Business Plan

Recently, I made a Business Plan or sort of. These are what it produced. So, calling out those ‘’business minded’’ persons and students, maybe this work of mine might help. Otherwise, another feat of mine.

1.0      EXECUTIVE SUMARY

Statement and Background of the Problem

          The Polytechnic University of the Philippines (PUP) located in Sta. Mesa, Metro Manila houses one, if not, one of the largest student population amongst the various universities administered and operated by the Philippine government nationwide.  According to one of its faculty members, Atty. Jay Joseph C. Jamandre of the College of Arts and Sciences, PUP boasts of an enormous approximate Fifty Thousand in terms of student population.  One can just imagine the volume of people coming in and out of the PUP campus every single day.  That is why no wonder, traffic jams are always present and always a part of a PUP student once he/she reaches the school vicinity.  To traffic assigned enforcers nearby, it’s a daily headache but for businessmen or an entrepreneur, heaven.

          The aim of this Business Plan is to answer one of the never-ending needs of students – FOOD.  Apart from the school supplies, Food is the next best thing that this student necessitates.  Obviously, as one would try to walk down Teresa Street near the PUP campus, there is no single stall that offers food and the variety it presents from its availability to the costs…it’s endless.  The main reason why these stalls do well is the variety and the costs.  More importantly, almost a considerable number of students eat in these stalls everyday.  Why is it that irregardless of the food ingredient, taste and preference of the food being served and the health risks coupled, do the students prefer to eat on these stalls located outside the campus?

          The next sections and sub-sections of this Business Plan will try to formulate an answer to the queries above-stated.  There can be no further direct answer but the prices of the food, nothing else.  Where in the entire PUP campus can one find a hamburger at only Ten Pesos (PhP10.00), but only at Teresa Street?  What becomes more interesting is that this particular ten-peso burger also comes along with a serving of coleslaw!  With the kind of standard of living that these students have, a ten to twenty peso savings in their respective “baons”, is obviously a great deal for them.  Some of the secondary reasons follow why the students prefer to eat outside is because of the ambiance it gives.  Students have much freedom of expressing themselves outside the campus.  Their freedom and the variety of choices of food are much larger in quantity than those inside the campus.  Another reason is that the students enjoy it much eating outside because they can do it while chatting on the internet or playing their favorite RPG games.

          And now comes SNACK ATTACK…it maybe somehow does answer the problems posted thru the questions above-stated but it will somehow offer a competitive alternative for a sound food choice for PUP students especially those who has a daily 30 Pesos food budget.  A sumptuous, delicious, hot, clean, healthy and fast satisfactory-approved meal awaits everyone who “attacks” and pay Snack Attack a visit and avail of its products and services.  But Snack Attack will not rest on the usual snack alternative alone as it will try to invade PUP various school activities, school organization’s activities thru sponsorships, launching of new product lines, offer endless gimmicks and marketing strategies that contains what the PUP student deserve in these trying times – discounts, discounts and more discounts.

          Further expansion plans of Snack Attack foresee it to be a true one-stop-shop for all the students to enjoy visiting and having around.  It will try to offer more variations in food by the introduction of new meals in its product line.  A cellular phone loading station for all networks, a photocopying machine and school supplies section to answer the students’ daily needs and requirements.  Moreso, the change in the corporate structure of the company will be on the agenda as Snack Attack further plans on setting up an additional branch to a PUP Annex building nearby in order to augment the needs of other PUP students.

          The company that will own and manage the food stall will not anymore be a sole proprietor but instead, the same will be owned and managed by a food corporation.  This food corporation will be named as PFG FOODS, INC. (“PFG”, for berevity).  PFG will comprise five (5) stockholders (of Filipino Nationality, or in case of foreign partner/s as stockholder/s, should only hold a total percentage of 20% of ownership), who will also serve as the officers of the corporation.

