“FUNNYCAKE”

Sabacan, Deana D. Palma, Kenneth B.

Laureta, Augustine L. Castro, Jesreel John Y.

Tumbaga, Jerico C. Saclolo, Christopher C.

Submitted To:

Paul John V. Gabay

Date Submitted:

March, 2018
 I. INTRODUCTORY PAGE

The business name is FUNNYCAKE; funnycake came from “FUNNY and PANCAKE” which
is the super crispy pancake that is made from all-purpose flour, baking powder, salt, egg, butter,
milk, and sugar with a twist of caramelize condense milk over the top.

We decided to develop the common pancake that we always encounter in the kitchen we made
it more pleasing and taste in young people especially in children. Funnycake is an all in one
package for it may have free one pancake per three orders.

Our business wants to inspire everyone; we do this by providing jobs, skills and training, buying
goods from narrow seller. We share this kind of benefits in a way that is sustainable and
advantageous in excess of the short period.

I. EXECUTIVE SUMMARY
A. Types of business

Our business can be providing for a one person because it is easy to prepare, manage and sell to
the people even to the little. Our product is “Funnycake” which contains pancake, but it is not the
typical pancake that customer encounter because it contains twist that can be the main reason why
customer patronize our “pancake”. But, our business can also be a more person. That can be
manage by one or more persons.

We prefer “pancake” which is made from all-purpose flour, baking powder, salt, egg,
butter, milk, and sugar, with a twist of caramelize condense milk on the top. We choose this
because it is trending in people especially in children.

We always been familiar in common pancake, but this product is made with a twist of caramelize
condense milk on the top.

II. ENVIRONMENTAL ANALYSIS

a. Socio-economic contribution
In our business it is preferable to sell it in schools even in outside. Our business can
be affected from the place, population, weather and some instances. Our business
 will become affected if there are many competitors from the place we are targeting
selling the FUNNYCAKE since the full attention of people are not supposed to be
mine.
III. DESCRIPTION OF THE BUSINESS
Our business can be considered as a sole proprietorship business. For it can be
manage by a single owner only that owns the store. It can also be considered as
partnership.

IV. PRODUCTION PLAN

a. Manufacturing Process
In producing a Funnycake, one must follow the following steps of production:
1. Prepare first the ingredients in bowl.
2. Mix it.
3. Add water.
4. Add oil.
5. Mix it again.
6. Ready to cook.
b. Machinery and Equipment
In producing Funnycake, we need materials that can be used in cooking.
Suppliers of raw materials
Our suppliers for ingredients in our product can be found in the public market of
Sto. Domingo, Nueva Ecija.
c. Future capital equipment needs
For the materials that can be used in cooking we Php 3,000 for gas stove and LPG
tank.

V. OPERATIONS PLAN
Because Funnycake operates in a single location, we have facilities available for a
certain amount of the production. Since the major product is the pancake which is
easy to prepare and machinery is not needed we have focus on the kitchen utensils
 that will surely use, we make sure that we will reached the quota of producing
pancake a day. Step by Step procedure
The process of Funnycake:
1. Mix flour, baking powder, salt, and sugar
In a medium-size mixing bowl or large glass measuring cup, whisk together your dry
ingredients (or follow directions for premade pancake mix).
2. Mix milk, eggs, and oil
In a separate bowl, whisk together the wet ingredients (milk, eggs, vegetable oil, or melted
butter) until the egg is broken up (this will prevent overmixing in the next step).
3. Mix dry ingredients with wet ingredients
Add the wet ingredients to the bowl with the dry ingredients. Stir them together until you stop
seeing flour. Remember to not overmix, which makes the batter tough.

Tip: Keep a few lumps in your batter to keep the pancakes tender.
4. Pre-heat the pan or skillet
Turn your stove to medium-high heat and place a large skillet or griddle on the burner.
5. Add oil to pan
Moisten a paper towel with vegetable oil and use it to lightly wipe the bottom of the pan. This
will keep the pancakes from sticking.
6. Pour the batter into the pan
For each pancake, gently pour 1/3 to 1/2 cup of batter into the pan, using a ladle or a measuring
cup. Use a spoon to spread the batter into a circle.
7. Flip the pancakes when the bubbles burst
Once bubbles begin to pop in the pancake’s center, it’s ready to be turned. Insert the entire
spatula under the pancake’s middle. Lift the pancake quickly about an inch off the pan’s
surface and flip it over.

a. Labor and Machine Requirement per Step

 In producing our product, we will use material for cooking like kalan de uling
or gas stove and manual laborer, a manual laborer is focus to manage the basic
step or procedure like mixing the ingredients.

b. Raw Material Layout all-purpose flour, baking powder, salt, egg, butter, milk,
and sugar

All-purpose flour ---- Php150 Butter (1/2) ---- Php50

Baking powder ---- Php50 Milk ---- Php100
Salt ----Php10 Sugar (1Kg) ---- Php50
Egg (10) ---- Php60 Condense Milk ---- Php50

c. Labor requirement

Position Daily Monthly Yearly

Manager Php100.00 Php3,000.00 Php36,000.00
Salesman Php50.00 Php1,500.00 Php18,000.00
Total Php1500.00 Php4,500.00 Php54,000.00
,

d. Waste Disposal System

 A clean environment is important for everyone, because the
cleanliness in our place can help our business to increase the quality of
our product. Cleanliness can create first impression for both visitors and
employees.

