HARINA DE MUSA

SUMMARY OF THE PROJECT

NAME OF THE FIRM

Harina De Musa is the name used by the firm and the same name

shall be registered to the Department of Trade and Industry. The

Partnership is engaged in manufacturing Banana flour. The name of

the firm Harina De Musa are derived from the following: “Harina”

is derived from the Spanish term of flour, which is the main

product of the firm. The word “Musa”, on the other hand, is derived

from Musaceae - the family name of banana, which is the only

ingredient in producing the banana flour.

LOCATION

The firm, including the store, warehouse, and the production

or manufacturing area, is located in Bagumbayan, Roxas, Oriental

Mindoro. The place is the center of trade in the municipality of

Roxas and it is also accessible for the suppliers as well as to

the transport facilities. In the location, there is adequate supply

of water and electricity which are essential for the production of

the product. Telephone lines are also accessible and there is also

stable network signal in Bagumbayan ensuring a better and faster

communication with the suppliers and customers.

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VISION

Our vision is to become a leading provider of banana flour,

recognized for our commitment to sustainability, innovation, and

social responsibility. We strive to create a positive impact on

the environment, communities, and consumers by offering a

versatile and nutritious product that contributes to a healthier,

more sustainable world. We envision a future where banana flour is

a staple ingredient in kitchens and food industries worldwide,

supporting the well-being of people and the planet.

MISSION

Our mission is to provide high-quality, sustainably-produced

flour made from bananas, while promoting environmental

conservation and supporting local farmers. We aim to offer a

healthy and eco-friendly alternative to traditional flour,

contributing to a more sustainable and nutritious food system.

GOALS

 Produce and offer high-quality banana flour that meets

customer expectations and industry standards.

 To reduce food and agricultural wastes.

 To contribute in the economic development of our society.

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 Expand distribution channels, explore new markets, and build

partnerships to increase awareness and demand for banana

flour.

 Educate consumers and food professionals about the

nutritional benefits, culinary uses, and sustainability

advantages of banana flour.

 Provide additional source of income for the local farmers and

people who want to start new business.

LOGO

BRIEF SUMMARY OF THE PRODUCT

The proposed project of Harina De Musa is the manufacturing

of Banana flour made from banana fruit. This will be produced by

peeling the banana. The peeled banana will then be cut into thin

slices. These will be dried using a dehydrator or an oven. If these

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equipment are not available, the sun-drying method can also be

performed. Once the banana slices are dried already, pound it using

a mortar and pestle before blending it. Blending the dried banana

will help powderizing it, turning it to flour. The product was

named “BANANA FLOUR”, and the primary ingredient of this is Banana

fruit.

The proponents also determined the remuneration policies, the

best organizational structure for the company, and the legal

standards that must be followed within the firm. To demonstrate

the profitability, liquidity, and solvency of the company,

financial data were evaluated and analyzed. Additionally, it

addresses whether the product and the company as a whole are

economically desirable.

The aim of this study is to start an innovative business to

produce a good quality product for the consumers and which will be

condescend by the consumers of Roxas. Furthermore, this study wants

to encourage the consumers to learn how to deal with food and

agricultural wastes. This also aims to educate them regarding the

benefits and potential uses of banana aside from what is already

widely known. In this light, the researchers will convert the

banana fruit into a healthier and less expensive flour that can

offer a good source of income to people.

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PROJECT SUMMARY

The study shows that establishing Harina De Musa in Roxas,

Oriental Mindoro prove to be feasible, viable, and profitable in

terms of the five (5) aspects of the study: marketing, technical,

management, financial, and socio-economic.

MARKET FEASIBILITY

To determine the viability of the project in terms of market

study, the proponents use descriptive method of research since the

study focuses on the marketability of the product. The

questionnaires will be distributed to selected respondents living

in rural areas of Roxas, Oriental Mindoro, and in order to

determine the result of the demand and supply and for the

researchers to know whether the product will penetrate the target

market.

TECHNICAL FEASIBILITY

The technical study of the project comprises of product

description, product process, equipment and materials, plant

location and plant layout. The manufacturing plant will be located

at Bagumbayan, Roxas, Oriental Mindoro, where the proponents

delivered, since it is an accessible location for the potential

buyers. The plant size is approximately 60 square meters and it is

divided into five (5) different sections, namely: office, working

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area (including storage and packaging area), kitchen or pantry,

one (1) comfort room, and the store.

MANAGEMENT FEASIBILITY

The management study shows the form of ownership, the

structure of the business, job analysis and company policies that

the researchers had formulated.

The business organization is named Harina De Musa. It is

composed of four (4) people, namely: Cherie Joie Taladtad, Blezyl

Dela Fuente, Alberto Atienza, and Jamaica Aquino. The partners

will manage it. Cherie Joie Taladtad will act as the General

Manager, Blezyl Dela Fuente will be the Operations Head, Alberto

Atienza will be the Marketing Head, and Jamaica Aquino will be the

Finance Head.

The group agreed to form a partnership because it is easy to

organize and brings greater financial capability to the owners.

The partners combined special skills and flexibility in terms of

decision making.

FINANCIAL FEASIBILITY

To start a business, each partner will contribute 75,000 pesos

that will promote an initial capital for the business. Partnership

was the desired organization for some reasons: Partnership is

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simple and less expensive to organize. It also allows the partners

to combine expertise, skills and experience.

SOCIO-ECONOMIC FEASIBILITY

The socio-economic study shows the contribution of the study

to the society. The business will not only provide good business

and financial opportunities for the partners, but it will also

generate employment for those who will be hired. More than being

accessible alternative to traditional flour and a healthy

ingredient for baked goods and snacks, Harina De Musa is also a

way to give Filipinos a decent source of income. The proposed

project aims to help the localities of Roxas, Oriental Mindoro, to

provide more job opportunities to the people that need it, such as

farmers, to overcome poverty and would solve the excessive

production of agricultural waste in the Philippines by making flour

made from bananas. The successful operation of the business could

help the government being a source of additional income in the

form of taxes.

With this project, the business will contribute to the success

of the country’s entrepreneurship by giving the inspiration to

people who would like to venture in the same business.

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CHAPTER I

INTRODUCTION

The Philippines is known for being a rich country in terms of

natural resources and for exporting agricultural products

internationally. Aside from this, agriculture is also considered

as the backbone of the Philippine economy because it employs about

forty (40) percent of Filipino workers. According to Food and

Agriculture Organization of the United Nations, farming is one of

the sources of income for most Filipinos in the country and it

contributes an average of twenty (20) percent to the country’s

Gross Domestic Product. However, this income is supposedly higher.

But because of agricultural wastes, the income of the farmers is

being lessened.

There is enough food in the world for everyone, but one-third

of all food is wasted globally according to the Food and

Agriculture Organization. In the year 2019 alone, the Department

of Science and Technology said that Philippines had 930 million

tons of food waste. And these food losses occur even before

consumption.

Banana is a product that is widely produced and distributed

by Philippines across the world. This even served as an identity

of Filipinos in most Asian countries. As the second largest

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producer of bananas in the world, the Philippines has become a

major player in the banana exporting industry. However, despite of

this great number, a significant amount of bananas are still

discarded due to overproduction, damage during transportation, or

because they are considered too ripe to sell. This greatly affect

the income that Filipino farmers should have in planting and

producing bananas.

