POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Chapter 1

EXECUTIVE SUMMARY

Marketing Aspect

This chapter shows the potential market of Safe ‘n Sound which includes the

residents of the Municipality of Mariveles, Bataan specifically the Lower Barangays

namely, Balon Anito, Camaya, Ipag, Poblacion, San Carlos, San Isidro, Baseco

Country, Biaan, Malaya, Maligaya, and Sisiman. The market will be composed of

individuals belonging to the millennial and Gen Z groups. However, no matter what

demographics are, students, worker or non-worker, and no matter what age group

they belong, as long as they want to sing, celebrate, bond, and have fun, Safe ‘n

Sound is ready to cater them. The analysis showed that out of 400 respondents,

90.8% are willing to avail the services offered by the business. Moreover, this part

also explains the demand-supply analysis of the business, as well as its

competitors, whether direct or indirect, particularly Milagros KTV Lodging Rooms,

Margie’s Place, Bang's Videoke RestoBar, Hermanos De Otra Madre Restobar,

Melor Videoke Bar, Berna's Bar, Ka-Polding Restobar.

Technical and Operational Aspect

This chapter discussed the basic production program of the business. The

area of Safe ‘n Sound is divided into nine (9) rooms. We provided 2 rooms for Duo,

5 rooms for Mini, 1 room for Standard, and 1 room for Grande. It will be open from

Tuesday to Sunday. It will operate at 8:00 a.m. and close at 12:00 mn during

weekends, while being open at 2:00 p.m. and closing at 12:00 mn every weekday

(excluding Mondays). In addition, this chapter includes information about legal

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 2

requirements, a floor plan, the cost of needed materials, and the total production

cost for a period of five years.

Management and Legal Aspect

This part explains the organizational structure as well as the form of business

organization. Safe ‘n Sound will be in a general partnership form, with partners’ total

capital contribution of P1,950,000, which will be shared equally by capitalist

partners amounting to P650,000. Also, all capitalist partners will also act as

industrial partners, making them an Industrial-Capitalist.

The business is called “Safe ‘n Sound” which is an interesting and unique

name with a musical connotation. As we all know, most of us rely on these

melodies depending on the emotion we are feeling. "Let the music speak" serves as

a safe haven for many, as they feel at ease just listening to the sound of the song.

The business will hire seven (7) employees, including receptionists, a technician,

security guards, and janitor/janitress. This aspect will also include the compensation

structure and a list of necessary legal requirements that the business must meet

before starting operations.

Socio-Economic Aspect

This aspect will discuss and determine the study’s social implications to the

government, society and economy. This aspect also emphasizes the business

accountability and commitment to taking its socio-economic factors vital to the

business. Factors that affect how a specific group, societal behavior, especially how

members of socio-economic classes behave as customers are also discussed in

the socio-economic aspect.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 3

Financial Aspect

This aspect presents the full set of financial projections for the years 2024-

2028. A five-year projection of Income Statement, Statement of Changes in Equity,

Statement of Financial Position, Statement of Cash Flows, and Notes to Financial

Statements was also presented. Financial schedules of related accounts were

outlined in this section. Financial ratios are also computed to measure the liquidity,

solvency, and profitability of the business. In the first year, the business will have a

net working capital amounting to ₱487,895, the current ratio is ₱4, and for the quick

asset ratio is ₱3. For Solvency Ratios, the debt ratio is 0.07, equity ratio is 0.93,

and the debt-to-equity ratio is 0.08. For Profitability Ratios, the return on investment

is 0.07, total asset turnover is 1.76, and a profit margin of 0.04. The business is

expected to have a payback period of 2.83 years. Information regarding the

succeeding year ratios is presented further in this aspect.

Risk Assessment and Planning

This part presents a comprehensive risk assessment for a KTV business,

aimed at identifying potential threats and weaknesses that could have an impact on

the venture’s stability and success. Risks regarding strategic, marketing,

operational, compliance, financial, and economic were presented, along with the

mitigation strategies, to enhance the overall resilience and profitability of the

business.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Chapter 2

MARKETING ASPECTS

Marketing Aspects cover the industry profile, target market, marketing

research, and marketing plan. The analysis of the supply-demand situation

regarding the response of the market, the examination of the target market, and the

evaluation of the marketing program of Safe ‘n Sound.

The market study also covers the supply and demand conditions for the

environment or industry of which the business project or product is part. The

demand and supply situation over the past five years will be the basis or criterion as

to the likely demand and supply levels on which the study has to work.

Service Description

One of the most popular talents among Filipinos is singing. Karaoke is an

essential part of any occasion, party, or celebration. For all of us, it developed into a

hobby. Here is where we can express and feel our emotions. This applies whether

we are by ourselves, with friends, family, or other people that make us happy. It

helps us make a connection and form a bond with them. It creates good memories

and wonderful experiences with the people who are special to us.

Safe ‘n Sound is a place where there are karaoke rooms to be rented. Its

purpose is to provide entertainment to the customers. It has a complete set of

songs by different artists, allowing them to sing whatever song they like. They can

spend their free time there, renting a room depending on their capacity. For 1-2
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 5

persons, there is a karaoke room called Duo. Another set of rooms is a Mini that

can accommodate 3–5 people. If the rooms mentioned are not enough, there is

another room called Standard, where 5–10 persons are sufficient. In case of any

special occasion, a Grande room can also be availed of through a reservation or

walk-in. However, singing can get tiring too. With that, we also offer food and

drinks. Customers should not feel hungry because it could lower their level of

energy. We want them to be completely satisfied, therefore, we’ll also provide

refreshments and food.

Service Name

Figure 2.1 Business Logo

The business is called “Safe ‘n Sound,” which is an interesting and unique

name with a musical connotation. As we all know, most of us rely on these

melodies depending on the emotion we are feeling. “Let the music speak” serves as

a safe haven for many, as they feel at ease just listening to the sound of the song.

Thus, Safe ‘n Sound wants to make people experience comfort, entertainment, and

relaxation by offering them high-quality sound systems and good-quality service.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 6

Users of the Service

One of the talents of Filipinos is singing. Filipinos love singing, especially in

videoke or karaoke. It is our tradition to sing and rent one on every occasion, such

as birthdays, Christmas, holidays, and even on a normal day. It is really expensive

to hire or buy a complete set of karaoke machines and sing all they want without

disturbing the neighbors and other concerned individuals.

The target market of Safe ‘n Sound is the residents of Lower Mariveles. The

market will be composed of individuals belonging to the millennial and Gen Z

groups. After a long, busy day, everyone deserves a break and have fun.

Teenagers, especially, love to go out with their friends during the weekends. Safe ‘n

Sound is also a place where families can spend time together. Our business is the

perfect place to relax. However, demographics and age groups do not matter;

anyone who wants to sing in karaoke is welcome in our establishment.

Area of Dispersion

Safe ‘n Sound will be located in Jose Sarreal, Brgy. Poblacion, Mariveles,

Bataan, near the Public Market. Many people walk and visit this area, therefore it is

very visible to the customer, which is a good opportunity to capture their attention. It

is close enough to all target customers since it is located at the center of Lower

Mariveles, making it very accessible to all customers, especially students and

workers who commonly drop by the market before going home.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 7

Market Analysis

Indicator
Competitor Age of the Types of Factors to consider for
Business products/services customers to avail
sold
4 -KTV room and food -Price
Milagros KTV and drinks -Availability of KTV
Lodging Rooms rooms
(Direct) -Open 24 hours
Bang’s Videoke 5 -Resto bar -KTV
RestoBar -Videoke via coins -Offer alcoholic drinks
(Indirect) -Alcoholic drinks to adult and foods
-Foods
Hermanos De 3 -Resto bar -Facility
Otra Madre -Videoke (per song -Offer alcoholic drinks
Restobar payment) to adult
(Indirect) -Alcoholic drinks -Quality of foods
-Foods
Melor Videoke 6 -Videoke via coins -Offer alcoholic drinks
Bar (Indirect) -Alcoholic drinks and to adult and foods
foods
Berna’s Bar 6 -Videoke via coins -Offer alcoholic drinks
(Indirect) -Alcoholic drinks and to adult and foods
foods
Ka-Polding 5 -Resto bar -Offer alcoholic drinks
Restobar -Videoke via coins to adult
(Indirect) -Alcoholic drinks and -They have billiards
foods
Margie’s Place 3 -KTV Rooms -Quality of the Facility
(Direct) -Alcoholic Drinks and -Offer alcoholic drinks
Foods and foods
-Free foods and drinks
-Open 24 hours
Table 2.1 Competitors’ Profile

Analyzing the internal environment of the business shall also be done to

assess any competitive advantages that the business may have over its

competitors. Using the SWOT (Strengths, Weaknesses, Opportunities, and

Threats) Analysis, the business will determine the strengths and weaknesses of the

business in the internal forces or inside the business environment, which include
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 8

the management team, suppliers, intellectual property, etc. For external forces

within the organization or outside the business environment, it focuses on

opportunities and threats such as competitors, customer shopping trends, and the

natural environment. The strengths, weaknesses, opportunities, and threats of Safe

‘n Sound are shown below:

Strengths Weaknesses Opportunities Threats

There are many It is quite Growing number of Advance
choices for expensive. populations, mostly technologies
Soundproof and students and
exclusive KTV workers.
rooms.
Good High Operating There are many The market for
management Expenses schools and work Karaoke is set
opportunities in or for home.
near the area.
Minor/Student Not enough There are few similar Videoke Rental
friendly space or direct competitors Business
in the area.
Ability to generate Natural hazards
high revenue at
night and on
weekends
Table 2.2 SWOT Analysis

MARKET SEGMENTATION

Size of the Industry

The target population of Safe ‘n Sound is the residents of the Municipality of

Mariveles, Bataan, specifically the Lower Barangays: namely, Balon Anito, Baseco,

Biaan, Camaya, Ipag, Malaya, Maligaya, Poblacion, San Carlos, San Isidro, and

Sisiman whose ages range from 15 to 60 years old. As of 2022, based on the

gathered data from the Municipal Planning and Development Office in Mariveles,

Bataan, the population of the Safe ‘n Sound target market is shown below:

Population as of 2022
Balon Anito 9,707
Baseco (Nassco) 2,254
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 9

Biaan 2,474
Camaya 9,702
Ipag 4,826
Malaya 1,534
Maligaya 1,675
Poblacion 2,860
San Carlos 645
San Isidro 3,146
Sisiman 4,542
TOTAL 43,365
Table 2.3 Population of Lower Mariveles as of 2022
*Source: MPDO Mariveles, Bataan

Sample Size

For gathering the data through a survey, the sample size from the target

market of the business Safe ‘n Sound is determined using Slovin’s Formula and the

available number of populations in Lower Mariveles (15–60 years old), which has a

total of 43,365. The data used in coming up with the sample is based on the

Community-Based Monitoring System of Mariveles, Bataan, as of 2022. Slovin’s

formula is the most appropriate sampling technique since the characteristics of the

target population are relatively unknown. The Slovin’s Formula is as follows:

n= N Where:
1+Ne²
N = Target Population
n= 43,365
1+ [43,365 (5%)²] n = Sample Size

n= 396 or 400 respondents e = Margin of error equal to 5%

Using the projected annual population growth rate provided by the Municipal

Planning and Development Office in Mariveles, Bataan, the computation for the

expected 2023–2028 population projection for the barangays of Balon Anito,

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 10

Baseco, Biaan, Camaya, Ipag, Malaya, Maligaya, Poblacion, San Carlos, San

Isidro, and Sisiman is shown below:

Mariveles, Bataan
Year
2022
Barangay (Given 2023 2024 2025 2026 2027 2028
data)
Balon Anito 9,707 9,733 9,759 9,786 9,857 9,929 10,002
Baseco (Nassco) 2,254 2,316 2,377 2,438 2,494 2,550 2,607
Biaan 2,474 2,521 2,568 2,616 2,663 2,710 2,758
Camaya 9,702 9,893 10,084 10,275 10,464 10,653 10,844
Ipag 4,826 4,918 5,010 5,102 5,194 5,286 5,380
Malaya 1,534 1,563 1,592 1,621 1,650 1,679 1,709
Maligaya 1,675 1,708 1,741 1,773 1,806 1,838 1,871
Poblacion 2,860 2,875 2,890 2,905 2,932 2,958 2,985
San Carlos 645 659 674 688 702 716 730
San Isidro 3,146 3,149 3,151 3,154 3,173 3,192 3,211
Sisiman 4,542 4,635 4,728 4,821 4,912 5,003 5,095
Total 43,365 43,970 44,575 45,180 45,847 46,514 47,191
Table 2.4. Projected Population of Lower Mariveles for 2023-2028 with an age of
15-60

*See Appendix 3

Annual Population Growth Rate

2023 2024 2025 2026 2027 2028
Balon Anito 0.27% 0.27% 0.27% 0.73% 0.73% 0.73%
Baseco
(Nassco) 2.73% 2.65% 2.58% 2.29% 2.24% 2.24%
Biaan 1.91% 1.87% 1.84% 1.80% 1.77% 1.77%
Camaya 1.97% 1.93% 1.89% 1.85% 1.80% 1.80%
Ipag 1.91% 1.87% 1.84% 1.80% 1.77% 1.77%
Malaya 1.89% 1.86% 1.82% 1.79% 1.76% 1.76%
Maligaya 1.96% 1.92% 1.88% 1.83% 1.80% 1.80%
Poblacion 0.53% 0.53% 0.52% 0.91% 0.90% 0.90%
San Carlos 2.23% 2.18% 2.14% 1.99% 1.95% 1.95%
San Isidro 0.08% 0.08% 0.08% 0.61% 0.60% 0.60%
Sisiman 2.05% 2.01% 1.97% 1.88% 1.85% 1.85%
Average PGR 1.59% 1.56% 1.53% 1.59% 1.56% 1.56%

Table 2.5. Projected Annual Population Growth Rate

*Source: Municipal Planning and Development Office – Mariveles, Bataan
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 11

DEMAND AND SUPPLY ANALYSIS

Survey Results

1. Profile of the Respondents in Terms of Age, Sex, Occupational Status, and

Monthly Allowance or Income

The results of the survey show that the majority of the target market (78%) is of

legal age, which is 19 years old and above, while 22% are minors (13–18 years

old). The survey also showed that 64.75% are students, 32.5% are employed or

self-employed, and 2.75% are unemployed. Out of the 312 target markets who are

students and employed, 187, or 50%, are aged between 19 and 25 are shown to be

college students or already employed. In terms of sexuality, 47.8% are

female,34.5% are male, and 17.8% of them are non-binary and preferred not to say

anything about their sexuality. Since the majority of the business customers are

students, 35.8% of them have an allowance of ₱2,000 and below, while 25.5%

have a ₱2,001 to ₱5,000 allowance monthly. The survey also indicates that a total

of 38.75% of them had a ₱5,001 to ₱50,000 allowance or income, which represents

the business customers who are employed and self-employed. The results of the

survey imply that the target customers themselves can avail the business.

2. Profile of the Respondents in Terms of Awareness About the Business

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 12

The variable aims to measure who among the target market is very familiar,

familiar, unfamiliar, or very unfamiliar with Karaoke Room. The results are shown

below:

Level of Awareness Frequency Percentage

Very Familiar 147 36.8%
Familiar 186 46.5%
Unfamiliar 46 11.5%
Table 2.6 Very Unfamiliar 21 5.3% Profile of the
Total 400 100.0%
Respondents

in Terms of Awareness about the Business

Karaoke Television (KTV) room business in Mariveles is already existing, and

many people are aware of this, because there are businesses like resto bars and

karaoke bars that offer a karaoke where they can sing for free if they are customers

or put a 5-peso coin in to sing. Despite this fact, 147, or 36.8%, of the business

customers had a strong familiarity with how a KTV works, while 46.5% of them are

only familiar, and a total of 16.8% of them are not familiar with a KTV. This only

shows that the target market of Safe ‘n Sound is already aware of the existence of

this type of business.

3. Preference of Respondents on How Many Times They Have Tried a KTV Room

The variable aims to measure how many times the respondents tried a KTV.

The results are shown below:

Times they have tried Frequency Percentage

Never 187 46.8%
1-2 times 124 31.0%
3-4 times 42 10.5%
More than 5 times 47 11.8%
Total 400 100.0%
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 13

Table 2.7 Preference of Respondents on How many times they have tried a KTV

room

Based on the survey results, the majority of the business customers (46.8%) had

not tried a KTV room. Although there is a high rate of familiarity with the KTV,

familiarity does not mean they have already tried it. Meanwhile, 53.2% of the

customers have already tried the KTV room once or more.

4. Frequency Distribution of the Respondents Who Are Willing to Avail of a KTV

Room Business in Mariveles, Bataan

The variable aims to measure the respondents’ preference for having a KTV

room in Mariveles. The results are shown below:

Respons Frequenc Percentag

e y e
YES 363 90.8%
NO 37 9.3%
Table 2.8 Total 400 100.0% Preference of
Respondents if they want to have a KTV room business in Mariveles

As a result of the survey, 90.8% out of 400 respondents agreed to have a KTV

room business here in Mariveles and were willing to avail themselves of the service.

Out of this, 90.8% are expected customers, 64.75% are students, 32.5% are

employed or self-employed, and 2.75% are unemployed. This only implies that the

majority of the expected customers have the financial capacity, based on their

income and allowances, to avail themselves of the business.

5. Preference of Respondents on How much they are willing to spend.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 14

The Response Frequency Percentage variable

₱150-300 270 74.4%
aims to measure the
₱300-500 69 19.0%
₱500-1,000 17 4.7% respondents’
more than ₱1,000 7 1.9%
preferences
Total 363 100.0%
on how much they are willing to spend on availing of a karaoke room. The results

are shown below:

Table 2.9 Preference of Respondents on How much would they can spend in

singing

Out of the 90.8% (363) expected business customers, 74.4% are expected to

spend 150–300, and 19.0% can spend 300–500 for a KTV room. The majority of

the business customers are students; therefore, they are expected to spend less

than those business customers who are employed and can afford to spend ₱500 or

more, which is only 6.6%.

6. Preference of Respondents on Kind of Karaoke Room to Avail

The variable aims to measure the respondents’ preference for what kind of

karaoke room they will avail of. The results are shown below:

KTV Room Frequency Percentage

Room for 1-2 persons 15 4.1%
Room for 3-5 persons 236 65.0%
Room for 5-10 persons 84 23.1%
Special 28 7.7%
Total 363 100.0%
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 15

Table 2.10 Preference of Respondents on Kind of KTV room to avail

Safe ‘n Sound is an entertainment business that offers an exclusive KTV room

for groups of people. From the total expected business customers, 65.0% of them

will avail of a KTV room good for 3-5 persons, which is a typical number of people

in a circle of friends; 23.1% will avail of a KTV room for 5–10 persons; 4.1% for 1-2

persons; and 7.7% are willing to avail of the special room, which can be reserved

for special occasions.

7. Preference of Respondents on How Many Minutes or Hours They Can Spend in

the KTV Room

The variable aims to measure the respondents’ preference for the length of

time they can spend in the KTV room. The results are shown below:

Response Frequency Percentage

30 minutes 10 2.8%
1 hour 136 37.5%
2 hours 142 39.1%
3 hours 45 12.4%
4 hours 9 2.5%
5 hours 21 5.8%
Total 363 100.0%
Table 2.11 Preference of Respondents on How many minutes/hours they can
spend in KTV room

Based on the result of the survey, 39.1% of the expected business customers

can spend 2 hours in a KTV room, 37.5% can spend 1 hour only, and 12.4% can

spend 3 hours. Most of the students and workers will avail themselves of this
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 16

duration in a KTV room. There are also a total of 8.3% of business customers who

can spend 4-5 hours, while 2.8% can spend only 30 minutes. This result implies

that the majority of customers are more likely to avail themselves of a KTV room for

2 hours.

8. Preference of the Respondents for the KTV Room

The variable aims to measure the respondents’ preference for having foods and

drinks served along with the Karaoke room or not. The results are shown below:

Response Frequency Percentage

Karaoke room alone 28 7.7%
With foods and drinks 335 92.3%
Total 363 100.0%

Table 2.12 Preference of the Respondents on KTV Room

Safe ‘n Sound does not only offer a KTV room, but it also caters snacks to the

customers that are sold exclusively if they avail of a room. However, they still have

the choice not to buy snacks. Based on the survey, 92.3% of them preferred to

have snacks while enjoying the songs and party vibes inside the KTV room.

9. Preference of Respondents on How much they are willing to spend.

The variable aims to measure the respondents’ preferences on how much they

are willing to spend on food and drinks. The results are shown below:

Response Frequency Percentage

₱150-300 216 64.5%
₱300-500 85 25.4%
₱500-1,000 27 8.1%
more than ₱1,000 7 2.1%
Total 335 100.0%
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 17

Table 2.13 Preference of Respondents on How much would they can spend in food
and drinks

From the result of the survey, out of 92.3% who are willing to avail food and

drinks with a KTV room, 64.5% can spend 150–300, 25.4% can spend 300–500,

and a total of 8.1% can spend more than ₱500. Singing alone would be boring, and

it is our tradition as Filipinos to sing when there is an occasion, which also means

there is food and drinks. Since a majority of the expected business customers are

students and factory workers, the majority of them can only spend less than those

employed customers who have an income of more than ₱20,000 a month.

10. Preference of Respondents on When They Would Often Visit the Karaoke

Room

The variable aims to measure the respondents’ preference for when they often

visit the Karaoke Room. The results are shown below:

Response Frequency Percentage

Daily 6 1.7%
2-3 times a week 57 15.7%
4-5 times a week 2 0.6%
Weekly 154 42.4%
Monthly 129 35.5%
Yearly 15 4.1%
Total 363 100.0%

Table 2.14 Preference of Respondents on when do they would often visit the
Karaoke room
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 18

Based on the result of the survey, 42.4% of the total expected business

customers can only visit Safe ‘n Sound weekly, 35.5% can visit monthly, 15.7% 2-3

times a week, 4.1% will visit yearly, and 0.6% will visit 4-5 times a week. Once a

week, students and workers in Lower Mariveles are expected to visit the facility,

mostly on weekends since there are no classes or work. There are also 1.7%

customers expected to visit every day.

Demand and Demand Analysis

Demand refers to the number of units of a product or the level of utility of a

service that a consumer is willing to buy or pay for on the market. The following

tables will show the Demand and Demand Analysis.

ANNUAL DEMAND (in Hours) FOR 2023

Projected Population Willing to Avail (%) Interested/Expected Customers
43,970 90.75% 39,903

Anticipated No. of Average Hours Total Projected

Rate Demand
Frequency of Availment Demand Times in a Availment Demand
a b c d e f=cxdxe
Daily 39,903 1.7% 660 365 1 240,737
2-3 times a week 39,903 15.7% 6,266 130 2 1,629,099
4-5 times a week 39,903 0.6% 220 234 1 51,445
Weekly 39,903 42.4% 16,929 52 2 1,760,571
Monthly 39,903 35.5% 14,180 12 2 340,330
Yearly 39,903 4.1% 1,649 1 3 4,947
ANNUAL DEMAND FOR 2023 39,903 4,027,129

Table 2.15 Projected Annual Demand for 2023 in Hours

PROJECTED DEMAND (Per Hour Basis)

Year Annual Demand on Ave. Growth Actual Total Projected
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 19

Previous Year Rate Increase Demand

a b c=axb d =a + b
2024 4,027,129 1.56% 62,859.83 4,089,989
2025 4,089,989 1.53% 62,576.83 4,152,566
2026 4,152,566 1.59% 65,969.17 4,218,535
2027 4,218,535 1.56% 65,847.50 4,284,383
2028 4,284,383 1.56% 66,875.32 4,351,258

Table 2.16 Projected Annual Demand for 2024-2028

Using the Average Annual Growth Rate provided by the Mariveles Planning

and Development Office, the projected demand for the next 5 years was computed.

