A Business Plan Presented to the Faculty of the
College of Business Administration Education
University of Mindanao
Davao City
In Partial Fulfillment of the Requirements in
THE ENTREPRENEURIAL MIND(GE11-11248)
Presented to
Prof. Yolanda Barcelona
University of Mindanao, Davao City
Presented By:
Barcenal, Clarisse
Mesina, Aldrin
Nabuya, Karla Jane
Olaer, Rica Babe
Oyao, Ritzel
Orillo, Bridget Irish O.
Patricio, Jon Audrey
Peloriana, Stephanie
Peralta, Ronald
January 2020
Table of Contents
Executive Summary………………………………………………………………1
Vision, Mission and Purpose...…………………………………………………..2
Business Description.…………………………………………………………….3 - 4
Marketing Analysis ..…………………………………..…………….…………..5 - 6
Competitor……………………………………...…………………..……………..7
Marketing Strategies …….……………….………………………………………8 - 9
Place, Promotion and People…………………………………………………….10 - 11
Process………………..…………………………………………………….……..12
Financial Plan………..…………………………………………………….……13 - 17
Executive Summary
The interest by consumers in the café industry is sweeping everywhere. Hence, Little
Einstein will be positioned to bring this to the city near the university area. Little Einstein is a
study hub that promotes the holistic development of the students and professionals which will
be their aid in their academic and career excellence and eventually, their global competence.
The study hub will offer comfortable environment for every student and professional who
needs a conducive and well-ventilated environment for studying. It will be accessibly located
at the Gravahan New Matina, Davao City.
In today’s setting, it is hard to pull an all-nighter just to get all your requirements done
in time. Moreover, it is also hard to pinpoint why most people find themselves more productive
when they are studying or working outside the comfort of their homes. Most students and even
professionals are present in most café typing away on their laptops or going through stacks of
reading as the power up through their deadlines. Furthermore, students prefer to have their
study group in a café. Nevertheless, not all cafes are made equal. There are some with unstable
internet, too few electrical outlets and loud crowds that might make it a little too distracting –
which is why the group proposed this kind of business to provide the potential customers an
environment well suited for their interest.
The study hub will ensure a comfortable environment and maximum productivity.
Hence, Little Einstein will provide learning ambiance, high-quality facility specifically studies
or work lounges, fast internet connection, and electronic gadgets for rent. Along with these
services, it will also offer variety of snacks and drinks
This business aims to help the potential customers take advantage of the hub to boost
their productivity in studying and working as well as to provide them delightful snacks and
drinks. It will be built so that customers will have a suitable place to finish their academic
related stuffs or any other paper works.
1
Vision
Little Einstein Study Hub envisions to be one of the most prominent, accessible and
innovative café businesses in the city.
Mission
Little Einstein Study Hub prides itself in being an innovative café business which
endeavors to provide the consumer a quality and comfortable lounging place mainly focused
for their studies or works combined with preparing them delightful foods at an affordable and
reasonable price.
Purpose
The business clearly underlines the quality of food and its safety for the costumer’s
satisfaction and contentment. Its purpose is to gain the customer’s trust and direct interaction
to the students or professionals through the business’ service, way of handling everything and
by sustaining the potential customer’s needs and wants.
The strategy of the group is the market penetrate. The study hub is committed in
improving the customer’s experience in ways they believe few in the industry has done. The
business plan to execute a broader marketing strategy, not simply to build name recognition
and awareness, but also to build deeper relationships with the target customers whom they
believe will help to promote the brand.
2
Business Description
Nature of the Organization
An organization is a group of people who are involved in pursuing particular goals.
People must work together and cooperate in order for them to be productive. The organization
involves division of work between employees and making sure that their tasks are aligned
towards the goal of the company. In order to achieve the goals of the company, there must be
competent management that will guide them in performing their job efficiently and effectively.
Products or Service
We will provide quality service to our customer by providing them the tools that they
need to make their study effective. We will also offer snacks and drinks to help customers boost
their energy in studying. These snacks include: Oreo cake, Spinach Pancakes, Dark Chocolate,
Nuts and Berries, Black forest, Red Velvet, and Donut. Also, Little Einstein will serve coffee
mainly: Americano, Mocha, Cappuccino, Matcha Latte, and Caramel Macchiato and milk tea
like Original Milktea, Black Pearl Milktea and Uji Matcha.