          PFG’s corporate set-up will be that in conformity with the rules and regulations of the Securities and Exchange Commission (SEC).  PFG’s authorized capital stock to reflect in its proposed Articles of Incorporation and By-laws will be equivalent to Five Hundred Thousand Pesos (PhP500,000.00).  The authorized capital stock of PFG will be divided into Ten Thousand Shares (10,000) at One Peso (PhP1.00) per share.  Fifty Thousand (50,000) shares shall be subscribed.  Twenty-five percent (25%) of said authorized capital stock shall be subscribed, which will be equivalent to One Hundred Twenty-five Thousand Pesos (PhP125,000.00).  The amount to be paid-up and should be reflected in PFG’s bank statement should at least be, according to SEC rules, also twenty-five percent (25%) of the subscribed amount.  In this case, PFG opts to pay the 25% percent of the same, which is equivalent to Thirty-one Thousand Two Hundred Fifty Pesos (PhP31,250.00).

          Aside from the proposed corporate set-up and shareholdings, the primary purpose of said Food Corporation shall be:

“To establish and maintain, operate, restaurants, coffee shops, refreshment parlors, cocktail lounge; to cook, arrange, serve and cater goods, drinks, refreshments and other food or commodities commonly served in such establishments, and to offer such other services to the public in connection with the operation of restaurant and catering enterprises.”

          An equal number of shares shall be distributed among the stockholders of the corporation.  As such, the following will be the corporate set-up of PFG Foods, Inc.:

Name	No. of Shares	Amount Subscribed (PhP)	Amount Paid-Up (PhP)
Stockholder #1	10,000	25,000.00	6,250.00
Stockholder #2	10,000	25,000.00	6,250.00
Stockholder #3	10,000	25,000.00	6,250.00
Stockholder #4	10,000	25,000.00	6,250.00
Stockholder #5	10,000	25,000.00	6,250.00
TOTAL	50,000	125,000.00	31,250.00

          PFG Foods, Inc. will also be registered with the Department of Trade and Industry as it will be using other business names upon the commencement of its operations.  PFG will, likewise be registered with the proper and concerned government and non-government agencies to ensure a smooth and a legitimate business operations.  PFG will eventually be registered with the local government where the principal office of the same is located.  The necessary permits in order to operate such as business permits, building, sanitary, electrical permits and such the like will be procured.

          For tax purposes, PFG will also be registered with the Bureau of Internal Revenues and since the same will employ a handful of employees that will man the daily operations of the stall from the moment it starts operating, until the last sale of the day, PFG should and must be registered with agencies that promotes the welfare of common laborers or employees, with the Social Security System, Philhealth or the Pag-Ibig (Home Development Mutual Fund).

          As its future plans, PFG Foods, Inc. with its future operating plans and projected increase in income and return of Investments within the next two (2) years, plans of continuing the business thru its expansion programs.  Thus, having to necessarily register the same with the Intellectual property Office (IPO) for trademark purposes and with probably the infusion of new, innovative and unique own products in its line, with the Bureau of Food and Drugs (BFAD).

2.0      COMPANY SUMMARY

          For its initial operation, Snack Attack will be owned and operated on a sole proprietorship basis.  The President and Proprietor of PFG Foods, Inc. will be _____________.  Its initial capital will be in the amount of _____________.  The same amount will be reflected in PFG’s registration with the Department of Trade and Industry.  It will also procure the necessary government and non-government permits in order to operate as a small business to the locality where it is to be located.  Agreements and other documents (e.g., Contract of Lease) will also be executed between PFG and the administration of PUP in order to legitimize the operation and the setting up of a food stall inside the PUP campus.

          With its present set-up, PFG Foods, Inc. will maintain a small space for office and warehouse purposes.  The same shall be located at Manila and will house PFG’s offices for its operations and a warehouse and commissary where stocks will be placed for storage.

          PFG will concentrate, as stated thru its primary purpose, and will mainly dwell into having to sell food or snack items to students.  Basic machineries, utensils and all the required possible things and manpower that has to do with cooking and serving food for the students.

