SIMPLIFIED

BUSINESS PLAN
ON
TRADING BUSINESS
Name of Business: Pinoy Trading
Legal Form: Sole Proprietorship
Business Type: Trading
Products and/or services: Fertilizer,
Insecticides
Customers: Farmers
Owner: Pedro Penduco
Number of staff or employees: 2, Sales
Clerk, Bookkeeper, 1
delivery boy, 1 warehouseman
 FUND REQUIREMENTS
AND SOURCING
Requirements Source of Funds
Total Cost Equity OWWA Loan

Fixed Assets:
Building Construction/Renovation P20,000.00 P20,000.00
Machineries and Equipment 100,000.00 100,000.00
Furniture and Fixtures 5,000.00 5,000.00

Working Capital 300,000.00 300,000.00

--------- -------- ----------

TOTAL P425,000.00 P125,000.00 P300,000.00

====== ====== =======

 MARKETING PLAN
Products to be sold : Fertilizer and
Insecticides
Target Customers: Farmers
Location: Neighborhood and Nearby
Places of San Ricardo, Talavera,
Nueva Ecija
Competition and competitive advantage:
Competitors Present No. of years
in
Comparative
Pricing
estimated Operation High Ave. Low
Capitalization
x
ABC Trading P500,000.00 3
X
Bagong Buhay 1,000,000.00 10
Coop. X
Pinoy Trading 300,000.00
WHY WOULD PEOPLE BUY MY PRODUCTS
AND/OR SERVICES INSTEAD OF MY
COMPETITORS?
Pinoy Trading will be offering special
discounts to customers with good credit
standing. We will be selling products of
good quality with low price and will make
sure that customers are our top priority by
providing excellent customer assistance and
free on-time delivery for every P5,000.00
worth of products purchase.
Expected
Product Pricing
Sales/Month
100 cavans of fertilizer at
P1,500/cavan and P25,000.00
to P50,000.00 insecticide.
Products will be sold at 25%
mark up and will be offering
3% special discounts to good
customers. Compare to our
competitors, our products
will be selling at low price but
of good quality.
 BUSINESS LOCATION
Pinoy Trading is located at San Ricardo, Talavera,
Nueva Ecija along provincial road near San Ricardo
National High School and Brgy. Hall of Brgy. San
Ricardo. It is very accessible to nearby places because
of concrete roads and there is electricity supplied by
Nueva Ecija Electric Cooperative. San Ricardo,
Talavera and neighboring places are 98% agricultural
area.
METHODS OF DISTRIBUTION
METHOD DETAILS COST

Free Delivery P5,000.00 worth of

products purchased
within San Ricardo,
Tal., Nueva Ecija
Gasoline P 50.00/delivery
Delivery with Charge Within the area with a
minimum charge of
P150.00/delivery,
outside Talavera
P300.00/delivery
Gasoline P100.00/delivery
TYPES OF PROMOTION/ADVERTISING
TYPE DETAILS COST

SIGNAGE TO BE INSTALLED IN FRONT OF P 500.00

THE STORE

STEAMERS/TARPAULIN TO BE INSTALLED IN CROSSING P1,000.00

CABANATUAN CITY

POSTERS/FLYERS TO BE DISTRIBUTED IN NEARBY P500.00

PLACES
 TECHNICAL
AND
ORGANIZATIONAL PLAN
MANPOWER COMPLEMENT
POSITION BRIEF DESCRIPTION NO. SALARY/WAGE
REQ’ RATE
D
Manager Shall be responsible in
managing the business. No salary needed
The decision maker and 1 since this is a sole
primary responsible in the proprietorship.
business operations. The owner is the
manager.

Cashier Shall be responsible for No salary needed

cash outflows and inflows. since this is a sole
proprietorship.
The owner is also
the cashier.
POSITION BRIEF DESCRIPTION NO. SALARY/WAGE
REQ’ RATE
D
Sales Clerk Shall be responsible in the
daily sales. Shall attends to P3,000.00 subject
customer needs. Shall 1 to salary increase
report and prepare daily depends on the
sales. net income of the
business.

