Homework Help

https://www.homeworkping.com/

Research Paper help

https://www.homeworkping.com/

Online Tutoring

https://www.homeworkping.com/CHAPTER I

INTRODUCTION

In the Philippines, we have been experiencing the same kind of “progress”

as in many other countries. Traffic is a constant obstacle. The proliferation of

smart phones and other devices has given us the capacity to multi-task, doing

more things at the same time. Leading training companies worldwide offer

programs designed to manage stress brought about by the need to multitask.

Some of the trends noted include far-reaching globalization, demand for higher

productivity, and unpredictable competition from more sources, changing

customer demands, and balancing cost-management with business growth,

among others. All in all, it is not a healthy set-up.

In today’s hectic life and busy routines, beauty spa treatments for your

skin and body are very important to keep you going. Unfortunately despite

knowing the wonders these beauty spas, we hardly pull out enough time for them

amid our nick-of-time schedules. Due to the busy schedules, home spa is

considered as the wonderful relaxing idea where you can enjoy with your friends

in a pampering and soothing environment. The importance of beauty

spa treatments is simply undeniable to increase the beauty and to maintain our

natural look to stay gorgeous longer. Different kinds of herbs and natural

ingredients that are part of these beauty spa treatments have a large number of

positive impacts on our skin and body. In the beauty process of  home spa,

different natural agents including water, clay, minerals etc. play a remarkable

role.

Here are some of the benefits that home spa treatment can bring for you:

Improves blood circulation

The massage therapy of that home spa can brought amazing relaxation

for you which helps in proper blood circulation which is important to maintain the

normal functioning of our body parts.

Relieves body pain

The beauty spa treatments and the spa trend in Pakistan give relaxation to

all your body parts and senses to rejuvenate you, which helps to relief body pain.

 

Enhances body energy

The soothing sessions of home spa can help you in enhancing your body

energy, as it reduces the stress and relaxes the body muscles, which help them

in better body movement.

Detoxifies body

The beauty spa therapies also help in detoxifying your body from

impurities and also help in lowering body fat.

Prevents Hypertension

Beauty spa treatments can do wonders for hypertensive patients as it

relaxes your mind and body which helps in preventing the problems related to

hypertension by regulating blood pressure.

Going to a spa is no longer considered as a luxurious extravagance – it is

now known to have a beneficial effect on feeling and looking good. If you feel like

a day is not enough and want to feel the bliss of a good spa treatment for longer,

look for a spa break. A spa break can take up to a week and it would be the most

luxurious holiday you can think of for your body and soul.

The spa industry has a history that dates back to more than a thousand

years and today it has evolved into a clinical concept. Hydrotherapy uses three

key ingredients in providing you with a sound mental and physical relaxation.

These are heat, massage and buoyancy. The word spa is derived from Latin

phrases such as Solus per Aqua and Sanitas per Aquam, which means health

through water. Therefore, the use of water in spa treatments is a broad element.

Saunas whirl pools, hot tubs, and steam baths and hand and foot baths are

common in spas.

Hot water has the power to stimulate and rejuvenate. It improves blood

and oxygen circulation in the body. Hot water therapy has proved to help people

suffering from diabetes and arthritis. Hydrotherapy can make sleeping patterns

normal by reducing stress and other discomforts of the body. A massage you

receive in a spa has numerous benefits. Massages reduce stress, ease tension,

relieve aches and pains, improve blood circulation, strengthen tissues and

immunity and improve restful sleep. Use of hot stones, aroma therapy, wraps and

soothing sounds can make a spa day feel close to heaven.

A spa experience not only is healthy for your interior but also your

exterior. Just like a body wrap increases metabolism, it also invigorates your

skin. Most of these wraps contain herbal compounds that carry many medicinal

values. Body scrubs get rid of your dead and weak skin cells, giving your skin a

radiant glow. Spas look after your body from your face to your feet. Waxes,

manicures and facials are some of the few side dishes that come with this blissful

main course. If you are looking for a spa break you will find yourself staying in the

most relaxing environments.

BRIEF DESCRIPTION OF THE PROJECT

A. The Logo and the Slogan

Hayahai

Garden & Spa“BECAUSE WE CARE, SO TOGETHER LET’S PROMOTE LIFE’S WELLNESS”

B. Meaning

The HAYAHAI GARDEN AND SPA’s logo is based in nature and

the responsibility of a person to take good care of his/her own self. The

picture of the model is inside the circle to remind us that life is a cycle and

that we should be the one to manage it. The bamboo signifies the nature

which most of the spa clinic neglect by using chemicals on their consumer,

in which our shop differs. The shop considers using our natural resources

to avoid chemical reaction not only to the costumers but also to our

mother nature. There is also water inside the circle which means being

calm, cool and relax or in other words feeling at home. Emphasizing the

face of the lady it shows that our company is proud to show to the people

the importance of relaxation in a good way and as we all know that the

face is one of the most sensitive parts of the human body.

C. Location

The HAYAHAI GARDEN AND SPA is located at National Highway,

Barangay Pulo Cabuyao City Laguna.

Figure 1 Location

D. STATUS AND TIMETABLE OF THE PROJECT

When planning to start a new business the proponents should consider not only the financial aspects but also the status and the

length of time needed to be used in planning until the business starts.

ACTIVITIES JAN FEB MAR APR MAY JUN JUL AUG SEP OCTConducting a feasibility study

(Market Survey)

Accumulation of Capital

Choosing Suppliers of Services offered Acquisition of the Place and Signing of

Contract

Construction and Design

Registration and Licensing

Acquisition of Machinery and Equipment

Hiring of Employees

Training of Employees

Advertisement Campaign

Grand Opening

Figure 2 Status and Timetable of the Project

STATEMENT OF OBJECTIVES

A. GENERAL OBJECTIVES

The objectives of Hayahai Garden and Spa are:

To promote and preserve the general welfare of the spa industry and the

safety of its consumers, by establishing standards for staffing, training, spa

set-up, spa operation, and product and equipment supply

To be the voice of the spa industry in Cabuyao City, educating the public

about the value and benefits of the spa experience.

To promote the quality of the products and services of those engaged in the

businesses who are its members to meet standards as well as conduct

research and improve production and trading methods for better results.

To cooperate with the government in the promotion of trade, industry,

finance or any other business in the economic field within its objectives.

To agree or provide guidelines for members to follow so as to enable the

engagement of business in the categories contained in its objectives to

operate in an orderly manner.

To mediate disputes between members or between members and outsiders

in the engagement of business.

B. SPECIFIC OBJECTIVES

Since there are no any competitors around the vicinity of the

business there’s a high tendency for the Hayahai Garden and Spa clinic to

have an ample demand of service and because the shop is strategically

placed near villages and other establishments the owners can expects a

high demand of service. The spa service can be rendered at optimum

quality in a reasonable price to cater not only the rich but also the average

people. During the operating phase of the business the owner is obligated

to manage the shop to ensure a good flow of income and clients.

Substantial sales revenue by end of second year. Profit of 70% of sales

before tax by end of second year. Have clientele return rate of 90% by end

of first year. Become established community destination by end of first

year.

To support and assist members to overcome obstacles as well as mediate

with outsiders for mutual benefit in the engagement of business in the

categories contained in the objectives; monitoring and following up on the

movements in both the domestic markets of the products and service in which

its members are engaged, for the benefit of trade, finance, economy or

security of the country; and to encourage participation of spas of every size

and kind, and entities actively engaged in supplying goods or services to the

spa industry.

MARKET STUDY

The market study for the proposed business “Hayahai Garden and Spa”

circulates to determine common problems or conflicts that the firm would

encounter for the future and to give possible solutions that this feasibility study

was contain with.

In this chapter, the readers will get intact with the researchers’ idea on

how to market the business, define the most appropriate strategies to be

implemented, and how will the firm achieves their primarily purpose of existence

which is to compete financially among other competitive firms.

This study determines the target market, demand for the service offered,

marketing practices to be adopt, the channel of distribution to be used and its

competitive position for the next five years.

A. Demand

The study of demand in the proposed project Hayahai Garden and Spa is

divided into different factors affecting demand such as Population, Income,

Employment and Market trends. The number of people, their incomes and the

type of jobs they hold will be the most decisive factors in measuring demand.

Indicate the actual and potential consumption of services for the past five

years to estimate the demand of service for the next five years using Arithmetic

Straight Line Method. All information is gathered by the proponent during the

interview and survey questionnaires.

Table 1Distribution of Respondents According to Gender

Gender Frequency PercentageMale 47 47%

Female 53 53%Total 100 100%

As shown in the table, it is stated that majority of the respondents were

female. Thus, it shows that female is more competent than female.

Table 2Distribution of Respondents According to Age

Age Frequency PercentageBelow 20 years old 10 10%21 – 40 years old 53 53%41 – 60 years old 30 30%

61 and above 7 7%Total 100 100%

Table 2 shows that the data regarding frequency and percentage

distribution of the respondents in terms of age. It only proves that age of 21 – 40,

people are tend to be more stressed and needed more relaxation.

Table 3Distribution of Respondents According to Civil Status

Status Frequency PercentageSingle 70 70%

Married 25 25%Widowed/ Separated 5 5%

Total 100 100%

This table reveals the distribution of respondents according to their civil

status. Based form the data gathered it shows that there are more single (70%)

respondents than that of with married (25%) and widow/ separated (5%). It

means that those single people are more capable in availing Spa Services.

Table 4Distribution of Respondents According to their Occupation

Occupation Frequency PercentageStudent 10 10%

Employed 67 67%Unemployed 23 23%

Total 100 100%

The table shows that 67% of the total numbers of respondents are

employed; 23% were unemployed; 10 were students. Data proves that most who

avails Spa Services are those people who are employed.

Table 5

Distribution of Respondents According to the Number of Person who Patronize Spa Services

Response Frequency PercentageYes 62 62%No 38 38%

Total 100 100%

The table shows that 62% of the respondents are willing to patronize Spa

Services while 38% are not interested. The data proves that there is a possible

market for a Spa Business.

Table 6Percentage Distribution of the Frequency of

Availing Spa Services

Response Frequency PercentageOnce a week 13 13%Twice a week 1 1%Thrice a week 0 0%Once a month 62 62%

Never 24 24%Total 100 100%

Based on the above data, most of the respondents visited spa once a

month with 62%; while 24% of respondents never; 13% of the respondents visit

once a week and 0% thrice a week.

Table 7Percentage Distribution of Respondents According to their Income

Income/ Month Frequency Percentage50,000.00 above 6 6%

25,000.00 – 49,999.00 17 17%10,000.00 – 24,999.00 67 67%

9,999.00 below 10 10%Total 100 100%

The above data shows that most of the respondents has an average

salary of 10,000 – 24,999 with 67%, next is those who have an average income

ranging 25,000 – 49,999. Lastly those who has the highest income and lowest

income per month has a slight difference of 4% which has the lowest percentage

of respondents with 6% and 10%.

