I.

EXECUTIVE SUMMARY

A. Project Name HELP!

B. Location 506 San Jose Road, Baliwasan,

Zamboanga City

C. Proponents Avila, Roxanne B.

Bellosillo, Ivy L.

Enriquez, Ian Nicole S.

Flores, Elorah Kristyn P.

Nono, Jenika Joyce G.

D. Service Description HELP! is a house help agency that aims

to provide quality helpers to the

different households in Zamboanga City.

It seeks to resolve the predicament on

the scarcity of competent and

trustworthy house helpers in the city;

and to give protection to the household

helpers.
E. Total Projected Costs The total projected costs amount to

PHP 338,338.95.

1
 F. Project Funding The project will be funded by Ian Nicole

S. Enriquez, the proprietor, through

investment.

G. Contingency Plan If the proposed business will not

succeed, further research will be

conducted and new business strategies

will be implemented. If this study will

not be pursued, this paper will serve as

reference for future researches of

students under the School of

Management and Accountancy as well

as the library.

II. INTRODUCTION

A. Nature of the Study

Presently, there is no existing business establishment that caters to the

same need as what the project provides. Seeing this as an opportunity, the

2
proponents found the desire to conduct a feasibility study regarding the

business.

B. Background of the Study

Due to the quality of living in the city and the seemingly rising

competition in the society, most families require both parents to work to be

able to sustain the family’s needs. This situation leads to households and

children being left unattended. After gathering the data from the surveys and

interviews, the proponents formulated the analysis that there is a rising need

for household help. There are quite a number of households directly hiring

walk-in helpers, but the latter’s credibility and capability will always be

questionable. Based on the personal experiences of the proponents, most of

their relatives have been complaining on the performance of their past and

current helpers such as incompetency, attitude problems, and theft.

There are agencies present within Zamboanga City, such as security

agencies, but a helper agency has never existed. Although there is an

existing manpower agency within the city that provides helpers for other

countries such as Kuwait and Dubai, but there is no agency that provides

helpers for the city itself. For this reason, the proponents were encouraged to

do a feasibility study on the project.

3
 C. Significance of the Study

The purpose of the project is to provide a helper agency in Zamboanga

City. The different families in the city will benefit from this project since

providing helpers will help decrease the parents’ stress in trying to balance

work, doing household chores, and child care. The study is significant

because it provides a solution to the current problem regarding the need for

capable household helpers; it serves as a reference for future researches;

and an aid for future investors.

D. Objectives of the Study

The general objective of the study is to determine:

1. The feasibility and viability of starting a helper agency in Zamboanga.

2. If there is a market willing to avail the services provided by the

business and how much they are willing to pay for it.
3. The necessary capital to start the proposed business.

E. Scope and Limitations of the Study

Scope

This study covers different types of households of chosen subdivisions

within Zamboanga City. It will focus on a certain percentage in each

subdivision depending on whether the process of obtaining the aforesaid

4
percentage is applicable; if not, the total number of households will be

utilized.

Data

Data will be gathered by conducting surveys on the chosen

subdivisions within Zamboanga City.

Other data, such as the number of households, will be collected

through interviews conducted on the main offices of the chosen subdivisions

where the surveys would be conducted with persons of proper knowledge of

the needed data; and information of other helper agencies outside the cities

will be gathered via internet.

Limitations

This project will be limited to selected subdivisions with households

which are willing and capable to avail the services of the agency since it may

not be possible for the proponents to study the total number of households

within the city.

As students, the proponents have access to limited types of data which

they were only authorized to see, and due to time constraints, it would be

difficult and time consuming to widen the scope of the study.

F. SWOT (Strengths, Weaknesses, Opportunities, and Threats)

Strengths

5
1. The proprietor already has the necessary structure and fund to start up

the business.
2. The proprietor possesses enough managerial skills and knowledge to

manage the business.

Weaknesses
1. It will be the first business to be put up by the proprietor.

Opportunities

1. The study can be a possible business idea for interested and willing

entrepreneurs.
2. This type of business will be the first in the city.
3. Increasing demand for credible and capable household helpers in the city.

Threats

1. Security concerns in the city.

2. Helpers who are previously walk-ins may be unwilling to apply.

G. Methodologies

Methods utilized for this study are the following:

1. Surveys will be conducted for obtaining the primary data which

includes the number of households included in the market, and those

who are willing and capable to avail the services of the agency.
*The proponents used random sampling for data gathering.
2. Interviews, book research, and Internet research, will be conducted for

obtaining the secondary data for the study.

3. The proponents used the Slovin’s formula to obtain the sample size of

each applicable subdivision required for the survey.

Formula:

n= N .

6
 1 + Ne2

Where:

N = total population of considered as target market

e = margin of error, 5%

n = number of needed respondents

III. MARKETING ASPECT

A.) Description of the Market

Households are clusters or huddles of people who live in the same

dwelling in which they share the same living accommodations; they may

consist of other groups of people but the most common examples are

families. Families, on the side note, are groups of individuals affiliated by

affinity, consanguinity or co-residence. Members of an immediate family

consist of the following: father, mother and children. The father, in most

cases, is the breadwinner or the one who works for the family while the

mother is the housewife or the one who tends for the family in the house.

Nowadays, through modernization and alterations of notions of the current

society, both the mother and father tend to stand as the breadwinners of the

7
family. With both of them busy, no one tends the household while they are

away, henceforth, helpers are in demand not only to look after but also to do

the housework and to take care of the children. This type of situation is also

applicable to households with only one working parent especially on

instances where they have too many children and the mother, or even the

father, is not enough to tend to them or to do the housework.

Households of several subdivisions within Zamboanga City are the

chosen target market of the researchers. Based on the proponents’ judgment,

families residing within the aforesaid subdivisions are the ones who tend to have

financial capabilities in hiring helpers and are also in need of one.

Table 3.1 Total number of households within the subdivisions

TOTAL NUMBER OF HOUSEHOLDS
Subdivision Number of Households
Paraiso Homes, Tumaga 240
Villa Teresa, Divisoria 91
Villa Patricio Homes, Tumaga 10
Casa de Saavedra, Tetuan 29
Dona Maria, Tetuan 105
Total 475

Table 3.1 shows the total number of households of the chosen

subdivisions within Zamboanga City. Information was gathered from the main

offices and associations of the aforesaid subdivisions.

8
B.) Demand

a.) Nature of Demand

With the quality of living in the city and the seemingly rising

competition in the society, more and more parents decide that both

spouses must generate income to support the family; therefore, they

have lesser time to do housekeeping and child care. Given that

information, helpers become a necessity because they are the ones

who perform child care, housekeeping tasks and duties in the absence

of the parents. The presence of these helpers provides assurance in

terms of maintaining the cleanliness of the house and taking care of

children.
Considering that households are the ones who avail of the

services of helpers; the number of households can be the basis for

demand for helpers. Therefore, as the number of households increases

the demand for helpers, in effect, also increases.

b.) Projected Demand

Since the National Statistics Office (NSO) provides the number of

households on a three-year basis, more specifically the number of

households of years 2007 and 2010 (see Appendices), the increase of

the number of households for the study will be computed using the

same basis. With the given information, the percentage of the annual

increase of households is computed as follows:

(175,050 – 154,392) ÷ 3 years = 6,886

9
 6,886 ÷ 154,392 = .0446 = 4.46%

Amounts reflected on the equation are the number of households

for the year 2007 (154,392), number of households for the year 2010

(175,050).

With the computed percentage, the projected number of

households for five years can be obtained, which is shown in the table

below:

Table 3.2 Projected number of households for five years

PROJECTED NUMBER OF HOUSEHOLDS
Year 2016 2017 2018 2019 2020
No. of 475 497 520 544 569
Households

Projected number of households for each of the years 2017 to

2020 will be computed by multiplying the number of households of

the previous year to the percentage of the annual increase of the

households, 4.46%, and adding the number of households of the

previous year.

For the demand, 252 out of the 347 respondents, 1 per

household, selected randomly answered that they would avail of the

services of the agency:

252 ÷ *347 = 0.7262

= 72.62%

*The figure 347 represents the sample size of the study obtained
through the Slovin’s formula.

10
 72.62% represents the percentage of demand for household

helpers, be it the household having a helper or not. Out of that

72.62% or 252 respondents, 46 answered that they are willing to pay

PHP 3,000.00 above for helpers coming from an agency.

46 ÷ 252 = 0.1825

= 18.25 %

Figure 3.1 Pie chart of the answers for the survey question: 4.a. If yes,
how much are you willing to pay for them?

18% 3% PHP 1,000 - 1

16%
PHP 1,500 - 1
30% 33% PHP 2,000 - 2
PHP 2,500 - 2
PHP 3,000 ab

Considering that the monthly cost of the households for each

helper of the agency is PHP 3,400.00, 18.25% represents the

percentage of market acceptability of the business.

With the given percentages, the projected captured market of

the agency can be computed. Said computations are shown below:

Table 3.3 Projected captured market of the agency

PROJECTED CAPTURED MARKET
Year No. of Projected Projected Demand
Households Demand (A x 72.62%) x
(A) (A x 72.62%) 18.25%
2016 475 345 63
2017 497 361 66
2018 520 378 69
2019 544 396 73
2020 569 414 76

11
 C.) Supply

There is no existing helper agency in Zamboanga City, and the

quantity of walk-in helpers cannot be identified. This makes the supply

indefinite. Hence no supply will be considered for the study.

D.) Pricing Analysis

Table 3.6 Pricing analysis of helpers

PRICING ANALYSIS OF HELPERS
Price Range No. of Percentage
Respondents
PHP 1,000.00 – PHP 11 05.95%
1,499.00
PHP 1,500.00 – PHP 31 16.76%
1,999.00
PHP 2,000.00 – PHP 50 27.03%
2,499.00
PHP 2,500.00 – PHP 62 33.51%
2,999.00
PHP 3,000.00 above 31 16.76%

The table shows the different price ranges of how much the households

currently pay their helpers monthly. Most of the respondents, to be specific

62 out of 185 or 33.51%, answered that they compensate their helpers at

about PHP 2,500.00 – PHP 2,999.00; and least of the respondents, 11 out of

12
185 or 5.95%, answered that they compensate their helpers at about PHP

1,000 – PHP 1,499.00.

The proponents followed the rate provided by the Private Employment

Agency(PEA) Law, which states the agency fee is to be computed as 20% of

the total annual salaries of the helpers. In the situation of the business, the

agency fee is PHP 7,200.00.

E.) Proposed Marketing Plan and Strategies

a.) Service Strategy

The proponents have noticed that the demand for helpers is

currently high. As mentioned before, in most cases, both parents are

working, this gives them less time to tend to their children and to do

housework. Although there are many people who are willing to apply

as helpers, households have difficulty finding and directly hiring them.