Supply and Supply Analysis

Supply is a fundamental economic concept that describes the total amount

of a specific good or service that is available to consumers. It can relate to the

amount available at a specific price or the amount available across a range of

prices if displayed on a graph. This relates closely to the demand for a good or

service at a specific price. The following tables will show the historical (2022) and

projected supply.

ANNUAL SUPPLY (KTV ROOM) for 2022

Name of the Max. No. No. of No. of Max. Hours Annual
Business of operation KTV per Supply
(Competitor) Custome s a year (Room/s) Operation
r a day
per
Room
a b c d e=(axbxcxd
)
Milagros KTV 10 365 6 24 525,600
Lodging Rooms
(Direct)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 20

Bang’s Videoke 15 365 2 12 131,400

RestoBar (Indirect)
Hermanos De Otra 30 313 1 12 112,680
Madre Restobar
(Indirect)
Melor Videoke Bar 20 365 1 12 87,600
(Indirect)
Berna’s Bar 20 365 1 12 87,600
(Indirect)
Ka-Polding 30 365 1 24 262,800
Restobar (Indirect)
Margie’s Place 15 365 2 24 262,800
(Direct)
TOTAL 1,470,480
Table 2.17 Supply Analysis of KTV Room or Karaoke for 2022 in Hours

Projected Supply (in Hours)

Previous Year Annual Ave. Growth Annual
Year Supply (KTV ROOM) Rate Increase Total Supply
a B c=axb d=a+c
2024 1,470,480 1.56% 22,953 1,493,433
2025 1,493,433 1.53% 22,850 1,516,282
2026 1,516,282 1.59% 24,088 1,540,371
2027 1,540,371 1.56% 24,044 1,564,414
2028 1,564,414 1.56% 24,419 1,588,833
Table 2.18 Projected Supply of KTV Room or Karaoke in Hours

Using the Average Annual Growth Rate provided by the Mariveles Planning

and Development Office, the projected supply for the next 5 years was computed.

Demand Gap

A demand-supply gap is the difference between supply and demand for a given

good or service. A gap analysis is generated and analyzed as a result to examine

the level to which customer demands are met. There is a demand from consumers,

but there is no supply or insufficient supply to fill that want. This creates an

opportunity for businesses to develop goods to fill that demand.

DEMAND-SUPPLY GAP ANALYSIS

Year Projected Total Projected Demand- Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 21

Demand Supply Supply Gap Gap

A b c 1.5%
2024 4,089,989 1,493,433 2,596,556 38,948
2025 4,152,566 1,516,282 2,636,284 39,544
2026 4,218,535 1,540,371 2,678,165 40,172 40,180
2027 4,284,383 1,564,414 2,719,968 40,800
2028 4,351,258 1,588,833 2,762,425 41,436
Table 2.19 Demand-Supply Gap Analysis

Based on the computed Demand Gap for KTV rooms or Karaoke, Safe ‘n

Sound has a demand in the market. In the computation of the demand gap, only

1.5% of the total demand gap size for KTV rooms or Karaoke and for food and

drinks will be accommodated based on the capacity of the business and to maintain

conservatism. Considering the fact that this business offers no necessary service,

which implies that this is not the priority of the target market, there are already

existing competitors around the area, which implies that not all demand gaps will

avail themselves of Safe ‘n Sound, particularly workers, families, and groups of

friends that are not minors or students, the advancement of technology where

potential customers can use their mobile phones to sing, the market for Home

Karaoke sets, and the capacity of the business. The Demand Gap will be catered to

based on the capacity of the business (See Table 3.3, Business Capacity, in

Chapter 3).
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 22

PROJECTED DEMAND FOR EVERY PRODUCT (in Hours)

2024 2025 2026 2027 2028
Projecte 38,948 39,544 40,172 40,800 41,436
d
Demand
KTV Room 644 654 664 674 685
Only (40%)
Duo With 966 980 996 1,012 1,027
(4.13%) Snacks and
Drinks
(60%)
KTV Room 1,717 1,743 1,771 1,798 1,826
Only
(6.78%)
Mini
With 23,605 23,966 24,347 24,727 25,113
65.01%
Snacks and
Drinks
(93.22%)
KTV Room 107 109 111 112 114
Only
(1.19%)
Standard
With 8,906 9,042 9,185 9,329 9,474
(23.14%)
Snacks and
Drinks
(98.81%)
Grande KTV Room 3,004 3,050 3,099 3,147 3,196
(7.71%) Only

Table 2.20 Projected Annual Demand for Every Products in Hours for 2024-2028

Projected Demand per KTV

The following tables show the Safe ‘n Sound’s projected demand per

unit/KTV room for the year 2024-2028.

To compute the Projected Demand in Unit (per KTV room):

Projected Demand∈ Hours x % Demand ∈ Hours

Projected Demand in Unit =
Demand Hours

PROJECTED DEMAND PER UNIT FOR DUO KTV ROOM ALONE (40%)
Year 2024 2025 2026 2027 2028
Projected Demand KTV Room 644 654 664 674 685
Alone (in Hours)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 23

Projected Demand (in Unit)

30 mins to 2 hours (93%) 299 304 309 314 318
3 hours (0%) - - - - -
4 hours (7%) 11 11 12 12 12
5 hours (0%) - - - - -
TOTAL DEMAND IN UNIT 311 315 320 325 330
Table 2.21 Projected Demand per Unit for Duo KTV Room Alone

PROJECTED DEMAND PER UNIT FOR DUO KTV ROOM WITH SNACKS and
DRINKS (60%)
Year 2024 2025 2026 2027 2028
Projected Demand With Snacks 966 980 996 1,012 1,027
& Drinks (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (93%) 449 456 463 470 478
3 hours (0%) - - - - -
4 hours (7%) 17 17 17 18 18
5 hours (0%) - - - - -
TOTAL DEMAND IN UNIT 466 473 481 488 496
Table 2.22 Projected Demand per Unit for Duo KTV Room with Snacks and Drinks

PROJECTED DEMAND PER UNIT FOR MINI KTV ROOM ALONE(6.78%)

Year 2024 2025 2026 2027 2028
Projected Demand KTV Room 1,717 1,743 1,771 1,798 1,826
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (92.5%) 794 806 819 832 845
3 hours (6%) 34 35 35 36 37
4 hours (0.5%) 2 2 2 2 2
5 hours (1%) 3 3 4 4 4
TOTAL DEMAND IN UNIT 834 847 860 874 887
Table 2.23 Projected Demand per Unit for Mini KTV Room Alone

PROJECTED DEMAND PER UNIT FOR MINI KTV ROOM WITH SNACKS and
DRINKS (93.22%)
Year 2024 2025 2026 2027 2028
Projected Demand With Snacks 23,605 23,966 24,347 24,727 25,113
& Drinks (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (92.5%) 10,917 11,084 11,260 11,436 11,615
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 24

3 hours (6%) 472 479 487 495 502

4 hours (0.5%) 30 30 30 31 31
5 hours (1%) 47 48 49 49 50
TOTAL DEMAND IN UNIT 11,466 11,642 11,827 12,011 12,199
Table 2.24 Projected Demand per Unit Mini KTV Room with Snacks and Drinks

PROJECTED DEMAND PER UNIT FOR STANDARD KTV ROOM ALONE

(1.19%)
Year 2024 2025 2026 2027 2028
Projected Demand KTV Room 107 109 111 112 114
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (55%) 30 30 30 31 31
3 hours (26%) 9 9 10 10 10
4 hours (6%) 2 2 2 2 2
5 hours (13%) 3 3 3 3 3
TOTAL DEMAND IN UNIT 43 44 45 45 46
Table 2.25 Projected Demand per Unit for Standard KTV Room Alone

PROJECTED DEMAND PER UNIT FOR STANDARD KTV ROOM WITH SNACKS
and DRINKS (98.81%)
Year 2024 2025 2026 2027 2028
Projected Demand With Snacks 8,906 9,042 9,185 9,329 9,474
& Drinks (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (55%) 2,449 2,486 2,526 2,565 2,605
3 hours (26%) 772 784 796 808 821
4 hours (6%) 134 136 138 140 142
5 hours (13%) 232 235 239 243 246
TOTAL DEMAND IN UNIT 3,586 3,641 3,699 3,756 3,815
Table 2.26 Projected Demand per Unit for Standard KTV Room with Snacks and
Drinks

PROJECTED DEMAND PER UNIT FOR GRANDE KTV ROOM

Year 2024 2025 2026 2027 2028
Projected Demand (in Hours) 3,004 3,050 3,099 3,147 3,196
Projected Demand (in Unit)
30 min to 3 hours (64%) 641 651 661 671 682
4 hours (29%) 218 221 225 228 232
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 25

5 hours (7%) 42 43 43 44 45
TOTAL DEMAND IN UNIT 901 915 929 944 958
Table 2.27 Projected Demand per Unit for Grande KTV Room

PROJECTED DEMAND PER UNIT

Product/
Percentage 2024 2025 2026 2027 2028
Service
Projected
Demand
KTV Room
311 315 320 325 330
Only (40%)
Duo With
(4.13%) Snacks
466 473 481 488 496
and Drinks
(60%)
KTV Room
Only 834 847 860 874 887
(6.78%)
Mini
65.01% With
Snacks 11,46 11,64 11,82
12,011 12,199
and Drinks 6 2 7
(93.22%)
KTV Room
Only 43 44 45 45 46
(1.19%)
Standard
(23.14%) With
Snacks
3,586 3,641 3,699 3,756 3,815
and Drinks
(98.81%)
Grande KTV Room
901 915 929 944 958
(7.71%) Only
Table 2.28 Projected Demand per Unit (Summary) for 2024-2028

MARKETING STRATEGIES

Products
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 26

Safe ‘n Sound is an entertainment business, a karaoke television (KTV)

specifically, that offers both services and products. The business offers an

exclusive karaoke room as well as snacks and foods that customers can enjoy.

Price

The price of a karaoke room is based on the existing rate in the market. While

cost-plus pricing, otherwise known as mark-up pricing, will be used in determining

the prices of the foods and snacks offered.

Pricing Method

1. Karaoke rooms
KTV Room Pricing
Room KTV Room Alone KTV Room with Extension
Snacks and Drinks
Duo (1-2 person) ₱ 150.00 for 2 ₱230.00 for 2 hours ₱ 50.00 per hour
hours
Mini (3-5 person) ₱250.00 for 2 hours ₱ 400.00 for 2 hours ₱ 100.00 per
hour
Standard (5-10 ₱ 400.00 for 2 ₱ 650.00 for 2 hours ₱ 150.00 per
persons) hours hour
Grande (for ₱ 1,200.00 for 3 N/A ₱500.00 per hour
special hours
occasions)
Table 2.29 KTV Room Pricing

Safe ‘n Sound will use the going-rate pricing method, a type of competition-

based method. The prices of karaoke rooms are determined based on the

prevailing rate in the market. Safe ‘n Sound will follow the prices offered by the

existing competitors with minor adjustments based on the quantity and quality of the

service we offer. Through this, we can guarantee that we will generate profit while

ensuring that the prices set are within the expected rate that customers are willing

to pay.

2. Snacks and Drinks

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 27

The business will use the cost-plus method as a pricing strategy for food and

beverages. The price is computed based on the cost plus a markup rate of 25% for

the DUO KTV Room with Snacks and Drinks, 10% for the Mini KTV Room with

Snacks and Drinks, and 8% for the Standard KTV Room with Snacks and Drinks.

This method will ensure that the prices of our snacks and drinks are within a

reasonable range while having a positive and consistent rate of return. Thus, our

products are fairly valued for the benefit of both the customers and the business.

Snacks and Drinks Pricing

Room Snacks and Drinks
Duo (1-2 person) Cost:
1 Chip ₱35
1 Soda (750ml) – ₱25
Selling Price incorporated in KTV
Room Pricing – ₱80
Mini (3-5 person) Cost:
2 Chips - ₱70
1 Soda (1500ml) – ₱65
Selling Price incorporated in KTV
Room Pricing – ₱150
Standard (5-10 persons) Cost:
4 Chips - ₱140
1Soda (1500ml) – ₱65
1 Soda (750ml) – ₱25
Selling Price incorporated in KTV
Room Pricing – ₱250
Grande (for special occasion) N/A
Individual Pricing for Snacks Chip - ₱50
and Drinks Soda (750ml) - ₱40
Soda (1500ml) - ₱80

Table 2.30 Snacks and Drinks per KTV Room Pricing

Place

The ideal location for this business is in Jose Sarreal, Brgy. Poblacion,

Mariveles, Bataan. It is a place near the Mariveles Public Market that is accessible
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 28

for everyone, especially workers and students from schools near the area. This is

the ideal place that will enable the business to easily reach out to potential

customers.

Promotion

The business will use both traditional and modern methods of marketing.

Tarpaulins will be displayed in the business establishment, and flyers will be

distributed to the target customers. As for the modern method, the business will

utilize the influence of social media, such as Facebook, Instagram, and Twitter, to

reach out to customers. This method is cost-effective and will help Safe ‘n Sound

reach a wider market. In the first week of operation, there will be a promo where the

first two (2) customers every day who scores a perfect 100 will receive a t-shirt and

a cash prize amounting to ₱500. Once a month, every first Saturday of the month, it

will be a tradition at Safe ‘n Sound to award the first two (2) customers to score a

perfect 100 in KTV with a cash prize and a t-shirt.

Marketing Plans/Programs

A company’s marketing program outlines the many promotional strategies it will

use to boost sales. It consists of strategies, tactics, and instruments for interacting

with customers. Safe ‘n Sound will use Direct Marketing as a strategy for promoting

the business to its target customers. Safe ‘n Sound will use tarpaulins or flyers

featuring the business name, logo, location, and products that will be posted on the

highways. Printing the tarpaulin or the flyers costs 120–600 pesos, depending on

the sizes.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 29

Figure 2.2 Tarpaulin/Flyers Layout

Additionally, Safe ‘n Sound will have a social media account for promoting the

business, such as Facebook, as a way to reach target customers from other places.

Its social media accounts consist of photos of the products that the business offers,

its prices, and announcements. It is also an easy way to communicate to the

customer their concerns about the business, especially for reservations to Safe ‘n

Sound’s Grande room.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 30

Figure 2.3 Safe ‘n Sound Facebook Page

https://www.facebook.com/profile.php?id=100092324156753

Figure 2.4 Safe ‘n Sound T-shirt Design

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Chapter 3

TECHNICAL AND OPERATIONAL ASPECTS

This section covers the description of the products or services offered by the

business or company, the production processes, its machinery, and the equipment

used in the production. It includes recommendations for coming up with an

economical plan layout and the identification of a suitable plan location. It discusses

how the products are to be produced, the processes and technologies involved

when the products are to be produced, how much it will cost to produce, and the

plant size.

Product/Service Description

The table below provides detailed product and service descriptions that Safe ‘n

Sound offers to its customers and can be expected by them.

Services Description

KTV ROOM The Duo KTV room is the smallest KTV room at Safe ‘n Sound and
ALONE is only good for 1-2 people. Safe ‘n Sound has two Duo KTV
Rooms.

A Mini KTV room is the ideal KTV room for a group of friends. This
can cater to 3–5 people. The business has three Mini KTV rooms.

A standard KTV room is the best option for a large group of friends,
workers, and even families. This room is good for 5–10 people.
There are two Standard KTV Rooms.

For those who want to hold a party or special occasion in the Safe ‘n
Sound, they can avail of the Grande KTV room. It can accommodate
10-20 people. There will be only one Grande KTV Room in the
business.

The Karaoke systems are very updated, so they can sing any recent
songs they want. Inside the room, there will be a party light and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 32

props for the party vibes or whatever mood they prefer. There is also
CCTV in each room to monitor the customers. Although there is a
distinction in the size of the KTV rooms, Safe ‘n Sound will make
sure they experience fair and square services. KTV rooms can be
availed of for both reservations and walk-ins. For reservations and
more inquiries, they can just send a direct message to the Safe ‘n
Sound Facebook page of the business,
https://www.facebook.com/profile.php? id=100092324156753

As for payment, Safe ‘n Sound accepted payment through Gcash or

cash.

KTV ROOM Aside from the KTV rooms, customers can also avail of KTV rooms
WITH with snacks and drinks. The snacks and drinks offered by the
SNACKS business will be just chips that they can munch on while singing.
AND This is not for sale individually. Either they choose if they want
DRINKS snacks and drinks or the KTV room alone.

Table 3.1 Product/Service Description

Service Cost

In this portion, the business discusses the cost of the services that Safe ‘n

Sound offers.

KTV Room Pricing

Room KTV Room KTV Room with Extension
Alone Snacks and Drinks
Duo (1-2 person) ₱ 150.00 for ₱230.00 for 2 hours ₱ 50.00 per hour
2 hours
Mini (3-5 person) ₱250.00 for ₱ 400.00 for 2 hours ₱ 100.00 per
2 hours hour
Standard (5-10 ₱ 400.00 for ₱ 650.00 for 2 hours ₱ 150.00 per
person) 2 hours hour
Grande (for special ₱ 1,200.00 N/A ₱500.00 per
occasion) for 3 hours hour

Table 3.2 Service Cost

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 33

Business Location

Figure 3.1 Street View of Business Site

As shown in the illustration above, the proposed business would be at Jose

Sarreal, Brgy. Poblacion, Mariveles, Bataan. The place is deemed to be the center

of Lower Mariveles, where there is heavy customer traffic, allowing the business to

be recognized. The company will also be placed in a secure neighborhood and on

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 34

the ground floor of the building, making it easy for customers to visit. All of the

rooms are soundproof, ensuring that there won’t be any disturbance to the place

and that the karaoke won’t overlap with other sounds.

Figure 3.2 Location’s Satellite View

*Source: Google Maps

Plant Site and Floor Plan

The size of the lot is 150 square meters. The establishment is about 11 m by

6 m, which is substantially allocated for different rooms of the karaoke business.

Room Descriptions: Mini Room measures 2 m x 1.50 m; Duo Room measures 1.50

m x 1.50 m; Standard Room measures 4 m x 2 m; Grande Room measures 4 m by

3.50 m; Powder Room measures 1.50 m x 1.50 m; Admin Office measures 2 m x 2

m. The plant layout is intended to facilitate business operations. The following

diagram depicts the layout of the building:

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 35

Figure 3.3. Floor Plan

Business Capacity

Business Capacity in Hours

No.
of No. No.
KT Opera of Opera of Alloted Annual
V ting Week ting Week Annual Hours Max.
Ro Hours ends Hours days Capacit per Capacity
Product/ om (Week in (Week in y in KTV per KTV
Service s end) Year days) Year Hours Room Room
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 36

f g h
a x [(b x
c) + (d x
a b c d e e)] d/e

Duo 2 16 102 10 207 7,404 2 3,702

Mini 5 16 102 10 207 18,510 2 9,255

Standar
d 1 16 102 10 207 3,702 2 1,851

Grande 1 16 102 10 207 3,702 3 1,234

TOTAL 33,318 16,042

Table 3.3 Business Capacity

Capacity Utilization
2024 2025 2026 2027 2028
Duo 20% 21% 22% 23% 24%
Mini 90% 91% 92% 93% 94%
Standard 90% 91% 92% 93% 94%
Grande 40% 41% 42% 43% 44%
Table 3.4 Capacity Utilization

Based on the business space, number of available KTV rooms, and other

circumstances such as customers’ financial capacity, customer behavior towards

KTV, and school and work hours and days since most of the potential customers for

this KTV room are students, which must not be expected to be on premises every

day due to school days and local ordinances, the business only estimates the

utilized capacity of the business for the whole year. Only 20% of the capacity of the

Duo KTV room will be utilized, which is the demand per room divided by the room

capacity. For both Mini and Standard KTV rooms, only 90% can be utilized. In the

Grande KTV room, only 40% of the capacity will be utilized. These estimates were

made to be conservative since we anticipated that there would not be customers

every day. The utilized capacity increased by 1% as demand increased.

Utilized Capacity (in Hours)

2024 2025 2026 2027 2028
DUO 1,481 1,555 1,629 1,703 1,777
MINI 6,664 6,738 6,812 6,886 6,960
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 37

STANDARD 6,664 6,738 6,812 6,886 6,960

GRANDE 2,962 3,036 3,110 3,184 3,258

PROJECTED DEMAND PER UNIT

Product/ Percentag
2024 2025 2026 2027 2028
Service e
Projected
Demand
Duo KTV Room 286 300 314 329 343
(4.13%) Only (40%)
With Snacks 429 450 472 493 514
and Drinks
(60%)
KTV Room 219 222 224 227 229
Only (6.78%)
Mini
65.01% With Snacks 3,017 3,051 3,084 3,118 3,151
and Drinks
(93.22%)
KTV Room 32 32 33 33 33
Only (1.19%)
Standard
(23.14%) With Snacks 2,651 2,681 2,710 2,740 2,769
and Drinks
(98.81%)
Grande KTV Room 888 910 932 955 977
(7.71%) Only

*See Appendix 2

Perspective View

The images below are the proposed perspective view of the standard room in

the KTV business of Safe ‘n Sound. Here, customers can bond, have fun, and

celebrate with their friends and families.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 38

Figure 3.4 First Perspective of Standard Room

Figure 3.5 Second Perspective of Standard Room

Figure 3.6. Third perspective of Standard Room

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 39

Operation Schedule

Safe ‘n Sound will be open for business every Tuesday through Sunday. It will

operate at 8:00 a.m. and close at 12:00 mn during weekends, while being open at

2:00 p.m. and closing at 12:00 mn every weekday (excluding Mondays). Both

students and employees are welcome to drop by during their free time or after their

shifts. KTV rooms are always available, making them a good choice for friends

(barkadas) and families to plan their weekdays or weekends.

Business Process

The following diagram presents the service flow of the KTV business of Safe ‘n

Sound that customers can use as a guide to avail themselves of or book the

services available at the firm.

Figure 3.7 Business Process

Machinery and Equipment, Furniture and Fixtures, and Supplies

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 40

The following tables present the list of machinery and equipment, furniture,

fixtures, and supplies that will be used in the business operation, with their

corresponding descriptions, specifications, quantities, unit costs, and suppliers.

