and quality of the units. The first

supplier that has been chosen is from Marikina. The link to their Facebook page is

provided below. Keila’s Bike Shop offers bike units, accessories, and bike parts. The

second supplier is from Malabon City. Happy Cycle is the same as the first one with

their offers. The differences between these two suppliers are their price and

conditions.

Supplies are enough to cater to the demand of consumers with these two

suppliers. One of the reasons is that Forth Cycle wants to use a mode, demand unit

for order. The business wanted to save space for the shop, the costs and maintenance

of units for sale. The qualities are checked before delivering the ordered unit.

The researchers have decided on eight types of bikes to cater to the public’s

interests, which are mountain, road, hybrid, women’s, or cruiser, folding, BMX,

electric, and kiddie bikes. Among these eight types of bikes, there will be an option of

a budget friendly bikes, new entry-level bikes, and premium bikes, however, for the

kiddie bikes, there are options for kids ages two to four years old and four to eight

years old which are twelve inches and sixteen inches. Aside from bikes, there will be
 P a g e | 29

available bike parts, accessories, clothing, and service repairs for clients. The allotted

budget for all of these is Php 719,724.40,

Links to Facebook Page of suppliers:

https://www.facebook.com/KEILASBIKESHOP

https://www.facebook.com/happycyclemalabon

Forth Cycle’s Competition

Direct Competitors

Our business has competitors within Tarlac City that offers similar products and

services and target the same customers within the city area where our business

pinpoint. The following are the considered direct competitors of our business: TCW

Cycle World located at MH Del Pilar St. Tarlac City (650m). MASCOM Marketing

located at F. Tañedo St. Brgy. Poblacion Tarlac City (1.2km). BBB Cycles and Gears

located at F. Tañedo St. Tarlac City (1.5km). These businesses commonly visited by

customers to purchased bicycle parts and ready-made bicycles. Our business will

cater the customers not just for the ready-made and bicycle parts nonetheless what

makes our business go beyond is the rental offers and rent to own bicycle.

Indirect Competitors

Our competitor here offers different product and services and target a different

clientele but in the same general category. We chose the ROPALI Motorcycle dealer

as our indirect competitor, it is located at Ninoy Aquino Blvd Brgy. Cut Cut 1st

Tarlac City (1km from our location). Ropali and our business will become indirect
 P a g e | 30

competitor in terms of its dealership and selling of cycle parts and the likes of

transaction for credit payments.

Phantom Competitors

The business that offers different products and services but target the same

customers in our geographic area. One of our sightseeing replacements competitors of

our business is the Super 99 Shopping Center which is located at the Zamora Street in

front of City Walk mall. This shopping center might expand its category that cater the

same as our target market and that will soon turn to be our competitor for its wide

range scope of customers.

Identifying Target Market

The group conducted a survey regarding the feasibility study of starting a bike

shop business. There are 60.9% of female and 39.1% of male out of one hundred and

fifteen respondents who have participated, 77.4% of the respondents is in the age

range of 21 to 25 years old while 20.9% are 15 to 20 years old and 91.3% are

students.
 P a g e | 31

Sex: Male or Female

39.1%
Female
Male
60.9%

Figure 3:Male and Female Ratio

Age Ranges

14 years old - below

0.9%
15 to 20 years old
0.9% 21 to 25 years old
20.9%
26 to 30 years old
31 to 35 years old
36 to 40 years old
41 to 45 years old
77.4%
46 to 50 years old
51 to 55 years old
56 to 60 years old

Figure 4:Age Range

 P a g e | 32

Category or Group

1.7% Student
0.9%
2.6%0.9% Single Parent
0.9%
0.9%1% Mother / Father
Elderly Worker
Traveler
Unemployed
91.3% Friend
Fresh Graduate
Fresh Grad

Figure 5:Status of Respondents

The respondents are asked if they live in Tarlac city, the results showed that

more than a half of the survey respondents came from outside the city with 50.4%

and only 49.6% from the respondents resides in Tarlac city. Even if most of the

respondents live outside Tarlac City, the percentage difference isn’t too large. The

50.4% consist of people who live in different municipalities, and some are considered

near to the city so the location, which is in Zamora Street, Tarlac City is still

appropriate.
 P a g e | 33

Resident of Tarlac City: Yes or No

Yes
50.4% 49.6%
No

Figure 6:Agreement of Respondents

Out of the transportation options listed on the survey form, jeep is the most used

mode of transportation with 35.7%, followed by tricycle with 29.6%, bus 19.1%, and

own car or motor 14.8%. Most respondents spend one hundred pesos and above for

transportation expenses with 29.6%, next is fifty-six pesos to seventy-five pesos with

20.9%, sixteen pesos to thirty-five pesos with 16.5%, thirty-six to fifty-five pesos

with 16.5%, fifteen pesos and below with 11.3%.

 P a g e | 34

Mode of Transportation

0.9%
14.8% Tricycle
29.6%
Jeep
19.1% Bus
Own Car / Motor
Tricycle and Jeep
35.7%

Figure 7:Mode of Transportation

Range of Amounts Spent on Transportation

11.3% 15 php - below

29.6% 16 to 35 php
16.5%
36 to 55 php
56 to 75 php
5.2%
16.5% 76 to 95 php
20.9% 100 php - above

Figure 8: Amounts spent on Transportation

Out of one hundred fifteen respondents, 64.3% agreed to try a bicycle as a

means of transportation, while 35.7% said no. Most of them currently does not own a

bike but have plans on buying one. Respondents were asked which type of bike they

will want to acquire if had a chance. Out of the respondents, mountain bike is the
 P a g e | 35

most preferred type as 22% of the survey participants choose it, electric bike has

17.4%, road bike has 16.5%, and women’s bike has 8.7% then 7% for hybrid bikes.

Since most of the respondents want electric bikes which has placed number two to

customer’s preference, our business will try to offer it to on the shop.

Bicycle as a new mode of Transportation: Yes or No

35.7%
Yes
No
64.3%

Figure 9: Agreement on New Mode of Transportation

 P a g e | 36

Currently Own a Bike

33%
Yes
No
67%

Figure 10: Bicycle Ownership

Plans to Buy a Bike in the Future

27%
Yes
No
73%

Figure 11: Future Bike Acquisition

 P a g e | 37

Type of Bike Prefer to Buy

Mountain Bike
Road Bike
17.4% 22.6% Hybrid Bike
Women's Bike
17.4% Cruiser Bike
16.5% Folding Bike
1.7%
8.7% BMX Bike
8.7% 7%
Electric Bike
N/A

Figure 12: Bike Preference

The respondents were given an option to how would they want to acquire a bike

unit, whether to buy or to rent. The respondents who would like to buy a bike are

around 86.1%, 12.2% is not interested, and the remaining percentage wants to rent.

We couldn’t blame the respondents as the concept of renting a bike is very new to

them and they are still hesitating.

 P a g e | 38

Options for Acquisition

12.2% Buy a bike

1.7%

Rent a bike

Not interested in having a

86.1% bike

Figure 13: Options for Bike Acquisition

Most of them would like to spend 5,000 Php to 9,000 Php with 32.2%, 10,000

Php to 19,000 Php with 29.6%, and less than 5,000.00 Php with 18.3% to acquire a

bike. The respondents are asked then how much they are willing to spend for rent if

the business will try this mode. The survey result explains how the people see renting

so the majority said they do not know, 24.3% wants 20php-25php, less than 20php

and 25php-30php have both got 11.3%.

 P a g e | 39

Amount Willing to Spend

12.2% less than 5,000

18.3%
3.5% 5,000 to 9,000 php
4.3%
10,000 to 19,000 php
20,000 to 29,000 php
29.6% 32.2% 30,000 php - above
N/A

Figure 14:Amount Willing to Spend

Most people, if really given a chance, would choose or shift to use a bike as a

means of transportation especially when destinations are not that far from the

location. Not only will it give them own time to spend for a ride but also will benefit

the environment at best. Most of the respondents are students. Most are at the age

range of 21-25 years old followed by the age range of 15-20 years old and as start-up

business locating at City Walk near Tarlac State University Main Campus the

demand coming from the students from the said university will be the main target

market of the business as the school have different campuses from different areas.

The business can offer the consumers an option if the usual mode of transportation

isn’t available. Other transportations are costly, and some cannot accommodate

passengers during rush hours. Additionally, the business is open for females and

males, for bikers, and for newbies as it offers series of bikes to choose to rent or to

buy.
 P a g e | 40

Projected Demand/Sales

a.) Projected Selling Price

i. Bikes

Table 10
Projected Selling Price-Bikes
Type of Mountain Bikes Road Bikes Hybrid Bikes
Bike Budget New Premiu Budget New Premi Budget New Premium
Friendly Entry- m Friend Entry- um Friendly Entry- Bikes
Bikes level Bikes ly level Bikes Bikes level
Bikes Bikes Bikes Bikes
Selling 6,000 19,443 71,666 7,221 16,221 103,33 5,555 12,777 38,888
Price 2
Unit 4,000 12,962 47,777 4,814 10,814 68,888 3,703 8,518 25,925
Cost
Type of Women’s/Cruiser Bikes Folding Bikes BMX Bikes
Bike Budget New Premiu Budget New Premi Budget New Premium
Friendly Entry- m Friend Entry- um Friendly Entry- Bikes
Bikes level Bikes ly level Bikes Bikes level
Bikes Bikes Bikes Bikes
Selling 6,110 14,999 29,444 10,499 19,443 29,999 7,776 13,332 27,777
Price
Unit 4,073 9,999 19,629 6,999 12,962 19,999 5,184 8,888 18,518
Cost
Type of Electric Bikes Children/Kiddie Bikes
Bike Budget New Entry- Premium 12” for 2 - 4 years 16” for 4 - 8 years old
Friendly Bikes level Bikes Bikes old
Selling 11,111 23,970 66,666 1,485 2,379
Price
Unit Cost 7,407 15,980 44,444 990 1,586
 P a g e | 41

ii. Bike Parts

Table 11
Projected Selling Price-Bike Parts

Bike Pedal Handlebars Chain Stem

Part
Class Class Class Class Class Class Class Class
C A C A C A C A
Selling 450 700 470 950 649 1,150 230 1,150
Price
Unit 333 519 348 704 481 852 170 852
Cost
Bike Cassettes Inner Tube Tire Seat Post
Part
Class Class Class Class Class Class Class Class
C A C A C A C A
Selling 600 2,550 150 360 180 600 450 950
Price
Unit 445 1,889 111 267 133 445 333 704
Cost
Bike Fork Hub Rim -
Part
Class Class Class Class Class Class -
C A C A C A
Selling 600 3,299 299 1,050 549 2,599 -
Price
Unit 445 2,444 222 778 407 1,925 -
Cost
 P a g e | 42

iii. Bike Accessories

Table 12
Projected Selling Price-Bike Accessories

Bike Bike Light Water Hand/Floor Carrier/Bike

Accessory Bottle Clip Pump Rack
Clas Clas Clas Clas Clas Clas Class Class
sC sA sC sA sC sA C A
Selling 749 1,650 80 350 159 1,450 749 1,900
Price
Unit Cost 555 1,222 59 259 118 1,074 555 1,408
Bike Water Fender Reflector Toe Clip
Accessory Bottle
Clas Clas Clas Clas Clas Clas Class Class
sC sA sC sA sC sA C A
Selling 150 1,299 200 600 100 650 299 750
Price
Unit Cost 100 962 148 445 74 482 222 556
Bike Folding Bell Anti-theft Smartphone
Accessory Bike Device Bracket
Protection
Case
Clas Clas Clas Clas Clas Clas Class Class
sC sA sC sA sC sA C A
Selling 150 900 115 550 540 2,600 470 1,150
Price
Unit Cost 100 667 85 400 400 1,926 348 852
Bike Saddle - - -
Accessory Cover
Clas Clas - - -
sC sA
Selling 135 550 - - -
Price
Unit Cost 100 400 - - -
 P a g e | 43

iv. Clothing

Table 13
Projected Selling Price-Clothing

Bike Bike Shorts Bike Jersey Bike Socks

Clothing Class C Class A Class C Class A Class C Class A
Selling 299 1,399 125 849 95 600
Price
Unit Cost 222 1,036 93 629 70 445
Bike Bike Gloves Helmet Bike Shoes
Clothing Class C Class A Class C Class A Class C Class A
Selling 135 550 250 1,499 259 2,999
Price
Unit Cost 100 400 185 1,110 192 2,222
v. Repair Services

