Chapter 1

INTRODUCTION

Objective of the Study

This study aimed to determine the feasibility study of “The Greatest

Siomai” business in Villa Magsanoc, Tagum City and is specially aimed to

determine the demand and supply situation of the proposed business in Villa

Magsanoc,Tagum City. In addition, is to identify the best competiveness of the

proposed business. Moreover, is finding out the various technicalities in

handling the details of the operation. We also want to determine the ideal set-

up of the management on the proposed business. And lastly, to analyze the

financial feasibility of the proposed business in terms of the profitability,

liquidity and stability of the prospect business.

Methodology

Survey questionnaire will be distributed by the proponents to the

various identified respondents. Interview will also be conducted to potential

customers. Observation to other indirect competitors will also be observed by

the proponents for that they might indirectly affect the proposed business

because their business can be a substitute product.

Scope and imitations of the Study

Through the information we have gathered in the survey and interviews

conducted. This study focused only on the four important aspects: the

marketing, which generates the demand or at least takes the order for a

product or service. Technical or production, which creates the product.

Organization or management is a factor of production and an economic

resource which is responsible for ensuring that labor and capital are

effectively used to increase productivity. And lastly, the financial aspect which

tracks how well the organization is doing, paste the bills and collects the

money. The study is made through the sharing of ideas regarding the

information gathered.
 Chapter 2

EXECUTIVE SUMMARY

Brief Description of the Project

The proposed business is named The Greatest Siomai. Siomai is one

of the trends in the food industry in these days. The business is located at

Villa Magsanoc, Purok Mankilam, Tagum City that offers delicious and

different variety of siomai products at an affordable price. The geographic

area to be covered by the business is being surrounded by small stores,

schools, and households who have the capabilities to buy the products of the

said business.

Brief Profile of the Proponents

EDUCATIONAL
NAME ADDRESS
BACKGROUND
Purok 5, Basak,
Aventurado, Drinomie IIII-BS Accounting
Nabunturan, Compostela
Jean Technology
Valley Province
IIII-BS Accounting Binuangan, Maco, ComVal
Baruiz, Lyza Mae
Technology Province
IIII-BS Accounting Prk. 6, San Miguel, Tagum
Canillas, Jayca
Technology City
IIII-BS Accounting Blk. 4 Lot 12, Camella
Faelogo, Kristine Marie
Technology Homes, Tagum City
IIII-BS Accounting Blk. 17 Lot 1, Villa
Gallibo, Mary Grace
Technology Magsanoc, Tagum City
Ombajin, Sheena Marie IIII-BS Accounting Prk. 10-A, Alejal, Carmen,
 Technology Davao del Norte

Project Contribution to the Economy

The proposed business contributes to the growth of micro

entrepreneurs as it needs small capital in engaging in this kind of business. It

will also help the local communities for creating another employment for the

public.

The business will encourage employment opportunities to the residents

that would bring a positive effect in the socio-economic stability. The

government will also benefit directly in this proposed business in the form of

tax payment, business permit and licenses. The entity does not only focus on

profit maximization but also contribute to the welfare of the people.

 Chapter 3

MARKETING PLAN

Description of the Product

 Siomai is a type of traditional Chinese dumpling, originating from

Hohhot, Inner Mongolia. In Cantonese cuisine, it is usually served as a dim

sum snack. It is a popular dim sum dish which consists of ground pork or

shrimp or both, carrots, dried mushrooms, green onions and flavored with soy

sauce, Chinese wine, salt, pepper and sesame oil. Egg and cornstarch are

used to bind the mixture together. It is then wrapped in wonton wrappers and

steamed. Then our supplier’s products will have different varieties like beef,

pork and our bestselling variety will be Japanese siomai. Our product might

be common and classic but it will surely come in a very reasonable price

without compromising its quality and taste.

Comparison of the Product with its Competitors

The product is definitely unique compared to the products of our

existing competitors. What makes it different among others is that the product

is served at a lower price without compromising its taste, and the product itself

is appealing in the eyes of the target customers because it offers a tasty

variation of a traditional snack with delicious sauce. It will surely bring out the

curiosity of the customers and once they tasted our products, they’ll surely

come back for more. Not to mention its close proximity to the village belt that

the residents don’t need to go to the mall to buy their favorite snack in an

expensive price.

