The Feasibility of Proposed Rage Room: Rage 'n Release

A Feasibility Study

Presented to the Faculty of the

College of Business Administration

University of the Cordilleras

In Partial Fulfillment

of the Requirements for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

By

Albert Angelo P. Baloca

Mark Jenver C. Boragay

Tana A. Guinapon

Charles Aldwin P. Tambalque

Sushmina O. Thapa

Malkijah D. Valdoboyd

August 2023
 APPROVAL SHEET

This feasibility study entitled FEASIBILITY STUDY OF

PROPOSED RAGE ROOM: RAGE ‘N RELEASE IN BAGUIO CITY prepared
and submitted by Albert Angelo P. Baloca, Mark Jenver C.
Boragay, Tana A. Guinapon, Charles Aldwin P. Tambalque,
Sushmina O. Thapa, Malkijah D. Valdoboyd in partial
fulfillment of the requirements for the degree of BACHELOR OF
SCIENCE IN BUSINESS ADMINISTRATION, has been examined and
recommended for acceptance and approval for oral examination.

JOSEPHINE S. GALANZA, MBA

Adviser

Feasibility Committee

ROU JAY S. BALAGOT, MBA GABRIEL R.DE GUZMAN, MBA

Member Member

ANTHONY VANCE B. CULATON, MBA

Member

JOE-EL S. MARCELO, MBA

Chairperson
______________________________________________________________
PANEL OF EXAMINERS

JOE-EL S. MARCELO, MBA

Chairperson

ROU JAY S. BALAGOT, MBA GABRIEL R.DE GUZMAN, MBA

Member Member

ANTHONY VANCE B. CULATON, MBA

Member

ACCEPTED AND APPROVED in partial fulfillment of the

requirements for the degree of BACHELOR OF SCIENCE IN BUSINESS
ADMINISTRATION

GRACE R. TOBIAS, Ph.D.

Dean, College of Business Administration

ii
 ACKNOWLEDGEMENT

This study would not have been accomplished without

the support and help of several individuals who in their

own ways gave us the necessary help we need and guidance

to make it through our study. Their assistance made

everything we did possible.

We express our gratitude and sincere appreciation to

the following individuals:

To Mrs. Josephine S. Galanza, our Feasibility Study

Advisor, for being there; supporting, guiding and

assisting us all the way. For showing us that, we can

accomplish anything if we have the drive and

determination;

To the Chairperson and members of the panel for

their time for our oral defense and effort for looking

into details for the improvement of our study. Their

suggestions and constructive criticism gave the final

touches of our study;

To the respondents, who gave their time to answer

our questionnaires;

iii
 And to our parents and families, who are our main

source of motivation, the individuals who made us strong-

willed through-out the making of the study.

A.A.B.

M.J.B.

T.G.

C.A.T.

S.T.

M.V.

iv
 EXECUTIVE SUMMARY

Marketing Aspect
Rage and Release offers a unique and innovative
concept in Baguio City, providing individuals with a safe
and controlled environment to release stress and pent-up
emotions. The primary target market includes individuals
from various age groups, including teens, adults, and
middle-aged adults. The demand for such services has been
identified through market research and analysis, with an
increasing awareness of mental and emotional health and
interest for stress-relief outlets. Marketing strategies
will leverage social media and referrals to reach
potential customers.

Management Aspect
The proposed business, Rage and Release, will be
operated as a partnership with six owners. The name of
the business reflects its purpose, which is to offer a
controlled space for people to release their
frustrations. Each partner will contribute Php 200,000 as
initial capital. The regular operating hours will be from
1:00 PM to 10:00 PM daily, with the possibility of
overtime to accommodate high demand. A dedicated and
skilled workforce will be essential to ensure smooth
operations and customer satisfaction.

Technical Aspect
Rage and Release, located at Rainbow Bldg. Naguillan
Rd. Mrr Queen of Peace, Campo Filipino Baguio City, is
designed with safety and customer satisfaction in mind.
Sturdy materials and reinforced structures are used to
construct the rage rooms, containing activities within
the designated area. The design also minimizes the risk
of damage to surrounding structures and incorporates
safety barriers for additional protection. Proper
ventilation systems are installed to maintain good air
quality within the room, ensuring a safe and comfortable
environment for participants and staff. Additionally, a
waste disposal management system is in place to ensure
proper disposal of broken items.

v
Financial Aspect
Financial planning and management are critical for
the success of Rage and Release. The partners have agreed
to contribute a total of Php 1,200,000 as initial
capital, with each partner investing Php 200,000 through
cash and personal loans. The business's financial
analysis indicates a strong operating cash flow, ensuring
it can cover operational expenses and remain financially
stable.
Socio-economic Aspect
Rage 'n Release company aims to contribute to the
local community by addressing suppressed emotion and
providing a space for catharsis. By prioritizing public
well-being and emotional health, the business hopes to
set an example for other entrepreneurs in the business
community. Furthermore, the company's innovative approach
to recycling broken glass into glass powder contributes
to a cleaner environment, helping to clear streets and
creeks of unused glass bottles. In partnership with the
government's efforts to handle mental health challenges,
the company's services offer catharsis and a platform for
identifying individuals with mental illness, providing
psychological evaluations and talk therapy to help them
cope effectively.

vi
INTRODUCTION

In today's fast-paced and demanding world,

individuals often find themselves burdened with stressed

and pent-up emotions. Recognizing this growing need for

cathartic outlets, a proposed rage room emerges as a

potential solution to provide a safe and controlled

environment for people to release their frustrations.

This feasibility study aims to assess the viability and

potential success of establishing a rage room facility in

the local community. By examining market demand,

financial considerations, and the overall social impact,

this study seeks to determine the feasibility of this

unique venture. The insights gained from this study will

help proponents make informed decisions and potentially

contribute to the well-being of individuals within the

community. (Smith, J 2022)

The purpose of the rage room is to provide a safe

and fun venue for anyone feeling sadness, anxiety,

depression, anger and stress to vent or “blow off some

steam”. It seeks to help individuals to connect

with their internal anger and tension and vent it through

appropriate channels.

vii
 TABLE OF CONTENTS
PAGE
Title Page........................................i
Approval Sheet....................................ii
Acknowledgement...................................iii
Executive Summary.................................v
Table of Contents.................................viii
List of Table................................xi
List of Figures..............................xiii

MARKETING ASPECT

Introduction.................................1

Service Description .........................2

Competitive Advantage........................5

Location ....................................5

Target Market ...............................7

Determination of Sample Size.................8

Questionnaire Analysis.......................9

Demand Analysis .............................13

Supply Analysis .............................15

GAP Analysis.................................16

Factors Affecting the Market ................17

Pricing Strategy.............................18

Penetration Strategy ........................20

Promotional and Advertising Strategies ......20

Summary of Costs for Marketing Aspect........21

viii
MANAGEMENT ASPECT

Introduction.................................22

Company Name.................................23

Company Logo.................................23

Company Philosophy ..........................24

Company Vision & Mission.....................25

Form of Ownership ...........................26

Capital Contribution.........................27

Organizational Chart.........................28

Job Roles and Responsibilities...............28

Work Schedule and Day-Offs...................37

Hiring Process...............................37

Employee Benefits............................43

Company Policies.............................47

Gantt Chart..................................50

Permits and Licenses.........................52

Summary of Cost for Management Aspect........53

TECHNICAL ASPECT

Introduction.................................54

Services Offered ............................55

Safety and Fire Exits........................61

Service Process..............................64

Location.....................................65

Business/ Plant Layout.......................66

Business Size and Capacity...................68

Lease Expense................................71

ix
 Organizational Costing.......................71

Utilities Computation .......................82

Waste Disposal...............................83

Summary of Costs for Technical Aspect .......84

FINANCIAL ASPECT

Introduction.................................85

Major Assumptions............................86

Capital Contribution/Source of Financing.....93

Statement of Financial Performance...........96

Statement of Change in Equity................99

Significant Accounting Policies..............99

Commitments and Contingencies................105

Notes on Financial Statement.................106

SOCIO-ECONOMIC ASPECT

Introduction.................................117

Local Community..............................118

Business Community...........................118

Environment..................................118

Government...................................118

REFERENCES........................................120

APPENDICES

Questionnaire................................122

Permits and Licenses.........................123

Curriculum Vitae ............................128

x
 LIST OF TABLES

Table No. Table Title Page

1 Familiarity.............................10

2 Willingness.............................10

3 Pricing.................................10

4 Frequency ..............................11

5 Competitors.............................11

6 Significance............................12

7 Experience..............................12

8 Benefits................................13

9 Historical Population of Demand.........14

10 Projected Demand........................15

11 List of Indirect Competitors............16

12 Summary of Cost Under Marketing Aspect..21

13 Contribution of Partners ...............27

14 Job Roles and Responsibilities .........28

15 Employee Benefits.......................43

16 Company Policies........................48

17 Monthly Schedule........................51

18 Business Permits and Licenses...........52

19 Summary of Cost Management Aspect.......53

20 Plant Size..............................68

21 Lease Expense...........................69

22 Construction Materials..................70

23 Furniture...............................73

xi
24 Equipment...............................74

25 Professional Expenses...................77

26 Summary of Construction Cost............78

27 Office Supplies.........................78

28 Operational Supplies....................79

29 Cleaning Tools..........................80

30 Cleaning Supplies.......................80

31 Miscellaneous Fees......................81

32 Energy Consumption......................82

33 Utilities Expense.......................82

34 Summary of Cost Technical Aspect .......84

35 Partnerships............................88

36 Yearly Revenue..........................89

37 Capital Contribution....................93

38 Start-up Cost...........................94

39 Pre-Operating Statement of Financial

Performance ............................96

40 Pre-Operating Statement of Financial

Position................................96

41 Pre-Operating Statement of Financial

Cash Flow...............................97

42 Projected Statement of Changes in

Owner’s Equity..........................97

43 Supplies................................100

44 Property and Equipment..................101

45 Accrued Expenses........................101

46 Revenue from Services and Other Income..102

47 Expenses by Nature......................103

xii
48 Notes...................................106

49 Test of Profitability, Liquidity and

Solvency................................110

50 Payback Period..........................114

LIST OF FIGURES

Figure No. Figure Title Page

1 Satellite map of Business Location......6

2 Business Location.......................6

3 Shatter Point Package...................19

4 Solo Smash Package......................19

5 Rage Warrior Package....................19

6 Business Logo...........................23

7 Organizational Chart....................28

8 Working Schedule........................37

9 Liability Waiver........................58

10 Service Process.........................64

11 Bird’s Eye View of Location.............65

12 Business Layout.........................66

13 Business Floor Plan.....................66

14 Business Space..........................67

xiii
 Marketing Aspect 1

MARKETING ASPECT

Marketing is a way to connect what products and

services you have to offer with customers who want and

need such products and services. It is multi-faceted,

starting with researching your target market and how best

to deliver the message to coming up with a plan to

execute your promotion via various marketing media. The

goal is to develop a strategy to create, price and

distribute your products and services for an exchange

that will satisfy both your and your customers’

objectives. (Trish Green)

The idea of this research project was based on real

life situations wherein people experience stress and

frustrations that affect their daily basis of living.

Through observation, personal experience and information

gathering, the proponents decided to come up with a

service that could help the people lessen that stress and

life frustrations. Smash it will cater through the needs

and wants of customers to satisfy them by the service

offered.
 Marketing Aspect 2

SERVICE DESCRIPTION AND FEATURES

Rage ‘n Release Rage room will be a new business in

Baguio City that will provide a safe, fun environment for

anyone who's experiencing normal feelings of stress and

anger to release these emotions acceptably. The rage

rooms will consist of make-believe living rooms and

kitchens with replicas of furniture and broken electronic

gadgets such as televisions, DVDs, chairs, tables, desks

and other breakable items. The rooms can also be an

almost empty space with graffiti across the walls. Our

stress relief services include throwing, hitting,

smashing breakable items, punching and screaming.

Just like any other service, appointments need to be

booked. Slot times vary, but the typical session is

around 15 to 20 minutes. Clients can also purchase

packages to share sessions with their friends or

customize room setup. Packages specify the amount of

time given for clients to spend in the rage room, the

number of individuals, the kinds and numbers of objects

to be smashed, the tools to be used, and any additional

equipment. A typical package takes 20 to 30 minutes to

complete and contains approximately 50 breakable objects

such as glasses, dishes, appliances, and gadgets.

 Marketing Aspect 3

Before entering the rage room, clients must sign a

safety waiver and put on protective gear such as a hard

hat, goggles, and gloves. Then they will be placed in a

private room with reinforced walls and given pieces of

junk like broken or outdated household items and your

smash tool of choice.

BENEFITS:

Channeling anger can be difficult for many people,

especially when they begin to lose control of the

situation. These rage rooms provide a secure way for

releasing emotions. The entire experience is designed to

help people gain a sense of control and relief from their

anger and stress.

1. Gives a Sense of Empowerment Anger can stem from

a sense of helplessness and lack of control over a

situation. Finding a way to channel your anger, even

briefly, can help you feel like you’re reclaiming your

emotions. As a result, you may feel more empowered and

stable for understanding and managing the situation.

2. No Fear of Getting Judged

Anger and rage aren’t socially acceptable emotions,

and expressing them might feel counterintuitive to

everything we’re taught. Rage therapy offers a safe

 Marketing Aspect 4

alternative to focus on these emotions without judgment.

You can choose a rage room to shout, break and explode,

no one will be standing to pass a comment.

3. A safe space to explore emotions

Piled up anger is always harmful for both you and

people associated with you. Rage therapy provides the

opportunity to explore your emotions in a safe and

contained way. There are boundaries in place that help

you manage your venting proactively and safely.

4. It might inspire you to take a new step.

Closure is often necessary for someone to be able to

move through and beyond a challenging emotional period.

After letting it all go in a rage room, you might feel

like you have the closure you need to make changes in

your life.

5. It can provide a bonding experience If you choose to

bring friends or loved ones to a rage room with you, it

practically becomes a team-building exercise. You might

even opt to share the experience with people you’re in

tension with! Maybe all you need to get to the other side

of your argument is some time raging.

 Marketing Aspect 5

COMPETITIVE ADVANTAGE

Rage rooms are becoming quite popular, and given the

current world situation and personal circumstances,

people are stressed. The market is expanding as a result

of the increasing demand for anger management centers

among youngsters and adults. We are poised to take

advantage of this trend by providing far-reaching anger

management solutions to our clients. Currently in Baguio

City, there's no business for rage rooms. If advertised

well business will boom.

LOCATION

The rage room business will be conducting its

operation in Baguio City, particularly in the J Rainbow

Bldg. Naguillan Rd. Mrr Queen of Peace, Campo Filipino

Baguio City. This city is a great place where you can

quickly breathe out and relieve your stress from a long-

tiring work/ school day.

 Marketing Aspect 6

Figure 1 – Satellite map of Business Location

Figure 2 – Business Location

 Marketing Aspect 7

TARGET MARKET

Target market is a particular segment in which the

marketing campaign is focused. It is a group of people

recognized as the most likely potential customers because

of their shared characteristics and demographics. The

target market of the proposed business is from young

adults, aged 18-39 and middle-aged adults 40-45.

According to the American Psychological Association

(APA), those people aged 18-33 years old suffer the

highest levels of stress. According to a comprehensive

survey conducted by the Philippine Statistics Authority

in 2021, it was found that a staggering 82% of Filipino

workers reported feeling stressed in their jobs. The

study involved a large sample size, encompassing a

diverse range of industries and job positions across the

country.

