MOTIVATION / PRE-TEST

in

ENTREP 7
Business Plan Preparation
1st Sem., AY 2022-2023

Presented and Submitted to

RICHARD E. BANDOJA, CPA, MBA
Course Instructor

By

MARY GRACE D. LUBRICO

BSE - 3B

September 11,2022
A. Differentiate feasibility study from business plan and discuss their importance.

 Feasibility study is a study that carried out with the aim of finding out the workability
and profitability of a business venture. A feasibility study is filled with calculations,
analysis and estimated projections while a business plan is made up of mostly tactics
and strategies to be implemented in other to grow the business.

 The importance of feasibility study is based upon the organization’s desire to “get it
right,” before committing business resources, time and budget. A feasibility study might
uncover new ideas that may completely change a project’s scope. The decision to
conduct a feasibility study should not be taken lightly.

 The importance of business plan is to help articulate a strategy for starting a business. It
also provides insight on steps to be taken, resources required for achieving business
goals and timeline of anticipated result.

B. Discuss the features of a feasibility and a business plan, including marketing,

operations, personnel and financial aspects.

 A market feasibility study helps businesses set expectations and plans. A good market
feasibility study assesses the market environment while also identifying potential
customers and other sources and revenue. Market feasibility studies should include;
description of industry, current market analysis, competition, anticipated future market
potential, potential service revenue, sales projections. Operational feasibility is the
measure of how well a proposed system solves the problems, and takes advantage of
the opportunities identified during scope definition and how it satisfies the
requirements identified in the requirements analysis phase of system development.

 A financial feasibility analysis examines the expenses of starting, operating, and

maintaining the business; market and economic feasibility; expected return on
investment (ROI); and expected liabilities.
The 5 Components In A Feasibility Study And What They Mean
 Legal Feasibility.
Technical Feasibility.
Scheduling Feasibility.
Economic Feasibility.
Operational Feasibility.

 Features of a Good Business Plan

1. Executive Summary
The executive summary functions as a reading guide, as it highlights the key aspects of the plan
and gives structure to the document. It must describe ownership and history of formation. It is
an abstract of the entire plan, describes the mission statement of the organization, and
presents an optimistic view about the product/service/concept.

2. Business Description
This section presents the mission and vision of an organization. Business descriptions provide
the concept of one’s place in the market and its benefits to future customers. It must include
key milestones, tasks, and assumptions, popularly known as MAT. Big ideas are redundant
without specifics that can be tracked. Fundamental questions to be answered include:
Who are you?
What is the product or service, and what are its differentiating characteristics?
Where is the opportunity located?
When will you start implementing your plan and expects cash flows or profits?
Why should customers choose your company?
How do you plan to run the business in terms of structure and regulatory compliance?

3. Market Strategies
The market strategies section presents the target consumer group and the strategies needed to
tap into it. It requires meticulous analysis of all aspects of the market, such as demography,
cultural norms, environmental standards, resource availability, prices, distribution channels,
etc.

4. Competitive Analysis
The competitive analysis section aims to understand the entry barriers one could face due to
other companies in the same or complementary sectors. The strengths of existing companies
could be co-opted into one’s strategy, and the weaknesses of existing product development
cycles could be exploited to gain a distinct advantage.

5. Design and Development Plan

It outlines the technical details of the product and its development cycle within the realm of
production. In the sphere of circulation, it focuses on marketing and the overall budget
required to reach organizational objectives.

6. Operations and Management Plan

The operations and management plan describes the cycle of business functions needed for
survival and growth. It includes management functions such as task division, hierarchy,
employee recruitment, and operational functions such as the logistics of the value chain,
distribution, and other capital and expense requirements. The managers’ backgrounds must
also be briefly included.

7. Financial Factors
The financials section should include the company’s balance sheet and cash flow projections.
Financial data is imperative to provide credibility to any assertions or claims made about the
future profitability of the business. The aim is to provide an accurate idea of the company’s
value and ability to bear operational costs and earn profits.

