Business Plan Hago Na.docx

Chapter I Executive Summary

Chapter II General Company Description The Kapalong Garden Memorial Park (KGMP) is located at Purok 10-B, Maniki, Kapalong Davao del Norte in front of the Kapalong Public cemetery. The Cemetery’s care and maintenance, which was at first the responsibility of individual plot owners, have undergone periods of neglect. Care and maintenance is presently provided by the KGMP. The KGMP has a capacity of up to 6 hectares and will be expanding so soon, including both burial plots, and grave yards The KGMP has its own diversification of products and services like giving discounts to the loyal clients and offering inexpensive services which surely recognized and soon be patronized by the target market. Vision The Vision of Kapalong Garden Memorial Park is to provide an affordable, well-maintained final place of rest, regardless of burial choice, where family, relatives, other friends and the community can be at peace with their loved ones and their thoughts. To be recognized as one of the “tourist Spot” memorial park in Davao del Norte that showcases unique services offered and be appreciated by eternal remembrance Mission It is the mission of Kapalong Garden Memorial Park to make believe that the family comes first when it comes to give full service. We greet and serve all families with the utmost care and respect realizing

the importance of each and every visit to the Park by maintaining the cleanliness and safetiness of the memorial park. Goal To educate people about burial options. Final burial choices are as wide and varied as the population we serve. Affordability and accessibility are the cornerstones of our business. At Kapalong Garden Memorial Park, we strive to preserve a peace park-like setting for reflection, to give more impression and attraction to the Municipality of Kapalong and to continue the maintenance to be worth remembering. Objectives 

To gain more profit at least 20% from the capital within 5 years.



To stabilize 100% positive remarks from the clients.



To help increase the tax revenue in Kapalong with at least 5% from the business.

Business Philosophy Since the Kapalong Public Cemetery is almost out of a plot and graveyard, the proponents created this kind of business industry by recognizing the Kapalong Public cemetery will possibly be unobtainable of serving the people, because of the place is almost filled with dead individual. The proponents believed that this kind of business industry has no chance of bankruptcy, that is why we come up of planning to have a Memorial Park in the Kapalong area.

The proponents studied that the number of dead people in Kapalong area is averaging 400 individuals per year, which will cater our products and services for this kind of business. The location wise, has already studied that it is for sale and it will be fitted as our strategic location. Legal Form of Ownership Partnership would be the Legal Form of ownership, for some of the partners contributed property as a capital and the others are industrial partners who contributes pure personal service.

Chapter III Product and or Services Products and Services Kapalong Garden Memorial Park will generate income by offering the following products and services for the prospected clients. Cemetery maintenance and upkeep / Providing a standard burial committal services.



Graveyard and Plots 

An area of a land that has been measured and considered as a unit which the dead people are to be buried.



Compartment niches (Honey comb) 



A niche that is three-layered compartment style.

Customized Burial place 

The plots and graveyards acquired by the customers will be customized by the management according to the customer’s choice.

Competitive Advantage

Accessibility Accessible from the Kapalong National Road, The Kapalong Garden Memorial Park is also a stone’s throw away from the Kapalong Public Cemetery. KGMP offers you an enviable location and unparalleled accessibility, making it the best choice as an eternal memorial home for your loved ones.

Ownership The lot owner is entitled to permanent ownership upon the issuance of a Certificate of Ownership(CO). The CO will be given once the total contract price has been paid. Your memorial lot is also fully transferable provided a minimum transfer fee is paid. Thus, as the KGMP’s rules and regulations stipulate that the contract will end until 20 years upon the issuance of the Certificate of Ownership. High-quality and Modern Recreation Kapalong Garden Memorial Park spends careful selection of suppliers and contractors in the construction and launch of the Park, as well as quality control of the project, in order to guarantee the comfort and safety of the constructed object and meeting the standards of KGMP. Security The KGMP is guarded 24 hours round the clock with uniformed security guards and secured with concrete fences along its boundaries. It is well lighted during nighttime with curfew hour established to deter undesirable elements and also to keep safe of the client’s properties. Pricing Structure The pricing system is going to be based on what is obtainable in the industry, the proponents do not intend to charge more (except for premium and customized services) and the business don’t intend to charge less than our competitors are offering in Kapalong area.

Be that as it may, the proponents have put plans in place to discount the products and services once in a while and also to reward the loyal customers (clients such as insurance companies and owners of mortuaries). (See Appendix 1).