Market segmentation is the sub-dividing of markets

into homogeneous subsets of customers, where any subset

may conceivably be selected as a market target to be

reached with a distinct marketing mix. (Philip Kotler).

This method was applied in determining the potential

target market to optimize marketing and sales effort of

the business.
 Marketing Aspect 8

DETERMINATION OF SAMPLE SIZE

The sample size was determined by obtaining the

total population of teens aging from young adults, aged

18-39 and middle-aged adults 40-45. The proponents used

the data gathered from the Philippine Statistics

Authority (PSA) for the population of the different age

groups in Baguio City. The provided population for the

year 2020 was used as basis for forecasting. The

forecasted population of year 2023 is 392,262 which was

used to determine the sample size. 63% of the total

population are aged 18-45 – 247,517.

Slovin's formula was used to derive the sample size

with a 5% margin of error. The computation is as follows:

N
Slovin’s formula: n = 2
1+ Ne

whereas:

n = no. of samples

N = total population

e = error margin / margin of error

 Marketing Aspect 9

N
Computation: n = 2
1+ Ne

247,517
n = 2
1+ ( 247,517 ) ( 0.5 )

n = 400 respondents

The proponents were able to acquire a total of 400

to be the sample size and respondents. The 400

respondents would be surveyed using both printed

questionnaires and an online Google form. The data

obtained would be treated with confidentiality and

absolute respect.

QUESTIONNAIRE ANALYSIS

The proponents distributed questionnaires to a total

of 400 respondents in Baguio City, from young adults,

aged 18-39 and middle-aged adults 40-45. To collect the

data, the proponents utilized paper. This method allowed

flexibility for the respondents to complete the

questionnaires at their convenience, ensuring more

accurate and reliable responses. The questionnaire helped

the proponents in determining the outcome of the proposal

whether the prospect customers would want the business to

operate. The analysis and interpretation of each data

point gathered from all survey questionnaires are

discussed below.
 Marketing Aspect 10

Table 1. Familiarity

Have you heard of the concept rage room before?

Sample Indicator Responses Percentage

Yes 295 73.75

No 105 26.25

Total 400 100%

Table 2. Willingness

If yes, are you willing to avail such service if one

would be available in Baguio City?

Sample Indicator Responses Percentage

Yes 353 88.25

No 47 11.5

Total 400 100%

Table 3. Pricing

How much are you willing to pay for a rage room session?

Sample Indicator Responses Percentage

Php 299-399 276 69

Php 400-599 74 18.5

Php 600-799 50 12.5

Total 400 100%

 Marketing Aspect 11

Table 4. Frequency

How often would you visit a rage room?

Sample Indicator Responses Percentage

Very often 110 27.5

(12 times a month)

Often 100 25
(10 times a month)

Somewhat often 105 26.5

(8 times a month)

Not Often 85 340

(4 times a month)

Total 400 100%

Table 5. Competition

Are you aware of a business that offers stress-reducing

programs?

Sample Indicator Responses Percentage

Yes 207 51.75

(Spa)
(Gym)
(Shooting Range)
(Adventure Park)

No 193 48.25

Total 400 100%

 Marketing Aspect 12

Table 6. Significance

Do you think a rage room will help you relieve anger and
frustration?

Sample Indicator Responses Percentage

Yes 326 81.5

No 74 18.5

Total 400 100%

Table 7. Experience

Would smashing things help you release your suppressed

emotion?

Sample Indicator Responses Percentage

Yes 350 87.5

No 50 12.5

Total 400 100%

Table 8. Benefits
 Marketing Aspect 13

What do you think are the potential benefits of a rage

room experience? (Select all that applies)

Sample Indicator Responses Percentage

Stress Relief 260 65

Physical Exercise 102 25.5

Fun and 166 41.5

Entertainment

Catharsis 53 13.25
(Emotional
Release)

Total 581 100%

DEMAND ANALYSIS

Demand Analysis is used to project the demand of

Rage ‘n Release for the next five years. The forecasting

used in the demand analysis makes use of the Least

Squares Method.

The next section provides the data computed for the

population demand of Baguio City which are data gathered

from Philippine Statistics Authority.

Table 9. Historical Data of Demand Population

 Marketing Aspect 14

Year (n) Population (y) x X2 xy

2019 231,863 -2 -4 -463,726

2020 235,681 -1 -2 -235,681

2021 239,562 0 0 0

2022 243,507 1 1 243,507

2023 247,517 2 4 495,034

Total 963,365 0 10 39,134

LSM FORMULA: Y = a + bx

Where: a= Σ y / n

b= Σ xy / Σ x 2

Σy
a= = 963,365 = 192,673
n 5

Σ xy 39,134
b= 2 = = 3913.4
Σx 10

Exhibited in the table is the Historical Population

of Demand which shows that from the year 2019 to 2023,

there is a total population of 963,365. The X2 is

computed by getting the value of X indicated in the table

and multiplying the number by itself. While the xy is the

product of the value of x and the population is

represented as the variable y. 39,134 is the total sum of

variable xy that is between 2019 to 2023.

Table 10. Projected Demand

 Marketing Aspect 15

Year a=bx Projected Demand

2024 192,673 + 3913.4 (5) 212,240

2025 192,673 + 3913.4 (6) 216,153

2026 192,673 + 3913.4 (7) 220,067

2027 192,673 + 3913.4 (8) 223,980

2028 192,673 + 3913.4 (9) 227,894

Total 1,100,334

As shown in the table, the total projected demand

for the year 2024-2028 is 1,100,334. This signifies that

there is an increased population growth throughout the

year 2019-2023. There is a total population growth

increase which is a significant factor for the increased

demand for rage rooms.

SUPPLY ANALYSIS

Supply Analysis is a detailed review of the inputs

and outputs of a process that is employed to assess how

the available quantity of a product is affected by

changes in demand, input factors and production

techniques. Supply Analysis is often used to make key

policy decisions by manufacturing business managers since

it gives them insights into how shifts in production are

likely to influence market supply. (Hayes, 2017)

 Marketing Aspect 16

The proposed business does not have supply analysis

since the business has no direct competitor in Baguio

City. Indirect competitors may include recreational

facilities like fitness centers and gyms, sports clubs,

archery or shooting ranges and adventure parks but it

doesn’t directly affect the supply.

Table 11. List of Indirect Competitors

Indirect Customer Operating days

Competitors satisfaction (annually)

Index

Spa 5.0 260 days

Gyms 4.0 260 days

Sports clubs 3.5 260 days

Shooting ranges 3.0 260 days

Adventure parks 4.5 260 days

Total 20 1,300 days

GAP ANALYSIS

A gap analysis is the process companies use to

compare their current performance with their desired,

expected performance. This analysis is used to determine

whether a company is meeting expectations and using its

resources effectively. A gap analysis is the means by

which a company can recognize its current state—by

 Marketing Aspect 17

measuring time, money, and labor—and compare it to its

target state. By defining and analyzing these gaps, the

management team can create an action plan to move the

organization forward and fill in the performance gaps.

(Hayes, 2022)

The proposed business does not have a gap analysis

and supply analysis because it has no direct competitors

that can affect the demand of the business.

FACTORS AFFECTING THE MARKET

1. Price

Price is one of the most important factors that

affects the market demand. Product and/or service have

different sensitivity to changes in price. In a dynamic

environment, inflation may affect the cost of the

necessary materials, supplies and equipment during

operation. The economic environment also influences

pricing in the sense that during a boom period, high

prices may be fixed in order to meet rising production

costs.

2. Trend

Trends can alter how in-demand the service is and

whether the demand curve will shift. People's curiosity

 Marketing Aspect 18

can drive company demand, and differing personalities

might influence shifts in an individual's preferences.

Increasing or declining demand helps organizations to

adopt and implement new or alternatives strategies in

order to be more competitive.

3. Population

Increase in population increases the demand for

goods / service in the market. Every year in Baguio

City, the population is increasing. New business will

arise and those existing ones have to be more

competitive, developing strategies to cope with changes

and stay long in the field.

4. Government Regulations

The business should comply with the set of rules and

regulations imposed by the city government. It should

conduct the operations in a safe manner that will not

cause any harm to the society and environment.

PRICING STRATEGY

The cost of services offered by the Rage ‘n Release

is a price per head service and is based on what is

obtainable in the location and the market. This

considers different packages with the number of items to

be broken in a specific amount of time given.

 Marketing Aspect 19

Figure 3 – Shatter Point Package

Figure 4 – Solo Smash Package

Figure 5 – Rage Warrior Package

 Marketing Aspect 20

PENETRATION STRATEGY

The penetration strategies implemented for the Rage

‘n Release Rage Room considers offering competitive

prices and providing service quality which includes

studying the needs of the market, providing a reasonable

pricing and advertising assertively. To make the

business known competitively, consistency in delivering

what is promised is a necessity.

PROMOTIONAL AND ADVERTISING STRATEGY

Rage ‘n Release will implement these certain

promotional and advertising strategies to increase the

demand and introduce the services offered to the

potential clients and target market:

1. Social Media Marketing

Social media platforms including Facebook, Instagram

and Twitter can aid in building the business’ name and

increase its sales by creating captivating contents,

boosting business awareness and connecting with

consumers.
 Marketing Aspect 21

2. Referral

Positive information, discussions and reviews builds

a positive business stature. According to Lanai

Moliterno, word of mouth shows the value of what you are

building.

3. Loyalty Discount Program

This program is designed to reward recurring

customers for their continued support and commitment to

our rage room business. It offers exciting benefits,

exclusive perks and significant discounts to make the

rage room experience even more thrilling affordable and

memorable.

SUMMARY OF COST (MARKETING ASPECT)

Table 12. Summary of Costs Under Marketing Supply

Schedule Marketing Cost

Advertisements

Monthly Social Media Php 500.00

ad boost

Total Cost Php 6,000

 Management Aspect 22

MANAGEMENT ASPECT

Management embraces all duties and functions that

pertain to the initiation of an enterprise, its

financing, the establishment of major policies, the

provision of all necessary equipment, the outlining of

the general form of organization under which the

enterprise is to operate and the group of officials in

primary control of an enterprise. (Kimball and Kimball)

Management is guiding human and physical resources

into dynamic organization units which attain their

objectives to the satisfaction of those served and with a

high degree of morale and sense of attainment on the part

of those rendering service. (American Management

Association)
 Management Aspect 23

COMPANY NAME: Rage ‘n Release

Using a clear and simple word play, the main idea of

the business is conveyed in the name. Rage is to

recognize the negative emotions suppressed inside. ‘n is

a shortened word for “and,” making it informal. Release

is to let lose all the stress, anger and frustrations you

are feeling, freeing yourself from those emotions.

Overall, the name "Rage 'n Release" captures the duality

of the experience, acknowledging the presence of rage

while emphasizing the therapeutic aspect of releasing and

letting go.

COMPANY LOGO

Figure 6 – Logo for the Rage n’ Release Company

 Management Aspect 24

The gray background represents neutrality and balance in

life. Grey is a mix of black and white, meaning it likely

comes from being in the shade of white and black. This

mix also symbolizes the emotions people experience when

they need a rage room, trying to find a balance between

rage and tranquility. The bricks represent a metaphor for

a challenging obstacle or obstruction in life.

Furthermore, the struggle we face and the obstacles we

overcome often end up defining who we are. The broken

glass symbolizes breaking through emotional barriers and

overcoming obstacles. The bold uppercase letters in the

logo convey strength, assertiveness, and power. They

suggest that the rage room is a place where people can

express themselves boldly and without holding back.

 Management Aspect 25

PHILOSOPHY

Our rage room business embraces the philosophy of

empowering individuals to channel their frustrations into

a constructive and cathartic outlet, promoting emotional

well-being and personal growth. We believe in creating a

safe and controlled environment that encourages self-

expression, stress relief, and the pursuit of inner

balance.

VISION

To break the mental health stigma in our society and

to promote mental awareness for individuals and families.

MISSION

Our mission is to provide a secure and supportive

environment where our clients can express their negative

feelings and frustration through the creative release of

smashing things, promoting personal development and

empowerment.

Objectives:
 Management Aspect 26

● To determine the effectiveness of rage room in

relieving stress

● To determine if smashing and breaking things helps

lessen frustration

● To determine if anger displacement is effective as a

short-term anger management strategy

FORM OF OWNERSHIP

General Partnership

A General Partnership (GP) is an agreement between

partners to establish and run a business together. It is

one of the most common legal entities to form a business.

In a general partnership, each partner is accountable for

the company and are subject to unlimited liability for

all business debts. General partnerships allow

participants to arrange their enterprises in whatever way

they determine fit. This enables those partners to have

more direct control over operations. Each partner reports

their share of the business's profits and losses on their

individual tax returns and pays any taxes owed. The

partnership itself isn't subject to taxation.

 Management Aspect 27

The proponents will use this kind of partnership to

have an easy assessment on the business operation and

control on its management. General partnerships provide

the partners with a more flexible method of structuring

their business.

CAPITAL CONTRIBUTION

The Capital amounting to Php 1,200,000 will be

gained through personal funds. Each partner will

contribute a total of Php 200,000.

Table 13. Contributions of Partners

Name of Owners No. of Amount

shares
owned

Baloca, Albert 1 Php 200,000.00

Boragay, Mark Jenver 1 Php 200,000.00

Guinapon, Tana 1 Php 200,000.00

Tambalque, Charles 1 Php 200,000.00

Aldwin
 Management Aspect 28

Thapa, Sushmina 1 Php 200,000.00

Valdovoyd, Malkijah 1 Php 200,000.00

Dacsig

Total Php 1,200,000.00

ORGANIZATIONAL CHART

Figure 7 – Organizational Chart for the Business

 Management Aspect 29

Officers and Personnel

Table 14. JOB ROLES AND RESPONSIBILITIES

Job Roles and Job Description Job Qualifications

Responsibilities and Requirements

Operations ● Oversee all aspects ● Bachelor's

Manager (1) of the rage room degree in
operations, business
Monthly salary: including administration
scheduling, or a related
Php 21,000 staffing, and field.
facility ● Previous
Salary per year:
maintenance. experience in
Php 252,000 ● Develop and operations
implement management or
operational a similar
policies and role.
procedures to ● Strong
ensure smooth and leadership and
efficient organizational
operations. skills.
● Manage inventory ● Excellent
and equipment, problem-
ensuring solving and
availability and decision-
proper maintenance. making
● Monitor customer abilities.
feedback and ● Knowledge of
implement safety
improvements to protocols and
enhance the regulations.
customer ● Good
experience. communication
● Coordinate with and
other departments interpersonal
to ensure seamless skills.
operations and
resolve any issues
that may arise.

Assistant Manager ● Support the ● High school

Operations (1) operations manager diploma or
in overseeing day- equivalent; a
 Management Aspect 30

Monthly salary: to-day operations bachelor's

of the rage room. degree is
Php 18,000
● Assist with preferred.
Salary per year: scheduling staff, ● Previous

Php 216,000 managing inventory, experience in

and maintaining the a supervisory
facility. or assistant
● Handle customer manager role.
inquiries and ● Strong
complaints, organizational
ensuring a high and
level of customer multitasking
satisfaction. skills.
● Train and supervise ● Excellent
employees to ensure communication
they adhere to and
company policies interpersonal
and procedures. abilities.
● Collaborate with ● Ability to
the operations work well
manager to develop under pressure
and implement and resolve
operational conflicts.
strategies. ● Knowledge of
safety
protocols and
customer
service
principles.