C. Differentiate the feasibility study and business plan requirements in manufacturing

and service sectors.

 A feasibility study is a trial run that tests your manufacturing steps, materials, and
equipment to confirm that your process is designed correctly. While business plan
manufacturing plan is a key piece of your food business’ overall strategic plan. Your
manufacturing plan is a clear set of actions driven by gaps and discoveries from your
manufacturing analysis, or the analysis of your business’ manufacturing processes.
defines what your manufacturing strategy will look like in the future, whether it’s
multiple facilities, renovations or even consolidating operations or products.
  A feasibility study is a preliminary exploration of a proposed project or undertaking to
determine its merits and viability. A feasibility study aims to provide an independent
assessment that examines all aspects of a proposed project, including technical,
economic, financial, legal, and environmental considerations. While a service business
plan provides a snapshot of your service company as it stands today, and lays out your
growth plan for the next five years. It explains your goals and your business strategy for
reaching them. It also includes market research to support your company plans.

D. Propose three business ventures and prepare a Business Case or Business Concept Paper
using this outline:

Business Idea # 1: Grace Learning Center

BUSINESS DESCRIPTION

Grace Learning Center is a new, locally established preschool and kinder located in San
Antonio, Barbaza, Antique. Grace Learning Center will offer a variety of services that range in
age from infants to twelve years old. The Grace Learning Center will foster a nurturing, loving,
safe environment where a child will feel a comfortable while learning foundational skills that
will enable them to have a successful cognitive, behavioral, and emotional successful childhood.
Grace Learning Center teaching staff are all highly-qualified and certified early education
teachers and receive the latest in training and development. The Grace Learning Center offers
competitive tuition rates and offers live studio streaming so that a parent can login and check
on their child at any given time. The facility will also have secure-access codes to ensure that
only verified parents and visitors are allowed onsite. Grace Learning Center curriculum is
developed with the latest innovation learning methods and techniques so that each child will
receive proper foundational skills taught in a positive manner while providing a fun and
enriching learning environment.

SWOT ANALYSIS
Strength
 Every working parents needs someone to watch their children when they are not
in school.
 Both parents are working in most families today due to economic decline.
 My hours of operation will provide my business with an advantage.

Weaknesses
 A relatively small physical facility, financial or legal issues, and lack of experience.
 The first year of a business is always the hardest and most vital.
 It will be hard for me to maintain reasonable prices for the customers if I cannot
manage to make a profit.
 I will have to lose money before I can ever expect to make a profit
 It is a small town, so clientele is limited.

Opportunities
 Few local competitors.
 People today have less discretionary income, forcing them the cheapest source
of necessity (in this case necessity is preschool and kinder)
 Hopefully in time, I can stretch my business to other communities with similar
needs.
 I can acquire new business acquaintances. Everyone you meet presents a new
opportunity.

Threats
 The lack of financial backing; the popularity of many established competitors; or
the possibility of other new childcare businesses within same locality.
 Failure to obtain legalities
 The other Learning Center have more experience and faithful clients.
 Maintaining a 24 hours is a treat in itself.

MARKETING PLAN

 The target market for a Learning Center is generally working parents or one-
income families that have very active daily routines. Many potential clients look
 for centers that are near schools their other children attend, near their homes or
near their jobs.

OPERATIONAL PLAN

The Owner and Director of the facility will develop all curriculums for each class, hire
and schedule all teachers, and be the person communicating with all families. They will also
lead all marketing efforts when visiting schools and businesses. The 3-5 fully licensed and
certified Early Education teachers. There will be assigned teacher per classroom and a floating
teacher to assist with early care, after care, lunchtime, playtime, and bathroom breaks.

MANAGEMENT PLAN

The Grace Learning Center will consist of the founder, a silent partner, a campus
director and administrative assistant. As the Center grows, gradual investment in the
instructional staff will be made over the next 5 years.