PopulationBarangay Pulo has the population of 15,124 as of 2010 (Source:

Http:www.cityofcabuyao.com.ph/homepage). This makes the barangay Pulo the

6th place for being most populated town from Cabuyao aside from Barangay.

Mamatid, Marinig, Niugan, Banay-banay and Barangay San Isidro.

Table 8

Total Population of Pulo for Past Five (5) Years 

YEAR PULO TOTAL2010 15,124 15,1242011 15,514 15,5142012 15,915 15,9152013 16,325 16,3252014 16,747 16,747

TOTAL 79,625 79,625Source: NSO Los Baños & Calamba, Laguna

The above table shows the total demographic population in Barangay Pulo

Cabuyao, Laguna for the past five years.

Table 9 Historical Demand

YEARTOTAL POPULATION

POPULATION

EARNING P10,000 ABOVE

RESULT

% OF PEOPLE

PATRONIZE SPA

SERVICES

RESULT HISTORICAL DEMAND

2010 15,124 90% 13,612 62% 8,439 10,1272011 15,514 90% 13,963 62% 8,657 10,3882012 15,915 90% 14,323 62% 8,880 10,6562013 16,325 90% 14,693 62% 9,109 10,9312014 16,747 90% 15,072 62% 9,345 11,213

TOTAL 71,662 62% 8,439 10,127

B. Competitive Study

1. Selling Price

The services offered are almost the same as to other competitors. This

means that the proponents focused on the price of the services offered by their

competitors. The cost of services offered is in average or in between the price

with others. The selling price varies depending on what type of service availed

and shown on the table below.

Table 10 Selling Price

Services Regular Price Discounted PriceFoot Spa Php150.00 Php90.00Massage Php300.00 Php150.00Scrub Php300.00 Php150.00Sauna Php150.00 Php100.00Whole Package Deal (Sauna, Scrub, Foot Spa, Massage) Php850.00 Php520.00

Package 1 (Sauna, Scrub, Foot Spa) Php600.00 Php370.00

Package 2 (Sauna, Scrub, Massage) Php700.00 Php430.00Package 3 (Sauna, Foot Spa, Massage Php450.00 Php270.00Package 4 (Sauna, Massage) Php300.00 Php180.00Package 5 (Sauna, Scrub) Php450.00 Php280.00Package 6 (Scrub, Foot Spa, Massage) Php800.00 Php490.00Package 7 (Scrub, Foot Spa) Php550.00 Php340.00Package 8 (Scrub, Massage) Php650.00 Php400.00Package 9 (Foot Spa, Massage) Php400.00 Php240.00Spa Party Package 1 (Massage, Foot Spa, Scrub) Php11,000.00 Php7,400.00

Spa Party Package 2 (Massage, Scrub) Php9,500.00 Php6,500.00

Spa Party Package 3 (Massage, Foot Spa) Php8,000.00 Php5,900.00

Spa Party Package 4 (choose from Massage, Scrub or Foot Spa) Php6,500.00 Php5,000.00

2. Competitiveness of the Product

The service has its own advantage and becomes more competitive in

terms of the price, products and its location. Every single person has different

ways or type of relaxation and to relieve stress, with this they are given with

plenty of choices and packages to avail depending on what they prefer. With that

we can satisfy their needs for a minimal price but with quality service. Another is

we let our customers choose on different variety of product which will be used to

them in some other services like body scrub (milk, salt, sugar etc.). In addition,

the location of the proposed business is also a big factor to attract more

customers because it is located in a mall.

C. Marketing Program

It is the process of planning and executing the conception, pricing,

promotion, and distribution of goods, services, and ideas to create exchange with

target market that satisfies customers and organizational objectives. This topic

discusses present marketing practices of competitors, marketing program which

includes the term of sales, channels of distribution, location of the business,

layout design of business, promotion schemes, advertising schemes and

possible marketing problems to be encountered and its solutions.

1. Present Marketing Practices of Competitors

Researchers searched for nearby competitors in a 2000 meter radius and

found out no other business offers spa services such as body scrub, sauna and

massage made the business firm earn ninety percent (90%) of total market share

and the remaining ten percent (10%) to other related type of business.

In a larger scale, for about a 3000 - 4000 meter radius, competitor such as

“Banahaw Heal Spa” located in Brgy. Sala Cabuyao City, Laguna and “Haya-I

Spa” located at Paseo de Uno, Parian Calamba City Laguna offers the same spa

services.

Table 11List of Competitors located near Brgy. Pulo

Meter Radius Name of Business Address Type of

Business

3000 Banahaw Heals Spa

Brgy. Sala, Cabuyao City Spa

4000 Haya-I Spa Paseo de Uno, Calamba City Spa

Data shows, that the market share in a 3000 – 4000 radius changes, as the

number of competitors increased the market share decreases.

As the researchers identified different competitors nearby, they observed

and gathered information and found out different marketing practices offered by

other competitors showed in the table below

Table 12Competitors Marketing Practices

Name of Business Marketing Practices Promo Offered

Banahaw Heals Spa

Low Price Scheme; Middle Class Facilities; Limited Services offered; Poor

Customer Service

Membership fee of 250Php including one (1) full body

massage or scrub

Haya-I Spa

High Price Scheme; Good Facilities; More Services offered; Good Customer

Service

Membership fee of 999Php including discount to other

services

Other Related Businesses

Very Low Price Scheme; Poor Facilities; Limited Services

offered; Poor Customer ServiceNo Membership fee needed

Table shows that competitors practices are more focused on price

commodity rather than demand commodity, quality of services offered depends

on the price scheme and good marketing strategy attracts more customers.

2. Marketing Management ProcessThe process of planning and executing the conception, pricing, promotion,

and distribution of goods, services, and ideas to create exchanges with target

groups that satisfy customer and organizational objectives.

The Strategic PlanOrganizational Mission and Vision

Organizational Strategies

The Market PlanSituational Analysis

Target Market Selection

Figure 3: Marketing Management Process

2.1 The Strategic Plan

Strategic planning and decision processes should end with objectives and

a roadmap of ways to achieve them. One of the core goals when drafting a

strategic plan is to develop it in a way that is easily translatable into action plans.

It includes all the activities which help to develop a clear organizational mission,

vision, objectives, and appropriate strategies to achieve the goals of the entire

organization.

2.1.1 Organizational Mission and Vision

Mission

To offer quality service in a reasonable price for each and every one not

just for beauty and relaxation but also as means of prevention and therapy for

several common ailments of the body, mind and spirit.

Vision

The company Endeavour’s to create a wealthy society by uplifting health

through implementing traditional wellness systems, and to become one of

famous landmark in Laguna by giving 100% customer satisfaction

2.1.2 Organizational Strategies

Implementation and Control

Choice of major directions, the organization will take in pursuing its

objectives. The strategies are divided into two (2) different approaches; Strategy

based on products and market and strategy based on value.

a) Strategy based on Product and Market

Researchers defined the business “Hayahai Garden Spa” as a Present

Product which seeks to find new customers and relies to a strategy called Market

Development Strategy. This strategy encourages new customers by means of

promotions and advertisements. (See flyers and print ads in Appendices.)

List of promotions and advertisements for this proposed businessPromotions

We sell product by this types of promotions:

Flyers

Personal selling

Window banner

Home parties

Advertisements print ads

outdoor

word of mouth

Mobile advertisements

Online advertisements

Scent advertising

Hayahai Garden Spa also adopts the strategy called “Market Penetration”,

focuses on increasing the sales of present product to present customers which

encourages present customers to purchase services offered which comes in

packages.

Under the market penetration strategy our services comes with….

b) Strategy based on competitive advantages

After studying the area of concern and identifying some existing

competitors and their practices (please see table 999: Competitors Practices)

here are the strategies that give researchers advantage among other exiting

competitors.

Product Strategy - offer services and facilities that are commonly offered in a

spa.

Pricing Strategy – if “Haya-I Spa” costs 500 for a full body massage and

“Banahaw Heal Spa” only costs 250 on the same service offered, we can offer

price just between these two nearby competitors which costs 350 with good

facilities and quality service

Promotion Strategy - unlike the two competitors we can offer discounts on

elderly, students and person with disabilities.

Place Strategy – researchers targeted the business to be located at the mall

rather in commercial establishments, because there is much more number of

target customers visiting that place.

c) Strategy based on Value

Seek to build long term relationship with customers by offering unique

value that they can only offer including low price, best products and outstanding

services. The “Hayahai Garden and Spa” focuses on loyalty reward program,

also known as membership program. This strategy targets new customers to

become a repeat customer, as an assurance that more customers will patronize

our business.

2.2 Market Plan

2.2.1Situational Analysis

The marketing manager must analyze and monitor the position of the firm and

specifically, the marketing department, in terms of its past, present, and future

situation

Can be divided into six major areas of concern:

1. The cooperative environment

2. The competitive environment

3. The economic environment

4. The social environment

5. The political environment

6. The legal environment

Cooperative Environment

Our situational analysis under cooperative environment, the organization

should hire employees which are hardworking, reliable, trustworthy, goal oriented

and interested in this kind of business. Employees should possess good traits to

ensure quality service will be given to consumers. Even employers and suppliers

should build up cooperation and unity to ensure the stability of the business. We

believe that good management inside the organization can satisfy all the needs

of our consumers.

Competitive Environment

Before there are just limited numbers of this kind of business, but in these

days, there are few numbers present but in distant locations. If ever there would

be a competitor present nearby the location, management should focus on

enhancing the quality of products and services for them not to be threaten.

Economic Environment

As of now there has no economic problem in the country. If economy falls,

management should still ensure the stability of the business by making the price

still affordable to consumers.

Social Environment

We all know that Filipinos loves massage and many of them considers it

as a form of stress reliever and traditional medicine. With this belief, it increases

the demand.

Legal Environment

Implementing safety measures in providing quality products and services

to avoid possible consumer complaints.

2.2.2 Target Market Selection

Table 13 Target Market according to incomeType of customers Income

Class A People who earns P 50,000 above

Class B People who earns P 25,000 to P 49,999

Class C People who earns P 10,000 to P 24,999

Class D People who earns P 9,999 below

Table 14 Selected Target Market

a. Employees. This is the main target to consider which has the biggest

market. This group is composed of the 57 percent of the whole population

in Brgy. Pulo Cabuyao Laguna.

b. Mall-goers. This is also one of the important groups to be considered as a

target market. This group is composed of those coming to the mall and

looking for some relaxation due to their stressful environment.

c. People who seeks medical attention. This group is composed of people

who has minor ailments in their body but prefers traditional medicine like

massage or “hilot” as a form of therapy.