Marketing Manager ● Develop and ● Bachelor's

(1) implement marketing degree in
strategies to marketing,
Monthly salary: promote the rage business
Php 21,000 room and attract administration
customers. , or a related
Salary per year:
● Conduct market field.
Php 252,000 research to ● Proven
 Management Aspect 31

identify target experience in

demographics and marketing,
competitive trends. preferably in
● Plan and execute the
advertising and entertainment
promotional or leisure
campaigns through industry.
various channels. ● Strong
● Manage social media knowledge of
accounts and online digital
presence to engage marketing
with customers and tools and
build brand techniques.
awareness. ● Excellent
● Analyze marketing analytical and
data and evaluate problem-
campaign solving
effectiveness. skills.
● Creative
thinking and
ability to
generate
innovative
marketing
ideas.
● Strong
communication
and
interpersonal
skills.

Sales Officer (1) ● Actively seek out ● High school

and engage diploma or
Monthly salary: potential customers equivalent; a
Php 15,000 to promote and sell degree in
rage room sales or
Salary per year:
experiences. marketing is a
Php 180,000 ● Provide information plus.
about packages, ● Proven
 Management Aspect 32

pricing, and any experience in

current promotions. sales,
● Maintain customer preferably in
databases and a customer-
follow up on leads facing role.
to convert them ● Excellent
into sales. communication
● Collaborate with and
the marketing team negotiation
to develop sales skills.
strategies and ● Goal-oriented
campaigns. with a track
● Meet or exceed record of
sales targets on a meeting or
regular basis. exceeding
sales targets.
● Ability to
work
independently
and in a team
environment.
● Strong
interpersonal
skills and the
ability to
build rapport
with
customers.

Finance Manager ● Manage financial ● Bachelor's

(1) Monthly activities, degree in
salary:
including finance,
Php 21,000 budgeting, accounting, or
forecasting, and a related
Salary per year:
financial field.
Php 252,000 reporting. ● Professional
● Monitor cash flow certification
and manage accounts (e.g., CPA,
payable and CFA) is a
 Management Aspect 33

receivable. plus.
● Prepare financial ● Proven
statements and experience in
reports for financial
management review. management or
● Conduct financial accounting.
analysis to ● Strong
identify areas for knowledge of
improvement and financial
cost-saving principles and
opportunities. practices.
● Ensure compliance ● Excellent
with financial analytical and
regulations and problem-
company policies. solving
skills.

● Attention to
detail and
accuracy.

Receptionist/ ● Greet and welcome ● High school

customers, diploma or
Cashier (1) providing equivalent.
information about ● Previous
Monthly salary:
rage room experience in
Php 12,000 experiences and a customer

Salary per year: pricing. service or

● Handle customer receptionist
Php 144,000
inquiries, role.
complaints, and ● Excellent
reservations. communication
● Operate the cash and customer
register and handle service
cash transactions skills.
accurately. ● Proficient in
● Maintain a clean using cash
and organized registers and
reception area. handling cash
transactions.
 Management Aspect 34

● Strong
 Assist with organizational
administrative and
tasks, such as multitasking
answering phone abilities.
calls and ● Basic computer
scheduling skills.
appointments.

Life Coach (2) ● Provide guidance ● Certification

and support to or training in
Monthly salary: customers before life coaching
Php 18,000 and after rage room or a related
sessions. field.
Salary per year:
● Help clients set ● Previous
Php 216,000 goals and develop experience in
coping strategies coaching or
for managing stress counseling.
and anger. ● Excellent
● Conduct individual listening and
or group coaching communication
sessions to address skills.
specific needs. ● Empathetic and
● Create and nonjudgmental
implement programs approach.
to promote personal ● Strong
development and problem-
emotional well- solving and
being. interpersonal
abilities.
● Maintain ● Knowledge of
confidentiality and anger
adhere to ethical management
guidelines. techniques and
stress
reduction
strategies.
 Management Aspect 35

Medical Aid (1) ● Provide first aid ● Certification

assistance to in first aid,
Monthly salary: customers in case CPR, and AED.
Php 18,000 of injuries or ● Previous
accidents. experience as
Salary per year:
● Assess and a medical aid
Php 216,000 stabilize or in a
customers' similar role.
conditions until ● Knowledge of
further medical first aid
help arrives if techniques and
needed. emergency
● Maintain a clean response
and stocked first procedures.
aid kit. ● Ability to
● Educate staff on remain calm
basic first aid and composed
procedures and in stressful
emergency situations.
protocols. ● Good
communication
● Keep records of and
incidents and interpersonal
report any safety skills.
concerns to the
operations manager.

Housekeeper (3) ● Clean and sanitize ● Previous

rage rooms, common experience in
Monthly salary:
areas, and housekeeping
Php 12,000 restrooms. or janitorial

Salary per year: ● Dust, vacuum, and services.

mop floors. ● Knowledge of
Php 144,000 ● Replenish supplies, cleaning
such as paper techniques and
towels, soap, and use of
 Management Aspect 36

cleaning products. cleaning

● Empty trash bins equipment.
and dispose of ● Attention to
waste properly. detail and
● Report any thoroughness
maintenance or in cleaning
repair needs to the tasks.
operations manager. ● Ability to
work
independently
and
efficiently.
● Physical
stamina to
perform
cleaning
tasks.

Security Guard: ● Monitor and patrol ● High school

(1) the premises to diploma or
prevent theft, equivalent.
Monthly salary: vandalism, or ● Previous
Php 13,500 unauthorized experience as
access. a security
Salary per year:
● Enforce safety and guard or in a
Php 162,000 security related field.
regulations. ● Security guard
● Respond to alarms certification
or incidents and or training.
take appropriate ● Knowledge of
actions. security
● Maintain procedures and
surveillance protocols.
systems and report ● Strong
any suspicious observation
activities. and decision-
● Provide assistance making skills.
and guidance to
● Good
customers and
 Management Aspect 37

employees as
communication
needed.
and
interpersonal
abilities.

WORK SCHEDULE AND DAY-OFFS

Figure 8 – Working Schedule

 Management Aspect 38

HIRING PROCESS

In human resource management, “recruitment” is the

process of finding and hiring the best and most qualified

candidate for a job opening, in a timely and cost-

effective manner. It can also be defined as the “process

of searching for prospective employees and stimulating

and encouraging them to apply for jobs in an

organization.” Luenendonk (2021)

Here are eight steps in our selection process for hiring

employees:

1. Application

This phase in our selection process is sometimes

seen as passive from our hiring team side – we just wait

for candidates to respond to our job ad. After that, we

have qualifying questions that don't require complex or

long answers. Some of these questions could require

simple yes/no answers with the wrong answer automatically

disqualifying a candidate – this is something that can

also easily be done via recruitment software.

2. Resume Screening
 Management Aspect 39

Now that we have wrapped up the application phase of

the employee selection process, we have a collection of

resumes or CVs to sift through and filter those deemed

suitable for a screening call. What we will need to do

now is go through resumes one by one, whether manually or

software-assisted, and identify prime candidates. This is

one of the most traditional employee selection methods to

move candidates to the next step by identifying and

disqualifying those who don’t quite fit what we’re

looking for.

3. Screening Call

The screening call, or phone screen, is among the

initial hiring stages where we shortlist applicants. The

purpose of this call is to establish whether the

candidate is truly interested in the job and (at least)

minimally qualified to do it successfully. This way, only

the best applicants will go to the next, stricter (and

more expensive) hiring stages, like assessments and in-

person interviews, saving our team time and money.

In this phase we ask questions and listen carefully

to the candidate. Determine whether their attitude suits

our company and whether their answers are satisfying.

 Management Aspect 40

Watch out for answers that may not sound genuine or

contradictions with their resume or application.

4. Assessment Test

Once we’ve screened candidates and sorted them out

into “promising”, “maybe”, and “disqualified” groups, we

want to look at the surviving candidates and further

assess their ability to do the job we’re looking to fill.

In this phase we explain clearly to candidates the scope

and purpose of the assessment, so they understand fully

why we’re doing it.

5. In-person Interviewing

It’s finally time to meet in person with those promising

candidates and determine who’s going to be our next hire.

The entire hiring team makes sure to ask all the right

questions. More specifically, we are preparing a list of

job-related questions and cultural fit questions.

A list of job-related questions that assess how well

candidates can manage regular job duties. In here, we can

ask a mix of:

● Role-specific questions, to evaluate candidates’

knowledge and experience

 Management Aspect 41

● Soft skills questions, to identify candidates who

are good not just on paper

● Situational questions, to learn how candidates would

address different scenarios and issues that may

arise on the job

● Behavioral questions, to discover how candidates

have previously handled professional challenges

● Cultural fit questions that will help us pick these

candidates who are more likely to thrive in our work

environment. In here, we could ask:

● Career goals questions, to find candidates whose

professional goals align with our business

objectives

● Collaboration questions, to identify team players

● Adaptability questions, to learn which candidates

are more flexible and will have a smooth transition

to their new role if hired

● Once we have our set of interview questions ready we

can now invite candidates to our office – or

schedule a video call if we’re hiring remotely.

6. Background checks

Background checks reassure us that our finalists are

reliable and don’t pose risks to our company. We conduct

pre-employment checks to make sure candidates have told

 Management Aspect 42

the truth in their resumes or don’t currently do illicit

drugs. In fact, we have several types of background

checks including:

● Criminal records

● Credit reports

● Driving records

● Verification reports (e.g. identity, education, work

history, social security number, national insurance

number, etc.)

● Drug tests

These checks are most useful in the selection process

when there’s high risk involved in employing someone

unsuitable in a particular job.

7. Reference Check

In this phase, we will get feedback about the performance

of the candidates from people they’ve actually worked

with in the past, such as former managers, former

colleagues or business partners and clients.

During reference checks, we will:

● Confirm what candidates have already told us (e.g

about time of employment and previous job

responsibilities)

● Learn how candidates use their skills on the job

 Management Aspect 43

● Discover potential weaknesses or lack of practical

experience

● Understand how candidates behave in the work

environment (e.g. if they’re punctual, if they

receive feedback well, etc.)

Once we’ve taken everything we learned in the selection

process into account, from our own candidate evaluation

to background and reference checks, we’re ready to make

our hiring decision.

EMPLOYEE BENEFITS

Table 15. Employee benefits and compensation

Cash Compensation

Monthly Basic Salary Based on position

13th Month Pay 1/12 of total basic salary earned within

a calendar year and prorated according
to date of hire.

Hazard Pay 3% of the basic salary earned within a

month.

Premium Pay

Performance Bonus Based on performance

 Management Aspect 44

Regular Holiday Entitled to 200% of their salary for

that day (double pay).

Special Holiday 30% of their basic wage for the first 8

hours

Benefits

HMO Benefit Employee coverage will begin after 6

months from the date of hire.

Annual Leave Benefit Subject to the Leave Policy of the

Company

1 year to less 10 days of

than 2 years 15 days Unused Annual
Leave.
2 years to less 18 days
Benefit is
than 4 years
convertible
to cash
4 years and up 21 days

Statutory Benefits SSS

Government-
Philhealth
mandated
benefits
Pag-ibig

Insurance:

a. HMO (Medical & Dental) – Room & Board: Regular

Private with Maximum Benefit Limit of PHP 180,000.00

enrolled upon hire; 100% of the premium shall be

paid by the Company.

Leave Benefits:

You shall be titled to the leave benefits as stated

below:
 Management Aspect 45

a. Upon your 3rd month onwards, you shall be

entitled to earn 1 credit of vacation and sick leave

every month.

b. Unused sick leave and vacation leave credits will

not be carried over to the following year and shall

not be converted to cash;

c. Upon resignation or end of project employment,

all unused sick leave and vacation leave credits

will not be included in final pay.

Parental leave:

a. Maternity Leave

A pregnant employee is entitled to 105 days of paid

leave, with the option to extend for an additional 30

days without pay. If the pregnant employee is a single

parent, the leave might be extended for another 15 days

 Management Aspect 46

with full pay. The mandatory leave after delivering

cannot be shorter than 60 days.

b. Paternity Leave

A male employee is entitled to 7 days of paid leave.

The leave can only be utilized for the employee's first

four children. The child's married father is entitled to

up to 14 days of paid leave. (Republic Act No. 8187)

c. Parental Leave for Solo Parents

A solo parent who has rendered one year of service

is eligible for paid parental leave for a duration of 7

days every year. (Republic Act No. 8972)

Leave for Victim of Violence against Women and their

Children

An employee who is a victim of violence and whose

children (under the age of 18) also experience violence

shall be entitled to up to 10 days of paid absence.

(Republic Act No. 9262)

Special Leave for Women

Female employees who have surgery for gynecological

conditions are eligible to a special leave benefit of up

to two months with full pay, provided they have performed

continuous aggregate service of at least 6 months in the

last 12-month period. (Republic Act No. 9710)

 Management Aspect 47

Holidays:

You shall observe the Client holiday schedule,

unless specifically agreed upon to do otherwise. Work

done during Philippine Holidays will be subject to rules

on Overtime Premium.

Mandatory Benefit: 13 Month Pay

It is a mandatory benefit provided to employees

under Presidential Decree No.851, which mandates that all

rank-and-file employees get a 13th-month salary.

Government Mandatory Contributions

Regular employees will have the following government

contributions automatically taken from their salaries:

a. SSS

The Social Security System serves as a government-

mandated insurance scheme for all wage earners in the

country's private institutions. Depending on their

salary scale, members are obligated to contribute a

particular amount.

b. PAG-IBIG

Also known as the Home Development Mutual Fund

(HDMF), Pag-IBIG is another form of national savings’

program and the financing office for affordable shelter.

 Management Aspect 48

c. PhilHealth

It serves as government Insurance health care

program was prompted by the passage of several bills that

had significant implications on health financing.

COMPANY POLICIES

The company policies will include rules for all

personnel. Disregarding or failing to adhere to the

company rules and regulations will result in the

employees receiving disciplinary measures. The first

offense will result in a verbal or oral warning from the

supervisor. The second offense may result in the

supervisor giving an employee a written reprimand. The

consequences depend on the kind of offense the employee

has committed that may result in suspension, less pay, or

no day-offs. The third offense may suspend or terminate

the employee with no pay.

Table 16. Company Policies

Policies Number of Offense Disciplinary

1st Offense Verbal warning

2nd Offense Written warning

Habitually late
for work. 3rd Offense Suspension for 3
working days or
 Management Aspect 49

termination

1st Offense Verbal warning

2nd Offense Written warning

Absent with no
and suspension
valid reason
for 3 working
days

3rd Offense Termination

1st Offense Verbal warning

2nd Offense Written warning

Sleeping while
working 3rd Offense Suspension for 3
working days or
termination

1st Offense Verbal warning

2nd Offense Suspension for 3

working days
Neglect of duty
3rd Offense Termination

1st Offense Suspension for 5

Reporting to work days workings
under the days
influence of
2nd Offense Termination
alcohol beverages
or drugs.

1st Offense Verbal warning

2nd Offense Written warning

 Management Aspect 50

Mobile Phone 3rd Offense Suspension for 3

Policy: Using working days or
phone during work termination

1st Offense Verbal warning

2nd Offense Written warning

Smoking within
company premises 3rd Offense Suspension for 3
working days or
termination

1st Offense Suspension for 3

Leaving the work working days
area during
working hours
2nd Offense Termination
without
authorization and
for no valid
reason.

Stealing company 1st Offense Termination

properties

Act of 1st Offense Suspension for 3

abuse/harassment working days
towards co-
2nd Offense
workers and
Termination
customers

GANTT CHART

According to Grant (2022), A Gantt chart is a

commonly used graphical depiction of a project schedule.