One of the most effective strategies to combat excessive food

waste in banana industry is by leveraging the production of various

products derived from these wastes. One notable example of such

product is banana flour – a unique type of flour made exclusively

from discarded banana fruits – utilizing what would otherwise be

wasted during the production process. This innovative product has

gained attention for its impressive nutritional profile, making it

a valuable addition to a balanced diet. According to a study

published in the Journal of Agricultural and Food Chemistry, banana

peels, a key component of banana flour, were found to possess a

beneficial chemical composition and nutritional value. The fiber

content of banana flour aids in maintaining healthy digestion,

regulating blood sugar levels, and reducing the risk of

cardiovascular diseases, as highlighted in a comprehensive

analysis published in the Journal of Nutrition. Additionally, the

Food and Agriculture Organization (FAO) reports that bananas,

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including those used to produce banana flour, are a valuable food

crop with significant nutritional significance and potential

In addition to its health advantages, banana flour also has

positive implications for society and the environment. By

repurposing discarded bananas, the production of banana flour

helps reduce food waste and decrease the burden on landfills. This

waste reduction aligns with global efforts to combat climate change

and build a more sustainable future. According to a publication by

the World Resources Institute (WRI), addressing food loss and waste

is crucial, and innovative solutions like banana flour play a

significant role in this endeavor. Moreover, banana flour can serve

as a valuable ingredient in initiatives aimed at addressing food

insecurity and malnutrition, particularly in regions where bananas

are abundant.

The economic benefits of banana flour extend beyond waste

reduction. The creation of a market for banana flour presents new

revenue streams for farmers and processors, contributing to the

economic growth of banana-producing regions. This diversification

and economic opportunity are vital for the sustainability of local

communities.

By harnessing the potential of banana flour, the banana

industry can contribute to improved health outcomes, promote

sustainable practices, and stimulate economic development. This

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innovative approach exemplifies how waste reduction and resource

utilization can intersect to create a healthier, more prosperous

future for both individuals and communities.

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OBJECTIVES OF THE STUDY

The feasibility aims to:

1. To determine the viability of the product in terms of:

1.1 Market Factor;

1.2 Technical Factor;

1.3 Management Factor;

1.4 Financial Factor; and

1.5 Socio-Economic Factor.

2. Assessed the proposed products in terms of:

2.1 Features;

2.2 Usage;

2.3 Nutritional value;

2.4 Shelf life and storage; and

2.5 Benefits and Impacts.

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DEFINITION OF TERMS

The following were defined operationally and conceptually in

order to have a better understanding of the study:

Banana – It is a fruit that grows on a large herbaceous flowering

plant in the genus Musa. It is typically elongated and curved,

with a soft flesh that is rich in starch and sugar. It can also be

converted into flour once it’s dried and pounded.

Banana flour – It is a type of flour made from dried and grounded

bananas. It is often used as a gluten-free alternative to wheat

flour in baking, as it has similar texture and can add a sweet

flavor to baked goods.

Capitalization - This refers to the financial investment made by

each partner in order to launch a new venture.

Gluten-free – This is a term used to describe foods that do not

contain gluten, a protein found in wheat, barley, and rye that can

cause adverse reactions in some people. Banana flour is gluten-

free, making it suitable alternative to wheat flour for people

with celiac disease or gluten intolerance.

Musaceae – It is a family of flowering plants that includes the

genus Musa, which contains the banana plant. The family is native

to the tropics and includes both ornamental and fruit-bearing

plants.

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Partnership – This is a type of business structure where two or

more individuals or entities, known as partners, come together to

carry on a business with a view to making a profit. In a

partnership, each partner contributes to the business in terms of

capital, labor, and/or expertise, and shares in the profits and

losses of the businesses.

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SCOPE AND LIMITATION

The study of “Harina De Musa” business is foucused on the

management, marketing, technical, socio-economic and financial

aspects of the business, with a geographical limitation to Roxas,

Oriental Mindoro.

The study is focused on producing high-quality and healthy

banana flour product at a reasonable cost that meets the demands

of consumers who are seeking the best value for their money. The

banana flour product will be distributed through direct selling,

which can enable the firm to educate consumers about the health

benefits of banana flour and provide them with the necessary

information to make informed purchasing decisions. The firm will

also accept orders – it’s either online or through phone calls -

from customers within Roxas, Oriental Mindoro who are interested

in purchasing the banana flour product.

The respondents for the study will be selected from the

consumer population of Roxas, Oriental Mindoro. Data collection

will involve the use of questionnaires and interviews conducted by

the researchers.

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CHAPTER II

MARKET STUDY

Market study is the lifeblood of every feasibility analysis,

acting as a fundamental element that encompasses all the activities

associated with the flow of goods and services from producers to

consumers. This chapter addresses the methodology employed, the

dynamics of supply and demand, and various markets strategies

utilized.

OBJECTIVES OF THE STUDY

The study aims to fulfill the following objectives:

1. To determine the supply and demand of the product.

2. To determine the market share of the product, and

3. To identify the appropriate marketing strategies.

METHODOLOGY

The proponents visited the Municipal Planning and Development

Office (MPDO) of Roxas to collect relevant data pertaining to their

target market. They conducted interviews and distributed

questionnaires among the respondents to assess the demand and

supply for the proposed product. To determine the demand, the

proponents gathered information on the total number of households

residing in the urban areas of Roxas, Oriental Mindoro. For

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assessing the supply, the proponents collected data from various

producers involved in a similar line of business.

The proponents employed a descriptive method to gather data,

which involves a purposeful and systematic approach of gathering,

analyzing, classifying, and tabulating data about the prevailing

condition practices, beliefs, processes, and trends.

The survey involved the distribution of structured

questionnaires to a selected group of respondents from Roxas,

Oriental Mindoro. Participants were randomly chosen to evaluate

the banana flour during the survey. The researchers utilized an

interview guide questionnaire to aid in conducting the survey.

Moreover, interviews were conducted with existing businesses that

sell a similar product. These interviews provided valuable

insights for the researchers to further enhance the proposed

product and cater to the preferences of the target consumers.

VALIDATION OF THE RESEARCH INSTRUMENT

The approved questionnaire of the proponents will be

distributed to the respondents for the data gathering process to

get quantitative data. The proponents also sought the advice of

other individuals whom they feel are experts in the field of

research. A group of respondents were asked to answer the

questionnaire. The questionnaires were distributed to the resident

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of urban barangays of Roxas, Oriental Mindoro which is the target

market of the study.

Using the Sloven’s Formula, the proponents determined the

sample size of the respondents of the study in the group of the

consumers or buyers.

Where: n = sample size

N = total household of barangays

E = margin of error

Solution:

N
n=
1 + Ne2

5,778
n=
1 + 5,778(0.05)2

5,778
n=
1 + 5,778(0.0025)

5,778
n=
1 + 14.445

𝐧 = 𝟑𝟕𝟒. 𝟏𝟎 𝐨𝐫 𝟑𝟕𝟒

The sample size of 374 will be the number of target

respondents of the proponents.

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TABLE I

NUMBER OF HOUSEHOLDS IN URBAN BARANGAYS IN THE MUNICIPALITY OF

ROXAS, ORIENTAL MINDORO

Urban Barangays No. of Households Respondents per Barangay

Bagumbayan 1,739 139

Paclasan 1,289 100

Odiong 942 50

San Aquilino 873 40

Dangay 935 45

Total 5,778 374

Source: PSA 2020 Census of Population and Housing

STATISTICAL TREATMENT USED

The Arithmetic Straight Line Method was used to determine the

demand and supply of the product for the past five (5) years (2016,

2017, 2018, 2019 and 2020) and projected demand and supply from

present year up to next five (5) years (2024-2028). Projected

values were utilized to assess consumer willingness to purchase

the product and determine its projected demand.

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Formula: Yc= a+Yi-1

Yc= is the initial value

𝑌𝑛−𝑌𝑐
Where: a= 𝑛−1

Yi = is the value for the year past

Yn = is the final value
N = No. of years

DEMAND

It is the willingness and ability of the consumer to patronize

the product or services being offered in the market at a given

time. It also involves their willingness and capacity to purchase

the desired item at a particular price. Understanding demand is

crucial when establishing a business as it helps determine its

feasibility and viability. Therefore, it is essential to assess

and determine the potential demand before making a purchase or

before engaging in a business venture.