Channels of distribution

A channel of distribution or trade channel is defined as the path or route

along which goods move from producers or manufacturers to ultimate consumers

or industrial users. In other words, it is a distribution network through which

producer puts his products in the market and passes it to the actual users. This

channel consists of producers, consumers or users and the various middlemen

like wholesalers, selling agents and retailers (dealers) who intervene between the

producers and consumers. Therefore, the channel serves to bridge the gap

Potential Costumer Description

Age Below 20 21 – 40 41 - 60 60 aboveGender AnyType of

Customers A B C

Workers Salary above 10,000.00

between the point of production and the point of consumption thereby creating

time, place and possession utilities.

Figure 4: Channels of Distribution

Technical Feasibility

The technical of a project feasibility study serves to establish whether or

not the project is technically feasible, and it also provides a basis of cost

estimating. This aspect aims to help the proponents performs efficiently and

effectively through various activities involve in the operation of the business.

In this aspect, the product will be described according to its structure,

characteristics, and its uses. The plant layouts serves as guide the normal

operation will be done. The direct labor requirement and schedule of the

operation will be done. The direct labor requirement and schedule of the

operation which are needed in the production of processes. The function and

purpose of machineries and equipment together with their corresponding prices

will be tackled. Finally the waste disposal of the product will be discussed.

A. Product (Services)

Sauna

SUPPLIER

HBC Watson

PRODUCER

HAYAHAI GARDEN &

SPA

DISTRIBUTOR

EMPLOYEEEND

CONSUMER

Nowadays, sauna is one of the highlights in a spa industry. Hayahai Garden and

Spa will offer a different kind of sauna experience that will let you feel heat in a

healthy manner. In the help of this services tension fades, muscles unwind and

mentally, we emerge relaxed, revived and ready for whatever the day may bring.

That’s why many people are into this kind of service.

Benefits of Sauna

Saunas relieve stress.

In our everyday life, stress is a part of our daily emotions. Stress reduction

is one of the benefits of sauna. Stress, on the other hand, may affect our

health. In fact it can cause some major diseases such as heart disease.

The heat from sauna relaxes body muscles, improves circulation and

stimulates the release of endorphins.

Saunas relax muscles and soothe aches/pains in both muscles and joints.

Under the high heat provided by a sauna, the body releases endorphins

(Endorphins are the body’s all-natural "feel good" chemical, and their

release provides a truly wonderful "after sauna glow.”). Endorphins can

have a mild, enjoyable "tranquilizing effect" and the ability to minimize the

pain of arthritis and muscle soreness other from, say, an intense physical

workout. Body temperature also rises from the heat of the sauna that

helps increase blood circulation. This increased blood flow in turn speeds

up the body’s natural healing process via soothing aches and pains. After

a busy workout day, sauna heat can relax your muscles by reducing

muscle tension.

Saunas flush toxins.

Many - if not most - of us do not actively sweat on a daily basis. Deep

sweating, however, has multiple proven health benefits. Benefits derived

from a deep sweat can be achieved via regular sauna bathing. Sweat

production is primarily designed to cool the body, and is composed of 99%

water. However, deep sweating in a sauna can help reduce levels of lead,

copper, zinc, nickel, mercury and chemical - which are all toxins

commonly absorbed just from interacting with our daily environments.

Sauna cleanses the skin.

Heat bathing is one of the oldest beauty and/or health strategies in terms

of cleansing one's skin. When the body begins to produce sweat via deep

sweating, the skin is then cleansed and dead skin cells are replaced -

keeping your skin in good working condition. Sweating rinses bacteria out

of the epidermal layer and sweat ducts. Cleansing of the pores has been

shown to improve the capillary circulation, while giving the skin a softer-

looking quality. By continually flushing body waste through individual cells,

one eventually brings back vitality, tone and a healthy glow to the skin.

Sauna usage is certainly not a cure for acne, but it can very often help -

due to the deep cleansing it provides from a deep sweat (that is, cleaning

the pores from the very inside out - instead of just cleaning the top of the

skin).

Saunas can induce a deeper sleep.

Research has shown that a deeper, more relaxed sleep can result from

sauna use. In addition to the release of endorphins, body temperatures,

which become elevated in the late evening, fall at bedtime. This slow,

relaxing decline in endorphins is key in facilitating sleep. Numerous sauna

bathers worldwide recall the deep sleep experiences that they feel after

bathing the the calming heat of a sauna.

Saunas bring about recreational and social benefits.

While the social benefit is rarely talked about, it's really actually quite

important. The sauna can be a private, personal area of relaxation and

solitude. However, it can just as easily be a relaxing environment for

socializing with family, friends and soon-to-be friends. The sauna room

environment is conducive to open, intimate and quiet conversation.

Saunas improve cardiovascular performance.

In the high temperatures of a traditional or infrared sauna, skin heats up

and core body temperature rises. In response to these increase heat

levels, the blood vessels near the skin dilate and "cardiac output"

increases. Medical research has told us that the heart rate can rise from

60-70 bpm (beats per minute) to 110-120 bpm in the sauna (140-150 with

more intensive bathing), and can often sink to below normal after the

cooling off stage. With regular sauna usage, we not only train our heart

muscles and improve the heart rate/cardiac output, but we also help the

body's regulatory system. Each time you rapidly change temperature (from

hot to cool or vice-versa), your heart rate increases by as much as 60%,

which is very comparable to the increase experienced during moderate

exercise..

Saunas burn calories.

Outlandish claims are often made by some sauna sellers to promote

saunas as an end-all weight loss tool. While some individuals may

experience high amounts of calorie burn at first - particularly those

individuals in poor shape to begin with - over the long term, saunas are

simply treated as one of many tools in our arsenal when it comes to burn

additional calories. The sweating process itself requires a notable amount

of energy. That energy is derived from the conversion of fat and

carbohydrates in a bodily process that burns up calories. As heart activity

increases and as these processes demand more oxygen, the body begins

to convert more calories into usable energy.

Saunas can help fight illness.

German sauna medical research shows that saunas were able to

significantly reduce the incidences of colds and influenza amongst

participants. As the body is exposed to the heat of a sauna and steam (in

the case of traditional saunas), it produces white blood cells more rapidly,

which in turn helps to fight illnesses and helps to kill viruses. In addition,

saunas can relieve the uncomfortable symptoms of sinus congestion from

colds or allergies - especially when used with steam. The steam vapor

action helps to clear up unwanted congestion and is a wonderful aspect of

the Finnish sauna experience.

Saunas just feel good.

A sauna not only feels good, it’s good for your body. Whether it’s the

physiological changes that occur during the warmth of a sauna, or if it’s

simply the time spent in the calming and still retreat of the sauna, every

seasoned sauna bather agrees - it feels wonderful! As we progress

through our stressful everyday lives, the sauna provides a pampering

retreat - where we can relax and restore body and soul. Sauna bathing

truly makes you "Feel Better”, "Look Better” and "Sleep Better”!

Foot Spa

A foot spa is a treatment to relax foot from everyday tiredness that might get in

walking or running. It is done by mostly females as a treatment that might help in

beautifying the physical look of one foot.

Benefits of Foot Spa Foot spa strengthens blood circulation, decreases blood pressure, improves

skin tones, relaxes muscles and stimulates the immune system

It beneficially affects the human psyche as well as, eliminating anxiety,

tension and depression

When relaxing in a foot spa, the brain releases endorphins that ease the pain,

which have an overall relaxing effect and induce a good mood

The foot spa and hydrotherapy benefits for rehabilitation after physical sport

and exercise. A hot soak along with a massage diminishes lactic acid that

can build up in the muscles during an activity, causing stiffness and pain

A foot spa also has a healing benefit - apart from other things, it helps in the

treatment of arthritis and rheumatic pain

The regular use of foot spa can even help avoid problems with insomnia.

Body Massage

Body Massage is the manipulation of superficial and deeper layers of muscle and

connective tissue using various techniques, to enhance function, aid in the

healing process, decrease muscle reflex activity, inhibit motor-neuron excitability,

promote relaxation and well-being, and as a recreational activity.

Benefits of Body Massage

Promotes deeper breathing

-deep breathing is vital to ensure that oxygen circulates easily throughout

your body, and encourages healing and growth in the process. Decreased

oxygen circulation results in headaches, tension aches, and random

muscle pain that can accumulate into a significant problem over time. By

enhancing your oxygen intake, you will naturally promote the release of

toxins and negative energy within the body.

Improves posture

-although massage should never be used as a replacement for a

chiropractic diagnosis, posture can slowly and naturally improve as the

spine and muscles around the spine become more flexible and supple.

Improved posture also aids in breathing and less tension throughout the

body.

Improves circulation

-an improvement in both blood and lymph circulation helps your body gain

strength and maximizes your energy level. Especially during the winter

months when circulation and metabolisms may be slower, massage can

help in removing toxins in the blood and encouraging fresh energy to

circulate easily. Efficient circulation also helps in muscle recovery, growth,

and promotes the natural healing process.

Enhances skin tone and skin health

-when using high-quality oils and creams, massage therapists can

significantly improve the tone and health of your skin after just a few

massage sessions. Skin cells are revitalized, moisturized, and replenished

naturally. Choose Vitamin E and natural grape seed oil bases for

maximum benefits.

Increases and promotes joint flexibility

-repetitive stress or overused joints can stunt growth and create problems

later. Massage helps to relieve stored tension and encourages flexibility of

the joints after rest. Any soreness experienced after a massage can be

indication that these are tension spots for you, and focusing on these

areas on your next massage will increase joint recovery. There are even

some special oil formulations to target joints, so do check with your

massage therapist beforehand to discuss options.

Enhances a calm mind

-encouraging a calm mind creates an avenue for creativity; it is during

these times that our minds are most conducive to creative thinking,

developing plans, organizing thoughts, and reducing stressful thoughts.

Massage can encourage this state of mind by relaxing the entire body.

Reduces anxiety

-as a natural deep relaxant, a successful massage can significantly reduce

anxiety. Usually, anxiety is stored in some key areas of the body; the

lower back, shoulders, abdomen, and neck. By relieving these areas of

tension, the mind can 'let go' of anxiety and experience a light, almost

freeing sensation.

Increases self-awareness

-the mind-body connection is often overlooked in today's fast-paced

society. From the minute you wake up, to the moment you go to bed, it is

easy to slip into 'mind-only' mode. When you re-establish the connection

with your body, you will experience greater ease of movement, a more

centered feeling, and an enhanced feeling of well-being.

Promotes mental alertness

-although a massage can bring you into a state of deep relaxation, this is

also a state of heightened mental alertness. Your mind is relaxed and

calm, but acutely aware and in this state, capable of solving even the

toughest problems!