Also, households find it hard to trust walk-in helpers because of

numerous incidents of theft and child abuse. Therefore, this gives the

study a decent amount of market.

b.) Place Strategies

Zamboanga City is a very attractive location to start up a

service business. Due to the quality of living in the city and the

seemingly rising competition in the society, more households

(specifically within subdivisions) are in need of house helpers. Since

13
the target market of the business is households within the

subdivisions of the city, the business has potential.

c.)Pricing

The rate for walk in helpers is considerably lower than what the

business will be charging from its employers. However, what the

business will be offering to the employers will be reasonable for the

quality of helpers that will be provided for them. Therefore, price-wise,

the business is strategic because it will have much to offer such as

well-trained helpers, as compared to walk-in helpers.

d.) Promotion

1. Flyers and Posters

Printed on these basic mediums of advertisement are the basic

information of the business such as name, description, contact

number and Facebook page. The business will hire persons to

distribute the flyers and posters around Zamboanga City,

specifically mid-town where many people go.

2. Newspapers

Basic information about the business will be placed on the

classified ads section of the chosen printed publication. A decent

amount of people still purchase and read newspapers, hence,

information about the business will be dispersed.

3. Radio

14
 People nowadays still use the radio as a form of entertainment,

be it in offices or even in households; with this information

HELP! agency can pay a certain station to advertise information

about the business, through this people will have word about the

said business

4. Social Network

This is one of the best media of delegating information about

the business for the reason that most people have access to this

global network. The business will create a Facebook page

containing information about HELP agency. Since most people

within the city have accounts on the social networking site, word

about the business will surely be spread.

F.) Terms of Service

The agency’s terms of service will be on a per helper basis. The

employer will pay the through lump sum at the time of deployment of the

helper. Also, the agency will not allow credits from the employers due to the

fact the business is only starting, hence, it will be risky for them to consent

credits.

G.) Projected revenue

15
 The revenue per helper to be generated by the agency consists of the

payment to the helper, agency fee and training fee. The payment to the

helper amounts to PHP 40,800.00 annually.

PHP 3,400.00 x 12 months = PHP 40,800.00

The agency fee will amount to PHP 7,200.00 which is 20% of the total

basic annual salary of the helper.

(PHP 3,000.00 x 12 months) x .20 = PHP 7,200.00

The training fee will amount to PHP 500.00, which will be charged

within one year after deployment. Therefore, the projected revenues of the

agency for five years are shown in the table below.

Table 3.7 Projected revenues for five years

PROJECTED REVENUE FOR 5 YEARS
Captur Gross Total Projected
Year Price ed Projected Revenue
Market Revenue
2016 PHP 63 PHP 453,600.00
7,200.00
40,800.00 16 652,800.00
30,600.00 16 489,600.00
20,400.00 16 326,400.00
10,200.00 15 153,000.00
500.00 63 31,500.00 PHP
2,106,900.00
2017 PHP 66 PHP 475,200.00
7,200.00
40,800.00 66 2,692,800.00
500.00 3 1,500.00 PHP
3,169,500.00
2018 PHP 69 PHP 496,800.00
7,200.00
40,800.00 69 2,815,200.00
500.00 3 1,500.00 PHP
3,313,500.00
2019 PHP 73 PHP 525,600.00

16
 7,200.00
40,800.00 73 2,978,400.00
500.00 4 2,000.00 PHP
3,506,000.00
2020 PHP 76 PHP 547,200.00
7,200.00
40,800.00 76 3,100,800.00
500.00 3 1,500.00 PHP
3,649,500.00
1
Since the amount of PHP 500.00 will be charged only once and not on an
annual basis, it will be only multiplied to the increase of the captured market
from the previous year to the current year

IV. TECHNICAL ASPECT

A.) Service Description

17
 HELP! is a privately-owned agency that offers helpers to households

within Zamboanga City in which it eradicates the hassle of employers in

finding a helper.
The said agency offers employers with helpers who are capable of

performing the following tasks (1) housekeeping, (2) child care, (3) laundry,

and (4) cooking. Inclined with this, helpers will be well–trained by the

agency before they are sent to their respective employers. Employers also

have a choice of either fetching the helper from the agency or the agency

will bring the helper to the household, provided that the employer will pay

for the transportation expenses.

B.) Hiring Plan

For the business to be successful, hiring qualified applicants is

important. The hiring process must ensure that the hired house helpers, who

will later be supplied to the different households, are the cream of the crop.

To do so, the process should include the submission of different requirements

and clearances that will assure the applicant’s legal, medical, and intellectual

qualifications. A further background investigation that will help the Human

Resource manager to better select among the applicants, the process should

require the selected applicants to undergo a five-day training to prepare

them for their different assigned jobs.

The proponents will be: 1. sending out flyers all over Zamboanga and

the neighboring cities; 2. posting on the agency’s Facebook page; and 3.

buying a space on the classified ads section of the city’s local newspaper, 4.

18
advertising through radio, to inform potential applicants regarding the job

hiring.

Regarding applicants outside Zamboanga, an agent will be assigned to

fetch them from their designated hometowns, and bus charges will be

shouldered by the agency. The business shall reimburse the fare expensed

by the applicant on his way to the location.

Transportation costs will be based on two factors: (1) the average bus

rate, computed by summing up all the bus rates divided by the total number

of places; and (2) projected number of applicants outside the city.

Information regarding the rates was provided by the Zamboanga City

Terminal.

Table 4.1 Bus rates (Departure point: Zamboanga) of the different cities in
Region IX
BUS RATES
Place Rate
(in
pesos)
Sibugay
Ipil 190
Titay 200
Kabasalan 210
Imelda 250
Diplahan 260
Buug 275
Del Sur
Vitali 100

19
 Kumalarang 280
Tubod, Lakewood 280
Dumalinao 345
Pagadian 355
Del Norte
Liloy 245
Salug 260
Sindangan 300
Dipolog 400

Average *264
*∑Rate (in pesos) x number of places

With the assumption of a 60:40 ratio, 60 being the percentage of

applicants within Zamboanga City and 40 being the percentage of applicants

outside the city, the projected number of applicants outside Zamboanga City

is computed as so:

63 applicants x .40 = 26

The figure 63 is the projected captured demand of the first year of

operations. Given the figures, computation of transportation costs is as

follows:

Table 4.2 Computation of Annual Transportation Costs

TRANSPORTATION COSTS
Average Bus Rate Captured Market Total Costs
(A) (B) (A x B)
PHP 264.00 26 PHP 6,864.00

20
 For the actual hiring process, the proposed business will observe this 3-

step procedure:

1. The applicants should submit the following documents following

the application:
 Resume
 Medical Examination (Including tests for communicable

diseases, X-Rays, blood testing.)

 Complete and genuine documentation and clearances

(NSO-Certified birth certificate, Barangay clearance, Police

clearance, NBI clearance)

2. Background Investigation

Figure 4.1 Flowchart of Hiring to Deployment process of helpers

PROMOTION HIRING TRAINING DEPLOYMENT

(7 Days) (10 Days) (5 Days) (1 Day)
• Flyers • Submission • Each • Interview
• Facebook of required applicant will with the
Page papers be trained by employer
• News-paper • Background the agency in • Departure
• Radio Investigation a span of five
days

C.) Training

Selected applicants will be called to undergo an in-depth five-day

training and seminar to be held at the location of the business. The business

will also provide for the applicants, who are living outside of the city, free

board and lodging for the whole duration of their training. The applicants will

21
be staying at the boarding quarters located at the site of the business. The

training will be a five-day process that will be headed by a certified instructor

at the Universal Colleges and another instructor who is a graduate from

Brent Hospital and Colleges Incorporated.

Curriculum

Curriculum of the said training will be taught in five days total. Classes

will start at 8:00 AM and will end at 11:00 AM for the morning session, and

1:00 PM to 4:00 PM for the afternoon session. In these five days, all of the

applicants will be taught the basics of housekeeping, laundry, child care and

cooking. Lessons about housekeeping will be based on its core

competencies: Room Cleaning, House Cleaning, Cooking, Laundry and

Ironing; Childcare, on the other hand, will be about its basic concepts: from

proper child bathing to proper babysitting.

Table 4.3 Training schedule and curriculum for the applicants

TRAINING SCHEDULE AND CURRICULUM
Day Time Lesson Trainer
1 08:00 AM – 11:00 Room Cleaning: Bed – Ms. Joy Carpio
AM making
01:00 PM – 04:00 Cleaning
PM of room
2 08:00 AM – 11:00 House Cleaning
AM
01:00 PM – 04:00
PM
3 08:00 AM – 11:00 Cooking
AM
01:00 PM – 04:00
PM
4 08:00 AM – 11:00 Laundry and Ironing

22
 AM
01:00 PM – 04:00
PM
5 08:00 AM – 11:00 Childcare Mr. Jeffrey B.
AM Milan
01:00 PM – 04:00
PM

Training Costs

Training costs will be on a per day basis per trainer. The agency will

hire two trainers: one is for housekeeping, laundry and cooking while the

other is for child care. The trainer for housekeeping and laundry will be Ms.

Joy Carpio; a TESDA certificied, NC 2 inclined with housekeeping. She has a

fee of four hundred and fifty pesos (PHP 450) per day and will teach for four

days per batch. The trainer for childcare will be Mr. Jeffrey Milan, having a fee

of five hundred and sixty pesos (PHP 560), is a graduate from Brent Hospital

and Colleges Incorporated with a degree in Caregiving.

Table 4.4 Computation of Training Costs

TRAINING COSTS
Trainer Fee Number of Days Total
(A) (B) (A x B)
Ms. Joy Carpio PHP 450 4 PHP 1,800.00
Mr Jeffrey B. PHP 560 1 PHP 560.00
Milan
TOTAL PHP 2,360.00

Food Costs

23
 Food costs are computed by multiplying Php 20.00 (the budget for one

meal per trainee,) to the total number of meals per day for a week, to the

number of capacity the boarding quarters can manage.

PHP 20.00 x 3 times x 7 days x 8 trainees = PHP 3,360.00 per week

D.) Location and Site

The address of the office will be at 506 San Jose Road, Baliwasan,

Zamboanga City, fronting Baliwasan Central School and Baliwasan Barangay

Hall, with its entrance right beside SP Glass Aluminum.

Figure 4.2 Location and Site

San Jose Road

24
 E.) Project Layout

Main Office

The main office of the agency will have the following dimensions: 5

meters in width and 20 meters in length. According to law, the office of the

main agency must have a total of 50 square meters; HELP!’s main office, on

the other hand, has a total of 100 square meters. Upon entering the office,

the reception area will be the first in view. The area itself has total

dimensions of five by five meters. A table and chair will be in place where the

assistant of the owner will be situated at. Two rooms will be present inside

the office: (1) the office of the owner, and (2) a vacant room. The office of

the owner will have dimensions of three by six meters. Inside the office, a

table and an office chair for the owner will be in place, fronting the desktop

computer which will be used for business printing and the like. Second is the

vacant room, which is located right beside the owner’s office, has dimensions

of three and a half by six meters and will have no purpose for the mean time.