Chapter IV Marketing Plan Market Research The concept of Kapalong Garden Memorial Park is different from the other cemetery existed, although we almost have the same operation. The advantage of the business is we have varied services and other products. The proponents have better location and arrangement of the graveyard plots. As the proponents studied, that the Kapalong Public Cemetery has no capable of catering the people around Kapalong area, because of no vacancy in the said cemetery, that is why the proponents decided to form a partnership and build the KGMP. The proponents also found out that the number of dead individuals is increasingly numbered with almost 400 a year according to the Police Station particularly in LCR. The proponents will target clients by forming good relationships with Hospitals, and mortuary owners. Since they preserve bodies until it is due to burial. It is the proponent’s job to carry out the burying, the proponents will strike a deal with them so that they will get a commissions for every burial they refer to the business. The price will be based on our target market which depends on their social status. Economics The KGMP will help increase the current economic condition of Kapalong Municipality, by means of giving the municipality a high percentage of tax revenue and it will be form part as tourism in the town.

Memorial Park business in Kapalong will be highly successful industry as the demand of the cemetery in town. The Kapalong Public Cemetery proves that this kind of business find spot in the municipality as an evidence of improvement that Memorial Park has the capacity to increase tourism in the municipal of Kapalong. Historically speaking, there is no Memorial or Cemetery service has bankrupted its operation due its non-profitability and inefficient operation. It is safe to say that this kind of business industry will succeed into its chosen business. Product and Services KGMP offers varieties of quality products and services with affordable price for the people around Kapalong and nearby municipalities and cities of Davao del Norte. The proponents offer products and services as shown in chapter 3 accordingly. KGMP also served other requested products and services like funeral service and customized graveyard with all the clients wanted. Customers It will be safe to say that the target market for cemetery services cuts across people of all class, race, religion, and culture as long as they value their deceased loved ones and would want to give them befitting burial. In view of that, proponents have created strategies that will enable us reach out to various individual clients who we know can’t afford to do without our services. We have conducted our market research and

survey and we will ensure that our Memorial Park is well accepted in the market place. These are the groups of people we intend marketing our memorial park services to;          

Senior Citizens Insurance Companies Owners of mortuaries or Funeral Home Hospitals Government Retirees Households Government Officials SSS Pensioners Military and police Men and Women Dayong (People’s Organization)

NICHE The proponent’s business is best for the target market, because as the current status of the Kapalong Public Cemetery has no capable of obtaining the needs of the customers as to Local Civil Registrar (LCR) confirmation. The Kapalong Public Market status is out of plots. The business knows that people need a formal and safe burial of their love ones and relatives and they are committed to do so. Therefore, they will have a good business sense. The products and services offered by KGMP will allow clients to make good choice.

SWOT analysis Factors

Strength

Weaknesses

Opportunities

Threats

Expensive to

Availability of

Competitor

operate

grave sites

price war

Strategic

Limited

Available Lot

Neighborhood

location

parking lot

for sale beside

concern

Product/Services Down Payment

Place

for historic

the location

site

People

Price

Well-

No applicant

Availability of

Employee

trained

Low cost in

piracy

staff

salary

Installment

Delinquent

Availability of

payments

Accounts

Collection Process

Promotion

Access to

Poor

Availability of

Market

Insurance

promotional

Social and

Regulation

Agencies

instruments

Print-Ads

Disapproved

Advertisements

agency referral

Marketing Strategy

It is important to clearly state that in this dispensation, customers use the Internet to find memorial park services providers, to read reviews, to view facility available and the location of the cemetery services provider; loads of processes have gone digital. The proponents are quite aware that one of the ways to get people to patronize the KGMP services is to build good business relationship with owners of mortuaries, insurance companies and hospitals. Having a good working relationship with people of the mortuaries will enable them refers people to the business; since their job is to preserve corpses is to conduct a befitting burial. The proponents will go all out to strike a deal with the agents that will ensure that they get a commission for any referral we get from them. In summary, Kapalong Garden Memorial Park will adopt the following sales and marketing approach to win customers/clients over; 

Building strong good relationship within our industry and with the owners of mortuaries;



Continuously improving the efficiency of our memorial park services and operating processes;



Delivering consistent customer experiences to all our clients; making our first impression count positively;



Hire the services of experts to make our brands the first choice for families and government officials;



Make use of attractive hand bills to create awareness and also to give direction to the cemetery services facility;



Position the signage / flexi banners at strategic places in and around the chosen location;



Create a loyalty plan that will enable us reward the clients such as hospitals, insurance companies and owners of mortuaries;



Engage on promotional strategy by means of advertising during community sponsorship program or events within the town to create awareness for the memorial park services business.

