PROJECT SUMMARY

NAME OF ENTERPRISE
Bugasan Ni Nyor Jose is a development of the current operation of San Jose MultiPurpose Cooperative, which is rice selling. The name of the project is named after Saint Joseph;
he is the protector of families and the catholic church. The word Nyor comes from the
Visayan language of Senyor which means somebody who is older than somebody else. The
word also implies respect for elderly. In view of the fact that respect dignifies the existence of a
person, that is why the researchers adopted the name Bugasan Ni Nyor Jose in believing that it
will offer optimum quality of service by respecting and satisfying the needs and wants of its
customers.
LOCATION
The Bugasan Ni Nyor Jose is located at the former Holy Child Academy canteen,
Benigno Aquino St., San Jose District, Pagadian City beside San Jose Parish Church and the San
Jose Multi-Purpose Cooperative.
The suppliers of Bugasan Ni Nyor Jose are within Zamboanga del Sur. For computation
purposes, the researchers shall use the Palma Golden Grains Rice and Corn Mill as the supplier.
The 19.32% of the members live in San Jose, Pagadian City. There are more than ten
stores that sell rice in the area.
DESCRIPTION OF THE PROJECT
The San Jose Multi-Purpose Cooperative started its operation in selling rice on November
15, 2011. It currently provides credit of quality and affordable rice to extend non-financial help
to its members. However, this rice provision of SJMC is exclusive for its members only, thus
non-members could not purchase the available rice of SJMC. To whatever degree, the main
purpose of Bugasan Ni Nyor Jose is to increase the population of SJMC members by attracting
the non-members to become one of active members of SJMC and also to increase the value of

the cooperative through rice selling. The researchers propose to extend services to non- members
but with higher selling price than the members.
PROJECTS LONG-RANGE OBJECTIVES
Bugasan Ni Nyor Jose listed the following long-range objectives in relation to their rice
selling project:

To attract more members through rice selling;

To increase the value of the cooperative through rice selling;

FEASIBILITY CRITERIA
The researchers consider the profitability, sustainability, and marketability of the project
in judging the feasibility of Bugasan Ni Nyor Jose.
According to the obtained data, people aged from 1 to 73 are the rice eating people .
Thus, demand for rice is high. The supplier of Bugasan Ni Nyor Jose provides good quality of
rice at a right price; consequently, the project would offer affordable price to its customers. The
Bugasan Ni Nyor Jose will classify their customers according to their potential profitability as;
butterflies, true friends, strangers and barnacles. Through this, the project will build right
relationships with the right customers and as a result the project will yield high profit.
The Bugasan Ni Nyor Jose provides the service of selling rice. The sustainability of the
project depends on its suppliers Danlugan Farmers Multi-Purpose Cooperative and Palma
Golden Grains Rice and Corn Mill. The Bugasan Ni Nyor Jose will treat its suppliers as partners
to strengthen the relationship between them. By that, the Bugasan Ni Nyor Jose will be able to
provide superior customer value and satisfaction to its customers. The population growth of
Pagadian City grows regularly; in this line, the demand for rice also increases due to the increase
of population.
Rice already gained its market for it is the most consumed cereal grain in the Philippines.
In that matter, selling rice in Pagadian City will yield high profit through flyer distribution, radio
advertisements, posters, and sufficient information dissemination from San Jose Multi-Purpose
Cooperative heads to the members.

HIGHLIGHTS OF THE PROJECT

A. History
The San Jose Multi-Purpose Cooperative has been selling rice for three
months already which started on November 15, 2011. This project is only exclusive
for the members of SJMC and the 25-kilo sack of rice is purchased through cash or on
account.
The researchers want to develop its currently operating rice selling, named by
the researchers as Bugasan Ni Nyor Jose, because the demand of rice is always high.
The researchers aim to extend the service to the non- members as well
offering the same kind of quality of rice. The members shall get a Php2.00 discount
from every kilo purchased. This is to attract the non-members to become members,
therefore increasing the population of the members and increasing the value of the
cooperative.
B .Project Timetable and Status
The rice selling project, which has started on November 15, 2011, is already
operational.

The

researchers

have

allotted

four

months

to

realize

the

development/upgrading of the current rice selling operation of SJMC.

C. Nature of Industry
Bugasan Ni Nyor Jose is a service-oriented business. It does not cultivate and
process rice to sell in the market; rather it involves buying and selling. The Bigasan
Ni Nyor Jose buys its supplies from Palma Golden Grains Rice and Corn Mill and
Danlugan Farmers Multi- Purpose Cooperative.