Lastly, the comfort room will be situated right beside the vacant.

25
Figure 4.3 Project layout for the main office

The Boarding Quarters

26
 The boarding quarters has a dimension of seven by twenty-one meters.

This area is specifically where the maids will stay in. It has four vicinities

namely: (1) A vacant room, (2) Boarding rooms, (3) Orientation room, and (4)

Dining Area. The vacant room has dimensions of four by three meters and is

a room that has no specific purpose for the mean time. The Boarding rooms,

on the other hand, are where the helpers will lodge. Each has dimensions of

four by two meters, and has a double-deck bed, two closets, and one electric

fan. Third, is the orientation room, which is purposed for the helpers’ training

classes. Having dimensions of five by three meters, the said room will have

chairs inside enough for the trainer and helpers staying in the agency.

Adjacent to the orientation room is the dining area, which is where the

helpers will dine their breakfast, lunch and dinner. It will have one

rectangular table and chairs, just enough for the stay-in helpers. Lastly, the

kitchen, which first can be seen after the partition of the boarding rooms and

the comfort room; which, of course, is purposed for cooking the meals of the

helpers. Two sinks are also present for where they would do their laundry.

27
Figure 4.3 Project layout for the boarding quarters

F.) Utilities

Utilities will be necessary for the venture to run efficiently and

effectively. Among these utilities are electricity, water, and

telecommunications (inclusive of internet and landline).The table below

illustrates the utilities needed, their rates and the estimated costs for these

utilities.

Table 4.5 Computation of cost of utilities

COST OF UTILITIES (per quarter)
Estimated Expenses
Utilities Rate First Second Third
Month Month Month

28
 A. Electricity 8.1738.00 / 1,928.00 1,928.00 1,374.00
kwhr
B. Water 39.00 / m3
513.00 513.00 232.50*
C. Telecommunicati 990.00 /990.00 990.00 990.00
ons month
TOTAL 3,431.00 3,431.00 2,596.50
*The minimum amount charged by Zamboanga City Water District to semi-
commercial institutions

Electricity

The supply of electricity, for the use of the equipment both inside the

offices and the dorms, will be provided by Zamboanga City Electric

Cooperative (ZAMCELCO). Seeing as the site was utilized before, no new line

of electricity is needed.

The cost, on the other hand, will be based on the power consumption

based on the usage of the venture’s light, appliances, gadgets and

equipment. The table below illustrates the list of the appliances, gadgets and

equipment, the number of units, their wattage, and the monthly usage in

hours and their product.

Table 4.5.1 Computation of usage of utilities (Quarters)

USAGE OF UTILITIES
Appliances, Number of Wattage Monthly Total watt-
Gadgets units Estimation* Usage hours
and (watt-hour) (in hours)
Equipment A B
C AxBxC
Refrigerator 1 200 168 33,600
Wall fan 7 80 56 31,360
Lightbulbs 10 5 56 2,800
TOTAL 67,760

29
Table 4.5.2 Computation of usage of utilities (Office)
USAGE OF UTILITIES
Appliances, Number of Wattage Monthly Total watt-
Gadgets units Estimation* Usage hours
and (watt-hour) (in hours)
Equipment A B
C AxBxC
Desktop 1 700 192 134,400
Computer
Wall fan 2 80 192 30,720
Lightbulbs 3 5 192 2,880
TOTAL 168,000

To compute for the energy consumption in kilowatt-hours, Kilowatt

Hours used

(Quarters)

67,760 watt hours / 1000 watt hours per kwhr = 67.76 kwhr

(Office)

168,000 watt hours / 1000 watt hours pero kwhr = 168 kwhr

To compute for the cost of the energy consumption, the energy

consumed will be multiplied by the rate taken from the electric bill from the

Zamboanga City Electric Cooperative.

67.76 kwhr x 8.1738 per kwhr PHP 554.00

168 kwhr x 8.1738 per kwhr 1,374.00

Total PHP 1,928.00

30
 Water

The supply of water will be provided by the Zamboanga City Water

Disctrict; and the cost of water consumption will be based on the United

Nation’s Human Development Report of 2006, which indicates that the

average water use per person per day in the Philippines is 164 litres.

Installation of new water connection will not be necessary since the site was

used before.

The quarters can accommodate a maximum of twelve trainees at a

time. The cost of water consumption can be computed by multiplying the

number of average number of litres per day by the number of trainees. The

product will then be multiplied by the number of days in a month. After

which, the amount will be divided by 1000 liters, to convert it from litres to

cubic meters. The amount will then be multiplied by the rate from the

Zamboanga City Water District. The computation is as follows:

(Quarters)

164 liters x 8 trainees x 7 days = 9,184 liters per month

9,184 litres of water / 1000 L/m3 = 9.184 m3

13.776 m3 x P39/m3 = PHP 359 per month

(Office)

164 liters x 1 x 24 = 3,936 liters per month

3,936 L / 1000 L/ m3 = 3.936 m3

31
 3.936 m3 x 39/ m3 = PHP 154.00 per month

*The minimum amount charged by Zamboanga City Water District to semi-

commercial institutions is PHP252.50

Telecommunications

The telecommunications of the venture will consist of landline and

internet connection. It will be a bundled plan subscribed from PLDT. The

monthly cost of this bundled plan will be P990.

G.) Equipment and Supplies

Equipment

To better serve the needs of the applicants, the agency will provide

them with free board and lodging for the whole duration of their training.

Therefore, it is necessary for the business to have the following equipment

inside their dormitories, kitchen and dining area, respectively:

Dormitories

1. Beds and Beddings (double-deck beds are advisable to conserve

space)

32
 2. Electric fans

3. Cabinets

Kitchen and Dining Area

1. Dining Table and chairs

2. Kitchen Tools

3. Refrigerator

Orientation Room

1. Whiteboard

2. Chairs(monoblock)

For the business office, to better serve the customers, and for the

comfort of the employees as well, it is necessary to purchase the following:

1. Desks

2. Chairs (monoblocks)

3. Computer

4. Printer

5. Dining Table

33
 6. Kitchen Utensils

*All equipment listed will be purchased at local shops and stores to avoid

shipping costs.

Estimated Cost for Equipment

Local stores of where the equipment will be purchased include: (1)

EMCOR, (2) Budget Wise, (3) Shop-o-Rama, (4) Bagsakan, (5) Citi Hardware,

(6) Octagon and (7) Maker Sales Center. These stores, compared to others,

have the most cost-efficient merchandise, price-wise and quality-wise.

Table 4.6 Computation of Equipment, Furniture and Fixtures costs

COST OF EQUIPMENT, FURTNITURE AND FIXTURES
Item Item Unit cost Quantit Total Cost Where to
name Description (A) y (A x B) buy
(B)
Boarding Quarters
Rooms
Foam Generic PHP 750.00 8 PHP Maker Sales
Mattress 6,000.00 Center
4x36x75

34
Bed Sheet Bedtime PHP 200.00 8 PHP
60”x78” 1,600.00
Pillow Mandaue PHP 280.00 8 PHP
Foam Pillow 2,240.00
66x40.6 m.
Blanket Oasis Premium PHP 150.00 8 PHP
Blanket 1,200.00
50”x70”
Electric Panasonic PHP 4 PHP EMCOR
Fan EP – 40DVP 1,199.00 4,796.00
Light Bulb Focus PHP 250 4 PHP CITI
5 watts 1,000.00 Hardware
Dining Area
Dining Constructed PHP 1 PHP EMCOR
Table Table 1,659.00 1,659.00
Monobloc Uratex PHP 190.00 8 PHP Budget Wise
1,520.00
Light Bulb Focus PHP 250.00 1 PHP 250.00 CITI
5 watts Hardware
Kitchen
Refrigerat Electrolux PHP 1 PHP EMCOR
or Single Door 10,395.00 10,395.00
Ref
ERM 1400 PA-
RPH
Light Bulb Focus PHP 250.00 1 PHP 250.00 CITI
5 Watts Hardware
Pogon Generic PHP 500.00 2 PHP Bagsakan
1,000.00
Frying Pan Eagle PHP 459.00 1 PHP 459.00 UNITOP
Cauldron Eagle PHP 599.00 1 PHP 599.00

Orientation Room
Monobloc Uratex PHP 190 9 PHP Budget Wise
Chair Monoblock 1,710.00
#101 Classic
Chair
Whiteboar Timco PHP 5,500 1 PHP Shop-O-
d 48” x 72” 5,500.00 Rama

35
Electric Panasonic PHP 2 PHP EMCOR
fan EP – 40DVP 1,199.00 2,398.00
Light bulbs Focus PHP 250.00 2 PHP 500.00 CITI
5 Watts Hardware
Main Office
Receptionist Area and Office of the Boss
Desk Wenge PHP 2 PHP 6,000.00 EMCOR
Homezone 3,000.00
1302 Office
Table
Monobloc Uratex PHP 190.00 4 PHP 760.00
Chair Monoblock
#101 Classic
Chair
Electric Panasonic PHP 1 PHP 1,199.00
fan EP – 40DVP 1,199.00
Desktop AMD, A6-3500 PHP 15,000 1 PHP
Computer (2.6 GHZ, 3MB, 15,000.00
DDR3),
Asus, Mother
Board, FLA55-
M, 4GB, DDR3
RAM, 500 GB
HDD,
Sata Seagate,
DVD-RW,
Windows 8 64-
bit,
AOC Monitor,
LCD-21.5
CSD-MD
RGRAY FOX A6-
3500 DESTOP
Printer Canon IP 2870 PHP 1,749 1 PHP 1, 749 Octagon
Ink Jet Printer
Light Focus PHP 250.00 3 PHP 750.00 CITI
Bulbs 5 Watts Hardware
TOTAL PHP
68,534.00

36
 Supplies

The use of supplies is considered for the reason that they facilitate in

the operations of the business, from office work to instructional purposes.

The supplies needed in order to assist in the business undertakings are the

following:

1. Record books

2. Index cards

3. Envelopes

4. Scotch tape

5. Scissors

6. Clips

7. Bond papers

8. White board marker and eraser

9. Ball pens

Estimated cost for supplies

Said supplies for the utilization of office work and instructing purposes

will all be purchased from Shop-o-rama Department Store. The proponents

37
chose this certain store because quality and quantity wise, it’s the most

appropriate.