It's a type of bar chart showing the start and finish

dates of a project's elements such as resources, planning

 Management Aspect 51

and dependencies. A Gantt chart helps in scheduling,

managing, and monitoring specific tasks and resources in

a project. The chart shows the project timeline, which

includes scheduled and completed work over a period. The

Gantt chart aids project managers in communicating

project status or plans and also helps ensure the project

remains on track.

Table 17. Monthly Schedule before the start of Operation

 Management Aspect 52

MONTHS
PROCESS
May Jun Jul Aug Sept Oct N D J
o e a
v c n

Feasibility Study

Procurement of Funds

Signing of Contract of Lease

Business Registration

Canvass of materials and

equipment

Purchasing of materials and

equipment

Renovation of Business

Hiring of Employees

Advertising

Safety training

Testing of Rage Rooms,

Equipment and Safety Gears

Start of Operation

PERMITS AND LICENSES

 Management Aspect 53

Rage ‘n Release will pay the needed legal documents

for the operation of the business. The table below shows

the costs of the business permit and licenses.

Table 18. Business Permit and Licenses

Particulars Cost

Company Name Reservation Php 120.00

Articles of Partnership Php 2,000.00

DTI Business Registration Php 500.00

DTI Documentary Stamp Tax Php 30.00

BIR Business Registration Php 500.00

BIR Documentary Stamp Tax Php 30.00

Business Permit Php 2,000.00

Fire Safety Inspection Php 500.00

Certificate

Occupancy Permit Php 2,000.00

Sanitary Permit Php 300.00

Garbage Permit Php 260.00

Plumbing Inspection Fee Php 250.00

Electrical Inspection Fee Php 250.00

Community Tax Certificate Php 1,000.00

Locational Clearance Php 575.00

Building Permit Php 400.00

Barangay Business Clearance Php 900.00

Notary Fee Php 300.00

Total Php 11,915.00

SUMMARY OF COST (MANAGEMENT ASPECT)

 Management Aspect 54

Table 19 – Summary of cost under Management Aspect

Particulars Annual Cost

Permits and Licenses Php 11,915.00

Employee Salaries Php 1,134,000.00

SSS Contribution Php 106,056.00

PAGIBIG Contribution Php 7,200.00

Philhealth Contribution Php 56,700.00

Total Summary cost PHP 1,315,871.00

 Technical Aspect 55

TECHNICAL ASPECT

The technical aspect can be an excellent planning

tool because it provides an overview of how your project

may evolve during its development. It evaluates the

viability of your planned project by assessing the tools

at your disposal and the costs required. These specifics

include required materials and labor, project logistics,

and technology used for creating, delivering, and

tracking the items or services you propose to develop.

The study's findings also necessitate troubleshooting

potential problems and tracking the progress of your

project from concept to reality.

The technical aspect helps in determining the

project's capacity. It provides information on service

activity, raw materials used, and resources. (Schwant,

2014)

The study discusses the company's operations and

production process. It also specifies the machines and

equipment utilized in the manufacturing process, as well

as other details. The plant layout, size, and production

schedule are all presented to help identify the business

operation. (Oettinger, 2012)

 Technical Aspect 56

SERVICES OFFERED:

Rage ‘n Release provides a controlled and supervised

environment for individuals or groups to release their

anger and frustration in a safe and fun way. Whether

it's breaking objects, throwing things, or expressing

oneself on the freedom wall, these rooms aim to promote

stress relief, emotional well-being, and a sense of

empowerment by providing an unconventional outlet for

negative emotions.

1. Breaking Room

The breaking room is designed to provide an outlet

for pent-up frustration and anger. It typically features

a controlled environment filled with various breakable

items such as glass bottles, plates, mugs and

electronics. Participants are equipped with protective

gear like helmets and goggles and are encouraged to

release their stress by smashing and destroying these

items using tools like baseball bats or hammers. The

room's purpose is to allow individuals to channel their

aggression in a safe and controlled manner.

 Technical Aspect 57

2. Throwing Room

The throwing room is another type of rage room where

participants can vent their anger by hurling objects

against designated targets or walls. This room usually

contains a variety of throwable items such as plates,

cups, bottles or even small appliances. Participants can

indulge in the satisfying act of throwing these objects

as hard as they can, watching them shatter and scatter

across the room. Similar to the breaking room, safety

gear is provided to ensure the well-being of participants

during the session.

3. Package Room with Freedom Wall

In a group setting, a package room offers a unique

rage room experience. Participants are given packages or

boxes containing various items, such as dishes, bottles,

or electronics, which they can throw, smash, or break

within the confines of the room. Additionally, the

package room often includes a freedom wall, which allows

individuals to unleash their creativity by drawing, or

expressing their emotions freely using colorful materials

like markers. This combination of destruction and

creative expression offers a cathartic experience for

participants.
 Technical Aspect 58

RAGE ROOM RULES AND REGULATIONS:

Clients must be 18 years of age and must sign the safety

waiver

1. Attire and Safety Equipment

Participants are expected to arrive wearing attire

fit for physical exercise including long-sleeve shirts,

long pants, and closed-toe shoes. Other safety equipment

the rage room can also provide includes:

Safety Glasses

Protective Safety Work Gloves

Hard Hat

Ear Protection

Dust Mask

2. Liability Waiver

Before entering, each participant is required to

sign a liability waiver. Minors (below 18) will not be

allowed.
 Technical Aspect 59

Figure 9 – Liability Waiver

3. General Safety

Safety is a personal responsibility. Always follow

the proper procedures and be mindful of your

surroundings. Injuries in a rage room occur when

participants fail to take precautions and break the

rules. Guns and dangerous weapons are not allowed inside

the rage rooms.

 Technical Aspect 60

4. Wearing of Safety Gears

All protective gear (including gloves and face

shields) is required to be worn while in the room.

Anyone who removes the gear at any point will be asked to

leave the room until the gear has been inspected and

deemed usable. If you need to remove a client from the

room on several occasions, it is advisable to ask them to

leave and there will be no refunds.

5. Alcohol

Alcohol is not allowed, and do not show up under the

influence of any substance.

6. Mobile Devices

No mobile devices are allowed in the room. Clients

can choose to pay extra for photography and video

coverage services. They will also be allowed to connect

their devices to the Bluetooth speaker and enjoy their

preferred music.

7. Replacement of Damaged Equipment

No breaking of the lamps, cameras, table, Bluetooth

speaker, or crate(s) is permitted. These items are

expensive to replace and complex to repair. Any

intentional or unintentional damage to the rage room's

walls, ceiling, door, storage, etc. will be compensated

for.
 Technical Aspect 61

8. Cancellation policy

Clients must cancel at least 24 hours in advance of

their appointment in order to get a full refund. They

can cancel online or by calling the company's hotline.

9. Restrictions

A maximum of 4 people (others based on package) may

be permitted in the rage room at any given time. The

group's remaining members can wait outside the room while

rotating in at intervals.

10. Supervisions

The rage rooms will be constantly monitored by CCTV.

Before the session even begins, a supervisor will provide

instructions to the clients. As the ultimate authority,

they must always be obeyed and respected. Anyone who

doesn't follow their instructions will be asked to leave.

FOR YOUR SAFETY, DO NOT ENTER RAGE ROOM:

1. IF YOU HAVE A HEART CONDITION OR PREGNANT OR THINK YOU

ARE PREGNANT

2. IF YOU ARE NOT PHYSICALLY ABLE TO PARTICIPATE IN

ACTIVITIES
 Technical Aspect 62

SAFETY AND SECURITY (Fire Exit)

Safety and security are paramount in rage rooms to

ensure the well-being of participants and staff.

1. Fire Exits: Clearly designated fire exits that abide

by local safety rules shall be provided in rage rooms.

In the event of an emergency, these exits are

strategically located and easily accessible to ensure a

speedy and safe evacuation.

A. Fire Safety: To reduce fire risks, rage rooms will

be furnished with fire extinguishers, smoke

detectors, and sprinkler systems. Additionally, it

entails doing periodic inspections for fire safety

and, when possible, making sure the room was built

with fire-resistant materials.

B. Protective Gear: Participants are provided with

appropriate protective gear to ensure their safety

during the rage room sessions. This typically

includes helmets, goggles, gloves, and sometimes

even coveralls or protective clothing. These items

help protect participants from potential injuries

caused by flying debris or shattered objects.

 Technical Aspect 63

C. Safety Briefings and Supervision: Prior to entering

the rage room, participants receive safety briefings

that outline the rules, guidelines, and proper

handling of equipment. Trained staff members will

present at all times to supervise the sessions,

ensuring that participants follow safety protocols

and providing assistance if needed. They can step

in to prevent any unsafe behavior and maintain a

secure environment.

D. Controlled Environment: Rage rooms are constructed

with sturdy materials and reinforced structures to

contain the activities within the designated area.

The room's design minimizes the risk of damage to

surrounding structures and ensures that the impact

of thrown or smashed objects remains contained.

Safety barriers or protective screens may also be in

place to provide an extra layer of protection.

VENTILATION

Since rage rooms involve activities that can

generate dust, debris, or airborne particles, proper

ventilation systems are installed. These systems help

maintain good air quality within the room by continuously

circulating fresh air and removing any potential fumes or

contaminants. Adequate ventilation ensures a safe and

comfortable environment for participants and staff.

 Technical Aspect 64

1. Exhaust Fans

Exhaust fans in rage rooms are essential ventilation

systems, ensuring a safe and comfortable environment for

participants. As individuals release their frustrations

and engage in vigorous activities within these dedicated

spaces, the accumulation of dust, debris, and potentially

harmful airborne particles can occur. Exhaust fans

efficiently extract these contaminants from the room,

maintaining air quality and reducing the risk of

respiratory issues. By continuously circulating and

refreshing the air, these fans create a well-ventilated

atmosphere that promotes a healthier and more enjoyable

experience for users. Additionally, exhaust fans aid in

regulating temperature and humidity levels, preventing

excessive heat buildup and maintaining a comfortable

environment. With their powerful airflow and efficient

extraction capabilities, exhaust fans provide an

indispensable element to ensure the safety, comfort, and

overall satisfaction of participants in rage rooms.

 Technical Aspect 65

SERVICE PROCESS

Figure 10- Service process of the Business

Step 1: Customers can choose whether to have an online

appointment thru Facebook page or just walk in at the

shop.

Step 2: Upon entering, a receptionist will welcome them

and a form will be given to help them choose what

packages they will avail of. They can avail the throwing

rage room, smashing rage room, or the all-in-one rage

room.

Step 3: After choosing, the attendant will instruct the

customers on safety guidelines to avoid injury and will

be guided to their designated activity room.

Step 4: Customers will be wearing their protective gear

for safety measures.

 Technical Aspect 66

Step 5: The customers will now experience the activity

that they have chosen.

Step 6: After the session, if they wish to talk to

someone, they should now go to the clinic room, a

guidance counselor will be guiding them.

Step 7: The customer will return to the front desk to

make a payment if there is an additional charge and to

write feedback about the service that they have

experienced.

LOCATION

Figure 11- Bird’s eye view of location

 Technical Aspect 67

BUSINESS/PLANT LAYOUT

Figure 12 – Business Layout

 Technical Aspect 68

Figure 13 – Business floor plan

 Technical Aspect 69

Figure 14 – Business space

BUSINESS SIZE AND CAPACITY

The plant size refers to the total dimensional area

of the company. The company is divided into 11 areas.

Customer capacity in a day.

1. Throwing room

3 sessions per hour (up to 2 people)

6 customers x 8 hrs = 48 total customers in a day

 Technical Aspect 70

2. Smash room

3 sessions per hour (up to 1 person)

3 customers x 8 hrs = 24 total customers in a day

3. Package Room

2 sessions per hour (up to 5 people)

10 customers x 8 hrs = 80 total customers in a day

TOTAL CAPACITY = 152 CUSTOMERS IN A DAY

 Technical Aspect 71

Table 20. Plant size

Area Length Width

Reception/Front 4m 10.5m
Desk

Throwing rage room 4m 4m

Smashing rage room 4m 4m

Clinic 3m 4m

Employee’s lounge 2.75m 4m

Pantry 2m 2m

Toilet 2m 2m

All in one rage 9m 4m

room

Storeroom 2.65m 4m

Changing room 3m 2m

Restroom 3m 2m

Total 39.4 meters 42.5 meters

Lease Expense

A lease is a negotiated contract between the owner

(lessor) of the property allowing the firm (the lessee)

 Technical Aspect 72

the use of that property for a specific period of time

for a specific rental. The lessee is the party that uses,

rather than the one who owns, the leased property.

The space that the business will occupy is 218.925m2

wide on the ground floor of Albergo Hotel. There is a one-

month advance and deposit to secure the said rental space

which will be paid at once.

Table 21. Lease expense of the business

Pre-operational Lease Cost

Expense

1-month advance Php 40,000

1-month deposit Php 40,000

Total Php 80,000

Monthly rent Expense Php 40,000

ORGANIZATIONAL COSTING

Organization costs are the expenses incurred by a

company as a result of planning, coordinating, and

overseeing its resources.

Table 22. Construction Materials

The Table below shows the necessary repairs needed to

renovate the Rage room.

 Technical Aspect 73

Particulars Source Quantity Price Total

1.Plastering

Cement Camp 7 Lumber 50 bags Php Php

and 260.00 13,000.00
Construction
Supply

Gravel Camp 7 Lumber 2 loads Php Php

and 1,500.00 3,000.00
Construction
Supply

Sand Camp 7 Lumber 2 loads Php Php 3,600

and 1,200.00
Construction
Supply

2.Sound Proofing

Sound proof Camp 7 Lumber 8,000 Php 28.00 Php

wall and pcs 22,400.00
Construction
Supply

3.Utilities
 Technical Aspect 74

Electrical Camp 7 Lumber 10 pcs Php Php

pipe and 250.00 2,500.00
Construction
Supply

PVC pipe Camp 7 Lumber 15 pcs Php Php

and 650.00 9,750.00
Construction
Supply

4.Paint

Boysen TG homes 5 Php Php

permacoat gallons 280.00 1,400.00

5.Window
Repair

Glass window Magnificent 8 m2 Php Php

Hardware 690.00 5,520.00

Window Frame Magnificent 10 Php Php

Hardware 1,350.00 13,500.00

Total Php 74,670.00

Labor
 Technical Aspect 75

The building improvement or renovation will be

needing 4 labor forces preferably knowledgeable in

carpentry, masonry, and painting.

Wall plastering

Due to the service that we will provide being very

physical it is recommended that the walls where the rage

room will take place be covered with a thick cement

plaster to avoid destroying the original wall.

Sound proofing

The main idea of the business is creating a safe

space for the clients and making them comfortable sound

proofing is necessary.

Utilities

To be able to provide quality service utilities are

necessary such as water and electrical lighting which

will be installed in every room.

Paint

To create a more appealing brand painting will also

be necessary to attract clients and create a clean and

healthy environment.
 Technical Aspect 76

Window repairs

Because the proposed space to be rented is a bodega

or warehouse type of space additional windows will be

placed to keep the space cross ventilated.