Promotion The proponent’s way of improving communication and promotion of KGMP is to create an independent website with details about products and services. Staff agrees that the cemeteries system requires enhanced communication and promotion. The Kapalong Garden Memorial Park should develop social media accounts with all of the key players and use these accounts to target demographic groups, communicate events and video promotions. The promotional campaign should create good relationship with insurance companies, Funeral Home owners and other Target market. This would facilitate targeting demographic groups, highlighting events and promotions. In addition, a full colored brochure or presentation using a more professional layout of tarpaulins should be developed. Material should be distributed to prospected clients, walk-ins and government officials. Staff will be

working on new promotional material to be ready for 2018. Because of the number of cemeteries, it may be need to create a new material tools for promotion. Direct mail of print material will continue to form part of the communication and promotion campaign, as will attendance at any events of the town.

Promotional Budget Kapalong Garden Memorial Park is establishing with the aim of maximizing profits in the cemetery services industry by means of funding promotional tools and materials with low cost yet effective promotion. And the proponents are going to go all the way to ensure that we do all it takes to attract prospected clients. (Appendix 2) represents the promotional budget: Distribution Channel The Kapalong Garden Memorial Park will make a relationship with the target market. The proposed business will have display streamers along the highway and in the crowded place as well, so people and potential clients will take a better look of our products and services the business intended to offer.

Production Process

Landscaping/ Land Acquisition

End User

Construction

Purchase of Raw Materials

Business Agreements

Promotional Distribution

Location The KGMP location will be place in Purok 10-B, Maniki, Kapalong, Davao del Norte fronting the Kapalong Public Cemetery. The proponents decided to place our business in front of the public Cemetery so that the clients will easily recognized the KGMP as the new memorial park and it will be the best option for the prospected customers and clients.

Sales Forecast When it comes to providing a cemetery services, if the facility is well positioned and you have the right business, you will always attract client sales and that will sure translate to increase in revenue generation for the business. Proponents are well positioned to take on the available market in Maniki, Kapalong area and we are quite optimistic that we will meet our set target of generating enough income from the first year of operations and grow the business and our clientele base. The proponents have been able to examine the cemetery services industry and analyzed the chances in the industry and the proponents found out that the market share is 15% and 5% from the competitors outside the town specifically in Tagum area, which means the remaining 80% will go to the KGMP. That is why, the proponents have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Kapalong area. Below are the sales projections for Kapalong Garden Memorial Park is based on the location of our business and other factors as it relates to cemetery services providers start – ups in Davao del Norte; This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same facility and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Chapter V Operational Plan Operational Plan

The following section will identify the proposed operational plan of Kapalong Garden Memorial Park. Included are the general operating hours, and working capital requirements of the business.

Operating Capital Requirements

The business has sufficient working capital to meet all operational responsibilities

of

the

business

for

the

five

years.

It is estimated that the business will need approximately 11,306,000 pesos in working capital to sustain and ensure the business meets all opening and on-going financial obligations.

General Operating Hours

Kapalong Garden Memorial Park intends to operate Mondays thru Saturdays from 9 am to 5 pm. The operation will be year round.

Orientation and Seminar Operation

A long term strategy to maintain a positive cash flow during these periods will be to diversify and develop environmental training programs for certain communities. These Orientation and Seminar programs will be given during time when the customers acquire the products. The customer will have an orientation stating the rules and regulation of the business in acquisition of its product.

Production The selling of the product will be based on the result of the promotion conducted by the management. The products and services of Kapalong Garden Memorial Park will be shown on the brochure and leaflets distributed by the agents. Location The proponent’s way of promoting the chosen location would be very accessible to our prospected clients. One reason is that, the KGMP will be found in front of the Kapalong Public Market which may help us to be recognized by our clients. The location also found in the brochure which was distributed by the business sales agents and staff. (Appendix) Memorial Park Layout The memorial park will have an area of 6 hectares divided a different kind of graveyard and a honey comb which all clients can be catered. (Appendix) Legal Environment Organizing and registration of the business, the proponents must follow the process of legalizing the business. 1. Verification of partnership name wit h SEC (Kapalong Garden Memorial Park) 2. Drafting and execution of the articles of the partnership. 3. Filing of the articles of partnership with the following requirements: a. Treasury’s affidavit

b. Statement of asset and liabilities of the proposed partnership c. Authority to verify bank deposits d. Certificate of deposit of cash paid for subscription. 4. Payment and filing the publication fee 5. Issuance by SEC of certificate of partnership 6. Secure municipality licenses with the Local Government. 7. Register VAT account number from the BIR Personnel The KGMP will have 11 employees to operate the business. The operation will run in 2 shifting period. First, is in the morning from 7:00am to 4:00 pm of which the manager, tenant and the security, while in the evening they will be shifted only by the other security guard. And the 4 staff will be on call duty which means the staff will be working upon the signal of the owners and or the management. And the sales agents will be working with commission with their referral from the target market. Inventory The business will have_____ units of plots and graveyards and 1,500 unit of honeycomb within the 6 hectares of area. Suppliers The supply of inventories in the operation will be source out locally in Kapalong and nearby municipalities and cities of Davao del Norte and purchased on cash to cash basis.