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TABLE II

HISTORICAL DEMAND

YEAR HISTORICAL

DEMAND

2016 4,370.70

2017 4,443.80

BANANA FLOUR 2018 4,517.75

2019 4,594.25

2020 4,911.30

Table II presents the historical demand for banana flour.

This data is needed in order to determine the projected demand.

Historical Demand is determined by multiplying the total number of

households to the percentage of the similar product demanded by

the consumers.

PROJECTED DEMAND

To determine the potential success of the product over the

next five years, it is necessary for the proponents assess the

projected demand. This evaluation will help them determine if the

product will be able to secure a market presence during that

timeframe. The proponents used Arithmetic straight-line method to

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determine the projected demand of banana flour in Roxas, Oriental

Mindoro from year 2024-2028.

TABLE III

PROJECTED DEMAND IN UNIT

Product Year

2024 2025 2026 2027 2028

Banana 5,046.45 5,181.60 5,316.75 5,451.90 5,587.05

Flour

Table III presents the projected demand for the present year

up to next five (5) years of the proposed product.

SUPPLY

Supply is a quantity of particular goods and services that

businesses are willing to produce and make available for sale at

a given price and within a specific timeframe.

HISTORICAL SUPPLY

It is the data that were gathered and collected through

interviews and questionnaires from different enterprises in Roxas,

Oriental Mindoro. Historical supply is the total number of

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particular product that has been sold from the year 2016, 2017,

2018, 2019 and 2020.

In view of the fact that the banana flour is a unique product

in Roxas, Oriental Mindoro, the proponents interviewed retailers

of related products to gather information about the historical

supply.

TABLE IV

HISTORICAL SUPPLY

2016 2017 2018 2019 2020

Related Products
(in kg) (in kg) (in kg) (in kg) (in kg)

Eveven’s Bakery: 960 1,020 1,100 1,150 1,200

All-purpose

Flour

Laika’s Bakery: 540 580 600 650 700

Cake Flour

TOTAL 1,500 1,600 1,700 1,800 1,900

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PROJECTED SUPPLY

Arithmetic Straight Line Method is also used to identify the

projected supply of the products. This method will assess whether

the projected supply production within the next five (5) can

adequately satisfy the product’s demand.

TABLE V

PROJECTED SUPPLY

Product Year

Banana 2024 2025 2026 2027 2028

Flour
2,000 2,100 2,200 2,300 2,400
(in kg)

DEMAND AND SUPPLY

The modern economy operates on the principles of supply and

demand, which provide important information about the potential

success of a business idea and other key factors that affect its

viability. The demand for a specific product or service, as well

as its corresponding supply, are influenced by factors like price,

utility, and personal preferences. When consumers desire a

particular product and are willing to pay a higher price for it,

producers respond by increasing the supply. As the supply

increases, the price tends to decrease, assuming the level of

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demand remains constant. The ideal scenario occurs when markets

achieve a state of equilibrium, where supply and demand are

balanced, and there are no excess supplies or shortages at a given

price level. This equilibrium optimizes both consumer satisfaction

and producer profits. The analysis of demand and supply is an

essential aspect of a feasibility study, encompassing marketing

considerations, such as demand and supply.

MARKET GAP

It is the difference between the projected demand and

projected supply.

TABLE VI

DEMAND AND SUPPLY

PROJECTED PROJECTED SUPPLY

YEAR MARKET GAP
DEMAND (in kilogram)

2024 5,046.45 2,000 3,046.45

2025 5,181.60 2,100 3,081.60

2026 5,316.75 2,200 3,116.75

2027 5,451.90 2,300 3,151.90

2028 5,587.05 2,400 3,187.05

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The Table VI shows that the market gap for banana flour

increased from 3,046.45 to 3,187.05 units between the years 2024

and 2028. This upward trend in the market gap suggests a growth in

sales for the proposed product, given that there is a large market

gap to fill in.

MARKET SHARE

The proponents determined the market share by dividing the

sales volume with the projected demand. Production capacity

depends on the maximum number of household and delicacies products

are being produced per day.

Formula: Production Volume/Projected Demand x 100

Table VII

EXPECTED PRODUCTION SCHEDULE

(IN ONE YEAR, FIRST YEAR OPERATIONS)

Product Production Estimated Expected production

capacity per working days in one year
Day in 1 year (Production
Capacity per year x
estimated working
days in one year)
Banana 8 kilos 240 1,920
Flour

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Table VIII

MARKET SHARE

PROJECTED
YEAR PROJECTED DEMAND MARKSET SHARE
SUPPLY
2024 2,000 5,046.45 39.63%
2025 2,100 5,181.60 40.53%
2026 2,200 5,316.75 41.38%
2027 2,300 5,451.90 42.19%
2028 2,400 5,587.05 42.96%

MARKET STRATEGIES

It is the first step to make a product known to the public.

These are designed to effectively promote and sell a product or

service in a competitive market. This was the reason why

entrepreneurs concentrate on what is the best strategy to employ.

Within a marketing program, there are crucial elements that can be

summarized as the seven essential components: Market Research,

Target Market, Positioning, Competitive Analysis, Market

Strategies, Budget, and Metrics.

A well-designed marketing program not only enhances brand

recognition and awareness but also cultivates stronger connections

with target customers, who can help promote the brand. To engage

with these customers and effectively reach them, various marketing

techniques can be utilized. These marketing techniques include

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social networking, radio, affiliate marketing, and in-store

sampling.

Market strategy plays a vital role in business as it enables

companies or firms to identify its target customers, establish a

unique competitive advantages, and increase brand awareness.

Through the implementation of effective marketing strategies,

businesses can ensure their success in a competitive marketplace.

PRODUCT

A product is anything that can be presented and offered to a

market with the intention of being sold, attracting attention,

acquired, used or consumed to fulfill the needs and desires of

target customers.

Harina De Musa is offering a highly nutritious and versatile

flour. Their product is made from peeled, chopped, dried, and

finely ground bananas, without any added preservatives and

additives. The banana flour from Harina De Musa is a nourishing

and versatile ingredient that can offer various health advantages

when incorporated into a well-balanced diet.

The banana flour is packaged in brown plastic stand-up pouches

with a zip lock, with each pack containing 125 grams of flour.

Each pack is individually labeled, and there are thirty (30)

pouches in each box.

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BRANDING

The process involves creating a unique image, name, symbol,

and design for a product in the consumers’ minds mainly through

advertising campaigns with consistent theme. Branding seeks to

establish a prominent and distinct presence in the market that

attracts and retains loyal customers.

The company has adopted the name “Harina De Musa” as both their

brand name and firm name. This name is derived from the Spanish

term for flour, “Harina,” and the family name of bananas,

“Musaceae.” The name effectively captures the essence the product,

as it signifies that the flour is made from bananas and can be

used in various recipes such as bread, pancakes, cookies, and

muffins, offering a subtle and pleasant banana flavour.

COMPETITION

In a specific market, both businesses and individuals are

competing for the same set of customers. These businesses are in

intense competition with one another, striving to offer the best

value for money by providing high-quality and nutritious flour,

and by providing a diverse range of products that best cater to

the needs of their customers.

The competition in the flour market is intense, with many

firms vying for market share and customer loyalty. Price, quality,

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innovation, and consumer preferences are all important factors in

determining success in the market, and companies that can balance

these factors effectively are likely to come out ahead. The fact

that some flour is cost-effective and some are not because of its

uses and different benefits being provided.