Table 23. Furniture

Particulars Source Q Price Total

1. Front Desk and Clinic

Office Table Shoppee 1 Php 1,399.00 Php 1,399.00

Office Chairs Shoppee 2 Php 400.00 Php 800.00

Filing Cabinet Shoppee 2 Php 1,548.00 Php 3,096.00

Arm Chair Shoppee 2 Php 400.00 Php 800.00

2. Employee’s Lounge and waiting area

Sofa Mandaue 4 Php 3,500.00 Php 14,000.00

Foam
Home
Store

Wooden Center Mandaue 1 Php 700.00 Php 700.00

Table Foam
Home
Store

Glass Center Mandaue 1 Php 1,635.00 Php 1,635.00

Table Foam
Home
Store

Arm Chairs Shoppee 2 Php 400.00 Php 400.00

Locker Shoppee 1 Php 1,000.00 Php 1,000.00

3. Storage Room

Heavy Duty Shoppee 2 Php 600.00 Php 1,200.00

Metal Rack

Total Php 25,430.00

 Technical Aspect 77

Table 24. Equipment

Particulars Source Q Price Total

1. Office Area and Waiting Area

Fire Shoppee 1 Php 800.00 Php 800.00

Extinguisher

Cash Drawer Shoppee 1 Php 1,000.00 Php 1,000.00

Computer Set Shoppee 1 Php Php 10,000.00

10,000.00

Modern Shoppee 2 Php 1,000.00 Php 2,000.00

Chandelier
Light

Electric CW 4 Php 140.00 Php 560.00

Socket Hardware

Electric CW 2 Php 699.00 Php 1,398.00

Extensions Hardware

CCTV CW 2 Php 487.00 Php 974.00

Hardware

Air condition Shoppee 1 Php 3,049.00 Php 3,049.00

Smoke Detector CW 1 Php 105.00 Php 105.00

Hardware

Fire Sprinkler CW 2 Php 57.00 Php 114.00

Hardware

2. Clinic and Employee Lounge

Fire Shoppee 2 Php 800.00 Php 1,600.00

Extinguisher

LED Ceiling CW 2 Php 200.00 Php 400.00

Light Hardware

Electric CW 2 Php 140.00 Php 280.00

Socket Hardware

CCTV CW 2 Php 487.00 Php 974.00

Hardware

Smoke Detector CW 2 Php 105.00 Php 210.00

Hardware

Fire Sprinkler CW 2 Php 57.00 Php 114.00

Hardware
 Technical Aspect 78

3. Storage Room

LED Tube Light CW 2 Php 169.00 Php 338.00

Hardware

CCTV CW 1 Php 487.00 Php 487.00

Hardware

4. Changing Room

Long Mirror Ace 1 Php 649.00 Php 649.00

Hardware

LED Tube Light CW 2 Php 169.00 Php 338.00

Hardware

5. Restrooms and Pantry

Ceiling Light CW 3 Php 200.00 Php 600.00

Hardware

Sink CW 2 Php 520.00 Php 1,040.00

Hardware

Toilet CW 2 Php 1,350.00 Php 2,700.00

Hardware

Water CW 1 Php 359.00 Php 359.00

Dispenser Hardware

Fire Sprinkler CW 1 Php 57.00 Php 57.00

Hardware

6. Rage Rooms

Fire Shoppee 3 Php 800.00 Php 2,400.00

Extinguisher

LED Tube Light CW 3 Php 169.00 Php 507.00

Hardware

LED Strip CW 3 Php 280.00 Php 840.00

Light Hardware

Sound System Shoppee 3 Php 799.00 Php 2,397.00

CCTV CW 3 Php 487.00 Php 1,461.00

Hardware

Exhaust fan CW 3 Php 975.00 Php 2,925.00

Hardware

Smoke Detector CW 3 Php 400.00 Php 1,200.00

Hardware

Fire Sprinkler CW 7 Php 57.00 Php 399.00

Hardware
 Technical Aspect 79

7. Corridors

CCTV CW 2 Php 487.00 Php 974.00

Hardware

LED Tube Light CW 2 Php 169.00 Php 338.00

Hardware

Fire Sprinkler CW 2 Php 57.00 Php 114.00

Hardware

Total Php 43,701.00

Table 25. Professional Expenses

Particulars Labor Cost

Contractor Php 20,000.00

Electrician Php 5,500.00

Plumber Php 5,000.00

Carpenter Php 5,000.00

Mason Php 5,000.00

Fire safety inspector Php 200.00

Sanitary inspector Php 500.00

Total Php 41,200.00

 Technical Aspect 80

Table 26. Summary of Construction Costs

Particulars Total Cost

Furnitures Php 25,430.00

Fixture and Others Php 43,701.00

Cost of Costruction Php 74,670.00

Materials

Proffessional Fees Php 41,200.00

Total Construction Cost Php 185,001.00

Table 27. Office Supplies

Particulars Quantity Price/unit Total (Php)

(Php)

Ballpen 1 box Php 65.00 Php 65.00

Coupon bond 5 rims Php 200.00 Php 1,000.00

Marker 1 box Php 249.00 Php 249.00

Record Book 5 Php 340.00 Php 1,700.00

Tape 3 rolls Php 90.00 Php 240.00

Total Php 3,254.00

Operational Supplies
 Technical Aspect 81

Restocking and reordering organizational supplies

must be done twice a month, on the 15th and 30th, to

guarantee that enough stock is available to meet consumer

demands. By adhering to this guideline, a 15% safety

stock is always available in the event of exceptional

interruptions in stock delivery or delays.

Table 28. Operational Supplies

Items Quantity Reorder point Price/unit Total

and safety
stock

Breakable 1000 700/300 2 Php 2,000.00

Bottles

Mugs 1000 700/300 2 Php 2,000.00

Plates/saucers 1000 700/300 2 Php 2,000.00

Breakable 30 21/9 50 Php 1,500.00

Tables

Breakable 30 21/9 50 Php 1,500.00

Chairs

Broken 10 7/3 100 Php 1,000.00

Electronics

Dust Mask 150 105/45 20 Php 3,000.00

Disposable Ear 100 pairs 70/30 .50 Php 100.00

covers

Safety Glasses 100 70/30 15 Php 1,500.00

Gloves 100 pairs 70/30 18 Php 1,800.00

Hard hat 50 35/15 67 Php 3,350.00

Total Php 19,750.00

Table 29. Cleaning tools

Particular Quantity Price

Dust Pan 3 Php 357.00

 Technical Aspect 82

Garbage Bin 3 Php 1,800.00

Garbage Cart 1 Php 1,350.00

Mop 3 Php 900.00

Stick Broom 3 Php 150.00

Soft Broom 3 Php 240.00

Vacuum 2 Php 3,800.00

Total Php 8,597.00

Table 30. Cleaning supplies

Particular Quantity Price

Garbage Bag 100 Php 449.00

Hand Sanitizer 1 Gallon Php 172.00

Tissue 3 Bags Php 276.00

Total Php 894.00

Table 31. Miscellaneous Fee

Particular Quantity Price

Jeepney fare 30 Php 420.00

 Technical Aspect 83

Xerox Photocopy 55 Php 110.00

Meals 19 Php 1,520.00

Total Php 2,050.00

Utilities Computation

According to Brown (2022), A business utilities

expense is a cost a business pays for using the

infrastructure provided by public utility companies, they

can include electricity, natural gas, water, sewage, and

telephone services. The utilities expense is based on the

amount used during an accounting period and is included

as part of operating expenses in the income statement of

the business.

The source of business electricity will be the

Benguet Electric Cooperative, Inc. The monthly

consumption of the proposed business is shown below.

Table 32. Energy Consumption

Particulars Q Watts Hourly Days of

used Operation

1. Light 19 50 10 30
 Technical Aspect 84

2. Sound 3 100 10 30
system

3. Computer 1 200 10 30
Unit

4. Exhaust fan 3 50 10 30

5. Air 1 1440 10 30
Condition

6. CCTV 10 10 10 30

Table 33. Utilities Expense

Particulars Monthly Cost Annual Cost

Electricity Php 5,000.00 Php 60,000.00

Internet Php 2,000.00 Php 24,000.00

Water Php 1,882.00 Php 22,584.00

Total Php 106,584.00

WASTE DISPOSAL MANAGEMENT

Because the rage room will be providing breakable

items to the clients it is important that the items that

the client broke during their session will be disposed

properly. Glass is one of the main items the client will

be breaking so a proper disposal system is necessary. All

broken glass will be collected and will be sold to MRF

stations near Baguio City.

Table 34. Summary of Cost (Technical aspect)

Particulars Annual Cost

 Technical Aspect 85

Rent expense Php 540,000.00

Cost of construction Php 74,670.00

materials

Fixtures and Others Php 43,701.00

Professional Fee Php 41,200.00

Furnitures Php 25,430.00

TOTAL Php 725,001.00

Office Supplies Php 3,254.00

Operational Supplies Php 19,750.00

Cleaning Supplies Php 9,494.00

Permits and Licenses Php 4,330.00

TOTAL Php 36,828.00

Electricity Php 60,000.00

Internet Php 24,000.00

Water Php 22,584.00

TOTAL Php 106,584.00

Total Summary Cost Php 868,413.00

 Financial Aspect 86

Financial Aspect

Introduction

Finance is the backbone of every company and plays a

crucial part in ensuring that businesses will strive and

continue to grow in the competitive business world.

Moreover, finance also heavily impacts decision making

and risk management within the company which requires

business owners to learn the least basic finance

principles to ensure that the company can still cover

their expenses and also create profit. In order for Rage

‘n Release to achieve company goals of improving the

mental health stability in Baguio City, the financial

aspect is essential and would play a vital role in the

business. This would benefit the business in being able

to manage cash flows while keeping long-term goals which

would help the business accomplish success. Rage ‘n

Release would also be able to monitor and analyze the

company’s progress, meet daily expenses, financially plan

for the company’s future, and conduct investments.

 Financial Aspect 87

MAJOR FINANCIAL ASSUMPTIONS

This assumption is taken into account while making

projections for the future business’ financial aspect.

For the construction of the projected financial

statements, Rage ‘n Release will consider the following

assumptions and projections. All of the assumptions are

in line with the company’s policies.

1. All estimated amounts reflected in the projected

financial statement shall be denominated in Philippine

Peso (₱) and are rounded off to the nearest centavo.

2. In the Projected Statement of Comprehensive Income,

the revenue and expenses are based on the following:

A. Service revenue

a. The projected sales are based on the normal

capacity of operations of the business. The increase

in revenue is based on the inflation rate of 6.1%.

B. Cost of services

a. All purchases will be on a cash basis unless

company policy or partner’s discretion will permit a

purchase on account.
 Financial Aspect 88

C. Operating Expenses

1. In computing depreciation expense, a straight-line

method will be used in computing the depreciation costs

of the business’ furniture and fixtures, office equipment

and property, and plant and equipment. The useful life of

the furniture and fixture is 5 years.

2. Pre- organizational cost is the summation of all

permits and requirements fees needed in the initial

establishment of the business.

3. All of the utility expenses shall be treated as period

expenses because it is intangible and therefore not part

of inventory.

4. Employee Benefits such as SSS, Phil Health, and Pag-

IBIG expenses are the employer’s share in the respective

funds.

5. 13th Month Pay is equivalent to the one-month salary

of the employee.

6. Taxes and Licenses Fees include payments for tax

filing and business permit requirements and renewal fees.

7. All of the supplies shall be expensed all throughout

the year.
 Financial Aspect 89

8. The income tax expense would be 30% of the

partnership's net income. Income taxes will be made every

30 days after each quarter of the calendar year when the

final adjusted income tax return is due to be filled as

prescribed by the BIR.

9. Repair and Maintenance for Rage ‘n Release be 3% of

the office equipment and production equipment.

10. Rage ‘n Release company will take the form of a

general partnership and commence its business on January

2, 2024 under the calendar year with the following

partners:

Table 35. Partnerships

Baloca, Albert Managing Partner

Boragay, Mark Jenver General Partner

Guinapon, Tana General Partner

Tambalque, Charles Aldwin General Partner

Thapa, Sushmina General Partner

Valdoboyd, Malkijah Dacsig General Partner

 Financial Aspect 90

Table 36. Yearly revenue

2024 2025 2026 2027 2028

14,273 15,143 16,067 17,04 18,087

,064 ,721 ,488 7,605 ,509

11. Tools are subject to an inflation rate of 6.1% since

supplies usually have fluctuating inflation rates, and

utilities and salaries do not have any basis for their

inflation rates.

12. Of the supplies available for use 98% are used.

Therefore, 2% are unused at the end of the year.

13. Assets include cash and cash equivalents, prepaid

rent, supplies, security deposit, and PPE (property,

plant, and equipment). On the other hand, liabilities

include accrued expenses. Equity includes the invested

capital of the partners.

14. The contingency fund is Php 47,619, which is 5% of

the total start-up costs for three months, annually.

15. Of the total cash and cash equivalents and

contingency funds, 80% is deposited in a bank earning an

 Financial Aspect 91

interest of 1.125% annually. The remaining 20% is left as

cash on hand.

16. Supplies will be kept minimal and will only be

purchased when needed - JIT (just in time) inventory

management method.

17. Releasing or the use of supplies is under the FIFO

(first in, first out) method.

18. The entity paid advance rent and security deposit to

the lessor amounting to Php 40,000 each, equal to one-

month rent. The balance of the security deposit, if any,

shall be refunded upon termination of the contract unless

renewed.

19. Equipment, furniture & fixtures, tools, and supplies

are all purchased in cash.

20. The useful lives of each classification of fixed

asset are the following: all equipment - five (5) years,

furniture & fixtures - seven (7) years. Tools are

expensed outright.

21. Straight line method will be used to depreciate fixed

assets.

22. All partners will share the net income after salaries

equally.
 Financial Aspect 92

23. Available drawings will be Php 15,000 monthly (Php

2,500 per partner), starting the first month of the

second year of operations increasing by 10% annually

(rounded to the nearest hundredths).

24. Drawings should only be for personal use of the

individual partners, the equity/capital balance should

not be below the initial capital invested, and the amount

withdrawn should not exceed the net income.

25.Permits and licenses will be paid in cash annually

(except for one-time registration payment) and will

remain constant.

26. For its business tax, the entity opted to be taxed

under the percentage tax for the years ended December 31,

2024 and 2025. However, the revenue of the Company

exceeded the threshold of ₱3,000,000 for the years ended

December 31, 2026, 2027 and 2028, which automatically

required it to be taxed under the Value-Added Tax (VAT).

27. Tax is in accordance with the CREATE and TRAIN Law.

In the Statement of Financial Position, the following are

the bases of projection:

A. Current Asset

a. Cash is based on the Statement of Cash Flow

 Financial Aspect 93

b. The inventory is composed of raw materials only.

B. Non-Current Asset

a. The net amounts of the non-current assets will be

presented in the statement of financial position.

b. All equipment will be depreciated according to

their respective useful lives using the Straight-

Line Method.

C. Current Liabilities

a. The accrued liabilities account is composed of

the premiums payable to SSS and Phil health.

b. Income and other taxes payables on the other then

remitted to the government the subsequent year.

D. Owners’ Equity

a. The financial source of the business will be from

the total contributed capital of ₱1,500,000.00 from

the five partners. Their initial contributions shall

be equally distributed.
 Financial Aspect 94

CAPITAL CONTRIBUTION/SOURCES OF FINANCING

A. Source of Fund The partners agreed to contribute an

equal sharing of capital in the total amount of

1,200.000.00 pesos. The partners shall invest Php

200,000 each in the form of cash and personal loans.

Indicated below are the names of the partners, their

respective contributions, and the number of shares

owned.

B. Based on the computed start-up costs, the needed

capital investment from the partners is Php 1,000,000.