Table 4.7 Computation of Cost of Supplies

COST OF SUPPLIES
Item Item Unit Quanti Total Where to
Name Description Cost ty Cost buy
(A) (B) (A x B)
Record Valiant. PHP 1 PHP 69.00 Shop-o-
book Record. 500 69.00 rama
pages Departmen
Index card Macpaper. PHP 1 PHP 53.00 t Store
Premium Index 53.00
Cards. 100
pieces
Envelope Advance file PHP 10 PHP
(long) 10.00 100.00
Scotch Tuff tape PHP 5 PHP
tape 21.00 105.00
Clip Shang Hang PHP 4.00 20 PHP 80.00
Bond Cactus. PHP 1 PHP
paper PPC Paper (long) 155.00 155.00
Staples KW-Trio PHP 5 PHP 55.00
no. 35 11.00
White Pilot PHP 3 PHP
board White Board 53.00 159.00
marker Marker
White White Board PHP 1 PHP 23.00
board Eraser. RX. T-29 23.00
eraser
Ball pen HBW PHP 1 PHP
2000-5 120.00 120.00

38
 24 pcs
TOTAL PHP 919.00

H.) Carpentry Works

Since the site where the main office will be located was used for board

and lodging previously, only minor restorations are needed for it to be fully

functional. Having one partly damaged room and one comfort room, its

structure is still stable and will maintain that way for a significant amount of

time. Utilizing that information, opinion from a civil engineer will be

unnecessary and a carpenter’s point of view will be enough.

Inputs and Materials

Price and quality-wise, Dennis Hardware is the most appropriate

among other stores; henceforth materials and inputs will be bought there.

Considering the fact that the owner has the suitable tools and equipment,

such as hammer, screwdriver, ladder, etc., for the renovation, costs related

to them will not be considered anymore.

Table 4.8 Computation of cost of inputs and materials for restoration

COST OF INPUTS AND MATERIALS FOR RESTORATION
Item Item Size Price Quantit Total Cost
Description (A) y (A x B)
(B)
Walls and Ceiling
Wood Mangium 2x3x1 PHP 190.00 15 PHP
0 pieces 2,850.00
2x2x1 PHP 120.00 10 PHP
0 pieces 1,260.00

39
 Plywood Ordinary ¾ PHP 14 PHP 15,
plywood 1,099.00 pieces 386.00
Common Finishing Nails 2” PHP 40.00 1 kg PHP 40.00
Nails
3” PHP 37.50 3 kg PHP 112.50

Painting Materials
Paint Boysen. 4L PHP 556.25 2 PHP
Primer Paint Primer gallons 1,112.50
for Wood.
Latex Boysen Crea 4L PHP 490.00 2 PHP 980.00
Paint . m gallons
Quick Beige 1 gallon PHP 490.00
dry
Enamel
.
TOTAL PHP 22,231.00

Electrical wires for lighting and outlets are still present and are fully

functional, henceforth, restoration for them will not be needed. The comfort

rooms, on the other hand, still have the proper utilities and fixtures which are

also functional.

Labor

For the first four (4) days, the carpenter, together with his assistant,

will restore the damaged room and will append some partitions;

subsequently, they will fix the perforations on the ceiling which will take

them about three (3) days. With the room finally mended and the apertures

patched up, the carpenter, which is also the painter, and his assistant can

then apply the paint primer which will take them about two days: one(1) for

application and one (1) for drying. After the primer, the labourers will then be

40
 able to paint the office with the first color: cream, which will also take them

about one (1) day to finish. Just like the primer, the paint will take one (1)

day to dry. With the first color in tow, they can then paint the next color:

beige, which will take them about half (½) a day. With another 24 hour

interval (1) for the beige paint to dry, the labourers can then place the doors,

half (½) a day will be enough for the installation of the doors.

Table 4.9 Estimated timeline of restoration

TIMELINE OF THE RESTORATION

Day
Job 1 2 3 4 5 6 7
Restore the damaged room and add some
partitions
Fix the perforations on the ceiling

8 9 10 11 12 13
Application of the paint primer
Interval for the primer to dry
Coating of the primary paint color – Cream
Interval for the first paint color to dry
Coating of the secondary paint color –
Beige
Interval for the second paint color to dry

Positioning the doors

The carpenter, Mr. Chito Garit, has a labor fee of three hundred and

fifty pesos (Php 350), while his assistant has a labor fee of two hundred

pesos (Php 200).

41
Table 4.10 Computation of labor cost for restoration
LABOR COST FOR RESTORATION
Laborer Labor fee Number of Total Who
Days
(A) (B) (A x B)
Carpenter PHP 350 11 PHP 3,850 Mr. Chito
Garit
Carpneter 2 PHP 200 11 PHP 2,200 Mr. Eddy
(Assistant) Garit
TOTAL PHP 6, 050

I.) Licenses and Fees

Computation for expenses related to licenses and fees with regards to

the business is summed up in the table below: documents, books and other

significant files with their corresponding costs are listed.

Table 5.16 Expenses for licenses and fees

EXPENSES FOR LICENSES AND FEES
DTI Registration fee PHP
500.00
Filing Fee 1,000.00
License Fee 6,000.00
Barangay Clearance 800.00
Mayor’s Permit
Sanitary Permit Fee PHP
900.00
.035 of Capital *14,000.00
Garbage Collection Fee 2,500.00
Occupational Tax 360.00

42
 Occupational Police Clearance 905.00
Plumbing Inspection Fee 1,500.00
Electric Inspection Fee 850.00
Building Permit Fee 500.00
Sign Board Permit fee 400.00 21,915.00
BIR Registration Fee
Registration Fee PHP
500.00
Certification Fee 100.00
Special Books (4 pieces) 150.00
Receipts and Invoices 180.00
Documentary Stamp Tax 15.00 945.00
Total PHP
31,160.00
*PHP 400,000 x .035 = PHP 14,000

43
 J.) Monthly Salaries Expense

For the computation of the monthly salary of the company’s employees, refer to the table below.

Table 4.11 Computation of Monthly Salaries Expense

Employer Share on Premium
Basic Deductions Net
JOB TITLE Contributions
Salary Salary
SSS PHC HDMF Total SSS PHC HDMF Total
MARKETING 9,341. 1,041.7
10,000.00 333.3 125 200 658.3 716.7 125 200
MANAGER 70 0
2,740.
HOUSE HELPER 3,000.00 100 100 60 260.00 222 100 60 382.00
00
BOOK KEEPER 2,000.
2,000.00
(external) 00

44
 K.) Total Projected Costs

Table 4.12 Computation of total projected costs

COMPUTATION OF PROJECTED COSTS

CAPITAL REQUIREMENT
Particular Cost
Equipment 68, 534.00
Supplies 919.00
Licenses and Fees 31,160.00
Restoration
Materials 22,231.25
Labor 6,050.00 28,281.25 PHP
128,894.25

WORKING CAPITAL REQUIREMENT

Particular Cost
1
Transportation Costs PHP 1,848.00
2
Training Costs 4,720.00
Food Costs3 6,720.00
4
Salaries Expense 165,545.10
Benefits for employees5 21,461.10
6
Utilities 9,150.50 PHP
209,444.70

TOTAL PROJECTED PHP 338,338.95

COSTS

1
Transportation Cost

Estimated applicants from areas outside Zamboanga

Captured Market of 63 x 40 % = 26 Applicants Annually

26 / 4 = 7 Applicants Quarterly

7 Applicants x 264 Transportation Cost = PHP 1,848.00

2
Training Cost

PHP 2,360.00 x 2 Sessions per quarter = PHP 4,720.00

45
3
Food Cost

1st and 2nd Week

(PHP 20 x 3 days x 7 days x 8 applicants) x 2 = PHP 6,720.00

4
Salaries Expense

For the Marketing Manager and Bookkeeper

PHP 11,341.70 x 3 months = PHP 34,025.10

For the Helpers

PHP 2,740.00 x 16 helpers x 3 months = 131,520.00

Total PHP 165,545.10

5
Benefits for employees

For the Marketing Manager

PHP 1,041.70 x 3 = PHP 3,125.10

For the Helper

PHP 382.00 x 16 helpers x 3 months = 18,336.00

Total PHP 21,461.10

6
Utilities Expense

Electricity

*For the first two months

PHP 1,928.00 x 2 months PHP 3,856.00

*For the third month

168 kwhr x 8.1738 per kwhr 1,374.00

Total for the quarter PHP 5,230.00

Water

*For the first two months

46
 PHP 359.00 x 2 months PHP 718.00

*For the third month 232.50

Total for the quarter PHP 950.50

Telecommunications

PHP 990.00 x 3 months PHP 2,970.00

Total utilities expense for the quarter = PHP 9,150.50

47
 V. MANAGEMENT ASPECT

A. Description of Business Structure and Legal Requirements

This project will adopt a single proprietorship form of business

organization. This form of business organization is the simplest business to

set up. Unlike corporations and partnerships, this type of business

organization is not burdened by strict regulatory laws and rules. Government

registration of a single proprietorship business is simple. It is made through

the Bureau of Trade Regulation and Consumer Protection of the Department

of Trade and Industry (DTI).

In Zamboanga City, the most common type of business is the single

proprietorship. Proprietorships pose many advantages as well as

disadvantages.

A sole proprietor has complete control and decision-making power over

the business. There are no corporate tax payments and most importantly it is

easy and inexpensive to organize.

In another perspective, these advantages can also be a serious

disadvantage. The sole ownership aspect can be disastrous if things go

badly. The main disadvantage of being a sole proprietor is the limited liability.

The proprietor is personally liable for all debts and actions of the company,

meaning, creditors can go after the owner’s personal assets. The business

doesn’t exist as a separate legal entity. Personal liability is the biggest

disadvantage of choosing to operate as a sole proprietorship.

48
 Other disadvantages of sole proprietorships include a lack of tax

flexibility, the increased difficulty of raising money and the possibility of

weak management if the sole owner doesn't have all the skills or knowledge

necessary to lead the company well.

To organize and register a sole proprietorship type of business, the first

thing to do is to register a business name at the Department of Trade and

Industry. After obtaining a DTI Certificate of Registration, the next step is to

proceed to the Barangay Hall and obtain a Barangay Certificate of Business

Registration. The next step is to register the business at the City Hall and

apply for a Mayor’s Business Permit. After that, the registrant will proceed to

the Bureau of Internal Revenue and register as a sole proprietorship, obtain a

Certificate of Authority to Print form, and buy special books. After which, the

receipts and invoices should be printed at a print shop accredited by the BIR.

The book of accounts and Printer’s Certificate of Delivery of Receipts and

Invoices should also be acknowledged and stamped by the BIR. The

Certificate of Registration will be obtained. After which the employer and the

employees of the business should apply for Social Security System,

Philippine Health Insurance Corporation and PAG-IBIG memberships.

The requirements and steps in organizing a sole proprietorship are

summarized in the chart below. Also, the timeline of feasibility study, and the

hiring and training of applicants are shown below.

49
50
Figure 5.1 Gantt chart of the feasibility study

51
Figure 5.2 Gantt chart of the registration of the business

Figure 5.3 Gantt chart of the hiring and training of applicants

Figure 5.3 Organizational Structure Chart

OWNER / MANAGER

ASSISTANT
HELPERS
B. Duties, Responsibilities, and Qualifications

Recruitment process will only be applicable to the helpers of the

agency, in which said procedure will be based on the qualifications listed on

the table below. The assistant will be hired directly by the proprietor and the

bookkeeper will be outsourced to lessen expenses.