Location

The proposed business will be located at Villa Magsanoc Brgy.

Mankilam,Tagum City. The chosen area is very accessible especially to its

residents and students because it will be located near school and the said

village.

Market Area

The market area of the business is in Tagum City, Davao del Norte.

Main Customers

The main customers of the proposed business will be the residents

from Villa Magsanoc Brgy. Mankilam,Tagum City and the nearby residents.

Historical Demand

Presented in Table 1 is the historical demand of Siomai in Villa

Magsanoc Tagum City. The proponents conducted a series of interviews

among the residents living in the said place. They interviewed 108 residents

around Villa Magsanoc, 96 residents answered that they are willing to buy

Siomai and the proponents divide it by 108. They found out that 89% of the

residents are willing to purchase the product.

The proponents discovered that the total consumption of Siomai in a

week from the 96 residents is 192. They divided the total consumption of

Siomai which is 192 by 96 residents. And they found out that the average

consumption of Siomai per week of the residents in Villa Magsanoc is 2.

Table 1

Historical Demand
 Target No. of No. of Total Demand
Approximat
Year Market % Consumptio weeks per of Siomai per
e Population
(89%) n per week year year (per set)

201
1,543 1,373 2 52 142,820
6
201
1,783 1,587 2 52 165,034
7
201
1,854 1,650 2 52 171,606
8

Projected Demand

Table 2 shows the projected demand of Siomai. It is shown that the

average increase of the demand in percentage is 9.77% based on the

historical demand. To get the amount of average increase, multiply the base

year by the average increase percentage. And the amount of average

increase in 2019 is 16,763; 2020 is 18,400; and 2021 is 20,197.To get the

projected demand, it is computed by adding the amount in base year to the

amount of average increase.

Table 2

Projected Demand

Year Base Year Average Increase Projected Demand

2019 171,606 16,763 188,369

2020 188,369 18,400 206,769
 2021 206,769 20,197 226,966

Historical Supply

Table 3

Historical Supply
Competitors 2016 2017 2018

Master Siomai 9,341 11,222 13,037

Siomai King 3,447 4,294 5,141

Others/Streets 6,048 8,064 10,080

Total 18,836 23,580 28,258

Table 3 shows the historical supply of the proposed business that is

based on competitors. This is to show the Siomai business is profitable in

their production.

Projected Supply

Table 4 shows the projected supply of Siomai. It is shown that the

average increase of the supply in percentage is 22.51% based on the

historical supply. To get the amount of average increase, multiply the base

year by the average increase in percentage. And the average increase in

2019 is 6,361; 2020 is 7,793; and 2021 is 9,547.To get the projected supply, it

is computed by adding the amount in base year to the amount of average

increase.

Table 4

Projected Supply
 Projected
Year Base Year Average Increase (%)
Supply

2019 28,258 22.51% 34,619

2020 34,619 22.51% 42,412

2021 42,412 22.51% 51,959

Comparative Demand and Supply Analysis

Shown in Table 5 is the summary of total historical and projected

demand and supply of Siomai here in Tagum City. It can be observed in the

table that there are still demands of Siomai based on the unsatisfied demand.

Table 5

Demand and Supply Analysis

Year Demand Supply Unsatisfied Demand

Historical Value

2016 142,820 18,836 123,984

2017 165,034 23,580 141,454

2018 171,606 28,258 143,349

Projected Value

2019 188,369 34,619 153,750

2020 206,769 42,412 164,357

2021 226,966 51,959 175,007

Projected Market Share

 Table 6 shows the computation for the projected market share. Market

share is based on the production capacity of the proposed business against

the unsatisfied demand. To get the market share, the production capacity is

divided it by unsatisfied demand.

Table 6

Projected Market Share

Year Unsatisfied Demand Production Capacity Market share %

2019 153,750 32,256 20.98%

2020 164,357 34,481 20.98%

2021 175,007 36,716 20.98%

Projected Selling Price

Shown in Table 7 is the projected selling price of delicious and

affordable Siomai. The proponents assume that per projection, it is increasing

by P 2.00 per year. The projection increase started on the second year of

operation. The reason why there is an increase of price is due to increase of

prices of raw materials.