FINANCIAL PLAN

Revenue drivers for Grace Learning Center will be the learning center services offered.
The revenue will come from the weekly and monthly tuition rates for the infants, toddler,
preschool, kinder, before and after school programs, and summer camps. The cost drivers will
be the overhead costs of maintaining a teaching staff and safe facility. The main expenses will
be the teachers’ salaries, payroll costs, food for the staff and students, playground equipment,
toys, books, pillows, cots, and cleaning supplies. Other costs will be the maintenance and
implementation of the live audio video streaming, secure-controlled facility locks, rent and
utilities.

b. Product / Service Description

 Services provided by Grace Learning Center helps parents select the appropriate facility
for their children. These could include after-school hours or options for late -night services.
Beyond the times available, Grace Learning Center have games and toys for children to play
with, and provide a safe environment and early education options. We will provide also
immunizations and medical tests, have doctor, dentist, and veterinary referral services, offer
parenting classes, organize community volunteer events, and host social gatherings for parents.

c. Intended Customer/Client (Target Market)/Market Analysis

The intended customer or client is the parents. Parents have different reasons for
looking for good Learning Center. So, truly to understand this market we need to dig deeper
and look closely at the need that parents have that makes them consider a learning center for
their children. And this can be a basis for segmenting this market large market.

d. Service Need

Provides supervision and care of infants and young children during the day time,
particularly so that their parents can hold jobs. It also a way to enjoy a safe and stimulating
environment in which to learn and grow. Become physically fit through proper nutrition and
active play. Developmental, verbal and language skills. Build up self-confidence, self- expression
and self-discipline.

e. Product/Service Innovation

Innovation means taking risks, sharing results early, and learning quickly from ideas that
don’t work. Most leaders in the early childhood field focus on the delivery of best practices
today, others need to invest in the creation and expansion of more effective best practices for
tomorrow. We can and need to do better an innovation approach can point the way.
An innovation-friendly environment allows people to work together, test new ideas, and
engage in active learning. There are a few key ingredients that can support innovation in the
early childhood field:
 Ideas for taking action that are grounded in the latest science and informed by on-the-
ground experience.
People and organizations who are willing to work across sectors to test promising ideas,
learn from failure, promote fast-cycle sharing, and lead broader impact.
Policy, funding, and professional environments that support experimentation and
entrepreneurial investment in new ideas.
To that end, we are building a diverse network of practitioners, researchers, service
recipients, and policymakers to accelerate progress through a disciplined process of fast-cycle
design, testing, and sharing of new ideas in real-world contexts. In our fast-cycle innovation
process, new ideas are tested through micro-trials with small numbers of children, parents, and
practitioners in different settings to facilitate rapid sharing and modification based on who
appears to be benefitting from specific interventions and who does not.

f. Prime Mover of Product/ Service/ (Competitor Analysis)

Learning Center will be able to offer the following competitive advantages over their
competition:

Friendly, warm, and safe environment for children.

All teachers are early education certified, trained, and experienced.
Menu that is developed with the highest regard for nutritional value at a young age. All meals
served will be nutritionally well-rounded, fresh, and prepared with the safest cleanliness
standards.
Live internet video of all classrooms and rooms so that each parent has the ability to logon and
check on their child at any given time.
Security-controlled facility access. Only permitted parents and visitors are given access via a
passcode.
Age-appropriate playgrounds with the safest playground equipment.

Business Idea #2: MG Home Cleaning Service

BUSINESS DESCRIPTION

MG Home Cleaning Services will service small commercial businesses and residences.
Aside from basic janitorial services, MG will offer specialty cleaning services such as window
cleaning, floor cleaning, upholstery cleaning, and carpet shampooing. We are committed to
only providing friendly and quality service at affordable prices. All employees will undergo and
complete a training program where they will learn and master the highest cleaning standards
for every situation.