Chapter VI Management and Organization Organizational Structure Kapalong Garden Memorial Park is a partnership entity. The partners will manage the business and will handle the operations, planning and accounting functions. Kapalong Garden Memorial Park is composed of 11 employees including 1 sales manager, 3 sales agents, 1 tenant, 4 staff and 2 security guards.

PARTNER/ OWNERS

ACCOUNTANT

SALES

SECURITY GUARD

STAFF 1

STAFF 2

TENANT

MANAGER

STAFF 3

STAFF 4

SALES AGENT

Job Description and Qualification The operation will run by the staff assign by the owner of Kapalong Garden Memorial Park.

POSITION

Sales Manager

Sales Agent

Tenant

Security Guard

Staff

QUALIFICATION

DESCRIPTION

Professional and Advisory Support Professional’s input on how to maintain the business and generate profits is critical for the success of the business. The Kapalong Garden Memorial Park will hire an external Lawyer, Bookkeeper and engineer who will help the legal, final structure of the KGMP lay out and the development of an overall financial strategy for the business. The Financial advisers job is to collect detailed information about the financial situation and at the same time, provide advice on succession planning, risk management, insurances and taxes.

Chapter VII Financial Plan The Kapalong Garden Memorial Park will achieve profitability in just over one year of operation and reach annual net profit of approximately in the fourth year of operation, with subsequent increase annually due to progressiveness. Start-up Cost and Capitalization When it comes to starting a cemetery services business, loads of factors influences the amount that will be required to successful launch the business. Factors like the location you intend starting the business, the size of the cemetery services business you want to start Important Assumption The Financial Plan assimilates the foregoing changes anticipated within the community while also identifying the ceiling on additional market capture due to the close proximity of Arbor. It has also absurd the following base financial planning and management assumptions: 

Projected Revenue escalations: 20% per annum.



Projected escalation of permits and licenses with 25%



Decrease of depreciation of Building with 15%



Increase in Commission expense with 14% annually



Salaries and Wages with fixed amount.



Construction expense with fixed amount for five years.



10% increase in Utility expense per annum.



Increase of 10% in Repair and Maintenance per year.



Fixed amount of office supply per year.

Projected Five-Year Balance Sheet

Kapalong Garden Memorial Park Projected Balance Sheet Statement For the years 1-5 Year 1 Assets Current Assets Cash in Bank Raw Materials Inventory Work in Process Total Current Assets

Year 2

Year 3

Year 5

2,300,000 231,000 840,000

2,410,000 270,000 840,000 125,000

2,680,000 310,000 840,000 220,000

2,780,000 345,000 840,000 315,000

2,900,000 387,000 840,000 410,000

3,371,000

3,645,000

4,050,000

4,270,000

4,537,000

10,000,000 96,000 10,096,000

10,000,000 72,000 10,072,000

Non-Current Assets Land 10,000,000 10,000,000 10,000,000 Equipment 240,000 182,000 121,000 Sub Total 10,240,000 10,182,000 10,121,000 Accumulated Depreciation (2,305,000) (2,305,000) (2,305,000) Total Non-Current Assets 7,935,000 7,877,000 7,816,000 Total Assets 11,306,000 11,522,000 11,866,000 Liabilities Current Liability Total Liability Partner's Equity D. Cagas Capital R. Manera Capital M. Rollon Capital K. Ugapay Capital R. Arig Capital Total Equity

Year 4

(2,305,000) (2,305,000) 7,791,000 12,061,000

7,767,000 12,304,000

2,261,200

2,310,400

2,373,200

2,412,200

2,460,800

2,261,200 2,261,200

2,310,400 2,310,400

2,373,200 2,373,200

2,412,200 2,412,200

2,460,800 2,460,800

2,261,200 2,261,200 11,306,000

2,310,400 2,310,400 11,522,000

2,373,200 2,412,200 2,373,200 2,412,200 11,866,000 12,061,000

2,460,800 2,460,800 12,304,000

The projected Balance Sheet of Kapalong Garden Memorial Park tells about the assets, liabilities, and equity of the business. It also shows the Beginning Capital of 11,306,000 and the increase of cash in the next five years of operation.