Table 5.1 Position; job qualifications and description of the employees

JOB QUALIFICATIONS AND DESCRIPTIONS OF EMPLOYEES

Position Job Qualifications Job Description
1. Owner/Sole Proprietor  Has authority and is
responsible for the
over-all affairs of the
business
 Communicate with
customers with
unsettled accounts
2. Assistant Excellent interpersonal  Determine
and communication competitive
skills advantages
Marketing experience  Disseminate
Pleasing personality information through
the internet and ads
 Networking with
anyone who could be
a possible customer
 Handles queries and
clients requests and
 complaints
 Frontline of the
business
 Collects and handles
reports and
documents
 Collects payments
from customers and
hands it over to the
owner.
3. Bookkeeper Experience in clerical  Keeps a record of all
procedures the transactions that
(bookkeeping) have occurred
Trustworthy and honest  Verifies, allocates and
posts details of the
transactions to the
journals
 Summarizes and
transfers data to
general ledger
 Prepares the financial
statements
4. Helpers Experience in  Are hired by the
housekeeping or being company’s clients to
a household helper. render the services of
Must be 18 years old being a household
and above. help.
Knows how to speak
Filipino.

C. Business Policies:

The policies of the business will be divided into nine sections, namely:

(1) The Preface and (2-9) Articles I-VIII. Each section has its own designation

and definition with regards to the proper management of the agency.

 PREFACE

By establishing margins for acceptable behavior and guidelines for

unsurpassed exercises in particular work states, business policies present

and offer clear communication to the employees of their expected conduct

and actions. Not only that, they instruct the proper means and techniques

with regards to the transactions of the business. In other words, they

contribute to the entire culture of the workplace for the reason that they

display proper conduct and values for the better management of the agency.

ARTICLE I
Store Policies

Section 1. Business is open from Mondays to Saturdays, 8:00 am to 5:00

pm.

Section 2. Each helper will cost an employer PHP 600.00 per month paid in

a lump amount before the deployment of the helpers, totalling PHP 7,200.00

per helper, yearly. This is equivalent to 20% of the total basic annual salary

of each helper.

Section 4. Each of the agency’s clients will be asked to remit PHP 3,400.00

monthly to the agency which will serve as the helper’s compensation. With

that, only PHP 3,000.00 will be given to the helpers, the PHP 400.00 will be

deducted by the agency for payment of the helper’s benefits.

Section 3. Each helper will be charged PHP 500.00 to serve as their training

fee.
 ARTICLE II
Contract

Section 1. The terms and conditions between the agency’s clients and the

helper shall be governed by the Contract document. Names and signatures

of the hiring client, helper, witnesses and a lawyer are required.

Figure 5.4 Contract of Employment

KONTRATA SA PAGLILINGKOD SA TAHANAN

Ang kontrata ng trabaho sa tahanan ay napagpasiyahan sa pagitan nina:
A. ( Pangalan ng Pinaglilingkuran )
Tirahan at Telepono:________________________________________

B. (Pangalan ng Kasambahay)
Civil Status:______________________ Edad:_____________
Tirahan at Telepono:________________________________________

Nagkasundo sa mga sumusunod na tuntunin at kondisyon:

1. Lugar ng trabaho:______________________________________________
(Hindi maaaring italaga sa gawaing commercial, industrial o
agricultural enterprise)

2. Tagal/Panahon ng trabaho: Mula sa __________________________

Hanggang sa ______________________

3. Uri ng trabaho:
___________________________________________________________
(yaya, kusinera, hardinero, labandera, etc.)

4. Mga tungkulin at Gawain:

a. __________________________________________________________________
b. __________________________________________________________________
c. __________________________________________________________________

5. Oras ng trabaho:
 __________________________________________________________________
(Para sa kasambahay naeded 15 hanggang 17, hindi sila
pinahihintulutang magtrabaho ng higit sa 8 oras kada araw, 40
oras kada lingo, at sa pagitan ng alas diyes ng gabi hanggang
ala sais ng umaga)

6. Lingguhang araw ng pahinga:

________________________________________________

7. Pasahod:
a. Halaga ng buwanang sahod:
________________________________________________
(cash)
b. Dagdag sa sahod paglumampas sa itinakdang oras ng trabaho:
________________________________________________
(halaga ng sahod bawat oras ng trabaho)
c. Takdang araw ng pagbayad ng sahod:
___________________________________
( petsa ng buwanang sahod)

8. Mga pinahihintulutang kaltas sa sahod:

_______________________________________
(Kasama ang kontribusyon sa PhilHealt, PAG-IBIG, SSS kung ang sahod
ay P5000 pataas)
9. Mga Benepisyo:
a. Taunang leave na 5 araw na may bayad (dapat gamitin)
b. First-aid assistance kapag nagkasakit.

10. Iba pang mga benepisyo:

___________________________________________________
________________________________________________________________________

11. Kasunduan tungkol sa pagkakautang, kung meron man:

__________________________
________________________________________________________________________

12. Kasunduan tungkol sa gastos sa deployment, kung meron man:

________________________________________________________________________
(Ang mga ginastos sa deployment ay makukuha muli ng
pinaglilingkuran ng kasambahay kung siya ay di tumagal ng 6 na
buwan sa pinalilingkuran)
 13. Kasunduan sa pagtatapos ng trabaho:
_________________________________________
________________________________________________________________________

14. Bayad sa pagwawakas ng trabaho/kontrata:

____________________________________
(bayad na 15 araw na sahod kung ang kasambahay ay tinggal sa
trabaho ng di makatarungan)

15. Iba ang kasunduan, kung meron man:

_________________________________________
________________________________________________________________________

16. Kapag natapos ang termino ng kasunduan ay maaaring

awtomatikong ulitin ito at maging epektibo kung patuloy na
maninilbihan ang kasambahay sa pinaglilingkuran.

17. Kapag mangyari na may pagtalunan ang magkabilang panig, ito

ay maaaring pagkasunduan muna sa barangay at kung walang
mangyayari ay iaakyat ito sa DOLE-Regional/Provincial?Field Office na
nasasakop sa lugar ng trabaho.

18. Ano mang pagbabago sa kasunduan ay may bisa lamang kung

ito ay napagkasunduan at may katumbas na kasulatan na nilagdaan ng
dalwang panig.

Ang Pinaglilingkuran ay nangangakong ,agbiigay ng kasambahay ng lahat ng

mga benepisyong itinakda sa ilalim ng batas.
Ang pinaglilingkuran at kasambahay ay kusang sumasang-ayon sa mga
kondisyong nabanggit sa kontratang ito.
________________________ ________________________
(Lagda ng Pinaglilingkuran) (Lagda ng
Kasambahay)
________________________ ________________________
(Petsa ng Paglalakda) (Petsa ng
Paglalakda)
________________________ ________________________
(Saksi) (Saksi)
 ____________________
(Abogado)
1
Basis for the said contract was of DOLE’s (Department of Labor and
Employment), since it’s stated in the country’s law.

Section 2. The contract between the agency’s clients and the helper shall

be renewed yearly.

Section 3. Certificate of Employment will be created at the time the

Contract of Employment will be formed. Both parties, the employer and the

agency, of the contract will have a copy of the said document, in which it will

be created at the time the trainees will be deployed.

Figure 5.5 Certificate of employment

DATE
______________________

CERTIFICATE OF EMPLOYMENT

To Whom It May Concern:

This is to certify the Mr./Ms. ________________________________ has been

employed with me as Kasambahay doing general ordinary household chores
for (number of years employed) from _________________ to __________________.

This certification is being issued upon his/her request for whatever

purpose it may serve.

________________________
Employer
Section 4. Renewal of contract between the agency and the employer is

upon the discretion of the employer. The contract shall only last up to 1 year

and an agency fee shall be collected to the employer.

Section 5. A helper’s contract with the agency will only last up to one (1)

year. It is the helper’s discretion to renew the contract with the agency.

ARTICLE III
Pre-deployment Requirement

Section 1.(1) Below is the list of the requirements needed before the

training and deployment of each helpers:

a. Medical Certificate

b. Barangay and Police clearance

c. National Bureau of Investigation Clearance

d. NSO Birth Certificate

(2)Cost of the foregoing shall be borne by the helper.

Section 2. Below is the list of requirements the employer shall submit

upon the application for the services offered by the company:

a. Police or Barangay clearance

b. National Bureau of Investigation Clearance

c. NSO Birth Certificate

 ARTICLE IV
Termination of Service

Section 1. Neither the domestic worker nor the employer may terminate the

contract before the expiration of the term except for grounds presented in

section 2 and 3 of this article. If the domestic helper is unjustly dismissed,

the domestic helper shall be paid the compensation already earned plus 15

days of work by way of indemnity. If the domestic helper leaves without

justifiable reason, any unpaid salary due not exceeding the equivalent 15

days of work shall be forfeited. In addition, the employer may recover from

the domestic worker costs incurred related to the deployment expenses.

Section 2. Termination initiated by the domestic worker- The domestic

worker may terminate the employment relationship at any time before the

expiration of the contract for any of the following causes:

a. Verbal or emotional abuse of the domestic helper by the

employer or any member of the household.

b. Inhuman treatment of the domestic helper.

c. Commission of crime or offense against the domestic helper.

d. Violation of the terms and conditions of the employment

contract and other standards set forth by aw

e. Any disease prejudicial to the health f the domestic helper, the

employer r members of the household.

f. Other causes analogous to the foregoing

Section 3. Termination initiated by the employer- an employer may

terminate the services of the domestic worker at any time before the

expiration of the contract, for any of the following causes:

a. Misconduct of wilful disobedience by the domestic worker of

the lawful order of the employer in connection with the former’s

work

b. Gross habitual neglect or inefficiency by the domestic helper

in the performance of duties.

c. Fraud of willful breach of trust reposed by the employer.

d. Commission of a crime or offense by the domestic worker

against the person of the employer or any immediate member of

the employer’s family.

e. Violation of the domestic worker of the terms and conditions of

the employment contract and other standards set forth by law.

f. Any disease prejudicial to the health of the domestic helper,

the employer or members of the household

g. Other causes analogous to the foregoing.

ARTICLE V
Liability

The agency shall handle any loss or damages made by the household

helper during the duration of the contract. The agency shall set the domestic

helper liable of the loss or damages. In instances that the employer wants to

change the household helper for valid reasons, the agency shall provide a
replacement as soon as possible and if a month has passed and the agency

was not able to provide any replacement, the employer is entitled to get 75%

of the amount paid to the agency.

ARTICLE IV
Training

Section 1. The trainees will undergo a five-day training to teach them basic

knowledge about the following: (1) housekeeping, (2) laundry and ironing, (3)

cooking, and (4) child care.