Increases peace of mind

-with your ability to feel relaxed and naturally aware, peace of mind

becomes a necessary result. Peace of mind can be defined as a sense of

calm well-being and just feeling good naturally.

Satisfies need for human touch

-as human beings, we all need to feel the touch of another human being.

This can range from a simple hug, handshake, or a nurturing touch. A

massage encourages this type of connection and increases your

appreciation for this human need.

Body Scrub

Body Scrub involves the removal of the oldest dead skin cells on the skin's

outermost surface, and has been used for many years to help maintain healthy

skin. Body Scrub is involved in the process of all facials, during

microdermabrasion or chemical peels at medical spas. Body scrub can be

achieved through mechanical or chemical means.

Benefits of Body Scrub

Skin Glow

One of the biggest benefits to body scrubs, particularly the salt scrub, is

the glow that your skin is left with. There are different grades of salt, and

sea salt is the best option for a salt glow. The results for your body will

depend on the type and grade of salt you or your spa technician uses.

Exfoliating

It might seem like an obvious benefit to mention, but body scrubs are a

great way to exfoliate dead skin cells. This paves the way for fresh new

cells to regenerate and leaves you looking and feeling fabulous. Planning

a body scrub for exfoliating benefits is best in the fall and spring, right

before you start to tan and when your tan starts to fade. Of course,

exfoliating is great any time. If you have sensitive skin, it’s best to stick

with sugar or herbal body scrubs. Otherwise, salt scrubs are great for

exfoliation.

Increasing Flow

When you get a body scrub or give one to yourself, you are encouraging

the natural flow of circulation and bodily fluids within. For the best results a

professional should recommend and apply the body scrub that is

appropriate for you. When you have a professional massage therapist

apply the body scrub, a massage can be incorporated. This will increase

the correct circulation and flow benefits.

Improve Cellulite and Aging

There are some claims that certain types of body scrubs can actually

improve the look of aging and dimpled skin from cellulite. There is no

miracle cure, but it certainly won’t hurt to try a body scrub that is enhanced

with coffee. The coffee grounds are the best option for use on cellulite

prone areas of the body. These types of body scrubs are great if you love

the smell of coffee, too.

Relaxation

Treating yourself to a body scrub, especially when combined with a

massage, is just plain relaxing. Having a body scrub done by a

professional allows you to incur the benefit without the mess or stress.

Plus, when you have a choice of essential oils to add to your body scrub,

the effects are even more potent. Lavender is a great choice because of

its known relaxing qualities. There may be other scents that you find

relaxing, so be sure to ask if essential oils can be incorporated.

The Production Process

Steps in Sauna:

1. The customer should take a shower to remove bacteria that can

reproduce quickly in hot environments.

2. After taking a shower the staff will assist the customer and guide it to enter

the Sauna and stay in for approximately 10-15 minutes.

3. After 15 minutes the customer will take another cold shower, starting with

legs, arms and then step under the shower completely.

4. The customer will rest for at least 20 minutes before entering the sauna.

After 20 minutes the customer will re enter to sauna.

5. There will have three sauna cycles complete with walks, cold shower or

bath and rest.

6. Last the customer will wash the face since the pores are open.

Steps in Foot Spa:

1. The staff will set up the foot spa machine and add some scented bubble

bath, or oil for depend on the type of the skin and mix in.

2. The staff will soak the feet for five to ten minutes.

3. After soaking, dry the feet thoroughly using a clean soft towel.

4. Then rub off the skin to exfoliate with a towel. Rinse the rest off in the bowl

of water used for soaking in.

5. Rub the moisturizing lotion over each foot. This step will leave the feet

sweet smelling and soft.

Steps in Body Massage:1. The staff will prepare or create the right atmosphere.

2. Prepare the massage oil. Let the customer choose what essence of oil will

be used.

3. Have the customer take off his/her clothes and lie at the massage bed.

4. And the session will start.

5. The staff will start from the back down to the feet. Until it’s finish.

Steps in body scrub:1. The customer will step in the shower with a bottle of oil.

2. The staff will assist to cover the whole body to hairline to toes avoiding the

eye area with body scrub and massage gently.

3. When all the body is covered, the staff will start scrubbing with hands especially with elbow, knees, and heels.

4. The staff will turn on the shower and let the water wash the whole thing.

5. Only hands should be used.

C. Size of the production Area and Production Schedule

The Hayahai Garden and Spa operates 363 days a year and will be

operating in a mall with a 108 square meter unit. Table below shows the

maximum number of costumer per day and a year.

Table 15 Maximum Capacity of Services

SERVICES DURATION (MINUTES)

NO. OF PERSON ACCOMODATED/

Day

NO. OF AVAILABLE FACILITIES

Max. Capacity /

day

Massage 60 10 3 30Scrub 60 10 3 30Foot Spa 30 20 3 60Sauna 60 10 2 20  210 50 11 140

Table 16 Maximum Capacity of Customers

Maximum No. of Customers / Day Maximum No. of Customers / Year

140 customers per day 50,820 customers per year

Table 17 Minimum Capacity of Customers

Minimum No. of Customers / Day Minimum No. of Customers / Year

37 customers per day 13,431 customers per year

Table 18 Comparison of Maximum and Minimum Income for the First Year

CapacityNo. of

Customer/ day

No. of Customer/

Month

No. of Customer/

YearPrice Income

Max. 140 4,200 50,820 300.00 15,246,000.00

Min. 37 1,110 13,431 300.00 4,029,300.00

Hayahai Garden and Spa should have a net of 13,431 customers per

annum to be able to achieve its initial capital worth of four million pesos.

Schedule of Days in Operation

The Spa will operate seven (7) days a week from 10:00am- 9:00pm.

Though there are numerous Holidays, the spa will consider only two Holidays,

which are the Good Friday and Good Saturday.

Table 19 Computation for schedule of days in operation

Number of days in a year 365

Less: Unproductive days 2

Number of operating days a year 363

D. Machinery and Equipment

Following are the breakdown of machines and equipment needed in

Hayahai garden and Spa and its corresponding prices.

Table 20 Machinery and Equipment

Description QTY Price TotalSauna wood 1 Php125,000.00 Php125,000.00Heater 1 Php14,095.00 Php14,095.00Bubble Foot Spa Massage 4 Php1,699.00 Php6,796.00PC 1 Php21,100.00 Php21,100.00Washing Machines 1 Php33,990 Php33,990Ez shop Vacuum 1 Php4,999.00 Php4,999.00

Total 9 Php200,883.00 Php205,980.00

E. Production Layout

Figure 5: Layout Design 1

F. Structure

The Hayahai Garden and Spa is located in a mall unit at Centro Mall Brgy.

Pulo Cabuyao Laguna. All the liabilities within the structure are in the

responsibility of the Mall administration. Building improvements like drainage are

inclusive in the mall’s rental fee. The rental fee costs Php60, 000 monthly plus a

six months security deposit which is non-refundable but deductible before the

contract ends which lasts for five years.

Installation of machines, equipment and interior design are in the owner’s

liability and all of those are written in a contract. Table below shows the

breakdown of the total contract price agreed by the contractor and the owner of

Hayahai Garden and Spa.

Table 21 Contractors Fee

Contractor FeeParticulars Wage / Day Working Days Total Salary

Engineer Php429.00 Php60.00 Php25,740.00Interior Design Php429.00 Php60.00 Php25,740.00

Carpenter 1 Php327.50 Php60.00 Php19,650.00Carpenter 2 Php327.50 Php60.00 Php19,650.00

Total Php1,513.00 Php240.00 Php90,780.00Material Cost Php29,220.00

Total Contract Cost Agreement: Php120,000.00

G. Prospected sources and materials needed for services

Table 22 Consumable Cleaning Materials

Consumable Cleaning MaterialsDescription QTY PRICE TOTAL PRICE

Mr. Muscle 1 Php 130.55 Php 130.55 Scented Gel 5 Php 139.55 Php 697.75 Soap 10 Php 15.00 Php 150.00 Detergent Big 2 Php 97.00 Php 194.00 Shampoo Big 3 Php 69.00 Php 207.00 Tissue in Bundle 2 Php 110.00 Php 220.00

TOTAL Php 561.10 Php 1,599.30 *One month supply Sources: Wilcon Depot and Puregold

Table 23 Consumable Products

Products Needed in Services (Consumables)

DESCRIPTION QTY WEIGHT PRICE TOTAL PRICE CONSUMPTION/ PERSON

FOOT SPABody Recipe Foot Scrub 150 120ml Php 65.00 Php 9,750.00 12 personBody Recipe Foot Soak 150 120ml Php 65.00 Php 9,750.00 12 personBody Recipe Foot Lotion 150 120ml Php 65.00 Php 9,750.00 12 personCallus Remover 150 120ml Php 65.00 Php 9,750.00 12 personFoot File(wooden) 150   Php 45.00 Php 6,750.00 12 person/ foot

fileTOTAL   Php 305.00 Php 45,750.00  

BODY SCRUB

Body Recipe Papaya 12 250g Php 178.00 Php 2,136.00 25 person/ container

Body Recipe Calamnasi 12 250g Php 178.00 Php 2,136.00 25 person/ container

Body Recipe Milk 12 250g Php 178.00 Php 2,136.00 25 person/ container

Body Recipe Body Butter Lotion 12 250g Php 100.00 Php 1,200.00 25 person/ bottle

Towel Shower Cap 30   Php 59.00 Php 1,770.00 1 shower cup/ customer

Yoko Spa Salt (milk salt) 12 300g Php 68.00 Php 816.00 30 person/ container

Yoko Spa Salt (papaya) 12 300g Php 68.00 Php 816.00 30 person/ container

Yoko Spa Salt (cocoa butter) 12 300g Php 68.00 Php 816.00 30 person/ container

Yoko Spa Sugar Coffee Salt 12 300g Php 68.00 Php 816.00 30 person/ container

TOTAL     Php 965.00 Php 12,642.00  MASSAGE OILS

Body Recipe massage oil Peppermint 22 250ml Php 130.00 Php 2,860.00 30 person/ bottleBody Recipe massage oil Lavender 22 250ml Php 130.00 Php 2,860.00 30 person/ bottleBody Recipe massage oil Aloe Vera 22 250ml Php 130.00 Php 2,860.00 30 person/ bottleBody Recipe massage oil Grape Seeds 22 250ml Php 130.00 Php 2,860.00 30 person/ bottleBody Recipe Massage Oil Coconut 25 250ml Php 130.00 Php 3,250.00 30 person/ bottleTOTAL     Php 650.00 Php 14,690.00  

*One month supply

Sources: HBC

Table 24 Materials for Interior DesignSOURCES: ACE Hardware, Mang Tito’s Antique and Divisoria