Various Plant and Office Equipment
Some of the devices and equipment in our business are laptop, printer, photocopy
machine, projector and air-conditioned room.
Size of the Proposed Business
It is considered a small business because it composes of more than 10 employees and
the size of its asset and equity capital is more than 3 million.
Future parties with whom contracts may be necessary
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Partnership Agreement: It outlines the relationship and individual obligation between two
or more partners, as well as their contributions to the business that they mutually agreed
upon.
Joint Venture Agreement: Spell out the mutual benefit, goals, obligation and financial
contributions of both parties involved in joint venture.
Non-disclosure Agreement: Can be helpful in order to avoid the leakage of confidential
information about your business to anyone or any party outside the organization. Also, it
gives the business owners a legal protection in case such information is shared.
General Employment Contract: Explicitly defines the relationship between an employer
and an employee, including compensation, benefits, terms and conditions, job description,
duration, grounds for termination and any other issues that relate to the business.
Small-business: Because it composes of more than 10 employees but less than 100
employees and was equally well served by a single small cell in order not to cause negligible.
Also, the size of its asset and equity capital is more than 3 million but less than 15 million.
The Little Einstein Study Hub is a business arranged by five entrepreneurs which operates as
partners.
Marketing Analysis
4
A. MARKETING GOALS AND OBJECTIVES
GOALS OBJECTIVES
To help students be more productive Provide customers with conducive study
place.
Provide customers with accessible web
resources and reliable study materials.
Serve a diverse and healthy menu.
To be the number one choice of the target Provide excellent customer service.
customers. Offer affordable and wholesome prices on
food options.
To establish a name in the industry. Intensify public awareness and product and
service promotion through additional
advertisements (e.g. social media blogs).
Continue to create positive feedback from
customers and take into account their
suggestions.
Improve customer loyalty.
The table above illustrates the marketing goals and objectives of the Little Einstein’s
Study Hub. The goals are the possible outcome of the business’ objectives. Goals
communicate the long-term and broad direction of the business while objectives identify
specific actions that employees can perform. These objectives guide the business to attain the
standards set by the entrepreneurs.
B. TARGET MARKET
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TARGET MARKET
Geographic Demographic Psychographic
Philippines Age Primary: 18-23 years’ old • Students who needs to
Davao City Age Secondary: Any age finish their school
Gravahan New Matina, Occupation: Students, Workers, works.
Schools/University etc. • Students who want to
Gender: Male and Female enjoy and relax with
peers.
COMPETITOR
6
The House of Venus Business Center that offers services such as accessible print,
photocopy and professional services, school supplies located in UM Matina Gravahan Beside
Minute Burger. However, the establishment is space is crowded, the table is not comfortable
enough when you prefer to study alone and not well ventilated which is differently compare
to Little Einstein. The table below shows the different services offered by The House of
Venus and The Little Einstein:
Services Little Einstein House Of Venus
Affordable Price/hour ✔ ✔
Fast Internet Connection ✔ ✔
Offer brewed coffee and ✔
pastries
With Reading ✔
books/thesis/newspaper
No corkage fees ✔ ✔
Rest Zone ✔
Comfortable and big space ✔
Air conditioned ✔ ✔
Well maintained ✔
establishment
Little Einstein Hub offers a more convenient services that customer needs and we are
guarantee you the comfortable and best hub for studying. We are open 24 hours from Monday
to Saturday 8:00 am located at University of Mindanao- Matina Gravahan beside Palawan
pawnshop.
MARKETING STRATEGIES
7
PRODUCT: Little Einstein’s Study Hub offers services wherein students can rent or avail
purchase items needed for finishing their school works. Moreover, it also serves snacks and
drinks which would help students to enhance their mental performance so as to concentrate
on their work.
ITEMS FOODS BEVERAGES
RENT AN ITEM PURCHASE SNACKS COFFEE
ITEMS
Laptop with Charger School Supplies Oreo Cake Americano
Spinach Pancakes Mocha
Dark Chocolates Cappuccino
Hygienic Items Nuts and Berries Matcha Latte
Black Forest Caramel Macchiato
MILKTEA
Red Velvet Original Milktea
Black Pearl Milktea
Donut Uji Matcha
The food served helps students to retain memory and have an active brain function.
Little Einstein’s Study Hub considers healthy food habit for students to stimulate their brain
activity and enhance brain retention and concentration. Other additional services such as
printing and photocopying are offered to minimize hassle problems.