Sales Shall be responsible for P4,000.00 subject

Clerk/Bookkeep daily sales. Since she’s also 1 to salary increase
er the bookkeeper she shall be depends on the
responsible in recording of net income of the
the daily sales and daily business.
transactions. Shall prepare
financial reports for review
of the owner/manager.
POSITION BRIEF DESCRIPTION
Delivery Boy Shall be responsible in the
delivery of products
purchased by customers.
Shall submit to bookkeeper
the delivery receipt. Shall
be responsible in the
maintenance of delivery
vehicle.
Warehouseman Shall be responsible for in
and out of products. Shall
prepare the inventory
report and shall be
responsible for monthly
physical inventory under
the supervision of the
owner/manager.
NO. SALARY/WAGE
REQ’ RATE
D
P3,000.00 subject
1 to salary increase
depends on the
net income of the
business.
P3,000.00 subject
1 to salary increase
depends on the
net income of the
business.
MACHINE/EQUIPMENT REQUIREMENT
MACHINE EQUIPMENT NO. REQ’D UNIT COST TOTAL COST

Delivery Vehicle 1 P100,000.00 P100,000.00

Furniture and Fixtures 5,000.00

Office/Store Renovation 20,000.00

 Organizational Chart
Owner/ Manager/ Cashier

Sales Clerk Bookkeeper Warehouse Man Delivery Man

FINANCIAL
ASPECT
BASIC ASSUMPTIONS
 Working Capital (OWWA Loan) payable in one year
P300,000.00
 Interest on Loan 7.5% p.a. with grace period of two
months
 Free delivery for a minimum purchase of P5,000.00
 P300 delivery charge outside Talavera, Nueva Ecija
 P150.00 delivery charge within
 25% mark-up on products sold
 Salaries and Wages
 1 Delivery boy P3,000.00/month
1 Sales Clerk P 3,000.00/month
1 Sales Clerk/Bookkeeper 4,000.00/month
1 Delivery Boy 3,000.00/month
1 Warehouseman 3,000.00/month
Power, Light and Water
 Electricity P700.00/month
 Water 300.00/month
Office Supplies 500.00/month
Taxes and Licenses
BIR/Business Permit (Mayor’s Permit), DTI/DOLE
Permit(to be amortized in one year) 4,000.00
Fuel and Oil for Delivery of products sold 2,000.00/month
Trans. And Travelling Expenses 2,000.00/month
 Promotional Expenses
Signage,Tarpaulin,flyers 2,000.00

Plant Property DEPRECIATION

and Equipment COST ESTIMATED LIFE PER MONTH

Delivery Vehicle P100,000.00 10 years P833.33

Furniture and 5,000.00 5 years 83.33

Fixture

Store
Construction/Ren 20,000.00 5 years 333.33
ovation
Sales per month 100 cavans of Fertilizer at
P1,500.00/cavan and P62,500.00

Purchases per month depends on Cash Available for

Use
 PINOY TRADING
Projected Statement of Cash Flow
January 1 to March 31, 2015

  January February March

CASH INFLOWS:      

Loan Proceeds (OWWA) 300,000.00    

Net Sales 212,050.00 212,050.00 212,050.00

TOTAL CASH INFLOW(Available 512,050.00 212,050.00 212,050.00

for use)      

Less: CASH OUTFLOWS:      

Purchases 290,000.00 194,000.00 194,000.00

Salaries and wages 13,000.00 13,000.00 13,000.00

Power, Light and water 1,000.00 1,000.00 1,000.00

Office Supplies 500.00 500.00 500.00

Taxes and Licenses 4,000.00    

Trans. And Travelling Exps. 2,000.00 2,000.00 2,000.00

Fuel and Oil Expenses 2,000.00 2,000.00 2,000.00

Promotional Expenses 2,000.00    

TOTAL CASH OUTFLOW 314,500.00 212,500.00 212,500.00

NET CASH BEFORE DEBT
SERVICE 197,550.00 (450.00) (450.00)