Table 7

Projected Selling Price

Particulars 2019 2020 2021

Japanese 20 22 24

Beef 20 22 24

Pork 20 22 24
Projected Sales

The percentage used is based on the number of customers that chose

a specific variety of siomai divided by the total number of customers’ desired

variety of siomai. The said percentage is used through the three projected

years as we assume that it is constant base from the interview we conducted

towards the residents of Villa Magsanoc, Tagum City and its nearby places.

Table 8 shows the projected sales of Siomai in 2019. The quantity and

price of the ingredients and the total sales in 2019 is P 645,120.

Table 8

Projected Sales 2019

Price per Total Projected

Particulars % Quantity
set Sales

Beef Siomai 23% 7,419 20.00 148,378

Pork Siomai 37% 11,935 20.00 238,694
Japanese
40% 12,902 20.00 258,048
Siomai
Total 100% 32,256 20.00 645,120

Presented in Table 9, is the projected sales of Siomai which increases

by ₱2.00 in 2020 because every quantity of price of ingredients increases that

is why the total sales in 2020 is P 758,589.

Table 9

Projected Sales 2020

Total
Price per
Particulars % Quantity Projected
set
Sales
 Beef Siomai 23% 7,931 22.00 174,475

Pork Siomai 37% 12,758 22.00 280,678

Japanese Siomai 40% 13,793 22.00 303,435

TOTAL 100% 34,481 22.00 758,589

Table 10

Projected Sales 2021

Total
Price per
Particulars % Quantity Projected
set
Sales

Beef Siomai 23% 8,445 24.00 202,670

Pork Siomai 37% 13,585 24.00 326,035

Japanese Siomai 40% 14,686 24.00 352,470

TOTAL 100% 36,716 24.00 881,175

Presented in Table 10, is the projected sales of Siomai which increases

by ₱2.00 in 2021 because every quantity of price of ingredients increases that

is why the total sales in 2021 is P881,175.

Summary of Sales

Table 11 reveals the summary of sales in the next three years. In the

table, it can be seen that the sales are increasing. It indicates a potential and

a positive look of the business in the proposed location.

Table 11
Summary of Sales

Year Amount

2019 645,120
 2020 758,589
2021 881,175

Marketing Strategy

Promotional Measures and Marketing

The proponents proposed a unique yet effective way to promote the

product to the customers. They plan to advertise the product in various ways

like posting in their social media accounts to be able to have mass

advertisement and using fliers worth 1000 pesos to introduce their product.

They also plan to give discounts (Less 3 pesos in every order) to the

customers in their opening date.

Distribution Strategy

The customer will go to the business location where the proposed

business will be located and it is at Villa Magsanoc, Tagum City.

Pricing Strategy

Based on the interview from the potential customers they said that they

can afford the proposed price and as long as the proponents can meet the

satisfaction of the customers.

 Chapter 4

PRODUCTION PLAN

Production Aspect

This chapter shows out the production process to be involved in the

preparation of siomai snacks. The said product is a ready-made siomai

purchased from the supplier that the company will preserve and reheat in the
time of sale. The proponents consider this as a very essential aspect because

it involves procedures on how to come up with a delicious and affordable

siomai snacks product.

Terms and Condition of Purchase Equipment

The purchase of equipment will be paid on cash basis to possibly avail

discounts.

Source of Equipment

The equipment to be use will be purchased at Department Store and

Grocery Stores of Malls of Tagum City and also it is available online and all

the items at reasonable price.

Direct Material Availability

The proponents decided that the direct materials used in the proposed

business can be found in Tagum City.

Siomai Snack Process

1. Pour water in the

pot and let it boil.

2. Arrange the siomai

in the steamer and put
it to the stockpot.

3. Steam siomai for

15-25 minutes.

4. Serve with dipping

sauce and chili.

Fig. 1

Siomai Snack Process Flow Chart

Purchase of Direct Materials

Table 12 shows the purchase of raw materials. The raw materials

needed per day are: 1 pack of each variety (japanese siomai, pork siomai

and beef siomai),1/8 kilo of calamansi, 0.067 liter of soy sauce and one pack

chili sauce.