Projected Five-Year Income Statement KAPALONG GARDEN MEMORIAL PARK Projected Income Statement For the Years 1-5

Sales Cost of Goods Sale: Inventory Beg. Add: Cost of Sales Cost of Goods Available for Sale Less: Inventory Ending Gross Profit Less: General and Administrative Expense Salaries and Wages Funeral Supplies Office Supplies Utility Supplies Commission Expense Business, Tax and Licenses Repair and Maintenance Legal Fees Promotional Expense Depreciation Total Operating Expense Income Before Tax Less: Provision for Income Tax 32% Plus 125,000 Income After Tax

Year 1 14,346,320

300,000

Year 2 Year 3 Year 4 Ye 17,215,584 20,658,700.80 24,790,440.96 29,748 840,000 700,000

840,000 922,000

840,000 1,093,000

8 1,1

2,300,000 840,000 13,276,320

1,540,000 1,762,000 1,933,000 2,0 840,000 840,000 840,000 8 14,835,584 18,056,700.80 22,017,440.96 26,896

450,000 20,000 5,000 20,000 50,000 40,000 150,000 40,000 43,000 2,305,000 3,123,000 10,133,320

450,000 20,000 5,000 20,000 57,500 50,000 157,500 40,000 43,000 2,305,000 3,148,000 11,687,584

450,000 450,000 4 20,000 20,000 5,000 5,000 20,000 20,000 66,125 76,043.75 87 62,500 78,125 97 165,375 173,643.75 182 40,000 40,000 43,000 43,000 2,305,000 2,305,000 2,3 3,177,000 3,210,812.5 3,250 14,879,700.8 18,806,628.46 23,646

3,740,026.88 3,367,662.4 125,000 6,765,657.6 7,822,557.12

4,761,504.25 6,018,121.10 7,526 125,000 125,000 1 9,993,196.54 12,663,507.35 15,994

3,242,662.4

The projected Income Statement of Kapalong Garden Memorial Park shows the increase in sales. The business gross profit is increasing with

92.54%. The business did not accumulate loss that is why the business gain a high percentage of profit.

Projected Five-Year Statement of Changes on Partners Equity Kapalong Garden Memorial Park Projected Statement of Changes in Equity For the Years 1-5 Year 1

Year 2

Partners Equity, beginning

11,306,000

11,522,000

Add: Profit

6,765,657.6

7,822,557.12

Total

Year 3 11,866,000

Year 4 12,061,000

Yea

12,3

9,993,196.54 12,663,507.35 15,994

18,071,657.6 19,344,557.12 21,859,196.54 24,724,507.35 28,298

Less: Drawings Partners Equity, Ending

(6,515,158)

(7,360,930)

(8,581,631)

(9,116,290)

(10,1

11,556,499.6 11,983,627.12 13,277,565.54 15,608,217.35 18,107

The statement in changes in equity of Kapalong Garden Memorial Park shows that from year 1 the beginning balance is P 11,306,000. It increases up to 18,107,706.73 on the year 5. The partner’s capital will increase because of the profitable operation of the business.

Projected Five-Year Statement of Cash Flow Kapalong Garden Memorial Park Projected Cash Flow Statement For the Year 1-5 Year 1 Year 2 Year 3

Year 4

Year 5

Cash Flow from Operation Activities Net Income Increase: Depreciation Less: Inventory Net Cash Flow from Operating Activities

6,765,657.6 7,822,557.12 2,305,000 2,305,000 (840,000) (840,000)

Cash Flow from Investing Activities Land Building and Equipment Net Cash Flow from Investing Activities

10,000,000 6,370,000

-

-

-

-

16,370,000

-

-

-

-

Cash Flow from Financing Activities Investing of Partners Drawing Net Cash Flow from Financing Activities

11,306,000 6,515,158

7,360,930

8,581,631

9,116,290

10,190,639

4,790,842

7,360,930

8,581,631

9,116,290

10,190,639

2,300,000

110,000

270,000

100,000

120,000

2,300,000

2,300,000 2,410,000

2,410,000 2,680,000

2,680,000 2,780,000

2,780,000 2,900,000

Net Increase (Decrease) in Cash Add: Cash Balance, Beginning Cash Balance, End

9,993,196.54 12,663,507.35 15,994,345.73 2,305,000 2,305,000 2,305,000 (840,000) (840,000) (840,000)

8,230,657.6 9,287,557.12 11,458,196.54 14,128,507.35 17,459,345.73