Equipment Descriptio Specification Qty Unit Source

n Cost
Desktop Will be HP PAV DT 2 ₱43,990 Octagon –
used for the TP01-1127D/ Balanga,
administrati CORE I5- Bataan
ve function 10400F
of the
Computer business.
EUL: 6
years
Printer Use to print EPSON 1 ₱8,600 Octagon –
documents ECOTANK Balanga,
for hard L3110 Bataan
copies PRINTER
EUL: 5 (T00V
years SERIES)
Air conditioner To cool TCL 1.0 HP 10 ₱25,495 Robinsons
down the SPLIT TYPE Appliances
temperatur AIR – San
e inside the CONDITIONE Fernando,
establishm R (TAC- Pampanga
ent. 09CSA/KEI
EUL: 15 KE SERIES)
years
Refrigerator Storage Hanabishi 9 1 ₱25,620 Robinsons
and chiller cu. Ft chiller Appliances
for the (hinvchill90) – San
drinks Fernando,
offered in Pampanga
the ktv
EUL: 10
years
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 41

Water Dispenser Use for the Hanabishi 1 ₱7,356 Robinsons

water water Appliances
offered to dispenser – San
employees (HFSWD Fernando,
and 3100) Pampanga
customers
as free
refreshmen
t
EUL: 6
years
Electric fan To cool off Hanabishi 2 ₱1,980 Robinsons
the lobby WM18WF Appliances
area to dark blue –
make it a Pampanga
more
comfortable
place
EUL: 6
years
Karaoke Set Allows The set 9 ₱25,000 Jonalyn’s
customers includes Home
to sing and Platinum Appliances
enjoy Karaoke –
music. Piano XL SD, Mariveles,
EUL: 8 U20 Wireless Bataan
years Microphone,
AD-310 Pro
Speaker, and
Maharaja MA-
800 Amplifier
KTV Monitor Use to Platinum LED 9 ₱5,500 Jonalyn’s
display the TV Home
information Appliances
generated –
by the Mariveles,
karaoke Bataan
device.
EUL: 8
years
Vacuum cleaner Use for Samsung 1 ₱5,385 Robinsons
cleaning Vacuum Appliances
the Cleaner – San
establishm (VC18M21M0 Fernando
ent VNTC) Pampanga
EUL: 6
years
CCTV Use to HIKVISION 1 ₱14,999 Octagon –
monitor the TVI- Balanga
establishm 8CH4D4B- Bataan
ent 24/7 1MP 8CH
EUL: 5 CCTV pack
years
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 42

Table 3.5 List of Equipment

Equipment QTY Unit Unit Cost Total Cost

Desktop Computer 2 pcs ₱43,990 ₱87,980
Printer 1 pcs 8,600 8,600
Air Conditioner 10 pcs 25,495 254,950
Refrigerator 1 pcs 25,620 25,620
Water Dispenser 1 pcs 7,356 7,356
Electric Fan 2 pcs 1,980 3,960
Karaoke set 9 pcs 25,000 225,000
KTV monitor 9 pcs 5,500 49,500
Vacuum Cleaner 1 pcs 5,385 5,385
CCTV 1 Box 16,500 16,500
Total ₱684,851
Table 3.6 Total Cost of Equipment

Furniture and Description Specification Qty Unit Source

Fixtures Cost
File Cabinet Storage for White wooden 1 ₱6,899 Mandaue
the supplies storage Book foam
and other Cabinets / home
miscellaneous Bookshelves store –
items. with drawers San
EUL: 15 years Fernando,
Pampanga
Food Storage Display Frankie Book 2 ₱1,575 Mandaue
Cabinet storage for Stand – White foam
chips offered home
in the ktv store –
EUL: 7 years San
Fernando,
Pampanga

Office Table Will serve as Gray Office 1 ₱3,255 Mandaue

the desk for Desk foam
the computer W120xD60xH76 home
and the cm store –
working San
space of the Fernando,
manager. Pampanga
EUL: 15 years
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 43

Chair Provide seat Ecoln Office 2 ₱5,850 Mandaue

for the person Chair foam
working Adjustable Arm home
EUL: 10 years 500L X 480 D X store –
980-1070 H MM San
Fernando,
Pampanga

Reception Desk Use by the Reception Desk 1 ₱13,630 Mandaue

receptionist 138 L X 58 W X foam
when dealing 105 H CM home
with business store –
transactions San
and receiving Fernando,
customers. Pampanga
EUL: 15 years

2-seater Sofa Provides a 2-seater 8 ₱9,100 Mandaue

seat for Camrose sofa foam
customers as in Essen black home
they wait in store –
the lobby San
EUL: 10 years Fernando,
Pampanga
3-seater Sofa Provides 3- seater 5 ₱18,700 Mandaue
seats for the Camrose Sofa- foam
customers in Essen Black home
the KTV store –
room. San
EUL: 10 years Fernando,
Pampanga
5-seater Sofa Provides seat 5- seater 6 ₱37,100 Mandaue
for the Camrose Sofa- foam
customers in Essen Black home
the KTV room store –
EUL: 10 years San
Fernando,
Pampanga
Table A place where Snow Coffee 10 ₱3,150 Mandaue
the customers Table – Black foam
can put their Marble home
things and store –
their food and San
beverages Fernando,
EUL: 10 years Pampanga
Table 3.7 List of Furniture and Fixtures

Furniture and
QTY Unit Unit Cost Total Cost
Fixtures
File Cabinet 1 pcs ₱6,899 ₱6,899
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 44

Food Storage Cabinet 2 pcs 1,575 3,150

Office Table 1 pcs 3,255 3,255
Chair 2 pcs 5,850 11,700
Reception Desk 1 pcs 13,630 13,630
2-seater Sofa 8 pcs 9,100 72,800
3-seater Sofa 5 pcs 18,700 93,500
5-seater Sofa 6 pcs 37,100 222,600
Table 10 pcs 3,150 31,500
Total ₱459,034
Table 3.8 Total Cost of Furniture and Fixtures

Supplies Description Specification Qty Unit Source

Cost
Chips Assorted Barkada Pack 300 ₱35 Cora’s
chips or 90g-100g Grocery –
offered for chips per bag Mariveles
those who Bataan
avail KTV
room with
foods
Soda Refreshmen 1.5 Liter soft 100 ₱65 Cora’s
t included in drinks Grocery –
the KTV Mariveles
room Bataan
package

Soda Refreshmen 750 ml soft 100 ₱25 Cora’s

t included in drinks Grocery –
the KTV Mariveles
room Bataan
package

Water Mineral 20-liter bottle 10 ₱25 FEC water

water as jar for water refilling
free dispenser station –
refreshment Mariveles
for Bataan
employees
and
customers
Disposable cups Cups the 8 oz clear 20 ₱30 Cora’s
customers plastic Grocery –
can use for disposable Mariveles
their drinks cups – 50 pcs Bataan
per pack
Bond Papers Office Hard copy 3 ₱185 HomTai
supplies paper 500 shopping
where sheets – A4 center –
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 45

documents size Mariveles,

are to be Bataan
printed or
information
are to be
written
Pens Use for Gel pen 2 ₱72 HomTai
writing and 0.5mm black shopping
signing – 12pcs per center –
documents box Mariveles,
Bataan
Stapler Use to HBW Office 2 ₱109 HomTai
organize the 9949-1 shopping
documents Stapler with center –
staple Mariveles,
remover Bataan
Staple Use for the Deli E0012S 3 ₱15 HomTai
stapler Staple Wire shopping
26/6 Staple – center –
1000pcs per Mariveles,
box Bataan
Ink Ink refill for 1 set with 4 1 ₱1,10 Octagon –
the printer 70 ml bottle of 0 Balanga,
ink. Bataan

Tissue Tissue 2 ply tissue 6 ₱17 HomTai

paper for rolls shopping
cleaning center –
and sanitary Mariveles,
purposes Bataan

Garbage bag A bag to Plastic trash 6 ₱33 HomTai

store the bag – 60L, shopping
garbage 20pcs per center –
until pack Mariveles,
disposed Bataan

Broom Use for Made of tiger 2 ₱150 HomTai

sweeping grass fiber shopping
the floor with wooden center –
handle Mariveles,
Bataan

Dust pan Use to pick 29cm L × 2 ₱150 HomTai

up the dusts 23cm W × 60 shopping
and dirt cm H center –
gathered Mariveles,
upon Bataan
sweeping
the floor

Mop Use to clean 1 set with 1 ₱253 HomTai

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 46

the floor bucket shopping

center –
Mariveles,
Bataan

Trash can A container Black 50L 3 ₱260 HomTai

of all the trash bin shopping
garbage center –
collected in Mariveles,
the Bataan
establishme
nt
Bucket Use as a Plastic Bucket 1 ₱110 HomTai
container for – 16 Liter shopping
water in the center –
comfort Mariveles,
room Bataan

Dipper Use to Heavy Duty 1 ₱15 HomTai

scoop water Plastic dipper shopping
from the 10.5cm x center –
bucket 11.5cm Mariveles,
Bataan

Light Bulb Use to Xinmey 28W 12 ₱137 HomTai

illuminate LED light bulb shopping
the whole center –
area Mariveles,
Bataan
Party Lights Use to Three color of 10 ₱51 tiwl.ph –
decorate the strobe effects: shopee –
room and red green and Metro Manila
set the ktv blue.
ambiance

LED strip lights Use for Available in 100 ₱169 Kaizenphilippi

additional different nes- shopee –
decoration colors and Bocaue,
and accent sold for P169 Bulacan
to the ktv per meter
rooms

Fire Extinguisher It is an ABC dry 1 ₱890 Tigronatix-

active fire chemical 2018 –
protection 10lbs shopee –
device used Caloocan
to City, Metro
extinguish Manila
or control
small fires,
often in
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 47

emergency
situations.
Table 3.9 List of Supplies

Supplies QTY Unit Unit Cost Total Cost

Chips 300 bag ₱35.00 ₱10,500.00
Soda (1.5L) 100 bottle 65.00 6,500.00
Soda (750 ml) 100 bottle 25 2,500
Water 10 bottle 25 250
Disposable cups 20 pack 30 600
Bond Papers 3 ream 185 555
Pens 2 box 72 144
Stapler 2 pcs 109 218
Staple 3 box 15 45
Ink 1 set 1,100.00 1,100
Tissue 6 roll 17 102
6 bundl 33 198
Garbage Bag e
Broom 2 pcs 150 300
Dust pan 2 pcs 150 300
Mop 1 pcs 253 253
Trash Can 3 pcs 260 780
Bucket 1 pcs 110 110
Dipper 1 pcs 15 15
Light Bulb 12 pcs 137 1,644
Party Lights 10 pcs 51 510
LED Strip Lights 100 meter 169 16,900
Fire Extinguisher 1 pcs 890 890
Total ₱44,414
Table 3.10 Total Cost of Supplies (Initial)

UTILITY SERVICES

Electricity

KTV business needs or uses electricity the most since the primary service

offered is karaoke, which operates by machine or karaoke equipment. PENELCO

Inc., Mariveles, will be in charge of the electricity needs of the business. There will

be a high demand for power and electricity to energize the machinery and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 48

equipment and other stuff used in the business that consumes electricity. Based on

the recent electricity rate, the rate per KWH will be ₱10.9762. In projecting the

electric cost of the business for the next five (5) years, Safe ‘n Sound will use the

inflation rate for KWH consumption per day to be projected using the annual

population growth rate.

ELECTRIC CONSUMPTION

Power Consumption
Equipment and Fixtures QTY
KWH Weekdays Weekends
Air Conditioner 10 0.513 51.330 82.13
Electric fan 2 0.033 0.660 1.06
Light bulb 12 0.015 1.800 2.88
Party Lights 10 0.018 1.800 2.88
LED Strip Lights 9 0.025 2.250 3.60
Internet Modem 1 0.020 0.200 0.32
CCTV 10 0.010 2.400 2.40
Computer Set 2 0.070 1.400 2.24
Printer 1 0.024 0.120 0.38
KTV Monitor 9 0.105 9.432 15.09
Karaoke System 9 0.079 7.110 11.38
Water Dispenser 1 0.019 0.190 0.30
Refrigerator 1 0.075 1.803 1.20
Vacuum 1 0.405 2.023 6.47
TOTAL 1.411 82.517 132.332
Table 3.11 Electric Consumption

Water
Water is still necessary for the business, and the Mariveles Water District

(MARIWAD) will supply water to the business. Safe ‘n Sound is under the category

of Commercial A; therefore, the water rate to be used in the business will be based

on the rates for Commercial A. Based on the recent electricity rate by PENELCO

Inc., Commercial A rates will be ₱183.75 for 10 cubic meters (CUM), an additional

₱20.00 per CUM for 11–20 cubic meters, ₱23.35 per CUM for 21–30 cubic meters,

27.90 per CUM for 31–40, and 33.60 per CUM for 41 CUM and above. In projecting

the electric cost of the business for the next five (5) years, Safe ‘n Sound will use

the inflation rate.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 49

WATER CONSUMPTION
Monthly Estimated
Water Consumption Consumption (cubic meter)
Restroom/Washroom 4
Cleaning 6
Total 10
Table 3.12 Water Consumption

Internet Service

Safe ‘n Sound will also have an internet connection which will be supplied by

Converge ICT. The cost per month is fixed which is amounting to ₱ 1,350

INTERNET SERVICE
Service Maximum Speed
Internet 200 Mbps.
Table 3.13 Internet Service

Supply Chain Management

The table below shows the lists of suppliers of Safe ‘n Sound business

operations. They will provide the business with the supplies needed in both

operation and administration, equipment needed, and furniture and fixtures of the

Safe ‘n Sound.

SUPPLIER LOCATION RESOURCES/SUPPLIES

PROVIDED
Mandaue Foam Jose Abad Santos Ave., Sofa, Table, Chairs,
Home Store Dolores, San Fernando City, Cabinets, Reception Desk
Pampanga
Octagon 2nd Floor Cyberzone SM City CCTV, Desktop computer,
Bataan, Balanga City, Printer
Bataan.
Jonnalyn’s Home Jose Sarreal, Brgy. Karaoke set, KTV monitor
Appliances Poblacion, Mariveles, Bataan
Robinsons Groud Floor, Robinsons Air conditioner, Refrigerator,
Appliances Starmills Olongapo-Gapan Water dispenser, Electric
Road, San Fernando City, fan, Vacuum cleaner
Pampanga
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 50

HomTai Shopping V. Semilla St. San Carlos, Cleaning Supplies, Office

Center Mariveles, Bataan Supplies, Light bulb

Cora’s Grocery Jose Sarreal, Brgy. Snacks and Drinks

Poblacion, Mariveles, Bataan
Kaizen Bocaue, Bulacan Led Strip Lights
Philippines –
Shopee
Tiwl.ph – Shopee Metro Manila Party Lights
Table 3.14 Suppliers

The figure below presents the supply chain management process that

shows how the process of acquiring supplies, equipment, furniture, and fixtures

from suppliers leads to consumption in business operations and distribution to

customers.

With the equipment, furniture, fixtures, and supplies acquired,

Safe ‘n Sound will now be able to provide its services to its
customers. Equipment such as the Karaoke set and KTV monitor
will all be set, as will the lighting for the party vibes. The
SUPPLIER
customers will only have to avail themselves of any of the rooms
and pay for their preferred time to stay on the premises. Supplies,
such as snacks and drinks, will be delivered to their room if they
book a room with snacks and drinks.

The customers will be able to experience the party vibes or

BUSIN
whatever they prefer by using the KTV rooms. With the quality
ESS
service that Safe ‘n Sound offers, they will surely have fun with
their friends and loved ones. Aside from party vibes, the business
wants to build strong bonds and friendships with its customers
and let the music speak for their emotions.

Safe ‘n Sound will have different suppliers depending on what is

necessary and available from those suppliers. The table above
CUSTOME
RS shows the lists of the business's suppliers. Safe ‘n Sound
chooses suppliers with affordable products as well as quality.
The process of acquiring the equipment, furniture, and fixtures
will be done personally by the business owner. As for the
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 51

Figure 3.8 Supply Chain Management

Total Project Cost/Start-up Cost

The table below shows the total costs of establishing a business from the

beginning. It includes the costs of registering the business, the acquisition of

equipment, furniture, fixtures, and supplies, and the cost of renovating the place.

TOTAL START-UP COSTS

Total
Amount
Leasehold Improvement Cost ₱516,000
Fixed Assets Cost
Equipment ₱684,851
Furniture and Fixtures 459,034 1,143,885
Initial Supplies
Office Supplies 2,062
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 52

Sanitary and Safety Supplies 2,948

Snacks and Drinks 19,500
Other Supplies 19,944 44,454
Legal and Regulatory Costs
Securities and Exchange Commission 5,220
Notarial Fees 1,000
Barangay Clearance 705
Business Permit 10,300
BIR 530
SSS -
PhilHealth -
Pag-IBIG 100
Intellectual Property – Trademark 3,850 21,705
Promotion/Advertisement Cost 1,200
Advanced and Deposit on Rent, and Pre-Operating 175,000
Rent Expense
Utilities 3,551
Human Resource Expenses 10,000
TOTAL START-UP COST ₱1,875,795
Table 3.15 Total Start-Up Costs
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Chapter 4

MANAGEMENT AND LEGAL ASPECTS

This section also explains the details of starting a business. It describes the form

of business organization and discusses discussions regarding capital requirements,

organizational structure, manpower requirements, policies, legal requirements, and

scheduling.

Objectives of the Business

The business aims to launch KTV rooms that give families, friends, and

individuals the chance to have fun and release their emotions with music. A place

where they can sing out of their hearts and voices without disturbing the

neighborhood. Also, the business aims to achieve profits within the first month of its

operation and establish a sustainable business by the end of its first year of

operation. For the long-range objectives, the business "Safe ‘n Sound" will give job

opportunities to all possible employees around the area, gradually increase the

market share of the business, and build more branches.

Vision

Safe ‘n Sound provides the best experience for the whole family, group of

friends, couples, and the entire community that they can enjoy and build a

memorable experience through singing.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 54

Mission

To provide an unforgettable entertainment experience that resonates with

music enthusiasts. Through the perfect blend of cutting-edge technology,

exceptional customer service, and a vibrant ambiance, we aim to be the ultimate

destination for karaoke enthusiasts and social gatherings. We strive to create a safe

and inclusive space where people can express themselves, connect with friends

and family, and celebrate the joy of music. Our commitment to excellence, constant

innovation, and fostering a sense of community is what sets us apart and makes

Safe 'n Sound the preferred choice for karaoke entertainment.

Form of Business Organization

The business will be in general partnership form and is owned by three people,

specifically Ms. Lyca Rose Bustria, Ms. Angelica Mae Bracero, and Ms. Meynell

Jem Beloncio. A partnership is a type of business where two or more people make

a formal agreement to share ownership, as well as the responsibility for managing

the company and the profits that the business generates. In Safe ‘n Sound, one

hundred percent of the Net income will be shared equally by all partners after

deducting the designated annual salary for each industrial-capitalist partner.

Capitalization

The owners of Safe ‘n Sound agree to have an equal investment in the general

partnership. Each of the owners will have 33.33% (1/3) of the shares in the

business. The total amount of capital that Safe ‘n Sound has is ₱ 1,950,000, and

each partner will contribute ₱ 650,000 to the business.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 55

OWNERS OF THE BUSINESS

Type of Partner
As to As to Contribution
Name Liability Position in the Capital
Business Contributio
n
Meynell Jem General Industrial-Capitalist Assistant ₱ 650,000
Beloncio Manager
Angelica General Industrial-Capitalist Bookkeeper ₱ 650,000
Mae
Bracero
Lyca Rose Industrial-Capitalist General
Bustria Manager
General ₱ 650,000
Total ₱
1,950,000
Table 4.1 Initial Capital Contribution of the Partners

Organizational Structure
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 56

Figure 4.1 Organizational Structure

Manpower Requirements

Manpower planning focuses on the effective utilization of existing human

elements as well as fulfilling future manpower needs and the means and ways to

meet those needs in order to carry out the integrated plan of the organization.

Based on the organizational structure, the entrepreneur should determine the

number of workers needed in the organization and describe the duties and

responsibilities that go with the positions, the number of people needed, the

qualifications of those who will carry out each task, and the corresponding salaries

and benefits in the organization plan. The table below may be used to summarize

information:
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 57

Job Dema Job Academic Personnel Experienc Project

Title nd Description Requirem Requiremen e ed
ents ts Requirem Initial
ents Salary
Genera 1 The general Graduate Technical At least ₱
l manager of skills, (1) year 12,000
Manag determines the business conceptual experienc
er rhythm and the managem skills, e
flow of the ent four- human or
business. They year interpersona
dictate the course. l skills, basic
policies that bookkeepin
will g/accountin
characterize g skills
our planning,
establishment communicat
as a whole. It ion,
also handles decision-
the upper-level making,
decisions and delegation
duties required and
for daily problem-
operations of solving
the arcade. skills.
They in charge
of hiring
employees,
keeping track
of revenue and
updating the
design of the
arcade. They
may also
responsible for
ordering
additional
supplies,
managing
financial data
of the
organization.

Assista 1 She helps the Graduate Technical At least ₱

nt general of skills, (1) year 11,000
Manag manager by business conceptual experienc
er coordinating to managem skills, e
the day-today ent four- human or
business year interpersona
operations. course. l skills, basic
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 58

Manage bookkeepin
customer g/accountin
complaints and g skills
resolving planning,
issues. communicat
ion,
Assists the
decision-
general
making,
manager in
delegation
organizing,
and
planning, and
problem-
implementing
solving
strategies,
skills.
hiring staffs,
and managing
budgets.
Ensures that
company
guidelines are
followed
Bookke 1 It is Graduate Great data At least ₱
eper responsible in in any entry skills, (1) year 11,500
maintain four-year good experienc
accurate business communicat e.
record of course ion,
financial knowledge
transactions of
through bookkeepin
establishing g principles,
accounts, organizing
posting records,
transactions attention to
and ensure detail, have
legal an
requirements understandi
compliance. ng of the
bigger
picture and
be
disciplined.
Karaok 1 -Inspect and Four-year Fixing At least 1- ₱
e analyze degree in karaoke year 11,960
Technic troubleshootin technical system experienc
ian g systems and field. skills, basic e.
equipment. knowledge
-Responsible of new
for monitoring trends in
karaoke karaoke,
equipment. knowledge
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 59

-In charge of of electrical

replacing or system,
repairing faulty Math
equipment. proficiency
and
technical
skills, and
ability to lift
heavy
objects.
Recepti 2 -Responsible High Good at At least 1- ₱
onist for greeting School/Co basic year 11,830
customers and llege Mathematic experienc
visitors with a Graduate s, e
positive interpersona
attitude. l skills,
-In charge of product
assisting knowledge,
customers to telephone
their etiquette,
designated and
room. dependabilit
-Answer phone y.
calls and
respond to
messages in a
professional
manner.
-Monitors the
time availed by
customers and
pick them up to
their assigned
rooms once
the time is up.
-Responsible
for collection of
payments.
.
Janitor/ 2 -Ensures the Elementar Good at At least 1- ₱
Janitres cleanliness of y or High cleaning, year 10,920
s the building. School interpersona experienc
-Responsible Graduate l skills, e
for sanitizing etiquette,
the rooms after industrious,
the customers time
left. managemen
-In charge of t, and an
cleaning the early bird.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 60

restroom.

Securit 2 -Responsible High Security At least 1- ₱

y for monitoring, School/Co officer year 11,700
Person inspecting, and llege experience, experienc
nel securing the graduate patrolling e
area. law
-Report any enforcement
suspicious , good
happenings. customer
-Respond to service,
alarms and surveillance,
react in a basic
timely manner. knowledge
-Provide in martial
assistance if arts and
needed. always on
time.
Table 4.2 Manpower Requirements

Employees’ Uniform

Figure 4.2 Uniform of Employees

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 61

Figure 4.3 Uniform of Security Personnel

Compensation and Benefits

Compensation and benefits programs are designed to attract top talent and

retain valued employees; the work of these professionals is crucial within a

company’s HR (Human Resources) division. Employees benefits cover

remuneration other than basic pay, including vacation and sick leaves, medical and

hospitalization benefits, incentive pay such as bonuses, retirement benefits, and

overtime payments, and thirteenth (13th) month pay. In the Philippines, vacation and

sick leave that are unused are convertible to cash at the end of the year.

The projected initial salary of the employees is based on the minimum wage

rate established by the Department of Labor and Employment (DOLE) for

Mariveles, Bataan. According to the new Daily Minimum Wage Rate in Region III

(Central Luzon), Per Wage Order No. In RBIII-23, the minimum wage based on

employment size in Bataan is ₱414.00, or ₱ 51.75 per hour for an ordinary day.

Besides these minimum wage rates, the employees of Safe ‘n Sound will also

receive a benefit. The following are the benefits that will be offered to the

employees of Safe ‘n Sound:

Compensation and Benefits

Salaries and The salaries of the employees will be given twice a month, on
Wages the 10th and 25th of the month. The payment is on a cash basis.
Days of work from the 1st to the 15th of the next month will be
received on the 25th, while working days from the 16th to the 30th
or 31st will be paid on the 10th of the next month.

Sick Leave Employees are allowed five (5) days per year. Any unused sick
leave will be converted into cash at the end of the year.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 62

Emergency An Emergency is allowed in the following conditions:

Leave
Death of an immediate family member within 9 working days A
copy of the death certificate must be submitted upon returning
to work.

Hospitalization of the employee(s) or their immediate family

member due to a serious illness or injury A medical certificate
must be submitted upon returning to work.