Key takeaways on having cleanliness

 Cleanliness offers several benefits, such as higher productivity,
efficiency and reduced waste of time and resources.Employees should
be encouraged to sort, set in order, schedule and follow a standard
 method of cleaning operations. Cleanliness should be made a part of the
business’ policies, as it directly affects the overall image of the business.

VI. MARKETING PLAN

A. Product to Sell
Pancake is a common or usual street food that buyers found somewhere but this
product contains with twist.
B. Target Market
1. Area Coverage
Funycake is always available in different food stores, like in inside of school,
in street etc. This kind of breakfast or snack was easy to prepare.
2. Consumer/Customer
Funnycake is a food that very affordable that’s why even children can afford to
buy our Funnycake.

CUSTOMER TOTAL NUMBERS

Students 300-400 Students

Teacher, Visitors, outsider 400-500 Persons

C. DEMAND AND SUPPLY ANALYSIS

3. Total Potential Demand
 The most important in a business in knowing the potential demand.
Understanding what the potential demand of a product would be will be the
basis of any part of the development decision.

Our business is new, here are weekdays predictions;

Monday Tuesday Wednesday Thursday Friday Total
No. of 50-60 pcs 40-50 pcs 45-60 pcs 30-45 pcs 100-150 pcs 200-300 pcs
demand/
of our
products

4. Present Supplier/ Competition

The goal of competitor analysis is to understand what the competitors of the
business are. It is a way of comparing your company to your competitors when
it comes to SWOT analysis

Our business provided SWOT analysis for us to know the present

supplier/competition of our Funnycake.

SWOT ANALYSIS
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

 Unique taste  Lack of  Direct selling  Liability

 Affordable financial Losses
 With twist  Manage
Your
Supply
Chain
D. Projected Sales
1. Per month

Chart Title
9
8
8
7
6
5
4
4 3.5
2.8
3
2
1
0
1 2 3 4

2. In volume and in pesos

PIECES PRICE
1pcs Php8.00
2pcs Php15.00
4pcs Php20.00

E. Marketing Strategies
Social media platforms now offer businesses of all sizes unprecedented opportunities
to reach new consumers. There are currently a number of social media outlets
including Facebook, Twitter, LinkedIn, Google+, and Instagram among others.
Depending on the demographics of your customers, different platforms are more
suitable than others
1. Practices of competitors
 All businesses face competition. Even if you're the only store in area
you must compete with other businesses where your customers will
spend their money instead of with you. With increased use of the
Internet to buy goods and services and to find places to go, you are
no longer just competing with your immediate neighbors. Indeed,
you could find yourself competing with businesses from other
countries.

2. Own marketing program/ strategies

 Maintain Relationships with Clients
The difference between a successful company and a mediocre one
often boils down to an owner’s commitment to building (and
sustaining) relationships with clients and prospects. While it’s
important to keep up traditional communication and PR, business
owners should also be extending their relationships through online
forums – website, blogs, and social networks. Conversations are
happening all around you – are you listening, are you
participating? Are you a thought leader? Be visible!
 Facebook It!
Your Facebook friends can be your greatest free marketing tools
so enlist their help! In Facebook, use the NOTES application to
create a special, limited-time “friends and family” promotion (i.e.:
enter “facebook09” at checkout to receive 10% off), tag all your
friends and ask them to pass along your exclusive deal to their own
friends. A great offer goes a long way quickly…especially through
our favorite social networking sites!
F. Marketing/Selling expenses

Marketing expenses Budget Description

Advertisement Php1,000.00 For the initiation of our
product we persist to
have a flayers and
tarpaulins that will be
given in our target
consumer and also in
our customers.

VII. ORGANIZATIONAL PLAN

Owner is person who both owns a business and manages it. 'Being an owner-
manager was often a lonely experience.' 'Owner managers of small and medium
sized companies often find they are too busy focusing on running the business to
afford the time to think about and plan for the future. Manager is an individual who
is in charge of a certain group of tasks, or a certain subset of a company. A manager
often has a staff of people who report to him or her.
As an example, a restaurant will often have a front-of-house manager who helps
the patrons and supervises the hosts; or a specific office project can have a manager,
known simply as the project manager. Certain departments within a company
designate their managers to be line managers, while others are known as staff
managers, depending upon the function of the department. Because when working
in a team towards a common goal, the workload is shared among all team members.
Work should be shared equally and be distributed according to the strengths of each
member. Teamwork also allows for helping another team member when you have
finished your workload. Teamwork is also the oil that makes the team work.
Employee is an individual who works part-time or full-time under a contract of
employment, whether oral or written, express or implied, and has recognized rights
and duties. Also called worker. In this business the owner, manager, and the
employee play an important role. Because when working in a team towards a
common goal, the workload is shared among all team members. Work should be
shared equally and be distributed according to the strengths of each member.
Teamwork also allows for helping another team member when you have finished
your workload. Teamwork is also the oil that makes the team work.
Owner

