7.

6 Production
Brainiac’s Service Technique will be having materials like, reviewers given to the
students which is already in their package for a 10 day review by group. For one on one review,
students will also be given hardcopy of review materials inclusive with there package. For the
quality control materials that will be given are reviewed and approved by (production
techniques and cost, quality control and customer service).

7.7 Operations Expenses

The owners expect to have an operating cost of 1,500,000 pesos. Wherein all expenses
including the Legal papers and Building Rent is already included.

7.8 Legal Environment

Bureau of Internal Revenue (BIR) Registration is a general requirement in
opening a business thus in order to operate Brainics we should be able to have BIR
Registration. Mayor’s Permit will also be issued to establish, operate or the business,
trade or activity within the city. This document will be approved only after submission of
requirements, payment of necessary taxes and fees imposed thereon. Brainics Review
Center will be patented to the owners of the business, thus the logo will also be
registered to the the City Hall or Municipality. Occupancy Permit is also need for the
building and unit that the business will use in operating the business.

7.9 Inventory
Accurate forecasting is vital. Our projected sales calculations will be based on
factors such as market trends, predicted growth and the economy, promotions,
marketing efforts. We will use a first in first out, first come, first serve policy, all office
supplies will be stored and proctors will have their own supplies of papers,pens, etc. A
stock manager will be hired to monitor the inventory of aterials need for the review
center.
7.10 Suppliers
The Suppliers will be from known brands in the Philippines including Advance Paper
Corporation, Pilot Corporations, Cattleya, E – plus Stationery, and Seiko Epson Corporation.

Name Terms Product / Service

Advance Paper Corporation 2 year contract Bondpapers

Pilot Corporations 2 year contract Pens, Markers

Cattleya 2 year contract Fillers

E – plus stationery 2 year contract Correction Tapes

Seiko Epson Corporation 2 year contract Printer, Inks

8. Financials

8.1 Start-up Costs ©

Identify all the costs associated with starting the business.

C
ACTUAL BUDGETED
START-UP COSTS o
Accounting Services 35,000 35,000 p
Advertising And Promotion For Opening 12,000 15,000
y
Architectural Design 20,000 20,000
r
Cash 58,000 60,000
i
Decorating 15,000 15,000
g
Deposits For Utilities 50,000 50,000
Equipment 198,000 200,000
h

Estimated Taxes 10,000 10,000 t

Headhunting or Other Hiring Costs 5,000 5,000
Installation Of Equipment 30,000 40,000 B
Insurance 100,000 110,000 i
Legal Costs 55,000 60,000 z
Licenses And Permits 45,000 50,000 t
Moving 9,000 10,000 r
e
e

I
Office Supplies 95,000 100,000
Print Design 42,000 50,000
Printing 65,000 65,000
Remodeling, Buildout 30,000 30,000
Rent Deposits 40,000 45,000
Salaries 135,000 140,000
Signs 3,000 5,000
Software 4,500 5,000
Starting Inventory 30,000 30,000
Unanticipated expenses 45,000 60,000
Vehicles 2,500 5,000
Website 5,000 5,000
Other 60,000 80,000
Total Start-Up Costs 1,199,000 1,300,000

8.2 Income Statement

The Income Statement is a financial statement that reveals whether or not a business
has earned a profit or has suffered a loss after a specified period. Complete the Income
Statement below.
Year 1 Year 2 Year 3
Year 4 Year 5
(25%) (15%) (10%)
Revenue 36,000,000 41,400,000 45,540,000 45,540,000 45,540,000
Cost of Goods Sold
28,800,000 33,120,000 36432000 36432000 36432000
(80%)
Gross Profit 7,200,000 8,280,000 9,108,000 9,108,000 9,108,000

Operating Costs (5%) 1,800,000 2,070,000 2,277,000 2,277,000 2,277,000

Finance & Admin
360,000 414,000 455,400 455,400 455,400
(1%)
Sales & Marketing
360,000 414,000 455,400 455,400 455,400
(1%)
Total Expenses 2,520,000 2,898,000 3,187,800 3,187,800 3,187,800

Income Before Tax 4,680,000 5,382,000 5,920,200 5,920,200 5,920,200

Less: Income Tax (5%) 234,000 269,100 296,010 296,010 296,010

Net Income 4,446,000 5,112,900 5,624,190 5,624,190 5,624,190

9. Offering / Funding Request

9.1 Offer
Brainiacs have the highest potenqtial to standout to other competitors because of the
benefits brainiacs have, the deal means the investors gets 5% of the net income less the tax.
And with additional benefits, when you invests 35% on the company, you will be a certified
shareholder with a decision to what the company will do. Anticipated return of investment will be
for 2 years, the advantages of this proposal is that you can consider Brainiacs as one of your
companies. collateral, a

9.2 Capital Requirements

The capital needed for each investors is 500,000 pesos. We guarantee an
income greater than or equal to the price the the investors pays for the product when
and that there is a market present for the product or service. There are just 2
competitors for the classification of the business thus 25% of the target market atleast
will surely avail the service and 35% if we will be able to standout in Maket Area.

9.3 Risk/Opportunity
The Risk that we might experience is first not reaching the targert percentage of Market
Share Explain how you have taken into consideration the risk involved in starting or expanding
your venture.

9.4 Valuation of Business

Business will be worth 5 million pesos with the inclusion of all the building unit, the
services, the operating expenses, and it’s capital and revenue added. This value is determine
when the business already started and is earning a good profit.
9.5 Exit Strategy
When the investors would like to cash out only 15% of the Net Revenue will be given to
them plus the additional 10% of the capital they gave on the start of the business.

10. Implementation

10.1 Year 1
Summarize the key tasks to be completed during the first year of your business plan. Be short
and concise.

Goal 1: Return of Capital

Goal 2: 50% of Capital Profit

Goal 3: Good Feedbacks

Goal 4: Reach the 25% of Population

Goal 5: Constant Customers/ Referal from Customers

10.2 Subsequent years

Explain the implementation of the business plan for the subsequent years. Focus on strategic
tasks.

Goal 1: Higher Market Share

Goal 2: 15% increase in Total Revenue

Goal 3: 10% increase in Total Revenue for the Third Year

Goal 4: Trusted Partnership with other known brands

Goal 5: Extension of the First Branch of Brainiac

10.3 Contingency plan

The first in contingency planning is it requires that there will always be some
means of clients being able to access their information in the firm's accounts,
importantly the record of each client's current equity holdings will also be backed up and
also essential documentation related to tax advice and retirement planning. The
contingency plan states that all client information is stored on the company’s primary
computer and that the computer is backed up continuously on a separate local drive
and on the cloud. Specific retrieval information is provided. If the firm's building is
destroyed, the information remains fully available offsite, both to the firm and,
independently, to its clients. The head of the firm also has a dedicated cell phone
account separate from the firm's business telephone account or his personal cell
number and makes sure that every client knows that independent number.