Table 12

Cost of Raw Materials-Japanese/Pork/Beef Siomai

Ingredients Quantity Unit Unit Cost Total Cost

Japanese/Pork
1 pack 145.00 145.00
/ Beef Siomai
Chili Sauce 1 pack Free

Calamansi 1/8 kilo 15.00 1.88

Soy Sauce 0.067 liter 40.00 2.68

Total Cost 149.56

Produce No. of
15.00
Servings
Cost per
9.97
Serving

Table 13 shows the summary of cost per serving for different variety of

siomai for the year 2019, 2020 and 2021 with cost per serving of 9.97, 10.47

and 10.99 respectively.

 Table 13

Summary of Cost per Serving

Year Cost per serving

2019 9.97

2020 10.47

2021 10.99

Table 14 shows the summary of purchased material for Japanese

Siomai, Pork Siomai and Beef Siomai. In 2018 total cost of purchased

material is P321,603.07, in the 2019 is P360,979.54 and in 2020 is

P403,588.91.

Table 14

Summary Cost of Raw Materials

Year Quantity Cost per serving Total

2019 32,256 9.97 321,603.07

2020 34,481 10.47 360,979.54

2021 36,716 10.99 403,588.91

Direct Labor

Direct labor is product cost that is needed in the production of the

product. The table below will show the projected cost of labor annually. It is

projected that it will increase every year by 5%.

Table 15

Direct Labor

Average
Rate/ Month Total/ Year 2019 2020 2021
Increase %

Cook 7,500 90,000 5% 90,000 94,500 99,225

Total 7,500 90,000 90,000 94,500 99,225

Freight In

Presented in Table 16 is the projected transportation expense for the

next three years. Proponents assumed to have an increase of 5% per year.

Table 16

Projected Freight In

Year Total Amount

2019 1,920.00

2020 2,016.00

2021 2,116.80
Fixed Equipment

Table 17 shows the machines and equipment to be use by the

proponents. The following kitchen equipment and machineries have a long

term economic use for the production.

Table 17

Fixed Equipment

Particulars Quantity Unit Cost Total Amount

Steamer 1 2,450.00 2,450.00

Portable Butane Gas Stove 1 545.00 545.00

Cooler 1 2,455.00 2,455.00

Total 3 5,450.00

Depreciation

Presented in Table 18 is the computation of the depreciation expense.

The proponents used the straight line method of depreciation. Furthermore, it

is assume that the economic life of the capital is 3 years. The proponent use 3

years of the estimated value of depreciating property.

 Table 18
Depreciation Expense

Annual
Estimate
Depreciatio
d Life
n
Particular Cost 2019 2020 2021

Fixed
Equipmen
t
2,450.0
Steamer 5 490.00 490.00 490.00 490.00
0
Portable
Butane 545.00 5 109.00 109.00 109.00 109.00
Gas Stove
2,455.0
Cooler 3 818.33 818.33 818.33 818.33
0
5,450.0 1,417.3 1,417.3 1,417.3
Total 1,417.33
0 3 3 3

Utility Expense

Table 19 shows the utilities expense of the business such as power

supply per month and the annual cost to be incurred by the proposed

business. It shows that on year 1 the utility expense is P2,160.

Table 19
Utility Expense
Rate Per Annual
Utility Source Basis
Month Total Cost
Water
Tagum Water District cubic meters 180.00 2,160.00
Supply
Total 2,160.00
Projected Utility Expense

Table 20 shows the projected utility expense for the next three years. It

is assumed to have an increase of 5% per year.

Table 20
Projected Utility Expense
Year Total Amount
2019 2,160.00
2020 2,268.00
2021 2,381.40

Rent Expense

In the interview conducted, the estimated rent per month is 1,500 or a

total of 18,000 per year. It is further assumed to increase by 5% per year.

Details
Table 21
are
Rent Expense
Year Total Cost
2019 18,000

2020 18,900
2021 19,845
presented in Table 21.
 Table 22

Summary of Projected Manufacturing Cost

Particulars 2019 2020 2021

Raw Materials 321,603.07 360,979.54 403,588.91

Direct Labor 88,800.00 93,240.00 97,902.00

Freight In 1,920.00 2,016.00 2,116.80

Manufacturing Overhead:

Depreciation 1,417.33 1,417.33 1,417.33

Utilities 2,160.00 2,268.00 2,381.40

Rent 24,000.00 25,200.00 26,460.00

Total Manufacturing Overhead 27,577.33 28,885.33 30,258.73

Total 439,900.41 485,120.87 533,866.44

Operating Expense

The following next tables indicate the operating expense that the

business will incur in the operating years.