Section 2. Classroom policies, aside from the rules that will be provided by

the hired instructor, will be observed by the applicants for the duration of

their daily classes. A copy of classroom policies will be posted inside the

classroom for a continuous reminder of what should be observed during

classes. The classroom policies are the following:

1. Cellular phones are not allowed to be used during the class, except

during emergencies.

2. Trainees are expected to be in decent attires.

3. Trainees are expected to attend their classes on time.

4. No food shall be allowed to be brought inside the classroom.

5. No one, except for the trainees and the instructor, shall be allowed

to be inside the classroom during classes.

 ARTICLE V
Board and Lodging

Section 1. The agency shall provide the household helpers with board and

lodging on the duration of their training. The agency shall provide the basic

needs such as food, of the household helpers as long as they stay with the

agency.

Section 2. House rules will be provided for the betterment of the boarding

quarters. Each room will have a copy of the house rules for each of the

trainees’ awareness. The said house rules are the following.

1. Wake-up time will be at five in the morning (5:00 AM).

2. The remaining time before the start of the classes will be allotted for

breakfast and other morning routines.

3. Morning sessions will start at 8:00 AM and will and end at 11:00 AM

4. Lunch will immediately follow after the morning sessions.

5. Afternoon sessions will start at 1:00 PM and will end at 4:00 PM.

6. Dinner will follow.

7. Lights out will be at 10:00 PM

8. Strictly NO MALES are allowed inside the quarters

ARTICLE VI
Employee of the Establishment

Section 1. (1) The employee is expected to be at the office at around 7:00

in the morning, and leave at 5:00 in the afternoon.

 (2) Arrival after thirty minutes of the allotted time will be considered

late; and tardiness of five, either consecutive or not, without a valid reason

will be considered as one absence.

(3) The employee who is absent for a total of seven (7) days, either

consecutive or not, without a valid reason will be subject to termination of

employment.

(4) Employee subject under termination of employment will be

assessed by the proprietor as to whether or not the employee’s contract will

be fully terminated.

Section 2. In regards to uniform, any casual attire is allowed as long as it is

decent and proper.

Section 3. (1) The employee is only allowed a total of seven leaves of

absence. Beyond that, the employee will be subject to deduction from

payroll.

(2) A female employee is subject to a maternity leave, three months

for CS (Cesarean Section) delivery patients and one month for normal

delivery patients.

(2) Furthermore, a male employee is subject to a paternity leave;

seven days in total.

Section 4. If ever the employee desires to resign from the establishment, a

resignation letter is required to be given to the manager for assessment.

Section 5. If the employee performs any abusive or inappropriate acts

against the agency such as: (1) theft, (2) embezzlement, (3) misconduct, and
(4) unethical behaviour, he or she will be subject to immediate termination of

employment.

ARTICLE VII
Compensation

Section 1. Payment to the helpers is given to the agency, and the agency

gives the salaries to the helpers.

Section 2. (1) Payment to the employee is given every fifteenth (15 th) day of

the month and the thirtieth (30th).

Section 3. Computation of Payroll

(1)For Region IX, PHP 280.00 per day is considered as the minimum

wage for rank and file employees as provided by DOLE (See Appendix), an

average of 26 days per month is identified; 4 of which are Sundays. A

minimum wage rate of PHP 3,000.00 monthly will be observed for the hired

house helpers. The payment for the assistant will be made on a cash basis

every 15th and 30th of the month by the manager. The business shall abide

the sections of the Labor Code of the Philippines so long as it’s capable and

required.

(2) According to the Kasambahay Law of the Philippines, the minimum

wage rate for “kasambahay” in chartered cities, like Zamboanga, is PHP

2,000.00 monthly. However, the proponents believe that the additional

training of the “kasamabahays” of the business will require a higher pay.

Therefore, the monthly wage that will be observed for every hired house

helper is three thousand pesos (PHP 3,000.00).

Section 4. Format of Payroll Slip

Format of each payroll slip will have the necessary particulars (basic

and gross salary, list of deductions, and total), in order for the helper and

employee to comprehend the amount of salary they will receive on a

particular day.

Figure 5.7 Payroll Slip of agency’s employee

PAY SLIP
Name: _________________________________________ Date:
___________________________
Pay Period: _____________________________________

Basic Wage
Gross Salary
Less:
SSS Contribution
PhilHealth
Contribution
PAG-IBIG
Contribution
Total Deductions
Take Home Pay

I agree with the above wage computation and acknowledge receipt of the same.
________________________________
Signature of Employer
 VI. FINANCIAL ASPECT

A. Financial Assumptions

Revenues

The revenue to be generated will consist of the payment to the helper,

agency fee and training fee. The total amount that will be given to the

helpers amounts to PHP 3,000.00. The agency fee amounts to PHP 7,200.00

per helper, yearly. The training fees that will be collected from the helpers

amount to PHP 500.00 and will only be charged once. The change in

revenue is based on the increase of the projected demand. For the first year,

the number of trainees will be equally divided for the 1 st to 3rd quarter,

specifically 16 trainees. However, for the last quarter of the first year, there

will only be 15 trainees.

Training Costs

Two instructors will be hired for the training of the applicants; one is for

housekeeping, cooking and laundry, and the other is for child care. The

instructor for housekeeping, cooking and laundry has charges a fee of PHP

450 per day. Assuming that she will teach the trainees for four days,

henceforth her fee for one training curriculum is PHP 1,800.00. The child care

instructor, on the other hand, has a fee of PHP 560.00; assuming the

instructor will only teach for one day, same amount will still be considered as

his fee for one curriculum. The total training costs for one curriculum will be

PHP 2,360.00.
 The computation for the training cost is based on the number of

sessions conducted per year. Thus, training cost is computed by dividing the

number of households in the projected demand by the number of trainees

that can be accommodated per session. A total of 8 sessions will be required

for the first year. The projected increase demand for the succeeding years

range from 3 to 4 helpers thus, will only require 1 session. The change in the

training cost is based on the increase of the projected demand.

Transportation Costs

With the assumption of a 60:40 ratio, 60 being the percentage of

applicants within Zamboanga City and 40 being the percentage of applicants

outside the city, the projected number of applicants outside Zamboanga City

is computed by multiplying the total number of captured demand by 40%.

Transportation cost is determined by multiplying the projected number of

applicants outside the city per year by the average price of the bus rates

provided by the Zamboanga City Terminal. The average bus rate is PHP

264.00 computed by dividing the total price of bus rates by the total number

prices. The yearly change in the transportation cost is due to the increase in

the projected demand.

Food Costs

Projected food costs is computed by multiplying PHP 20.00 (the

estimated budget for one serving per trainee staying in) by the total number

of meals per week, then multiplying the result to the projected demand. The
yearly difference in food costs is based on the increase of the projected

demand.

Salaries Expense

Expenses on salaries will be the accumulated employees’ salaries of

the agency per year. Each employee has his or her own amount of salary,

and deducted from the said salary are the benefits provided by the agency:

SSS, Philhealth and Pag-IBIG with the said deductions and employer’s share

based on tables (see Appendix) provided by the said government

institutions. There is no expected increase in the salaries of the employees.

Advertising Expense

The proponents estimated an amount of PHP 1,500.00 budgeted for

one year. Hence, the said amount will be the same for the five year interval.

Restoration Costs

Restoration Costs are only inputted in the first year, since they are only

done once before the start of the operations. The restoration process will last

for 11 days. The carpenter charges a labor fee of PHP 350.00 per day and his

assistant charges a labor fee of PHP 200.00 per day. Total restoration costs

will be computed by adding the total cost of inputs and materials and total

labor cost needed for the restoration.

Office Supplies

Supplies expense will to be incurred every year. There is no change in

the cost of supplies because it is expected that all of the supplies will be
exhausted in one year and there will be a yearly purchase of supplies. The

proponents have projected an amount of PHP 919.00 for the supplies.

Utilities Expense

Usage and the different rates of utilities, specifically electricity and

water, are based on the figures given by the different providing

establishments in Zamboanga City: Rates for Electricity is provided by

Zamboanga City Electric Cooperative (ZamCElCo), and rates for water are

provided by the Zamboanga City Water District. The estimated cost of

electricity is computed by multiplying the total energy consumption by the

rate of electricity per kilowatt hour. The total energy consumption is

computed by dividing the total watt-hours used by the number of watt hours

per kilowatt hours.

The cost of water consumption for the quarters and office will be

computed separately. The total water consumption for the quarters is

computed by multiplying the number of average number of litres per day by

the total number of trainees. The product will then be multiplied by 7 days

(total number of days for training). For the office, we assumed the total water

consumption to be based on one person which will then be multiplied by the

total number of working days which is 24 days. After which, the total amount

will be divided by 1000 liters, to convert it from litres to cubic meters. The

amount will then be multiplied by the rate from the Zamboanga City Water

District. For the first year, the number of trainees will be equally divided for

the 1st to 3rd quarter, specifically 16 trainees. However, for the last quarter of
the first year, there will only be 15 trainees. The change in the cost of energy

and water consumption is a result of the increase in the projected demand.

For telecommunications the rate per month given by PLDT is PHP

990.00, hence the yearly cost of the said utility is PHP 11,880 which is

computed by multiplying the rate per month by 12 months.

Depreciation Expense

The business shall follow the Straight-line method of depreciation for

all of the equipment. The table of estimated useful life of property, plant and

equipment provided by the Commission on Audit is used as basis for the

useful life of the equipment. The projected yearly depreciation expense is the

total of the depreciation expense per year of all the equipments. The

depreciation expense will not change for the 5-year interval.

Licenses and Fees

Computation for the yearly expenses related to licenses and fees with

regards to the business is the total cost of the documents, books and other

significant files. Under the cost for the Mayor’s Permit, 3.5% of the capital

will be included for the first year and 3.5% of the income for the other four

years. License Fee is only expensed every two years; and the DTI Permit Fee

and Filing Fee is only expensed once.

Investment
 An amount of PHP 400,000.00 shall be invested my Mr. Ian Nicole S.

Enriquez, the proprietor of the business.

Withdrawals

An amount of PHP 90,000.00 shall be withdrawn from the investment

of PHP 400,000.00, henceforth; said amount will be the same within the 5-

year interval.

Miscellaneous Expenses

Miscellaneous expenses are estimated to be PHP 200.00 per month.