D. Mode of Financing

The Danlugan Farmers Multi-Purpose Cooperative requires the Bugasan ni

Nyor Jose to pay on the 15th and 30th day of the month. Purchasing is done once a
month.
The Palma Golden Grains Rice and Corn Mill requires the Bugasan ni Nyor
Jose to pay in cash and an additional Php20.00 per sack for delivery. The purchasing
is done only once a month.
E. Investment Costs
SJMC did not expense even a single centavo from their funds when they
started the project last November 15, 2011.

Upon the implementation of the

developed rice selling operation, the National Food Authority requires the Bugasan Ni
Nyor Jose to have at least Php30,000.00 capital.
MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS AND CONCLUSION ON THE
FOLLOWING:
1. Market Feasibility
The project is feasible because of the following reasons:
a. The rice constitutes the staple food of over 70 million Filipinos and
contributes 35% of the Filipinos total calorie intake;
b. Due to reason number 1, demand will always be high.
2. Technical Feasibility
The project is technically feasible because:

Store equipment are available locally;

Manpower to be used in preparing the store is available locally; and

The materials needed in the store preparation are also available locally.

3. Financial Feasibility

4. Socio-Economic Feasibility
5. Management Feasibility
MARKET STUDY
SERVICE DESCRIPTION
The Bugasan Ni Nyor Jose is a service- oriented business. It involves the buying of 25kilo sack of rice from Danlugan Farmers Multi-Purpose Cooperative and Palma Golden Grains
Rice and Corn Mill to the customers which are the members and non-members of the
cooperative. The Bugasan Ni Nyor Jose focus only on their interaction between the suppliers and
customers.
DEMAND AND SUPPLY ANALYSIS
The following table shows the demand, supply, and the corresponding gap for years 2006
to 2016.

The market of rice has a shortage of 4, 054, 555 kilograms. Considering the per capita
consumption of Pagadian City, there are 46, 165 people that need to be served. With the service
of Bugasan Ni Nyor Jose, the need of rice will be served. Having that share in the market is a big
opportunity for the researchers to offer the service of rice selling.

PRICE STUDY
The researchers have canvassed the price of similar and substitute rice products of
Masipag Head Rice.

Variety

Helen del Socorro Imelda

Bernard Y.
Abasa

Angelika

35/kilo; 1,700/sack

39

Headrice
HRV-10

R&L Corpuz Marketing Average

Inc.

35/kilo;

Price
36.33

1,680/sack
39/kilo; 1,850/sack

39

39/kilo;

37/kilo; 1,800/sack

39

35/kilo; 1,700/sack

35.75

1,840/sack
V-12

34.50/kilo;

1,670/sack
V-10

39/kilo; 1,850/sack

Mimis

35/kilo; 1,720/sack

36

36.69
33/kilo;

35/kilo; 1,700/sack

34.33

34/kilo; 1,700/sack

34.75

28/kilo; 1,400/sack

28

1,640/sack
7-Tonner

34/kilo; 1,680/sack

34

37/kilo;
1,760/sack

Mais No.10 28/kilo; 1,300/sack

28/kilo;
1,300/sack

Mais no.12 28/kilo; 1,300/sack

28/kilo;

28

1,300/sack
NFA (c-4)

27/kilo; 1280/sack

26

26/kilo;

26.33

1,250/sack
Supremo

35.50

33/kilo;

34.25

1,640/sack
Masipag

37/kilo;

(Headrice)

1,800/sack

Yellow corn

23/kilo;

37
23

1,090/sack
Vita-rice

35/kilo;

35

1,680/sack
SM

33/kilo;

(Masipag)

1,640/sack

Angelika

37/kilo;

(Headrice)

1,760/sack

Jasmine

36/kilo;

(Headrice)

1,700/sack

Bordagol

34/kilo;
1,680/sack

FACTORS AFFECTING THE MARKET

35/kilo; 1,700/sack

34

36/kilo; 1,740/sack

36.5

37/kilo; 1,800/sack

36.5
34

Demand may be influenced by the change of the income of the members, their taste
preference, number of family members, the price of substitute and similar rice variety and the
credit policies of SJMC.
The supply maybe influenced by the weather conditions or seasons, competitors,
production and transportation cost, and price of the product.
MARKETING PROGRAMS
The marketing programs are: flyer distribution, radio advertisements which cost Php1,
500.00 per month, posters, and sufficient information dissemination from SJMC heads.
Every kilo of rice will have a mark-up of Php5.00. A 25-kilo sack of rice will be sold Php
850.00. If members will purchase, they will have a discount of Php2.00 per kilo making the sack
of rice only Php800.00.
The non-members cannot avail the Php2.00 discount for every kilo.
DISTRIBUTION PROCESS

Suppliers

San Jose Multi- Purpose

Cooperative

Bugasan Ni Nyor Jose

Members / Customers

TECHNICAL ASPECT
PRE- OPERATION: THE GANTT CHART
Months
1

Feasibility Study

Business Permit
Management System
Organization
Renovation
Purchase Store Supplies
Contact the Suppliers
Information Dissemination
Start of Operation

The Gantt chart shows the planning process in operating a business. The first
month covers the feasibility of the project in the market. The next month is for the verification of
documents (business permit), organization of the management system and store renovation.
Purchase of store supplies and supplier contact covers the third month. Information
dissemination includes radio advertisements, posters, and flyers will be done in the fourth month
as well as the start of the business operations.