SWOT ANALYSIS

Strength
 The company’s founder has extended experience in the janitorial and commercial
cleaning industry
 Company management is motivated by satisfaction, recognition and rewarding our staff.
 Company management is committed to identifying and adhering to our customer’s
needs.
 Consumer and commercial spending have trended upward due to an increase in per
capita disposable income, which is a large contributing factor to the performance of
businesses in our industry.
 The cleaning company management has a demonstrated passion for both the cleaning
industry

Weaknesses
 Proper marketing will need to be established to assure our target demographic knows
and understands our cleaning services.
 Access to capital for sustained growth is necessary to compete at a competitive price
point.

Opportunities
 The aggressive and focused marketing campaign that we will execute realistic and
achievable goals and strategies to create an immediate impact on gaining new clients
for our cleaning company.
  Company management will work effortlessly to ensure a growing, strong, and loyal
customer base.
 Following startup, the company will pursue new revenue opportunities in the cleaning
industry.
 The company will have an aggressive focus on consistently bid on large cleaning
contracts such as those offered by medium to large-sized educational, government, and
corporate organizations.

Threats
 The first five years our cleaning business is in operations will determine the outcome of
business success.
 The cleaning company will need access to a market that provides customers that are
willing to contract to small businesses.
 The company may face an inability to find a source for financing of start-up costs.

MARKETING PLAN

MG Home Cleaning Services will offer the unique value proposition to its clientele:
 Affordable and quality cleaning services for every type of business and household.
 Highly trained staff prepared to service a wide range of clients.
 Professionally designed website with social media and a referral program that will
reward existing clients for referring new clients.

OPERATIONAL PLAN

MG will utilize the following operations plan.

Operation Functions:
 The owner, will oversee all operations and marketing.
 Staff Accountant will manage all client invoicing, billing, and payables.
  Human Resources manager to oversee all employee hiring, onboarding, payroll,
retention and benefits programs.
 Training manager to develop and implement a strict cleaning protocol program that
every employee will have to pass.
 8 – 10 hourly cleaning professionals at startup. More hourly employees will be hired as
needed for growth.

MANAGEMENT PLAN

MG Home Cleaning Service will be operated by the help of a management staff.

FINANCIAL PLAN

The revenue drivers for MG Home Cleaning Services are its menu of cleaning services. Aside
from regular janitorial services, MG will also offer specialty services such as carpet shampooing,
window cleaning, upholstery cleaning, and floor cleaning. Each client will be billed on a monthly
basis based on the type of contract they sign. All clients will be able to choose pricing based on
monthly or daily services with the option of adding a specialty service as needed. The cost
drivers for MG Home Cleaning Services will be the employee overhead to cover the salaries of
the managers, hourly wages of the cleaning professionals, and health insurance for the entire
staff. Other cost drivers will be the marketing expenses, rent and utility cost, and professional
insurance for bonding.

b. Product/ Service Description

MG Home Cleaning Service thorough cleanings of houses using cleaning supplies and
equipment that they, or the cleaning agency for which they may work, own. They clean
according to scheduled times set by a homeowner.
We are looking to hire a hard-working home cleaner service to perform deep cleaning
duties. The home cleaner’s responsibilities include scrubbing kitchen fixtures, vacuuming and
mopping floors, and steam-cleaning upholstery. You should also be able to remove grease,
mineral deposits and soap scum from various surfaces.
 To be successful as a home service cleaner, you should be able to occasionally work in a
team when cleaning larger homes. Ultimately, a top-performing house cleaner should be able
to complete all tasks to the homeowner’s satisfaction within a given time.
We are looking to hire a hard-working house cleaner to perform deep cleaning duties. The
house cleaner’s responsibilities include scrubbing kitchen fixtures, vacuuming and mopping
floors, and steam-cleaning upholstery. You should also be able to remove grease, mineral
deposits and soap scum from various surfaces.
To be successful as a house cleaner, you should be able to occasionally work in a team when
cleaning larger houses. Ultimately, a top-performing house cleaner should be able to complete
all tasks to the homeowner’s satisfaction within a given time.
Home Cleaning Service Responsibilities:
 Meeting with homeowners to discuss their expectations and preferences.
 Responding to homeowners' inquiries and complaints in a professional manner.
 Informing homeowners of any accidents that may occur during the course of cleaning.
 Scrubbing and sanitizing bathrooms, toilets, showers, and sinks.
 Scrubbing and sanitizing all kitchen fixtures and appliances.
 Dusting ceilings, light fixtures, picture frames, tables, and chairs.
 Spot cleaning doors and frames.
 Vacuuming and mopping all types of flooring.
 Performing interior window cleanings.
 Vacuuming carpets and steam-cleaning upholstery.