Table 14
Projected Selling Price-Repair Services

Repair Service Cost Price

Major Tune Up- With Replacement 750 925

Major Tune Up- Without 350 420
Replacement
Minor Tune Up 125 143

vi. Bike Rental

Table 15
Projected Selling Price-Bike Rental

Type Road Bikes Mountain Bikes Hybrid Bikes

of 12 24 3 12 24 3 12 24 3 days
Bike hours hour days hours hours day hours hour
s s s
Rent 100 150 350 75 125 250 50 99 200
Price
Unit 3,703 4,000 4,814
Cost
 P a g e | 44

b.) Projected Monthly Sales

Assumption:

Table 16
Projected Monthly Sales-Month Status

January Average Month

February Average Month
March Average Month
April Average Month
May Bad Month
June Bad Month
July Average Month
August Average Month
September Average Month
October Good Month
November Good Month
December Good Month
i. Bicycles

Table 17
Projected Monthly Sales-Bikes

Mountain Bikes Road Bikes Hybrid Bikes

Type of
Bike Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month
Budget Friendly Bikes 1 2 4 1 2 3 2 2 3

New Entry-level Bikes 1 1 2 0 1 2 0 1 1

Premium Bikes 0 0 1 0 0 1 0 0 1
Women’s/Cruiser Bikes Folding Bikes BMX Bikes

Type of
Bike Bad
Month
Average
Month
Good
Month
Bad
Month
Average
Month
Good
Month
Bad
Month
Average
Month
Good
Month

Budget Friendly Bikes 1 1 2 0 0 1 0 1 2

New Entry-level Bikes 0 1 1 0 0 1 0 0 1
Premium Bikes 0 1 1 0 1 0 0 0 0
 P a g e | 45

Table 18
Projected Monthly Sales-Bikes Continuation

Electric Bikes Children/Kiddies Bikes

Type of Bad Average Good
Type of Bad Average Good
Bike Month Month Month Bike Month Month Month

Budget Friendly Bikes 0 0 1

New Entry-level Bikes 0 0 1 12” for 2 - 4 years old 5 8 13
Premium Bikes 0 0 0 16” for 4 - 8 years old 4 6 10

Table 19
Projected Monthly Sales-Bikes Total

Bad Month Average Good Month

Month
TOTAL PROJECTED
15 28 59
UNITS
TOTAL PROJECTED
66,824 200,472 5,539,789
MONTHLY SALES

ii. Bike Parts

Table 20
Projected Monthly Sales-Bike Parts

Bike Part Pedal Handlebars Chain

Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Class C 2 4 6 3 3 6 2 4 8
Class A 1 2 3 2 1 3 1 2 4
Bike Part Stem Cassettes Inner Tube
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month
Class C 1 2 3 1 1 5 3 3 4
Class A 1 0 2 2 0 3 2 2 1

Bike Part Tire Seat Post Fork

Bad Average Good Bad Average Good Bad Average Good

Month Month Month Month Month Month Month Month Month
Class C 2 4 8 2 2 5 1 1 3
Class A 2 2 1 0 2 3 0 0 1
Bike Part Hub Rim Fork
Bad Average Bad Avera Good Good Bad - -
Month Month Month ge Month Month Month
Month
Class C 1 1 1 1 3 3 1 - -
Class A 0 0 0 0 1 2 0 - -
 P a g e | 46

Table 21
Projected Monthly Sales-Bike Parts Total

Bad Month Average Month Good Month

Class C Class A Class C Class A Class C Class A
TOTAL
PROJECTED 19 11 27 11 52 24
UNITS
TOTAL
PROJECTED
7,593.00 11,920.00 10,929.00 8,470.00 22,260.00 32,857.00
MONTHLY
SALES

iii. Bike Accessories

Table 22
Projected Monthly Sales-Bike Accessories

Bike Accessory Bike Light Water Bottle Clip Hand/Floor Pump

Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Class C 2 3 5 0 2 4 2 1 3
Class A 1 2 2 0 1 1 0 1 2
Bike Accessory Carrier/Bike Rack Water Bottle Fender
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Class C 2 3 3 0 2 5 2 2 4
Class A 2 1 2 0 0 2 0 1 1
Bike Accessory Reflector Toe Clip Folding Bike
Protection Case
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Class C 3 4 4 0 1 3 1 2 2
Class A 1 1 1 0 0 1 0 0 1
Bike Accessory Bell Anti-theft Device Smartphone Bracket
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Class C 3 5 8 3 3 6 1 2 5
Class A 1 2 2 1 2 2 0 1 1
Bike Accessory Saddle Cover - -
Bad Average Good - - -
Month Month Month - - -
Class C 1 2 3 - - - - - -
Class A 1 1 2 - - -
- - -
 P a g e | 47

Table 23
Projected Monthly Sales-Bike Accessories Total
Bad Month Average Month Good Month
Class C Class A Class C Class A Class C Class A

TOTAL
20 7 32 13 55 20
PROJECTED UNITS
TOTAL
PROJECTED 6,734.00 9,800.00 9,916.00 16,250.00 16,848.00 24,398.00
MONTHLY SALES

iv. Clothing

Table 24
Projected Monthly Sales-Clothing
Bike Clothing Bike Shorts Bike Jersey Bike Socks
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Class C 3 4 7 4 5 8 2 4 5
Class A 1 2 2 0 1 2 0 1 2
Bike Clothing Bike Gloves Helmet Bike Shoes
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month
Class C 4 7 10 4 8 12 0 1 3
Class A 2 1 3 2 1 4 0 1 1

Table 25
Projected Monthly Sales-Clothing Total

Bad Month Average Month Good Month

Class C Class A Class C Class A Class C Class A
TOTAL
17 5 29 7 45 14
PROJECTED UNITS
TOTAL
PROJECTED 3,125.00 5,497.00 5,401.00 9,295.00 8,689.00 16,341.00
MONTHLY SALES
 P a g e | 48

v. Repair Services

Table 26
Projected Monthly Sales-Repair Services

Bike Repair Major Tune Up- Major Tune Up- Minor Tune-Up
Services With Replacement Without
Replacement
Bad Average Good Bad Average Good Bad Average Good
Month Month Month Month Month Month Month Month Month

Service
4 8 10 11 20 25 15 22 35
Rendered

Table 27
Projected Monthly Sales-Repair Services Total
Bad Month Average Good Month
Month
TOTAL SERVICE RENDERED 30 50 70
TOTAL PROJECTED 10,458 18,935 24,738
MONTHLY SALES

vi. Bike Rental

Table 28
Projected Monthly Sales-Bike Rental

Type of Road Bikes

Bike Bad Month Average Month Good Month
12 24 3 1 week 12 24 3 1 week 12 24 3 1 week
hours hours days hours hours days hours hours days
Rents 8 1 0 0 22 1 1 1 35 7 5 3
Type of Mountain Bikes
Bike Bad Month Average Month Good Month
12 24 3 1 week 12 24 3 1 week 12 24 3 1 week
hours hours days hours hours days hours hours days
Rents 10 2 0 0 25 3 1 1 35 5 2 2
Type of Hybrid Bikes
Bike Bad Month Average Month Good Month
12 24 3 1 week 12 24 3 1 week 12 24 3 1 week
hours hours days hours hours days hours hours days
Rents 12 2 1 0 28 2 1 1 50 9 2 2
 P a g e | 49

Table 29
Projected Monthly Sales-Bike Rental Total

Bad Month Average Good Month

Month
TOTAL PROJECTED 2,948 8,598 17,741
MONTHLY SALES

c.) Projected Annual Sales

i. Bikes

Table 30
Projected Annual Sales-Bikes

Product Projected Capacity Annual Sales

Mountain Bikes
Budget Friendly Bikes 26 156,000.00
New Entry-level Bikes 14 272,202.00
Premium Bikes 2 143,332.00
Road Bikes
Budget Friendly Bikes 24 173,304.00
New Entry-level Bikes 12 194,652.00
Premium Bikes 2 206,664.00
Hybrid Bikes
Budget Friendly Bikes 18 99,990.00
New Entry-level Bikes 10 127,770.00
Premium Bikes 2 77,776.00
Women’s/Cruiser Bikes
Budget Friendly Bikes 14 85,540.00
New Entry-level Bikes 10 149,990.00
Premium Bikes 10 294,440.00
Folding Bikes
Budget Friendly Bikes 10 104,990.00
New Entry-level Bikes 2 38,886.00
Premium Bikes 8 239,992.00
BMX Bikes
Budget Friendly Bikes 12 93,312.00
New Entry-level Bikes 2 26,664.00
Premium Bikes 0 0.00
 P a g e | 50

Table 30
Projected Annual Sales-Bikes Continuation

Electric Bikes
Budget Friendly Bikes 2 22,222.00
New Entry-level Bikes 2 47,940.00
Premium Bikes 0 0.00
Children/Kiddie Bikes
12” for 2 - 4 years old 100 148,500.00
16” for 4 - 8 years old 76 180,804.00

ii. Bike Parts

Table 31
Projected Annual Sales-Bike Parts

Product Projected Capacity Annual Sales

Pedal 72 32,400.00
Handlebars 58 27,260.00
Chain 78 50,622.00
Stem 38 8,740.00
Cassettes 38 22,800.00
Inner Tube 60 9,000.00
Tire 74 13,320.00
Seat Post 52 23,400.00
Fork 26 15,600.00
Hub 24 7,176.00
Rim 36 19,764.00
 P a g e | 51

iii. Bike Accessories

Table 32
Projected Annual Sales-Bike Accessories

Product Projected Capacity Annual Sales

Bike Light 60 44,940.00
Water Bottle Clip 34 2,720.00
Hand or Floor Pump 30 4,770.00
Carrier or Bike Rack 50 37,450.00
Water Bottle 30 4,500.00
Fender 38 7,600.00
Reflector 58 5,800.00
Toe Clip 16 4,784.00
Folding Bike Protection Case 24 3,600.00
Bell 84 9,660.00
Anti-theft Device 64 34,560.00
Smartphone Bracket 38 17,860.00
Saddle Cover 38 5,130.00

iv. Bike Clothing

Table 33
Projected Annual Sales-Bike Clothing

Product Projected Capacity Annual Sales

Bike Shorts 74 22,126.00
Bike Jersey 76 9,500.00
Bike Socks 58 5,510.00
Bike Gloves 102 13,770.00
Helmets 116 29,000.00
Bike Shoes 24 6,216.00
 P a g e | 52

v. Repair Services

Table 34
Projected Annual Sales-Repair Services

Repair Service Projected Capacity Annual Sales

Major Tune-Up – with 92
85,100.00
Replacement
Major Tune-Up – without 232
97,440.00
Replacement
Minor Tune-Up 276 39,468.00

vi. Bike Rental

Table 35
Projected Annual Sales-Bike Rental

Bike Type Projected Capacity Annual Sales

Hybrid Bikes
12-hour 444 22,200.00
24-hour 94 9,306.00
3 days 50 10,000.00
1 week 24 9,600.00
Mountain Bikes
12-hour 294 22,050.00
24-hour 68 8,500.00
3 days 34 8,500.00
1 week 14 7,000.00
Road Bikes
12-hour 406 40,600.00
24-hour 88 13,200.00
3 days 54 18,900.00
1 week 22 15,400.00
 P a g e | 53

4Ps of Marketing: Product

During the pandemic bicycles become the most popular transportation vehicle

due to lack of buses and jeeps. There are different kinds of bike that can be found in

the physical store of forth cycle. Forth cycle can offer mountain bikes, road bikes,

women’s or lady’s bike, cruiser, folding, BMX and electric bikes. Aside from the

physical products that Forth cycle offers, we also have services repairs. The services

that we offer are Major tune up with and without replacement and Minor tune up this

is to ensure the safety of bike riders during their rides. Bike rents is also available in

our shop to support those who don’t want to buy their own bike but wanted to have a

service bike. Clients can rent either hybrid bikes, mountain bikes and road bikes, they

can rent our bikes for a minimum time of 12 hours and maximum of 1 week.

For better understanding Forth cycle classified the bikes into 3 categories

namely budget friendly bikes, new entry-level and premium bikes. This classification

is based on the quality of the items and its brand. For the Budget Friendly bikes these

are the bicycles that has aluminum and steel frame, New entry-level bikes have the

Alloy and Carbon frames we can say that it is the better version of budget friendly

bikes. Lastly the Premium Bikes, these are made of Titanium and Carbon.