All partners, except for the managing partner, will

invest Php 175,000 each to the partnership. The

managing partner on the other hand will invest his

knowledge and skills in managing the partnership and

an investment amounting to Php 125,000 the said

capital contributions/investments will come from the

savings of the partners.

 Financial Aspect 95

Table 37. Capital Contributions

Partners Amount of Investment

Baloca, Albert ₱200,000.00

Boragay, Mark Jenver ₱200,000.00

Guinapon, Tana ₱200,000.00

Tambalque, Charles ₱200,000.00

Aldwin

Thapa, Sushmina ₱200,000.00

Valdoboyd, Malkijah ₱200,000.00

Total ₱1,200,000.00
 Financial Aspect 96

Table 38. Start-up cost

START-UP COSTS (Three months)

A. Pre-Operating Expenses

Lease
Prepaid rent 40,000
Security deposit 40,000
Rent expense 120,000 200,000

Notarial and registration fees

Company Name Reservation 120
Articles of Partnership 2,000
DTI Business Registration 500
DTI Documentary Stamp Tax 30
BIR Business Registration 500
BIR Documentary Stamp Tax 30 3,180

Construction materials 74,670

Professional fees 41,200
Advertising and Promotion Expenses 1,500
320,550

B. Project Costs

Operational supplies 19,750

Office supplies 3,254
Cleaning supplies 897
Cleaning tools 8,597
Equipment 43,701
Furniture and fixtures 25,430

Labor costs
Operations manager 63,000
Life coach 54,000
Medical aid 54,000
Cashier 36,000
Housekeeper 36,000
Security guard 40,500
Contributions 0 283,500

Utilities
Electricity 15,000
Water 5,646
Internet 6,000 26,646

Miscellaneous 2,050

Permits and licenses

Business Permit 2,000
Fire Safety Inspection Certificate 500
Occupancy Permit 2,000
Sanitary Permit 300
 Financial Aspect 97

Garbage Permit 260

Plumbing Inspection Fee 250
Electrical Inspection Fee 250
Community Tax Certificate 1,000
Locational Clearance 575
Building Permit 400
Barangay Business Clearance 900
Notary Fee 300 8,735

Professional fees 40,000

Repairs and maintenance 2,074
Rent expense 120,000
584,633

Total 905,183
Contingencies 45,259
TOTAL PRE-OPERATING EXPENSES & PROJECT COSTS 950,443

BBG & COMPANY, PARTNERSHIP

Statement of Financial Performance

For the Years Ended December 31, 2024-2028

202 202
Note 2024 2025 2026
7 8
14,179,7 14,179,7 14,179,7 14,179,7 14,179,7
Revenue 7
76 76 76 76 76
Less: Cost of Service 8

Operational supplies used 79,000 86,900 95,590 105,149 115,664

Employee Salary 2,430,000 2,430,000 2,430,000 2,430,000 2,430,000

th
13 Month Paty 202,500 202,500 202,500 202,500 202,500

Contribution of life coach 335,100 335,100 335,100 335,100 335,100

Tot
3,046,600 3,054,500 3,063,190 3,072,749 3,083,264
al
11,133, 11,125, 11,116, 11,107, 11,096,
Gross Profit 176 276 586 027 512
Add: Interest Income
Cash in bank, beg balance 3,982,834 7,695,415 11,293,983 14,442,589

Interest rate 1.1250% 1.1250% 1.1250% 1.1250% 1.1250%

Tot 7 - 44,807 89,611 127,057 162,479
al
Total Income 11,133,176 11,170,083 11,206,197 11,234,084 11,258,991

Less: Operating expenses 8

Legal Expense 11,915 8,735 8,735 8,735 8,735

Construction cost 1,850,001 - - - -

Professional Fees 201,001 - - - -

Advertising & Promotion Expense 6,000 6,000 6,000 6,000 6,000

Cleaning Tools 8,597 9,121 9,678 10,268 10,895

Salaries Expense 2,430,000 2,430,000 2,430,000 2,430,000 2,430,000

Contributions 335,100 335,100 335,100 335,100 335,100

Utilities Expense 106,584 106,584 106,584 106,584 106,584

Office Supplies Expense 12,756 12,756 12,756 12,756 12,756

Cleaning Supplies Expense 3,516 3,516 3,516 3,516 3,516

Depreciation Expense 12,373 12,373 12,373 12,373 12,373

Miscellaneous Expense 8,198 8,198 8,198 8,198 8,198

 Financial Aspect 98

Repairs and Maintenance 2,074 2,074 2,074 2,074 2,074

Rent Expense 480,000 480,000 480,000 480,000 480,000

Business Tax 425,393 425,393 425,393 425,393 425,393

Total 5,893,707 3,840,273 5,117,404 5,118,428 5,119,531

Taxable Income 5,239,469 7,329,810 6,088,793 6,115,656 6,139,460

Income Tax 1,511,091 2,138,193 1,765,888 1,773,947 1,781,088

NET INCOME 3,728,378 5,191,617 4,322,905 4,341,709 4,358,372

Table 39.PRE-OPERATING STATEMENT OF FINANCIAL PERFORMANCE

Table 40. Pre-Operating Statement of Financial Position

BBG & COMPANY, PARTNERSHIP

Statement of Financial Position
As of December 31, 2024-2028

Note 2024 2025 2026 2027 2028

Current Assets:
5,182 10,303 14,608 18,688 22,764
Cash and Cash Equivalents 1
,789 ,860 ,305 ,703 ,640
40 40 40 40 40
Prepaid Rent 2
,000 ,000 ,000 ,000 ,000
Supplies 3
332 372 409 449 495
5,223 10,344 14,648 18,729 22,805
,121 ,232 ,713 ,152 ,136
Non-Current Assets:
40 40 40 40 40
Security Deposit 4
,000 ,000 ,000 ,000 ,000
Property, Plant, and 56 44 32 19 7
5
Equipment, net ,758 ,385 ,012 ,639 ,266
96 84 72 59 47
,758 ,385 ,012 ,639 ,266
5,319 10,428 14,720 18,788 22,852
TOTAL ASSETS
,879 ,617 ,725 ,791 ,401

Current
Liabilities:
701 858 1,084 1,086 1,088
Accrued Expenses 6
,808 ,690 ,755 ,867 ,750
701 858 1,084 1,086 1,088
Total Liabilities
,808 ,690 ,755 ,867 ,750
4,618 9,569 13,635 17,701 21,763
Total Capital
,071 ,927 ,970 ,924 ,652
TOTAL LIABILITIES & 5,319 10,428 14,720 18,788 22,852
CAPITAL ,879 ,617 ,725 ,791 ,401
 Financial Aspect 99

Table 41. Pre-Operating Statement of Cash Flow

BBG & COMPANY, PARTNERSHIP

Statement of Cash Flows
For the Years Ended December 31, 2024-2028

Note 2024 2025 2026 2027 2028

CASH FLOWS FROM OPERATING
ACTIVITIES
Net 3,66 5,13 4,26 4,28 4,30
income 7,628 1,856 4,044 3,754 1,328
Adjustments
for:
1 1 1 1 1
Depreciation 5
2,373 2,373 2,373 2,373 2,373
Interest (4 (9 (13 (16
7
income - 6,219) 2,309) 1,049) 7,773)
Operating income before changes in operating assets
and liabilities
Changes in operating assets and liabilities
Decrease (increase) in:
(4
Prepaid Rent 2
0,000) - - - -
Supplie
3
s (332) (40) (37) (40) (46)
(4
Security Deposit 4
0,000) - - - -
Increase (decrease) in:
70 15 22
Accrued Expenses 6
1,808 6,882 6,065 2,112 1,883
4,30 5,25 4,41 4,16 4,14
Cash generated from operations
1,478 4,851 0,136 7,149 7,765
Interest income 4 9 13 16
received - 6,219 2,309 1,049 7,773
Net cash generated from operating 4,30 5,30 4,50 4,29 4,31
activities 1,478 1,071 2,445 8,198 5,537

CASH FLOWS FROM INVESTING

ACTIVITIES
Purchases of fixed 6
5
assets 9,131 - - - -
(6
Net cash used in investing activities
9,131) - - - -

CASH FLOWS USED IN FINANCING

ACTIVITY
 Financial Aspect 100

Partners' 95
Contribution 0,443 - - - -
Withdra 18 19 21 23
wal - 0,000 8,000 7,800 9,600
Net cash generated from/(used in) 95 (18 (19 (21 (23
financing activities 0,443 0,000) 8,000) 7,800) 9,600)

NET INCREASE/(DECREASE) IN CASH AND CASH 5,18 5,12 4,30 4,08 4,07
EQUIVALENTS 2,789 1,071 4,445 0,398 5,937
CASH AND CASH EQUIVALENTS
Beginning 5,18 10,30 14,60 18,68
Balance - 2,789 3,860 8,305 8,703
Ending 5,18 10,30 14,60 18,68 22,76
Balance 2,789 3,860 8,305 8,703 4,640

BBG & COMPANY, PARTNERSHIP

Statements of Changes in Equity
For the Years Ended December 31, 2024-2028

2024 2025 2026 2027 2028

Partners' Capital, Beginning
Balance - 4,618,071 9,569,927 13,635,970 17,701,924
Ad
Partners' Contribution
d: 950,443 - - - -
Net
Income 3,667,628 5,131,856 4,264,044 4,283,754 4,301,328
Les Drawing
s: s - 180,000 198,000 217,800 239,600
Partners' Capital, Ending
Balance 4,618,071 9,569,927 13,635,970 17,701,924 21,763,652

Table 42. PROJECTED STATEMENT OF CHANGES IN OWNER'S

EQUITY

SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting

The Company’s financial statements are presented on the

accrual basis of accounting in conformity with the

financial reporting standards established in the

Philippines (“PFRS”). Accordingly, revenues are

 Financial Aspect 101

recognized when earned, and expenses are recognized

when the obligation is incurred.

B. Cash and Cash Equivalents.

Cash and cash equivalents consist of monies on deposit

at financial institutions and other highly liquid

investments with maturities of three months or less.

At times, the Company places deposits with banks and

other high-quality financial institutions. The Company

has not experienced any financial loss related to such

deposits.

C. Supplies

Supplies are recorded at the lower of cost (average

cost) and net realizable (market) value.

D. Prepaid Rent and Security Deposit.

In compliance with the contract of lease, the Company

was required to pay an advance rent and security

deposit equivalent to one-month rent each. The pre-

payment and security deposit are recorded at the cost

basis of accounting. The lease was classified as an

operating lease and no transfer of ownership is to be

expected on the termination of the contract.

E. Property, Plant, and Equipment.

Property, plant, and equipment are stated at cost.

Property, plant, and equipment are capitalized if the

 Financial Aspect 102

life is expected to be greater than one year.

Depreciation expense is calculated by the straight-line

method and is based on estimated useful lives of five

years for all equipment, and seven years for furniture

and fixtures. Depreciation expenses totaled ₱12,373

for the years ended December 31, 2024, 2025, 2026,

2027, and 2028.

F. Revenue Recognition.

Revenue from the sale of services is recognized when

the Company has delivered the services to the customer,

the customer has accepted the services and

collectability of the related receivables is reasonably

assured.

G. Estimates

The preparation of financial statements in conformity

with PFRS requires management to make estimates and

assumptions that affect reported amounts of assets and

liabilities and disclosure of contingent assets and

liabilities at the date of the financial statements and

the reported amounts of revenues and expenses during

the reporting period. Accordingly, actual results

could differ from those estimates.

PREPAID RENT
 Financial Aspect 103

The advance payment to the lessor is equal to one-month

rent payment amounting to ₱40,000 as of December 31,

2024, 2025, 2026, 2027, and 2028, respectively.

SUPPLIES

Table 43. Supplies

2024 2025 2026 2027 2028

₱ ₱ ₱ ₱ ₱
Operational supplies
1,580 1,770 1,947 2,142 2,356
Office supplies 260 292 321 353 388
Cleaning supplies 72 80 88 97 107

₱ ₱ ₱ ₱ ₱
1,912 2,142 2,356 2,592 2,851

SECURITY DEPOSIT

The amount deposited to the lessor as a form of security

is equal to one-month rent payment amounting to ₱40,000

as of December 31, 2024, 2025, 2026, 2027, and 2028,

respectively.

Property and equipment consist of the following at

December 31:

Table 44. Property and Equipment

2024 2025 2026 2027 2028

₱ ₱ ₱ ₱ ₱
Office equipment
43,701 43,701 43,701 43,701 43,701
Furniture and fixtures 25,430 25,430 25,430 25,430 25,430
 Financial Aspect 104

₱ ₱ ₱ ₱ ₱
69,131 69,131 69,131 69,131 69,131
Less: Accumulated
(12,373) (24,746) (37,119) (49,492) (61,865)
depreciation

₱ ₱ ₱ ₱ ₱
56,758 44,385 32,012 19,639 7,266

Useful life = 5years

Salvage value is 10%
Accrued expenses consist of the following at December 31:

Table 45. ACCRUED EXPENSES

2024 2025 2026 2027 2028

₱ ₱ ₱ ₱ ₱
Utilities Payable
8,882 9,770 10,747 11,822 13,004
Salaries Payable 47,250 51,975 57,173 62,890 69,179
Contributions Payable 7,866 8,530 9,170 9,764 10,221
Income Tax Payable 3,782 19,800 30,633 39,289 49,146
Business Tax Payable 18,891 20,780 102,403 112,644 123,908

₱ ₱ ₱ ₱ ₱
77,789 101,085 199,379 224,587 252,454

Revenue from sales and other income consist of the

following at December 31:

 Financial Aspect 105

Table 46. REVENUE FROM SERVICES AND OTHER INCOME

2024 2025 2026 2027 2028

₱ ₱ ₱ ₱ ₱
Revenue
2,518,776 2,770,654 3,413,445 3,754,790 4,130,269
Interest earned from
- 8,323 8,685 10,470 12,146
banks

₱ ₱ ₱ ₱ ₱
2,518,776 2,778,976 3,422,130 3,765,260 4,142,415

There is no deferred revenue related to these performance

obligations for the years then ended December 31, 2024,

2025, 2026, 2027, and 2028.

Table 47. EXPENSES BY NATURE

2024 2025 2026 2027 2028

₱ ₱ ₱ ₱ ₱
Cost of services
314,130 347,100 381,641 419,606 461,367
Legal Expense 11,915 8,735 8,735 8,735 8,735
Construction Materials 74,670 - - - -
Professional Fees 201,200 160,000 160,000 160,000 160,000
Advertising Expenses 6,000 6,000 6,000 6,000 6,000
Cleaning Tools 8,597 9,121 9,678 10,268 10,895
Salaries Expense 918,000 1,009,800 1,110,780 1,221,858 1,344,044
13th Month Pay 76,500 84,150 92,565 101,822 112,004
Contributions 156,270 168,840 183,009 195,973 205,502
Utilities Expense 106,584 117,242 128,967 141,863 156,050
Office Supplies Expense 12,756 14,286 15,720 17,292 19,021
Cleaning Supplies Expense 3,516 3,938 4,333 4,767 5,243
Depreciation Expense 12,373 12,373 12,373 12,373 12,373
 Financial Aspect 106

Miscellaneous Expense 8,198 8,198 8,198 8,198 8,198

Repairs and Maintenance 2,074 2,074 2,074 2,074 2,074
Rent Expense 480,000 480,000 480,000 480,000 480,000
Business Tax 75,563 83,120 409,613 450,575 495,632

₱ ₱ ₱ ₱ ₱
2,468,346 2,514,978 3,013,687 3,241,404 3,487,138

COMMITMENTS AND CONTINGENCIES

The Company was established under the CREATE and

TRAIN Law subject to review and final audit by

authoritative government agencies. Such review and audit

could lead to requests for reimbursement to the

expenditures disallowed under the compliance terms of the

act. Management believes that any required refunds are

unlikely, and in any event, would be immaterial. No

provision has been made in the accompanying financial

statements for the refund of monies due to questioned

costs.