 B. Financial Statements

HELP!
Projected Statement of Recognized Income and Expense
For the Five - year Period Ending December 31

Year 2016 2017 2018 2019 2020

₱ ₱ ₱ ₱ ₱
Revenues (1)
2,059,922.00 3,165,352.00 3,309,352.00 3,501,432.00 3,645,352.00
Less: Expenses (2) 1,743,233.65 2,684,269.27 2,806,148.08 2,950,725.12 3,070,518.38
Net Income (loss) before ₱ ₱ ₱ ₱ ₱
taxes 316,688.35 481,082.73 503,203.92 550,706.88 574,833.62
Less: Income tax expense
72,039.49 121,357.80 128,193.77 143,394.71 151,115.27
(13)
Net Income (loss) after ₱ ₱ ₱ ₱ ₱
taxes 244,648.87 359,724.93 375,010.15 407,312.17 423,718.35

HELP!
Projected Statement of Changes in Owner’s Equity
For the Five - year Period Ending December 31

Year 2016 2017 2018 2019 2020

₱ ₱ ₱ ₱ ₱
Enriquez, Capital
0.00 554,648.87 824,373.80 1,109,383.95 1,426,696.12
Add: Additional Investment 400,000.00 - - - -
Net Income 244,648.87 359,724.93 375,010.15 407,312.17 423,718.35
Less: Withdrawals 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00
 ₱
Total ₱ ₱ 1,109,383.9 ₱ ₱
554,648.87 824,373.80 5 1,426,696.12 1,760,414.47

HELP!
Projected Statement of Cash Flows
For the Five - year Period Ending December 31

Year 2016 2017 2018 2019 2020

Cash flows from Operating
Activities
Cash Receipts ₱ ₱ ₱ ₱ ₱
Less: Cash paid for 2,106,900.00 3,169,500.00 3,313,500.00 3,506,000.00 3,649,500.00
Cost of Services (4) 46,978.00 4,148.00 4,148.00 4,568.00 4,148.00
Office Supplies 919.00 919.00 919.00 919.00 919.00
Operating and
Administrative 69,462.00 55,348.87 64,835.68 59,556.72 66,957.98
Expenses (5)
Salaries Expense (6) 1,443,080.40 2,306,180.40 2,404,820.40 2,536,340.40 2,634,980.40
Income Tax Expense 72,039.49 121,357.80 128,193.77 143,394.71 151,115.27
Cost of Benefits to
employees
SSS (7) 114494.40 184424.40 192416.40 203072.40 211064.40
PHC (7) 49,200.00 80,700.00 84,300.00 89,100.00 92,700.00
PAG-IBIG (7) 31,020.00 49,920.00 52,080.00 54,960.00 57,120.00
Total 1,827,193.29 2,802,998.47 2,931,713.25 3,091,911.23 3,219,005.05
Net cash flows from Operating
₱ ₱ ₱ ₱ ₱
Activities
279,706.72 366,501.53 381,786.75 414,088.77 430,494.95

Cash flows from Investing

Activities
Less: Cash paid for
₱
Restoration of Building - - - -
28,281.25
Purchase of Equipment 68,534.00 - - - -

Net cash flows from Investing

(₱
Activities - - - -
96,815.25)

Cash flows from Financing

Activities
₱
Investment
400,000.00
Less: Cash Paid for
90,000.00 90,000.00 90,000.00 90,000.00 90,000.00
withdrawals
Net cash flows from financing
₱ (₱ (₱ (₱ (₱
activities
310,000.00 90,000.00) 90,000.00) 90,000.00) 90,000.00)
Total Cash flows for the ₱ ₱ ₱ ₱ ₱
year 492,891.47 276,501.53 291,786.75 324,088.77 340,494.95
Cash, Beginning - 492,891.47 769,393.00 1,061,179.75 1,385,268.52
₱ ₱ ₱ ₱ ₱
Cash, End
492,891.47 769,393.00 1,061,179.75 1,385,268.52 1,725,763.47

HELP!
Projected Statement of Financial Position
For the Five - year Period Ending December 31

Year 2016 2017 2018 2019 2020

Assets
Current Assets
₱ ₱ ₱ ₱ ₱
Cash
492,891.47 769,393.00 1,061,179.75 1,385,268.52 1,725,763.47
Non-current Assets
Property, Plant and
Equipment
₱ ₱ ₱ ₱ ₱
Equipment – net (3)
61,757.40 54,980.80 48,204.20 41,427.60 34,651.00
Total Assets ₱ ₱ ₱ ₱ ₱
 554,648.87 824,373.80 1,109,383.95 1,426,696.12 1,760,414.47

Liabilities and Owner’s

Equity
Current Liabilities

Owner’s Equity
₱ ₱ ₱ ₱ ₱
Owner, Capital
554,648.87 824,373.80 1,109,383.95 1,426,696.12 1,760,414.47
₱ ₱ ₱ ₱ ₱
Total Liabilities and Equity
554,648.87 824,373.80 1,109,383.95 1,426,696.12 1,760,414.47

C. Supporting Schedules

Supporting Schedules To The Financial Statements (In Philippine Peso)

Year 2016 2017 2018 2019 2020
Schedule 1
Revenues: 2,106,900.00 3,169,500.00 3,313,500.00 3,506,000.00 3,649,500.00
Less: Cost of Services
Training (8) 18,880.00 2,360.00 2,360.00 2,360.00 2,360.00
Transportation (9) 1,638.00 528.00 528.00 528.00 528.00
Food (10) 26,460.00 1,260.00 1,260.00 1,680.00 1,260.00
Total 46,978.00 4,148.00 4,148.00 4,568.00 4,148.00
Total Revenues 2,059,922.00 3,165,352.0 3,309,352.0 3,501,432.00 3,645,352.0
 0 0 0

Schedule 2
Restoration Costs 28,281.25 - - - -
Office Supplies 919.00 919.00 919.00 919.00 919.00
Salaries Expense 1,443,080.40 2,306,180.40 2,404,820.40 2,536,340.402,634,980.40
SSS 114494.40 184,424.40 192,416.40 203,072.40 211,064.40
PhilHealth 49,200.00 80,700.00 84,300.00 89,100.00 92,700.00
PAG-IBIG 31,020.00 49,920.00 52,080.00 54,960.00 57,120.00
Advertising Expense 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Miscellaneous Expense 200.00 200.00 200.00 200.00 200.00
Utilities Expense 36,602.00 30,828.00 30,828.00 30,873.00 30,828.00
Depreciation Expense 6,776.60 6,776.60 6,776.60 6,776.60 6,776.60
Licenses and Fees 31,160.00 22,820.87 32,307.68 26,983.72 34,429.98
2,684,269.2 2,806,148.0 3,070,518.3
Total Expenses 1,743,233.65 2,950,725.12
7 8 8

Schedule 3
Equipment – Gross 68,534.00 61,757.40 54,980.80 48,204.20 41,427.60
Less: Deprecition 6,776.60 6,776.60 6,776.60 6,776.60 6,776.60
Equipment – Net 61,757.40 54,980.80 48,204.20 41,427.60 34,651.00

Schedule 4
Training 18,880.00 2,360.00 2,360.00 2,360.00 2,360.00
Transportation 1638.00 528.00 528.00 528.00 528.00
Food 26460.00 1260.00 1260.00 1680.00 1260.00
Total 46,978.00 4,148.00 4,148.00 4,568.00 4,148.00

Schedule 5
Advertising Expense 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Miscellaneous Expense 200.00 200.00 200.00 200.00 200.00
Utilities Expense 36,602.00 30,828.00 30,828.00 30,873.00 30,828.00
Licenses and Fees 31,160.00 22,820.87 32,307.68 26,983.72 34,429.98
Total Operating Expense 69,462.00 55,348.87 64,835.68 59,556.72 66,957.98

Schedule 6
Salary of Employee 136,100.40 136,100.40 136,100.40 136,100.40 136,100.40
Salary of Helpers 1,306,980.00 2,170,080.00 2,268,720.00 2,400,240.002,498,880.00
2,306,180.4 2,404,820.4 2,634,980.4
Salaries Expense 1,443,080.40 2,536,340.40
0 0 0

Schedule 7
SSS
SSS Expense 1st quarter 12,806.10 46,106.10 48,104.10 50,768.10 52,766.10
SSS Expense 2nd quarter 23,462.10 46,106.10 48,104.10 50,768.10 52,766.10
SSS Expense 3rd quarter 34,118.10 46,106.10 48,104.10 50,768.10 52,766.10
SSS Expense 4th quarter 44,108.10 46,106.10 48,104.10 50,768.10 52,766.10
SSS Expense 114,494.40 184,424.40 192,416.40 203,072.40 211,064.40

PhilHealth
PhilHealth Expense 1st qtr 5,175.00 20,175.00 21,075.00 22,275.00 23,175.00
PhilHealth Expense 2nd qtr 9,975.00 20,175.00 21,075.00 22,275.00 23,175.00
PhilHealth Expense3rd qtr 14,775.00 20,175.00 21,075.00 22,275.00 23,175.00
PhilHealth Expense 4th qtr 19,275.00 20,175.00 21,075.00 22,275.00 23,175.00
PhilHealth Expense 49,200.00 80,700.00 84,300.00 89,100.00 92,700.00

PAG-IBIG
Pag-IBIG Expense 1st qtr 3,480.00 12,480.00 13,020.00 13,740.00 14,280.00
Pag-IBIG Expense 2nd qtr 6,360.00 12,480.00 13,020.00 13,740.00 14,280.00
Pag-IBIG Expense3rd qtr 9,240.00 12,480.00 13,020.00 13,740.00 14,280.00
Pag-IBIG Expense 4th qtr 11,940.00 12,480.00 13,020.00 13,740.00 14,280.00
PAG-IBIG Expense 31,020.00 49,920.00 52,080.00 54,960.00 57,120.00

Schedule 8
Total Fee per session 2,360.00 2,360.00 2,360.00 2,360.00 2,360.00
x Sessions per year 8 1 1 1 1
Total Training Fee 18,880.00 2,360.00 2,360.00 2,360.00 2,360.00

Schedule 9
Captured Market 63 3 3 4 3
x 40% 26 2 2 2 2
x average bus rate 264.00 264.00 264.00 264.00 264.00
Transportation Cost 1,638.00 528.00 528.00 528.00 528.00

Schedule 10
Captured Market 63 3 3 4 3
x Average cost per week 420.00 420.00 420.00 420.00 420.00
Food Costs 26,460.00 1,260.00 1,260.00 1,680.00 1,260.00

Schedule 11
Water 3,802.00 1,983.00 1,983.00 2,028.00 1,983.00
Telecommunication 11,880.00 11,880.00 11,880.00 11,880.00 11,880.00
Electricity 20,920.00 16,965.00 16,965.00 16,965.00 16,965.00
Total Utilities 36,602.00 30,828.00 30,828.00 30,873.00 30,828.00

Schedule 12
Estimated
 Item Cost Useful Life
(A) (B) (A÷B)
Electric Fan 8,393.00 5 1,678.60
Dining Table 1,695.00 10 169.50
Refrigerator 10,395.00 10 1,039.50
Desk 6,000.00 10 600.00
Monoblock 3,990.00 10 339.00
Whiteboard 5,500.00 10 550.00
Desktop Computer 15,000.00 5 3,000.00
TOTAL 6,776.60