Maternity This applies to all female employees, regardless of their civil

Leave and employment status. There will be 105 days of maternity
leave at full salary, and a solo parent, under RA 8972, or the
“Solo Parent Welfare Act of 2000,” is entitled to have an
additional 15 days at full pay.

In the event of a miscarriage or emergency termination of

pregnancy, the maternity leave shall be for 60 days at full pay.

A female employee can claim maternity leave if she at least

made a 3-month contribution to the SSS in the 12 months
before the semester of childbirth, miscarriage, or adoption.

Paternity This is granted to all married male employees. There will be 7

Leave calendar days of paternity leave with full pay. It consists of a
basic salary and mandatory allowances.

Overtime Every hour worked in excess of 8 hours will be paid at P71.875

(Ordinary Day) per hour.

Work on Rest The hourly rate will increase to 130% of their regular hourly rate.
Day/Special
Day

Work on their The employee’s regular hourly rate will increase by 150%
rest day which
is exactly as
special day

Worked during The regular hourly rate will be doubled (200%)

holiday

Work on their There will increase by 260% on their regular hourly rate
rest day which
is happens to
be a holiday

Night There will be an increase of 10% in their regular hourly rate

Differential Pay
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 63

13th month pay It will be given every December.

Employees’ Employees will be given a 2 sets of polo shirt as their uniform.

Uniform

Table 4.3 Employees Compensation and Benefits

Employer’s Obligations

1. Withholding Tax

Figure 4.4 Revised Withholding Tax Table-1

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 64

Figure 4.5 Revised Withholding Tax Table-2

The new withholding tax table took effect on January 1, 2023. Based on the

provisions of the TRAIN Law, employees with an annual salary below P250,000 will

be exempt from income tax, while employees with P250,000 to more than P8

million will be subjected to their corresponding tax percentage based on the

withholding tax table.

2. Pag-IBIG Fund
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 65

Figure 4.6 2023 Pag-IBIG Contribution Table

Based on the monthly salary of the employees, which will be in accordance with

the minimum wage rate in Bataan, 3% of the monthly salary of the employees will

be the employer’s share of the Pag-IBIG Fund of their employees.

3. PhilHealth

Figure 4.7 Philhealth Contribution Table

In the Universal Health Care Act, the PhilHealth contribution rises every

year. From 4% in the year 2022, it was supposed to be 4.5% for the year 2023;

however, the Office of the President issued an order to PhilHealth on January 2,

2023, to suspend the increase for 2023. Instead of 4.5%, the rate will have

remained at 4%. This suspension has nothing to do with the PhilHealth rate for the

year 2024. PhilHealth said it would push through the 5% increase rate as

scheduled. Therefore, 5% of the monthly salary will be deducted from the basic

salary of the employees.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 66

4. Social Security System

Figure 4.8 2023 SSS Contribution Table

Safe ‘n Sound will follow the updated SSS contribution table for the share of

employers to the SSS contribution of their employees

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 67

Legal Requirements

Registration

A Partnership company is a legal form of business operation in the

Philippines between two or more individuals who share and manage both the profits

and losses of the business. To operate the business legally in the Philippines, the

following steps and requirements for the registration of a partnership firm in the

Philippines must be followed and completed:

Documents Required (Basic Requirements) to set up a Partnership:

 Name Verification Slip

 Articles of Partnership (AP)

 Joint Affidavit of two partners to change partnership name

 Registration of data-sheet

 Certificate of Bank Deposit

 Name of the Partnerships

 Principal office address

 The contact number of the partner

 Name, citizenship, address, birthday and Taxpayer Identification Number

(TIN) of the partners

 Capital contribution of the partners

 Purpose of the partnership

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 68

Business Registration
Steps Requirements
1. Register the Business Name at the Name Verification Slip
Securities and Exchange Commission Articles of Partnership
(SEC).
2. Obtain Barangay Business Clearance Certificate of Business Registration
from SEC
Two Valid IDs
Proof of Address (Contract of
Lease/Certificate of Land Title and Tax
Declaration)
Barangay Clearance Form
3-a. Community Tax Certificate or Valid ID
CEDULA Application Slip
3-b. Building Permit and Electrical Duly Notarized Contract of Lease
Inspection Permit Application Form
Building/Leasehold Improvement Plan
Bill of Materials and Specifications
Barangay Construction Clearance
Construction Safety and Health Plan
Electrical Plan and Specification
Clearances (locational, homeowners,
barangay, MMDA, etc.)
Fire safety requirements
Contractor’s business permit
Sketch/pictures of the business location
3-c. Fire and Safety Inspection Duly accomplished Application Form
Certification Building plans
Building permit
Barangay Business Clearance
Fire insurance coverage
Compliance with requirements and
recommendations from fire safety
inspectors
3-d. Health and Sanitary Permit Barangay Clearance
Inspection of said establishment
Payment of sanitary permit and sanitary
inspection fees
Medical Certificate/Health Card issued
by the City Health Officer or duly
authorized representative
3-e. Certificate of Occupancy Sketch/pictures of the business location
Fire Inspection Certificate
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 69

3-f. Locational Clearance Order of Payment

Contract of Lease (notarized)
Certificate of Occupancy (Building and
Unit)
Sketch/pictures of the business location
Building Permit
Authorization from the owner (if rented)
3. Obtain Business Permit from the Barangay Clearance
Mayor’s Office Sanitary Permit
Fire Safety Inspection Certificate
Building Inspection Certificate
Electrical Inspection Certificate
Contract of Lease
Certificate of SEC Registration
Public Liability Insurance (for
Restaurants, Cinemas, Malls, etc.)
Occupancy Certificate
Article of Partnership
Authorization Letter of owner with ID
Sketch of Business Site
SSS (Certificate/Clearance)
CTC (Community Tax Certificate-
CEDULA)
Business Permit Application Form
4. Register with the Social Security SSS Form R-1 (Employer Registration)
System (SSS) R-1 A (Employment Report)
Submission of Photocopy of the Articles
of Partnerships
Application for registration for
Partnerships
Payment from the (BIR Form No. 0605)
SEC Certificate for Partnerships
Documentary Stamp Tax Return
Business Permit Application
Business Location Sketch or Map
5. Register the business at the Bureau Certificate of Registration from SEC
Internal Revenue (BIR) Barangay Clearance
Mayor’s Business Permit
Proof of Address such as Contract of
Least or Certificate of Land Title
Valid IDs
BIR Form 1903 (Application Form for
Partnership and Corporation)
BIR Form 2000 (Documentary Stamp
Tax on Lease)
BIR Form 0605 (Payment Form)
6. Register with Philippine Health Employer Data Record (Form ER1)
Insurance Company (PHIC) or Report of Employee Members (Form
PhilHealth ER2)
SEC Registration
BIR Registration
Copy of Business Permit
7. Register with Home Development Employer’s Data Form (EDF [FPF040])
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 70

Mutual Fund (HDMF) or the Pag-IBIG Specimen Signature Form (SSF

Fund [FPF170])
Copy of SEC Certificate of Partnership
and Approved Articles of Partnership
SSS Certificate (if already registered)
and Business/Mayor’s Permit
8. Register with the Department of Labor Application form
and Employment (if a business has 5 A Certified True Copy of a Certificate of
or more employees) Registration of the business from SEC
A Certified True Copy of Business
Permits
Lease Contract
Photo of the office building and
premises where it holds office
9. Intellectual Property Office of the Trademark Application Form
Philippines (IPOPHL) Copy of the Mark
Goods and Services covered by the
application
Table 4.4 Steps and Requirements for Business Registration

PARTNERSHIP REGISTRATION COST

Type Requirements Costs Completion Total
Date Cost
Securities and -Business Name Registration (₱100) 15 days ₱ 5,220
Exchange -Documentary Stamp Tax (₱30)
Commission -Articles of Partnership (₱5,040)
-Legal Research Fee (₱20)
-Transaction Fee (₱30)
Notarial Fees -Notarized Articles of Partnership 1 day 1,000
(₱500)
-Notarized Contract of Lease (₱500)
Barangay -Barangay Permit (₱600) 1 day 705
Clearance -Community Tax Certificate or Cedula
(₱105)
Business -Health Clearance (₱100) 1 to 2 10,300
Permits -Sanitary Permit (₱100) weeks
-Locational Permit (₱1,440)
-Certificate of Occupancy (₱1,200)
-Engineering Permit (₱960)
-Environmental Permit (₱3,000)
-Fire Permit (₱500)
-Mayor’s Permit (₱3,000)
Bureau of -Registration Fee (₱500) 3-4 days 530
Internal -Loose Documentary Stamp Tax (₱30)
Revenue
Social Security -SSS Form R-1 (Employer Registration) 1 week No
System -R-1 A (Employment Report) Charge
-Submission of Photocopy of the
Articles of Partnerships
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 71

-Application for registration for

Partnerships
-Payment from the (BIR Form No. 0605)
-SEC Certificate for Partnerships
-Documentary Stamp Tax Return
-Business Permit Application
-Business Location Sketch or Map
Philippine -Employer Data Record (Form ER1) 1 day No
Health -Report of Employee Members Charge
Insurance (Form ER2)
Corporation -SEC Registration
-BIR Registration
Copy of Business Permit
Pag-IBIG Fund -Employer’s Data Form (EDF [FPF040]) 2-3 days 100
-Specimen Signature Form (SSF
[FPF170])
-Copy of SEC Certificate of Partnership
and Approved Articles of Partnership
-SSS Certificate (if already registered)
and Business/Mayor’s Permit
Intellectual -Filing Fee (₱1,200) 3,850
Property Office -Claim of Color (₱280)
of the -Publication (₱900)
Philippines -Issuance of Certificate of Registration
(₱570)
-2nd Publication (₱900)
TOTAL ₱
21,705
Table 4.5 Partnership/Business Registration Cost

Regulations and Environmental Issues

In every business, there should be laws, rules, and regulations that must be

obeyed to ensure the safety of the staff, customers, and even our environment.

 Ecological Solid Waste Management Act of 2000

The Philippine Ecological Solid Waste Management Act, or Republic Act No.

9003, ensures proper segregation, collection, storage, treatment, and disposal of

solid waste through the formulation and adaptation of the best eco-waste products.

In every business, maintaining cleanliness is very important for the name or

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 72

reputation of the business and to avoid conflict with government rules and

regulations about environmental issues. According to the Municipal Ordinance No.

40-2004 or Ecological Solid Waste Management Ordinance in Mariveles which is

related to ecological solid waste management or RA No. 9003, that shall apply to

residential houses, commercial establishments, and industrial establishments. The

Business should maintain cleanliness in every corner of the area, and proper waste

segregation must be observed. A business organization must prepare three trash

bins inside and outside the building. Each trash bin should be labeled as

biodegradable, non-biodegradable, or recyclable for employees and customers.

The collection of the garbage will follow the date and time when the garbage

collector will collect. From Article X, Solid Waste Management Fee Section 21, the

business shall pay $500 yearly for the cost of preparing, adopting, and

implementing Solid Waste Management.

 Municipal Ordinance No. 02-S-93

An ordinance imposing the fire safety inspection clearance fee on business

establishments within the municipality of Mariveles for the insurance or grant of

pertinent permits or licenses to operate pursuant to the provisions of Presidential

Decree No. 1185, otherwise known as the Fire Code of the Philippines and

Regulations. Safe ‘n Sound will comply with the annual fire safety protection fee

every 20 days in January. Any violation will be punished by a fine of P2,500.00, the

closure of the business, or both.

 Municipal Ordinance No. 30-03

Prohibiting minors from purchasing and using, and the business establishments

from selling, tobacco products, intoxicating liquors, or similar products equivalent

thereof, and providing for the imposition of fines and penalties to retailers and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 73

minors for violation thereof, within the Municipality of Mariveles, therefore, Safe ‘n

Sound sells snacks and drinks only. This business is minor-friendly; therefore, no

alcoholic drinks will be sold. Customers are allowed to bring their food and drinks;

however, foods and drinks brought by minors (18 years old and below) will be

inspected and will not be allowed on the premises. Alcoholic drinks are allowed for

adults only.

 Municipal Ordinance No. 69-2009

An ordinance prohibiting all public and private elementary and high school

students to roam and be found in all public places such as parks, amusement

centers, and similar places during regular school hours in the municipality of

Mariveles. Safe ‘n Sound will be open every day in compliance with the Mun. By

Ordinance No. 69-2009, no student is allowed to enter the premises during school

hours from Monday to Friday unless it is a holiday, summer vacation, or other.

Since there is a morning and afternoon schedule of classes in high school, students

from the morning session will be accepted. Safe ‘n Sound will communicate with the

school regarding this, and the students’ school IDs will be inspected before they

can avail themselves of the service. Any students who try to enter the premises will

be brought before the concerned school authority.

 Municipal Ordinance No. 71-2009

Sanitation Code in the Municipality of Mariveles Other than the KTV room that

Safe ‘n Sound will offer, there will also be snacks and drinks; therefore, the

business must ensure a sanitary permit and health certificates from the Municipal

Health Office.

 Municipal Ordinance No. 2017-132; Municipal Ordinance No. 2020-162

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 74

Prohibiting minors (18 years old and below) from roaming in the night from

10:00 p.m. to 4:00 a.m. and from 12:00 a.m. to 4:00 a.m. for 19 years old and

above As to the amendments to the curfew hours, which will be 10:00 p.m. to 5:00

p.m. Safe ‘n Sound will be open from 10:00 a.m. to 10:00 p.m. only, and it will be

implemented that there will be no minors at 8:00 p.m. unless they have their

guardian with them on the premises.

 Municipal Ordinance No. 2020-165

Amending the penalties imposed for commercial establishments under Section

7.3 of Municipal Ordinance No. 2020-161, which is an ordinance mandating the

proper use of facemasks in public places by all persons within the jurisdiction of the

municipality of Mariveles during the enforcement of community quarantine as a

response to the COVID-19 pandemic until it is eliminated. Upon entering the

premises, customers are required to wear face masks. However, they can remove it

inside their designated KTV room.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 75

Recruitment Process

Figure 4.9 Recruitment Processes

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 76

Selection Process
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 77

Figure 4.10 Selection Processes

Pre-Operating Activities and Scheduling

The Gantt Chart below shows the pre-operating activities and scheduling for

the business operation.

Activity 2023 2024

September

November
December

January
October
August
June
April
May

July
Preparation of the Feasibility Study
Sourcing out Capital
Registration of the business
Securing Business permits, licences and other legal requirements
Find Suppliers
Leasehold Improvements
Purchasing of Furniture and Fixtures
Purchasing of Machinery and Equipment
Promotions
Hiring Employees
Employees orientation and training
Purchasing of Raw Materials and Supply
Dry Run of Operations
Start of Operation

Figure 4.11 Pre-Operating Activities and Scheduling

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 5

SOCIO-ECONOMIC ASPECT

This aspect responds to the needs of society, including employees,

customers, and the government, and how the different sectors will benefit from the

result of the business implementation.

Employment and Income

Safe ‘n Sound will provide job opportunities for unemployed citizens of

Mariveles, Bataan. Through the job opening, people can meet their financial needs

and be able to support their families.

Supply of Commodities

Safe ‘n Sound provides an entertainment business to the local setting, which

is not dominant in the Mariveles. There are entertainment businesses, but only a

few are related to karaoke, especially KTVs. The establishment of the business will

reduce the supply shortage for the demand of the business industry, which will

eventually lower the prices of such services.

Contribution to the Government

The government will benefit from the establishment of the business through

business and income taxes that will be enforced in Safe ‘n Sound. Additional to this

payment are the mandatory government contributions of the business in line with

the benefits of its employees.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 79

Contribution to the Economy and Society

Aside from the payment to the government, Safe ‘n Sound will also pay a

variety of municipal taxes and fees in order to operate its business, which will go to

the fund of the municipality of Mariveles for its community programs. Moreover, the

community will not be bothered by the loud sound from the karaoke because of the

soundproof KTV that is provided by the business.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 6

FINANCIAL ASPECT

This chapter focuses on the financial viability of the proposed business in

society. This section deals with the different approaches and methodologies used in

assessing the financial aspect of a project feasibility study. The financial aspect

translates the implications of the market results and technical feasibility. It will

discuss how to analyze the financial results and assess the financial viability of the

proposed business.

PREPARATION OF PROJECTED FINANCIAL STATEMENTS

In this part, the Projected Financial statements of the company will be

discussed, which are the Statement of Comprehensive Income, Statement of

Changes in Equity, Statement of Cash Flows, Statement of Financial Position, and

the Notes to Financial Statements.

Projected Statement of Comprehensive Income

An income statement is one of a company’s financial statements that shows its

profit and loss over a period of time. The profit or loss is determined by taking all

revenues and subtracting all expenses from both operating and non-operating

activities
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 81

SAFE ‘n SOUND
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARS-ENDED DECEMBER 31, 2024-2028
Notes 2024 2025 2026 2027 2028
SERVICE REVENUE
Service Revenue, net of
(13) ₱3,746,842 ₱4,133,899 ₱4,530,508 ₱4,939,828 ₱5,355,543
Amusement Tax
Total Service Revenue ₱3,746,842 ₱4,133,899 ₱4,530,508 ₱4,939,828 ₱5,355,543

Less: OPERATING
EXPENSE
Cost of Snacks and
(14) 872,830 909,946 948,578 988,714 1,030,446
Drinks
Rent Expense (22) 675,000 540,000 540,000 540,000 540,000
Insurance Expense (23) 28,800 28,800 28,800 28,800 28,800
Payroll Expense (15) 1,096,975 1,129,884 1,163,781 1,198,694 1,234,655
SSS Contribution
(16) 90,630 94,050 98,610 101,460 105,450
Expense
PhilHealth Contribution
(16) 44,928 46,276 47,664 49,094 50,567
Expense
Pag-IBIG Contribution
(16) 8,400 8,400 8,400 8,400 8,400
Expense
Depreciation Expense (20) 173,184 173,184 173,184 173,184 173,184
Advertising Expense (24) 29,400 20,664 20,906 21,175 21,445
Utilities Expense (17) 335,295 337,127 342,795 348,470 354,241
Repair and
(19) 100,000 103,000 106,000 109,000 112,000
Maintenance Expense
Office Supplies
(18) 3,162 3,257 3,355 3,455 3,559
Expense
Sanitary and Safety
(18) 11,144 11,452 11,768 12,095 12,431
Supplies Expense
Other Supplies (18) 46,054 47,436 48,859 50,324 51,834
Business Taxes and
(21) 17,855 11,881 13,137 12,605 12,983
Licenses Expenses
Human Resource
(26) 10,000 10,210 10,426 10,649 10,879
Expense
Total Expenses ₱3,543,656 ₱3,475,565 ₱3,566,263 ₱3,656,118 ₱3,750,873
Operating Income
(Loss) Before Income ₱203,186 ₱658,334 ₱964,245 ₱1,283,710 ₱1,604,670
Taxes
Less: Income Tax
60,956 197,500 289,274 385,113 481,401
(30%)
NET INCOME (LOSS) ₱142,231 ₱460,834 ₱674,972 ₱898,597 ₱1,123,269
Table 6.1 Projected Statement of Comprehensive Income
*See Other Supporting Schedules

Projected Statement of Changes in Equity

The statement of changes in equity shows the change in an owner's or

partner's capital throughout an accounting period

SAFE ‘n SOUND
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 82

STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS-ENDED DECEMBER 31, 2024-2028
Notes Beloncio, Bracero, Bustria,
2024 Capital Capital Capital TOTAL
Partner's Beginning Capital ₱650,000 ₱650,000 ₱650,000 ₱1,950,000
Add: Share in Profit (Loss) (11) 41,410 47,410 53,410 142,231
Less: Withdrawal (12) 33,128 37,928 42,728 113,784
Total Ending Balance (10) ₱658,282 ₱659,482 ₱660,682 ₱1,978,446

Beloncio, Bracero, Bustria,

2025 Capital Capital Capital TOTAL
Partner's Beginning Capital ₱658,282 ₱659,482 ₱660,682 ₱1,978,446
Add: Share in Profit (Loss) (11) 147,611 153,611 159,611 460,834
Less: Withdrawal (12) 118,089 122,889 127,689 368,667
Total Ending Balance (10) ₱687,804 ₱690,204 ₱692,604 ₱2,070,613

Beloncio, Bracero, Bustria,

2026 Capital Capital Capital TOTAL
Partner's Beginning Capital ₱687,804 ₱690,204 ₱692,604 ₱2,070,613
Add: Share in Profit (Loss) (11) 218,991 224,991 230,991 674,972
Less: Withdrawal (12) 175,192 179,992 184,792 539,977
Total Ending Balance (10) ₱731,602 ₱735,202 ₱738,802 ₱2,205,607

Beloncio, Bracero, Bustria,

2027 Capital Capital Capital TOTAL
Partner's Beginning Capital ₱731,602 ₱735,202 ₱738,802 ₱2,205,607
Add: Share in Profit (Loss) (11) 293,532 299,532 305,532 898,597
Less: Withdrawal (12) 234,826 239,626 244,426 718,877
Total Ending Balance (10) ₱790,309 ₱795,109 ₱799,909 ₱2,385,327

Beloncio, Bracero, Bustria,

2028 Capital Capital Capital TOTAL
Partner's Beginning Capital ₱790,309 ₱795,109 ₱799,909 ₱2,385,327
Add: Share in Profit (Loss) (11) 368,423 374,423 380,423 1,123,269
Less: Withdrawal (12) 294,738 299,538 304,338 898,615
Total Ending Balance (10) ₱863,993 ₱869,993 ₱875,993 ₱2,609,980
Table 6.2 Projected Statement of Changes in Equity

*See Other Supporting Schedules (Table 6.49 Profit Distribution Schedule)

Projected Statement of Financial Position

The financial position is the current balance of the recorded assets, liabilities,

and equity of an organization. This information is recorded in the balance sheet,

which is one of the financial statements.

SAFE ‘n SOUND
STATEMENT OF FINANCIAL POSITION
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 83

AS OF DECEMBER 31, 2024-2028

Notes 2024 2025 2026 2027 2028
ASSETS
Current Assets
Cash (4) ₱543,743 ₱845,440 ₱1,177,845 ₱1,558,479 ₱1,983,779
Inventories (5) 2,670 2,987 4,445 3,256 2,651
Prepaid Expense (6) 97,200 97,200 97,200 97,200 97,200
Total Current Assets ₱643,613 ₱945,627 ₱1,279,490 ₱1,658,936 ₱2,083,629
Non-Current Assets
Property, Plant, and
(7) 1,486,701 1,313,518 1,140,334 967,151 793,967
Equipment
Intangible Assets (8) 3,850 3,850 3,850 3,850 3,850
Total Non-Current Assets ₱1,490,551 ₱1,317,368 ₱1,144,184 ₱971,001 ₱797,817
TOTAL ASSETS ₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446

LIABILITIES and EQUITY

Current Liabilities
Trade and Other Payables (9) ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466
Total Liabilities ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466

Equity
Beloncio, Capital ₱658,282 ₱687,804 ₱731,602 ₱790,309 ₱863,993
Bracero, Capital 659,482 690,204 735,202 795,109 869,993
Bustria, Capital 660,682 692,604 738,802 799,909 875,993
Total Equity (10) ₱1,978,446 ₱2,070,613 ₱2,205,607 ₱2,385,327 ₱2,609,980
TOTAL LIABILITIES AND
₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446
EQUITY

Table 6.3 Projected Statement of Financial Position

*See Other Supporting Schedules

Projected Statement of Cash Flows

A cash flow statement is a financial statement that provides aggregate data

regarding all cash inflows a company receives from its ongoing operations and

external investment sources. It also includes all the cash outflows that pay for

business activities and investments during a given period.