3.0      PRODUCTS AND SERVICES

          Through its initial stage of operation, PFG shall adopt the business name: “SNACK ATTACK”.  Snack Attack will cater to students in a unique and delicious way of eating the usual student’s snacks with less the costs.  Its product line includes the basic, usual elementary processed and cooked foods and snacks as well as refreshing drinks.  Its product line includes Hamburgers, Cheeseburgers, Hotdogs on Bun, “Footlongs” on Bun, flavored and unflavored French Fries, Siopaos, Cheese Sticks, fish and squid balls served on sticks as well as Kikiam and siomai of various flavors.

          Snack Attack will also refresh and cool down the student’s thirst by serving not the costly bottled soft drinks but instead serving them by cups of different sizes.  A variety of fruit juices will also be available.  For the early birds, a serving of coffee or hot chocolate will also be available.

          For those who are have big appetites, a hot and delicious, easy-to-make instant “pancit canton” of various flavors with an accompanying bread bun or a steaming cup of rice coupled with a cold drink will also be available for serving upon ordering.

          Such products and utensils that will be used and to be consummated shall be purchased from Nepa Q-Mart, Quiapo, Metro Manila.  It is where everything needed, can be bought at a very low but qualitative price.

          Although Snack Attack’s product line may sound too usual, its competitive advantage and plus factors will all rely on its price, unique presentation and flavor.  It will also be an advantage to employ uniform-donned staff together with a very clean, neat and attractive stall.

          Entire sales for Snack Attack will come entirely from its products.  These products will cater to students who have a snack or food budget from 20 to 30 pesos.  Snack Attack’s appeal will come from food stalls to be located inside the school canteen’s premises.  The stall will do a colorful and attractive mood.  The staff that will man the stall will be composed of two uniformed (clean t-shirt with hairnets and cellophane gloves for sanitation purposes), clean, neat, courteous and friendly employees.  They will take turns in cooking, serving, taking and receiving of orders.

          Since it is a food stall for catering food snacks to students, its technology will be based on cooking alone.  The main purpose, and maybe the marketing strategy or secret of snack attack will be the manner of serving its products to the student-buyer: Serving the snack in an “attack” way, which is hot and fast.

          Future product line that Snack Attack plans to venture into is serving more snack variations such as short orders (spaghetti, lasagnas, mami and other noodle or pasta entrees), packed meals and even a cellular phone loading station for all networks.  Snack Attack also has a plan to expand thru the putting up of a mini-photocopying station and school supplies section for the student’s continuing needs and requirements.  All in all, one of Snack Attack’s future plans is to build and be known as a one-stop-shop for the entire PUP studentry.

4.0      MARKETING AND COMPETITIVE INDUSTRY ANALYSIS

          Snack Attack’s market will solely be on the PUP students alone since the stall will be placed inside the school canteen’s premises.  The attractive stall will be strategically located and placed amongst other food and snack stalls that cater the same products in order to stiffen the competition.  Students with a food and/or snack budget of thirty pesos (PhP30.00) and up will most likely to benefit the unique and delicious goods and services that Snack Attack offers.  It will also try to cater to other school personnel and visitors and will oftentimes coordinate with the school administrators to sponsor or act as snack caterer to some of the school’s major and minor annual activities.

          Inasmuch as Snack Attack wants to uniquely dominate or monopolize such food stall service, it maybe quite impossible to realize the same considering the other stalls located at the canteen also serve the same product line.  What is important or the key movement, activity or strategy that would initially boost and make that Snack Attack stall competitive enough would be the variety of food it offers, the establishment of a “recall value” thru the courteous and friendly staff, the cleanliness and the way food is served and most of all, the student’s enjoyment and satisfaction of the same food being served hot and fast with less the price compared to others.

5.0      STRATEGIES AND IMPLEMENTATION SUMMARY

          5.1     Stall and Staff

          It is accepted and given that by the mere location of Snack Attack’s food stall amongst the numerous food stalls inside the canteen area of PUP spells a stiff competition.  If this is so, PFG plans of showing a “wow” effect o the appearance of Snack Attack’s food stall once it commences its operations.  Said surprise marketing strategy will surely woo the minds of the students.  A much colorful than the usual and an appealing food stall appearance, that is vivid, with clear light fixtures, should be installed in the food stall for its clean and neat appearance.