Home Cleaning Service Requirements:

 High school diploma or GED is preferred.
 Proven experience home cleaning.
 Sound knowledge of cleaning supplies and cleaning techniques.
 The ability to follow instructions.
 The ability to stand for long periods of time.
 The ability to adapt to changing schedules.
 Excellent customer service skills.
 Punctual and reliable.

c . Intended Customer/Client (Target Market)/Market Analysis

MG Home Cleaning Service provided to private households rather than businesses or
organizations. The target market for residential cleaning includes homeowners, renters, and
landlords.
 Homeowners are the most obvious target market for residential cleaning services. These
are people who own their own homes and need to hire someone to clean them on a regular
basis.
Renters are another target market for residential cleaning services. The difference
between renters and homeowners is that renters, especially, if they are short-term renters,
may not be willing to spend a lot for a top professional cleaning service, except when it is time
for them to leave their rental home and collect their security deposit.
Landlords are the final target market for residential cleaning services. These are people who
own rental properties and need to hire someone to clean them on a regular basis.

d. Service Need

Hiring MG Home Cleaning Services to clean your home can make your life easier and
relieve you of daily chores. You will no longer have to worry about making time to get chores
done during your busy day. Once you delegate the cleaning responsibilities to a MG home
cleaning service, there is no need to spend time dusting, washing or vacuuming.
Besides cleaning your home for you, professional cleaners provide you with health benefits
that include eliminating allergies, removing dust mites, and achieving a deeper clean. There is
no need for you to worry about mould and mildew because maids will know how to eradicate
microbes.

d. Product/Service Innovation

The cleaning industry certainly is undergoing massive changes. Innovative cleaning tools
and processes are fundamentally altering the way business owners manage their companies,
and how employees conduct their day-to-day activities.
MG Home Cleaning Service and new equipment to social media marketing and
automated management, staying ahead of the competition means being aware of cleaning
trends at all times.

f. Prime Mover of Product/ Service/ (Competitor Analysis)

 MG Home Cleaning Service be able to offer the following advantages over their
competition:
Professional and friendly service at affordable prices.
Owner who will interact with each client on a weekly or monthly basis to ensure they
are completely satisfied with their cleaning service. Owner will ask for any constructive criticism
in order to implement strategies beneficial to client retention and referrals.
A referral program where clients can earn a free cleaning for every business and/or
household they recruit.
A training program for each employee to ensure they are fully qualified to perform the
highest cleaning standards for any business or household.

Business Idea #3: HAPPY TO SERVE FOOD TRUCK

BUSINESS DESCRIPTION

Happy to Serve is a food truck specifically targeted to college students. The food truck
will travel around to different campuses in Antique, specifically in many people , in order to
offer greater variety of food. Often times college students get sick of the dining halls and the
food that they offer. Happy To Serve Food Truck will be an innovative way to offer different
choices, specifically foods that are easy to eat on the go. A variety of sandwiches, soups, wraps,
desserts, drinks, etc. will be offered. Happy To Serve Food Truck will be easy to both accessible
and affordable.There are few trucks on the market but ours will specifically target the large
population of college age consumers. Happy To Serve Food Truck will also have an advantage
and a certain appeal on the market because it will buy mainly from locally grown producers.
The company will purchase products grown from local farms for use as our ingredients. This will
take advantage of the growing trend in locally produced ingredients and potentially pull in a
larger market. According to the National Restaurant Association, demand among 18-44 year
olds for fresh, local food is increasing. Our food truck would present an opportunity to meet
this growing market.