SUBSEQUENT EVENTS
Management has evaluated subsequent events for

recognition or disclosure through [DATE], which was the

date that the financial statements were available to be

issued. Management did not identify any events that

occurred subsequent to year-end that require disclosure

in the financial statements.

 Financial Aspect 107

Notes on Financial Statements

1. Income statement

This is a financial statement that measures

financial performance over a specific accounting period.

Financial performance assessed by giving a summary of how

the business incurs its revenue and expenses through both

operating and non-operating activities. It also shows the

net profit or loss incurred over a specific accounting

period, typically over a fiscal quarter or year. This is

also known as the “profit and loss statement” or

“statement of revenue and expense”. (Valencia and Roxas,

2010)

2. Statement of Financial Position

This is a financial statement that summarizes a

company’s assets, liabilities, and shareholders’ equity

 Financial Aspect 108

at a specific point in time. These three balance sheet

segments give investors an idea as to what the company

owns and owes, as well as the amount invested by the

shareholders. The balance sheet must follow the following

formula: Assets= Liabilities + Shareholders’ Equity.

(Valencia and Roxas, 2010)

3. Statement of Cash Flows

This is a revenue or expense stream that changes a

cash account over a given period. Cash inflows usually

arise from one of three activities: financing, operating,

or investing although this also occurs because of

donations or gifts in the case of a personal fiancé. Cash

outflows result from expenses or investments. This holds

true for both business and personal finance.

RATIO ANALYSIS

Financial ratios are quantitative tools used to know

the performance of a business to create a new strategy

and to make sound decisions. Financial ratios can

indicate strong financial performance relating to the use

of assets, debt and equality, and internal production

operations that may or may not be suffering from poor

 Financial Aspect 109

management. Financial ratios are used by managers,

investors, creditors, and other parties to compare and

evaluate the strength and weaknesses of the company in

the industry.

Table 48. Notes

BBG & COMPANY, PARTNERSHIP

Schedules
As at and for the years ended December 31, 2024-2028

1. Cash and Cash Equivalents

The account at December 31 consists of:

2024 2025 2026 2027 2028
Cash on hand
995,709 1,991,354 2,823,496 3,610,647 4,396,724
Cash in bank
3,982,834 7,965,415 11,293,983 14,442,589 17,586,896
Petty cash fund
2,050 2,050 2,050 2,050 2,050
Contingency Fund
45,259 45,259 45,259 45,259 45,259

5,025,852 10,004,078 14,164,788 18,100,545 22,030,929

2. Operational Supplies

The account at December 31 consists of:

2024 2025 2026 2027 2028
Beginning balance
- - - - -
Operational supplies
Add:
purchased 79,000 86,900 95,590 105,149 115,664
Operational supplies available for use
79,000 86,900 95,590 105,149 115,664
Less: Operational supplies used
79,000 86,900 95,590 105,149 115,664

3. Office Supplies

The account at December 31 consists of:

2024 2025 2026 2027 2028
Beginning balance
- 260 260 260 352
Add: Office supplies purchased
13,016 14,318 15,749 17,324 19,057
Office supplies available for use
13,016 14,578 16,009 17,584 19,408
Less: Office supplies
 Financial Aspect 110

used 12,756 14,286 15,689 17,233 19,020

Ending balance
260 292 320 352 388

4. Cleaning Supplies

The account at December 31 consists of:

2024 2025 2026 2027 2028
Beginning balance
- 72 80 88 97
Cleaning supplies
Add:
purchased 3,588 3,947 4,341 4,776 5,253
Office supplies available for use
3,588 4,019 4,422 4,864 5,350
Cleaning
Less:
supplies used 3,516 3,938 4,333 4,767 5,243
Ending balance
72 80 88 97 107

5. Property, Plant, and Equipment, net

The account at December 31 consists of:

Equipment:
2024 2025 2026 2027 2028
Cost
Beginning balance
- 43,701 43,701 43,701 43,701

Additions
43,701 - - - -
Disposals
- - - - -
Ending balance
43,701 43,701 43,701 43,701 43,701

Accumulated depreciation
Beginning balance
- 8,740 17,480 26,221 34,961

Depreciation charge
8,740 8,740 8,740 8,740 8,740
Disposals
- - - - -
Ending balance
8,740 17,480 26,221 34,961 43,701

Net book value

34,961 26,221 17,480 8,740 -

Furniture and Fixtures:

The account at December 31 consists of:

2024 2025 2026 2027 2028
Cost
Beginning balance
- 25,430 25,430 25,430 25,430

Additions
25,430 - - - -
Disposals
- - - - -
Ending balance
 Financial Aspect 111

25,430 25,430 25,430 25,430 25,430

Accumulated depreciation
Beginning balance
- 3,633 7,266 10,899 14,531

Depreciation charge
3,633 3,633 3,633 3,633 3,633
Disposals
- - - - -
Ending balance
3,633 7,266 10,899 14,531 18,164

Net book value

21,797 18,164 14,531 10,899 7,266

Total net book value

56,758 44,385 32,012 19,639 7,266

6. Accrued Expenses

The account at December 31 consists of:

2024 2025 2026 2027 2028
Utilities
Utilities Payable
Payable 8,882 9,770 10,747 11,822 13,004
Salaries
Salaries Payable 202,500 202,500 202,500 202,500 202,500
Payable
Contribu
Contributions Payable tions 0 0 0 0 0
Payable
Income
Income Tax Payable Tax 377,773 534,548 441,472 443,487 445,272
Payable
Business
Business Tax Payable Tax 106,348 106,348 425,393 425,393 425,393
Payable
1,069,36 1,071,38 1,073,16
686,621 843,397
5 0 5

7. Revenue

The account at December 31 consists of:

2024 2025 2026 2027 2028
Average number of customers per room per day 152 152 152 152 152
Number of range rooms 3 3 3 3 3
Total number of
customers per day 152 152 152 152 152
Number of business days in a year (6 days x 52 weeks) 312 312 312 312 312
Total number of customers per year 47,424 47,424 47,424 47,424 47,424
Price 299 299 299 299 299
T
o
14,179,7 14,179,7 14,179,7 14,179,7 14,179,7
Total t
76 76 76 76 76
a
l

8. Cost of Services
 Financial Aspect 112

The account at December 31 consists of:

2024 2025 2026 2027 2028
Operational supplies used
79,000 86,900 95,590 105,149 115,664

Employee Salary 2,430,00 2,430,00 2,430,00 2,430,00 2,430,00

0 0 0 0 0
13th month pay of employees
202,500 202,500 202,500 202,500 202,500
Contributions of life coach
335,100 335,100 335,100 335,100 335,100

3,046,60 3,054,50 3,063,19 3,072,74 3,083,26

0 0 0 9 4

9. Interest Income

The account at December 31 consists of:

2024 2025 2026 2027 2028

Cash in bank, beginning balance 3,982,83 7,965,41 11,293,9 14,442,5

- 4 5 83 89
Interest rate 1.1250% 1.1250% 1.1250% 1.1250% 1.1250%
Interest
earned
from - 44,807 89,611 127,057 162,479
banks

10. Operating Expenses

The account at December 31 consists of:

2024 2025 2026 2027 2028
Legal Expense
11,915 8,735 8,735 8,735 8,735
1,8
Construction costs
50,001 - - - -
2
Professional Fees
01,200 - - - -
Advertising and Promotion Expenses
6,000 6,000 6,000 6,000 6,000
Cleaning Tools
8,597 9,121 9,678 10,268 10,895
2,4 2,4 2,4 2,4 2,4
Salaries Expense
30,000 30,000 30,000 30,000 30,000
2 2 2 2 2
13th Month Pay
02,500 02,500 02,500 02,500 02,500
3 3 3 3 3
Contributions
35,100 35,100 35,100 35,100 35,100
1 1 1 1 1
Utilities Expense
06,584 06,584 06,584 06,584 06,584
Office Supplies Expense
12,756 12,756 12,756 12,756 12,756
Cleaning Supplies Expense
3,516 3,938 4,333 4,767 5,243
Depreciation Expense
12,373 12,373 12,373 12,373 12,373
Miscellaneous Expense
8,198 8,198 8,198 8,198 8,198
 Financial Aspect 113

Repairs and Maintenance

2,074 2,074 2,074 2,074 2,074
4 4 4 4 4
Rent Expense
80,000 80,000 80,000 80,000 80,000
4 4 1,7 1,7 1,7
Business Tax
25,393 25,393 01,573 01,573 01,573
6,0 4,0 5,3 5,3 5,3
96,207 42,773 19,904 20,928 22,031

11. Contributions

The account at December 31 consists of:

2024 2025 2026 2027 2028
Monthly staff salaries:
Operations manager 21,000 21,000 21,000 21,000 21,000
Assistant manager 18,000 18,000 18,000 18,000 18,000
Marketing manager 21,000 21,000 21,000 21,000 21,000
Sales officer 15,000 15,000 15,000 15,000 15,000
Finance manager 12,000 12,000 12,000 12,000 12,000
Receptionists 12,000 12,000 12,000 12,000 12,000
Security guard 13,500 13,500 13,500 13,500 13,500
Medical Aid 18,000 18,000 18,000 18,000 18,000
Housekeeper (3) 36,000 36,000 36,000 36,000 36,000
Life coach (2) 36,000 36,000 36,000 36,000 36,000
TOTAL 202,500 202,500 202,500 202,500 202,500
SSS Contributions
Operations manager 1,900 1,900 1,900 1,900 1,900
Assistant manager 1,800 1,800 1,800 1,800 1,800
Marketing manager 1,900 1,900 1,900 1,900 1,900
Sales officer 1,900 1,900 1,900 1,900 1,900
Finance manager 1,900 1,900 1,900 1,900 1,900
Receptionists 1,425 1,425 1,425 1,425 1,425
Security guard 1,425 1,425 1,425 1,425 1,425
Medical Aid 1,425 1,425 1,425 1,425 1,425
Housekeeper (3) 1,200 1,200 1,200 1,200 1,200
Life coach (2) 1,425 1,425 1,425 1,425 1,425
TOTAL 16,300 16,300 16,300 16,300 16,300
PhilHealth Contributions
Operations manager 1,050 1,050 1,050 1,050 1,050
Assistant manager 900 900 900 900 900
Marketing manager 1,050 1,050 1,050 1,050 1,050
Sales officer 750 750 750 750 750
Finance manager 1,050 1,050 1,050 1,050 1,050
Receptionists 750 750 750 750 750
Security guard 675 675 675 675 675
Medical Aid 750 750 750 750 750
 Financial Aspect 114

Housekeeper (3) 1950 1950 1950 1950 1950

Life coach (2) 1500 1500 1500 1500 1500
TOTAL 10,425 10,425 10,425 10,425 10,425
PAG-IBIG Contributions
Operations manager 100 100 100 100 100
Assistant manager 100 100 100 100 100
Marketing manager 100 100 100 100 100
Sales officer 100 100 100 100 100
Finance manager 100 100 100 100 100
Receptionists 100 100 100 100 100
Security guard 100 100 100 100 100
Medical Aid 100 100 100 100 100
Housekeeper (3) 300 300 300 300 300
Life coach (2) 100 100 100 100 100
TOTAL 1,200 1,200 1,200 1,200 1,200

Monthly total 202,500 202,500 202,500 202,500 202,500

12. Income
tax
2024 2025 2026 2027 2028
Taxable 1 11,096,2 10,3 10,9 11,5
Income 0,319,589 13 18,470 23,406 54,853
Interest 30% 30% 30% 30% 30%
3,328,86 3,277,021. 3,466,455.
Total 3,095,876.70 3,095,541
3.90 80 90

*FOR NOTES
2024 2025 2026 2027 2028
Office equipment ₱43,701 ₱43,701 ₱43,701 ₱43,701 ₱43,701
Furniture and fixtures
25,430 25,430 25,430 25,430 25,430
₱69,131 ₱69,131 ₱69,131 ₱69,131 ₱69,131
Less: Accumulated
depreciation (12,373) (24,746) (37,119) (49,492) (61,865)
₱56,758 ₱44,385 ₱32,012 ₱19,639 ₱7,266

2024 2025 2026 2027 2028

Operational supplies ₱0 ₱0 ₱0 ₱0 ₱0
Office supplies 260 292 320 352 388
Cleaning supplies 72 80 88 97 107
₱332 ₱372 ₱409 ₱449 ₱495

2024 2025 2026 2027 2028

Cost of services ₱3,046,600 ₱3,054,500 ₱3,063,190 ₱3,072,749 ₱3,083,264
Legal Expense
11,915 8,735 8,735 8,735 8,735
Construction costs
1,850,001 - - - -
Professional Fees
 Financial Aspect 115

201,200 - - - -
Advertising and Promotion
Expenses 6,000 6,000 6,000 6,000 6,000
Cleaning Tools
8,597 9,121 9,678 10,268 10,895
Salaries Expense
2,430,000 2,430,000 2,430,000 2,430,000 2,430,000
13th Month Pay
202,500 202,500 202,500 202,500 202,500
Contributions
335,100 335,100 335,100 335,100 335,100
Utilities Expense
106,584 106,584 106,584 106,584 106,584
Office Supplies Expense
12,756 12,756 12,756 12,756 12,756
Cleaning Supplies Expense
3,516 3,938 4,333 4,767 5,243
Depreciation Expense
12,373 12,373 12,373 12,373 12,373
Miscellaneous Expense
8,198 8,198 8,198 8,198 8,198
Repairs and Maintenance
2,074 2,074 2,074 2,074 2,074
Rent Expense
480,000 480,000 480,000 480,000 480,000
Business Tax
425,393 425,393 1,701,573 1,701,573 1,701,573
₱9,142,807 ₱7,097,273 ₱8,383,094 ₱8,393,677 ₱8,405,295

Table 49. Test of Profitability, Liquidity and Solvency

TEST OF PROFITABILITY
GROSS PROFIT MARGIN 2024 2025 2026 2027 2028
Gross Income
2,204,646 2,423,553 3,031,804 3,335,184 3,668,902
Divided by: Net Sales
2,518,776 2,770,654 3,413,445 3,754,790 4,130,269
89% 89% 89% 89% 89%

The gross profit margin shows the amount of profit

made after deducting cost of goods sold.

NET PROFIT MARGIN 2024 2025 2026 2027 2028

Net Income
48,111 198,861 302,855 383,752 475,854
Divided by: Net Sales
2,518,776 2,770,654 3,413,445 3,754,790 4,130,269
2% 7% 9% 10% 12%

The net profit margin shows the amount of profit made after
deducting selling, general, and administrative costs.

RETURN ON TOTAL ASSETS 2024 2025 2026 2027 2028

Net Income
48,111 198,861 302,855 383,752 475,854
Divided by: Average Total Assets
560,853 1,142,816 1,265,572 1,462,803 1,690,455
9% 17% 24% 26% 28%
 Financial Aspect 116

The return on total assets shows how effectively a company uses

its assets to generate earnings.

