SIMPLIFIED BUSINESS PLAN

SIMPLIFIED BUSINESS PLANON TRADING BUSINESS

Name of Business: Pinoy TradingLegal Form: Sole ProprietorshipBusiness Type: TradingProducts and/or services: Fertilizer, InsecticidesCustomers: FarmersOwner: Pedro PenducoNumber of staff or employees: 2, Sales Clerk, Bookkeeper, 1 delivery boy, 1 warehousemanFUND REQUIREMENTS AND SOURCINGRequirementsSource of FundsTotal Cost Equity OWWA Loan Fixed Assets:Building Construction/RenovationP20,000.00 P20,000.00Machineries and Equipment 100,000.00 100,000.00 Furniture and Fixtures 5,000.00 5,000.00

Working Capital 300,000.00 300,000.00--------- -------- ----------TOTALP425,000.00 P125,000.00 P300,000.00====== ====== =======MARKETING PLANProducts to be sold : Fertilizer and InsecticidesTarget Customers: Farmers Location: Neighborhood and Nearby Places of San Ricardo, Talavera, Nueva EcijaCompetition and competitive advantage:Competitors

ABC Trading

Bagong Buhay Coop.

Pinoy TradingPresent estimated Capitalization

P500,000.00

1,000,000.00

300,000.00No. of years in Operation

3

10 Comparative PricingHighx

Ave.

XLow

X5WHY WOULD PEOPLE BUY MY PRODUCTS AND/OR SERVICES INSTEAD OF MY COMPETITORS? Pinoy Trading will be offering special discounts to customers with good credit standing. We will be selling products of good quality with low price and will make sure that customers are our top priority by providing excellent customer assistance and free on-time delivery for every P5,000.00 worth of products purchase.6Expected Sales/MonthProduct Pricing100 cavans of fertilizer at P1,500/cavan and P25,000.00 to P50,000.00 insecticide.Products will be sold at 25% mark up and will be offering 3% special discounts to good customers. Compare to our competitors, our products will be selling at low price but of good quality.BUSINESS LOCATION Pinoy Trading is located at San Ricardo, Talavera, Nueva Ecija along provincial road near San Ricardo National High School and Brgy. Hall of Brgy. San Ricardo. It is very accessible to nearby places because of concrete roads and there is electricity supplied by Nueva Ecija Electric Cooperative. San Ricardo, Talavera and neighboring places are 98% agricultural area.METHODS OF DISTRIBUTIONMETHOD

Free Delivery

Delivery with ChargeDETAILS

P5,000.00 worth of products purchased within San Ricardo, Tal., Nueva EcijaGasoline

Within the area with a minimum charge of P150.00/delivery, outside Talavera P300.00/deliveryGasolineCOST

P 50.00/delivery

P100.00/deliveryTYPES OF PROMOTION/ADVERTISINGTYPE

SIGNAGE

STEAMERS/TARPAULIN

POSTERS/FLYERSDETAILS

TO BE INSTALLED IN FRONT OF THE STORE

TO BE INSTALLED IN CROSSING CABANATUAN CITY

TO BE DISTRIBUTED IN NEARBY PLACESCOST

P 500.00

P1,000.00

P500.00TECHNICAL AND ORGANIZATIONAL PLANMANPOWER COMPLEMENTPOSITION

Manager

CashierBRIEF DESCRIPTION

Shall be responsible in managing the business. The decision maker and primary responsible in the business operations.

Shall be responsible for cash outflows and inflows.NO. REQD

1SALARY/WAGE RATE

No salary needed since this is a sole proprietorship. The owner is the manager.

No salary needed since this is a sole proprietorship. The owner is also the cashier.

POSITION

Sales Clerk

Sales Clerk/BookkeeperBRIEF DESCRIPTION

Shall be responsible in the daily sales. Shall attends to customer needs. Shall report and prepare daily sales.

Shall be responsible for daily sales. Since shes also the bookkeeper she shall be responsible in recording of the daily sales and daily transactions. Shall prepare financial reports for review of the owner/manager.NO. REQD

1

1SALARY/WAGE RATE

P3,000.00 subject to salary increase depends on the net income of the business.

P4,000.00 subject to salary increase depends on the net income of the business.

POSITION

Delivery Boy

WarehousemanBRIEF DESCRIPTION

Shall be responsible in the delivery of products purchased by customers. Shall submit to bookkeeper the delivery receipt. Shall be responsible in the maintenance of delivery vehicle.

Shall be responsible for in and out of products. Shall prepare the inventory report and shall be responsible for monthly physical inventory under the supervision of the owner/manager.

NO. REQD

1

1SALARY/WAGE RATE

P3,000.00 subject to salary increase depends on the net income of the business.

P3,000.00 subject to salary increase depends on the net income of the business.