PRICE: Little Einstein’s Study Hub target markets are high school, college and
undergraduate students. Although the study hub isn’t the first school friendly business near
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the university belt, it is rest assured that the costs will be based from the market price and is
affordable compared to the competitors. Price varies from table below.
Rate per Hours Room Laptop with Charger
1-5 hours Php 100 (20 x 5 = 100) Php 25
6-11 hours Php 160 (20 x 8 = 160) Php 50
12-17 hours Php 252 (18 x 14 = 252) Php 75
18-24 hours Php 357 (17 x 21 = 357) Php 100
Little Einstein’s Study Hub provides foods which improves brain activity and also,
diet and budgeted friendly. Study Hub helps students to be well-focused to attain their study
goals. Customers can request for different additional kind of food but will be charged with
additional price. The foods are shown in the table with their individual prices.
ITEMS FOODS BEVERAGES
RENT AN ITEM PURCHASE SNACKS COFFEE
ITEMS
Laptop with Charger School Supplies Oreo Cake - Php 99 Americano -Php 100
Spinach Pancakes - Mocha - Php 120
Php 49
Dark Chocolates - Cappuccino -
Php 89
Php 110
Hygienic Items Nuts and Berries - Matcha Latte -
Php 79
Php 120
Black Forest - Php 99 Caramel Macchiato
Php 120
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MILKTEA
Red Velvet - Php 89 Original Milktea -
Php 100
Black Pearl Milktea -
Php 110
Donut - Php 59 Uji Matcha -
Php 110
PLACE: Little Einstein’s Study Hub is a place where they can comfort and where students
can concentrate their attention in their school works. Little Einstein’s Study Hub will be located
at Gravahan New Matina, Davao City. The entrepreneurs had observed that putting study hub
near the university can attract students to come inside especially when deadlines are
approaching and homework are needed to be rushed. The location of the business is near the
university where students are often found which the Little Einstein’s Study Hub will be located
there for convenience.
PROMOTIONS: To strengthen public awareness and product/service promotion, the Little
Einstein’s Study Hub will apply 360 advertising and Loyalty Card Promotion. The 360
advertising is a combination of “above the line” and “below line” type of advertising and it s a
good way to promote business in the industry.
Above the Line Advertising: Includes the website of Little Einstein’s Study Hub where they
can search for information and check-out product and services’ prices. There will be a social
media for the customer to visit and post some comments and feedbacks. This type of
promotional activity will cover a wide range of existing and potential customer which can help
the business to earn shares in the market.
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Below the Line Advertising: Little Einstein’s Study Hub will be giving out flyers with
discounted coupons on selected food items. The discounted coupons will be used by the
customers to purchase food items.
Loyalty Cards: Loyalty Cards are given to “loyal customers”. Loyal customers are those
customers who purchase the business products and services over an extended period of time.
This will be presented to the registrar so the customer can avail the 10% discount in renting the
room or a laptop.
PHYSICAL ENVIRONMENT: The study rooms are equipped with shock and sound proof
glass walls and are well ventilated. Each room has soft cushions and is air conditioned. If
customers choose to stay overnight, well-maintained cubicle and hygienic kits are offered in
the place.
PEOPLE: The Little Einstein’s Study Hub does not only offer quality and affordable services
but the business also gives importance to the people who largely contributes for its growth and
betterment.
Marketing Management: The department who handles the development and planning of the
business growth and helps to identify potential customers in the market.
Staff: Are the asset of the business and are considered as a part of Little Einstein’s Study Hub’s
family.
Micro-Environment: It helps the Little Einstein’s Study Hub to be resilient and keeps the
business alive.
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PROCESS: Students or customers who wanted to stay at the Little Einstein’s Study Hub can
complete the following steps:
1. Present a valid ID in the Registrar or Counter to accommodate room. If customers are below
18 years old, they must present a waiver given by the Little Einstein’s Study Hub as a
confirmation that they were allowed to stay in the place.
2. Customers can bring their laptops or any school supplies to be used in making their school
projects. If they don’t have these tools, they can rent a laptop and purchase items in the counter.
3. Customers are allowed to bring their hygienic kits if they planned to stay overnight.
4. Customers can order foods in the place so they will not worry going outside the vicinity to
buy food.
5. Separate comfort rooms for male and female are utilized for privacy.
6. The rate per hour will be computed based on the time they checked in and checked out
including the purchasing of food and items and laptop rentals (if there are any).
