F I N A N C I N G A S P E C T | 90

CHAPTER VI

FINANCING ASPECT

Capital is important in starting a business enterprise in order to function and

subsequently generate profits in return. The start-up of the business until its

succeeding operations needs the outflow of funds. Without these outflows, the

business will be incapable of providing enough financial resource to be utilized in

the things necessary in the business.

The financing aspect includes the acquisition of monetary resources in the

preparation of the business, attaining a capital at the least possible cost and the

efficient management and deployment of the available capital. This aspect would

also help in the decision making of the management as to the most practical and

cheapest way of providing funds for the business. Proper planning and sufficient

attention must be given to this aspect to avoid and prevent inappropriate use of

money that could lead to an inadequacy of funds.

SOURCES OF FINANCING

The source of funding of any business firm depends on the nature of the

business. As the proposed project is a sole proprietorship, the implementer should

provide the initial capital, which is estimated to be Php 547,989.83, which the

owner loaned from his personal account. The succeeding pages are the details of

the estimated project costs.

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Estimated Project Cost

Note

Pre-Operating Expense
Project Feasibility Cost
Permits and Licenses
Property and Equipment
Leasehold Improvement
Furniture and Fixture
Safety and Security
Office Equipment
1 7,700.00
2 6,805.00 14,505.00
3 102,623.95
4 25,824.86
5 8,449.60
6 28,894.95

Delivery Equipment 7 121,195.00

Production Equipment 8 62,125.00 349,113.36

Working Capital

Raw Materials 9 48,536.42

Office Supplies 10 2,727.00

Sanitary Supplies 11 1,668.00

Packaging Supplies 12 1,271.75

Cleaning Supplies 13 1,090.55

Salaries and Wages 14 66,950.00

Professional Fee 15 4,000.00

Utilities Expense 16 8,799.00

Advertising Expense 17 5,700.00

Rent Expense 18 40,000.00

Gasoline Expense 19 1,128.75

Patenting Fee 20 2,500.00 184,371.47

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TOTAL ESTIMATED PROJECTED COST 547,989.83

Schedule 1
Project Feasibility Cost

Particulars Cost
Adviser and Panelists Honoraria 3,500.00
Printing Expense and Bookbinding 1,500.00
Experiment and Product Sampling Cost 1,000.00
Transportation Expenses 500.00
Food and Drinks 500.00

Snacks for Panelists 400.00

Grammarly and Plagiarism Test 200.00

Photocopy 100.00

Total 7,700.00

Schedule 2
Permits and Licences

Particulars Cost
LTO Registration 3,600.00
Business Permit 750.00
DTI Registration 715.00
Business Tax Permit 600.00
BIR Registration 500.00

Police Clearance 250.00

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Mayor’s Permit 200.00

Sanitary Permit 85.00

Barangay Clearance 50.00

Documentary Stamp for Leasing 35.00

Fire and Safety Clearance 20.00

Total 6,805.00

Schedule 3

Leasehold Improvements

Particulars Quantity Unit Cost Total Cost

A. Division and Prod. Area

Labor 6 per 10,000.00 60,000.00

mons.

Thick Plywood (1/4 in) 20 unit 320.00 6,400.00

Toilet Bowl 2 pcs. 2,403.00 4,806.00

Steel Bar 25 kg. 145.00 3,625.00

Hollow Block 300 sacks 12.00 3,600.00

Exhaust Fan 4 pcs. 874.00 3,496.00

Bathroom Door Set 2 pcs. 1,725.00 3,450.00

Gravel and Sand 30 sacks 74.80 2,244.00

Cement 10 sacks 215.00 2,150.00

Varnish 13 liters 105.00 1,365.00

Sink I pc. 482.50 482.50

Nails ¼ 5 kilos 71.50 357.50

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Tiles 12 pcs. 18.20 218.40

Faucet 1 pc. 60.00 60.00

B. Electricity

Fluorescent Lamp 10 pcs. 254.93 2,549.30

Standard Wire 40 m. 33.95 1,358.00

Circuit Breaker 1 pc. 680.00 680.00

Electrical Outlet 20 pcs. 32.00 640.00

Electrical Switches 8 pcs. 54.00 432.00

Electrical Tape 5 pcs. 23.25 116.25

C. Paintings

Paint 8 liters 485.00 3,880.00

Paint Roller Brush 5 pcs. 105.00 525.00

Paint Thinner 7 liters 27.00 189.00

Total 102,623.95

Schedule 4

Office Furniture and Fixtures

Particulars Quantity Unit Cost Total Cost

Wall Fans 4 pcs. 1,599.00 6,396.00

Steel Tables 2 pcs. 6,350.00 12,700.00

Filing Cabinet 1 pc. 2,879.86 2,879.86

Office Table 3 pcs. 833.00 2,599.00

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Office Chair 1 pc. 1,250.00 1,250.00

Total 25,824.86

Schedule 5

Safety and Security

Particulars Quantity Unit Cost Total Cost

CCTV 2 pcs. 3,174.80 6,349.60

Fire Extinguisher 1 pc. 2,100.00 2,100.00

Total 8,449.60

Schedule 6

Office Equipment

Particulars Quantity Unit Cost Total Cost

Computer 2 pcs. 11,800.00 23,600.00

Printer 1 pc. 2,995.00 2,995.00

Telephone 1 pc. 1,699.95 1,699.95

Water Dispenser 1 pc. 600.00 600.00

Total 28,894.95
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Schedule 7
Delivery Equipment