Salaries and Wages

 Table 23 shows the salaries of the employee of The Greatest Siomai. It

is assumed to increase 5% per year. The sales associate/cashier is projected

to receive a salary based on current minimum wages of 7,400.00 per month

or a total of P 88,800 for 2018, P 98,240 for 2019, and P97,902 for year 2020.

Table 23

Salaries and Wages

Average
Rate/ Total/
Increase 2019 2020 2021
Month Year
%
Sales 91,28
6,900 82,800 5% 82,800 86,940
Associate/Cashier 7
91,28
Total 6,900 82,800 82,800 86,940
7
Utensils Expense

There are kitchen utensils which are charge directly to expense

because it would not be repaired if in case it will be destroyed. The

proponents just get a budget for replacement per year if in case it could no

longer be used. Table 24 and 25 show the details and the budgeted amount

per year respectively.

Table 24

Utensils Expense

Unit Annual Total

Particulars Quantity
Cost Cost

Tong 2 25 50
 Knife 1 50 50
Chopping
1 49 49
board
Total 149
Table 25 shows the summary of utensils expenses for the (3) three

executive years of the proposed business operation with 5% increase per

year.

Table 25

Summary of Utensils Expense

Year Total Utensils
Expense
2018 149.00

2019 156.45
2020 164.27

Permit, Taxes and Licenses

Table 26 shows the operating expense of the business permit, taxes

and licenses cost 1,200 and it is assumed to increase by 5% annually.

Table 26
Projected Permits, Taxes and Licenses
Year Total Cost
2018 2,880.00
2019 3,024.00
2020 3,175.20

Store Supplies
 Table 27 shows the record of supplies expense annually with the
unit cost and quantity. The total cost of store supplies expense is ₱11,406.00.

Table 27

Store Supplies

Particulars Unit cost Quantity Annual cost

Table napkin 40 1 40

Plastic Jar 40 1 40.00

Trash Can 139.75 1 139.75

Tissue 18 70 1,260.00
Paper Siomai
32.5 100 3,250.00
Tray
Cellophane 9.1 100 910.00

Paper Wrapper 63 25 1,575.00

Rags 30 12 360
Chair 200 1 200
Total 7,774.75

Presented in Table 28 is the summary of store supplies expense. It is

projected to increase 5% per year.

Table 28

Summary of Store Supplies Expense

Year Total Amount
2019 7,774.75
2020 8,163.49
2021 8,571.66
Repair and Maintenance Expense

Table 29 shows the annual repair and maintenance of equipments

used in the business operation which assumed with an annual total amount of

1,200 and a 5% increase per year.

Table 29
Projected Repair and Maintenance Expense
Year Total Amount
2018 750.00
2019 787.50
2020 826.88

Table 30

Summary of Operating Expense

Particulars 2018 2019 2020

Salaries and Wages 88,800.00 93,240.00 97,902.00

Utensils Expense 291.00 305.55 320.83

Permit and Licenses Expense 2,880.00 3,024.00 3,175.20

Store Supplies Expense 29,406.00 30,876.30 32,420.12

Repairs and Maintenance 750.00 787.50 826.88

Total 121,377.00 127,445.85 133,818.14

 Chapter 5

MANAGEMENT AND ORGANIZATIONAL PLAN

Organization and Management Aspect

Forms of Business Enterprise

The proponents choose the sole proprietorship form business since

sole proprietorship is easy to handle. The proponents believed that a single

business can be efficiently and effectively manage by the owner.

Management and Organization Structure

Figure shows the existing organizational structure of the business.

Since it is a sole business organization, the owner will be the one responsible

for managing the business. And he will be the one to discuss the different

processes of its operation to his employee. And the employee is responsible

for rendering good service and preparing the orders of the customers.
 Manager/Owner

Cook Cashier

Fig. 2

The Greatest Siomai Proposed Organizational Structure

Management Qualifications and Functions

Job Description Qualifications Functions

 Responsible for
Manager/ Owner
managing the

business.

