Feasibility of Establishing

“Outdoor Advertising” in
Meycauayan City, Bulacan
Eduard Carlos V. Lagman Wilson Mark S. Arellano
Jerome C. Roque Samuel Sebastian B. Santos
 Strengths and Weaknesses
Strengths Weaknesses
* Strategic Location * Very Limited Number of
Billboard Space Rentals
* Long-term Customers * Can only be offered to Big
Businesses or Organizations
* High Responsiveness to
Clients’ Demands
* Knowledgeable and
Competent Employees
 Opportunities and Threats

Opportunities Threats
* Strategic Partnership * Online
with Existing Advertisements
Advertising
Consultancy Firms
* Election Season * Existence of Large,
Known, and Strong
Competitors
 Shortage
Year Projected Demand Projected Supply Projected Gap

2019 2.57 0.55 2.02

2020 2.61 0.57 2.04

2021 2.65 0.59 2.06

2022 2.69 0.61 2.08

2023 2.73 0.63 2.10

2024 2.77 0.65 2.12

 Marketing Programs

Accounts Representative Selling

Portfolio
Online Advertisements
Perception of Customers
HAVE BILLBOARD ADVERTISING
Yes
12%

No
88%
Perception of Customers
MAIN CONCERN REGARDING BILLBOARD ADVERTISING
Others
Its size and location 2%
7%

Number of audience
13%

Cost of billboard advertising

78%
Perception of Customers
WILLINGNESS TO SPEND MORE THAN P150,000.00 MONTHLY
Yes
8%

No
92%
 Business Organization

Partnership (Form of Business)

General Partnership
Service Type (Type of Business)
Advertising (Nature of Business)
Kind of Business (Kind of Business)
 Labor Requirements

Supervisor

Accounts
Bookkeeper Graphic Artist
Representative
 GANTT Chart

Activity November December January

1. Brainstorming

2. Market Study

3. Feasibility Study

4. Funding

5. Registration

6. Hiring

7. Start of Normal Operations

 Services

Consultation Planning Sourcing

Editing and
Posting Printin Shooting
Location

Malhacan Road,
Meycauayan City,
Bulacan
 Tools and Equipment
Particulars Quantity Unit Cost Total Cost

CPU Package 1.00 ₱ 33,850.00 ₱ 33,850.00

Intel Core i-7

Laptop 1.00 ₱ 36,750.00 ₱ 36,750.00

Intel Core i-5

Printer Brothers 3-in-1 2.00 ₱ 18,950.00 ₱ 37,900.00

Printer Brothers poster 1.00 ₱ 46,750.00 ₱ 46,750.00

billboard

CCTV Package 1.00 ₱ 27,500.00 ₱ 27,500.00

TOTAL ₱ 182,750.00
Total Project Cost and Capital

The business needs around

P367,789.75 in order to establish the
business. In order to properly
budget, the business proponents
will raise P375,000.00.
 Comprehensive Statement of Income

LARS ADVERTISING
Comprehensive Statement Income
For the years 2019 - 2023

2019 2020 2021 2022 2023

Revenue 2,920,100.00 3,640,750.00 4,362,505.00 5,085,475.50 5,809,783.00

Total Expenses 2,361,374.25 2,646,648.25 2,933,161.25 3,219,715.25 3,506,310.25

Earnings Before Income Taxes 558,725.75 994,101.75 1,429,343.75 1,865,760.25 2,303,472.75

Income Tax 167,617.73 298,230.53 428,803.13 559,728.08 691,041.83
Net Income 391,108.02 695,871.22 1,000,540.62 1,306,032.17 1,612,430.92
 Statement of Financial Position
LARS ADVERTISING
Statement of Financial Position
For the years 2019 - 2023

Sch. 2019 2020 2021 2022 2023

ASSETS
Total Current Assets 365,353.23 540,693.03 715,992.63 891,644.58 1,067,685.33
Total Non-Current Assets 180,473.00 135,746.00 91,019.00 46,292.00 1,565.00

TOTAL ASSETS 545,826.23 676,439.03 807,011.63 937,936.58 1,069,250.33

LIABILITIES AND
PARTNERS' EQUITY
Total Liabilities 170,826.23 301,439.03 432,011.63 562,936.58 694,250.33

Partners' Equity
Total Partners' Equity 375,000.00 375,000.00 375,000.00 375,000.00 375,000.00

TOTAL LIABILITIES 545,826.23 676,439.03 807,011.63 937,936.58 1,069,250.33

AND PARTNERS' EQUITY
 Statement of Cash Flows

LARS ADVERTISING
Statement of Cash Flows
For the years 2019 - 2023

Sch. 2019 2020 2021 2022 2023

Cash Flow from Operating Activities
Net Cash Flow from Operating Activities 443,687.33 842,044.36 1,146,673.55 1,452,517.45 1,759,305.01

Cash Flow from Investing Activities

Net Cash Flow from Investing Activities -225,200.00 - - - -

Cash Flow from Financing Activities

Net Cash Flow from Financing Activities -16,108.02 -695,871.22 -1,000,540.62 -1,306,032.17 -1,612,430.92

Net Cash Flow 202,379.31 146,173.14 146,132.93 146,485.28 146,874.09

Cash, Beginning - 202,379.31 348,552.45 494,685.38 641,170.66
Cash, Ending 202,379.31 348,552.45 494,685.38 641,170.66 788,044.75
 Return on Investment
LARS ADVERTISING
Return on Investment
For the five-year period (2019 to 2023)

2019 2020 2021 2022 2023

Net Income 391,108.02 695,871.22 1,000,540.62 1,306,032.17 1,612,430.92
Investment 375,000.00 375,000.00 375,000.00 375,000.00 375,000.00
ROI 1.0430 1.8557 2.6681 3.4828 4.2998
Cumulative 1.0430 2.8987 5.5668 9.0496 13.3494

ROI is December 16, 2019

Impact to Society

Mangrove Tree Planting

Other Programs
Feeding Program
Brigada Eskwela
Advertising Seminar
Impact to Government

Business Operation
Permits and Licenses
Income Tax
Mandatory Benefits
SSS
PhilHealth
Pag-Ibig
Summary of Findings

In Marketing Aspect, it shows that there is an

additional shortage in outdoor advertising which
the business could tap. Furthermore, there are
multiple ways for the company to promote its
business such as using its portfolio and online
advertisement.
In Management Aspect, the process in
establishing the business and the position
needed to operate the business has been
clearly defined.
 Summary of Findings

In Technical Aspect, availability of space

and the needed supplies, equipment, and
furniture has been presented.
In Financial Aspect, it shows that the
business will record an income of more
than ₱390,000.00 and it will increase
annually.
In Socio-Economic Aspect, activities to be
presented will be done annually.
Conclusion

Based on the findings of the study, the

proponents found that the proposed
business entitled LARS Advertising is feasible
and viable. It has an existing market, there is
an available personnel that will manage,
available location and equipment, and it
will generate income annually.
Recommendation

The business should raise enough capital

in order to buy additional equipment in
order to lessen the cost of producing
tarpaulin supplies.
Diversification of services should be
offered such as photo printing services
and photo framing services.
 Recommendation

Additional outlet store may be developed

in Southern Luzon or Metro Davao City
area.
Additional billboard spaces in building
should be developed in order to improve
the number of rental spaces every year.
Future researchers may develop the
present study with focus on various cities in
Metro Manila Area.