The bicycle parts, accessories and clothing were classified into 2 classes; the

Class C and the Class A. Class C has low-mid quality items, it has a minimum life

span of 2 months depending on how often the rider were using it, the class A on the

other hand is a high-quality item which we guarantee that can be used for a long

period of time. Forth cycle can offer everything that the riders or “siklista” need in
 P a g e | 54

upgrading and maintaining their beloved bikes. Below are some of the products that

Forth cycle can offer.

Table 36
Bicycle Products

SAMPLE PRODUCT FOR MOUNTAIN BIKES

Image Name Specifications
Foxter ft-203 Alloy Handle Bar 31.8mm
mechanical (Budget Alloy Stem
Friendly Bikes) ALLOY
Internal Cabling
3x8 speed
Dual Mechanical Disc Brakes
PHANTOM C700 Model: C700
HYDRA (New Entry- Frame: 16'' Alloy
Level Bikes) Shifter: Shimano Alivio
Seatpost Alloy
RD: Shimano Alivio
Hub: Alloy
Stem: Alloy
Speed:(1X9) 9 Speed
Brake: X-Spark Hyd Brake
SAVA Deck 6.0 Shimano Deore derailleur
Deore 30S Mountain Strong yet lightweight
Bike (Premium Bikes) Good suspension
Highly effective brake
Continental tires
 P a g e | 55

Table 36
Bicycle Products Continuation

SAMPLE PRODUCT FOR ROAD BIKES

PROMAX PR20 Tires size 700c x 35c
(Budget Friendly Ragusa tan wall tire(kayden)
Bikes) Mechanical dual disc brake
3 x 7 Speed shifter
Alloy frame
Alloy stem
Alloy rims
Quick release seat post
Thumb shifter
Sealed bearing bottom bracket
SUNPEED TRITON Classic Triton frame design
(New Entry-Level High quality alloy
Bikes) Lightweight
2 x 8 drivetrain
Sensah Reflex
Prowheel RPE crank
ZStar Calipers
Chaoyang Tires
MOUNTAINPEAK Size 50cm
STRIKER 2022 Mountainpeak Aero Frame
(Premium Bikes) 2x8 Speed
Shimano Claris STI Shifters
FD: Shimano Claris
RD: Shimano Claris
Prowheel Crankset
Branta Striver Alloy Rims
Quando Hubs
Mountainpeak Seatpost
Mountainpeak Saddle
 P a g e | 56

Table 36
Bicycle Products Continuation

SAMPLE PRODUCT FOR HYBRID BIKES

BETTA FIXIE Chromoly Steel Frame 18"
HYBRID Mechanical Front Brake
Chain Wheel 44t
18t Fixed And Freewheel Sprocket
Gilur Tire 700 X28c
Rim 35cm

TOSEEK All New Toseek Targa Gx Gravel

TARGA GX Frame: Toseek Targa Gx Internal Cabling
Fork: Toseek Targa Gx Alloy Smooth
Stem: Toseek Alloy
Seat Post: Toseek Alloy
Crank: Toseek Alloy 1*
Sti: Sensah 1*9speed
Rd: Sensah 9speed
Hub: Cassette Alloy 2bearing
Tire: Compass Skin Wall
Saddle: Toseek
Disc Brake: Mechanical 160mm
SAMPLE PRODUCT FOR WOMEN’S OR CRUISER BIKES
Ladies Bike#24 Frame size: 24
Landao Single Speed
Main material: Steel semi solid
Solid tubeless tire
Net Weight: 18 Kilograms
Recommended Height: 5'0 to 5'6"
Color may be slightly darker or lighter
because of photo settings.
Classic 26 x 2.25 Tire Size
Schwinn High Tensile Steel Frame
Hornet 26" Single Speed
Cruiser Bike Shimano Mechanism
Moon Bar
Alloy Rim
Foot Brake (Coaster Hub)
Original Scwhinn Saddle
Original Schwinn Handle Grip
Original Schwinn Tires
With Cup Holder
 P a g e | 57

Table 36
Bicycle Products Continuation
SAMPLE PRODUCT FOR FOLDING BIKES
GARUDA 20inches
ROBIN GD-07 21 speed alloy frame
20x 1.95 kenda tires
Shimano groupset
Pro wheel alloy crankset
Mechanical Disc break
Rigid Folding Size: 20”
Bike Gear: 7 speed
Frame: High carbon steel
Rim: Aluminum alloy spoke wheel
Gross weight: 16kg
Packing Size: 83*32*65cm
Pedal: Jinyuanda 103 Model pedal
Seat: 3029 comfortable mtb seat
bike brake lever: Black B68 All aluminum
brake lever
SAMPLE PRODUCT FOR BMX BIKES
SE RACING Frame: Stu Thomsen Replica
QUADANGLE Fork: Cowboy Cut Landing Gear, Full Cr-Mo
BMX Bike Headset: Tange DX4, Aluminum Cups, 1-1/8"
Threadless, SE Wing Logos on Bottom Cup
Rims/Wheels: Double-wall
Hubs: Sealed Bearing SE Mohawk Hubs, 36H
High-Flange Alloy
Bottom Bracket: Sealed Bearing American
Handlebars: Big Honkin' Cr-Mo Cruiser Bar,
29" x 6", 10° Backsweep, 1° Upsweep
Dblocks Big Retro 6061 aluminum Big Ripper frame with
Ripper 29 Floval tubing, looptail rear end, American
bottom bracket, and classic PK Ripper
wishbone plate 
Full Cr-Landing Gear forks 
Cr-Mo Power Wing cruiser bars 
Double-wall rims with sealed bearing high-
flange hubs 
SE 3-piece V-Ridge cranks with alloy SE
sprocket 
 P a g e | 58

Table 36
Bicycle Products Continuation

SAMPLE PRODUCT FOR ELECTRIC BIKES

Cheetah 26” Battery: LG Battery Cells 48V 460Wh
Motor: E-VéLO 500W Hub Drive
Display: LCD Color Screen
Weight: 20.2kg + Battery
Charging Time: 5-6 hours
Speed Limit: 35KM/H
Range: 40-60KM in PAS Mode
Frame: 15″ Alu Frame Integrated Battery
Shifter: Shimano TX30
HUSKY 27.5” Battery: LG Battery Cells 48V 768Wh
Charging Time: 5-6 hours
Motor: Bafang 750W Mid Drive
Speed Limit: 45KM/H
Display: LCD Color Screen
Range: 60-90KM in PAS Mode
Weight: 20.7kg + Battery
SAMPLE PRODUCT FOR KIDDIE BIKES
16” Kids Bike Advanced 16" bike is great for kids on all of
their most intense adventures! For kids aged 4
- 6 years (105 -120cm) (3.4’ft- 3.9’ft). With
its aluminum parts, this bike weighs just 7.3
kg when fully equipped! The chain guard,
stand and mudguard make this bike reassuring
and versatile. Available in 2 colors.
 P a g e | 59

Bike Parts

So aside from the brand-new bikes that Forth Cycle offers, bike parts or spare

parts are also available in our store this is to ensure that the bicycles will be well

maintained in order for the clients to have a safe ride. Below are some bike parts that

Forth Cycle offers.

Table 37
Bicycle Parts

Image Name Description

Inner Inner tubes come in a range of sizes, as well as two

main valve types. These are the two key factors to
Tube consider when making your choice of inner tube. Inner
tubes vary in size depending on the circumference of
the wheel, and the width of the tire: Wheel
Diameter/Circumference and Tire Width.
Bike The diameter of the tire must match the diameter of the
rim, but the width of the tire only has to be in the range
Tire of widths appropriate for the width of the rim, while
also not exceeding the clearances allowed by the frame,
brakes, and any accessories such as fenders. Diameters
vary from a large 910 mm, for touring unicycles, to a
small 125 mm, for roller skiing. Widths vary from a
narrow 18 mm to a wide 119 mm for the Surly Big Fat
Larry.
Bike Just as bicycles come in many varieties, there are
Pedals different types of pedals to support different types of
cycling. These are Flat and platform, Quill, Clipless
pedals, Float and tension, Magnet pedals, Folding.
 P a g e | 60

Table 37
Bicycle Parts Continuation

Brake Pads There are two main types of brake pads, reflecting
the two main categories of cycle brake systems –
rim brakes and disc brakes. Rim brakes use the
rotating rim of the wheel as a braking surface.
Instead of using the rim as a braking surface, disc
brakes use a circular metal disc mounted on the
hub of the wheel.

Gear There are various types of shifter: Grip shifter - a

Shifter wheel with click stops surrounding the handlebar is
turned until the desired gear is reached, though
typically one gear at a time, Trigger shifter - a lever
is pulled or pushed to change gears one at a time,
Thumb shifter, Road bike shifter integrated with
brake levers, sometimes known as a "brifter".

Handlebar Handlebars usually have tape or grips to provide

Tape grip and comfort. There are many types of
handlebar tape: Polyurethane tape, Composite
rubber tape, Cork tape, padded tape, Bike ribbon,
Benotto "Cello-Tape", Cotton tape, Leather wrap,
An inner tube can be cut and wrapped as well and a
foam rubber tube has been used on inexpensive
bikes.
Bike A bicycle cassette is the cluster of sprockets
located on the rear hub of your bike, slotting onto a
Cassette freehub body and held firmly in place with a
threaded cassette lockring. A typical cassette can
have anything between five and 13 sprockets,
although most modern bicycle drivetrains use
either 9, 10 or 11..
Rim of the There are a wide variety of wheel sizes available
Bike on bicycles today, and if you explore folding bikes,
Wheel recumbents, and other specialty bikes you’ll
discover even more.
 P a g e | 61

Table 37
Bicycle Parts Continuation

Bike Choosing a saddle begins with some simple

Saddle considerations – your gender, body structure, type
of riding, riding style and any riding preferences
you may have. Once chosen, a saddle still needs to
be fitted and adjusted to ensure you get the most
out of it.
Bike Chain A bicycle chain is simply a roller chain that
transfers the power you put into your pedals to the
wheel of your bike. The harder you pedal, the
faster your bike goes. Of course, that’s an
oversimplification but that is essentially the role
your bike chain plays in how the bike functions.
Stem There’s plenty to consider if changing or upgrading
your stem, from its length and angle to the material
a stem is made from and compatibility with your
handlebar and steerer tube. Mountain bike stems
are typically around 50-80mm long, while road
bike stems are longer, starting at around 80mm and
extending to 120mm or longer as the frame size
increases. Gravel bike stems typically sit
somewhere between the two.
Seatpost The most important task is to get a model that fits
your frame. Seatpost diameters can vary, but most
modern bikes use a diameter of 30.9mm or
31.6mm and there's a great choice of posts to fit
these frames. First off, if weight and comfort come
above cost, you’ll probably be looking at a carbon
post. The carbon shaft is lightweight, and many
will have a natural flex built in which helps
dampen road buzz, making it ideal for longer days
in the saddle – the Specialized S-Works SL Pave is
a prime example.
Handlebar Handlebars. All bikes whether mountain bikes,
road bikes or singlespeed fixed-gear bikes use a
trusty handlebar. There are so many types out
there. Each has its own unique advantages and
disadvantages that can make or break your biking
experience.
 P a g e | 62

Bike Accessories

Bike shops won’t be complete if it doesn’t offer accessories for the bikes.

Bike accessories also gives comfort and safety to riders. So here is some example of

bike accessories that we offer.

Table 38
Bike Accessories

Image Names Description

Folding Bike Bike cover for clean storage while

Protection and travelling or at home. This light, compact
Transport Cover cover can be carried on your bike so that
you can be agile and take your bike
anywhere.

Bike Light Front and rear LED bike light. This all-
weather rechargeable bike lights will surely
secure your safety going anywhere. Works
in 3 modes and strap fastening for easy
installation.

Water Bottle Affix your water bottle on your bike.

Lightweight and trendy bike bottle cage,
Clip available in 8 colors so you can find one to
match your bike.

Hand and Floor This pump combines the compact design of

a hand pump with the efficiency of a foot
Pump pump. Inflate up to 6 bars. Are you looking
for a reliable, versatile bike pump? With its
pressure gauge, powerful inflation, folding
base and dust cover, this hybrid bike hand
and foot pump is practical and comfortable
to use.
 P a g e | 63

Table 38
Bicycle Accessories Continuation

Carrier or Bike One Second Clip Tilt compatible bike rack.