Table 25 Non-consumable Cleaning Materials

CLEANING MATERIALS (NON-CONSUMABLE)DESCRIPTIONS QTY PRICE TOTAL

Scotch-brite mop 1 Php 249.75 Php 249.75

MATERIALS NEEDED FOR INTERIOR DESIGNDESCRIPTION QTY PRICE TOTAL

Front Desk 1 Php 1,800.00 Php 1,800.00 Nail in Box 2 Php 110.00 Php 220.00 Oval Mirror 1 Php 599.50 Php 599.50 Towel Shelf 1 Php 796.00 Php 796.00 Omni Outlet w/ Ground 1 Php 92.38 Php 92.38 Way Switch 6 Php 115.75 Php 694.50 Firefly Bulb Light 3 Php 169.00 Php 507.00 Chandelier 1 Php 2,247.50 Php 2,247.50 Shower Enclosure 3 Php 4,450.00 Php 13,350.00 Artifiacial Stone 1 Php 450.00 Php 450.00 Lights with Butterflies Design 2 Php 299.00 Php 598.00

Candles with Design 3 Php 120.00 Php 360.00 Plastic Flower 3 Php 40.00 Php 120.00 Leaves with Design 20 Php 7.00 Php 140.00 Bamboo Torches 2 Php 149.75 Php 299.50 Simple Flower Vase 2 Php 240.00 Php 480.00 Glass Vase 2 Php 130.00 Php 260.00 Paintings 3 Php 234.75 Php 704.25 Book Shelf 2 Php 248.00 Php 496.00 Wallpaper Design 4 Php 489.00 Php 1,956.00 Asian Inspire Design 6 Php 320.00 Php 1,920.00 Droplights with Wood 6 Php 499.00 Php 2,994.00 Footspa Chair 3 Php 2,500.00 Php 7,500.00 Mini Cabinet 12 Php 550.00 Php 6,600.00 Bed 6 Php 2,800.00 Php 16,800.00 Sala Set 1 Php 6,800.00 Php 6,800.00 Table 4 Php 1,500.00 Php 6,000.00 Cabinet 2 Php 2,999.00 Php 5,998.00 Chair 2 Php 700.00 Php 1,400.00 Total 105 Php 31,455.63 Php 82,182.63

Micro fiber wipes (3 pcs. Per pack)

2 Php 144.75 Php 289.50

Dustpan 1 Php 114.75 Php 114.75 Broom 1 Php 120.00 Php 120.00 Window Washer 1 Php 53.00 Php 53.00 Mop Wringer Bucket 1 Php 349.75 Php 349.75 Hamper 1 Php 850.00 Php 850.00 Hanger (12pcs) 2 Php 38.00 Php 76.00 Trash Bin Stainless 1 Php 749.00 Php 749.00 Floor Mat 3 Php 59.00 Php 177.00 Bed Sheet 10 Php 300.00 Php 3,000.00 Towel 15 Php 100.00 Php 1,500.00 Leather foam 6 Php 1,500.00 Php 9,000.00 Towel shower cap 20 Php 40.00 Php 800.00 Fire Extinguisher 2 Php 1,608.00 Php 3,216.00

TOTAL 67 Php 6,276.00 Php 20,544.75 SOURCES: Globe Master, Wilcon Depot, Divisoria and Uratex

Table 26 Office Supplies

OFFICE SUPPLIESSupplies QTY Price TotalBallpen 4 Php9.75 Php39.00

Pad Paper 2 Php15.00 Php30.00Record Book 2 Php39.00 Php78.00

Pencils 4 Php8.00 Php32.00Stapler 2 Php45.00 Php90.00Glue 2 Php33.00 Php66.00

Scissor 2 Php28.00 Php56.00Clip in Box 2 Php25.00 Php50.00

Folder 4 Php7.00 Php28.00Calculator 2 Php89.00 Php178.00

Garbage Bag 3 Php57.00 Php171.00Total 29 Php355.75 Php818.00

*One month supply SOURCES: Pandayan Bookstore and Puregold

G. Utilities

The space that the researcher will lease has already installed electricity and

water. However, the electric and water are not part of the lease.

Table 27 Utilities

UTILITIESMonthly

Consumption Cost

Yearly Consumption

CostElectricity Php10,000.00 Php 120,000.00Water Php3,000.00 Php 36,000.00Aircon Php1,296.00 Php 15,552.00Internet/ Telephone Php1,500.00

Php 18,000.00

Php15,796.00 Php189,552.00

I. Waste Disposal

Dumping waste would create problems in the community but for the case of

Hayahai Garden and Spa, waste disposal is not a problem because there would

be only minor waste product especially for plastic bottles.

The only wastes in the production are the boxes that would contain products

of the spa. The other waste will be put in the garbage bag and will be collected

by the garbage collector.

Management Study

This aspect presents the effectiveness of a management in the business as

well as it determines the important of good relationship among the employees

and employer. The manager is primarily responsible for the proper coordination

of all activities within the organization in its different department, division and

sections or unit. All mangers must plan the work that fall within the scope of their

duties and responsibilities. Effective management of any business in the

implementation of the entire plans is the basis of successful leadership. The

success or failure of the organization merely lies on the quality of management.

A. Form of Business Organization

The form of business organization of the proposed business will be a

partnership. Partnership is an association two or more persons who bind

themselves to contribute money, property and industry to a common fund with

the intention of dividing profits among themselves.

Advantages of Partnership:

Partnership is relatively easy to establish.

With more than one owner, the ability to raise funds may increase both

because two or more partners may be able to contribute more fund and

their borrowing capacity may be greater.

Combines special skills, expertise and experience of the partner

Offers relative freedom and flexibility of action in decision making.

Disadvantages:

Easily dissolved and thus unstable compared to a corporation.

Mutual agency and unlimited liability may create personal obligations to

partner

Less effective than a corporation in raising large amount of capital.

B. The Business Organization

Some people says that the room reflects the attitude or the mood of the

working place, that is why the investors choose to conceptualize the spa to

related to garden or nature to give a feel of ease or relaxation to the clients.

There should be a work flow in the working area to maximize the place and at the

same time to minimize the disturbance in one’s work. Below is a list of the

Qualification, Duties and responsibilities of worker.

Responsibility Matrix

Position

Owner/Manager

Duties and Responsibilities:

Performs the basic managerial functions like planning, organizing,

staffing, leading and controlling the business operations.

Responsible for allocation of human, monetary, materials, and other

company’s resources.

In charge of major decisions in the establishment or company.

Responsible for giving out establishment or company policies and

regulation.

Signs the legal transaction of the company.

Physical Therapist

Duties and Responsibilities:

Provide the comfort and relaxation to the clients.

Provide the highest quality of services.

Apply finger and hand pressure to specific points of the body.

Confer with clients about their medical histories and any problems with

stress and/or pain in order to determine whether massage would be

helpful.

Provide clients with guidance and information about techniques for

postural improvement, and stretching, strengthening, relaxation and

rehabilitative exercises.

Job Qualification

Female

Single or Married

At least 22 years old

Must be graduated of Physical Therapist

Certified Therapist with License

Must have at least 2-3years working experience.

Receptionist

Duties and Responsibilities: Accommodate clients.

Handle bookings by phone, e-mail, or face-to-face.

Preparing bills and taking payments.

Answering questions about what the Spa offers and the surrounding area.

Dealing with complaints or problems.

In charge on daily sales and inventories.

Job Qualification

Female

Single or Married

At least 18 years old

Have pleasant personality

Ability to understand and follow specific oral and written instructions.

Must be graduated of any business related course

Helper

Duties and Responsibilities;

In charge in arranging of new furniture and equipment.

Inspect meters for unauthorized connections, defects.

In charge of maintaining Cleanliness, sanitation and laundry.

Job Qualification

Male

Single or Married

At least 18 years old

Some experience in performing heavy manual work.

Ability to understand and follow specific oral and written

instructions.

At least College Level

Reflexologist

Duties and Responsibilities:

Have the proper skills to treat reflex zone in body to keep stressed tissues and nerves tension free.

Reports to Physical Therapist

Responsible for body Massage

They also have to provide consultation services to clients.

Job Qualification

Female

Single or Married

At least 20 years old

Have pleasant personality

Ability to understand and follow specific oral and written

instructions.

Graduated a vocational course in Reflexology

Beautician

Duties and Responsibilities:

Responsible for grooming of the client.

In charge Manicures and pedicures of client.

Responsible for body Scrubbing.

They also have to provide consultation services to clients.

Job Qualification

Female

Single or Married

At least 20 years old

Have pleasant personality

Ability to understand and follow specific oral and written

instructions.

Graduated vocational course in Cosmetology

C. Employee Salaries and Benefits

Salaries of the staff shall be distributed twice a month, every fifteenth and

at the end of the month, but if they fall on Sunday or holidays, salary distribution

shall be made on the last working day before the fifteenth or the end of the

month.

A regular employee shall be eligible for pay increase as determined by the

company based on the employee’s work ability, diligence, obedience,

attendance, seniority, general performance, and industry trends as well as the

company’s paying capacity and provisions of law.

The employee will be registered with the following government agencies who

give benefits to employees:

1. Social Security System

2. Phil heath

3. Pag-ibig Fund

In addition to that, it will also give the employee the mandatory 13th month

pay.

Table 28 Salaries

Position No.New

minimum wage rate

Working Days Monthly Salary Annual Salary Annual Deduction

Physical Therapist 1 Php429.00 26 Php12,870.00 Php154,440.00 Php8,667.60

Reflexologist 1 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Reflexologist 2 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Reflexologist 3 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Receptionist 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Beautician 1 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Beautician 2 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Beautician 3 1 Php327.50 26 Php9,825.00 Php117,900.00 Php6,105.60 Helper/Utility 1 Php321.35 26 Php8,355.00 Php100,260.00 Php6,105.60

TOTAL 9 Php3,042.85 234 Php90,000.00 Php1,080,000.00 Php57,512.40

Table 29 Deduction

Deductions for Employee per MonthEmployee SSS PHIC HDMFRegular Php308.80 Php100.00 Php100.00Physical Therapist Php472.30 Php150.00 Php100.00

D. The Step in Business Registration

Registered the business name with the Bureau of Domestic Trade.

Have the partnership agreement (articles of co-partnership) notarized and

then registered with the SEC.

Obtain a tax account number for the partnership from the BIR.

Obtain the municipal licenses from the local government and pay taxes

and fees.

Obtain the value-added tax (VAT) Identification number.

Register books of accounts (journals and general ledger) and business

forms to be used (sales invoice, cash sales invoice, etc.) with the BIR.