          The staff that will receive, get and serve the order from the students should be in uniforms.  The uniforms need not be over-decorated.  Plain red shirt as uniform will do as the color red is attractive and strikes attention easily.  For cleanliness and sanitation purposes, the staff shall be compelled to use hairnets, aprons and cellophane gloves when cooking.  The taking of orders as well as the manner of serving them should and must be done on a friendly and courteous manner.  The staff will likewise take turns in doing such tasks and the necessary activities that needs to be done to assure a safe, clean and neat food stall.  The upkeep of the spaces surrounding the stall, tables and chairs where students eat their food and snacks must also be well maintained and kept clean and neat by the staff.  The staff should be prepared in advance before the start of every operation as early as half past seven in the morning as the stall will offer snack breakfast for students who usually comes to school early and to those students of non-students that skips breakfast just to be able to reach PUP at an early time.  The staff also will have to be sure that the stall is already closed at around five in the afternoon with all the sales already counted and properly accounted and logged.  The staff may have to opt for an extended time in closing depending on the availability of stocks and the demand of the students.

  

          5.2     Sales Strategy

          Snack Attack’s target markets are PUP students who have a daily Thirty Pesos (PhP30.00) budget for food and/or snacks.  Snack Attack will focus on formulating various meal combinations that will surely fit in the given food budget of the students.  The following budget meal will be presented and made available:

NAME	VARIATIONS	PRICE
Attack No. 1	1 Hamburger + 1 Large Drink + 1 French Fries	PhP30.00
Attack No. 2	1 Cheeseburger + 1 Regular Drink + 1 French Fries	PhP30.00
Attack No. 3	1 Hotdog on bun + Regular Drink + 1 Cheese Sticks	PhP30.00
Attack No. 4	1 Footlong on Bun + 1 Regular Drink + 1 French Fries	PhP30.00
Attack No. 5	Squid Balls (4pcs) + Siomai (3pcs) + 1 Large Drink	PhP30.00
Attack No. 6	1 Siopao + Siomai (3 pcs) + Large Drink	PhP30.00
Attack No. 7	1 Pancit Canton + 2 bread buns + 1 Large Drink	PhP30.00
Attack No. 8	1 Pancit Canton + 1 steaming rice + 1 Large Drink	PhP30.00

          Apart from the usual appearance and variations of the snacks presented above, the students can or may opt for mixed variations of the above products as long as their Thirty-Peso food budget fits.  E.g.:  1 Cheeseburger + set of siomai + 1 large drink.

          Snack Attack will present mixed possibilities and endless variations to the PUP students to ensure and enable or give them a sense of customer satisfaction by letting them choose a mixed meal in so small a budget.  Psychologically, it promotes a continuous active participation between the students and Snack Attack.  It further gets them involved in real life and somehow shows them on how go about stretching a small amount ion order for them to survive without the need of ever having to sacrifice their need to sustain their student lives through proper eating.  It also somewhat gives them freedom to choose and to stand for their own choice and decision.

          Another way to boost sales is by establishing a “recall” value.  It is very significant for Snack Attack to try to establish this thru its first two days or the first two weeks of operations.  With the already established stalls within PUP who also has already established markets, it would be necessary for Snack Attack to give out small discounts or freebies during the above-given time frame.  A best example would be a free regular sized soft drink for every meal bought or a free French fries, cheese sticks, squid balls or siomai.  These small freebies to a complete meal will surely attract attention from the students as well as to those school personnel, members of the faculties and visitors alike.  As we Filipinos are known to love these kinds of small treats, this strategy will surely make a mark or somehow establish a “recall” value on Snack Attack.  For everytime that they think of food that is free and delicious without spending much, it is Snack Attack that comes into their minds.

          Snack Attack’s participation with some of the school of school’s various organizations’ activities will also attract sales.  Thru proper and formal coordination with school administration personnel, key persons to school organizations, Snack Attack can propose to cater to students or once in a while, sponsor a specific school activity.  As these activities may trigger bulk sales, it is also necessary to give large discounts and freebies for the satisfaction of the activity organizers.  Thru the above, thru constant communication with the organizers all year long and thru Snack Attack’s fast and delicious way of serving food, will advantageously increase sales and furthermore establish a strong and growing market.