Easily compatible with
Rack ONESECONDCLIP bag (pannier and top
case). Can carry up to 15kg load. Note:
incompatible with baby seats.
Water Bottle Bike bottle with a cap to protect the
drinking spout and a isothermal layer to
keep your drink either cold or hot. Capacity
450 mL Compatible with all bottle-holders
on the market The isothermal layer slows
the warming up or cooling down of the
liquid inside.
Fender This 26" to 29" front and rear bike
mudguard kit was designed to protect the
lower back, torso and face from mud
splashes while mountain biking. It's very
easy to mount / dismount. It clips to a
screw-on bracket, keeps its position setting
and won't budge as you ride!
Reflector Our teams have these two wheel reflectors
so that you can be seen from the side when
cycling. Bike wheel reflectors. Certified.
Pack of two. This can help you to be safe
during unexpected night rides or early
morning rides.
Toe Clip Light, resin pedal equipped with a toe clip.
Excellent foot support on the pedal for
more effective pedaling. It offers excellent
grip, even in wet weather.

Bell Bike instrument for signaling fellow

pedestrians and motorists with louder
ringing sound. Suitable for safety and
protection, its ringing sound makes one's
presence known by all of cyclists on busy
roads. Different colors are available.
 P a g e | 64

Table 38
Bicycle Accessories Continuation

Anti-Theft Cable lock and D-Lock bundle bike lock

for quick stops. An ultra-compact, ultra-
Device sturdy, high-security bike lock set. This
light, easy-to-carry lock lets you attach
your bike's frame to a fixed point and
secure the wheels or saddle.
Smart Phone Carry your smartphone on your bike
Bracket (mounts on the stem or handlebar). Total
protection against rain. To carry and to
protect your smartphone on your bike
under any circumstances, has water-
repellent pocket.
Saddle Cover Comfort for occasional cycling. Medium-
sized "MEMORY FOAM" saddle cover for
recreational cycling.
 P a g e | 65

Clothing

Table 39
Clothing

Image Name Description

Bike Shorts or Our passionate road cycling team has

Padded Cycling extensively tested these shorts to provide
Shorts you with the most comfortable shorts in
our range. These RC500 shorts are super
comfy thanks to the elasticated waistband
and anatomical high-density foam pad.
Very practical pocket on the outside of the
thigh that is easily accessible while riding.
Women’s cycling shorts is also available
on our store.
Bike Jersey or Cycling jerseys are an essential part of
Road Cycling your cycling attire. Arguably they are one
Jersey Racer of the most useful cycling clothing items,
so it is worth taking the time to
understand what makes a great cycling
jersey. There are several features and
factors that affect the quality and
functionality of cycling jerseys. The
composition of the fabric plays an
important role. High-quality fabrics will
have several different properties that
make them more comfortable to wear
while cycling.
Bike Socks High-quality technical socks that go up to
the base of the calf. Ideal for long warm
days on the bike. These top-of-the-line
socks are breathable, lightweight, and
ultra-thin. Left and right specific cut for
extra comfort.
Gloves Total protection from sharp elements on
the mountain trails while experiencing
comfort from within. Easy or hard trails,
our hands must be fully protected,
whether from the nasty skid falls or
harmful UV rays. Perfectly matched with
a long-sleeved jersey (model 8504904) for
total skin protection.
 P a g e | 66

Table 39
Clothing

Helmet Ride in style while your head's protected

from rocky mountains and trails. Absolute
full head protection in trails, the helmet
provides greater coverage, maximizing its
InMold technology resulting in a more
secure fit and increased protection.
Shoes Competitive cycling shoes that's light
weight and ventilated rigid sole with
fiberglass. Unbeatable value-for-money.
This pair offer an excellent level of
performance with its new outsole sole and
new liner for even greater comfort and
performance (great for race and sprint
rides)

4Ps of Marketing: Price Discussion

A 50% markup were placed on the bicycles, 35% markup for bicycle parts,

accessories, and clothing. This decision was made in order for the business to catch

up to its expenses, also many bikes require an hour or more of labor to assemble, and

this is before you consider the costs of space, utilities, tools and so on. The 5% on the

markups will be used to cover the transportation fee of the items from our suppliers,

and the remaining percentages will be used for the expenses. During sales period or

holidays a 10% discount will be placed on selected bicycle, bicycle spare parts,

clothing and accessories. For bulk orders, the discount will depend on the quantity of

the items that they will buy. A 5% discount will be placed on the total amount of 5-10

items, 10% discount will be applied for 11-20 items and 15% discount for orders that

has a quantity of 21 and above.

 P a g e | 67

Budget friendly bikes ranges from 4,000php-9,999php, new entry-level bikes’

price will be between 10,000php-24,999php, and the premium bikes will range from

25,000php-200,000php due to the high price of premium bikes some of it will be

offer as pre-order. Prices may depend on the brand of the bike and its quality. 50php-

10,000php will be the price bracket for bicycle parts, accessories and clothing

depending on the brand of this items.

For the Service Repair price will range from 143php-1,000php this will depend

on the work that the mechanic will do. Replacement of material and the labor of the

mechanic is included in that price range. Bike rent’s price will be between 50php-

700php this will cover the maintenance and other expenses of the bicycles that will be

available for rent.

Bicycles

Table 40
Bicycle Prices

Product Supplier Cost Mark up Consumer's Price

Mountain Bikes
Budget Friendly Bikes 4,000.00 2,000.00 6,000.00
New Entry-level Bikes 12,962.00 6,481.00 19,443.00
Premium Bikes 47,777.00 23,888.50 71,666.00
Road Bikes
Budget Friendly Bikes 4,814.00 2,407.00 7,221.00
New Entry-level Bikes 10,814.00 5,407.00 16,221.00
Premium Bikes 68,888.00 34,444.00 103,332.00
Hybrid Bikes
Budget Friendly Bikes 3,703.00 1,851.50 5,555.00
New Entry-level Bikes 8,518.00 4,259.00 12,777.00
Premium Bikes 25,925.00 12,962.50 38,888.00
 P a g e | 68

Table 40
Bicycle Prices Continuation

Women's or Cruiser Bikes

Budget Friendly Bikes 4,073.00 2,036.50 6,110.00
New Entry-level Bikes 9,999.00 4,999.50 14,999.00
Premium Bikes 19,629.00 9,814.50 29,444.00
Folding Bikes
Budget Friendly Bikes 6,999.00 3,499.50 10,499.00
New Entry-level Bikes 12,962.00 6,481.00 .19,443.00
Premium Bikes 19,999.00 9,999.50 29,999.00
BMX
Budget Friendly Bikes 5,184.00 2,592.00 7,776.00
New Entry-level Bikes 8,888.00 4,444.00 13,332.00
Premium Bikes 18,518.00 9,259.00 27,777.00
Electric Bikes
Budget Friendly Bikes 7,407.00 3,703.50 11,111.00
New Entry-level Bikes 15,980.00 7,990.00 23,970.00
Premium Bikes 44,444.00 22,222.00 66,666.00
Kiddie Bikes
12" for 2-4 yrs. Old 9900.00 495.00 1,485.00
16" for 4-8 yrs. Old 1,586.00 793.00 2,379.00
 P a g e | 69

Bicycle Parts

Table 41
Bicycle Parts Prices

CLASS C CLASS A
Bike Parts Supplier Mark Consumer's Supplier Mark Consumer's
Cost Up Price Cost Up Price
Pedal 333.00 116.55 450.00 518.50 181.475 700.00
Handlebars 348.00 121.8 470.00 703.80 246.33 950.00
Chain 481.00 168.35 649.00 852.00 298.20 1,150.00
Stem 170.00 59.5 230.00 852.00 298.20 1,150.00
Casset 444.50 155.575 600.00 1,889.00 661.15 2,550.00
Inner Tube 111.00 38.85 150.00 267.00 93.45 360.00
Tire 133.00 46.55 180.00 444.50 155.575 600.00
Seat Post 333.00 116.55 450.00 703.50 246.225 950.00
Fork 444.50 155.575 600.00 2,444.00 855.4 3,299.00
Hub 221.50 77.525 299.00 778.00 272.30 1,050.00
Rim 407.00 142.45 549.00 1,925.00 673.75 2,599.00

Bicycle Accessories

Table 42
Bicycle Accessories Prices

CLASS C CLASS A
Bike Supplier Mark Consumer's Supplier Mark Consumer's
Accessories Cost Up Price Cost Up Price
Bike light 555.00 194.25 749.00 1,222.00 427.70 1,650.00
Water Bottle
59.00 20.65 80.00 259.00 90.65 350.00
Clip
Hand or
118.00 41.30 159.00 1,074.00 375.90 1,450.00
Floor Pump
Carrier or
555.00 194.25 749.00 1,407.50 492.625 1,900.00
Bike Rack
Water Bottle 100.00 50.00 150.00 962.00 336.70 1,299.00
Fender 148.00 51.80 200.00 444.50 155.575 600.00
Reflector 74.00 25.90 100.00 481.50 168.525 650.00
Toe Clip 221.50 77.525 299.00 555.50 194.425 750.00
 P a g e | 70

Table 42
Bicycle Accessories Prices Continuation

Folding Bike 100.00 50.00 150.00 667.00 233.45 900.00

Protection
Case
Bell 85.00 29.75 115.00 400.00 140.00 550.00
Anti-theft 400.00 140.00 540.00 1,926.00 674.10 2,600.00
Device
Smartphone 348.00 121.80 470.00 852.00 298.20 1,150.00
Bracket
Saddle 100.00 35.00 135.00 400.00 140.00 550.00
Cover

Clothing

Table 43
Clothing Prices

CLASS C CLASS A
Clothing Supplier Mark Consumer's Supplier Mark Consumer's
Cost Up Price Cost Up Price
Bike Shorts 221.50 77.525 299.00 1,036.00 362.60 1,399.00
Bike Jersey 92.50 32.375 125.00 629.00 220.15 849.00
Bike Socks 70.00 24.50 95.00 444.50 155.575 600.00
Bike Gloves 100.00 35.00 135.00 400.00 140.00 550.00
Helmet 185.00 64.75 250.00 1,110.00 388.50 1,499.00
Bike Shoes 192.00 67.20 259.00 2,221.50 777.525 2,999.00
 P a g e | 71

Service Repair

Table 44
Service Repair Prices

Service Repair Mark Mechanic Consumer's

Materials
Up Fee Price
Major Tune up- with 500.00 175.00 250.00 925.00
replacement
Major Tune up- without 200.00 70.00 150.00 420.00
replacement
Minor tune up 50.00 18.00 75.00 143.00

Bike for Rent

Table 45
Bike for Rent Prices

Consumer's Price
Bike for 12 24
Cost Units Expense 3 days 1 week
Rent hours hours
Hybrid Bikes 3703.00 5 18,515.00 50.00 99.00 200.00 400.00
Mountain
4000.00 2 8,000.00 75.00 125.00 250.00 500.00
Bikes
Road Bike 4814.00 3 14,442.00 100.00 150.00 350.00 700.00
10 40,957.00

4Ps of Marketing: Place

Located right at the heart of the bustling city of Tarlac, the business location,

which is at City Walk Mall in Zamora St. Tarlac City, is ideal for Forth Cycle bike

shop and rental. It is near Tarlac State University Main Campus with a student

population in the thousands as well as various malls and fast-food restaurants, places

where a lot of people gather. The populace, especially students may also go to TSU

Lucinda Campus by traveling using bicycles, of which the business can provide via
 P a g e | 72

the bike rentals available. The Maria Cristina Park is also a prime spot for bicycle

lovers to cycle and sightsee.

Figure 15: Location Figure 16:Location Near TSU

Figure 17:Location near a park Figure 18:Location near food spots

 P a g e | 73

Distribution Channel

Manufacturer Wholesaler Retailer Customers

Figure 19: Distribution Channel

Forth Cycles’ distribution channel contains four parts: Manufacturer,

wholesaler, retailer, and customers. To supply the merchandise the business will sell

to the customers, Forth Cycle must purchase its inventory through its suppliers which

in this case are the wholesalers. After procuring the items, it will be transported to the

shop to be organized and assembled so it can be displayed and show to potential

customers.

4Ps of Marketing: Promotion

Forth Cycle’s promotion strategy has its foundation on the ever-popular social

media. Traditional ways of marketing will still be used and applied, however, with

the current fixation of our target market (millennials and Gen Z) and the general

population on social media, it is only logical to take advantage of such an

opportunity. Accounts will be made on Facebook, Instagram, TikTok, and YouTube

so there’s more chance that the algorithms of the following sites can garner more

attention for the benefit of the business. Here are samples of what it will look like:
 P a g e | 74

Figure 20:Facebook Promotion Figure 21:Instagram Promotion

Figure 22:TikTok Promotion Figure 23:YouTube Promotion

Setting up a social media account may require boosts so a monetary assistance

amounting to Php 4,000.00-5,000.00 annually allocated for boosting and flyers and

tarpaulins can provide more visibility for Forth Cycle.