While banana flour faces stiff competition from other types of

flour in the market, it has several unique advantages that make it

an attractive option for health-conscious consumers. Furthermore,

the value of its flour is affordable which make it a versatile and

accessible option for baking and cooking. As consumer demand for

gluten-free and healthier options continues to grow, banana flour

is likely to become an increasingly popular choice in the flour

market. As socially responsible individuals, the proponents

provide flour that is both beneficial and healthy for daily

nutritional requirements, which we obtain from the nutritious

fruit, Banana.

In the market, businesses have to contend with direct

competitors who produce similar or identical goods. Regarding our

competition, we primarily focus on small producers as they are

more likely to have a similar business approach to ours. However,

most products have some differentiation.

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FIGURE I

CHANNEL OF DISTRIBUTION

Producer

Retailer

Consumer

CHANNELS OF DISTRIBUTION

A channel of distribution, also known as a trade channel,

refers to the path taken by a product from the producer to the

final consumers or industrial users.

The firm will employ two forms of marketing as distribution

channels for its products: direct and indirect marketing. Direct

marketing involves producers directly delivering the product to

consumers. In the case of Harina De Musa, it operates a physical

store situated in Bagumbayan, Roxas, Oriental Mindoro where its

product will be directly sold to customers. The firm will also

utilized indirect marketing and this will be done in two ways.

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Firstly, the product may be distributed to wholesalers, who will

then distribute it to retailers, and ultimately the retailers will

deliver the product to consumers. Alternatively, Harina De Musa

may directly distribute the product to retailers, who will then be

responsible for delivering it to consumers.

PROMOTION

Promotion involves organized efforts initiated by the seller to

create channels of information and persuasion aimed at

establishing a positive image of the product, increasing product

awareness, generating interest, and persuading potential customers

to make a purchase.

To promote the product, the packaging and labelling will be

improved. Furthermore, the proponents will employ sales promotion

techniques such as offering discounts for bulk purchases, coupons,

and providing free samples.

ADVERTISING

Advertising is a non-personal form of communication that

serves as a marketing function by conveying factual information

and employing persuasive techniques to convince and influence the

target market.

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Table IX

Advertising Expense

Particulars Quantity Cost Amount

Tarpaulin 5 180 Php 900.00
Flyers 50 sheets 5 250.00
Online Ads - - -
Total Php 1,150.00

Note: Online advertisements will be cost-free since the firm will

use social media platforms to advertise its product.

PRICING

Pricing is the process of determining the unit cost of a

product. It involves setting a price that is both reasonable for

customers and allows the business to achieve a return on its costs.

Various pricing methods exist, each emphasizing different factors

such as the selection, estimation, and evaluation of costs,

comparative analysis, and marketing situation. These methods help

businesses in determining an appropriate pricing strategy based on

their specific goals and circumstances.

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TABLE X

STANDARD COSTING SCHEME

Unit Quantity Total Cost/

Particular Percentage Price Produced Total Price

Direct 20 24,000
Materials
Direct Labor - - -
Factory 50% 8.50 - 30,720
Overhead
Manufacturing 28.50 1,920 54,720
Cost
Marketing 5.50 - 10,824
Administrative 50% 6.70 - 12,600
Marketing Cost 12.20 1,920 23,424
Total Cost 67.83% 40.70 - -
Mark Up 32.17% 19.30 - -
Selling Price 100% 60 1,920 115,200

PROJECTED PRICE
TABLE XI
PROJECTED PRICE
(FOR THE YEAR 2024-2028)

Year Selling Price

2024 60
2025 65
2026 70
2027 75
2028 80

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CHAPTER III

TECHNICAL STUDY

The technical study dicusses the methods of production, the

timing of production, the cost estimation for production, the

suitable locations for production, and the technology to be

employed in the production process.

The technical study is typically one of the initial studies

that need to be carried out once a project has been identified.

OBJECTIVES OF THE STUDY

This aims to determine the following objectives:

1. To identify the product by gathering input from users and

provide a comprehensive understanding of its characteristics

and nature;

2. To evaluate whether the business can achieve a high-quality

product while minimizing costs; and

3. To determine the availability and accessibility of the

necessary resources for the product.

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PRODUCT

DESCRIPTION OF THE PRODUCT

Harina de Musa, a pioneering firm in the food industry,

presents its innovative product - banana flour. By utilizing

rejected bananas, Harina de Musa addresses the critical issue of

agricultural waste while creating a valuable and sustainable

product. The banana flour undergoes a meticulous production

process, carefully transforming the rejected bananas into a high-

quality flour. With a smooth and fine texture, the banana flour

possesses a light color that reflects its purity and craftsmanship.

Its distinctive qualities are a testament to Harina de Musa's

commitment to reducing waste and promoting sustainable practices

within the agricultural sector. Through their efforts, Harina de

Musa offers a unique solution to the surplus of rejected bananas,

harnessing their inherent nutritional benefits and transforming

them into a versatile ingredient that holds tremendous potential

for various applications.

USES OF THE PRODUCT

Harina de musa, or banana flour, is a versatile product that

can be used in a variety of ways in cooking and baking. It can be

used as a replacement for wheat flour in baked goods, such as

bread, cakes, and cookies. It can also be used as a thickening

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agent in soups and stews, as well as sauces and gravies. Banana

flour is also an excellent ingredient for making vegan meat

substitutes, such as burgers and sausages. Additionally, it can be

used to make homemade baby food, as it is easy to digest and rich

in nutrients. Banana flour is a good source of dietary fiber,

vitamins, and minerals, including potassium, magnesium, and

vitamin C. Overall, banana flour is a nutritious and flexible

ingredient that can add unique flavors and textures to a wide range

of dishes.

USERS OF THE PRODUCT

The target market for Harina de Musa's banana flour includes

children, parents, pregnant women, bakeries, and food producers.

These consumer segments have been identified as key targets due to

their ability to afford and benefit from this unique product.

Children and parents are particularly interested in nutritious and

gluten-free alternatives for their families, while pregnant women

seek wholesome ingredients for their dietary needs. Bakeries and

food producers, on the other hand, require versatile and

sustainable ingredients to cater to the increasing demand for

specialized and eco-friendly products. By focusing on these

specific market segments, Harina de Musa aims to meet the diverse

needs of health-conscious individuals, provide them with a high-

quality banana flour option, and position itself as a reliable and

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preferred choice in the market. Additionally, targeting these

segments allows the company to establish strong relationships and

partnerships with businesses that value sustainability and seek

innovative ingredients for their product lines.

MANUFACTURING PROCESS

DESCRIPTION OF THE PROCESS

Here are the steps of creating and manufacturing banana flour

from surplus or rejected bananas.

A. PREPARATION OF MATERIALS, TOOLS, AND EQUIPMENT

Prepare the raw materials and tools to be used. At the same

time, check the quality and quantity of the materials, tools,

and equipment that will be used in the entire process.

 TOOLS AND EQUIPMENT

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 INGREDIENT

B. PRODUCTION PROCESS

Ingredients:

1 bunch of banana (which contains 8 clusters of banana)

PROCEDURE:

1. Choose ripe or green bananas depending on the desired color

and sweetness of the flour. Ripe bananas are sweeter and make

a darker flour, while green bananas make a lighter flour.

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2. Peel the bananas and slice them into small pieces, about 1/8

inch thick.

3. Dry the banana slices. There are a two methods to dry the

banana slices: oven method and sun-drying method.

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4. Once the banana slices are completely dry, grind them in a

blender or food processor until they turn into a fine powder.

Alternatively, you can use a mortar and pestle to grind the

banana slices in small batches.

5. Pass the banana flour through a fine-mesh sieve to remove any

large particles or lumps. If this tool is not available, you

can also use strainer.

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6. Pack and store the banana flour in an airtight container in

a cool, dry place.

C. PACKAGING PROCESS

 Finished product will be packed on a clean biodegredable

wrapper with seal.