Note: Business Taxes and Licenses Payment includes the Amusement Tax Paid
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 84

SAFE ‘n SOUND
STATEMENT OF CASH FLOW
FOR THE YEARS-ENDED DECEMBER 31, 2024-2028
Notes 2024 2025 2026 2027 2028
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from ₱4,569,32 ₱5,041,34 ₱5,525,01
(13) ₱6,024,180 ₱6,531,150
service collection 0 0 0
Cash payments for:
Purchases of Snacks
(27) 875,500 910,263 950,036 987,525 1,029,841
and Drinks
SSS Contribution (9,16) 122,430 138,180 144,760 149,170 154,910
PhilHealth
(9,16) 82,368 92,327 95,097 97,950 100,888
Contribution
Pag-IBIG Contribution (9,16) 15,400 16,800 16,800 16,800 16,800
Payroll (9,15) 952,901 1,029,224 1,059,529 1,091,618 1,124,170
Advertising (24) 29,400 20,664 20,906 21,175 21,445
Utilities (9,17) 307,649 336,678 342,323 347,997 353,760
Rent (9,22) 630,000 540,000 540,000 540,000 540,000
Insurance (23) 28,800 28,800 28,800 28,800 28,800
Repair and
(19) 100,000 103,000 106,000 109,000 112,000
Maintenance
Office Supplies (18) 3,162 3,257 3,355 3,455 3,559
Sanitary and Safety
(18) 11,144 11,452 11,768 12,095 12,431
Supplies
Other Supplies (18) 46,054 47,436 48,859 50,324 51,834
Business Taxes and
(13,21) 840,333 919,322 1,007,639 1,096,957 1,188,590
Licenses
Income Tax (9,25) 45,717 163,364 266,330 361,153 457,329
Prepaid Expenses (8) 97,200 - - - -
Human Resource (26) 10,000 10,210 10,426 10,649 10,879
Expense
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES ₱371,263 ₱670,364 ₱872,382 ₱1,099,512 ₱1,323,914

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts ₱- ₱- ₱- ₱- ₱-
Cash payments for
Property, Plant, and
(7) 1,659,885 - - - -
Equipment
Intangible Assets (8) 3,850 - - - -
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 85

NET CASH PROVIDED (USED) -

BY INVESTING ACTIVITIES ₱1,663,73 ₱- ₱- ₱- ₱-
5
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from ₱1,950,00
₱0 ₱0 ₱0 ₱0
partners' investments 0
Cash payments for
(12) 113,784 368,667 539,977 718,877 898,615
partners' drawings
NET CASH PROVIDED (USED) ₱1,836,21
-₱368,667 -₱539,977 -₱718,877 -₱898,615
BY FINANCING ACTIVITIES 6

Net Changes in Cash ₱543,743 ₱301,697 ₱332,404 ₱380,635 ₱425,299

during the year
Add: Beginning Cash - 543,743 845,440 1,177,845 1,558,479
balance
TOTAL (Cash, (4) ₱543,743 ₱845,440 ₱1,177,845 ₱1,558,479 ₱1,983,779
ending)
Table 6.4 Projected Statement of Cash Flows

SAFE ‘n SOUND
NOTES TO FINANCIAL STATEMENTS

1. General Information

The Safe ‘n Sound was registered as a General Partnership on August 30,

2023. The partnership’s registered address is at Jose Sarreal, Brgy. Poblacion,

Mariveles, Bataan. The business will start its operation on January 1, 2024 and will

operate in a calendar year basis. It will be open every day from 10am to 10pm,

except Holy Week.

2. Basis of Preparation and Summary of Significant Accounting Policies

Statement of Compliance

The following applicable Philippine Financial Reporting Standards (including

new and amendments to the standards) were adopted by the business:

PFRS 7 Financial Instrument Disclosure

PAS 1 Presentation of Financial Statements
PAS 7 Statement of Cash Flows
PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
PAS 16 Property, Plant and Equipment
PAS 18 Revenue
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 86

 PFRS 7, “Financial Instrument Disclosure”, prescribes disclosure that enables

financial statement users to evaluate the significance of financial instruments to

the entity, the nature and extent of their risks, and how the entity manages

those risks

 PAS 1, “Presentation of Financial Statements”, sets out the overall framework

for presenting general-purpose financial statements, including guidelines for

their structure and the minimum content.

 PAS 7, “Statement of Cash Flows”, requires the presentation of information

about the historical changes in the entity’s cash and cash equivalents by means

of a statement of cash flows that classifies cash flows during the period

according to operating, investing, and financing activities.

 PAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”,

prescribes the criteria for selecting and changing accounting policies, together

with the accounting treatment and disclosure of changes in accounting policies,

changes in estimates, and errors.

 PAS 16, “Property, Plant and Equipment”, prescribes the principles for the initial

recognition and subsequent accounting for property, plant and equipment.

 PAS 18, “Revenue”, prescribes the accounting treatment for revenue arising

from the sale of goods and rendering of services.

Basis of Preparation

All items are recognized as Assets, Liabilities, Equity, Income, or Expenses

when the definition and recognition criteria of elements of Financial Statements are

met. Historical cost basis has been used in the preparation of the Financial

Statements of the business. Historical cost is based on the fair value of

consideration in exchange of an assets. In the presentation of the Financial

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 87

Statements, the business follows the accrual basis of accounting except for the

presentation of statement of cash flow. Generally, machinery and equipment and

furniture and fixtures of the business are capitalizable except fixtures that are

expected to be replaced within a year or two (2) which will be expensed outright.

Functional and Presentation Currency

The financial statements of the business are presented in the Philippine Peso.

CHART OF ACCOUNTS

Account Account
Number Account Name Number Account Name

ASSETS EQUITY
1010 Cash on Hand 3010 Beloncio, Capital
1020 Cash in Bank 3020 Bracero, Capital
1030 Inventories 3030 Bustria, Capital
1040 Office Supplies 3040 Beloncio, Withdrawals
1050 Sanitary and Safety 3050 Bracero, Withdrawals
Supplies
1060 Other Supplies 3060 Bustria, Withdrawals
1070 Prepaid Rent 3070 Income Summary
1080 Prepaid Insurance
INCOME
1090 Machineries and 4010 Service Revenue
Equipment
1095 Accumulated
Depreciation – EXPENSES
Machineries and
Equipment
1100 Furniture and Fixtures 5010 Cost of Snacks and
Drinks
1105 Accumulated
Depreciation – Furniture 5020 Utilities Expense
and Fixtures
1200 Leasehold Improvement 5030 Marketing and
Advertising Expense
1205 Accumulated
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 88

Depreciation – Leasehold 5040 Rent Expense

Improvement
1300 Intangible Assets 5050 Payroll Expense
LIABILITIES 5060 Repairs and
Maintenance Expense
2010 Accrued Payroll 5070 Property Insurance
Expense
2020 Rent Payable 5080 SSS Contribution
Expense
2030 Utilities Payable 5090 Pag-IBIG Contribution
Expense
2040 Due to SSS 5100 Philhealth Contribution
Expense
2050 Due to Pag-IBIG 5110 Depreciation Expense
2060 Due to Philhealth Office Supplies Expense
2070 Income Tax Payable 5130 5120
5140 Other Supplies Expense
5150 Business Permits and
Licenses Expense
5170 Income Tax Expense
Table 6.5 Chart of Accounts

ASSETS

Cash

Cash includes cash on hand and cash in banks. At the end of the reporting

period, only ₱10,000 will remain as Cash on hand for the business. The other cash

will be deposited in the bank. Cash in the bank is a deposit held at the bank. Cash

is recorded at its Face Value and will be used for all the cash disbursements of the

business operations. All revenues will be received in cash.

Inventories

Inventories are assets held for sale in the ordinary course of business. The

Inventory is recognized at cost, and the First-In, First-Out (FIFO) method will be

used for its valuation. The business will secure a safety stock in case there is a

delay in supplies, so as not to interrupt the business operation.

Supplies
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 89

These are composed of office supplies, sanitary and safety supplies, and

other supplies. These are recognized as assets when the criteria for assets are

met. It is assumed that supplies will be fully consumed for the whole year.

Prepaid Expenses

The prepaid expenses are composed of prepaid rent and prepaid insurance.

Prepaid rent refers to the advance payment to the lessor. This accounts for the one-

month advance and deposit for the rent. The lease term would be 10 years, starting

in October 2023. The prepaid insurance of the business is for property insurance,

which accounts for 3-month insurance paid in advance.

Property and Equipment

Property and equipment are initially recognized at their historical cost.

Historical cost includes expenditure that is directly attributable to bringing the asset

to the location and condition necessary for it to be capable of operating in the

manner intended by the management. Leasehold improvements will be depreciated

over the term of the lease contract, which is 15 years. All property and equipment

are assumed to have no residual value. Estimated useful lives and depreciation

methods are reviewed and adjusted prospectively if appropriate if there is an

indication of a significant change since the last reporting date. For financial

reporting purposes, depreciation is computed using the straight-line method over

the estimated useful lives of the depreciable assets as follows:

Machineries and Equipment Useful Life Furniture and Fixtures Useful Life
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 90

Desktop Computer 6 years File Cabinet 15 years

Printer 5 years Food Storage 7 years
Air conditioner 15 years Office Tables 15 years
Refrigerator 10 years Tables 10 years
Water dispenser 6 years Chairs 10 years
Electric fan 6 years Reception desk 15 years
Karaoke set 8 years Sofa 10 years
KTV monitor 8 years Leasehold
Vacuum Cleaner 6 years Improvement 10 years
CCTV 5 years

Intangible Asset

The only intangible asset of the business is the trademark, which has an

indefinite life; therefore, it is not subject to amortization but subject to impairment

and must be tested at least annually or when circumstances arise.

LIABILITIES

Trade and Other Payables

The liability of the business is composed of Trade and Other Payables only,

which consist of Accrued Payroll and rent payable. Utilities payable Due to

Government Mandatory Contributions and Income Tax payable.

 The mandatory government contributions made to accounts such as SSS,

PhilHealth, and Pag-IBIG for the month of December will be reflected as

payables in the Balance Sheet. These amounts are due in January of the

following year.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 91

 The accrual of the utilities, rent, and payroll for December will be reported as

payables in the year-end Balance Sheet. These will be paid in the next

accounting period.

 Income Tax Payable is for the accumulation of the unremitted percentage to

BIR, which will be paid in the next period. Safe ‘n Sound will file and pay its

quarterly income tax; therefore, the income tax due for the last quarter will

be paid next accounting period, which is April 15.

EQUITY

Partners’ Equity

The equity of the business is composed of the total partners’ equity, which

comprises capital and withdrawals.

 The primary source of funds for Safe ‘n Sound comes from the personal

investments of the proponents of the business. With a Total Initial

Investment of ₱1,950,000, the amount of initial capital that will be

contributed by each capitalist partner will be ₱650,000.

 When it comes to the distribution of profits, the three industrial partners will

receive annual salaries aside from their share of profits. For the general

manager, she will receive ₱144,000. For the assistant manager, ₱126,000.

For the bookkeeper, ₱132,000. These amounts will be fixed as for the

salaries of the partners, and the remaining net income after deducting the

annual salaries of the partners will be equally divided among them.

 Withdrawal amounts of 80% of the partner’s share in profit in the event of a

loss, there will be no withdrawal.

REVENUE RECOGNITION
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 92

Revenue is recognized to the extent that it can be reliably measured, it is

probable that economic benefits will flow to the business. Revenue is recognized on

a modified accrual basis. Revenue is recognized when earned and actually

collected. The total gross revenue will be determined by multiplying the number of

demands for each product or service by their respective prices.

KTV Room Pricing

Room KTV Room KTV Room with Extension
Alone Snacks and Drinks
Duo (1-2 person) ₱ 150.00 for ₱230.00 for 2 hours ₱ 50.00 per hour
2 hours
Mini (3-5 person) ₱250.00 for ₱ 400.00 for 2 hours ₱ 100.00 per
2 hours hour
Standard (5-10 ₱ 400.00 for ₱ 650.00 for 2 hours ₱ 150.00 per
person) 2 hours hour
Grande (for ₱ 1,200.00 N/A ₱500.00 per
special occasion) for 3 hours hour

 KTV Pricing

 Sales are expected to be 100% in cash.

 The selling price for KTV Room Alone will increase annually by ₱20.00 for

Duo and Mini, 50.00 for Standard, and ₱100.00 for Grande. The selling price

for KTV with Snacks and Drinks will annually increase by ₱20.00 for Duo,

₱50.00 for Mini, and ₱50.00 for Standard.

EXPENSE RECOGNITION

Expenses are recognized in the statement of comprehensive income when a

decrease in future economic benefit related to a decrease in an asset or an

increase in a liability has arisen that can be measured reliably. Expenses are

recognized on the basis of direct association between the costs incurred and the

earning of specific items of income; on the basis of systematic and rational

allocation procedures when economic benefits are expected to arise over several
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 93

accounting periods and the association with income can only be broadly or

indirectly determined; or immediately when an expenditure produces no future

economic benefits; and on an accrual basis.

Expenses in the statement of comprehensive income are presented using the

nature of expense method.

Cost of Snacks and Drinks

The cost of Snacks and Drinks is the cost of the foods to be catered for in

KTV rooms with Snacks and Drinks. The business used the FIFO Method.

Employees’ Compensation and Other Benefits

Payroll Expense

The payroll expense is composed of the annual salaries of the employees

and their 13th month's pay. The salaries of the employees will be given twice a

month, on the 10th and 25th of the month. The payment is on a cash basis. Days of

work from the 1st to the 15th of the next month will be received on the 25th, while

working days from the 16th to the 30th or 31st will be paid on the 10th of the next

month. Employees also receive Night differential pay, which is 10% of their regular

hourly rate.

Short-term Benefits

The business recognizes a liability net of amounts already paid and an

expense for services rendered by employees during the accounting period. Short-

term benefits given by the business to its employees include salaries and wages

and a contribution to their SSS, PhilHealth, and Pag-IBIG.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 94

Utilities Expense

Utilities expenses incurred for electricity, water, and internet for the period

The electricity and water expenses will use the annual population growth rate for

projecting the kilowatts per hour (kwh) consumption and the cubic meter

consumption of water. The annual inflation rate will be used to compute the cost per

kwh, cubic meter, and internet service for the succeeding years.

Marketing and Advertising expenses

Expenses incurred for marketing and advertising the business The marketing

and advertisement expense for the operation is the cost of the tarpaulin. The cost of

these expenses will increase in the succeeding years due to the inflation rate. The

business will also hold a promo wherein the first 2 customer to score a perfect 100

in the KTV will be awarded with a Safe ‘n Sound T-shirt and a cash prize.

Rent Expense

Rent expense is the cost of rent incurred during the period. For the total start-

up cost, the company plans to start renting a commercial space in Mariveles,

Bataan, and has entered into a 15-year lease that is renewable. There will be an

advance and deposit payment of ₱90,000 for the rent. A monthly rent expense is

$45,000 fixed.

Property Insurance Expense

Insurance Expense is the cost of insurance incurred during the period.

Monthly Insurance expense is set to be fixed amounting to ₱2,400.

Repairs and Maintenance expenses

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 95

Repairs and Maintenance Expenses incurred for repairing and maintaining

the machinery and equipment, furniture and fixtures, and leasehold improvements

The repair and maintenance expenses to be paid annually are ₱50,000 for the KTV

set, ₱30,000 for other equipment, and 20,000 for furniture and fixtures, respectively.

These expenses subsequently increase by ₱500 due to the inflation rate.

Depreciation Expense

Using the Straight-Line method, Expenses incurred for depreciating

equipment, furniture, fixtures, and leasehold improvements are recognized.

Supplies Expense

Supplies expenses for Office, safety, and sanitation, as well as other supplies

were expensed immediately. The cost of the annual acquisition of these supplies

will increase due to inflation.

Business and License Expense

Payments made for the license and permit of the business The cost of the

business and license annually is expected to increase due to the inflation rate.

Income Tax Expense

The business recognizes an income tax expense of 30% of the operating

income based on the Corporate Income Tax Rate. In case of Operating Loss, it will

not be subjected to Income Tax and will be carryover against the Operating Income

for the next 3 years to get the Taxable Net Income of the business.

GROWTH RATES

1. Projected Inflation Rates

Inflation Rate
2024 3.00%
2025 3.00%
2026 3.00%
2027 3.00%
2028 3.00%
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 96

Table 6.6 Projected Inflation Rate

*Source: Monetary Board of the BSP

2. Population Growth Rates

Year Rates
2024 1.56%
2025 1.53%
2026 1.59%
2027 1.56%
2028 1.56%

Table 6.7 Projected Annual Population Growth Rate

*Source: Mariveles Planning and Development Office

3. Summary of Critical Estimates and Judgment

In the preparation of the business Financial Statements, management has made

its best estimates and judgments on some amounts in consideration of their

materiality.

 Estimating the useful lives of Property, plants, and Equipment

 Impairment of Property, plants, and Equipment, as well as Intangible Assets

4. Cash and Cash Equivalents

Cash and Cash Equivalents

5. 2024 2025 2026 2027 2028
Cash on Hand ₱10,000 ₱10,000 ₱10,000 ₱10,000 ₱10,000
Cash in Bank 533,743 835,440 1,167,845 1,548,479 1,973,779
Total ₱543,743 ₱845,440 ₱1,177,845 ₱1,558,479 ₱1,983,779
Inventories

Inventories
2024 2025 2026 2027 2028
CHIPS ₱1,085 ₱216 ₱928 ₱650 ₱906
SODA (750mL) 500 1,004 1,512 656 563
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 97

SODA (1.5L) 1,085 1,766 2,005 1,951 1,182

Total ₱2,670 ₱2,987 ₱4,445 ₱3,256 ₱2,651

*See Other Supporting Schedules

Prepaid Expense
2024 2025 2026 2027 2028
Rent ₱90,000 ₱90,000 ₱90,000 ₱90,000 ₱90,000
Insurance 7,200 7,200 7,200 7,200 7,200
Total ₱97,200 ₱97,200 ₱97,200 ₱97,200 ₱97,200
6. Prepaid Expenses

7. Property, Plant, and Equipment

Plant, Property and Equipment

2024 2025 2026 2027 2028
PPE ₱1,659,885 ₱1,659,885 ₱1,659,885 ₱1,659,885 ₱1,659,885
Accumulated
-173,184 -346,367 -519,551 -692,734 -865,918
Depreciation
Total ₱1,486,701 ₱1,313,518 ₱1,140,334 ₱967,151 ₱793,967

Intangible Assets
2024 2025 2026 2027 2028
Intangible Asset- ₱
Trademark ₱3,850 ₱3,850 3,850 ₱3,850 ₱3,850
8. Intangible Assets

*See Other Supporting Schedules

Trade and Other Payables

2024 2025 2026 2027 2028
Accrued Payroll ₱47,816 ₱49,251 ₱50,728 ₱52,250 ₱53,818
Rent Payable 45,000 45,000 45,000 45,000 45,000
Utilities Payable 27,645 28,094 28,566 29,039 29,520
Due to Government 20,018 20,663 21,454 22,042 22,778
Mandatory Contribution
Due to BIR 15,239 49,375 72,318 96,278 120,350
Total ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 98

9. Trade and Other Payables

*See Other Supporting Schedules

10. Partners’ Equity

Partners' Equity
2024 2025 2026 2027 2028
Beloncio, Capital ₱658,282 ₱687,804 ₱731,602 ₱790,309 ₱863,993
Bracero, Capital 659,482 690,204 735,202 795,109 869,993
Bustria, Capital 660,682 692,604 738,802 799,909 875,993
Total ₱1,978,446 ₱2,070,613 ₱2,205,607 ₱2,385,327 ₱2,609,980

11. Share in Profits (Losses)

Share in Profits (Losses)

2024 2025 2026 2027 2028
Beloncio, Capital ₱41,410 ₱147,611 ₱218,991 ₱293,532 ₱368,423
Bracero, Capital 47,410 153,611 224,991 299,532 374,423
Bustria, Capital 53,410 159,611 230,991 305,532 380,423
Total ₱142,231 ₱460,834 ₱674,972 ₱898,597 ₱1,123,269

12. Withdrawals

Withdrawals
2024 2025 2026 2027 2028
Beloncio, Capital ₱33,128 ₱118,089 ₱175,192 ₱234,826 ₱294,738
Bracero, Capital 37,928 122,889 179,992 239,626 299,538
Bustria, Capital 42,728 127,689 184,792 244,426 304,338
Total ₱113,784 ₱368,667 ₱539,977 ₱718,877 ₱898,615

*See Other Supporting Schedules

13. Service Revenue

Service Revenue
2024 2025 2026 2027 2028
Service Revenue ₱4,569,320 ₱5,041,340 ₱5,525,010 ₱6,024,180 ₱6,531,150
Less: Amusement
Tax 822,478 907,441 994,502 1,084,352 1,175,607
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 99

Total ₱3,746,842 ₱4,133,899 ₱4,530,508 ₱4,939,828 ₱5,355,543

*See Other Supporting Schedules

14. Costs of Snacks and Drinks

Costs of Snacks and Drinks

2024 2025 2026 2027 2028
CHIPS ₱597,415 ₱622,731 ₱649,089 ₱676,458 ₱704,875
SODA (750mL) 77,000 80,608 84,364 88,274 92,385
SODA (1.5L) 198,415 206,606 215,124 223,982 233,186
Total ₱872,830 ₱909,946 ₱948,578 ₱988,714 ₱1,030,446

*See Other Supporting Schedules

15. Payroll Expense

Payroll Expense
2024 2025 2026 2027 2028
Karaoke Technician ₱162,254 ₱12,319 ₱172,135 ₱177,299 ₱182,618
Receptionist 320,980 330,609 340,527 350,743 361,266
Janitor/Janitress 296,289 305,178 314,333 323,763 333,476
Security Personnel 317,453 326,976 336,785 346,889 357,296
Total ₱1,096,975 ₱975,082 ₱1,163,781 ₱1,198,694 ₱1,234,655

*See Other Supporting Schedules

16. Government Mandatory Contribution

Government Mandatary Contribution

2024 2025 2026 2027 2028
Due to SSS ₱90,630 ₱94,050 ₱98,610 ₱101,460 ₱105,450
Due to PhilHealth 44,928 46,276 47,664 49,094 50,567
Due to Pag-IBIG 8,400 8,400 8,400 8,400 8,400
Total ₱143,958 ₱148,726 ₱154,674 ₱158,954 ₱164,417

*See Other Supporting Schedules

17. Utilities Expense

Utilities Expense
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 100

2024 2025 2026 2027 2028

Electricity ₱314,838 ₱318,132 ₱323,191 ₱328,232 ₱333,353
Water 2,756 2,308 2,418 2,535 2,655
Internet Service 17,700 16,686 17,187 17,702 18,233
Total ₱335,295 ₱337,127 ₱342,795 ₱348,470 ₱354,241

*See Other Supporting Schedules

18. Supplies Expense

Supplies Expense
2024 2025 2026 2027 2028
Office Supplies ₱3,162 ₱3,257 ₱3,355 ₱3,455 ₱3,559
Sanitary and Safe Supplies 11,144 11,452 11,768 12,095 12,431
Other Supplies 46,054 47,436 48,859 50,324 51,834
Total ₱60,360 ₱62,144 ₱63,982 ₱65,874 ₱67,824

*See Other Supporting Schedules

19. Repair and Maintenance Expense

Repairs and Maintenance

2024 2025 2026 2027 2028
KTV set ₱50,000 ₱51,000 ₱52,000 ₱53,000 ₱54,000
Other Equipment 30,000 ₱31,000 ₱32,000 ₱33,000 ₱34,000
Furniture and 20,000 ₱21,000 ₱22,000 ₱23,000 ₱24,000
Fixtures
Total ₱100,000 ₱103,000 ₱106,000 ₱109,000 ₱112,000

*See Other Supporting Schedules

20. Depreciation Expense

Depreciation Expense
2024 2025 2026 2027 2028
₱173,184 ₱173,184 ₱173,184 ₱173,184 ₱173,184

The business uses the Straight -Line Method to measure the depreciation

expense for each of the machinery and equipment and furniture and fixtures.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 101