MACHINE/EQUIPMENT REQUIREMENTMACHINE EQUIPMENT

Delivery Vehicle

Furniture and Fixtures

Office/Store RenovationNO. REQD

1

UNIT COST

P100,000.00

TOTAL COST

P100,000.00

5,000.00

20,000.00Organizational ChartFINANCIAL ASPECTBASIC ASSUMPTIONSWorking Capital (OWWA Loan) payable in one year P300,000.00Interest on Loan 7.5% p.a. with grace period of two monthsFree delivery for a minimum purchase of P5,000.00P300 delivery charge outside Talavera, Nueva EcijaP150.00 delivery charge within25% mark-up on products soldSalaries and Wages1 Delivery boyP3,000.00/month

1 Sales ClerkP 3,000.00/month1 Sales Clerk/Bookkeeper 4,000.00/month1 Delivery Boy 3,000.00/month1 Warehouseman 3,000.00/monthPower, Light and Water ElectricityP700.00/monthWater 300.00/monthOffice Supplies 500.00/monthTaxes and LicensesBIR/Business Permit (Mayors Permit), DTI/DOLEPermit(to be amortized in one year)4,000.00Fuel and Oil for Delivery of products sold 2,000.00/monthTrans. And Travelling Expenses 2,000.00/monthPromotional ExpensesSignage,Tarpaulin,flyers 2,000.00

Plant Property and Equipment

Delivery Vehicle

Furniture and Fixture

Store Construction/RenovationCOST

P100,000.00

5,000.00

20,000.00ESTIMATED LIFE

10 years

5 years

5 yearsDEPRECIATIONPER MONTH

P833.33

83.33

333.33Sales per month 100 cavans of Fertilizer at P1,500.00/cavan and P62,500.00

Purchases per month depends on Cash Available for UsePINOY TRADINGProjected Statement of Cash FlowJanuary 1 to March 31, 2015JanuaryFebruaryMarchCASH INFLOWS: Loan Proceeds (OWWA)300,000.00 Net Sales212,050.00212,050.00212,050.00TOTAL CASH INFLOW(Available512,050.00212,050.00212,050.00 for use)Less: CASH OUTFLOWS: Purchases290,000.00194,000.00194,000.00 Salaries and wages13,000.0013,000.0013,000.00 Power, Light and water1,000.001,000.001,000.00 Office Supplies500.00500.00500.00 Taxes and Licenses4,000.00 Trans. And Travelling Exps.2,000.002,000.002,000.00 Fuel and Oil Expenses2,000.002,000.002,000.00 Promotional Expenses2,000.00TOTAL CASH OUTFLOW314,500.00212,500.00212,500.00NET CASH BEFORE DEBT SERVICE 197,550.00 (450.00) (450.00)Less: Debt Service Loan Payable (Principal)0025,000.00 Interest on Loan001,875.00 Total Debt Service 0026,875.00NET CASH FLOW AFTER DEBT 197,550.00 (450.00) (27,325.00)SERVICEAdd: Cash Bal. Beginning0 197,550.00 197,100.00 CASH BALANCE-END 197,550.00 197,100.00 169,775.00 PINOY TRADINGProjected Income StatementFor the First Quarter Ended, 2015JanuaryFebruaryMarchSALES212,500.00212,500.00212,500.00Less: Sales Discounts 450.00 450.00 450.00 Net Sales212,050.00212,050.00212,050.00Less: Cost of SalesBeg. Inventories0.00 120,000.00 144,000.00Add: Purchases290,000.00194,000.00194,000.00Less: Puchases Returns & Allow.0.000.000.00 Purchase Discounts0.000.000.00Goods Available for Sale290,000.00314,000.00338,000.00Less: Merchandise Inventories 120,000.00 144,000.00 168,000.00 COST OF SALES170,000.00170,000.00170,000.00Gross Income42,050.0042,050.0042,050.00Less: Operating Expenses Salaries and wages13,000.0013,000.0013,000.00 Power, Light and water1,000.001,000.001,000.00 Office Supplies500.00500.00500.00 Taxes and Licenses333.33333.33333.34 Trans. And Travelling Exps.2,000.002,000.002,000.00 Fuel and Oil Expenses2,000.002,000.002,000.00 Promotional Expenses2,000.000.000.00 Depreciation Expense 1,249.99 1,249.99 1,250.02 Total Operating Expenses 22,083.32 20,083.32 20,083.36 Net Income from Operation 19,966.68 21,966.68 21,966.64 Less: Interest on Loan 1,875.00 Net income Before Tax 19,966.68 21,966.68 20,091.64 Provision for Income tax 5,990.00 6,590.00 6,027.49 NET INCOME 13,976.68 15,376.68 14,064.15 PINOY TRADINGProjected Balance SheetFor the First Quarter Ended, 2015JanuaryFebruaryMarchASSETS:Current assets:Cash on Hand 197,550.00 197,100.00 169,775.00 Merchandise Inventories 120,000.00 144,000.00 168,000.00 Prepaid Expenses3,666.673,333.343,000.00Total Current Asset321,216.67344,433.34340,775.00Plant, propert and Equipment:Delivery Vehicle100,000.00100,000.00100,000.00Less: Accumulated Depreciation833.33 1,666.66 2,500.00 99,166.6798,333.3497,500.00Store Construction 20,000.00 20,000.00 20,000.00 Less: Accumulated Depreciation 333.33 666.66 1,000.00 19,666.6719,333.3419,000.00Furniture and Fixtures 5,000.00 5,000.00 5,000.00 Less: Accumulated Depreciation83.33166.66250.00 4,916.67 4,833.34 4,750.00 TOTAL ASSETS444, 966.68466,933.36462,025.00LIABILITIES AND CAPITALLoans Payable (OWWA)300,000.00300,000.00275,000.00Provision for Income Tax 5,990.00 12,580.00 18,607.49 Accrued Expenses PayableTotal Liabilities305,990.00312,580.00293,607.49CAPITAL:Pedro Penduco Capital125,000.00125,000.00125,000.00Net Income 13,976.68 29,353.36 43,417.51 CAPITAL END 138,976.68 154,353.36 168,417.51 TOTAL LIABILITIES AND CAPITAL 444,966.68 466,933.36 462,025.00

THANK YOU