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D. DISPLAY/STORING

 Some of the finished products will be placed on display,

while others will be stored.

FLOW CHART OF MANUFACTURING PROCESS

FIGURE II

1
• RAW MATERIALS

2
•PRODUCTION
3
•PACKAGING
4
•STORING

PACKAGING INSPECTION DELIVERY

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PRODUCTION STORAGE

The workers will be working five (5) days a week, and the

delivery of products to prospective markets will take place on

Fridays. The workers are required to work eight (8) hours a day,

starting at 8 o’clock in the morning and ending at 5:00 in the

afternoon. This includes a one-hour lunch break from 12:00 p.m. to

1:00 p.m. and a 30-minute coffee break from 3:00 p.m. to 3:30 p.m.

The given work schedule will be strictly followed, and the

manufacturing process must meet the set qouta for each day. It is

expected that production will increase in the succeeding years due

to the expertise and specialization of workers in the manufacturing

process.

In the first year of operation, the proponents will not hire

any workers as they are still in the initial stages of starting

their business. However, once they establish themselves in the

market, they plan to hire at least three (3) employees who will be

responsible for different roles in the business. One employee will

be responsible for the preparation of raw materials and the

production of banana flour. Another employee will handle packaging

and storing duties. And the third employee will be assigned the

task of selling the products in the store. These three employees

will be trained and supervised by the General Manager as well as

the respective heads of different departments within the firm.

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TABLE XII

TIME AND MOTION STUDY

Process Time Consumed Manpower Quantity Produced

(8 hours or Daily (will be
480 minutes) packed in 250g
portion)
Preparation 3 mins. Worker 8 kilos
Production 2 hours Worker 8 kilos
Packaging 30 mins. Worker 8 kilos
Storing 3 mins. Worker 8 kilos

PRODUCTION SCHEDULE

The Harina De Musa Store is open from Monday to Friday. The

production process begins at 8:00 a.m. and continues until 5:00

p.m. The workers typically have a Monday to Friday schedule.

Deliveries of products to prospective markets are made on Fridays.

It is anticipated that production will increase in the following

years due to the employees’ high-quality service and the growing

demand for banana flour from customers.

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TABLE XIII

OPERATING SCHEDULE

Year Daily (in Weekly (in Monthly (in Yearly(in

kg) kg) kg) kg)
2024 8 40 160 1,920

2025 23 115 460 5,520

2026 38 190 760 9,120

2027 53 265 1,060 12,720

2028 68 340 1,360 16,320

From 2024 to 2028, over the course of five years, the

production is expected to increase from 1,920 kilograms to 16,320

kilograms.

TABLE XIV

OPERATING ASSUMPTION

Description Schedule

Hours of operation per day 8 hours

Days of operation per week 5 days

Days of operation per month 20 days

Days of operation per year 240 days

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FURNITURE AND FIXTURE

The following are the furniture and fixtures that need to be

purchased by Harina De Musa. These items will be essential for the

production process of banana flour.

TABLE XV

OFFICE FURNITURE AND FIXTURES

Items Quantity Unit Cost Amount

Ceiling fan 1 1,100.00 1,100.00
Plastic Chair 4 350.00 1,400.00
Table/Cabinet 2 2,000.00 4,000.00
20 watts bulb 2 120.00 240.00
TOTAL 6,740.00

TABLE XVI

FACTORY FURNITURE AND FIXTURES

Items Quantity Unit Cost Amount

Working Table 1 1,300.00 1,300.00
Working Chair 2 200.00 400.00
Florescent Lamp 1 250.00 250.00
20 watts Bulb 1 120.00 120.00
Fire Extinguisher 1 2,000.00 2,000.00
TOTAL Php.4,070.00

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KITCHEN TOOLS AND EQUIPMENT

The following tools and equipment are needed by Harina De

Musa for banana flour production.

TABLE XVII

KITCHEN TOOLS AND EQUIPMENT

Items Quantity Unit Cost Amount

Bowls 2pcs. 100.00 200.00
Blender 1pc. 1,300.00 1,300.00
Strainer 2pcs. 65.00 130.00
Mortar and pestle 1pc. 380.00 380.00
Tray 2pcs. 350.00 700.00
Oven 1pc. 5,000.00 5,000.00
Peeler 2pcs. 50.00 100.00
TOTAL Php.7,810.00

Plant Location

Harina De Musa will be located in Bagumbayan, Roxas, Oriental

Mindoro. The total area will be divided into five (5) parts:

 Office

 Working Area(including storage and packing area)

 Kitchen or Pantry

 Comfort Room

 Store

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FIGURE III

FLOOR PLAN

CUT VIEW

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3D VIEW

TOP VIEW

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FIGURE IV

VICINITY MAP OF HARINA DE MUSA

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RAW MATERIALS AND SUPPLY

The proponents will produce the raw material within the

vicinity of Roxas and Mansalay in Oriental Mindoro. However, they

will still purchase additional supply of bananas from the local

farmers of Roxas and Mansalay.

DIRECT MATERIALS

The following is the only direct material needed for this

study:

TABLE XVIII

DIRECT MATERIALS

(FOR ONE MONTH OPERATION)

Items Quantity Unit Cost Amount Monthly

Banana 50 kilos 40.00 2,000.00

TOTAL 2,000.00

Note: There is no specified amount of direct material because the

banana will be produced by the proponents.

INDIRECT MATERIALS

Indirect materials are materials necessary for the production

process but are not visibly present in the final product. However,

in the case of banana flour production, there are no indirect

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materials used. Therefore, no data regarding indirect materials

has been entered in this table.

TABLE XIX
INDIRECT MATERIALS
(FOR ONE MONTH OPERATION)

Items Quantity Unit Cost Amount

SUPPLIES

The following supplies are required to be purchased by Harina

De Musa for the production of banana flour.

TABLE XX

PACKAGING SUPPLIES

(FOR ONE MONTH OPERATION)

Items Quantity Unit Cost Amount

Plastic Stand 167 2.00 334

Logo Sticker 167 3.00 501

TOTAL 835.00

OFFICE SUPPLIES

The following office supplies are necessary for the

operations of Harina De Musa’s office.

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TABLE XXI
OFFICE SUPPLIES
(FIRST MONTH OF OPERATION)

Items Quantity Unit Cost Amount

Record Book 2 pcs 50.00 100.00
Puncher 1pc 65.00 65.00
Fastener 1pack 30.00 30.00
Bond Paper 1 ream 180.00 180.00
Ballpen 10pcs. 6.00 60.00
Calculator 1pcs. 180.00 180.00
Folder 5pcs. 5.00 25.00
TOTAL 640.00

TABLE XXII
FACTORY SUPPLIES
(ONE MONTH OPERATION)

Items Quantity Unit Cost Amount

Biodegradable And 250pcs 2.00 500.00
Transparent Plastic
Hair Net 4pcs. 15.00 60.00
Cooking Gloves 16 pairs Php.5/pair 80.00
Apron 4 pcs. 20.00 80.00
TOTAL 720.00

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UTILITIES

The project requires utilities to benefit the employees,

customers, and the project itself. Good sanitation practices will

help the employees work efficiently and ensure customer

satisfaction with the goods being purchased.

The following utilities are being used by Harina De Musa in

their overall operations.

1. ELECTRICITY

Electricity is the most important energy source for

businesses of all sizes today. Harina De Musa, located in

Bagumbayan, Roxas, Oriental Mindoro, relies on the Oriental

Mindoro Electric Cooperative (ORMECO) to provide electricity

for its operations. Electricity is extensively utilized to

power the building and the electric devices used in the

production of banana flour.

2. WATER

Water is an essential resource for businesses, and those

without regular or continuous access to clean water face

challenges such as the need to increase prices or even

shutdown operations. Water is also vital for sanitation, and

businesses that lack access to clean water may not be granted

the necessary permits to commence their operations.