*See Other Supporting Schedules

21. Business and License Permits Expense

Business License and Permits

2024 2025 2026 2027 2028
₱17,855 ₱11,881 ₱13,137 ₱12,605 ₱12,983

22. Rent Expense

Rent Expense
2024 2025 2026 2027 2028
₱675,000 ₱540,000 ₱540,000 ₱540,000 ₱540,000

23. Property Insurance Expense

Insurance Expense
2024 2025 2026 2027 2028
₱28,800 ₱28,800 ₱28,800 ₱28,800 ₱28,800

24. Advertising Expense

Advertising Expense

2024 2025 2026 2027 2028

₱29,400 ₱20,664 ₱20,906 ₱21,175 ₱21,445

25. Income Tax Expense

Income Tax Expense
2024 2025 2026 2027 2028
₱60,956 ₱197,500 ₱289,274 ₱385,113 ₱481,401

26. Human Resource Expenses

Human Resource Expenses
2024 2025 2026 2027 2028
₱ 10,000 ₱ 10,210 ₱ 10,426 ₱10,649 ₱10,879
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 102

27. Net Purchases of Snacks and Drinks

Net Purchase of Snacks and Drinks
2024 2025 2026 2027 2028
Chips ₱598,500 ₱621,863 ₱649,801 ₱676,179 ₱705,131
Soda (750ml) 77,500 81,113 84,872 87,418 92,292
Soda (1.5L) 199,500 207,288 215,363 223,927 232,418
TOTAL ₱875,500 ₱910,263 ₱950,036 ₱987,525 ₱1,029,841

OTHER SUPPORTING SCHEDULES

SALES
Product 2024 2025 2026 2027 2028
1 ₱43,900 ₱52,100 ₱60,760 ₱70,290 ₱80,090
Duo 2 100,270 114,100 129,140 144,770 161,240
1 56,150 61,340 66,360 71,770 76,970
Mini 2 1,224,400 1,391,050 1,560,200 1,733,200 1,909,100
1 15,050 16,650 18,250 20,400 22,050
Standard 2 1,915,450 2,071,100 2,229,000 2,390,750 2,554,500
Grande 1 1,214,100 1,335,000 1,461,300 1,593,000 1,727,200
TOTAL ₱4,569,320 ₱5,041,340 ₱5,525,010 ₱6,024,180 ₱6,531,150
Table 6.8 Sales Schedule 1

*1 = KTV Room Alone

*2 = KTV Room with Snacks and Drinks

PROJECTED SALES FOR DUO KTV ROOM ALONE (40%)

Year 2024 2025 2026 2027 2028
Unit Sale 286 300 314 329 343
30 mins to 2 ₱150 ₱170 ₱190 ₱210 ₱230
hours 93% 41,400 49,130 57,570 66,570 76,130
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 103

200 220 240 260 280

3 hours
0% - - - - -
250 270 290 310 330
4 hours
7% 2,500 2,970 3,190 3,720 3,960
300 320 340 360 380
5 hours
0% - - - - -
TOTAL SALES ₱43,900 ₱52,100 ₱60,760 ₱70,290 ₱80,090
Table 6.9 Sales Schedule 2

PROJECTED SALES FOR DUO KTV ROOM With Snacks and Drinks (60%)
Year 2024 2025 2026 2027 2028
Unit Sale 429 450 472 493 514
30 mins to 2 93% ₱230 ₱250 ₱270 ₱290 ₱310
hours
94,990 108,500 122,850 137,750 153,450
3 hours 0% 280 300 320 340 360
- - - - -
4 hours 7% 330 350 370 390 410
5,280 5,600 6,290 7,020 7,790
5 hours 0% 380 400 420 440 460
- - - - -
TOTAL SALES ₱100,270 ₱114,100 ₱129,140 ₱144,770 ₱161,240
Table 6.10 Sales Schedule 3

PROJECTED UNIT SALES FOR MINI KTV ROOM ALONE (6.78%)

Year 2024 2025 2026 2027 2028
Unit Sale 219 222 224 227 229
30 mins to 2 92.5% ₱250 ₱270 ₱290 ₱310 ₱330
hours
52,000 56,970 61,770 66,960 71,940
3 hours 6.0% 350 370 390 410 430
3,150 3,330 3,510 3,690 3,870
4 hours 0.5% 450 470 490 510 530
450 470 490 510 530
5 hours 1.0% 550 570 590 610 630
550 570 590 610 630
TOTAL SALES ₱56,150 ₱61,340 ₱66,360 ₱71,770 ₱76,970
Table 6.11 Sales Schedule 4

PROJECTED UNIT SALES FOR MINI KTV ROOM With Snacks and Drinks (93.22%)
Year 2024 2025 2026 2027 2028
Unit Sale 3,017 3,051 3,084 3,118 3,151
30 mins to 92.5% ₱400 ₱450 ₱500 ₱550 ₱600
2 hours
1,149,200 1,306,800 1,468,000 1,632,950 1,800,000
3 hours 6.0% 500 550 600 650 700
62,000 69,300 76,200 83,200 91,000
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 104

4 hours 0.5% 600 650 700 750 800

4,800 5,200 5,600 6,000 6,400
5 hours 1.0% 700 750 800 850 900
8,400 9,750 10,400 11,050 11,700
TOTAL SALES ₱1,224,400 ₱1,391,050 ₱1,560,200 ₱1,733,200 ₱1,909,100
Table 6.12 Sales Schedule 5

PROJECTED UNIT SALES FOR STANDARD KTV ROOM ALONE (1.19%)

Year 2024 2025 2026 2027 2028
Unit Sale 32 32 33 33 33
30 mins to 55% ₱400 ₱450 ₱500 ₱550 ₱600
2 hours
8,800 9,900 11,000 12,650 13,800
3 hours 26% 550 600 650 700 750
3,850 4,200 4,550 4,900 5,250
4 hours 6% 700 750 800 850 900
700 750 800 850 900
5 hours 13% 850 900 950 1,000 1,050
1,700 1,800 1,900 2,000 2,100
TOTAL SALES ₱15,050 ₱16,650 ₱18,250 ₱20,400 ₱22,050
Table 6.13 Sales Schedule 6

PROJECTED UNIT SALES FOR STANDARD KTV ROOM With Snacks and Drinks
(98.81%)
Year 2024 2025 2026 2027 2028
Unit Sale 2,651 2,681 2,710 2,740 2,769
30 mins to 2 55% ₱650 ₱700 ₱750 ₱800 ₱850
hours
1,176,500 1,281,700 1,388,250 1,496,800 1,607,350
3 hours 26% 800 850 900 950 1,000
456,800 490,450 524,700 560,500 596,000
4 hours 6% 950 1,000 1,050 1,100 1,150
94,050 100,000 106,050 112,200 118,450
5 hours 13% 1,100 1,150 1,200 1,250 1,300
188,100 198,950 210,000 221,250 232,700
TOTAL SALES ₱1,915,450 ₱2,071,100 ₱2,229,000 ₱2,390,750 ₱2,554,500
Table 6.14 Sales Schedule 7

PROJECTED UNIT SALES FOR GRANDE KTV ROOM

Year 2024 2025 2026 2027 2028
Unit Sale 888 910 932 955 977
30 min to 3 64% ₱1,200 ₱1,300 ₱1,400 ₱1,500 ₱1,600
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 105

hours 758,400 842,400 928,200 1,018,500 1,112,000

1,700 1,800 1,900 2,000 2,100
4 hours 29%
365,500 396,000 427,500 462,000 495,600
2,200 2,300 2,400 2,500 2,600
5 hours 7%
90,200 96,600 105,600 112,500 119,600
TOTAL SALES ₱1,214,100 ₱1,335,000 ₱1,461,300 ₱1,593,000 ₱1,727,200
Table 6.15 Sales Schedule 8

CHIPS
Year 2024 2025 2026 2027 2028
Beginning Inventory 1,085 216 928 650
No. of Units Purchased 17,100 17,250 17,500 17,680 17,900
Multiply by Unit Price 35.00 36.05 37.13 38.25 39.39
Total Purchases 598,500 621,863 649,801 676,179 705,131
Goods Available for Sale 598,500 622,948 650,018 677,108 705,781
Less: Ending Inventory 1,085 216 928 650 906
₱597,41 ₱649,08 ₱676,45 ₱704,87
Cost of Snacks and Drinks 5 ₱622,731 9 8 5

Table 6.16 Inventory and Cost of Snack and Drinks Schedule 1

SODA (750ml)
Year 2024 2025 2026 2027 2028
Beginning Inventory 500 1,004 1,512 656
No. of Units Purchased 3,100 3,150 3,200 3,200 3,280
Multiply by Unit Price 25.00 25.75 26.52 27.32 28.14
Total Purchases 77,500 81,113 84,872 87,418 92,292
Goods Available for Sale 77,500 81,613 85,876 88,930 92,947
Less: Ending Inventory 500 1,004 1,512 656 563
Cost of Snacks and Drinks ₱77,000 ₱80,608 ₱84,364 ₱88,274 ₱92,385
Table 6.17 Inventory and Cost of Snack and Drinks Schedule 2

SODA (1.5L)
Year 2024 2025 2026 2027 2028
Beginning Inventory 1,085 1,766 2,005 1,951
No. of Units Purchased 5,700 5,750 5,800 5,855 5,900
Multiply by Unit Price 35.00 36.05 37.13 38.25 39.39
Total Purchases 199,500 207,288 215,363 223,927 232,418
Goods Available for Sale 199,500 208,373 217,129 225,932 234,368
Less: Ending Inventory 1,085 1,766 2,005 1,951 1,182
Cost of Snacks and
Drinks ₱198,415 ₱206,606 ₱215,124 ₱223,982 ₱233,186

Table 6.18 Inventory and Cost of Snack and Drinks Schedule 3

PAYROLL EXPENSES FOR 2024

Job No Daily Jan-Dec Holiday 13th Night TOTAL
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 106

. of Month Differential
EE Rate s Pay Pay
c d e f
ax(Hourly
(axbx23days) + Ratex10%)
(axbx26daysx11months x2hoursx309
a b ) axbx10 axbx26 days
Karaoke ₱11,96
Technician 1 ₱460 ₱142,140 ₱4,600
0
₱3,554 ₱162,254

Receptionist 2 455 281,190 9,100 23,660 7,030 320,980

Janitor/
Janitress 2 420 259,560 8,400 21,840 6,489 296,289
Security
Personnel 2 450 278,100 9,000 23,400 6,953 317,453

₱1,78 ₱80,86 ₱1,096,97

₱960,990 ₱31,100 ₱24,025
TOTAL 5
7 0 5
Table 6.19 Payroll Schedule 1

PAYROLL EXPENSES FOR 2025

No. 13th Night
of Daily Month Differential
Job EE Rate Jan-Dec Holidays Pay Pay TOTAL
c d e f
ax(Hourly
(axbx23days) + Ratex10%)
(axbx26daysx11months x2hoursx309
a b ) axbx10 axbx26 days
Karaoke
₱474 ₱146,404 ₱4,738 ₱12,319 ₱3,660 ₱167,121
Technician 1
Receptionist 2 469 289,626 9,373 24,370 ₱7,241 330,609
Janitor/Janitress 2 433 267,347 8,652 22,495 ₱6,684 305,178
Security
464 286,443 9,270 24,102 ₱7,161 326,976
Personnel 2
TOTAL 7 ₱1,839 ₱989,820 ₱32,033 ₱83,286 ₱24,745 ₱1,129,884
Table 6.20 Payroll Schedule 2

PAYROLL EXPENSES FOR 2026

No. 13th Night
of Daily Month Differential
Job EE Rate Jan-Dec Holidays Pay Pay TOTAL
c d e f
ax(Hourly
(axbx23days) + Ratex10%)
(axbx26daysx11months x2hoursx309
a b ) axbx10 axbx26 days
Karaoke
₱488 ₱150,796 ₱4,880 ₱12,688 ₱3,770 ₱172,135
Technician 1
Receptionist 2 483 298,314 9,654 25,101 7,458 340,527
Janitor/Janitress 2 446 275,367 8,912 23,170 6,884 314,333
Security 2 477 295,036 9,548 24,825 7,376 336,785
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 107

Personnel
TOTAL 7 ₱1,894 ₱1,019,514 ₱32,994 ₱85,784 ₱25,488 ₱1,163,781
Table 6.21 Payroll Schedule 3

PAYROLL EXPENSES FOR 2027

No. 13th Night
of Daily Month Differential
Job EE Rate Jan-Dec Holidays Pay Pay TOTAL
c d e f
ax(Hourly
(axbx23days) + Ratex10%)
(axbx26daysx11months x2hoursx309
a b ) axbx10 axbx26 days
Karaoke
₱503 ₱155,320 ₱5,027 ₱13,069 ₱3,883 ₱177,299
Technician 1
Receptionist 2 497 307,264 9,944 25,854 7,682 350,743
Janitor/Janitress 2 459 283,628 9,179 23,865 7,091 323,763
Security
492 303,887 9,835 25,570 7,597 346,889
Personnel 2
TOTAL 7 ₱1,951 ₱1,050,100 ₱33,984 ₱88,358 ₱26,252 ₱1,198,694
Table 6.22 Payroll Schedule 4

PAYROLL EXPENSES FOR 2028

No. 13th Night
of Daily Month Differential
Job EE Rate Jan-Dec Holidays Pay Pay TOTAL
c d e f
ax(Hourly
(axbx22days) + Ratex10%)
(axbx26daysx11months x2hoursx309
a b ) axbx10 axbx26 days
Karaoke
₱518 ₱159,980 ₱5,177 ₱13,461 ₱3,999 ₱182,618
Technician 1
Receptionist 2 512 316,482 10,242 26,630 7,912 361,266
Janitor/Janitress 2 473 292,137 9,454 24,581 7,303 333,476
Security
506 313,004 10,130 26,337 7,825 357,296
Personnel 2
TOTAL 7 ₱2,009 ₱1,081,603 ₱35,003 ₱91,009 ₱27,040 ₱1,234,655
Table 6.23 Payroll Schedule 5

MANDATORY GOVERNMENT CONTRIBUTION 2024

Total Monthly Total Monthly
No. Monthl Pag-IBIG Philhealth Total Monthly
Job of EE y Salary Contribution Contribution SSS Contribution
a b c d e f g h
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 108

ER EE ER EE ER EE
Karaoke
Technician 1 ₱11,960 ₱100 ₱100 ₱299 ₱299 ₱1,093 ₱518
Receptionist 2 23,660 200 200 1,183 1,183 2,185 1,035
Janitor/Janitress 2 21,840 200 200 1,092 1,092 2,090 990
Security
Personnel 2 23,400 200 200 1,170 1,170 2,185 1,035
TOTAL 7 ₱80,860 ₱700 ₱700 ₱3,744 ₱3,744 ₱7,553 ₱3,578
Table 6.24 Mandatory Government Contribution Schedule 1

MANDATORY GOVERNMENT CONTRIBUTION 2025

Total Monthly Total Monthly
No. Monthly Pag-IBIG Philhealth Total Monthly
Job of EE Salary Contribution Contribution SSS Contribution
c d e f g h
a b
ER EE ER EE ER EE
Karaoke
Technician 1 ₱12,319 ₱100 ₱100 ₱308 ₱308 ₱1,188 ₱563
Receptionist 2 ₱24,370 200 200 1,218 1,218 2,280 1,080
Janitor/Janitress 2 ₱22,495 200 200 1,125 1,125 2,090 990
Security
Personnel 2 ₱24,102 200 200 1,205 1,205 2,280 1,080
TOTAL 7 ₱83,286 ₱700 ₱700 ₱3,856 ₱3,856 ₱7,838 ₱3,713
Table 6.25 Mandatory Government Contribution Schedule 2

MANDATORY GOVERNMENT CONTRIBUTION 2026

Total
Monthly Total Monthly
No. Monthly Pag-IBIG Philhealth Total Monthly SSS
Job of EE Salary Contribution Contribution Contribution
c d e f g h
a b
ER EE ER EE ER EE
Karaoke
Technician 1 ₱12,688 ₱100 ₱100 ₱317 ₱317 ₱1,188 ₱563
Receptionist 2 ₱25,101 200 200 1,255 1,255 2,375 1,125
Janitor/Janitress 2 ₱23,170 200 200 1,159 1,159 2,280 1,080
Security
Personnel 2 ₱24,825 200 200 1,241 1,241 2,375 1,125
TOTAL 7 ₱85,784 ₱700 ₱700 ₱3,972 ₱3,972 ₱8,218 ₱3,893
Table 6.26 Mandatory Government Contribution Schedule 3

MANDATORY GOVERNMENT CONTRIBUTION 2027

Total
Total Monthly
No. Monthly Monthly Total Monthly SSS
Job Philhealth
of EE Salary Pag-IBIG Contribution
Contribution
Contribution
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 109

c d e f g h
a b
ER EE ER EE ER EE
Karaoke
1 ₱13,069 ₱100 ₱100 ₱327 ₱327 ₱1,235 ₱585
Technician
Receptionist 2 ₱25,854 200 200 1,293 1,293 2,470 1,170
Janitor/Janitress 2 ₱23,865 200 200 1,193 1,193 2,280 1,080
Security
2 ₱25,570 200 200 1,278 1,278 2,470 1,170
Personnel
TOTAL 7 ₱88,358 ₱700 ₱700 ₱4,091 ₱4,091 ₱8,455 ₱4,005
Table 6.27 Mandatory Government Contribution Schedule 4

MANDATORY GOVERNMENT CONTRIBUTION 2028

Total
Monthly Total Monthly
No. Monthly Pag-IBIG Philhealth Total Monthly SSS
Job of EE Salary Contribution Contribution Contribution
c d e f g h
a b
ER EE ER EE ER EE
Karaoke
Technician 1 ₱13,461 ₱100 ₱100 ₱337 ₱337 ₱1,283 ₱608
Receptionist 2 ₱26,630 200 200 1,331 1,331 2,565 1,215
Janitor/Janitress 2 ₱24,581 200 200 1,229 1,229 2,470 1,170
Security
Personnel 2 ₱26,337 200 200 1,317 1,317 2,470 1,170
TOTAL 7 ₱91,009 ₱700 ₱700 ₱4,214 ₱4,214 ₱8,788 ₱4,163
Table 6.28 Mandatory Government Contribution Schedule 5

ACCRUED PAYROLL (DEC. 16-31) for 2024

No.
of Daily
Job EE Rate Dec Night Differential Pay TOTAL
c d
ax(Hourly Ratex10%)
a b axbx15 x2hoursx15days c+d
Karaoke
₱460 ₱6,900 ₱173 ₱7,073
Technician 1
Receptionist 2 455 13,650 341 13,991
Janitor/Janitress 2 420 12,600 315 12,915
Security
450 13,500 338 13,838
Personnel 2
TOTAL 7 ₱1,785 ₱46,650 ₱1,166 ₱47,816
Table 6.29 Accrued Payroll Schedule 1

ACCRUED PAYROLL (DEC. 16-31) for 2025

Job No. Daily Dec Night Differential Pay TOTAL
of EE Rate
a b c d
axbx15 ax(Hourly Ratex10%) c+d
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 110

x2hoursx15days
Karaoke 1
₱474 ₱7,107 ₱178 ₱7,285
Technician
Receptionist 2 469 14,060 351 14,411
Janitor/Janitress 2 433 12,978 324 13,302
Security 2
464 13,905 348 14,253
Personnel
TOTAL 7 ₱1,839 ₱48,050 ₱1,201 ₱49,251
Table 6.30 Accrued Payroll Schedule 2

ACCRUED PAYROLL (DEC. 16-31) for 2026

Job No. Daily Dec Night Differential Pay TOTAL
of EE Rate
a b c d
axbx15 ax(Hourly Ratex10%) c+d
x2hoursx15days
Karaoke 1
₱183 ₱7,503 ₱183 ₱7,503
Technician
Receptionist 2 362 14,843 362 14,843
Janitor/Janitress 2 334 13,702 334 13,702
Security 2
358 14,680 358 14,680
Personnel
TOTAL 7 ₱1,237 ₱50,728 ₱1,237 ₱50,728
Table 6.31 Accrued Payroll Schedule 3

ACCRUED PAYROLL (DEC. 16-31) for 2027

Job No. Daily Dec Night Differential Pay TOTAL
of EE Rate
a b c d
axbx15 ax(Hourly Ratex10%) c+d
x2hoursx15days
Karaoke 1
₱503 ₱7,540 ₱188 ₱7,728
Technician
Receptionist 2 497 14,916 373 15,289
Janitor/Janitress 2 459 13,768 344 14,113
Security 2
492 14,752 369 15,121
Personnel
TOTAL 7 ₱1,951 ₱50,976 ₱1,274 ₱52,250
Table 6.32 Accrued Payroll Schedule 4

ACCRUED PAYROLL (DEC. 16-31) for 2028

Job No. Daily Dec Night Differential Pay TOTAL
of EE Rate
a b c d
axbx15 ax(Hourly Ratex10%) c+d
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 111

x2hoursx15days
Karaoke 1
₱518 ₱7,766 ₱194 ₱7,960
Technician
Receptionist 2 512 15,363 384 15,747
Janitor/Janitress 2 473 14,181 355 14,536
Security 2
506 15,194 380 15,574
Personnel
TOTAL 7 ₱2,009 ₱52,505 ₱1,313 ₱53,818
Table 6.33 Accrued Payroll Schedule 5

PAYMENT TO EMPLOYEES
2024 2025 2026 2027 2028
Total Payroll ₱1,096,97 ₱1,129,88 ₱1,163,78 ₱1,198,69 ₱1,234,65
Expenses 5 4 1 4 5
Less
Accrued (Dec. 16-31) 47,816 49,251 50,728 52,250 53,818
EE Gov. Contribution 96,258 99,226 102,774 105,554 108,917
Total Net Pay 952,901 981,407 1,010,278 1,040,890 1,071,920
Add: Accrued Payroll - 47,816 49,251 50,728 52,250
₱1,029,22 ₱1,059,52 ₱1,091,61 ₱1,124,17
₱952,901
Total Paid Payroll 4 9 8 0
Table 6.34 Payment to Employees Schedule

ELECTRIC CONSUMPTION for 2024

Q Power Consumption Rate

Equipment Weekl Monthly Annual
T per
and Fixtures y Cost Cost Cost
Y KWH
Weeken
KWH Weekday
d
Air 1 ₱194,71
0.513 51.330 82.13 ₱10.98 ₱4,057 ₱16,226
Conditioner 0 4
Electric fan 2 0.033 0.660 1.06 10.98 52 209 2,504
1
Light bulb 0.015 1.800 2.88 10.98 142 569 6,828
2
1
Party Lights 0.018 1.800 2.88 10.98 142 569 6,828
0
LED Strip
9 0.025 2.250 3.60 10.98 178 711 8,535
Lights
Internet
1 0.020 0.200 0.32 10.98 16 63 759
Modem
1
CCTV 0.010 2.400 2.40 10.98 158 632 7,587
0
Computer Set 2 0.070 1.400 2.24 10.98 111 443 5,311
Printer 1 0.024 0.120 0.38 10.98 14 55 655
KTV Monitor 9 0.105 9.432 15.09 10.98 745 2,982 35,779
Karaoke
9 0.079 7.110 11.38 10.98 562 2,248 26,971
System
Water
1 0.019 0.190 0.30 10.98 15 60 721
Dispenser
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 112

Refrigerator 1 0.075 1.803 1.20 10.98 106 422 5,066

Vacuum 1 0.405 2.023 6.47 10.98 231 923 11,082
₱313,33
TOTAL 1.411 82.517 132.332 153.667 ₱6,528 ₱26,112
8
Table 6.35 Electricity Consumption Schedule 1