Government Requirements

1. Municipality Permit

o Application of registration

o Registration copies of articles of Co-Partnership

o Sanitary Permits

o Fire Department Permit

2. Securities and Exchange Commission (SEC)

o Filling of articles of Partnership

3. Bureau of Internal Revenue Requirements

o Security tax account number of business

o Registration of the business name

The Project time Table

Pre-Operating Period

Prior to the actual business operation, it is part of the process to fulfill the

necessary pre-operating requirements and responsibilities such as hiring and

training of persons or workers, providing different equipment and materials

needed in accomplishing documents. The form of organization and the initial

capital agreed upon. During the operating period, many activities and decision

have to be made. They are as follows:

Conducting a feasibility study (Market Survey)

Aspiring entrepreneurs may have an idea about the type of product or

service that they would like to make. This can come from seeing others

successfully producing a product/service and wanting to copy them or from

talking to friends and family members about products that they think they could

make. However, an idea for a business is not a sufficient reason to begin

production straight away, without having thought clearly about the different

aspects involved in actually running the business. Too often, people invest

money in a business only to find out later that there is insufficient demand for the

product or that it is not the type that customers want to buy. To reduce this risk of

failure and losing money, potential producers should go through the different

aspects of running their business in discussions with friends and advisers before

they commit funds or try to obtain a loan. This process is known as doing

a feasibility study and when the results are written down, the document is known

as a business plan.

Conducting a feasibility study need not be difficult or expensive, but the

most important aspects should all be taken into account to ensure that potential

problems are addressed. There is a saying, hindsight is 20-20. Smart business

people, however, do not rely on hindsight but on foresight. A feasibility study is

more of a scientific foresight, a way of reducing guessing as to what things

should be considered. A feasibility study is a detailed analysis of a company and

its operations that is conducted in order to predict the results of a specific future

course of action. Small business owners may find it helpful to conduct a

feasibility study whenever they anticipate making an important strategic decision.

In this step it involves gathering information about what people think

regarding the new services offered by the Hayahai Garden and Spa. It also

identifies the business own potential growth in the chosen target market. It helps

the proponent to understand what types of service people want and what price to

be paid. The proponent conducted surveys through personal interview to assess

consumer preferences and gathered data on competitors and examined its

prices, strategies or method of marketing and service.

Accumulation of Capital

Accumulation of capital is the gathering or amassing of objects of value as

judged by one's perceived reproductive interest group; the increase in wealth

through concentration; or the creation of wealth. Capital is money or a financial

asset invested for the purpose of making more money (whether in the form of

profit, rent, interest, royalties, capital gain or some other kind of return).  This

activity forms the basis of the economic system of capitalism, where economic

activity is structured around the accumulation of capital (investment in order to

realize a financial profit). Capital generally refers to financial wealth especially

that used to start or maintain a business. In purchasing raw materials, machine,

equipment and other expenses needed in the production, capital should be

properly budgeted. The capital of the proposed business will be coming from the

proponent’s family capital investment

Choosing Suppliers of Services offered

Adequacy in supplies is essential in menu planning in terms of cost and

efficiency in service. The business mainly relies on the number of supplies they

have to be able to serve the customers. Available stocks should be checked

before buying or ordering stocks to avoid wastage of materials and money. In

choosing suppliers of raw materials, its best to provide them with a clear brief

summarizing what you require how frequently you’ll require it and what level of

business you hope to place. The quality of their product service may be most

important, while their location may not matter. Price is important but it should be

the only reason you choose supplier lower price may reflect poorer quality of

goods and the services which in the long run may not be the cost effective

option. Be confident that your supplier can make a sufficient margin at the price

quoted for the business to be commercially viable.

Acquisition of the Place

Every entrepreneur is faced with the problem of deciding the best site

location of his/her shop. An ideal location is one where the cost of the product is

kept in minimum price, with a large market share, the least risk and the maximum

social gain. It is the place of maximum net advantage or which gives lowest cost

of service. Thus, the proponent chose to locate the proposed business in Centro

Mall, Cabuyao City. The cost of the rent of the place inside the mall must also be

considered to minimize the expenses. The vicinity is surrounded by main

establishments which people usually go like the schools, church, company and

villages. The proponent decided to lease a space inside the mall for some

reasons like security and the cost of construction of building their own shop

outside the mall, in which is more expensive than renting a unit. The investors

also conducted a population study in whether the place will be patronize by the

local people and the number of mall attendants which will be a possible

costumer.

Construction and Design

The length of time given for Construction and Design of the mall unit is

three months. The first two weeks is for making the design and one week for

purchasing. The remaining one and half month is allotted for the construction and

the last week is reserve for any changes and derivation to the clinic. The design

of the shop is based on garden for it represents our nature which is relaxing to

see.

Registration and Licensing

The business name must be registered with the Department of Trade and

Industry (DTI) to ensure that the business does not have similar names and that

it is running legally. The business owner should get a baranggay business

clearance first to the Baranggay Hall to notify and be registered in one of the

legal establishments in sub-local unit area. Municipal license and Mayor’s

business permit must be secured from the municipality where it is situated. For

taxing purposes, it must register with the Bureau of Internal Revenue (BIR) for

the safety and security of the worker it should be registered to the Social Security

Service (SSS) and Department of Labor and Employment (DOLE). For the last

part the worker should pass their member data information of Phil health to their

managers and the company will be the one to put funds on their account. It is

important that a business is registered and have licenses to operate without any

complications.

Acquisition of Machinery and Equipment

In every business, acquisition of the right number and quality of machinery

and equipment makes it more efficient and effectives. To come up with good

quality products, the equipment should be considered. Most of the jobs or service

nowadays requires machines to be done or executed especially to a business

like spa and facial center that requires machine to be able to give the service that

the consumers want to avail. For example how can a groomer perform her job

like facial scrubbing if there’s no facial scrub machine to be use? Hayahai garden

and spa spend time on choosing and evaluating possible machines that can be

reliable not only for a short period of time but the investors make sure that it will

last a years and at the same time choosing machines that will not affect much the

environment and can be bought in fair price.

Hiring and Training of Employees

The key to a person’s worth is integrity, honest, intelligence, the ability to

communicate, and the ability and willingness to learn. Technical skills are

important, but without the key ingredients, the technical skills of the applicant

may be irrelevant. Employees must be carefully screened in order to attain the

goals and objectives of the business.

Hiring of employees will be done through competitive examinations and

interviews. Those who qualified should undergo training on the specific job he

has to perform. The skill of the worker must comply with the needs of the

customer while giving efficient services, better relation and customer interaction.

To make sure that they match for the job they should provide certificates and

licenses. Through advertisements like posting tarpaulins and giving flyers the

people who seek for a job will be informed that the company has a vacancy.

Figure 6 Steps in Hiring Personnel

Interviews regarding the business they are applying for

Call the person who passes on the Interview for Orientation

Figure 7 Training Programs

Requirements to be submitted (SSS) E1 Form

Transcript of Record (TOR)

Phil Health No.

Pag-ibig No.

Tin No.

NBI Clearance

Police Clearance

Barangay Clearance

Trainings for the personnel with enough experience

Call the person who pass on training for Evaluation or

Deliberation of qualified applicant it is where the management chose and hire the applicant that meets

the standard

For Submission of Requirements

Simulation of actual job to be performed on the volunteers like massaging and body treatment this will be done repeatedly for

one week

Cedula

COE

Advertisement Campaign

Promoting the proposed business would include the following distribution

of pamphlets containing details such as business address, the name of the

establishment and the services it offer and also includes strategies such as

putting up promos or discount to be given to the customer and offered while in

the first week or it depends in the managements budget or strategy.

Forms of Business Organization

The intended organizational set-up for this project is sole proprietorships. This is

preferred by owner, for him to closely supervise the business.

Figure 8 Organizational Chart

Owner / Manager

Physical Therapist

Receptionist

Reflexologist 1

Reflexologist 2

Reflexologist 3

Beautician 1 Beautician 2 Beautician 3 Helper

OPERATING PERIOD

The Hayahai Garden and Spa is operating 11 hours a day from 10 am to

9pm same as the mall hours and will only be close in some special holidays.

Below is a list of the working assignments and designation for each and every

worker.

1. Receptionist/cashier – Front desk- is responsible in greeting clients and

also in book keeping client’s data record, and receiving telephone

conversation and payments.

2. Manager- side desk- is the one who supervise the whole flow of the

business.

3. Therapist – no designated area – manage divide the work load of the

reflexologies while doing her job as therapist.

4. Reflexologies- massage room – the one who render the service that the

costumer wants to avail like body massage and etc.

5. Utility/housekeeping – no designated area but in charge of the sanitation

and maintenance of equipments, machine and working areas.

6. Beauticians –central therapy room- is the one who performs different kinds

of body scrub to the consumers.

Table 30 Schedule for the First Month of Opening

  Monday Tuesday Wednesday Thursday Friday Saturday SundayOPENING          

Reflexologies 110:00 to

7:00 RD 10:00 to 7:00

10:00 to 7:00

10:00 to 7:00

10:00 to 7:00

10:00 to 7:00

Reciptionist10:00 to

7:0010:00 to

7:00 RD 10:00 to 7:00

10:00 to 7:00

10:00 to 7:00

10:00 to 7:00

Beautician 110:00 to

7:0010:00 to

7:0010:00 to

7:0010:00 to

7:0010:00 to

7:00 RD 10:00 to 7:00

Physical Therapist

10:00 to 7:00

10:00 to 7:00

10:00 to 7:00

10:00 to 7:00 RD 10:00 to

7:0010:00 to

7:00               

Reflexologies 212:00 to

9:0012:00 to

9:00 RD 12:00 to 9:00 12:00 to 9:00

12:00 to 9:00

12:00 to 9:00

Beautician 212:00 to

9:00 RD 12:00 to 9:00 12:00 to 9:00 12:00 to

9:0012:00 to

9:0012:00 to

9:00

Beautician 312:00 to

9:0012:00 to

9:0012:00 to

9:00 RD 12:00 to 9:00

12:00 to 9:00

12:00 to 9:00

Reflexologies 312:00 to

9:0012:00 to

9:0012:00 to

9:00 12:00 to 9:00 12:00 to 9:00 RD 12:00 to

9:00

Helper12:00 to

9:0012:00 to

9:0012:00 to

9:00 12:00 to 9:00 12:00 to 9:00

12:00 to 9:00 RD

Financial Study

This Chapter will able to identify the total cost invested for the proposed

business projection in five years, source of income invested, the initial capital

requirements, the projected income statements for five years with cash flows and

balance sheet needed for financial statement and the pertinent financial ratio for

the next five years.

Total Project Cost

Statement of Project Cost

Source of Funds

Each partner agreed to contribute the total project cost of the proposed

business. They are to share the amount of Php 900 000.00 equally or are going

to contribute Php 300 000.00 each from their own personal savings account.