 Has an experience  Responsible for

in managing preparing the order

money. of the customer.

Cook
 College/ high

school level

 Hardworking

 Has good attitude

 Responsible on

handling the

Cashier money and render

good service.

Chapter 6
 FINANCIAL PLAN

This chapter shows the projected income statement, projected cash

flows, and projected balance sheet. It will determine the operation of the

business with profitability for the next three years.

Major assumptions

Market share is assumed 20.98% of the total unsatisfied demand per year.

1. Projection is computed using moving average method.

2. Depreciation is computed using straight line method.

3. Salaries and wages are assumed to increase by 5% per year.

4. Rent expense is assumed to increase by 5% per year.

5. Store supplies expense is assumed to increase by 5% per year.

6. Utensils expense is assumed to increase by 5% per year.

7. Utility expense is assumed to increase by 5% per year.

8. Repair and maintenance is assumed to increase by 5% per year.

9. Permit, taxes and licenses are assumed to increase by 5% per year.

10. Transportation expense is assumed to increase by 5% per year.

11. Drawing is assumed to be 60% of the first year of operation, 80% on

the second, and 90% on the third operation.

Total projected cost

The proposed business of the proponents needs P 99,657.67 for the
operation of the business.

Pre-operating expense

Permit and Licenses 2,880.00

Initial fixed cost

Equipment 5,450.00

Initial working capital for 1 month

Purchased material 26,800.26

Rent expense 2000.00

Store supplies expense 2,450.50

Utensils Expense 24.25

Utility expense 180.00

Repairs and Maintenance 62.50

Salaries and Wages 7,400.00 38,917.76

Total 47,247.76

Add: Cash on hand 2000.00

Total Investment Cost 49,247.76

THE GREATEST SIOMAI

 Projected Income Statement

For the Year ended December 31, 2019-2021

2019 2020 2021

Sales 645,120.00 758,589.00 881,175.00

Total Sales 645,120.00 758,589.00 881,175.00

Less : Total Cost of Goods Sold 439,900.33 485,120.87 533,866.44

Total Gross Profit 205,219.67 273,468.13 347,308.56

Total Operating Expenses 122,127 128,233.35 134,645.03

Net Income 83,092.67 145,234.78 212,663.53

THE GREATEST SIOMAI

 Projected Statement of Cash Flow

For The Year Ended December 31, 2019-2021

(In Philippine Peso)

2019 2020 2021

Cash Flow From Operating Activities

Net Income 212,663.53

83,092.67 145,234.78
Depreciation 1,417.33 1,417.33 1,417.33

Net Cash From Operating Activities 81,675.34 143,817.45 211,246.20

Cash Flow from Investing Activities

Purchase of Equipment (5,450.00) - -

Net Cash Used from Investing

(5,450.00) (0) (0)
Activities

Cash Flow from Financing Activities

Cash Contribution by Owner 49,247.76 - -

Drawings 49,855.60 101,664.35 170,130.82

Net Cash Used From Financing

(607.84) (101,664.35) (170,130.82)
Activities

Increase (Decrease) of Cash 75,617.49 42,153.10 41,115.37

Cash Balance, Beginning - 75,617.49 117,770.60

Cash Balance, Ending 75,617.49 117,770.60 158,885.97

THE GREATEST SIOMAI

Projected Balance Sheet

As of December 31, 2019-2021

(In Philippine Peso)

 Assets

Current Asset:

Cash 75,617.49 117,770.60 158,885.97

Non-current Asset:

Fixed Assets 5,450.00 5,450.00 5,450.00

Less: Accumulated Depreciation 1,417.33 2,834.67 4,252.00

Net Book Value 4,032.67 2,615.33 1,198.00

Total Asset 79,650.16 120,385.93 160,083.97

Owner's Equity

Capital Beginning 49,247.76 82,484.83 126,055.26

Net Income (Loss) 83,092.67 145,234.78 212,663.53

Total 132,340.43 227,719.61 338,718.79

Less: Drawings 49,855.60 101,664.35 170,130.82

Total Owner's Equity 82,484.83 126,055.26 168,587.97

Financial Ratios

Gross Profit Ratio

2019 2020 2021

 Gross Profit 205,219.67 273,468.13 347,308.56

Divide: Sales 645,120.00 758,589.00 881,175.00

Gross Profit
32% 36% 39%
Ratio
The Gross Profit Ratio is a determinant whether the proposed business will be

efficient in utilizing raw materials. In year 2018 the Gross Profit Ratio is 32%,

in year 2019 is 36%, and in year 2020 is 39%.