          Earning points is another way to increase sales.  This new marketing strategy is considered one of the most effective and widely used strategies by marketing experts nowadays.  Snack Attack will issue small cards with ten columns or boxes to represent the ten corresponding visits or purchase that each cardholder makes with each purchase.  The card will be stamped and be signed by Snack Attack’s representative on the box as a cardholder purchase a certain meal.  A free Snack Attack meal of the cardholder’s choice (depending upon the availability of stocks) awaits anyone who completes all the boxes with the corresponding stamps and signatures.  Only a single point or stamp can be awarded to a cardholder each day.  Said strategy of earned points will be done once every twice a month so the students has something to look forward to.

          It is also vital that Snack Attack is well informed of PUP’s annual activities.  Thru this, Snack Attack can offer discounted prices on some of its products to the qualified students.  For example, a 3-peso off discount for every meal bought by a graduating student as part of Snack Attack’s graduation promo or a free regular drink to freshmen as part of the back-to-school promo.

5.3.    Strategy Analysis

          The importance of Snack Attack’s active participation both among the student and between PUP is the very core of having and maintaining a good rapport and marketing relationship considering the limited market Snack Attack has.  The main ingredient here is the recall value which means that whenever a student necessitates or craves for a good and less costly snack amidst the busy school schedule, the thing that comes to his/her mind is Snack Attack.  A very classical example of the recall value is Jollibee.  Whenever a child is hungry or craves for food before or after a trip to the mall, or whenever you want to put a smile in the face of a child, the first thing that comes into mind is Jollibee.  That is because it has already had established a lasting recall value amongst the children and adult alike through their endless marketing strategies ranging from advertisements, discounts, freebies, mascots, humanitarian programs, variety of products the quality and costs of their product line, their active participation in socio-economic awareness programs that involves most especially, children and many others.  That although these may sometimes hurt or entail financial risks at the start, positive and considerable results on the sales and income aspect will be remarkable in the end.  A very excellent and valid unquestionable reason as to where and how far Jollibee has gone in influencing and inculcating the recall value of every Filipino.

6.0     MANAGEMENT PLAN

          As PFG is owned and operated by a sole proprietor, it will be inevitable to hire or tap a team that will focus on Snack Attack’s daily operations.  As such, the following personnel should be present in its structure:

Position	Function/s
Operations Manager	The one to overlook on every aspect of the daily operations of Snack Attack. Should be responsible for: a) cleanliness and freshness of the food to be served; b)  cleanliness of the stall and its nearby surroundings; c)  food and non-food supplies and stocks;  and, d) Stall Staff and their proper implementation of various marketing approved strategies. Will report directly to the owner or the Manager on a daily basis regarding issues that needs to be addressed. Will closely coordinate with the kitchen/commissary staff personnel  regarding stocks, the food taste and the freshness of the same that is being served on a daily basis and, Responsible in closely coordinating with the PUP administration, personnel, faculty members, activity organizers and student leaders for operation, administration and marketing  purposes.
Kitchen/Commissary Personnel	Will be in charge with the strict and qualitative emphasis on what kind of food is to be served by personally taking full responsibility of going to the market to buy the necessary stocks. Should guarantee the cleanliness, freshness and the over satisfactory taste of foods to be served with less the costs, and, Responsible for food costing implementation with close coordination with the Operations Manager.
Food Stall Staff	Will receive, take and serve orders in a friendly and courteous manner To guarantee the correctness of food preparation, its freshness, cleanliness and the quality of the taste of the same, and, Implement guidelines set by the management.

          It is very important for the owner-proprietor that a relevant job experience should be a requirement in these enumerated personnel.  This is in order to do away from the basic and elementary training which is very costly and eats a considerable amount of time and effort.  A weekly meeting is proposed among every member of the structure to ensure a smooth flow of operations and to properly address key issues that requires attention, consideration and adjustments.