RETURN ON TOTAL EQUITY 2024 2025 2026 2027 2028

Net Income
48,111 198,861 302,855 383,752 475,854
Divided by: Average Total Equity
521,654 1,052,738 1,114,596 1,249,999 1,451,102
9% 19% 27% 31% 33%

The return on total equity measures a company's profit as a percentage of the combined
total worth of all ownership interests in the company.

RETURN ON CURRENT
2024 2025 2026 2027 2028
ASSETS
Net Income
48,111 198,861 302,855 383,752 475,854
Divided by: Average Current Assets
512,474 1,052,245 1,187,374 1,396,978 1,637,003
9% 19% 26% 27% 29%

The return on current assets measures how efficiently a business

utilizes its current assets to generate net profit.

TEST OF LIQUIDITY
CURRENT RATIO 2024 2025 2026 2027 2028
Current Assets
1,024,948 1,079,541 1,295,206 1,498,750 1,775,256
Divide by: Current Liabilities
78,399 101,758 200,194 225,414 253,293

13.07 10.61 6.47 6.65 7.01

The current ratio measures a company’s ability to pay short-term

obligations or those due within one year.

QUICK RATIO 2024 2025 2026 2027 2028

Quick Assets
983,036 1,037,400 1,252,850 1,456,158 1,732,404
Divide by: Current Liabilities
78,399 101,758 200,194 225,414 253,293

12.54 10.19 6.26 6.46 6.84

The quick ratio measures a company's capacity to pay its current liabilities without needing
to sell its inventory or obtain additional financing.

WORKING CAPITAL TO TOTAL

2024 2025 2026 2027 2028
ASSETS RATIO
Working Capital
 Financial Aspect 117

946,549 977,783 1,095,011 1,273,336 1,521,963

Divide by: Total Assets
1,121,706 1,163,926 1,367,218 1,558,389 1,822,521
84.38% 84.01% 80.09% 81.71% 83.51%

The working capital to total assets ratio indicates the relative liquidity of total
assets & distribution of resources employed.

TOTAL ASSETS TURNOVER 2024 2025 2026 2027 2028

Net Sales
2,518,776 2,770,654 3,413,445 3,754,790 4,130,269
Divide by: Total Assets
1,121,706 1,163,926 1,367,218 1,558,389 1,822,521

2.25 2.38 2.50 2.41 2.27

The total assets turnover measures the movement and utilization

of all resources to meet operating requirements.

TEST OF SOLVENCY
DEBT RATIO 2024 2025 2026 2027 2028
Total Liabilities
78,399 101,758 200,194 225,414 253,293
Divide by: Total Assets
1,121,706 1,163,926 1,367,218 1,558,389 1,822,521
7% 9% 15% 14% 15%

The debt ratio measures the amount of leverage used by a

company in terms of total debt to total assets.

EQUITY RATIO 2024 2025 2026 2027 2028

Total Equity
1,043,307 1,062,168 1,167,023 1,332,975 1,569,229
Divide by: Total Assets
1,121,706 1,163,926 1,367,218 1,558,389 1,822,521
93% 91% 85% 86% 85%

The equity ratio indicates proportion of assets provided by owners. It reflects

financial strength and caution to creditors.

DEBT TO EQUITY RATIO 2024 2025 2026 2027 2028

Total Liabilities
 Financial Aspect 118

78,399 101,758 200,194 225,414 253,293

Divide by: Total Equity
1,043,307 1,062,168 1,167,023 1,332,975 1,569,229
8% 10% 17% 17% 17%

The debt-to-equity ratio is used to evaluate a company's financial leverage and is

calculated by dividing a company’s total liabilities by its total equity.

FIXED ASSETS TO EQUITY

2024 2025 2026 2027 2028
RATIO
Fixed Assets
96,758 84,385 72,012 59,639 47,266
Divide by: Total Equity
1,043,307 1,062,168 1,167,023 1,332,975 1,569,229
9% 8% 6% 4% 3%

The fixed asset-to-equity ratio measures the proportion of

owner’s capital invested in fixed assets.

Table 50. Payback Period

PAYBACK PERIOD

Yea Annual Net Cash Unrecovered

Project Cost
r Flow Amount
1 995,431 8,134,407 -7,138,976
2 0 7,854,068 -14,993,044
3 0 7,555,892 0
4 0 7,744,943 0
5 0 8,191,683 0

Payback Period = 2
# months
years and
 Socio-Economic Aspect 119

Socio-Economic Aspect

The Rage 'n Release’s main advocate is for mental

balance in our society and CSR is the main foundation of

this belief. CSR is important in addressing social

issues, and with the recent rise of mental imbalances in

our city, our business is hoping that our service will

have a great impact in fixing mental imbalance in Baguio

City.

CSR is also a way to show the local community that

we, Rage 'n Release, are socially responsible and will

help cultivate a positive role in our society.

 Socio-Economic Aspect 120

Local Community

The Rage 'n Release company would like to contribute

to the local community by addressing the problem of

mental imbalances such as depression and the

disadvantages of suppression and repression. Due to

Baguio City’s ever so busy atmosphere, our company would

also like to provide a place of relaxation and catharsis

hoping to improve the mental health of the locals so they

could continue with their busy schedule with a stress-

free and refreshed mental state.

Business Community

In the Business Community, it is rarely practiced

that an organization creates solutions to address the

well-being of the public, especially in their mental

state. Our company hopes to break this norm and persuade

entrepreneurs to create more businesses that will

prioritize the well-being and mental state of the public.

Environment

The main supply that our company is providing is the

breaking of glass bottles which could be hard to clean,

dispose of in the garbage bin with any thought of

recycling which could make our environment dirty but now

there is a new way of disposing and recycling them.

 Socio-Economic Aspect 121

Broken glasses are crushed and turned into glass

powder which is a new form of raw materials able to

replace sand. This technology is now available in the

Philippines. With this, we could now recycle glass and

hopefully clear our streets and creeks of unused glass

bottles to help our environment free.

Government

In recent years because of the pandemic, there has

been a surge of mental illnesses that are haunting our

government. Our government is new when it comes to

handling mental health being their first law on mental

health was only passed in 2019 (R.A no 1136) and most

mental health care providers are underdeveloped thus

making it hard to identify individuals with mental

illness.

Our company’s services provide catharsis which could

help us identify which of our clients could have mental

illness and our in-house guidance counselor could provide

psychological evaluations and talk therapy to help people

learn to better cope with life and mental health

conditions.
 References 122

REFERENCES:

Breakroom405 blog. How do the Anger Rooms work?

https://breakroom405.com/blog/anger-room/how-do-the-
anger-rooms-work/

Cabildo, A. V. (2023b, May 3). 5 rage rooms in the

Philippines to relieve stress. Tripzilla Philippines.
https://www.tripzilla.ph/rage-rooms-philippines/amp/?
fbclid=IwAR3CSoKNkokBlGuXVhyktFKr4BWRdtb2EkskQIupQaOl76mh
qT9CxZ7ZVpM

Chan, J. G. (n.d.). CORDILLERA ADMINISTRATIVE REGION -

RULES AND REGULATIONS IMPLEMENTING WAGE ORDER NO. RB-CAR-
12 - PHILIPPINE LABOR CIRCULAR ON-LINE - CHAN ROBLES
VIRTUAL LAW LIBRARY.
https://chanrobles.com/carwagerates.irr.carwageorderrbcar
12.html

Corporate FInance Institution. (2019, October 24).

General Partnership.
https://corporatefinanceinstitute.com/resources/valuation
/general-partnership/

GlobalSpec. Glass Powders and Precursors Information.

https://www.globalspec.com/learnmore/materials_chemicals_
adhesives/ceramics_glass_materials/
glass_powders_precursors#:~:text=The%20raw%20materials
%20used%20to,and%20classification%20by%20particle%20size.

GovPH. Baguio Water District.

https://baguiowaterdistrict.gov.ph/water-rates/

Happhoadmin. (2022). How much cement, sand and water is

required for 12mm thick plastering? Happho.
https://happho.com/much-cement-sand-water-required-
plastering-12mm-thick-plaster/

Homes.com. (2022, July 28). 5 ways to reuse broken glass.

Home Sweet Homes. https://www.homes.com/blog/2017/02/5-
ways-reuse-broken-glass/

Lally, J., Tully, J. C., & Samaniego, R. M. (2019).

Mental health services in the Philippines. BJPsych
International, 16(03), 62–64.
https://doi.org/10.1192/bji.2018.34

Professional, C. C. M. (n.d.). Psychologist. Cleveland

Clinic.
https://my.clevelandclinic.org/health/articles/22679-
psychologist
 References 123

Profitable Venture Magazine Ltd. A Sample Rage Room

Business Plan Template.
https://www.profitableventure.com/rage-room-business-
plan/

Profitable Venture Magazine Ltd. Top 10 Rage Room Rules

and Regulations in 2023.
https://www.profitableventure.com/rage-room-rules-
regulations/

Province of Abra. (2019). Broken glass bottles can be

recycled through MRF of San Juan. Province of Abra.
https://abra.gov.ph/2019/02/07/broken-glass-bottles-can-
be-recycled-through-mrf-of-san-juan/#:~:text=As%20part
%20of%20Solid%20Waste,%2C%20North%20Poblacion%2C%20San
%20Juan.

Raypole, C. (2020, March 31). Let it out: dealing with

repressed emotions. Healthline.
https://www.healthline.com/health/repressed-emotions?
fbclid=IwAR0FNkclOeO8Y2U5DhZxUFuijDHmgtmvI-
4ZhcRTgPkcjHnZwOotcQxIUuo

SCHOTT AG. (n.d.). SCHOTT Glass powder and Particle

Technologyhttps://www.schott.com/en-il/expertise/technolo
gy-and-processing/glass-powder-and-particle-technology

Skillshareblog. (2022, April 3). Could a Rage Room Become

Part of Your Self-Care Routine?
https://www.skillshare.com/en/blog/could-a-rage-room-
become-part-of-your-self-care-routine/

WebToGo Philippines, www.webtogo.com.ph. (n.d.). Pacific

Paint (BOYSEN) Philippines - products. Pacific Paint
(Boysen) Philippines, Inc.,.
https://www.boysen.com.ph/products.do?item_id=920
 Questionnaire 124

SURVEY QUESTIONNAIRE

I. Personal Information

Name (Optional): ____________________________________________

Age: __________________ Gender: ______________________________

II. QUESTIONS

Instructions: Please fill in the following questionnaire by

putting a checkmark on the space provided.

1. Have you heard of the concept rage room before?

_____ Yes _____ No

If yes, are you willing to avail such service if one would

be available in Baguio City?

_____ Yes _____ No

2. How much are you willing to pay for a rage room session?
_____ ₱ 299-399 _____ ₱ 400-599 _____ ₱ 600-799

3. Do you think a rage room will help you relieve anger and
frustration?
_____ Yes _____ No

4. Are you aware of a business that offers stress-reducing

programs?
_____ If yes, where it is located? ___________________
_____ No

5. Would smashing things help you release your suppressed

emotion?
_____ Yes _____ No

6. What do you think are the potential benefits of a rage

room experience? (Select all that applies)
_____ Stress Relief

_____ Physical Exercise

_____ Fun and Entertainment

_____ Catharsis

Other (please specify) ______________________________

7. How often would you visit a rage room?

_____ Very often

_____ Often

_____ Somewhat Often

_____ Not often

 Permits and Licenses 125

PERMITS AND LICENSES

Business Permit
 Permits and Licenses 126

PhilHealth
 Permits and Licenses 127

PAG-IBIG
 Permits and Licenses 128

BIR Application for Registration

 Permits and Licenses 129

SSS Personal Record

Permits and Licenses 130
 Curriculum Vitae 131

CURRICULUM VITAE

Albert Angelo Padilla

Baloca
#70 Burgos Street, Brgy.
Poblacion East, San
Nicolas, Pangasinan
09761064506
[email protected]

Personal Particulars

Birthdate: March 24, 2001

Birth of place: Tayug Pangasinan

Nationality: Filipino

Religion: Christian

Educational Background

Primary: Don Antonio Lee Chi Uan Integrated School

Secondary: Tayug National High School

Tertiary: University of the Cordilleras

Qualification and Skills:

 Can work under minimum supervision and can-do multi-

tasking.

 Can be flexible in doing such task.

 Curriculum Vitae 132

Mark Jenver Cara Boragay

Leones West, Tubao, La Union

09158557277
[email protected]

Personal Particulars:

Birthdate: September 17, 2002

Birth of place: Tubao, La Union

Nationality: Filipino

Religion: Born Again Christian

Educational Background:

Tertiary: University of the Cordilleras

Secondary: San Alberto Magno Academy
Primary: Leones West Elementary School

Qualification and Skills:

 Tactful and able to deal with difficult situation

 Computer literate

 With good communication skills and complete tasks in

a timely manner

 With positive work ethics

 Curriculum Vitae 133

Tana Alwiyao Guinapon

Address: Asin Road, Baguio City

Contact Number: 09194673210
Email: [email protected]

Personal Particulars:
Birth Date: April 5, 2003
Birth Place: Baguio City
Nationality: Filipino
Religion: Roman Catholic

Education
2022— University of the Cordilleras Baguio City,
Present (BS- Financial Management) Benguet
 Undergraduate

Cagayan State University

Tuguegarao,
(Bachelor of Science in
2021—2022 Accountancy) Cagayan
 Undergraduate
 Completed 2 semesters

Kalinga State University Tabuk City,

2020—2022 (Accountancy, Business &
Kalinga
Management)
 Graduated with honors
 Senior High School

Qualifications and Skills

 Excellent communication skills, both written and

spoken
 Competent in handling pressure situations and stress
management
 Proficient in overseeing tasks and managing teams
 Curriculum Vitae 134

Charles Aldwin P.
Tambalque
Guisad Central
Sagadanian Street,
Baguio City
09476610867
[email protected]

Personal Particulars:

Birthdate: December 29,2001

Birth of place: Baguio City

Nationality: Filipino

Religion: Roman Catholic

Educational Background:
Tertiary: University of the Cordilleras
Higher Secondary: AMA Computer College, Baguio City
Lower Secondary: Guisad Valley National High School
Primary: Josefa Carino Elementary School

Qualification and Skills:

• Dedicated, organized and team oriented

• Good in communication skills and leadership skills

• Maturity and a professional attitude

 Curriculum Vitae 135

Sushmina O. Thapa

#102B Ledesma Interior East Modern-site

Aurora hill, Baguio City
09973763090
[email protected]

Personal Particulars:

Birthdate: June 24, 1994

Birth of place: Baguio City

Nationality: Filipino

Religion: Roman Catholic

Educational Background:

Tertiary: University of the Cordilleras

Secondary: Baguio City Science Foundation
Primary: Special Education Center, Baguio City

Qualification and Skills:

 Can work under pressure and manage stress well

 Good in Interpersonal skills

 Proficient in management and group tasks

 Curriculum Vitae 136

Malkijah Dagsig Valdoboyd

Address: Purok 6, Lower Rock Quarry,
Baguio City
Contact Number: 09662615245
Email: [email protected]

Personal Particulars

Birth Date: July 9, 1997

Birthplace: Baguio City

Nationality: Filipino

Religion: Born Again

Educational Background

Tertiary: University of the Cordilleras

Secondary: Christian Legacy Academy

Primary: UCCP - Baguio Educational Center

Qualification and Skills:

 Time management - I manage my time to accomplish

bigger results with less stress.

 Self-discipline - I stay motivated and push forward

no matter the challenge.

 Team work empathy - I work to understand needs of

each team member in order to achieve performance and
employee satisfaction

 Handling pressure - I stay clam with a positive

attitude