Particulars Cost
Multicab 120,000.00
Hand Truck Trolley 1,195.00

Total 121,195.00

Schedule 8

Production Equipment

Particulars Quantity Unit Cost Total Cost

Agitator 1 pc. 51,435.00 51,435.00

Mixing Bowls 10 pcs. 569.00 5,690.00

Weighing Scale 1 pc. 5,000.00 5,000.00

Generator 1 pc. 45,000.00 45,000.00

Total 107,125.00

Schedule 9

Raw Materials

Particulars Quantity Unit Cost Total Cost

Benzalkonium Chloride 219.86 kg. 105.00 23,084.94

Linear Alkyllbenzene Sulphonate 192.37 kg. 77.00 14,812.85

Cocomide Dietanolamine 41.22 kg. 84.00 3,462.74

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Essential Oil 0.69 kg. 50.00 34.35

Citric Acid 41.22 kg. 45.00 1,855.04

Moringa Seed 27.48 kg. 65.00 1,786.33

Propylene Glycol 13.74 kg. 105.00 1,442.81

Industrial Salt 1.37 kg. 8.00 10.99

Deionized Water 1,026.32 1.06 1,084.50

kg

Sodium Hydroxide 27.48 kg. 35.00 961.87

Total 48,536.42

Schedule 10

Office Supplies

Particulars Quantity Unit Cost Total Cost

Printer Ink (Colored) 2 units 300.00 600.00

Printer Ink (Black) 2 units 250.00 500.00

Calculator 1 unit 400.00 400.00

Office Receipt 3 booklet 75.00 225.00

Long Bondpaper 1 ream 155.00 155.00

Short Bondpaper 1 ream 120.00 120.00

Puncher 1 pc. 120.00 120.00

Expanded Envelope 10 pcs. 12.00 12.00

Wall Clock 1 unit 90.00 90.00

Record Book 2 books 40.00 80.00

Stapler 1 pc. 75.00 75.00

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Scotch Tape 2 rolls 20.00 40.00

Scissors 2 pairs 20.00 40.00

File Clip .1 box 38.00 38.00

Staple Wire 1 box 35.00 35.00

Pencil 4 pcs. 6.00 24.00

Long-sized Folder 4 pcs. 5.00 20.00

Ballpen 3 pcs. 7.00 21.00

Short-sized Folder 4 pcs. 4.00 16.00

Pencil Sharpener 1 pc. 8.00 8.00

Total 2,727.00

Schedule 11

Sanitary Supplies

Particulars Quantity Unit Cost Total Cost

Chemical Resistant Gloves 3 pcs. 160.00 4,800.00

Face Mask 15 box 45.00 675.00

Lab Gown (Apron) 5 pcs. 65.00 325.00

Hair Net 1 pack 188.00 188.00

Total 1,668.00
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Schedule 12

Packaging Supplies

Particulars Quantity Unit Cost Total Cost

Bottles 150 gal. 6.80 1,020.00

Boxes 38 pcs. 2.47 93.75

Sticker 3 packs 30.00 90.00

Packaging tape 2 rolls 34.00 68.00

Total 1,271.75

Schedule 13

Cleaning Supplies

Particulars Quantity Unit Cost Total Cost

Trash Can 2 pcs. 158.00 316.00

Mop 2 pcs. 103.00 206.00

Garbage Bag 2 packs 84.50 169.00

Dishwashing Soap 1 bottle 125.00 125.00

Dust pan 2 pcs. 40.00 80.00

Plunger 2 pcs. 35.00 70.00

Broom 2 pcs. 25.00 50.00

Tissue 4 pcs. 7.95 31.80

Sponge and Scrub 2 pcs. 10.00 20.00

Hand Soap 1 pc. 17.75 17.75

Rag 5 pcs. 1.00 5.00

Total 1,090.55
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Schedule 14

Salaries and Wages

Particulars No. Monthly Months Total

Rate

Production Worker 3 7,930.00 1 23,790.00

Office Personnel 2 8,233.33 1 16,466.67

Manager 1 10,833.33 1 10,833.33

Security Guard 1 7,930.00 1 7,930.00

Delivery Man/Janitor 1 7,930.00 1 7,930.00

Total 66,950.00

Schedule 15

Professional Fee
Particulars No. Quarterly Rate Total
Retainers Fee 1 4,000.00 4,000.00
Total 4,000.00
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Schedule 16

Utilities Expense
Particulars Monthly No. of Mos. Total
Rate
Electricity 6,000.00 1 6,000.00
Communication 1,299.00 1 1,299.00
Water 1,500.00 1 1,500.00
Total 8,799.00

Schedule 17

Advertising Expense

Particulars Quantity Unit Cost Total Cost

Sample 4,500.00

Tarpaulin 2 pcs. 350.00 700.00

Flyers 1 ream 500.00 500.00

Online Advertising

Total 5,700.00

Schedule 18
Rent Expense

Particulars Amount
Rent Expense 20,000.00
Deposit 20,000.00
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Total 40,000.00

Schedule 19
Gasoline Expense

Particulars Amount
Gasoline 1,128.75

Total 1,128.75

Schedule 20
Patenting Fee

Particulars Amount
Patenting Fee 2,500.00

Total 2,500.00