Fixed Assets Requirements

Furniture’s and Fixtures 114,944.81 Office Equipment 290,060.00 Leasehold Improvements 50,160.25

Total Fixed Assets Requirement’s 455,165.06

Pre-Operating Cost

Prepaid Rent 54,000.00 Security Deposit 54,000.00 Advertising Expense 10,000.00 Business Permit & Licenses 15,657.00

Operating ExpenseLabor (3 months) 270,000.00 Office Supplies 1,671.75 Cleaning Supplies 1,419.25

Total Working Capital 406,748.00

Contingency Fund 38,086.94

Total Project Cost 900,000.00

Financial and Other Assumption

The partners will equally share the capital as well as the profits and

losses.

Project cost considers computation for two months as working capital.

Contingency fund is set up in the project cost to prepare for unforeseen

expenditures.

Salaries will increase 5% per year.

Utilities are Php 199,404.84 per year and will increase by 5% each year.

Communication is estimated at Php 59,988 annually and has 5%

increases each year.

Business permits and licenses will increase by 5% each year.

Advertising expense is accounted for promotional materials such as

brochures, pamphlet and tarpaulins.

Purchases of office and cleaning supplies will increase by 5% each year.

Supplies used in first year are 75% of the office and cleaning supplies.

Unused supplies are 25% of the office and cleaning supplies available

Income tax expense is computed at the rate of 30% for the five year

assumption.

Straight line method of depreciation is used, ignoring salvage values.

All purchases and sales are inclusive of 12% VAT.

Due to SSS, Philhealth, Pag-ibig and taxes withheld are paid the

following month.

The site is agreed to be rented with 1year advanced payment.

After five years, the partnership will be changed to corporation.

Financial Statement

It is a summary report that shows how a firm has used the funds entrusted to it

by its capital contributors and lenders, and what is its current financial position.

The three basic financial statements are the (1) balance sheet, which shows

firm's assets, liabilities, and net worth on a stated date; (2) income statement

(also called profit & loss account), which shows how the net income of the firm is

arrived at over a stated period, and (3) cash flow statement, which shows the

inflows and outflows of cash caused by the firm's activities during a stated period.

Income Statement

Income Statement is a summary of a management's performance as reflected in

the profitability (or lack of it) of an organization over a certain period. It itemizes

the revenues and expenses of past that led to the current profit or loss, and

indicates what may be done to improve the results.

In contrast to a balance sheet, an income statement depicts what happened over

a month, quarter, or year. It is based on a fundamental accounting equation

(Income = Revenue - Expenses) and shows the rate at which the owners’ equity

is changing for better or worse. Along with balance sheet and cash flow

statement it forms the basic set of financial information required to manage an

organization.

Balance Sheet

It is a financial statement that summarizes a company's assets, liabilities and

shareholders' equity at a specific point in time. These three balance sheet

segments give investors an idea as to what the company owns and owes, as well

as the amount invested by the shareholders.

Statement of Cash Flows

The Statement of Cash Flows provides information about the cash receipts and

cash payments of an entity during a period. It is a formal statement that classifies

cash receipts (inflows) and cash payments (outflows) into operating, investing

and financing activities. This statement shows the net increase or decrease in

cash during the period and the cash balance at the end of the period; it also

helps project the future net cash flows of the entity. The discussion below gives

an overview of some important concepts involved in the preparation of the cash

flow statement.

Changes in Partner’s equity

A statement of changes in equity can be explained as a statement that can

changes in equity for corporation features be created for partnerships, sole

proprietorships, or corporations. The key purpose of this statement is to

summarize the activity in take equity accounts for a certain period. Sole

proprietorships and partnerships follow a similar format for their statements of

changes in equity. On the contrary, the statement of changes in equity for a

corporation features a slightly different format.

Schedule 5.2 Projected Statements of Financial Performance

Notes 2014 2015 2016 2017 2018

RevenuesService Income 5 2,281,000.00 2,395,050.00 2,514,802.50 2,640,542.63 2,772,569.76

Output VAT 5,6 244,392.86 256,612.50 269,443.13 282,915.28 297,061.05 Net Receipts 2,036,607.14 2,138,437.50 2,245,359.38 2,357,627.35 2,475,508.71

Cost of Services 6Salaries & Wages 693,000.00 727,650.00 764,032.50 802,234.13 842,345.84 13th Month pay 55,000.00 57,750.00 60,637.50 63,669.38 66,852.85 SSS, Pag-ibig, Philhealth 53,744.40 56,431.62 59,253.20 62,215.86 65,326.65 Employee Benefits 13,750.00 14,437.50 15,159.38 15,917.35 16,713.22

Total Cost of Service 815,494.40 856,269.12 899,082.58 944,036.72 991,238.56

Gross Income 1,221,112.74 1,282,168.38 1,346,276.80 1,413,590.63 1,484,270.15

Corporate Events OrganizerPROJECTED STATEMENTS OF FINANCIAL PERFORMANCE

HAYAHAI GARDEN AND SPA

Operating Expenses 7Salaries and Wages 300,000.00 315,000.00 330,750.00 347,287.50 364,651.88 SSS, Pag-ibig, Philhealth 17,280.00 18,144.00 19,051.20 20,003.76 21,003.95 13th Month Pay 25,000.00 26,250.00 27,562.50 28,940.63 30,387.66 Employee Benefits 5,000.00 5,250.00 5,512.50 5,788.13 6,077.54 Light & Water 199,404.84 209,375.08 219,843.83 230,836.02 242,377.82 Communication 59,988.00 62,987.40 66,136.77 69,443.61 72,915.79 Offi ce Supplies Expense 940.36 987.38 1,036.75 1,088.58 1,143.00 Cleaning Supplies Expense 1,064.44 1,117.66 1,173.54 1,232.22 1,293.83 Advertising Expense 10,000.00 10,500.00 11,025.00 11,576.25 12,155.06 Professional Fee 15,000.00 15,000.00 20,000.00 20,000.00 25,000.00 Business Licenses Expense 15,657.00 16,439.85 17,261.84 18,124.93 19,031.18 Depreciation Expense 55,706.12 55,706.12 55,706.12 55,706.12 55,706.12

Total Operating Expenses 705,040.76 736,757.49 775,060.05 810,027.75 851,743.83

Net Operating Income 516,071.98 545,410.89 571,216.74 603,562.88 632,526.32 Provision for Income Tax 8 154,821.59 163,623.27 171,365.02 181,068.86 189,757.90 Net Income 361,250.39 381,787.62 399,851.72 422,494.01 442,768.42 See Notes to Financial Statements

Schedule 5.3 Projected Statements of Financial Position

Notes 2014 2015 2016 2017 2018

ASSETSCurrent Assets

Cash 1 747,088.02 912,051.76 1,058,670.78 1,182,229.55 1,293,400.09 Supplies 2 689.96 931.44 1,067.71 1,185.26 1,306.48 Total Current Assets 747,777.97 912,983.20 1,059,738.49 1,183,414.81 1,294,706.57

Noncurrent AssetsSecurity Deposit 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Property and Equipment, net 3 356,065.56 300,359.44 244,653.32 188,947.19 133,241.07 Total Noncurrent Assets 386,065.56 330,359.44 274,653.32 218,947.19 163,241.07

TOTAL ASSETS 1,133,843.54 1,243,342.64 1,334,391.80 1,402,362.00 1,457,947.64

LIABILITIES AND EQUITYLIABILITIESCurrent Liabilities

Accrued Utilities Expense 21,616.07 22,696.87 23,831.71 25,023.29 26,274.46 Accrued Professional Fee 15,000.00 15,000.00 20,000.00 20,000.00 25,000.00 SSS/Phili/HDMF Payable 9,423.00 10,488.00 11,046.00 11,304.00 11,662.00

Corporate Events OrganizerPROJECTED STATEMENTS OF FINANCIAL POSITION

HAYAHAI GARDEN AND SPA

PARTNERS' EQUITYBanca, Capital 340,416.80 374,346.00 400,963.24 421,794.58 436,050.72

La Madrid, Capital 340,416.80 374,346.00 400,963.24 421,794.58 436,050.72 Pulvera, Capital 340,416.80 374,346.00 400,963.24 421,794.58 436,050.72

Total Partners' Equity 4 1,021,250.40 1,123,038.01 1,202,889.73 1,265,383.74 1,308,152.16

TOTAL LIABILITIES AND PARTNERS' EQUITY 1,133,843.54 1,243,342.64 1,334,391.80 1,402,362.00 1,457,947.63

VAT Payable 19,586.91 21,078.28 22,132.23 23,238.85 24,400.79 Withholding Tax - Expanded 803.57 843.75 885.94 930.23 976.75 Withholding Tax - Compensation 7,458.20 9,291.92 10,764.94 11,214.68 14,042.00 Income Taxes Payable 8 38,705.40 40,905.82 42,841.26 45,267.22 47,439.47

Total Current Liabilities 112,593.15 120,304.63 131,502.08 136,978.27 149,795.47

TOTAL LIABILITIES 112,593.15 120,304.63 131,502.08 136,978.27 149,795.47

PARTNERS' EQUITYCabillo, Capital 170,208.40 187,173.00 200,481.62 210,897.29 218,025.36 Reyes, Capital 170,208.40 187,173.00 200,481.62 210,897.29 218,025.36 Diamante, Capital 170,208.40 187,173.00 200,481.62 210,897.29 218,025.36 Kalacas, Capital 170,208.40 187,173.00 200,481.62 210,897.29 218,025.36 Ocampo, Capital 170,208.40 187,173.00 200,481.62 210,897.29 218,025.36 Villanueva, Capital 170,208.40 187,173.00 200,481.62 210,897.29 218,025.36 Total Partners' Equity 4 1,021,250.39 1,123,038.01 1,202,889.73 1,265,383.74 1,308,152.16

TOTAL LIABILITIES AND PARTNERS' EQUITY 1,133,843.54 1,243,342.64 1,334,391.80 1,402,362.00 1,457,947.63 See Notes to Financial Statements

See notes to Financial Statement

Schedule 5.4 Projected Statements of Cash Flows

Notes 2014 2015 2016 2017 2018Cash Flow From Operating ActivitiesNet Income before Tax 516,071.98 545,410.89 571,216.74 603,562.88 632,526.32 Adjustments for:

Depreciation 3 55,706.12 55,706.12 55,706.12 55,706.12 55,706.12 Operating Income Before Working Capital Changes 571,778.10 601,117.01 626,922.87 659,269.00 688,232.44 (Increase) Decrease in:

Supplies 2 (689.96) (241.48) (136.27) (117.55) (121.22) Security Deposit (30,000.00) - - - -