Net Profit Ratio

The net profit ratio is used to measure the overall profitability and hence it is

very useful to proprietors.

2019 2020 2021

Net Income 83,092.67 145,234.78 212,663.53

Divide: Sales 645,120.00 758,589.00 881,175.00

Net Profit Ratio 13% 19% 24%

Return on Investment

The return on investment is a performance measure used to evaluate the

efficiency of an investment.
 2019 2020 2021

Net Income 83,092.67 145,234.78 212,663.53

Divide: Ave. Total Asset 79,650.16 120,385.93 160,083.97

Return on Investment 104% 121% 133%

Payback Period

The length of time required to recover the cost an investment. The payback

period of a given investment or project is an important determinant whether to

undertake the position or project. Long payback periods are typically not

desirable for investment positions.

Initial investment 49,247.76

Divided by Net cash flow from operating activities 81,675.34

Payback period 6 months

ANNEX A

Rate of change in Demand

 *Formula: [Current year’s demand(CY) – previous year’s demand(PY)] ÷
previous year’s demand(PY) × 100.

= [206,769 – 188,369] ÷ 188,369 × 100 = 9.77%

= [226,966– 206,769] ÷ 206,769 × 100 = 9.78%

19.55%
÷ 2

Average rate of change in Demand 9.775%

Projected Demand

* Base year + average increase

Base Year Total

Rate of Average
Year Projected
Change Increase
Demand
(Demand)

2018 188,369 X 9.775% = 18413 + 188,369 = 206,782

2019 206,769 X 9.775% = 20212 + 206,769 = 226,981

2020 226,966 X 9.775% = 22186 + 226,966 = 249,152

Historical Demand

Target No. of No. Of Total Demand of

Approximate
Year Market% Consumptio weeks per Siomai per year
Population
(89%) n per week year (per set)
2016 1,543 x 89% = 1,373 X 2 X 52 = 142,820

2017 1,783 x 89% = 1,587 X 2 X 52 = 165,034

2018 1,854 x 89% = 1,650 X 2 X 52 = 171,606

ANNEX B

Rate of change in Supply

* [Current year’s supply (CY) – previous year’s supply (PY)] ÷ previous year’s
supply(PY) × 100

= [42,412 – 34,619] ÷ 34,619 × 100 = 22.51%

= [51,959 – 42,412] ÷ 42,412 × 100 = 22.51%

45.02%

÷ 2

Average rate of change in Supply 22.51%

Projected Supply

Base Year
Rate of Average Total Projected
Year
Change Increase Supply
(Supply)

2018 34,619 X 22.51% = 7793 + 34,619 = 42411

2019 42,412 X 22.51% = 9547 + 42,412 = 51959

2020 51,959 X 22.51% = 11696 + 51,959 = 63655

Historical Supply

Competitors 2016 2017 2018

Master Siomai 9,341 11,222 13,037

 Dimsum / Mall 3,447 4,294 5,141

Others/Streets 6,048 8,064 10,080

Total 18,836 23,580 28,258

2016 2017 2018

Master Siomai

(139*7*4*12)*0.2 (167*7*4*12)*0.2 (194*7*4*12)*0.2

= 9,341 = 11,222 = 13,037

Siomai King

(57*7*4*12)*0.18 (71*7*4*12)*0.18 (85*7*4*12)*0.18

=3,447 = 4,294 = 5,141

Others / Streets

(6*60*7*4*12)*0.05 (8*60*7*4*12)*0.05 (10*60*7*4*12)*0.05

= 6,048 = 8,064 =10,080

 20%,18%, and 5% are the estimated percentage that master siomai,

siomai king and on the street, can give for the whole Villa Magsanoc.

Target Market Rate

Total number of residents who eats siomai 96

and agreed to purchase our product Divided by ÷

Sample population 108

Target Market 89%