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3. WASTE DISPOSAL

Harina De Musa and its employees take responsibility for

maintaining cleanliness. Proper waste disposal is crucial

because certain types of waste can be hazardous and have the

potential to contaminate the environment if not handled

correctly. Such wastes can also pose health risks and

contribute to the spread of diseases. Ensuring proper waste

disposal is not only necessary for establishing a business

but also for the well-being of the workers. It involves the

appropriate handling and disposal of discarded or discharged

materials in accordance with local environmental guidelines

and laws.

TABLE XXIII

UTILITIES

Utilities Monthly Cost

Electricity 800.00

Water 350.00

TOTAL Php 1,150.00

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COMMUNICATION

Effective communication is crucial for facilitating faster

transactions and efficient management. Harina De Musa utilizes

cellular phones to contact suppliers and workers, while telephone

and desktop computer are used to accommodate customers who wish to

place orders online or via phone calls. The firm incurs a monthly

expense of Php.400.00 on prepaid load for communication purposes.

TABLE XXIV
MONTHLY COST OF PREPAID LOAD

Description Cost

Globe Prepaid Load 400

TOTAL Php.400.00

TRANSPORTATION

Harina De Musa follows a delivery schedule for banana flour,

which takes place only on Fridays. The estimated monthly

transportation cost for these deliveries is Php 1,000.00. This

cost not only covers the delivery of banana flour but also includes

expenses related to sourcing banana supplies from suppliers or the

firm’s owned farm, as well as the procurement necessary supplies

or materials for the businesses.

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TABLE XXV
MONTHLY COST FOR TRANSPORTATION

Description Cost

Transportation 1,000

TOTAL Php 1,000.00

MISCELLANEOUS

The following miscellaneous are needed by the employees of

Harina De Musa during the working hour.

TABLE XXVI
MISCELLANEOUS EXPENSES
(FIRST MONTH OPERATION)

Items Quantity Unit Cost Amount

Broom 1pc. 50.00 50.00
Doormat 2pcs. 30.00 60.00
Detergent Soap 1 bar 25.00 25.00
Rugs 5pcs. 5.00 25.00
Hand Soap 5pcs. 18.00 90.00
Dishwashing Liquid 2 btl. 45.00 90.00
Dust Pan 1pcs. 35.00 35.00
Trash Can 2pcs. 50.00 100.00
Apron 4pcs. 20.00 80.00
Garbage Bag 50pcs. 2.00 100.00
Dipper 2pcs. 20.00 40.00
Tub 1pc. 150.00 150.00
TOTAL Php 845.00

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CHAPTER IV

MANAGEMENT STUDY

It is challenging to provide a precise definition of the

term ‘management’ as various scholars from different disciplines

perceive and interpret it from their own perspectives. Economists

regard management as a resource similar to land, labor, capital

and organization. Bureaucrats perceive it as a sysstem of authority

aimed at achieving business goals. And sociologists view managers

as part of the societal elite class.

According to Knowledge Management Terms of 2009,

”Management is the organizational process that includes strategic

planning, setting objectives, managing resources, deploying the

human and financial assets needed to achieve objectives, and

measuring results. Management functions are not limited to

managers and supervisors. Every member of the organization has

some management and reporting functions as part of their job.”

OBJECTIVES OF THE STUDY

The study aims to fulfill the following objectives:

1. To reduce the costs.

2. To establish sound organization structure.

3. Optimum utilization of resources.

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4. Promote ethical business practices.

FORMS OF BUSINESS OWNERSHIP

A partnership is formed when two or more individuals

agree to contribute money and property with the intention of

sharing profits among themselves. Partnerships provide moral

support and foster creative brainstorming. In this study, the

business organization is called “Harina De Musa” and is composed

of four individuals: Cherie Joie Taladtad, Blezyl Dela Fuente,

Alberto Atienza, and Jamaica Aquino

The four (4) individuals agreed to form a partnership

for the following advantages:

1. Partnerships are relatively easy to establish.

2. The ability to raise funds may be increased, because two or

more partners mat be able to contribute more funds.

3. The business usually will benefit from partners who have

complementary skills.

CAPITALIZATION

The owners will contribute an initial capitalization of

75,000 pesos, which will be equally provided by each owner. The

following capital will shown below.

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TABLE XXVII

INITIAL CAPITAL

Name Of Partners Amount of Sources of Fund

Initial Capital
Aquino, Jamaica 75,000 Personal Savings
Atienza, Alberto 75,000 Personal Savings
Dela Fuente, Blezyl 75,000 Personal Savings
Taladtad, Cherie Joie 75,000 Personal Savings
TOTAL PHP 300,000.00

ORGANIZATIONAL STRUCTURE

FIGURE V

TALADTAD,
CHERIE JOIE
General Manager

DELA FUENTE, ATIENZA, AQUINO,

BLEZYL ALBERTO JAMAICA
Operations Head Marketing Head Finance Head

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The organizational structure indicates that Cherie Joie

Taladtad will serve as the General Manager, Blezyl Dela Fuente

will be the Operations Head, Alberto Atienza will be the Marketing

Head, and Jamaica Aquino will be the Finance Head.

MANPOWER REQUIREMENT

Identifying the firm’s manpower requirements is crucial for

the success of the business. The quality of the people within the

organization plays a significant role in determining its success

and failure.

DUTIES AND RESPONSIBILITIES

 GENERAL MANAGER

 Setting strategic goals and objectives for the company's

banana flour business.

 Developing and implementing policies and procedures to

ensure efficient operations.

 Overseeing the work of department heads and providing

guidance and support.

 Making key decisions regarding resource allocation,

budgeting, and investment.

 Building and maintaining relationships with suppliers,

distributors, and key stakeholders.

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 Representing the company in industry events and

collaborations.

 Monitoring overall performance and implementing measures

to improve efficiency and profitability.

 OPERATIONS HEAD

 Planning and managing the production and supply chain

operations of banana flour.

 Ensuring efficient utilization of resources to meet

production targets and delivery schedules.

 Developing and implementing operational procedures and

quality control standards.

 Managing inventory levels and forecasting demand for

banana flour.

 Coordinating with suppliers to ensure a steady supply of

raw materials.

 Identifying and resolving operational issues and

optimizing production processes.

 Ensuring compliance with food safety regulations and

quality standards.

 MARKETING HEAD

 Developing and executing marketing strategies to promote

banana flour products.

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 Conducting market research to identify target markets,

consumer preferences, and trends.

 Creating and managing marketing campaigns across various

channels (online and offline).

 Developing packaging and branding strategies for banana

flour products.

 Managing advertising, PR, and promotional activities to

increase brand awareness and drive sales.

 Collaborating with sales teams to develop pricing

strategies and distribution channels.

 Monitoring and analyzing marketing metrics to assess

campaign effectiveness and ROI.

 FINANCE HEAD

 Managing financial planning, budgeting, and forecasting

for the banana flour business.

 Preparing financial statements, including income

statements, balance sheets, and cash flow statements.

 Monitoring financial performance and providing regular

financial reports to management.

 Conducting financial analysis to support decision-

making, such as profitability analysis and pricing

strategies.

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 Managing cash flow, accounts receivable, and accounts

payable for the banana flour business.

 Ensuring compliance with financial regulations and tax

requirements.

 Collaborating with other departments to align financial

goals with overall business objectives.

JOB QUALIFICATIONS

If one of the partners terminates the partnership and the

firm decides to hire someone to replace him or her, the following

qualifications are needed:

 GENERAL MANAGER

 Minimum age of twenty-five (25) years, regardless of

gender.

 Bachelor’s degree in business administration,

management, or a related field.