Financial Plan
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A financial plan is a comprehensive statement of a business' long-term objectives for security
and well-being and a detailed savings and investing strategy for achieving those objectives.
This includes the financial objectives, sources of financing and estimated financial statements.
Financial Objectives
• Profitability. To maximize gains and exceed daily target sales.
• Liquidity. To easily convert assets into cash.
• Efficiency. To achieve revenue growth of at least 10% per year.
• Stability. To continue having a positive growth rate and positive cash flows.
• Cost minimization. To lower cost of operations and to be able to find loyal suppliers
providing lowest prices.
Sources of Financing
The business is a partnership of 5 individuals in which each part will invest 1.5 million. It will
yield a capital money of 7.5 million. The estimated total cost of the business is 6.5 million. The
total amount of expenses is break into the expenses for permits, purchase of equipment and
supplies, operations, salaries, and construction. The partners added an extra amount of money
for the unforeseen expenses worth 100000.00.
The following is the breakdown of the 6.5 million estimated expenses:
• Government application and permits - Php 15,500
• Purchase of Equipment - Php 1.4 million
• Purchase of supplies - Php 570,000
• Operations expenses - Php 584,500
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• Cost of labor - Php 680,000
• Construction - Php 3,250,000
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Little Einstein Study Hub
Income Statement for the 1st quarter of (year) 2020 2021 2022
Sales
Services 4668000 5023200 5776680
Products 505800 558900 642735
Total Sales 5173800 5582100 6419415
Cost of Sales
Cost of Service 112600 1512806 1736696
Gross Profit 5061200 4069294 4682719
Operating Expenses
Direct Costs
Accrued Expenses 126500 135400 158000
Permits and License Expense 15500 16000 16500
Advertising Expense 10000 15000 17000
Wages 680000 750000 800000
Maintenance Expense 5500 6000 7500
Light and Water Expense 25000 26000 28000
TOTAL EXPENSES 862500 948400 1027000
NET INCOME BEFORE INCOME TAXES 1940306 3120894 3655719
INCOME TAX (15%) 291045.9 468134.1 548357.85
NET INCOME 1649260.1 2652759.9 3107361.15
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The income statement shows the firm’s revenues, expenses and profits during a
reporting period, generally every quarter or year. As observed in the financial performance
above, the projected amounts were done through thorough analysis. The key metrics are the
cost of sales, operating expenses, earnings before tax, income tax, and the net income. We look
across the income statement at the year-over-year (YoY) change in each line item. The financial
objectives such as the profitability and efficiency were clearly achieved.
Little Einstein Study Hub
Balance Sheet Statement as of 2020 2021 2022
ASSETS
Current Assets
Cash 145800 295800 445800
Petty Cash Fund 32500 475000 625000
Supplies Unused 35600 506000 656000
Inventory 10500 255000 405000
Prepaid Insurance 50000 200000 350000
Total Current Assets 274400 424400 574400
Non-Current Assets
Property, plant and equipment 305000 455000 605000
Intangible Assets 12000 162000 312000
Furniture’s and Fixture 730106 853106 1003106
Gross Fixed Assets 1491000 1641000 1791000
Less Depreciation 46200 196200 346200
Net Fixed Assets 1444800 1594800 1744800
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Total Non-Current Assets 2491906 2641906 2791906
TOTAL ASSETS 2766306 2916306 3066306
LIABILITIES
Current Liabilities
Accounts Payable 155600 305600 455600
Income Tax Payable 291045.9 441045.9 591045.9
Customs Fees 5400 155400 305400
Medical Payable 10000 160000 310000
State/Provincial Tax Payable 5000 155000 305000
Total Current Liabilities 467045.9 617045.9 767045.9
Long-term Loans 150000 300000 450000
Total Non-current Liabilities 150000 300000 450000
EQUITY
Partners’ Capital(Total) 1649260.1 1799260.1 1949260.1
Partners Drawing 500000 650000 800000
Total Equity 2149260.1 2299260.1 2449260.1
TOTAL LIABILITIES AND
EQUITY 2766306 2916306 3066306
The balance sheet shows the financial position of the business at a specific point in
time. The largest asset of the business is its fixed assets comprising of the land and building.
The business also has a significant amount of cash in three consecutive years as estimated. This
signifies that the business will be in a good state in the years to come. The business will achieve
the stability objective for its projected net worth (total assets-total liabilities) increase annually.
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