Increase (Decrease) in:Accrued Utilities Expense 21,616.07 1,080.80 1,134.84 1,191.58 1,251.17 Accrued Professional Fee 15,000.00 - 5,000.00 - 5,000.00 SSS/Phili/HDMF Payable 9,423.00 1,065.00 558.00 258.00 358.00 VAT Payable 19,586.91 1,491.36 1,053.96 1,106.61 1,161.94 Withholding Tax - Expanded 803.57 40.18 42.19 44.30 46.51 Withholding Tax - Compensation 7,458.20 1,833.72 1,473.02 449.74 2,827.32 Payment of Income Taxes 8 (116,116.20) (161,422.85) (169,429.58) (178,642.90) (187,585.64) Net Cash provided by Operating Activities 498,859.71 444,963.74 466,619.02 483,558.77 511,170.53

Cash Flow from Investing ActivitiesPurchase of Fixed Assets, net of VAT 3 (411,771.69) - - - - Net Cash Flow provided by Investing Activities (411,771.69) - - - -

Cash Flow from Financing ActivitiesContribution from Partners 900,000.00 - - - - Withdrawal by Partners (240,000.00) (280,000.00) (320,000.00) (360,000.00) (400,000.00) Net Cash Flow provided by Financing Activities 660,000.00 (280,000.00) (320,000.00) (360,000.00) (400,000.00)

Net Cash Flow 747,088.02 164,963.74 146,619.02 123,558.77 111,170.53 Add: Cash Balance, Beginning 1 - 747,088.02 912,051.76 1,058,670.78 1,182,229.55 Cash Balance, Ending 747,088.02 912,051.76 1,058,670.78 1,182,229.55 1,293,400.09 See Notes to Financial Statements

Corporate Events OrganizerPROJECTED STATEMENTS OF CASH FLOWS

HAYAHAI GARDEN AND SPA

2014 2015 2016 2017 2018

Partners' EquityPartners' Equity, beginning - 1,021,250.39 1,123,038.01 1,202,889.73 1,265,383.74 Partners' Contribution 900,000.00 - - - - Net Income (Loss) 361,250.39 381,787.62 399,851.72 422,494.01 442,768.42 Partners' Equity before Withdrawals 1,261,250.39 1,403,038.01 1,522,889.73 1,625,383.74 1,708,152.16 Less: Withdrawals 240,000.00 280,000.00 320,000.00 360,000.00 400,000.00 Partners' Equity, Ending 1,021,250.39 1,123,038.01 1,202,889.73 1,265,383.74 1,308,152.16

See Notes to Financial Statements

Schedule 5.5 Projected Statements of Changes in Partners' Equity

Corporate Events OrganizerPROJECTED STATEMENTS OF CHANGES IN PARTNERS' EQUITY

HAYAHAI GARDEN AND SPA

Financial Ratio Analysis

Financial Ratio Analysis refers to the assessment of a business to deal with the planning, budgeting, monitoring,

forecasting and improving of all financial details within an organization. It provides an indication of the firm’s financial

strengths and weaknesses and should generally be used in conjunction with other evaluation techniques.

Schedule 5.6 Annual Cash Returns

  2014 2015 2016 2017 2018

Net Income 361,250.39 381,787.62 399,851.72 422,494.01 442,768.12

Depreciation 55,706.12 55,706.12 55,706.12 55,706.12 55,706.12

Net Annual Cash Returns 416,956.51 437,493.74 455,557.84 478,200.13 498,474.24

Annual cash return are the expected returns of the project in the form of cash flow, wherein the depreciation is added

back to the net income because it is non-cash item.

The importance of this evaluation is to identify how long the proposed business will take to recover its investment. The

payback period of a given investment or project is an important determinant of whether to undertake the position or project, as

longer payback periods are typically not desirable for investment positions.

Schedule 5.7 Payback Period

Cash

Returns Recovered Years

2014 416,956.51 416,956.51 1

2015 437,493.74 437,493.74 1

2016 455,557.84 45,549.75 .10

2017 478,200.13 0

2018 498,474.54 0

Initial Investment 900,000 2.10

Average Investment

YearAnnual

Depreciation Investment Average Investmet900,000.00

2014 55,706.12 844,293.88 872,146.96 2015 55,706.12 788,587.76 816,440.82 2016 55,706.12 732,881.64 760,734.70 2017 55,706.12 677,175.52 705,028.58 2018 55,706.12 621,469.40 649,322.46

3,803,673.52 Years 5

Average Investment 760,734.70

Average Rate of Return

2014 2015 2016 2017 2018Net Income 361,250.39 381,787.62 399,851.72 422,494.01 442,768.12 Average Investment 872,146.96 816,440.82 760,734.70 705,028.58 649,322.46 Average Rate of Return 41.42% 46.76% 52.56% 59.93% 68.19%

Average rate of return is computed in order to determine the average percentage that a project receives from the

investment.

Schedule 5.8 Average Investment

Schedule 5.9 Average Rate of Return

Financial Ratios Indicating Short-term Solvency

Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets 747777.97 912983.2 1059738.5 1183414.8 1294706.6

Current Liabilities 112593.15 120304.63 131502.08 136978.27 149795.47

Current Ratio 6.64 7.59 8.06 8.64 8.64

Current Assets 747777.97 912938.2 1059738.5 1183414.8 1294706.6

Current Liabilities 112593.15 120304.63 131502.08 136978.27 149795.47

Working Capital 635184.82 792678.57 928236.41 1046436.5 1144911.1

Net Receipts 2036604.1 2138437.5 2245359.4 2357627.4 2475508.7

Working Capital 635184.82 732678.57 928236.41 1046436.5 1144911.1

Working Capital Turnover 3.21 2.7 2.42 2.25 2.16

Cash 747088.02 912051.76 1058670.8 1182229.6 1293400.1

Current Liabilities 112593.15 120304.63 131502.08 136978.27 149795.47

Acid Test or Quick Ratio 6.64 7.58 8.05 8.63 8.63

Current Assets 747777.97 912938.2 1059738.5 1183414.8 1294706.6

Total Assets 1133843.5 1243342.6 1334391.8 1402362 145947.64

Current Assets to Total

Assests 0.66 0.73 0.79 0.84 0.89

Short-term solvency measures the ability of a firm to meet its obligations as they mature.

.

Schedule 5.10 Short Term Solvency

Financial Ratios Indicating Operational Efficiency

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 2036604 2138438 2245359 2357627 2475509

Total Assets 1133844 1243343 1334392 1402362 1457948

Assests Turnover 1.8 1.72 1.68 1.68 1.7

Net Income 361250.4 381787.6 399851.7 422494 422768.4

Sales 2036604 2138438 2245359 2357627 2475509

Return on Sales 18% 18% 18% 18% 17%

Net Income 361250.4 381787.6 399851.7 422494 422768.4

Total Assets 1133844 1243343 1334392 1402362 1457948

Return On Total

Assets 32% 31% 30% 30% 29%

Net Income 361250.4 381787.6 399851.7 422494 422768.4

Partner's Equity 1021250 1123038 1202890 1265384 1308152

Return on Equity 35% 34% 33% 33% 32%

These ratios show the efficiency of the operations and resources management. It shows the ability of the firm to

generate income and earn a satisfactory return on investments.

Financial Ratios Indicating Long Term Solvency

Year 1 Year 2 Year 3 Year 4 Year 5

Total Liabilities 112593 120305 131502 136978 149795

Partner's Equity 1021250 1123038 1202890 1265384 1308125

Debt to Equity Ratio 0.1103 0.1071 0.1093 0.1083 0.1145

Partner's Equity 1021250 1123038 1202890 1265384 1308152

Total Liabilities 112593 120305 131502 136978 149795

Equity to Debt Ratio 9.07 9.33 9.15 9.24 8.73

Schedule 5.11 Operational Efficiency

The financial ratios point out the ability of the business to recover its obligations with its available capital.

Schedule 5.13 Break Even Sales and Margin of Safety Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Service Income 2,281,000 2,395,050 2,514,802.50 2,6401,542.63 2,772,5698.76

Variable Costs and

Expenses

Cost of Services 815,494.40 856,269.12 899,082.58 944,036.72 991,238.56

Total Variable Costs 1,465,505.60 1,538,780.88 1,615,719.92 1,696,505.91 1,781,331.20

Contribution Margin 1,465,505.60 1,538,780.88 1,615,719.92 1,696,505.91 1,781,331.20

CM Percentage 64.25% 64.25% 64.25% 64.25% 64.25%

Schedule 5.12 Long Term Solvency

Fixed Costs

Pre-Operating Expense 15,657 - - - -

Operating Expense 705,000.26 736,757.49 765,060.05 810,027.75 851,743.83

Total Fixed Costs 720,657.76 736,757.49 765,060.05 810,027.75 851,743.83

Total Fixed Costs 720,657.76 736,757.49 765,060.05 810,027.75 851,743.83

CM Percentage 64.258% 64.25% 64.25% 64.25% 64.25%

Break-Even Point in Peso 1,121,646.32 1,146,704.27 1,190,661.56 1,260,742.80 1,325,671.33

Current Service Income 2,281,000.00 2,395,050 2,514,802.50 2,640,542.63 2,772,569.76

Break-Even Service

Income 1,121,646.32 1,146,704.27 1,190,661.56 1,260,742.80 1,325,671.33

Margin of Safety 1,121,646.68 1,248,3.45.73 1,324,140.94 1,379,799.83 1,446,898.43

The break-even point and margin of safety analysis shows the importance of planning and controlling the level of sales

in order to incur excessive costs and expenses that may result to loss.

Figure 5.1 Projected Sales vs. Break-Even Sales

Figure 5.1 shows the comparison between the projected sales and break-even sales and computed break-even peso sales

for a period of five years.

Social Desirability of the Project

Social organizational of a community plays a very important role in the

implementation and operation of the project. Both public and private institutions

will play a major role in the success of this project.

A business is established to serve a certain purpose in a society and in

the community where it has built. In every business, it is common to have social

responsibility. Some of the social benefits to the project are measured by the

specific contribution to the society and to the economy in terms of satisfaction of

the needs and wants of the people

The proposed project is concerned not only for the satisfaction of the

partners in earning profits but also, after the generation of the benefits to the

society and economy.

The project will be able to benefit the following:

1. Consumers

Hayahai Spa would offer a new way of relaxation for the customer

physical, mental and spiritual self’s by rendering a new style of spa

experience.

2. Provide Employment

This shop will help an individual who is jobless searching for a job for them

to be hired and able to help consumers alleviate their living by being

aware of their own health.

3. Government

The business is expected to increase government revenue in the form of

sales, exchange of goods and its course of transactions. The government

shall receive additional source of revenue in the form of license and

registration fees as well as taxes that business will pays.

4. Environment

The Proposed business will practice proper waste disposal and

segregation of garbage’s or materials to be used also must of product to

be used are natural, so it promotes use of our natural resources.