Manager

Employee
VIII. FINANCIAL PLAN

A. Monthly Sales forecast

Month Projected Sales (units) Projected Sales (pesos)
January 500 pancakes Php3,750.00
February 700 pancakes Php5,250.00
March 450 pancakes Php3,375.00
April 400 pancakes Php3,000.00
May 450 pancakes Php3,370.00
June 400 pancakes Php3,00.00
July 450 pancakes Php3,370.00
August 350 pancakes Php2,625.00
September 380 pancakes Php2,850
October 470 pancakes Php3,525.00
November 550 pancakes Php4,125.00
December 740 pancakes Php5,550.00
 B. Pro forma balance sheet

FUNNYCAKE
Statement of Financial Position
As of December 31, 20X1

ASSETS

Current Assets

Cash 15,000.00

Accounts Receivable 1000.00

Inventories 75,000.00

Total Current Assets 91,000.00

Noncurrent Assets

Equipment-Stove 1,100.00
Less: Accumulated
Depreciation -100.00

Total Noncurrent Assets 1000.00

Total Assets 92,000.00

LIABILITIES AND OWNERS'

EQUITY

Current Liabilities

Accounts Payable 20,000.00

Total Liabilities 20,000.00

Owner's Equity

Capital 20,000.00

Net Income 100,000.00

 Drawings -48,000.00

Total Equity 92,000.00

Total Liabilities and Owners'
Equity 92,000.00

C. Pro forma Income Statement

FUNNYCAKE
INCOME STATEMENT
As of December 31, 20X1

REVENUE

Gross Sales 100,000.00

Less: Less returns and allowance -15,000.00

Net Sales 85,000.00

COST OF GOOD SOLD

Purchases 50,000.00
Delivery Charge -25,000.00
COGS 25,000.00

Gross Profit (Loss) 110,000.00

EXPENSES
Start Up Expense
50,000.00
Other Expense 25,000.00
Total Expense 75,000.00

NET profit 35,000.00

D. Cash Flow Projections

FUNNYCAKE
Statement of Cash Flows
For the Year Ended 20X1

Operating Activities

Net Income P 230,000.00

Decrease in Accounts Receivables 500

Increase in Inventory -50,000.00

Depreciation expense 7,000.00

Cash provided(used) in operating activities 192,500,00

Investing Activities 0.00

Financing Activities 0.00

Net Increase in Cash 192,500.00

 E. Sources and Uses of Funds
Sources Uses
1. Contributions from owners Capital for the business
2. Loans For other expenses that cannot be
shouldered by the contributions of
the owners

F. Breakeven Analysis

𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 (𝑇𝐹𝐶)

𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 (𝐵𝐸𝑄) =
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑠𝑡

58,800.00
𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 (𝐵𝐸𝑄) =
𝑃ℎ𝑝20.00 − 𝑃ℎ𝑝5.00

𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 (𝐵𝐸𝑄) = 3,920 units

This BEQ analysis is applicable for a whole year of production, meaning that
in order for the company to get the capital back, it must produce 16,338 units.

IX. ASSESSMENT OF RISK

EXTERNAL RISK
 Financial risks Financial risk is the possibility that
 shareholders will lose money when they
invest in a company that has debt, if the
 company's cash flow proves inadequate
to meet its financial obligations.
 Marketing risks Market risk is the possibility for an
investor to experience losses due to
factors that affect the overall
performance of the financial markets in
which he is involved. Market risk, also
called "systematic risk," cannot be
eliminated through diversification,
though it can be hedged against. Sources
of market risk include recessions,
political turmoil, changes in interest
rates, natural disasters and terrorist
attacks.
 Operational risks Operational risk is "the risk of a change
in value caused by the fact that actual
losses, incurred for inadequate or failed
internal processes, people and systems,
or from external events (including legal
risk), differ from the expected losses".

INTERNAL RISK
Organizational change Organizational change comes in many
forms. But whether prompted by
regulation, technological change or a
corporate restructuring, the result is
always upheaval, and enforced
changes to op risk frameworks to
cope with new and often idiosyncratic
sources of risk.
Physical risk concern in the buyer's mind that the
product being considered for purchase
will be harmful, unhealthy or cause
injury.

X. TIMETABLE/MILESTONE

MILESTONE Start Date End Date

Business/Marketing 1/1/18 1/20/18
Plan
Secure Funding 1/20/18 2/1/18
Marketing plan 1/1/18 1/20/18
Structure company 1/15/18 3/15/18
type
Ingredients suppliers 1/20/18 1/31/18
Equipment supplier 1/20/18 1/31/18
Site plans 1/31/18 2/1/18
Business license, etc. 2/2/18 2/28/18
GRAND OPENING 2/5/18