 P a g e | 75

SWOC Analysis

The following SWOC analysis captures key strengths and weaknesses within

the company and describes the opportunities and threats facing the business.

Strengths

• Good image

• Strategic Location (FORTH CYCLE will be in the city of Tarlac, near schools

and business establishments where many potential customers walk by.)

• Provides honesty, real expertise and passion for bikes and bike services

• Allows test rides for customers to select the best and perfect bike for them

• Most trusted shop in advocating green lifestyle by promoting sustainable

mobility

• Quality and guaranteed products related to cycling including accessories and

apparels available apart from cycles

• Offering alternative option for people with insufficient resources who wants

to use a bike by renting one in our shop

• Uniquely positioned to provide support for green activities (by encouraging

active transportation and fostering community relationships)

• Benefits for communities both locally and internationally.

Weaknesses

• No online easy ordering system available

• Not suitable for handicapped and older generations

• Not a new concept in the market

 P a g e | 76

• Competitors can offer similar products quickly

• Giving the lowest price

• Limited choice of products

• Bad timing of entry - recovering economy

• Too dependent on suppliers

Opportunities

• With the continuous rise in fuel price, no car days being a norm in many parts

of our country, there is a boom in the cycle industry

• There is a growing demand for ethically and environmentally friendly

activities and products

• Society has been health conscious lately

• Good understanding of market

• Opening online store

• Attracting low-budget customers with rent to own buying option

Challenges

• Limited supplies

• Import of products at low prices

• New competitors

• Competitors have lower prices

• New technology substituting bike

• Extreme weather getting worse

 P a g e | 77

Analysis or Key Success Factors

• Having a good image of advocating for green activities will become an

effective promotional and marketing tool.

• Serving our customers excellently by providing honesty, real expertise, and

passion for bikes and bike services will make them to always remember us.

• Hiring employees with a strong background with the position and exceeding

the required job qualifications to offer exceptional customer service.

• Allowing test rides for customers to select the best and perfect bike for them

will give optimal customer satisfaction.

• Offering bike rental serves all low-budget customers who needs a bike.

• Focusing on being uniquely positioned by promoting sustainable mobility and

providing support for green activities attracts consumers who demands for

ethically and environmentally friendly activities and products.

• Biking as a healthy, fun and a form of exercise for all ages attracts health-

conscious people who travels a lot.

• Staying true and firm on being a shop that advocates for green activities give

customers a feel of a stronger sense of security that will earn us our

customer’s loyalty and also by building trust and improving customer

satisfaction by providing quality and guaranteed products can combat against

new competitors in the market.

• Having a unique market can help us beat existing competitors who offers

lower prices.
 P a g e | 78

Technical Aspect

This study discusses the selling and procurement process of the company’s

activities. The business provides renting option so renting process is presented

including the furniture and equipment as well as store supplies and other necessities

of the business. Vicinity map, floor plan and design of the shop are also provided to

show the indoor arrangement.

Location

The proposed business will be located at City Walk Mall in Zamora St. Tarlac

City. The location is selected with the consideration as it is surrounded by four

schools, and it is considered as a commercial area with a lot of businesses and

dormitories that houses students.

Figure 24:Zamora St. Tarlac City

 P a g e | 79

Figure 25:Parking Area – Front View

Figure 26:Parking Area – Side View 1

 P a g e | 80

Position of Shop Space

The shop space will be positioned beside the pet shop and shawarma shop in

City Walk Tarlac City near the side entrance.

Figure 27:Location of Shop Space

Floor Plan

The shop will be arranged with the concept below. Table, chairs, and cabinets

will be placed on the back part and the allocated space from the figure will be for the

bike units and accessories. The floor plan is carefully arranged with the researcher’s

viewpoint to attract customers and to display the units to be sold and rent. The

signage will be at the front of the shop to be recognize by the customers.

 P a g e | 81

Figure 28:1D Floor Plan

Figure 29:3D Floor Plan 1

 P a g e | 82

Figure 30:3D Floor Plan 2

Figure 31:3D Floor Plan 3

Figure 32:3D Floor Plan 4

 P a g e | 83

Merchandising: Procurement and Selling Process

Procurement Process

Determine the
product type and
quantity

Determine the
source of supply

Communicate and
conduct an evaluation
of supplier/s

Negotiate with the

supplier

Building business
relations

Examine the
business
performance

Figure 33: Procurement Process

Determining the product type and quantity is the first step for the procurement

process, this is to identify the unit of the bike and bike parts that will be needed by the

store. For merchandising business, just like this bike shop, a supplier is a vital part of

the business to operate smoothly. After looking for potential supplier/s,

communication and re-evaluation should be done to select the best supplier with its

price and quality. Next on the step is to negotiate and settle the final pricing for a unit.

Create an outstanding relationship with the supplier and other business in the industry

to build connection. The last step of the procurement process is to examine the
 P a g e | 84

business performance, to determine whether the business have the capacity to meet

the contract.

Selling Process

For customers,
Introduce the
identify what specific
appropriate product Provide the
type of product
unit that meets the presentation of sales
customer's are looking
customer's standard
for

Recognize customer's
Finalize the sales Follow up
objections

Assess the sales

You cannot sell something if you are not aware of what the customers are

looking for on your stores. It is a note for store owners to know the customer’s

specific demand so that stores can introduce something that is in line with it. Forth

Cycle puts the step of identifying what the customers are looking for as the initial step

on the process. After finding out what exactly they wanted to purchase, second step is

to introduce the appropriate product unit that meets the customer’s standard because

for some reasons, there are a lot of options to choose from that will better suit a

customer’s demand. Provide the customers the presentation of the sales by means of
 P a g e | 85

presenting the product’s features and its benefits. Explaining what the difference of

the business’s products to the other businesses is. Recognizing the customer’s

objections and negotiating with them about their queries, respecting and

acknowledging their opinions to come up with the best solution. Finalizing the sales

will be the next step. When the customer is showing signs of satisfaction and is ready

to purchase, closing the transaction is the next best thing to do. If ever the sales

weren’t closed, following up on what could be the problem and still maintain the

relationship. Assess the sales, gathering information regarding the business’s

performance with its sales is the last step as we look for issues in the performance of

the products such as least or ineffective tactics that have been used by the business.

Re-evaluate and change the sales plan according to the issues found.
 P a g e | 86

Renting Process

Create a facebook
page or website of Contact the person
Check the units if
the business for that makes
available on the shop
customer's use or reservation.
reservation.

Provide options (bike

type, time) and Receive reservation Require customer for
present rental fee through online or 1 valid ID for records
conditions and on shop transaction and tracking
pricing

On the date reserved,

payment for the time Customers should
Bikes can be yours
and type of bikes will return the unit after
for the mean time
take place on the the monitored time
shop

Ask additional
payment for excess
time

Figure 34: Renting Process

Forth Cycle wants to bring the customers the affordable and easy transportation

with consideration to the environment. While not every human being has the capacity

to earn big amount and afford a single unit of any mode of transportation as now

bicycles are not that cheap, this business can make the customers rent if buying is

hard for their own money. For that situation, the business provided the process of

renting.
 P a g e | 87

First step is to create a business websites and Facebook page for customers’ use

especially for reservations. This is to make sure that all customers will be given a fair

chance to reserve slots for a specific time. After that, the admin of the website or page

on social media will assess the availability of the unit and then for the next step will

be to contact and inform the customer who ask for reservation the units available for

rent and then provide options such as type and time of rent and present rental

conditions and pricing. If the customers finalized their decision and have been settled,

the fee for reservation will be asked to send via online or on shop transaction. For

clarification, reservation fee is not the rent payment so if the reserved date has come,

before releasing the bike unit for rent, the payment will be asked first. Before using

the bike at the renting date, the shop will require a valid ID to record the transaction

and the starting-ending time of rent. We wanted to secure our units for rent, so the

partners had an idea for the identification cards including the address and contact

number. After that, bike will be yours for the mean time until the monitored time

ended. Next is the unit to be returned on the shop and if there is a request for an

excess time for using the bike, customers will be asked for an additional fee and

penalty for any mishandling and damages of the unit to ensure that the bikes returned

are in good condition.

Forth Cycle wants to offer well-maintained and safe to use bicycle units

available for rent. To be able to do so, the store presents a clear terms and conditions

for bike rental offers in the purpose of customer’s awareness. Penalties for

mishandling and damages are all presented to identify corresponding fees to be added

on the customer’s payment.

 P a g e | 88

Risk of Loss or Damage Clause

The Customer shall shoulder any risk of loss, theft, damage or destruction of

the Equipment on delivery of the Equipment to the Customer. Any risk incurred,

whether on the Equipment or the Customer himself while using the Equipment during

the Rental Period and any further term during which the Equipment is in the

possession, custody or control of the Customer until such time as the Equipment is

returned to Forth Cycle shall solely be on the Customer’s accountability.

Penalty fee

Theft and damage insurance is not mandatory. However, availment of the

insurance will insure a reduced full replacement cost by half those on our Price List in

the event of a theft or damage to the Equipment. In order to activate the insurance in

case of theft, a formal Police Report must be lodged, and a copy must be presented to

us. In case of damage, a photo must be submitted to us.

The following is the list of theft, loss and damage replacement values for our

rental items. Customers may pay a small additional theft and damage insurance fee at

the time of their booking to reduce the full replacement cost by half in case of theft or

damage to the Bicycle or Equipment.

 P a g e | 89

Table 46
Price list for Damaged Bicycles

Bike Parts Price List Damage

Damaged Insurance
Fee
Pedal 700.00 350.00
Handlebars 950.00 475.00
Chain 1,150.00 575.00
Stem 1,150.00 575.00
Casset 2,550.00 1,125.00
Inner Tube 360.00 180.00
Tire 600.00 300.00
Seat Post 950.00 475.00
Fork 3,299.00 1,650.00
Hub 1,050.00 525.00
Rim 2,599.00 1,300.00

Late Return Fee

If the rental period has not been extended in accordance with the agreed return

date and the Equipment is not returned to us, an additional day’s rental fee will be

charged for each day the Customer keeps the Equipment. All rented Equipment or

Bicycle must be returned directly to the shop (Forth Cycle) or wherever agreed.

Terms and Conditions

RENTER recognizes and agrees that FORTH CYCLE maintains no control

over the functioning of the Rental Bike by RENTER. As a result, FORTH CYCLE

disclaims all liability for any personal injury, property damage, third party liability, or

other loss, accident, delay, inconvenience, or irregularity that may result from:
 P a g e | 90

A) the renter's intentional, negligent, or reckless actions or omissions, or those

of the renter's agents.

B) any flaw in or malfunction of a vehicle, piece of equipment, or other tool

that the renter owns, uses, or otherwise controls; or

C) any improper or careless actions or omissions by any third party who is not

directly or indirectly under the control of forth cycle. Renter acknowledges

that they are in charge of their own welfare and that they will bear all risks

entailed by the activities they engage in.

The conditions of this agreement are binding on the RENTER, their

dependents, minors traveling with them, heirs, successors, assigns, and legal

representatives.

RENTER understands and accepts that FORTH CYCLE and its

representatives have the right to exclude anyone from the event for any reason. Under

the laws of the Philippines, it shall serve as the venue for any arbitration or court

proceedings relating to these topics. If any portion of this agreement is deemed to be

invalid or unenforceable, the remainder will still be enforceable.