 At least two (2) years of experience in a managerial

role, preferably in the food or consumer goods

industry.

 Strong leadership skills, with the ability to

effectively oversee and coordinate different

departments.

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 Strategic thinking and the ability to set and execute

business strategies.

 Excellent communication and interpersonal skills to

interact with stakeholders, employees, and customers.

 Financial acumen and the ability to analyze financial

data and make informed business decisions.

 Knowledge of supply chain management, operations, and

sales.

 OPERATIONS HEAD

 Minimum age of twenty-five (25) years, regardless of

gender.

 Bachelor’s degree in operations management, supply

chain management, or a related field.

 At least two (2) years of experience in operations

management, preferably in the food manufacturing

industry.

 In-depth knowledge of production processes, quality

control, and inventory management.

 Strong problem-solving skills and the ability to

optimize operational efficiency.

 Familiarity with regulatory compliance and safety

standards in the food industry.

 Excellent organizational and time management skills.

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 At least 2 years work experience

 Computer literate

 Possess good moral character

 Must be honest and with pleasing personality.

 MARKETING HEAD

 Minimum age of twenty-five (25) years, regardless of

gender.

 Bachelor’s degree in marketing, business

administration, or a related field.

 At least two (2) years of experience in marketing and

brand management, ideally in the food or consumer

goods industry.

 Strong understanding of market trends, consumer

behavior, and competitor analysis.

 Ability to develop and execute marketing strategies,

including digital marketing campaigns.

 Proficiency in market research, product positioning,

and brand development.

 Excellent communication and creative thinking skills.

 Familiarity with social media marketing, content

creation, and advertising.

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 FINANCE HEAD

 Minimum age of twenty-five (25) years, regardless of

gender.

 Bachelor’s degree in finance, accounting, or a related

field.

 At least two (2) years of experience in financial

management and accounting, preferably in the food

industry.

 In-depth knowledge of financial analysis, budgeting,

forecasting, and cost control.

 Strong understanding of financial statements and

ability to interpret financial data.

 Familiarity with tax regulations and compliance.

 Must have an experience in financial planning, cash

flow management, and risk assessment.

 Excellent analytical and problem-solving skills.

COMPENSATION

It is the right of every worker to receive fair compensation

for the work performed on behalf of the business.

The General Manager, Operations Head, Marketing Head, and

Finance Head, as part of the capitalist structure, will receive a

monthly salary based on the provincial minimum wage set by the

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Department of Labor and Employment (DOLE) for non-agricultural

industries with twenty (20) workers and below.

SALARIES AND WAGES

The firm has a set schedule for providing salaries and wages

to its employees. Salaries are released in two payments each month,

with half paid on the 15th and the other half on the 30th of the

same month. If the scheduled pay day falls on a non-working

holiday, the firm ensures that employees receive their pay in

advance. The firm recognizes the importance of timely and reliable

pay to its employees and takes steps to ensure that all payments

are made accurately and on schedule. The company clearly

communicates its salary schedule and policies to all employees

during the hiring process and through its employee handbook.

ORGANIZATIONAL POLICY

An organizational policy is composed of rules and regulations

derived from the management philosophy, which serve as guiding

principles to help an organization achieve its goals.

Here are some examples of organizational policies:

A. TO EMPLOYEE

 Working day is from Monday to Friday.

 Working hours start from eight o’clock (8:00) in the

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morning until five o’clock (5:00) in the afternoon.

 Lunch break is from twelve o’clock (12:00) until one

o’clock (1:00) in the afternoon.

 There is a fifteen (15) minute coffee break in the

morning and thirty (30) minutes in the afternoon.

B. TO SUPPLIERS

 The supply of bananas will be delivered every Friday at

three o’clock in the afternoon.

 The payment term is thirty (30) days.

 Rejected bananas will be accepted as long as they can

still be processed into flour. If not, the bananas will

be returned to the supplier.

C. TO CUSTOMERS

 No refund can be issued; however, the product can be

exchanged.

 Product exchanges must be made within three (3) days

from the date of receipt.

LEGAL REQUIREMENTS

Registration entitles the business to government benefits and

privileges. Below are the lists of national and local legal

requirements.

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NATIONAL REQUIREMENTS

1. Registration of the business name with Securities and

Exchange Commission (SEC).

 Application Form

 Proponents must be legal age

 Proof of citizenship

 2x2 ID picture

2. Registration to the Department of Trade and Industry (DTI).

 Application Form

 DTI Registration Fee of Php500.00 plus documentary fee

of php500.00

 Proponents must be legal age

3. Registration to the Bureau of International Revenue (BIR).

 Application Form

 Photocopy of DTI Registration Certificate

 Photocopy of Mayor’s Permit

 BIR Registration Fee of Php1,500.00 plus documentary fee

of Php500.00

LOCAL REQUIREMENTS

1. Registration for Mayor’s permit.

 Residence Certificate

 Sanitary Permit

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 Barangay Business Clearance

 BIR

 Municipal Treasurer’s Office Receipt

 Photocopy of DTI Certificate

 Fire Clearance

 SSS Clearance

 Phil Health

 Locational Clearance

 ESO Clearance

In connection with the requirement in securing Mayor’s

Permit, the following fees must be paid:

 Registration Fee

 Municipal License

 Mayor’s Permit

 Occupational Tax

 Business Plate

 Fire Safety Inspection Certificate

 Garbage Fee

 Service Fee

 Health Certificate

 Sanitary Inspection Certificate

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Attached is schedule of permits and license and the

corresponding amount of year 2023-2025.

TABLE XXVIII
PERMITS AND LICENSES
LIST OF FEES 2023-2025
BIR 530
DTI 1,700
Registration 500
Municipal 500
Mayor’s Permit 650
Occupational Tax 300
Business Plate 425
FSI Certificate 355
Garbage Fee 700
Service Fee 100
Health Certificate 100
Sanitary Inspection 150
TOTAL Php.6,010

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CHAPTER V

FINANCIAL STUDY

The financial study deals with the computation of the data

incurred in the study. It focuses on the costs in running the

business, including the expenses in producing the product. Through

the financial study, the proponents are able to determine the

capabilities of the firm to gain profit and identify potential

financial challenges.

OBJECTIVES OF THE STUDY

The study aims to determine the following:

1. To establish the financial assumptions of the business

2. To identify the total project cost based on the first month

of operation

3. To analyze the financial data of the firm to be able to

prove that firm’s profitability, liquidity and stability,

asset utilization or activity, and debt-utilization or

leverage.

4. To determine the overall performance of the business

operation.

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TOTAL PROJECT COST

It provides information regarding the composition of the

business, which includes current assets and fixed assets. This

information is necessary to support the activities and expenses of

the business during the operation.

TABLE XXIX
Total Projected Cost
(Based on First Month Operation)

Particulars JANUARY

Pre-operating Expense

Permits and Licenses 6,010.00

Total Pre-Operating Expense 6,010.00

Operating Expense

Raw Materials 2,000

Indirect Materials -

Packaging Supplies 835.00

Communicaton 400.00

Miscellaneous 845.00

Utilities 1,150.00

Transportation 1,000.00

Advertising 1,150.00

Office Supplies 640.00

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Factory Supplies 720.00

Total Operating Expense 8,740.00

Current Asset

Acquisition of Non-Current Asset

Office Furniture and Fixture 6,740.00

Factory Furniture and Fixture 4,070.00

Kitchen and Tools Equipment 7,810.00

Total Non-Current Asset 18,620

Total Projected Cost 33,370

Less: Partners Contribution 300,000

CASH ON HAND 266,630.00

INITIAL CAPITAL REQUIREMENTS

Initial capital requirements are the funds needed to start

and establish a new business or project. It represents the amount

of money required to cover the initial expenses and financial

obligations before generating any revenue or profit. This

information is crucial as it will be needed to support the

activities and expenses of the business during the operation.