ELECTRIC CONSUMPTION for 2025

Q Power Consumption Rate

Equipment Weekl Monthly Annual
T per
and Fixtures y Cost Cost Cost
Y KWH
Weeken
KWH Weekday
d
Air 1 ₱197,69
0.521 52.115 83.38 ₱10.98 ₱4,119 ₱16,474
Conditioner 0 3
Electric fan 2 0.034 0.670 1.07 10.98 53 212 2,542
1
Light bulb 0.015 1.828 2.92 10.98 144 578 6,933
2
1
Party Lights 0.018 1.828 2.92 10.98 144 578 6,933
0
LED Strip
9 0.025 2.284 3.66 10.98 181 722 8,666
Lights
Internet
1 0.020 0.203 0.32 10.98 16 64 770
Modem
1
CCTV 0.010 2.437 2.44 10.98 160 642 7,703
0
Computer Set 2 0.071 1.421 2.27 10.98 112 449 5,392
Printer 1 0.024 0.121 0.39 10.98 14 55 665
KTV Monitor 9 0.106 9.576 15.32 10.98 757 3,027 36,327
Karaoke
9 0.080 7.219 11.55 10.98 570 2,282 27,384
System
Water
1 0.019 0.193 0.31 10.98 15 61 732
Dispenser
Refrigerator 1 0.076 1.830 1.22 10.98 107 429 5,143
Vacuum 1 0.411 2.053 6.57 10.98 234 938 11,251
₱318,13
TOTAL 83.779 134.356 153.667 ₱6,628 ₱26,511
2
Table 6.36 Electricity Consumption Schedule 2

ELECTRIC CONSUMPTION for 2026

Q Power Consumption Rate

Equipment Weekl Monthly Annual
T per
and Fixtures y Cost Cost Cost
Y KWH
Weeken
KWH Weekday
d
Air 1 ₱200,83
0.529 52.944 84.71 ₱10.98 ₱4,184 ₱16,736
Conditioner 0 6
Electric fan 2 0.034 0.681 1.09 10.98 54 215 2,582
1
Light bulb 0.015 1.857 2.97 10.98 147 587 7,043
2
1
Party Lights 0.019 1.857 2.97 10.98 147 587 7,043
0
LED Strip
9 0.026 2.321 3.71 10.98 183 734 8,803
Lights
Internet
1 0.021 0.206 0.33 10.98 16 65 783
Modem
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 113

1
CCTV 0.010 2.475 2.48 10.98 163 652 7,825
0
Computer Set 2 0.072 1.444 2.31 10.98 114 456 5,478
Printer 1 0.025 0.123 0.39 10.98 14 56 675
KTV Monitor 9 0.108 9.729 15.57 10.98 769 3,075 36,904
Karaoke
9 0.081 7.334 11.73 10.98 580 2,318 27,819
System
Water
1 0.020 0.196 0.31 10.98 15 62 743
Dispenser
Refrigerator 1 0.077 1.860 1.24 10.98 109 435 5,225
Vacuum 1 0.417 2.086 6.68 10.98 238 953 11,430
₱6,73 ₱323,19
TOTAL 85.111 136.492 153.667 ₱26,933
3 1
Table 6.37 Electricity Consumption Schedule 3

ELECTRIC CONSUMPTION for 2027

Q Power Consumption Rate

Equipment Weekl Monthly Annual
T per
and Fixtures y Cost Cost Cost
Y KWH
Weeken
KWH Weekday
d
Air 1 ₱203,96
0.538 53.770 86.03 ₱10.98 ₱4,249 ₱16,997
Conditioner 0 9
Electric fan 2 0.035 0.691 1.11 10.98 55 219 2,623
1
Light bulb 0.016 1.886 3.02 10.98 149 596 7,153
2
1
Party Lights 0.019 1.886 3.02 10.98 149 596 7,153
0
LED Strip
9 0.026 2.357 3.77 10.98 186 745 8,941
Lights
Internet
1 0.021 0.210 0.34 10.98 17 66 795
Modem
1
CCTV 0.010 2.514 2.51 10.98 166 662 7,947
0
Computer Set 2 0.073 1.467 2.35 10.98 116 464 5,563
Printer 1 0.025 0.125 0.40 10.98 14 57 686
KTV Monitor 9 0.110 9.880 15.81 10.98 781 3,123 37,480
Karaoke
9 0.083 7.448 11.92 10.98 589 2,354 28,253
System
Water
1 0.020 0.199 0.32 10.98 16 63 755
Dispenser
Refrigerator 1 0.079 1.889 1.26 10.98 111 442 5,307
Vacuum 1 0.424 2.119 6.78 10.98 242 967 11,609
₱6,83 ₱328,23
TOTAL 86.439 138.622 153.667 ₱27,353
8 2
Table 6.38 Electricity Consumption Schedule 4

ELECTRIC CONSUMPTION for 2028

Q Power Consumption Rate

Equipment Weekl Monthly Annual
T per
and Fixtures y Cost Cost Cost
Y KWH
Weeken
KWH Weekday
d
Air 1 ₱207,15
0.546 54.609 87.37 ₱10.98 ₱4,316 ₱17,263
Conditioner 0 1
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 114

Electric fan 2 0.035 0.702 1.12 10.98 55 222 2,664

1
Light bulb 0.016 1.915 3.06 10.98 151 605 7,264
2
1
Party Lights 0.019 1.915 3.06 10.98 151 605 7,264
0
LED Strip
9 0.027 2.394 3.83 10.98 189 757 9,080
Lights
Internet
1 0.021 0.213 0.34 10.98 17 67 807
Modem
1
CCTV 0.011 2.553 2.55 10.98 168 673 8,071
0
Computer Set 2 0.074 1.489 2.38 10.98 118 471 5,650
Printer 1 0.025 0.127 0.41 10.98 15 58 697
KTV Monitor 9 0.111 10.034 16.06 10.98 793 3,172 38,065
Karaoke
9 0.084 7.564 12.10 10.98 598 2,391 28,694
System
Water
1 0.020 0.202 0.32 10.98 16 64 767
Dispenser
Refrigerator 1 0.080 1.918 1.28 10.98 112 449 5,390
Vacuum 1 0.430 2.152 6.89 10.98 246 982 11,790
₱6,94 ₱333,35
TOTAL 87.788 140.784 153.667 ₱27,779
5 3
Table 6.39 Electricity Consumption Schedule 5

WATER CONSUMPTION
Year 2024 2025 2026 2027 2028
Water Consumption 10.00 10.15 10.31 10.48 10.64
Water 1-10 CUM 18.375 18.926 19.494 20.079 20.681
Rates 11-20 CUM 20.000 20.600 21.218 21.855 22.510
Monthly Cost 183.75 192.35 201.52 211.28 221.22
Annual Costs ₱2,205 ₱2,308 ₱2,418 ₱2,535 ₱2,655
Table 6.40 Water Consumption Schedule

INTERNET SERVICE for 2024-2028

Maximum Speed
Year Monthly Cost Annual Cost
2024 200 Mbps. ₱1,350.00 ₱16,200
2025 200 Mbps. ₱1,390.50 ₱16,686
2026 200 Mbps. ₱1,432.22 ₱17,187
2027 200 Mbps. ₱1,475.18 ₱17,702
2028 200 Mbps. ₱1,519.44 ₱18,233
Table 6.41 Internet Service Schedule

MARKETING AND AVERTISING EXPENSE

Advertisement Strategies 2024 2025 2026 2027 2028
Tarpaulin ₱2,400 ₱2,472 ₱2,546 ₱2,623 ₱2,701
Monthly Promo 27,000 18,192 18,360 18,552 18,744
TOTAL ₱29,400 ₱20,664 ₱20,906 ₱21,175 ₱21,445
Table 6.42 Marketing and Advertising Schedule
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 115

Office Unit Total

Supplies QTY Cost Cost 2024 2025 2026 2027 2028
Bond Papers 3 ₱185 ₱555 ₱555 ₱572 ₱589 ₱606 ₱625
Pens 2 72 144 144 148 153 157 162
Stapler 2 109 218 218 225 231 238 245
Staple 3 15 45 45 46 48 49 51
Ink 2 1,100 2,200 2,200 2,266 2,334 2,404 2,476
TOTAL ₱3,162 ₱3,257 ₱3,355 ₱3,455 ₱3,559
Table 6.43 Office Supplies Schedule

Sanitary and
QT Unit Total
Safety 2024 2025 2026 2027 2028
Y Cost Cost
Supplies
₱2,37
Garbage bag 72 ₱33 ₱2,376 ₱2,447 ₱2,521 ₱2,596 ₱2,674
6
Broom 2 150 300 300 309 318 328 338
Dust pan 2 150 300 300 309 318 328 338
Mop 1 253 253 253 261 268 276 285
Trash can 3 260 780 780 803 828 852 878
bucket 1 110 110 110 113 117 120 124
Dipper 1 15 15 15 15 16 16 17
Tissue 360 17 6,120 6,120 6,304 6,493 6,687 6,888
Fire
1 890 890 890 890 890 890 890
Extinguisher
₱11,14 ₱11,45 ₱11,76 ₱12,09
Total 443 ₱12,431
4 2 8 5
Table 6.44 Sanitary and Safety Supplies Schedule

Other Unit Total

QTY 2024 2025 2026 2027 2028
Supplies Cost Cost
Water 360 ₱25 ₱9,000 ₱9,000 ₱9,270 ₱9,548 ₱9,835 ₱10,130
Disposable 18,00
600 30 18,000 18,540 19,096 19,669 20,259
Cups 0
Light Bulb 12 137 1,644 1,644 1,693 1,744 1,796 1,850
Party Lights 10 51 510 510 525 541 557 574
LED Strip 16,90
100 169 16,900 17,407 17,929 18,467 19,021
Lights 0
1,08
Total ₱46,054 ₱47,436 ₱48,859 ₱50,324 ₱51,834
2
Table 6.45 Other Supplies Schedule

Business Licenses and Permits

2024 2025 2026 2027 2028
SEC
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 116

Business Name Registration ₱100

Documentary Stamp Tax 30
Articles of Partnership 5,040
Legal Research Fee 20
Transaction Fee 30
Notarial Fees
Notarized Articles of 500
Partnership
Notarized Contract of Lease 500
Barangay Clearance
Barangay Permit 600 618 637 656 675
Community Tax Certificate or 105 108 111 115 118
Cedula
Business Permits
Health Clearance 100 103 106 109 113
Sanitary Permit 100 103 106 109 113
Locational Permit 1,440 1,483 1,528 1,574 1,621
Certificate of Occupancy 1,200 1,236 1,273 1,311 1,351
Engineering Permit 960 989 1,018 1,049 1,080
Environmental Permit 3,000 3,090 3,183 3,278 3,377
Fire Permit 500 515 530 546 563
Mayor’s Permit 3,000 3,090 3,183 3,278 3,377
BIR
Registration Fee 500 515 530 546 563
Loose Documentary Stamp 30 31 32 33 34
Tax
SSS - - - - -
Philhealth - - - - -
Pag-IBIG Fund 100 - - -
Intellectual Property 900
Total ₱17,85 ₱11,88 ₱13,137 ₱12,60 ₱12,98
5 1 5 3
Table 6.46 Business Licenses and Permits Schedule

Depreciation Expense
Fixed Assets Total Cost Est. Useful Life Depreciation Expense
Desktop Computer ₱87,980 6 ₱14,663
Air conditioner 254,950 15 16,997
Refrigerator 25,620 10 2,562
water dispenser 7,356 6 1,226
Electric fan 3,960 6 660
karaoke set 225,000 8 28,125
ktv monitor 49,500 8 6,188
Vacuum 5,385 6 898
CCTV 16,500 5 3,300
Printer 8,600 5 1,720
File Cabinet 6,899 15 460
Office Table 3,255 15 217
Table 31,500 10 3,150
Chair 11,700 10 1,170
Reception desk 13,630 15 909
Sofa (2-seater) 72,800 10 7,280
Sofa (3-seater) 93,500 10 9,350
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 117

Sofa (5-seater) 222,600 10 22,260

Food Storage Cabinet 3,150 7 450
Leasehold Improvement 516,000 10 51,600
₱1,659,885 ₱173,184
Table 6.47 Depreciation Expense Schedule

Accumulated Depreciation
FIXED ASSETS 2024 2025 2026 2027 2028
Desktop Computer ₱14,663 ₱29,327 ₱43,990 ₱58,653 ₱73,317
Air conditioner 16,997 33,993 50,990 67,987 84,983
Refrigerator 2,562 5,124 7,686 10,248 12,810
water dispenser 1,226 2,452 3,678 4,904 6,130
Electric fan 660 1,320 1,980 2,640 3,300
karaoke set 28,125 56,250 84,375 112,500 140,625
KTV monitor 6,188 12,375 18,563 24,750 30,938
Vacuum 898 1,795 2,693 3,590 4,488
CCTV 3,300 6,600 9,900 13,200 16,500
Printer 1,720 3,440 5,160 6,880 8,600
File Cabinet 460 920 1,380 1,840 2,300
Office Table 217 434 651 868 1,085
Table 3,150 6,300 9,450 12,600 15,750
Chair 1,170 2,340 3,510 4,680 5,850
Reception desk 909 1,817 2,726 3,635 4,543
Sofa (2-seater) 7,280 14,560 21,840 29,120 36,400
Sofa (3-seater) 9,350 18,700 28,050 37,400 46,750
Sofa (5-seater) 22,260 44,520 66,780 89,040 111,300
Food Storage
450 900 1,350 1,800 2,250
Cabinet
Leasehold
51,600 103,200 154,800 206,400 258,000
Improvement
₱173,184 ₱346,367 ₱519,551 ₱692,734 ₱865,918
Table 6.48 Accumulated Depreciation Schedule

PROFIT DISTRIBUTION TABLE

2024 Beloncio Bracero Bustria TOTAL
Net Income ₱142,231
Salary ₱132,000 ₱138,000 ₱144,000 -414,000
Remaining Balance -271,769
P/L Ratio (1/3) -90,590 -90,590 -90,590
Total Share in Profit ₱41,410 ₱47,410 ₱53,410 ₱142,231

2025 Beloncio Bracero Bustria TOTAL

Net Income ₱460,834
Salary ₱132,000 ₱138,000 ₱144,000 -414,000
Remaining Balance 46,834
P/L Ratio (1/3) 15,611 15,611 15,611
Total Share in Profit ₱147,611 ₱153,611 ₱159,611 ₱460,834

2026 Beloncio Bracero Bustria TOTAL

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 118

Net Income ₱674,972

Salary ₱132,000 ₱138,000 ₱144,000 -414,000
Remaining Balance 260,972
P/L Ratio (1/3) 86,991 86,991 86,991
Total Share in Profit ₱218,991 ₱224,991 ₱230,991 ₱674,972

2027 Beloncio Bracero Bustria TOTAL

Net Income ₱898,597
Salary ₱132,000 ₱138,000 ₱144,000 -414,000
Remaining Balance 484,597
P/L Ratio (1/3) 161,532 161,532 161,532
Total Share in Profit ₱293,532 ₱299,532 ₱305,532 ₱898,597

2028 Beloncio Bracero Bustria TOTAL

Net Income ₱1,123,269
Salary ₱132,000 ₱138,000 ₱144,000 -414,000
Remaining Balance 709,269
P/L Ratio (1/3) 236,423 236,423 236,423
Total Share in Profit ₱368,423 ₱374,423 ₱380,423 ₱1,123,269
Table 6.49 Profit Distribution Schedule

FINANCIAL STATEMENT ANALYSIS

Financial statement analysis is the process analyzing a company’s financial

statements for decision-making purposes.

Liquidity Ratios

The Liquidity Ratios are important class of financial metrics used to determine

a debtors’ ability to pay current debt obligations without raising external capital.

A. Net Working Capital

Net Working Capital
Year Current Assets Current Liabilities Net Working Capital
2024 ₱643,613 ₱155,719 ₱487,895
2025 ₱945,627 ₱192,382 ₱753,245
2026 ₱1,279,490 ₱218,067 ₱1,061,423
2027 ₱1,658,936 ₱244,610 ₱1,414,326
2028 ₱2,083,629 ₱271,466 ₱1,812,163
Table 6.50 Net Working Capital Schedule

B. Current Ratio
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 119

CURRENT RATIO
Year 2024 2025 2026 2027 2028

Current Assets ₱643,613 ₱945,627 ₱1,279,490 ₱1,658,936 ₱2,083,629

Current Liabilities ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466

Current Ratio ₱4 ₱5 ₱6 ₱7 ₱8
Table 6.51 Current Ratio Schedule

C. Quick Asset Ratio

QUICK ASSETS RATIO
Year 2024 2025 2026 2027 2028

Quick Assets ₱543,743 ₱845,440 ₱1,177,845 ₱1,558,479 ₱1,983,779

Current Liabilities ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466

Quick Assets Ratio ₱3 ₱4 ₱5 ₱6 ₱7

Table 6.52 Quick Assets Ratio Schedule

Solvency Ratios

Solvency ratios a key financial metric used to measure an enterprise ability to

meet its debt obligations and is used often by prospective business lenders. It

indicates whether company cash flow is sufficient to meet its short-term and long-

term liabilities.

D. Debt Ratio
DEBT RATIO
Year 2024 2025 2026 2027 2028

Total Liabilities ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466

Total Assets ₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446

Debt Ratio 0.07 0.09 0.09 0.09 0.09

Table 6.53 Debt Ratio Schedule

E. Equity Ratio
EQUITY RATIO
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 120

Year 2024 2025 2026 2027 2028

Total Equity ₱1,978,446 ₱2,070,613 ₱2,205,607 ₱2,385,327 ₱2,609,980

Total Assets ₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446

Equity Ratio 0.93 0.91 0.91 0.91 0.91

Table 6.54 Equity Ratio Schedule

F. Debt to Equity Ratio

DEBT TO EQUITY RATIO
Year 2024 2025 2026 2027 2028

Total Liabilities ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466

Total Equity ₱1,978,446 ₱2,070,613 ₱2,205,607 ₱2,385,327 ₱2,609,980

Debt to Equity 0.08 0.09 0.10 0.10 0.10

Ratio
Table 6.55 Debt to Equity Ratio Schedule

Profitability Ratios

The profitability ratios are a class of financial metrics that are used to assess

a business ability to generate earnings relative to its revenues, operating cost,

balance sheet assets, and partners’ capital over time using data from a specific

point in time.

G. Return on Investment
RETURN ON INVESTMENT
Year 2024 2025 2026 2027 2028

Net Income ₱142,231 ₱460,834 ₱674,972 ₱898,597 ₱1,123,269

Total Equity ₱1,950,000 ₱1,978,446 ₱2,070,613 ₱2,205,607 ₱2,385,327

Return on 0.07 0.23 0.33 0.41 0.47

Investment
Table 6.56 Return on Investment Schedule
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 121

H. Total Assets Turnover

TOTAL ASSETS TURNOVER
Year 2024 2025 2026 2027 2028

Service Revenue ₱3,746,842 ₱4,133,899 ₱4,530,508 ₱4,939,828 ₱5,355,543

Total Assets ₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446

Total Assets Turn 1.76 1.83 1.87 1.88 1.86

Over
Table 6.57 Total Assets Turnover Schedule

I. Profit Margin
PROFIT MARGIN
Year 2024 2025 2026 2027 2028

Net Income ₱142,231 ₱460,834 ₱674,972 ₱898,597 ₱1,123,269

Revenue ₱3,746,842 ₱4,133,899 ₱4,530,508 ₱4,939,828 ₱5,355,543

Profit Margin 0.04 0.11 0.15 0.18 0.21

Table 6.58 Profit Margin Schedule

J. Payback Period

PAYBACK PERIOD
Period Net Cash Flow Cumulative Cash Flow
0 -₱1,950,000 -₱1,950,000
1 ₱543,743 -₱1,406,257
2 ₱845,440 -₱560,816
3 ₱674,972 ₱114,155
4 ₱898,597 ₱1,012,752
5 ₱481,401 ₱1,494,153
Table
6.59 Payback Period

Payback Period = 2 years + (₱560,816/₱674,972) years

Payback Period = 2 years + 0.83 years
Payback Period = 2.83 years
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 122
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 7

RISK ASSESSMENT AND PLANNING

This chapter defines the business risks, as well as their measurement and
assessment for the anticipated responses to each risk.

Risk Assessment

The following are the scales used in order to assess the risks which employs
the use of different risk measurement techniques in order to quantify and evaluate
such risks.

Level of
Rating Impact Description
Impact
If the risk is the ONLY CONTRIBUTOR on the inability
5 Catastrophic
of the Organization to meet its objective.
If the risk SIGNIFICANTLY CONTRIBUTED on the
4 Major
inability of the Organization to meet its objective.
If the risk affects A PORTION OR SEGMENT of the
3 Moderate business or process but may slow down the ability of
the organization to meet its objective.
If the risk affects A PORTION OR SEGMENT of the
2 Minor business or process but may NOT slow down the ability
of the organization to meet its objective.
If the risk has NO OR LEAST IMPACT on the
1 Insignificant
attainment of the organizational objective.
Table 7.1 Impact Rating

Ratin Level of
Likelihood Description
g Likelihood
The impact will occur in LESS THAN 12 MONTHS and
5 Certain
with MORE THAN 80% chance of happening.
The impact will occur in LESS THAN 24 MONTHS or 2
4 Likely
years and with 50% - 80% chance of happening.
The impact will occur in LESS THAN 60 MONTHS or 5
3 Possible
years and with LESS THAN 50% chance of happening.
2 Unlikely The impact will occur in every rare situation or case and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 124

expected to occur in the NEXT 10 YEARS with about

10% CHANCE of happening.
The impact will occur, but it is NOT POSSIBLE WITHIN
1 Remote THE NEXT 10 YEARS and even the chance that this will
happen is LESS THAN 10%.
Table 7.2 Likelihood Rating

Ratin
Opportunities for Risk Management Improvement (ORMI)
g
1 No controls in place.
0.80 With controls in place but are ineffective.
0.60 With fairly effective controls in place but needs improvement.
0.40 With highly effective controls in place, but need little improvement.
With controls in place which are working and stands as the industry
0.20
leader.
Table 7.3 ORMI Rating

Risk Heat
RRS Description
Index
Will require continuous assessment and monitoring of
1-4 Low
the existing controls.
This will require review and possibly change in certain
5-9 Medium
policies that may affect the operations.
Change in certain strategy, policies, and tactics where
10-12 High
benefits will be realized and mitigation may be made.
More
Critical Mitigation is highly imperative.
than 12
Table 7.4 Residual Risk Score (Risk Heat Index)

Risk Identification

A. Strategic Risks
1. Market Demand Risk. The trends and preferences of consumers have a

significant impact on the KTV market. The demand for KTV services can be

considerably affected by shifts in consumer preferences, competition from other

entertainment options, or economic downturns.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 125

2. Equipment and Maintenance Risk. Karaoke machines, sound systems, and

audiovisual equipment are utilized in KTV places. Regular improvements,

replacements, and maintenance are needed for these assets. Dissatisfaction

can result from poor client experiences caused by malfunctioning equipment or

outdated technology.

3. Pricing and Revenue Risk. Pricing KTV services at a level that is both

competitive and profitable is crucial. Prices that are set too high or too low may

discourage customers and negatively impact profitability.

4. Staffing and Talent Management Risk. For delivering high-quality service, it's

critical to hire and keep professional staff, including receptionists and

technicians. Poor customer experiences and damage to a company's reputation

might result from high personnel turnover or inadequately trained staff.

5. Health and Safety Risk. It is essential to provide a secure and healthy

environment for both employees and customers. Fire dangers, emergency

readiness, sanitary conditions, and compliance with health standards are all

risks.

6. Reputation and Online Reviews Risk. Online reputation and reviews are very

important in today's digital age for attracting customers. Potential clients may be

turned off by negative reviews or a weak internet presence, which can also

harm the company's reputation.