Safety and Protection of Renters

Forth Cycle Rental requires all its customers to own and wear safety gears,

failure to do so allows the store to refuse them our service. With that in mind we also

provide helmets and bike gloves along with the bicycle rented. However, if the renter

would like to use their own equipment, then they may do so.
 P a g e | 91

A. List of Furniture and Supplies with Corresponding Costs and Quantity

Property, Plant and Equipment

Table 47
Property, Plant and Equipment-Furniture & Protective Tools

Furniture and Current Price Quantity Total Cost Where to

Equipment Purchase
Table/Cabinet Glass 10,000.00 1 10,000.00 Shopee

Chairs 250.00 3 750.00 Shopee

Filing Cabinet 1,225.00 1 1,225.00 Lazada

Electric Fan/Ceiling 1500.00 2 3,000.00 Lazada

fan

Total 14,975.00
 P a g e | 92

Continuation of Table 47 Property, Plant and Equipment-Furniture &

Protective Tools

Safety Protective Current Price Quantity Total Cost Where to

Tools and Purchase
Equipment
Tool Repair Kit 360.00 1 360.00 Shopee

Vulcanizing Set 100.00 1 100.00 Shopee

Gloves 105.00 12 Pairs 105.00 Shopee

First Aid Kit Set 130.00 1 130.00 Shopee

TOTAL 695.00
 P a g e | 93

Store Supplies

Table 46
Property, Plant and Equipment-Store Supplies

Current Quantity Total Where to

Supplies Cost Cost purchase
(PHP) (PHP)
Cash Voucher 79.00 1 79.00 Pandayan
Book Shop

Petty Cash Voucher 40.00 1 40.00 Pandayan

Book Shop

Logbook 59.00 1 59.00 Shopee

Organizer 170.00 2 340.00 Pandayan

Book Shop

Cash Box 475.00 1 475.00 Shopee

Stapler 150.00 1 150.00 Shopee

 P a g e | 94

Table 48
Property, Plant and Equipment-Store Supplies
Staple Wire 30.00 5 150.00 Shopee

Tape 20.00 10 200.00 Shopee

Scissors 55.00 2 110.00 Lazada

Ballpen 5.00 5 25.00 Shopee

Pencil 7.00 5 35.00 Lazada

Sharpener 5.00 2 10.00 Lazada

Eraser 10.00 2 20.00 Lazada

TOTAL 1,693.00
 P a g e | 95

Other Supplies

Table 47
Property, Plant and Equipment-Other Supplies

Current
Total Cost Where to
Supplies Cost Quantity
(PHP) Purchase
(PHP)
Fire Extinguisher 776.00 1 776.00 Shopee

Warning Labels 40.00 2 80.00 Shopee

Broom 150.00 1 150.00 Shopee

Dustpan 50.00 1 50.00 Lazada

Trash Can 20.00 2 40.00 Shopee

Paper Bag 800.00 1 pack 800.00 Shopee

Logo Stickers 600.00 1 pack 600.00 Shopee

TOTAL 2,496.00
 P a g e | 96

Initial Investment Utilization

Based on the calculated expenses that will be needed as a start-up business on

the industry, it is necessary to make, if possible, an excess on budget to be utilized for

emergency. The investment amount is Php 1,225,000.00 contributed by seven

partners to acquire fundamental needs on the business. First thing that has been

considered is the shop location wherein it is amounted Php 50,000.00 per month, one-

month deposit and two months’ advance so the group has computed the first three-

month operation expenses. Suppliers are needed to contact and communicate to settle

pricing and transportation expenses. All expense until the arrival of the bike units for

purchase and rent, bike parts, accessories, clothing, and repair materials is included

on the budget of Php 719,724.40. The allotted amount for acquiring bike units for

purchase and for rent is Php 474,165.00 and Php 40,957.00 respectively. Bike parts

have an estimated amount of Php 66,774.90, accessories are Php 57,945.00 and

clothing Php 32,632.50. Even if the products are well-maintained and have proper

handling; the case of some repair needs is essential to be recognized and an amount of

Php 47,250.00 is for repair materials. The amount isn’t fixed for the inventory and

can be lesser or greater depend to situations. In addition, the cost for furniture and

equipment are needed to be calculated and budgeted. Cost of furniture and equipment

is Php 19,859.00. For employees’ salary, the group allotted Php 52,350.00 and lastly

the cash left is expected to be Php 260,413.10 from the investment amount.
 P a g e | 97

Investment Amount = PHP 1,225,000

Table 48
Total Project Cost

Forth Cycle
TOTAL PROJECT COST

Fixed Investment
Furniture and Fixtures 14,975.00
Protective Tools and Equipments 695.00
TOTAL FIXED INVESTMENT 15,670.00

Initial Working Capital

Within the First Three Months of Business
Direct Merchandise Purchases 719,724.40
Salaries Expense 52,350.00
Employees Benefits 5,586.00
Utilities Expense 3,517.50
Within the Whole Year of Business
Marketing Expense 4,750.00
Store Supplies 4,189.00
Repairs and Maintenance Expense 3,000.00
TOTAL INITIAL WORKING CAPITAL 793,116.90

Pre-Operating Expense
Permits and License Expense 5,800.00
Prepaid Rent 150,000.00
TOTAL PRE-OPERATING EXPENSE 155,800.00

Total 964,586.90
Add: Contingency Fund 260,413.10
TOTAL PROJECT COST 1,225,000.00

Note that the presented amount on the table were overestimated so it is expected

to have excess amounts when the operation has started so it can be used to the next

operating month.
 P a g e | 98

Socio-economic Aspect

Contribution to the Community

The environment really suffers from a lot of air pollution coming from various

transportation vehicles such as cars, bus, jeeps, tricycle etc. So, with that in mind, the

researchers come up with a solution that is not only environmentally friendly but also

a means for exercise for users.

This feasibility study aims to at least slow down the rapid climate change that

has been going on for decades. The wide range of bicycle being a means of

transportation over vehicles that use gas will minimize the country's burden from the

imports of oils and gases. Not only it will reduce air pollution but also decrease the

noise coming from the automobiles on the road. It will bring the country a peaceful

and safe place for people especially for children and teenagers that are still under with

the supervision of their parents.

Heavier vehicles tend to do more damage to roads resulting to costly road

maintenance which adds to the government expenditures. With a bicycle, a lighter

vehicle can do little to no damage to roads. A bumpy road cause by the damages from

the heavy vehicles will likely cause accidents especially at night. This project

“feasibility study title” will bring back the yesterday’s environment that embodies the

smell and beauty of nature rather than the smell of air coming from automobiles

exhaust pipe. With that project to be introduced to the market will make the country

have the possibility to create a healthier place to live in.

 P a g e | 99

Corporate Social Responsibility

Provided below are the Corporate Social Responsibility of Forth Cycle to

become a sustainable business towards our employees, society, and environment.

Sustainable Business for Employees

Forth Cycle wanted to give its employees a good working environment through

the partner’s approach to keep the employees comfortable and recognized whenever

any circumstance. To simply show the gratitude to the employees, discounts and

affordable offers for purchase and renting will be given to them free of charge as a

token of appreciation for their efforts and provide rewards whenever they reach

quotas of sold items and units.

Sustainable Business for Society

The business offers a free two-hour bike lesson to individuals who would like to

learn how to ride a bike and would possibly buy a bike. The lessons will be

supervised by the selected employee that is skilled, trained, and qualified to be a

mentor. The lessons include a simple discussion for safety ride giving information

about gears to be prepared. Simple fixing of bike chains and maintenance of the bike

will be also a part of the lessons. This offer is given to the people who are interested

and for those who aren’t familiar with it especially riding it.

Sustainable Business for Environment

The business would also like to build a club for bikers that will be led by the

partners and the aim of this club is to help the community through clean-up drives on

roads and rivers, riding to spread awareness to climate change promoting the use of

this alternative transportation.

 P a g e | 100

Financial Aspect

Financial Assumptions

All the assumptions in this study were based on the analysis of various computations

and critical thinking of the proponents in conjunction with diligent data gathering.

These assumptions are as follows:

1. This feasibility study is projected for 5 years and set to start on January 1,

2023, with the preparation of its financial statements every calendar year

ending December 31.

2. The working capital is set for 3 months which can be seen from the

investment amount.

3. Payment for the lease increases by 3% annually.

4. All sales and expenses are paid through a cash and cash equivalents.

5. The inventory is increased by 3% annually.

6. The marketing expense is set at Php 4,000.00 – Php 5,000.00 annually for

flyers, tarpaulins, and promos for the first 5 years.

7. Maintenance and repair expenses is set around Php3,000.00-4,500.00

8. Members of the partnership will all work as a manager.

9. Partner’s withdrawal is limited to up to 50% of net profit.

10. The initial investment is expected to be earned back within 5 years according

to the income statement.

11. The utilities expense only accounts for the electricity and internet bill.
 P a g e | 101

12. The bicycles for rental are depreciated over their useful life using the straight-

line method.

13. The maintenance and repair expense are intended for minor damages to the

store.

14. The monthly salaries are based on DOLE for the regular employee while

those who aren’t are by commission or difficulty of their task.

15. The regular employee has benefits and deductions from SSS and PhilHealth

based on official guidelines.

16. As a small business which earns more than 3 million on gross sales, there is a

12% VAT tax applicable.

17. Most of the prices are overestimated, especially the expenses, which assures

that the business can pay for its liabilities and continue its operation. This also

implies that there is an excess income to be earned when actual prices are

used.

18. Based on articles about various bike shops in the Philippines, we made 3 types

of status a month may fall onto: a bad month, an average month, and a good

month.

19. Basically, a bad month doesn’t have a lot of sales and can barely even

breakeven or may even have a loss. We applied this in May and June when

there is no classes and students, which is one of our primary markets is gone.

20. An average month is when the sales are doing relatively well and was able to

pay all the expenses and generate some profit. This is the rest of the year

except May, June, November, and December.

 P a g e | 102

21. A good month is when the sales are higher than average and even double what

the business usually earns. These are the holiday season where consumers

spend a lot of their money on goods they can give as a present or something

they want for themselves. November and December are designated as the

good months since Christmas happens around this time.

Forecasted Financial Statement: Statement of Financial Position

Table 51
Statement of Financial Position
 P a g e | 104

Forecasted Financial Statement: Comprehensive Income

Table 52
Statement of Comprehensive Income

FORTH CYCLE
Statement of Comprehensive Income
For the Years Ended December 31, 2023 - 2027
Notes 2023 2024 2025 2026 2027
Sales 1 3,488,502.12 3,593,157.18 3,700,951.89 3,811,980.45 3,926,339.87
Less: Cost of Goods Sold 2 2,406,981.42 2,442,329.56 2,313,075.07 2,382,467.32 2,453,941.34
Gross Income 1,081,520.70 1,150,827.62 1,387,876.83 1,429,513.13 1,472,398.53

Less:
Compensation Expense 3 229,909.92 234,145.00 239,389.00 247,742.50 261,360.00
Utilities Expense 4 13,800.00 14,070.00 14,348.10 14,634.54 14,929.58
Rent Expense 5 600,000.00 618,000.00 636,540.00 655,636.20 675,305.29
Depreciation - Furniture and Fixture 6 1,497.50 1,497.50 1,497.50 1,497.50 1,497.50
Store Supplies Expense 7 4,189.00 3,474.19 2,729.70 2,811.59 2,895.93
Permits and Licenses Expense 8 5,800.00 3,300.00 3,300.00 3,300.00 3,300.00
Marketing Expense 9 4,750.00 4,500.00 4,500.00 4,500.00 4,500.00
Repairs and Maintenance Expense 10 3,000.00 3,150.00 3,307.50 3,472.88 3,646.52
Total Expenses 862,946.42 882,136.69 905,611.80 933,595.20 967,434.82

Net Income Before Tax 218,574.28 268,690.93 482,265.03 495,917.93 504,963.71

Less: Income Tax (20%) 43,714.86 53,738.19 96,453.01 99,183.59 100,992.74
Net Income After Tax 174,859.42 214,952.74 385,812.02 396,734.34 403,970.97
 P a g e | 105

Forecasted Financial Statement: Changes in Partners’ Equity

Table 53
Statement of Changes in Partners’ Equity

FORTH CYCLE
Statement of Changes in Partner's Equity
For the Years Ended December 31, 2023 - 2027

2023 2024 2025 2026 2027

Forth Cycle Capital, Beginning 1,225,000.00 1,332,206.76 1,498,337.66 1,769,909.25 2,059,678.31
Add: Additional Investment 56,319.00 78,104.83 62,450.45 79,771.31
Net Income 174,859.42 214,952.74 385,812.02 396,734.34 403,970.97
Total 1,399,859.42 1,603,478.50 1,962,254.52 2,229,094.04 2,543,420.58
Less: Drawings
Acero, Capital 9,664.68 15,020.12 27,477.89 24,202.25 28,759.47
Ang, Capital 9,664.68 15,020.12 27,477.89 24,202.25 28,759.47
Aquino, Capital 9,664.66 15,020.14 27,477.89 24,202.25 28,759.47
Borja, Capital 9,664.66 15,020.12 27,477.90 24,202.25 28,759.47
Laxamana, Capital 9,664.66 15,020.12 27,477.90 24,202.25 28,759.47
Tandoc, Capital 9,664.66 15,020.12 27,477.90 24,202.25 28,759.48
Torrefranca, Capital 9,664.66 15,020.12 27,477.89 24,202.25 28,759.48
Total Drawings 67,652.66 105,140.84 192,345.27 169,415.73 201,316.30
Forth Cycle Capital, End 1,332,206.76 1,498,337.66 1,769,909.25 2,059,678.31 2,342,104.28
 P a g e | 106