Happy To Serve Food Truck lie in its ability to be mobile and target a certain customer.
There is a huge population of students who are all potential customers. Everyday a new “main
meal” option would be offered as well as certain staples. We will run with set hours to make
the business easier to operate. We will also service a late-night crowd to bring in more revenue
and attract those looking for food when not much is open. Lunch would be served from
approximately 11:00AM- 4:00 PM weekly with dinner being offered from 5:00 PM- 8:00 PM.
During the weekend we will focus on late-night options, remaining open until 3:00
AM.Customers will be able to follow the business and receive alerts on their phone as to where
the truck is currently located. The business will start off with one food truck but if successful
enough we will look to include other trucks to reach more markets. Happy to Serve Food Truck
would want to offer work-study opportunities to the students at colleges we regularly serve.
Competition and threats will include other food trucks and also brick-and-mortar type
restaurants that have set-locations. Weather will also affect business because often time’s
people don’t like to go out in bad weather conditions.

SWOT ANALYSIS

Strength
 Experienced staff
 Brand Recognition
 Cheap Prices
 Fresh Innovative Food
 Fast Service

Weakness
 Limited Capital
 Costly Food Ingredients
 Less experience
 Lack of Information

Opportunities
 Emerging Business
 Partnership local restaurant
 New product and taste
 Mobile app and Website
Threats
 Legal requirement
  Easy to duplicate
 Hygiene Conscious people

MARKETING PLAN

Happy To Serve Food Truck will target customers in Antique, who live, work, or socialize.
This is frequented by numerous young professionals, college students, and the late-night crowd
who regularly eat at restaurant. Anyone seeking trendy dining options are the target customers
of Happy to Serve Food Truck.

FINANCIAL PLAN

Happy to Serve Food Truck is seeking P40,000 in debt financing to open its food truck.
The funding will be dedicated for the purchase of the food truck, cooking supplies and
equipment, working capital, three months worth of payroll expenses and opening inventory.
The breakout of the funding is below:
Purchase of food truck – P20,000
Food truck kitchen supplies and equipment – P10,000
Opening inventory – P2,000
Working capital (to include 3 months of overhead expenses) – P3,000
Marketing (website design and management) – P5,000

b. Product / Service Description

The Happy to Serve Food truck business is about making good meals on the go, this
launching a food truck business is for you.
A Happy Serve food truck is a large vehicle with a kitchen to make and serve food. Many
entrepreneurs opt for a food truck because purchasing a restaurant location is very expensive,
while food trucks are much more affordable.
b. Intended Customer/Client (Target Market)/Market Analysis

The target audiences for Happy to Serve food truck businesses are. Middle-class millennials,
adult, workers, and children. According to an IBISWorld Inc. report, 43% of food truck spending
each month is made by 25- to 44-year-olds, with an additional 20% coming from those under
the age of 25.

C.Service innovation

The need for adaptability in Happy ti Serve food trucks, in addition to low start-
up and operating costs, has empowered chefs to be bold and adventurous in their menu
decisions. Authentic flavors and approaches are being paired in unique and surprising
ways. The Smithsonian article sums it up well: “Happy to ServebFood Trucks are the new
incubators of culinary innovation.” Not only are they incubators of culinary innovation,
they are a tried-and-true testing ground for chefs to “test drive” their culinary concepts
with low overhead before jumping into the full brick-and-mortar investment.