Less: Debt Service      

Loan Payable (Principal) 0 0 25,000.00

Interest on Loan 0 0 1,875.00

Total Debt Service 0 0 26,875.00

NET CASH FLOW AFTER DEBT 197,550.00 (450.00) (27,325.00)

SERVICE      

Add: Cash Bal. Beginning 0 197,550.00 197,100.00

CASH BALANCE-END 197,550.00 197,100.00 169,775.00

 PINOY TRADING
Projected Income Statement
For the First Quarter Ended, 2015
  January February March

SALES 212,500.00 212,500.00 212,500.00

Less: Sales Discounts 450.00 450.00 450.00

Net Sales 212,050.00 212,050.00 212,050.00

Less: Cost of Sales      

Beg. Inventories 0.00 120,000.00 144,000.00

Add: Purchases 290,000.00 194,000.00 194,000.00

Less: Puchases Returns &
Allow. 0.00 0.00 0.00

Purchase Discounts 0.00 0.00 0.00

Goods Available for Sale 290,000.00 314,000.00 338,000.00

Less: Merchandise
Inventories 120,000.00 144,000.00 168,000.00

COST OF SALES 170,000.00 170,000.00 170,000.00

Gross Income 42,050.00 42,050.00 42,050.00

Less: Operating Expenses      

Salaries and wages 13,000.00 13,000.00 13,000.00

Power, Light and water 1,000.00 1,000.00 1,000.00

Office Supplies 500.00 500.00 500.00

Taxes and Licenses 333.33 333.33 333.34

Trans. And Travelling
Exps. 2,000.00 2,000.00 2,000.00

Fuel and Oil Expenses 2,000.00 2,000.00 2,000.00

Promotional Expenses 2,000.00 0.00 0.00

Depreciation Expense 1,249.99 1,249.99 1,250.02

Total Operating Expenses 22,083.32 20,083.32 20,083.36

Net Income from
Operation 19,966.68 21,966.68 21,966.64

Less: Interest on Loan     1,875.00

Net income Before Tax 19,966.68 21,966.68 20,091.64

Provision for Income tax 5,990.00 6,590.00 6,027.49

NET INCOME 13,976.68 15,376.68 14,064.15

 PINOY TRADING
Projected Balance Sheet
For the First Quarter Ended, 2015
  January February March
ASSETS:      
Current assets:      
Cash on Hand 197,550.00 197,100.00 169,775.00

Merchandise Inventories 120,000.00 144,000.00 168,000.00

Prepaid Expenses 3,666.67 3,333.34 3,000.00
       
Total Current Asset 321,216.67 344,433.34 340,775.00

Plant, propert and Equipment:      

Delivery Vehicle 100,000.00 100,000.00 100,000.00

Less: Accumulated Depreciation 833.33 1,666.66 2,500.00

  99,166.67 98,333.34 97,500.00
Store Construction 20,000.00 20,000.00 20,000.00
Less: Accumulated Depreciation 333.33 666.66 1,000.00
  19,666.67 19,333.34 19,000.00
Furniture and Fixtures 5,000.00 5,000.00 5,000.00
Less: Accumulated Depreciation 83.33 166.66 250.00
  4,916.67 4,833.34 4,750.00
TOTAL ASSETS 444, 966.68 466,933.36 462,025.00
LIABILITIES AND
CAPITAL      

Loans Payable (OWWA) 300,000.00 300,000.00 275,000.00

Provision for Income Tax 5,990.00 12,580.00 18,607.49

Accrued Expenses
Payable      

Total Liabilities 305,990.00 312,580.00 293,607.49

CAPITAL:      

Pedro Penduco Capital 125,000.00 125,000.00 125,000.00

Net Income 13,976.68 29,353.36 43,417.51

CAPITAL END 138,976.68 154,353.36 168,417.51

TOTAL LIABILITIES AND

CAPITAL 444,966.68 466,933.36 462,025.00
 THANK
YOU