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SOURCES OF FINANCING

The partners will contribute seventy-five thousand pesos

(75,000.00) each from their personal savings in order to purchase

equipment, raw materials, and cover other expenses needed to run

the business.

In the projected years ahead, if the capital balance falls

short of supporting the necessary financial expenses, the business

partners will consider obtaining a loan from a bank to bridge the

gap.

STATEMENT OF COST OF GOOD SOLD

2024 2025 2026

Beg. Inventory 15,000 13,000
Add:
Cost of Goods Manufactured 78,144 88,144 98,144
Goods Available For Sale 78,144 103,144 111,144
Less: Ending Finished Goods Inventory 15,000 13,000 11,000
COST OF GOODS SOLD 63,144 90,144 100,144

STATEMENT OF COST OF GOOD SOLD

2027 2028

Beg. Inventory 11,000 9,000

Add:
Cost of Goods Manufactured 108,144 118,144
Goods Available For Sale 119,144 127,144
Less: Ending Finished Goods Inventory 9,000 7,000
COST OF GOODS SOLD 110,144 120,144

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INCOME STATEMENT
FOR THE YEAR ENDED DEC.2024 - DEC.2028

2024 2025 2026

Net Sales 115,200 135,200 155,200

Less: Cost of Goods Sold 63,144 90,144 100,144
Gross Income 52,056.00 45,056.00 55,056.00

Less: Operating Expense

Factory Supplies 720 720 720
Office Supplies 640 640 640
Utilities 1,150 1,150 1,200
Transportation 1,000 1,000 1,000
Advertising 1,150
Communication 400 400 400
Miscellaneous 845 1,000 1,000
Permit and Licenses 6,010 6,010 6,010
Depreciation Expense 3,160 3,160 3,160
Total Operating and
15,075 17,883 23,030
Administrative Expense
Income Before Tax 36,981.00 27,173.00 32,026.00
Less: Income Tax 0 0 0
NET INCOME 36,981.00 27,173.00 32,026.00

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INCOME STATEMENT
FOR THE YEAR ENDED DEC.2024 - DEC.2028

2027 2028

Net Sales 175,200 195,200

Less: Cost of Goods Sold 110,144 120,144
Gross Income 65,056.00 75,056.00

Less: Operating Expense

Factory Supplies 720 720
Office Supplies 640 640
Utilities 1,250 1,300
Transportation 1,000 1,000
Advertising
Communication 400 400
Miscellaneous 1,100 1,200
Permit and Licenses 6,010 6,010
Depreciation Expense 3,160 3,160
Total Operating and
14,280 14,430
Administrative Expense
Income Before Tax 50,776.00 60,626.00
Less: Income Tax 0 0
NET INCOME 50,776.00 60,626.00

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PROJECTED STATEMENT OF CASH FLOW

FOR THE YEAR ENDED DEC.2024 - DEC.2028

2024 2025 2026

Cash Inflows
Cash Beg. 269,465.00 239,925.00
Operation Activities
Cash Receipts for Customer
Cash Paid For
Advertising 1,150
Utilities 1,150 1,150 1,200
Miscellaneous Expense 845 1,000 1,000
Communication 400 400 400
Transportation 1,000 1,000 1,000
Permit and Licenses 6,010 6,010 6,010
Income Tax 0 0 0
Net Cash Flow for Operation 10,555.00 9,560.00 9,610
Investment Activities
Factory Supplies 720 720 720
Office Supplies 640 640 640
Office Furniture and
6,740 6,740 6,740
Fixture
Factory Furniture and
4,070 4,070 4,070
Fixture
Kitchen and Tools
7,810 7,810 7,810
Equipment
Net Cash Flow for Investing
19,980 19,980 19,980
Activities
Financing Activities
Cash Receipts From
300,000
Partner’s Contribution
Net Cash Flow for Financing
300,000
Activities
Net Increase In Cash 269,465.00 239,925.00 210,335.00
CASH at End of the Year 269,465.00 239,925.00 210,335.00

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PROJECTED STATEMENT OF CASH FLOW

FOR THE YEAR ENDED DEC.2024 - DEC.2028

2027 2028

Cash Inflows
Cash Beg. 210,335.00 180,595.00
Operation Activities
Cash Receipts for Customer
Cash Paid For
Advertising
Utilities 1,250 1,300
Miscellaneous Expense 1,100 1,200
Communication 400 400
Transportation 1,000 1,000
Permit and Licenses 6,010 6,010
Income Tax 0 0
Net Cash Flow for Operation 9,760.00 9,910.00
Investment Activities
Factory Supplies 720 720
Office Supplies 640 640
Office Furniture and Fixture 6,740 6,740
Factory Furniture and Fixture 4,070 4,070
Kitchen and Tools Equipment 7,810 7,810
Net Cash Flow for Investing Activities 19,980 19,980
Financing Activities
Cash Receipts From Partner’s
Contribution
Net Cash Flow for Financing Activities
Net Increase In Cash 180,595.00 150,705.00
CASH at End of the Year 180,595.00 150,705.00

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CHAPTER VI
SOCIO-ECONOMIC

The study shows the project’s impact on personnel, the

community, the environment, the government, and other

beneficiaries.

OBJECTIVE OF THE STUDY

The study aims to fulfill the following objectives:

1. To be able to prove that the proposed business will provide

benefits to the people as well as to the government.

2. To be able to state what the impact of the proposed product

business in the environment.

The agriculture sector in the Philippines is renowned for its

rich abundance of crops, including a diverse array of vegetables,

fruits, and organic produce. However, this agricultural prosperity

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also brings along significant challenges, particularly in managing

agricultural waste.

Roxas, Oriental Mindoro serves as a bustling center of trade,

commerce, and industry in Southern Mindoro. It is considered the

most progressive town in the southern part of Oriental Mindoro,

boasting a significant area of agricultural land. The region’s

fertile soil supports a diverse range of crops, including palay

(rice), rambutan, lanzones, calamansi, and bananas.

One of the most abundant agricultural products in Roxas,

Oriental Mindoro is bananas. However, despite the great success in

the banana industry, farmers face challenges regarding

agricultural waste. This waste includes bananas that are not

accepted or purchased in the market due to overripeness, poor

physical condition, or unripeness. The accumulation of this

agricultural waste adversely affects the income of farmers as they

are unable to sell these products as intended.

Banana flour is an innovative solution to address agricultural

waste, especially in regions like Roxas, Oriental Mindoro, where

it is not yet known in the market. It is made from ripe,

unmarketable bananas that would otherwise go to waste,

contributing to the reduction of food loss and agricultural

byproducts. Similar to other types of flour, banana flour is

versatile and can be used in various recipes, including baking,

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cooking, and as gluten-free alternative. As people become more

health-conscious and seek alternative ingredients, the demand for

banana flour is increasing due to its high nutritional value,

natural sweetness, and potential health benefits. By introducing

banana flour to Roxas, Oriental Mindoro, it can not only contribute

to solving agricultural waste but also cater to the growing demand

for healthy and sustainable food options.

The proponents of banana flour have an ambitious future plan

that involves collaboration with local farmers and empowering

individuals who aspire to start their own business. They aim to

establish a banana flour production facility in Roxas, Oriental

Mindoro, which would not only create job opportunities for the

community but also provide a reliable market for farmers' surplus

bananas. The proponents plan to offer training and support to

farmers, equipping them with the knowledge and skills needed for

sustainable banana cultivation and post-harvest processing.

Additionally, they intend to organize entrepreneurship programs to

educate aspiring business owners on the potential of banana flour

and assist them in setting up their own ventures, ensuring a

thriving ecosystem for the product and fostering economic growth

in the region.

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