Forecasted Financial Statement: Cash Flow

Table54
Statement of Cash Flow
 P a g e | 107

Notes

Table 55
Notes 1 - Sales

Note 1 - Sales 2023 2024 2025 2026 2027

JANUARY 342,942.73 353,231.01 363,827.94 374,742.78 385,985.06
FEBRUARY 342,942.73 353,231.01 363,827.94 374,742.78 385,985.06
MARCH 342,942.73 353,231.01 363,827.94 374,742.78 385,985.06
APRIL 160,529.58 165,345.46 170,305.83 175,415.00 180,677.45
MAY 160,529.58 165,345.46 170,305.83 175,415.00 180,677.45
JUNE 160,529.58 165,345.46 170,305.83 175,415.00 180,677.45
JULY 160,529.58 165,345.46 170,305.83 175,415.00 180,677.45
AUGUST 160,529.58 165,345.46 170,305.83 175,415.00 180,677.45
SEPTEMBER 342,942.73 353,231.01 363,827.94 374,742.78 385,985.06
OCTOBER 342,942.73 353,231.01 363,827.94 374,742.78 385,985.06
NOVEMBER 723,422.73 745,125.41 767,479.17 790,503.54 814,218.65
DECEMBER 723,422.73 745,125.41 767,479.17 790,503.54 814,218.65
VATable Sales 3,964,206.95 4,083,133.16 4,205,627.15 4,331,795.97 4,461,749.85
Less: 12% Output Tax 475,704.83 489,975.98 504,675.26 519,815.52 535,409.98
Sales 3,488,502.12 3,593,157.18 3,700,951.89 3,811,980.45 3,926,339.87
 P a g e | 108

Table 56
Notes 2- Cost of Goods Sold

Notes 2 - Cost of Goods Sold 2023 2024 2025 2026 2027

Merchandise Inventory, January 1 - 267,442.38 271,369.95 257,008.34 264,718.59

Purchases 2,674,423.80 2,446,257.13 2,298,713.46 2,390,177.57 2,461,882.90

Total Goods Available for Sale 2,674,423.80 2,713,699.51 2,570,083.41 2,647,185.91 2,726,601.49
Less: Merchandise Inventory, December
31 267,442.38 271,369.95 257,008.34 264,718.59 272,660.15

Cost of Goods Sold 2,406,981.42 2,442,329.56 2,313,075.07 2,382,467.32 2,453,941.34

VATable Purchases 2,674,423.80 2,713,699.51 2,570,083.41 2,647,185.91 2,726,601.49

Less: 12% Input Tax (Inclusive) 320,930.86 325,643.94 308,410.01 317,662.31 327,192.18

Direct Merchandise Purchases 2,353,492.94 2,388,055.57 2,261,673.40 2,329,523.60 2,399,409.31

 P a g e | 109

Table 57
Notes 3 – Compensation Expense

Notes 3 - Compensation Expense 2023 2024 2025 2026 2027

Salaries Expense 199,475.00 204,000.00 208,800.00 216,000.00 228,000.00
13th Month Pay 16,622.92 16,285.00 16,681.00 17,252.50 18,240.00
SSS Expense- ER Share 11,220.00 11,220.00 11,220.00 11,730.00 12,240.00
Philhealth Premium Expense- ER Share 2,592.00 2,640.00 2,688.00 2,760.00 2,880.00
Compensation Expense 229,909.92 234,145.00 239,389.00 247,742.50 261,360.00

Table 58
Notes 4 – Utilities Expense

Notes 4 - Utilities Expense 2023 2024 2025 2026 2027

Monthly Electricity 750.00 772.50 795.68 819.55 844.13
Monthly Internet 400.00 400.00 400.00 400.00 400.00
Total Monthly Utilities 1,150.00 1,172.50 1,195.68 1,219.55 1,244.13
Multiply: Number of Months in a Year 12 12 12 12 12
Utilities Expense 13,800.00 14,070.00 14,348.10 14,634.54 14,929.58
 P a g e | 110

Table 59
Notes 5 – Rent Expense

Notes 5 - Rent Expense 2023 2024 2025 2026 2027

Monthly Rent 50,000.00 51,500.00 53,045.00 54,636.35 56,275.44
Multiply: Number of Months in a Year 12 12 12 12 12
Rent Expense 600,000.00 618,000.00 636,540.00 655,636.20 675,305.29

Table 60
Note 6 – Depreciation Expense – Furniture and Fixture

Notes 6 - Depreciation - Furniture and

2023 2024 2025 2026 2027
Fixtures
Table/Cabinet Glass 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Chairs 750.00 750.00 750.00 750.00 750.00
Filing Cabinet 1,225.00 1,225.00 1,225.00 1,225.00 1,225.00
Electric Fan/Ceiling Fan 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Total Price 14,975.00 14,975.00 14,975.00 14,975.00 14,975.00
- - - - -
Less: Salvage Value
7,487.50 7,487.50 7,487.50 7,487.50 7,487.50
Depreciable Amount 7,487.50 7,487.50 7,487.50 7,487.50 7,487.50
 P a g e | 111

Table 61
Note 7 – Store Supplies Expense

Notes 7 - Store Supplies Expense 2023 2024 2025 2026 2027

Cash Voucher 79.00 81.37 83.81 86.33 88.92
Petty Cash Voucher 40.00 41.20 42.44 43.71 45.02
Logbook 59.00 60.77 62.59 64.47 66.41
Organizer 340.00 350.20 360.71 371.53 382.67
Cash Box 475.00 489.25 503.93 519.05 534.62
Stapler 150.00 154.50 159.14 163.91 168.83
Staple Wire 150.00 154.50 159.14 163.91 168.83
Tape 200.00 206.00 212.18 218.55 225.10
Scissors 110.00 113.30 116.70 120.20 123.81
Ballpen 25.00 25.75 26.52 27.32 28.14
Pencil 35.00 36.05 37.13 38.25 39.39
Sharpener 10.00 10.30 10.61 10.93 11.26
Eraser 20.00 20.60 21.22 21.85 22.51
Fire Extinguisher 776.00 - - - -
Warning Labels 80.00 82.40 84.87 87.42 90.04
Broom 150.00 154.50 159.14 163.91 168.83
Dustpan 50.00 51.50 53.05 54.64 56.28
Trash Can 40.00 - - - -
Paper Bag 800.00 824.00 - - -
Logo Stickers 600.00 618.00 636.54 655.64 675.31
Store Supplies Expense 4,189.00 3,474.19 2,729.70 2,811.59 2,895.93
 P a g e | 112

Table 62
Note 8 – Permits and Licenses Expense

Notes 8 - Permits and Licenses Expense 2023 2024 2025 2026 2027
SEC Registration 500.00
BIR 500.00 500.00 500.00 500.00 500.00
DTI 2,000.00
LGU 500.00 500.00 500.00 500.00 500.00
CTC 100.00 100.00 100.00 100.00 100.00
BMBE Registration 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
TIN RegistratiOn 500.00 500.00 500.00 500.00 500.00
Mayor's Permit 500.00 500.00 500.00 500.00 500.00
Brgy. Business Permit 200.00 200.00 200.00 200.00 200.00
Permits and Licenses Expense 5,800.00 3,300.00 3,300.00 3,300.00 3,300.00
 P a g e | 113

Table 63
Note 9 – Marketing Expense

Notes 9 - Marketing Expense 2023 2024 2025 2026 2027

Flyers and Tarpaulins 750.00 500.00 500.00 500.00 500.00

Social Media Boosting 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Promos (Free Products) 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Marketing Expense 4,750.00 4,500.00 4,500.00 4,500.00 4,500.00

Table 64
Notes 10 – Repair and Maintenance Expense

Notes 10 - Repair and Maintenance

Expense 2023 2024 2025 2026 2027

Monthly Cost 250.00 262.50 275.63 289.41 303.88

Multiply: Number of Months in a Year 12.00 12.00 12.00 12.00 12.00

Repair and Maintenance Expense 3,000.00 3,150.00 3,307.50 3,472.88 3,646.52

 P a g e | 114

Table 65
Notes 11 – Cash

Notes 11 - Cash 2023 2024 2025 2026 2027

Cash in Bank 1,252,985.97 1,473,497.45 1,767,522.13 2,059,035.88 2,347,880.00

Petty Cash 38,752.14 45,572.09 54,665.63 63,681.52 72,614.85

Cash 1,291,738.12 1,519,069.54 1,822,187.76 2,122,717.41 2,420,494.85

Table 66
Notes 12 – Prepaid Rent

Notes 12 - Prepaid Rent 2023 2024 2025 2026 2027

- - - -
1-Month Advance 50,000.00
- - - -
Prepaid Rent 50,000.00
 P a g e | 115

Table 67
Notes 13 – Furniture and Fixture (Net)

Notes 13 - Furniture and Fixtures (Net) 2023 2024 2025 2026 2027

Table/Cabinet Glass 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Chairs 750.00 750.00 750.00 750.00 750.00

Filing Cabinet 1,225.00 1,225.00 1,225.00 1,225.00 1,225.00

Electric Fan/Ceiling Fan 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00

Total Price 14,975.00 14,975.00 14,975.00 14,975.00 14,975.00

Less: Accumulated Depreciation 1,497.50 2,995.00 4,492.50 5,990.00 7,487.50

Less: Current Year's Depreciation 1,497.50 1,497.50 1,497.50 1,497.50 1,497.50

Furniture and Fixtures (Net) 11,980.00 10,482.50 8,985.00 7,487.50 5,990.00

 P a g e | 116

Table 68
Notes14 – Protective tools and equipment (net)

Notes 14 - Protective Tools and Equipment

(Net) 2023 2024 2025 2026 2027

Bike Repair Kit 360.00 360.00 360.00 360.00 360.00

Vulcanizing Set 100.00 100.00 100.00 100.00 100.00

First Aid Kit 130.00 130.00 130.00 130.00 130.00

Protective Gloves 105.00 105.00 105.00 105.00 105.00

Total Price 695.00 695.00 695.00 695.00 695.00

Less: Accumulated Depreciation 69.50 139.00 208.50 278.00 347.50

Less: Current Year's Depreciation 69.50 69.50 69.50 69.50 69.50

Protective Tools and Equipment (Net) 556.00 486.50 417.00 347.50 278.00
 P a g e | 117

Table 69
Notes 15 – SSS Payable

Notes 15 - SSS Payable 2023 2024 2025 2026 2027

SSS Employee's Share 495.00 495.00 495.00 517.50 520.00

SSS Employer's Share 935.00 935.00 935.00 977.50 1,020.00

Total Cost 1,430.00 1,430.00 1,430.00 1,495.00 1,540.00

Multiply: Number of Months in a Year 12 12 12 12 12

SSS Payable 17,160.00 17,160.00 17,160.00 17,940.00 18,480.00

Table 70
Note16 – PhilHealth Premium Payable

Notes 16 - PhilHealth Premium Payable 2023 2024 2025 2026 2027

PhilHealth Employee's Share 216.00 220.00 224.00 230.00 240.00

PhilHealth Employee's Share 216.00 220.00 224.00 230.00 240.00

Total Cost 432.00 440.00 448.00 460.00 480.00

Multiply: Number of Months in a Year 12.00 12.00 12.00 12.00 12.00

PhilHealth Premium Payable 5,184.00 5,280.00 5,376.00 5,520.00 5,760.00

 P a g e | 118

Table 71

Note17 – Income Tax Payable

Notes 17 - Income Tax Payable 2023 2024 2025 2026 2027

Income Tax of the Current Year 43,714.86 53,738.19 96,453.01 99,183.59 100,992.74

Income Tax of the Previous Year - 3,642.90 11,763.99 19,801.74 28,067.04

- - - - -
Less: Portion Paid (11 of 12 Months) 40,071.95 45,617.10 88,415.26 90,918.29 92,576.68

Income Tax Payable 3,642.90 11,763.99 19,801.74 28,067.04 36,483.10

 P a g e | 119

Table 72
Note 18 – VAT Payable

Notes 18 - VAT Payable 2023 2024 2025 2026 2027

Output Tax from Sales 475,704.83 489,975.98 504,675.26 519,815.52 535,409.98

- - - - -
Less: Input tax from Purchases 320,930.86 325,643.94 308,410.01 317,662.31 327,192.18

Tax Due for the Year 154,773.98 164,332.04 196,265.25 202,153.21 208,217.80

Tax Due for the Year 154,773.98 164,332.04 196,265.25 202,153.21 208,217.80
-
Add: Payable from Previous Period 12,897.83 13,694.34 16,355.44 16,846.10
- - - - -
Less: Portion Paid (11 of 12 Months) 141,876.15 163,535.53 193,604.15 201,662.54 207,712.42

VAT Payable 12,897.83 13,694.34 16,355.44 16,846.10 17,351.48

 P a g e | 120

Financial Analysis

Below are the Financial Analysis of Forth Cycle. This shows Forth Cycle financial performance derived from its

financial statements. This Financial Analysis includes the Liquidity Ratio, Profitability Ratio, Solvency Ratio, and

Turnover Ratio of Forth Cycle.