Risk Impa Likeli Inhere Opportun Resid Risk Management

ct hood nt ities for ual Strategy
Ratin Ratin Risk Risk Risk
g g Score Managem Score
(a) (b) c=a×b ent e=c×d
Improve
ment
Rating
(d)
Strategic Risks
Market 4 5 20 1.00 20 Mitigate the risk by
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 126

Demand keeping up with

Risk market
developments and
adapt continuously
to shifting consumer
demands. In order to
do that, Safe ‘n
Sound will collect
feedback from
customers after the
availed service or
through online
evaluation
Equipmen 2 2 4 0.20 0.8 Avoid by
t and implementing a
Maintenan maintenance
ce Risk schedule for regular
improvements and
replacements.
Pricing 3 4 12 0.40 4.8 Mitigate the risk by
and doing market
Revenue research,
Risk understand clients’
willingness to pay,
and do cost
monitoring. Also,
answering of
evaluation by
customers will be
implemented to
assess their
judgment regarding
pricing.
Staffing 2 2 4 0.20 0.8 Avoid by creating
and Talent effective
Managem recruitment, training
ent Risk and retention
initiatives. Providing
benefits and
initiatives will also
help the staff to be
productive.
Health 2 2 4 0.40 1.6 Avoid by taking
and appropriate safety
Safety precautions,
Risk educating personnel
about emergency
procedures, and
keeping the vicinity
clean.
Reputatio 3 5 15 0.40 6 Mitigate the risk by
n and prioritizing customer
Online service excellence,
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 127

Reviews tracking and

Risk managing of online
reviews, and
resolving issues
raised by customers
immediately.
Table 7.5 Strategic Risk Assessment and Planning

B. Marketing Risks
1. Changing Consumer Preferences. Changing customer trends and

preferences may have an impact on how popular KTV establishments are.

There is a risk that customers may shift their interest towards other forms of

entertainment or may prefer to stay at home and use digital karaoke platforms.

This may result in a decrease in the demand for KTV services.

2. Increased Competition. Given the ongoing influx of new venues onto the

market, the KTV industry may be quite competitive. Gaining and keeping clients

can be difficult in an environment of increased competition. To keep ahead of

the competition and set themselves apart, businesses have to constantly adapt

their marketing techniques

3. Negative Publicity. Through social media or online review sites, any negative

events or consumer dissatisfaction may quickly spread and harm a company's

reputation. To reduce the danger of negative publicity, KTV enterprises must

uphold high standards of customer service and respond quickly to complaints.

4. Seasonal Fluctuations. Businesses in KTV sites may suffer seasonal changes,

with peaks around holidays and weekends and drops during the workweek.

Businesses must consider this while developing their marketing plans in order to

maximize sales during busy seasons and draw in clients during quiet ones.

5. Technology Disruption. The KTV business may be affected negatively by

technological advancements. Traditional KTV venues may be at risk as a result

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 128

of the development of digital karaoke platforms and home entertainment

systems.

Risk Impa Likelih Inhere Opportuni Residu Risk

ct ood nt ties for al Risk Management
Ratin Rating Risk Risk Score Strategy
g (b) Score Managem e=c×d
(a) c=a×b ent
Improvem
ent Rating
(d)
Marketing Risks
Changing 4 5 20 1.00 20 Mitigate the risk by
Consumer assessing trends
Preferenc and consumer
es preferences. This
will be done by
conducting an
online evaluation
for customers.
This way, Safe ‘n
Sound will know
what additional
service they
prefer.
Increased 3 2 6 1.00 6 Acceptance of risk
Competiti by constantly
on adapting
marketing
techniques.
Negative 3 5 15 0.40 6 Mitigate the risk by
Publicity responding to
complaints quickly
and by having
good customer
service.
Seasonal 2 5 10 1.00 10 Mitigate the risk by
Fluctuatio developing
ns marketing plans
like providing
promos for the
customers.
Technolog 4 4 16 1.00 16 Mitigate the risk by
y keeping up with
Disruption technological
developments and
considering
implementation of
innovative
functions or
experiences.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 129

Table 7.6 Marketing Risk Assessment and Planning

C. Technical and Operational Risks

1. Power Interruption. The business operates equipment that is primarily

powered by electricity. The risk of a power outage may result in customer loss

as well as equipment damage, causing the business's operations to be

disrupted.

2. Damage and malfunction of facilities. The function or value of assets may be

materially affected by accident, poor maintenance, fire, earthquake, spillage and

other factors. Failure of an asset can disrupt business operations, resulting in

losses.

3. KTV equipment failure. The KTV system is the main equipment used in the

business operation. Damage and malfunction of these due to poor

maintenance, overused and system errors will greatly affect the daily operation

of the business.

4. Fire. It is the likelihood that a fire will occur and the extent and severity of the

damage as a result of fire hazard such as faulty cable, damaged equipment/ or

caused by human activities.

5. Natural Disaster. The Philippines is well known to experience natural disasters

such as earthquakes and typhoons which cause floods especially in the area of

the business. This occurrence highly affects the operation of the business.

6. Employee error. When individuals commit substantial errors at work, a

company's operations can be jeopardized.

7. Customer risk. When a drunk customer enters the establishment or a conflict

between customers occurs, it may disrupt the peace and order within the

establishment, leading to complaints and damage to the business's property.

Risk Impact Likeli Inhere Opportuni Residu Risk

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 130

Rating hood nt ties for al Risk Management

(a) Ratin Risk Risk Score Strategy
g Score Managem e=c×d
(b) c=a×b ent
Improvem
ent Rating
(d)
Technical and Operational Risks
Power 5 2 10 1.00 10 Acceptance of
Interrupti risk through
on monitoring the
schedule of power
outages in the
area. Power
outages are
uncommon in
Mariveles and
usually last only a
few hours. When
there is a
scheduled power
outage, PENELCO
posts an
announcement. In
this case, we can
adjust our hours of
operation. When
the outage lasts
for an extended
amount of time,
the firm will close
for the day. If there
is an unscheduled
power outage, the
business may
temporarily close
until the electricity
is restored. If they
could not wait for
the restoration of
power, as for the
payment, they only
need to pay for the
time consumed
during their stay.
Operating a power
generator may not
be cost effective
and will result in
losses;
consequently, the
company will
accept the risks
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 131

and take
measures to
minimize such
losses.
Damage 2 3 6 0.80 4.8 Avoid through
and effective facility
malfuncti maintenance.
on of Failure of business
facilities facilities is
possible, but it
may be avoided if
the company hires
experts for annual
repair and
maintenance.
There will be daily
monitoring of the
facilities before
starting its
operation and
confirm that
everything is
working properly.
In the event that a
natural disaster
damages the
business facilities,
the impact will be
mitigated by an
insurance
subscription.
KTV 4 2 8 0.20 1.60 Avoid this by
equipme implementing
nt failure regular KTV
equipment
maintenance. It is
part of the
business activity to
inspect all
equipment before
the company
begins its day-to-
day operations to
ensure that
everything is
functioning as
intended.
Business
interruption will be
avoided as a result
of this. If an
unforeseen KTV
equipment
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 132

breakdown occurs
and the technician
is unable to fix it
immediately, that
specific area will
be temporarily out
of service until
resolved.
Fire 5 3 15 0.40 6 Ensure that
compliance with
fire safety
protocols is
maintained. And,
transfer the risk by
procuring
insurance to
minimize the
impact.
Natural 4 5 20 1.00 20 Transfer the risk
Disaster by procuring
insurance.
Employe 2 2 4 0.40 1.60 Mitigate the risk
e error through employing
continuous staff
training and
ensuring that
workload of
employees is well
balanced.
Customer 2 3 6 0.60 3.60 When a customer
Risk is drunk and
without company,
he is not allowed
to enter the
establishment. A
customer who is
making a scene
will be directly sent
to the barangay.
Table 7.7 Technical and Operational Risk Assessment and Planning

D. Legal and Compliance Risks

1. Local ordinances. The LGU may enact new ordinances that are detrimental to

business. However, failure to comply with these new ordinances may result in

penalties or the revocation of a business permit.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 133

2. Contract Violation. This could include a breach of contract or a disagreement

over corporate contractual duties, such as lease terms.

3. Intellectual property infringement. The company has a logo and trademark

that are protected by the Philippine intellectual property code. Infringement is

common with this form of intangible asset.

4. Health Protocol. The increasing number of covid 19 cases places further

constraints on the community. These constraints may have an impact on the

supply chain, gross receipts, or the overall operation of the business.

Risk Impa Likeli Inher Opportuniti Resid Risk Management

ct hood ent es for Risk ual Strategy
Ratin Ratin Risk Managemen Risk
g g Scor t Score
e=c×d
(a) (b) e Improvemen
c=a×b
t Rating
(d)
Legal and Compliance Risks
Local 1 1 1 0.20 0.20
Accept by complying
ordinanc with the rules and
es regulations put in
place by the LGU
because it is
mandatory.
Contract 4 1 4 0.20 0.80 Avoid by following
Violation through on the
contractual
commitments that the
business agreed to.
Intellect 2 1 2 0.20 0.40 Mitigate by ensuring
ual that the trademark of
property the business is
infringe properly registered in
ment the Intellectual
Property Office and
retaining all legal
documentation
proving that it is
owned by Safe n'
Sound.
Health 3 4 12 0.60 7.20 Comply with the
Protocol protocols being
implemented by the
authorities.
Table 7.8 Legal and Compliance Risk Assessment and Planning
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 134

E. Financial and Economic Risks

1. High Inflation rate. Higher actual Inflation rate than the expected inflation rate

will result in high costs of operation and eventually pricing for each KTV will

follow.

2. Changes in Tax rates. Taxes imposed by the government will greatly affect the

cash flow of the business. The higher the tax rates, the higher the amount that

the business needs to pay in the government.

3. Liquidity Risk. The risk of inability to meet the payment for the obligation as

they become due.

Risk Imp Likeli Inher Opportuniti Resid Risk Management

act hood ent es for Risk ual Strategy
Rati Ratin Risk Manageme Risk
ng g Scor nt Score
e=c×d
(a) (b) e Improveme
c=a×b
nt Rating
(d)
Financial and Economic Risks
High 3 5 15 1.00 15 Reduce costs to
Inflation maintain the cost of
rate each KTV room while
reducing the risk.
Negotiate with the
supplier to obtain
products at a
discount.
Change 1 2 2 1.00 2 Acceptance of the
s in Tax risk through
Rates complying with the
tax rates imposed by
the government.
Liquidity 2 2 4 0.20 0.80 Mitigate the risk by
Risk keeping an eye on
the company's
current credit,
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 135

managing cash flow,

and net working
capital on a regular
basis..
Table 7.9 Financial and Economic Risk Assessment and Planning

Risk Matrix

 Reputatio
 Market
n and
Demand
Online
Risk
Reviews
 Seasonal  Changing
Risk
5 Fluctuation Consumer
 Negative
s Preferenc
Publicity
es
 High
 Natural
Inflation
Disaster
rate
 Pricing
and
Revenue  Technolog
4 Risk y
 Health Disruption
Protocol

 Damage
and
malfunction
3  Fire
of facilities
 Customer
Risk
2  Changes  Equipment  Increased  Power
in Tax and Competiti  KTV Interrupti
Rates Maintenan on equipment on
ce Risk failure
 Staffing
and Talent
Manageme
nt Risk
 Health and
Safety Risk
 Employee
error
 Liquidity
Risk
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 136

L
i  Intellectual
 Local
k property  Contract
1 ordinanc
e infringeme Violation
es
l nt
i
h
o 1 2 3 4 5
o
d
Impact
This section provides the visual representation of the risk assessment in the

form of a risk cube, which maps all the risk indicated above based on its “Impact

Rating” and “Likelihood Rating”.

Table 7.10 Risk Matrix

APPENDICES

Appendix 1 Articles of Partnership

ARTICLES OF PARTNERSHIP

OF

SAFE N’ SOUND

(Partnership Name)

KNOW ALL MEN BY THIS PRESENTS:

That we, the undersigned partners, of all legal ages, residents and citizens of the

Philippines have on this day voluntarily associated ourselves together for the

purpose of forming a general partnership under the following terms and conditions

herein set forth and subject to provisions of existing and applicable laws of the

Republic of the Philippines.

AND WE HEREBY CERTIFY:

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 137

ARTICLE I. That the name of the partnership shall be Safe ‘n Sound

ARTICLE II. That the principal office of the Partnership shall be located in Jose

Sarreal, Brgy. Poblacion, Mariveles, Bataan.

ARTICLE III. That the names, citizenship and residence of the partners of the said

partnership are as follows:

NAME CITIZENSHIP RESIDENCE ADDRESS

Meynell Jem A. Filipino Balon Anito, Porto Circle, Mariveles,

Beloncio Bataan

Angelica Mae B. Filipino 0615 Zone 4 Camaya, Mariveles,

Bracero Bataan

Lyca Rose A. Bustria Filipino 0139 Zone 1 Camaya, Mariveles,

Bataan

ARTICLE IV. That the term for which said partnership is to exist for indefinite years

from the original recording of the said partnership by the Securities and Exchange

Commission.

ARTICLE V. That the purposes for which said partnership is formed are as follows:

to offer entertainment to the residence of Mariveles, Bataan

ARTICLE VI. That the capital of this partnership shall be (PhP 1,950,000),

Philippine currency contributed in cash by the partners as follows:

NAME AMOUNT CONTRIBUTED (In Philippine Peso)

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 138

Meynell Jem A. Beloncio 650,000

Angelica Mae B. 650,000

Bracero

Lyca Rose A. Bustria 650,000

That no transfer which will reduce the ownership of Filipino citizens to less than the

required percentage of capital shall be recorded in the proper books of the

partnership:

ARTICLE VII. That the remaining profits or losses shall be divided equally among

the partners after the deduction of their designated salaries.

ARTICLE VIII. That the firm shall be under the management of Lyca Rose A.

Bustria as General Manager and as such he/she shall have charge of the

management of the affairs of the partnership.

ARTICLE IX. That the partners undertake to change the name of the partnership

immediately upon receipt of notice or directive from the Securities and Exchange

Commission that another partnership, corporation or person has acquired a prior

right to the use of that name or that the name has been declared misleading,

deceptive, confusingly similar to a registered name, or contrary to public morals,

good customs or public policy.

IN WITNESS WHEREOF, we have hereunto set our hands this 30th day of August

2023 at Polytechnic University of the Philippines – Bataan Branch.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 139

MEYNELL JEM A. BELONCIO ANGELICA MAE B. BRACERO

(Name of Partner) (Name of Partner)

LYCA ROSE A. BUSTRIA

(Name of Partner)

Appendix 2 Estimation of Units Sold Based on Utilized Capacity

UNITS SOLD FOR DUO KTV ROOM ALONE (40%)

Year 2024 2025 2026 2027 2028
Utilized Demand for DUO KTV 1,733 1,819 1,906 1,993 2,079
Room
Rate for KTV Room Alone 40% 40% 40% 40% 40%
Estimated Sales of KTV Room 693 728 762 797 832
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (93%) 322 338 355 371 387
3 hours (0%) - - - - -
4 hours (7%) 12 13 13 14 15
5 hours (0%) - - - - -
TOTAL UNITS SOLD 334 351 368 385 401

UNITS SOLD FOR DUO KTV ROOM WITH SNACKS and DRINKS (60%)
Year 2024 2025 2026 2027 2028
Utilized Demand for DUO KTV 1,733 1,819 1,906 1,993 2,079
Room
Rate for KTV Room Alone 60% 60% 60% 60% 60%
Estimated Sales of KTV Room 1,040 1,092 1,144 1,196 1,248
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (93%) 483 508 532 556 580
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 140

3 hours (0%) - - - - -
4 hours (7%) 18 19 20 21 22
5 hours (0%) - - - - -
TOTAL UNITS SOLD 502 527 552 577 602

UNITS SOLD FOR MINI KTV ROOM ALONE (6.78%)

Year 2024 2025 2026 2027 2028
Utilized Demand for MINI KTV 17,328 17,545 17,761 17,978 18,19
Room 4
Rate for KTV Room Alone 6.78% 6.78% 6.78% 6.78% 6.78%
Estimated Sales of KTV Room 1,175 1,190 1,204 1,219 1,234
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (92.5%) 543 550 557 564 571
3 hours (6%) 23 24 24 24 25
4 hours (0.5%) 1 1 2 2 2
5 hours (1%) 2 2 2 2 2
TOTAL UNITS SOLD 571 578 585 592 599

UNITS SOLD FOR MINI KTV ROOM WITH SNACKS and DRINKS (93.22%)
Year 2024 2025 2026 2027 2028
Utilized Demand for MINI KTV 17,328 17,545 17,761 17,978 18,194
Room
Rate for KTV Room Alone 93.22% 93.22% 93.22% 93.22% 93.22%
Estimated Sales of KTV Room 16,153 16,355 16,557 16,759 16,961
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (92.5%) 7,471 7,564 7,658 7,751 7,844
3 hours (6%) 323 327 331 335 339
4 hours (0.5%) 20 20 21 21 21
5 hours (1%) 32 33 33 34 34
TOTAL UNITS SOLD 7,846 7,944 8,043 8,141 8,239

UNITS SOLD FOR STANDARD KTV ROOM ALONE (1.19%)

Year 2024 2025 2026 2027 2028
Utilized Demand for 3,466 3,509 3,552 3,596 3,639
STANDARD KTV Room
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 141

Rate for KTV Room Alone 1.19% 1.19% 1.19% 1.19% 1.19%
Estimated Sales of KTV Room 41 42 42 43 43
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (55%) 11 11 12 12 12
3 hours (26%) 4 4 4 4 4
4 hours (6%) 1 1 1 1 1
5 hours (13%) 1 1 1 1 1
TOTAL UNITS SOLD 17 17 17 17 17

UNITS SOLD FOR STANDARD KTV ROOM WITH SNACKS and DRINKS
(98.81%)
Year 2024 2025 2026 2027 2028
Utilized Demand for 3,466 3,509 3,552 3,596 3,639
STANDARD KTV Room
Rate for KTV Room Alone 98.81% 98.81% 98.81% 98.81% 98.81%
Estimated Sales of KTV Room 3,424 3,467 3,510 3,553 3,596
Alone (in Hours)
Projected Demand (in Unit)
30 mins to 2 hours (55%) 942 953 965 977 989
3 hours (26%) 297 300 304 308 312
4 hours (6%) 51 52 53 53 54
5 hours (13%) 89 90 91 92 93
TOTAL UNITS SOLD 1,379 1,396 1,413 1,431 1,448

UNITS SOLD FOR GRANDE KTV ROOM

Year 2024 2025 2026 2027 2028
Estimated Sales of KTV Room 1,300 1,343 1,386 1,430 1,473
Alone (in Hours)
Projected Demand (in Unit)
30 min to 3 hours (64%) 277 286 296 305 314
4 hours (29%) 94 97 101 104 107
5 hours (7%) 18 19 19 20 21
TOTAL DEMAND IN UNIT 390 403 416 429 442

Appendix 3 Population of Lower Mariveles (15-60 years old)

Target Population
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 142

2022
Barangay Total 0-14 years 60 years and Target
Population old above Population
Balon Anito 14,896 3,825 1,364 9,707
Baseco (Nassco) 4,189 1,427 508 2,254
Biaan 3,250 572 204 2,474
Camaya 15,983 4,631 1,650 9,702
Ipag 9,055 3,118 1,111 4,826
Malaya 3,609 1,530 545 1,534
Maligaya 3,537 1,373 489 1,675
Poblacion 6,213 2,472 881 2,860
San Carlos 1,287 473 169 645
San Isidro 5,579 1,794 639 3,146
Sisiman 7,169 1,937 690 4,542
Total 74,767 23,152 8,250 43,365

Appendix 4 Mariveles Household Population 2022

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 143

Appendix 5 Survey Questionnaire for Customers

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 144

SURVEY QUESTIONNAIRE

Dear Respondents,

We are the 3rd year Bachelor of Science in Accountancy (BSA) students of the

Polytechnic University of the Philippines (PUP)-Bataan who are currently

conducting a Feasibility Study on having an entertainment industry here in

Mariveles, Bataan. Please answer the following questions as accurately as

possible. Rest assured that any information that will be extracted from the said data

will be treated with utmost confidentiality.

The Researchers

Name (Optional): ______________________________________

1. Age Bracket (Please select one)

___15-18 ___25-30

___19-25 ___31 above

2. Sex (Please select one)

___ Male ___ LGBTQ+

___ Female ___ Do not prefer to say

3. Occupational Status

___ Student ___Unemployed

___ Employed ___Self-Employed

4. How much is your monthly income or allowances?

___₱2,000 and below ___₱10,001-₱20,000

___₱2,001-₱5,000 ___₱20,001-₱50,000

___₱5,001-₱10,000 ___₱50,001 and above

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 145

5. How familiar are with a Karaoke room?

____ Very Familiar ____Unfamiliar

____Familiar ____Very Unfamiliar

6. How many times have you ever tried a Karaoke room?

___Never ___3-4 times

___1-2 times ___more than 5 times

7. If a Karaoke room business will be established in Mariveles, Bataan, would

you like to avail?

___YES ___NO

8. If YES, how much are you willing to spend?

____ ₱150-300 ____₱500-1,000

____₱300-500 ____more than ₱1,000

9. What kind of Karaoke room would you like to avail?

____Room for 1-2 persons ____Room for 5-10 persons

____Room for 3-5 persons ____Room for a special occasion

10. How many minutes/hours would you like to spend?

___30 minutes ____2 hours ____4 hours

___1 hour ____3 hours ____5 hours and above

11. What do you prefer?

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 146

____Karaoke room alone

____Karaoke room with food and drinks

12. How much are you willing to spend on food and beverages?

____ ₱150-300 ____₱500-1,000

____₱300-500 ____more than ₱1,000

13. How often would you visit our Karaoke room?

____Daily ____Monthly

____Weekly ____Yearly

Appendix 6 Survey Questionnaire for Competitors

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 147

SURVEY QUESTIONNAIRE

Dear Respondents,

We are the 3rd year Bachelor of Science in Accountancy (BSA) students of

the Polytechnic University of the Philippines (PUP)-Bataan who is currently

conducting a Feasibility Study on having an entertainment industry (KTV) here in

Mariveles, Bataan. Please answer the following questions as accurately as

possible. Rest assured that any information that will be extracted from the said data

will be treated with the utmost confidentiality.

The Researchers

Name of the Business: __________________________________

The capacity of the Business

1. What kind of business do you offer?

___KTV room alone ___KTV room with snacks and drinks

2. Is the business operating in:

___Everyday ___Monday to Saturday

___Weekdays ___Weekends only

3. Are open?

___24 hours ___12 hours

Others (Please specify): ___________________________

4. At what time of the day most of your customers visited?

___Morning ___Night

5. How many KTV rooms do you have? _______________

6. Is there any specification for your KTV room?

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 148

____None (All rooms are the same)

____Yes (Please specify)__________________________________

7. How many individuals/groups can you cater every day?

____________________

8. What kind of services does your customer avail the most?

____KTV room alone

____KTV room with food and drinks

9. If any, what KTV room is availed the most?

____________________________

10. What food and drinks do you offer?

____Rice Meal ____Snacks

Others (Please specify):____________________________

11. What does your customer avail the most?

____Rice Meal ____Snacks

Others (Please specify):____________________________

12. Who are your customers the most?

____Student ____Families

____Workers ____Friends

Others (Please specify)_____________________________________

13. How do you cater your customers?

____Walk in ____Reservations ____Both

14. How long does your customer usually stay?

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 149

____below 1 hour ____2-3 hours ____more than 5 hours

____1-2 hours ____3-5 hours

Price

15. How much are your services? (Per room, if any)

_________________________

16. How much is your food and drinks?

____________Rice Meal Others (Please specify):

________________

____________Snacks

17. What are your payment terms?

____Full payment Others (Please specify):

_______________

____ Downpayment + Balance after

18. How do your customers pay?

_____ Gcash _____ Cash ____Both

19. How much is your extension pricing? (if any)

____________________________

Promotion

20. How do you promote your business? (Please check all applicable)

____Social media ____None

____Flyers/Tarpaulin/Business card/etc

Others (Please specify):_________________________