Schedule 13
Net Income before Tax 316,688.35 481,082.73 503,203.92 550,706.88 574,833.62
Add: Depreciation Exp 6,776.60 6,776.60 6,776.60 6,776.60 6,776.60
Total 323,464.95 487,859.33 509,980.52 557,483.48 581,610.22
Less 250,000.00 250,000.00 500,000.00 500,000.00 500,000.00
x Tax Rate 0.30 0.30 0.32 0.32 0.32
Total 22,039.49 71,357.80 3,193.77 18,394.71 26,115.27
Add 50,000.00 50,000.00 125,000.00 125,000.00 125,000.00
Income Tax Expense 72,039.49 121,357.80 128,193.77 143,394.71 151,115.27

D. Financial Ratios
 Year 2016 2017 2018 2019 2020
Revenue Growth Rate - 54% 5% 6% 4%
Cost of Service Growth
Rate - -91% 0% 10% -9%
Expenses Growth Rate - 54% 5% 5% 4%
Net Income Growth Rate - 47% 4% 9% 4%
Net Profit Rate 12% 11% 11% 12% 12%
Contribution Margin per
Helper 47,754 48,437 48,440 48,437 48,445
BEP 36.50 55.42 57.93 60.92 63.38
BEP / month 4 5 5 6 6
Net Cash Generated for ₱
the Period - Operations ₱ 279,706.72 ₱ 366,501.53 ₱ 381,786.75 ₱ 414,088.77 430,494.95
₱
NCG ₱ 492,891.47 ₱ 276,501.53 ₱ 291,786.75 ₱ 324,088.77 340,494.95
 Financial Analysis
 The business is projected to be profitable throughout the projection period

with an average Net Profit rate of 11.6% per annum.

 Highest Net Income growth is projected to be during the second year of

operations. This is attributable to two drivers: (a) the significant decrease

in cost of services which is projected to decrease by 91% in 2017 and (b)

the highest Revenue growth rate of 54% is projected to be in the same

year.

 The same drivers contributed to the increase in Contribution Margin per

helper. Due to this, Break-even point is lowest in 2016.

 Average monthly break-even point is 5.2. This indicates that to be able to

reach the break-even point, the business needs to deploy 6 helpers every

month.

 The business is expected to be highly liquid with Net Cash Generated from

operations averaging at PHP 374,515.74 throughout the projection period.

 Payback period for Mr. Enriquez’s investment is computed to be 4.31years

based on the Net Cash Generated for the first year of operations,

excluding his investment of

PHP 400,000.00.
 VII. SOCIO-ECONOMIC RESPONSIBILITY

Employment

With the unemployment rate of 3.4 in Zamboanga City, the opening of

the business will provide employment opportunities to a lot of willing

applicants, they will only have to submit a few identifying documents and

undergo training. The applicants will be hired as long as they meet the

requirements and are competent enough to work. This will be a big

opportunity to those who needs to find a work to support their family or

provide their own needs. The employees will now have a stable source of

income. Instead of resorting to theft, prostitution or other vices and crimes,

they will have the opportunity to work in an honest way.

Income for the Government

The business can contribute income to the government through taxes.

Once the owner earns a profit, part of it will be paid to the government in the

form of tax. The taxes collected by the government will help the people in

the community. Through this, the government can use this for projects like

building infrastructures such as schools and hospitals.

Feeding Program

On the last Sunday, every month, the business will hold a feeding

program on a selected orphanage in the city. The funds will be raised by

soliciting from the helper’s employers and other willing donors. The

collection will be used to buy the necessary ingredients for the said event,

but the helpers will be the one to cook the meals that will be served. This

way, the helpers could give back to the less fortunate by practicing their

profession.

Helper Hotline

Since the business is already inclined to taking care of the welfare of

household helpers in the city, serving as a hotline for abused helpers would

be another way to give back to the soceity, specifically those who are in this

field of profession. The business will be the one to contact necessary

organizations that could aid in saving the abused helper.

VIII. RECOMMENDATION

In supposition, based on the different aspects of the study, a helper

agency in Zamboanga City is highly feasible. Referenced from the study’s

marketing aspect; the market acceptability, which is equal to 18.25%, is

more than enough for the business to be profitable. An analysis of the

financial aspect of the study illustrates that the first year of operations will

be profitable despite the cost of services. The second year of operations will

have the largest growth in profitability with a rate of 47%. This is due to the

significant decrease in expenses caused by the elimination of costs that are

only related to the first year of operations. For the succeeding years, the

business’ income will gradually grow at an average rate of 4.2%.

Quarterly, working capital requirements will be estimated and cash not

needed as working capital for the succeeding quarter will be placed in a

long-term deposit with the Development Bank of the Philippines. This way,

the money will be earning interest income rather than keeping the money

idle. The interest earned would add to the money allocated for the

improvement of the service to protect the interest of the helpers, the

employers and the business. Likewise, money would be used to supplement

the company’s existing Corporate Social Responsibility.

Contingency Plan
 If the proposed business will not succeed, further research will be

conducted and new business strategies will be implemented.

If this study will not be pursued, this paper will serve as reference for

future researches of students under the School of Management and

Accountancy as well as the library.

IX. APPENDICES
 Survey Questionnaire Form

Ateneo de Zamboanga University

La Purisima Street, Zamboanga City

Name (Optional):
Address:

Good Day! We, students of the Ateneo de Zamboanga University, are conducting a
feasibility study of an agency that provides residents of the city with well-trained household
helper. In connection to this, we kindly request you to please answer the following questions
in this survey. Your cooperation and support in completing this will be greatly appreciated.
Thank You!

Put a check mark on the corresponding answer of your choice.

1. How much is the family’s monthly 15.
income? 16.
17. 2.d. If yes, how much are you
 Below Php 30,000 willing to pay them?
 Php 30,000 – 50,000  Php 1,000-Php 1,499
 Above Php 50,000  Php 1,500 -Php 1,999
2.  Php 2,000-Php 2,499
3. Do you currently have a household  Php 2,500-Php 2,999
helper?  Php 3,000 above
4. *If yes proceed to 2.a., if no, 18.
proceed to 2.c. 19. Are you having difficulty in finding
 Yes a helper?
 No  Yes
5.  No
6. 2.a. If yes, how many? 20.
 1 21. If there’s an agency that provides
 2 household helpers, would you avail
 3 it?
 4 and above  Yes
7.  No
8. 2.b How much are you currently 22.
paying each of them? 23. 4.a. If yes, how much are you
 Php 1,000-Php 1,499 willing to pay them?
 Php 1,500 -Php 1,999  Php 1,000-Php 1,499
 Php 2,000-Php 2,499  Php 1,500 -Php 1,999
 Php 2,500-Php 2,999  Php 2,000-Php 2,499
 Php 3,000 above  Php 2,500-Php 2,999
9.  Php 3,000 above
10. 2.c. If no, are you willing to hire a 24.
household helper? 25. If you were to choose where your
 Yes maid would specialize in, what
 No specialization would that be?
11.  Housekeeping
12.  Child Care
13.  Laundry
14.
 All-around  Others (Please specify):
26.
27. TABULATION OF ANSWERS FROM SURVEYS
28. Choices 29. No. 30. P
of ercen
Responses tage
31. 1. How much is the family’s monthly income?
32. Below PHP 30,000 33. 65 34. 1
8.73%
35. PHP 30,000 – PHP 50,000 36. 132 37. 3
8.04%
38. Above PHP 50,000 39. 150 40. 4
3.23%
41. 42. 43.
44. 2. Do you currently have a household helper?
45. Yes 46. 185 47. 5
3.31%
48. No 49. 162 50. 4
6.69%
51. 52. 53.
54. 2.a. If yes, how many?
55. 1 56. 107 57. 5
7.84%
58. 2 59. 53 60. 2
8.65%
61. 3 62. 17 63. 0
9.19%
64. 4 and above 65. 8 66. 0
4.32%
67. 68. 69.
70. 2.b. How much are you currently paying each of
them?
71. PHP 1,000 – PHP 1,499 72. 11 73. 0
5.95%
74. PHP 1,500 – PHP 1,999 75. 31 76. 1
6.76%
77. PHP 2,000 – PHP 2,499 78. 50 79. 2
7.03%
80. PHP 2,500 – PHP 2,999 81. 62 82. 3
3.51%
83. PHP 3,000 above 84. 31 85. 1
6.76%
86. 87. 88.
89. 2.c. If no, are you willing to hire a household helper
90. Yes 91. 110 92. 6
7.90%
93. No 94. 52 95. 3
2.10%
96. 97. 98.
99. 2.d. If yes, how much are you willing to pay them?
100. PHP 1,000 – PHP 1,499 101. 22 102. 2
0.00%
103. PHP 1,500 – PHP 1,999 104. 42 105. 3
8.18%
106. PHP 2,000 – PHP 2,499 107. 23 108. 2
0.91%
109. PHP 2,500 – PHP 2,999 110. 22 111. 2
0.00%
112. PHP 3,000 above 113. 1 114. 0
0.01%
115. 116. 117.
118. 3. Are you having difficulty in finding a helper?
119. Yes 120. 199 121. 6
7.46%
122. No 123. 96 124. 3
2.54%
125. 126. 127.
128. 129. 130.
131. 4. If there’s an agency that provides household
helpers, would you avail it?
132. Yes 133. 252 134. 8
5.42%
135. No 136. 43 137. 1
4.58%
138. 139. 140.
141. 4.a.If yes, how much are you willing to pay for them?
142. PHP 1,000 – PHP 1,499 143. 7 144. 0
2.78%
145. PHP 1,500 – PHP 1,999 146. 41 147. 1
6.26%
148. PHP 2,000 – PHP 2,499 149. 83 150. 3
2.94%
151. PHP 2,500 – PHP 2,999 152. 75 153. 2
9.76%
154. PHP 3,000 above 155. 46 156. 1
8.25%
157. 158. 159.
160. 5. If you were to choose where your maid would
specialize in, what specialization would that be?
161. Housekeeping 162. 50 163. 1
9.84%
164. Child care 165. 62 166. 2
4.60%
167. Laundry 168. 24 169. 0
9.53%
170. All-around 171. 102 172. 4
1.67%
173. Others (Please specify): 174. 175.
176. Cook 177. 5 178. 0
1.98%
179. Driver 180. 4 181. 0
1.59%
182. Gardener 183. 1 184. 0
.003%
185. Sales lady 186. 2 187. 0
.01%
188. Caregiver 189. 2 190. 0
.01%
191.
192.

193.

194.

195.

196.

197.

198.

199.
200. TABLE FOR SSS CONTRIBUTION
 201.

202.

203.

204.

205.

206.

207. TABLE FOR PHILHEALTH CONTRIBUTION

208.

209.

210.

211.

212. BASIS FOR PAG-IBIG CONTRIBUTION

213.

214.