Income Statement Analysis

Most analysts start their financial statement analysis with the income statement. Intuitively, this is usually the first

thing we think about with a business we often ask questions such as, “How much revenue does it have?” “Is it profitable?”

and “What are the margins like?” To answer these questions, and much more, we will dive into the income statement to get

started. There are two main types of analysis we will perform: vertical analysis and horizontal analysis.

In terms of revenue, Forth Cycle projected a profitable ratio based on its vertical analysis and shows a competitive result on

its horizontal analysis.

 P a g e | 121

Vertical Analysis

The table below shows the Vertical Analysis of the Income statement of the Forth Cycle for the 5th year assumption.
Table 73
Vertical Analysis

VERTICAL ANALYSIS
Year 5
Gross Profit Ratio 36.35%
Operating Profit Ratio 12.90%
Net Profit Ratio 10.30%

Horizontal Analysis

The table below shows the Horizontal Analysis of the Income statement of the Forth Cycle for year1 to 5 assumptions.

This shows the difference in Income Statement from year 1 to year 5.

Table 74
Horizontal Analysis

HORIZONTAL ANALYSIS
Gross Profit 31.36% 32.02% 37.50% 37.50% 36.35%
Operating Profit Ratio 6.34% 7.48% 13.03% 13.01% 12.90%
Net Profit Ratio 5.07% 5.98% 10.42% 10.41% 10.30%
 P a g e | 122

Table 75
Horizontal Analysis with Changes

HORIZONTAL ANALYSIS WITH CHANGES

Year 1 & 5 Changes

Gross Profit 1081520.70 1150827.62 1387876.83 1429513.13 1472398.53 14.74%

Operating Profit Ratio 218574.28 268690.93 482265.03 495917.93 504963.71 68.19%

Net Profit Ratio 174859.42 214952.74 385812.02 396734.34 403970.97 15.82%

Balance Sheet and Leverage Ratios

This section of financial statement analysis, we will evaluate the operational efficiency of the business. We will take

several items from the income statement and compare them to accounts on the balance sheet. The balance sheet metrics can

be divided into several categories, including liquidity, leverage, and operational efficiency.
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1. Liquidity Ratio

Table 76
Liquidity Ratio
LIQUIDITY RATIOS
2023 2024 2025 2026 2027
Current Ratio
Current Assets 1,609,180.50 1,790,439.49 2,079,196.10 2,387,436.00 2,693,155.00
Current Liabilities 239,509.74 253,070.83 268,688.85 285,592.69 307,318.72
Current Ratio 6.72% 7.07% 7.74% 8.36% 8.76%

Quick Ratio
Cash 1291738.12 1519069.54 1822187.76 2122717.41 2420494.85
Current Liabilities 239509.74 253070.83 268688.85 285592.69 307318.72
Quick Ratio 5.39% 6.00% 6.78% 7.43% 7.88%

Net Working Capital

Current Assets 1609180.50 1,790,439.49 2,079,196.10 2,387,436.00 2,693,155.00
Current Liabilities 239509.74 253,070.83 268,688.85 285,592.69 307,318.72
Net Working Capital 1369670.76 1,537,368.66 1,810,507.25 2,101,843.31 2,385,836.28
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2. Profitability Ratio

Table 77
Profitability Ratio

PROFITABILITY RATIOS
2023 2024 2025 2026 2027
Gross Profit Ratio
Gross Profit 1,081,520.70 1,150,827.62 1,387,876.83 1,429,513.13 1,427,398.53
Net Sales 3,448,502.12 3,593,157.18 3,700,951.89 3,811,980.45 3,926,339.87
Gross Profit Ratio 31.36% 32.02% 37.50% 37.50% 36.35%

Net Profit Ratio

Net Profit 174,859.42 214,952.74 385,812.02 396,734.34 403,970.97
Net Sales 3,448,502.12 3,593,157.18 3,700,951.89 3,811,980.45 3,926,339.87
Net Profit Ratio 5.07% 5.98% 10.42% 10.41% 10.3%

Operating Profit Ratio

EBIT 218,574.28 268,690.93 482,265.03 495,917.93 504,963.71
Net Sales 3,448,502.12 3,593,157.18 3,700,951.89 3,811,980.45 3,926,339.87
Operating Profit Ratio 6.34% 7.48% 13.03% 13.01% 12.9%
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3. Solvency Ratio

Table 78
Solvency Ratio

SOLVENCY RATIOS
2023 2024 2025 2026 2027
Debt to Equity Ratio
Total Liabilities 289,509.74 303,070.83 318,688.85 335,592.69 357,318.72
Partner's Equity 1,332,206.76 1,498,337.66 1,769,909.25 2,059,678.31 2,342,104.28
Debt to Equity Ratio 0.22% 0.2% 0.18% 0.16% 0.15%

4. Turn-Over Ratio

Table 79
Turn-Over Ratio

TURN-OVER RATIO
2023 2024 2025 2026 2027
Total Assets Turn-over
Net Sales 3,448,502.12 3,593,157.18 3,700,951.89 3,811,980.45 3,926,339.87
Total Assets 1,621,716.50 1,801,408.49 2,088,598.10 2,395,271.00 2,699,423.00
Total Assets Turnover 2.13% 1.99% 1.80% 1.60% 1.50%
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Using the above financial ratios, we can determine how efficiently a company is generating revenue and how quickly

it is selling inventory. Using the financial ratios derived from the balance sheet and comparing them historically versus

industry averages or competitors will help you assess the solvency and leverage of a business.

Cash Flow Statement Analysis

With the income statement and balance sheet under our belt, let us look at the cash flow statement and all the insights

it tells us about the business. The cash flow statement will help us understand the inflows and outflows of cash over the

time we are looking at. The cash flow statement consists of three components: Cash from operations, Cash used in

investing, and Cash from financing.

Table 80
Cash Flow Statement Analysis

Increase (Decrease) in
1,059,330.00 232,408.12 227,331.42 303,118.22 300,529.65 297,777.44
Cash
Add: Beginning
- 1,059,330.00 1,291,738.12 1,519,069.54 1,822,187.76 2,122,717.41
Balance
Ending Balance 1,059,330.00 1,291,738.12 1,519,069.54 1,822,187.76 2,122,717.41 2,420,494.85
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Each of these three sections tells us a unique and important part of the company’s sources and uses of cash over a

specific period. Many investors consider the cash flow statement the most important indicator of a company’s performance.

Today, investors quickly flip to this section to see if the company is making money or not and what its funding

requirements are. It is important to understand how different ratios can be used to accurately assess the operation of an

organization from a cash management standpoint.

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Conclusion

The spike in gasoline prices, increased health awareness especially following the pandemic, and various product

inflations felt by every Filipino are all factors that can contribute to the feasibility of Forth Cycle Bike Shop and Rental’s

success. Since biking can be an alternative way of transportation, there is a market for people who would rather rent or

buy a bicycle to save their money. It is a lucrative business idea suitable for the changes the Philippines is undergoing

right now.

Add to the fact that the projected comprehensive income has shown that there is profit to be gained annually shows

an upward trend, this progress, according to the comprehensive income, allows the business to earn back its initial

investment less than 5 years of its conception, an outstanding feat considering that it amounts to Php1,225,000.

The data and figures have shown that Forth Cycle has what it takes to be considered as a feasible business. In

conclusion, we recommend that this business venture will succeed following the plans and strategies laid in this study.
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Appendices
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Appendix A: Questionnaire

FORTH CYCLE QUESTIONNAIRE

[First Section]

Good day! We are the 4th year students at Tarlac State University under the College
of Business and Accountancy with the course of Bachelor of Science in Business
Administration major in Financial Management conducting a feasibility study entitled
“Forth Cycle”. The purpose of this study is to measure the demand for bicycles as an
alternative transportation in Tarlac City. Our study seeks to promote a greener and
healthier lifestyle by advocating to the residents, not only in Tarlac City but in the
whole province to opt for a more sustainable mobility.
Answering this survey will take approximately 5 minutes of your time. We ask for
your precious time to kindly answer the survey as possibly best as you can.

Email

DATA PRIVACY ACT

I hereby authorize FORTH CYCLE for its usage of my data for their feasibility study.
Data and information collected will solely be used for educational purposes.
☐ Agree
☐ Disagree

[Second Section]
PROFILE OF THE RESPONDENTS
Kindly click the button that best suite your answer.

Name (Optional)

Sex
☐ Female
☐ Male
Age
☐ 14 years old - below
☐ 15 to 20 years old
☐ 21 to 25 years old
☐ 26 to 30 years old
☐ 31 to 35 years old
☐ 36 to 40 years old
☐ 41 to 45 years old
☐ 46 to 50 years old
☐ 51 to 55 years old
☐ 56 to 60 years old
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☐ 60 years old – above

What group do you belong?
☐ Student
☐ Single Parent
☐ Mother / Father
☐ Elderly Worker
☐ Traveler
☐ Other
Do you live in Tarlac City?
☐ Yes
☐ No
If no, What Province / Municipality do you live?

[Third Section]
SURVEY QUESTIONS
Kindly click the button that best suite your answer.

1. What type of transportation do you usually use?

☐ Tricycle
☐ Jeep
☐ Bus
☐ Own Car / Motor
2. How much do you spend on your transportation?
☐ 15 php - below
☐ 16 to 35 php
☐ 36 to 55 php
☐ 56 to 75 php
☐ 76 to 95 php
☐ 100 php - above
3. If possible, would you want to try a bicycle as a means of transportation?
☐ Yes
☐ No
4. Do you currently own a bike?
☐ Yes
☐ No
5. If no, do you have plans on buying a bike in the future?
☐ Yes
☐ No
6. If yes, what type of bike would you prefer to buy?
(If not applicable, choose NA)
☐ Mountain Bike
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☐ Road Bike
☐ Hybrid Bike
☐ Women's Bike
☐ Cruiser Bike
☐ Folding Bike
☐ BMX Bike
☐ Electric Bike
☐ N/A
7. If given to have a personal bike, how would you want to acquire one?
☐ Buy a bike
☐ Rent a bike
☐ Not interested in having a bike
8. If you chose to buy a bike, how much would you like to spend in order to buy one?
(If not applicable, choose NA)
☐ less than 5,000
☐ 5,000 to 9,000 php
☐ 10,000 to 19,000 php
☐ 20,000 to 29,000 php
☐ 30,000 php - above
☐ N/A
9. If you chose to rent, how much are you willing to pay? minimum amount:
(If not applicable, choose NA)
☐ Less than 20 php
☐ 20 to 25 php
☐ 25 to 30 php
☐ N/A
☐ Other
10. If you chose to rent, how much are you willing to pay? maximum amount:
(If not applicable, put NA)

11. Have you tried buying a bike in the past?

☐ Yes
☐ No
12. If yes, where do you usually buy a bicycle/bicycle part? Name of Business
establishment only.
(If not applicable, tap NA)
☐ N/A
☐ Other
13. Do you know a shop here in Tarlac City that offers a great deal and superb quality
of bicycle and bicycle parts?
☐ Yes
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☐ No
13.1. If yes, where and what is the name of the shop?
(If not applicable, tap NA)
☐ N/A
☐ Other
14. Do you know a supplier that offers a great deal and superb quality of bicycle and
bicycle parts?
☐ Yes
☐ No
15. If yes, please specify the name and location of the supplier.
(If not applicable, tap NA)
☐ N/A
☐ Other
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Documentation
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Curriculum Vitae