OPERATION
1. RICE PROCUREMENT

a. Supplier Contact.
Establish relationship with the suppliers
b. Negotiation.
Negotiations concerning price and delivery schedules are established.
c. Reordering
After the rice inventories are all sold, reordering will be done.
1. SELLING PROCESS
The rice inventories are sold cash to non-members and members. However,
credit is also available to members.
2. COLLECTION PROCESS
Members are given one month to pay for the rice purchased on credit.
EQUIPMENT
Bill Detector

Weighing Scale

Calculator

Record Book

Stapler

Carbon Paper

Staple Wire

Cash Invoice

Ceiling Fan

Delivery Receipt

Straight Fluorescent Tube

STORE PREPARATION
Lumber 1x1
Lumber 2x2
Nail No. 1

Nail No. 3
Paint
Plywood

PROJECT COST
Machinery & Equipment

Straight fluorescent tube

Php 59.75

Bill Detector

Php 549.75

Calculator

Php 595.0

Stapler

Php 110.00

Staple wire

1 box

Php 43.50

Ceiling Fan

Php 350.00

Weighing Scale

Php 2200.00

Record book

Php 36.00

Carbon Paper

Php 7.50

Cash Invoice

1 doz.

Php 700.00

Delivery Receipt

1 dozen

Php 700.00

Total Costs for Machineries and Equipment

Php5,351.50

Add: Store Preparation:

Lumber 1x1

10 pcs.

Php120.00

Lumber 2x2

10 pcs.

Php280.00

Nail

1 kl.

Php90.00

Nail No. 3

1 kl.

Php90.00

Paint

4L

Php350.00

Plywood

3 boards

Php750.00

No. 1

Total Costs for Store Preparation

Php 1,680

Total Project Cost

Requirements for Business Permit
Regulatory Fees:
Clearance Fee

Php7,031.50

Php50.00

Zoning Fee

Php50.00

Secretarys Fee

Php50.00

Books of Accounts Registration

Php50.00

Subscription Fee

Php10.00

Health Medical Certificate

Php60.00

Business Permit Form

Php100.00

Garbage Fee

Php200.00

Sanitary Inspection Fee

Php100.00

Business Permit Fee

Php400.00

Total Regulatory Fees

Php1, 070.00

Verification of Documents:
Barangay Clearance

Php300.00

Sanitary/Health Clearance

Php200.00

Fire Safety Inspection Certificate

Php100.00

Others:(specify) OBO

Php300.00

Total Cost for Verification of Documents

Total Cost for Business Permit

Php900.00
Php1,970.00

RENT
The Bugasan Ni Nyor Jose is situated in the former canteen of Holy Child Academy,

beside San Jose Parish Church and San Jose Multi- Purpose Cooperative. Rent Expense per
month is Php2, 500.00.
UTILITIES
Electricity is the sole utility to be used in the Bugasan Ni Nyor Jose.
WASTE DISPOSAL
Sweeping is the manner of waste disposal of dust produced in storing and selling rice.
The dust is thrown in the city- prepared garbage cans.
LABOR REQUIREMENT
The various jobs necessary for the operational stage are:

Delivery Boy

Sales Clerk
FINANCIAL FEASIBILITY

MAJOR ASSUMPTIONS
1. Credit Term
A member can avail rice for credit. It should be paid within one month and a
corresponding 0.5% daily will be imposed if not paid on time.
2. Sales Discounts
A non-member, upon purchase of rice, cannot avail of any discount. A member,
however, can have Php. 2.00 discount per kilo purchased.
3. Labor and Management Compensation
The Bugasan manager shall receive Php.____monthly. The sales boy shall
receive Php.____. The salaries shall increase ___ % upon the start of the year.
4. Inventory Costing
Every kilo of rice shall have Php 5.00 mark-up.

5. Product Mix
Bugasan ni Nyor Jose shall only sell Masipag Head rice.
6. Tax Exempt
Bugasan ni Nyor Jose shall not be imposed any tax by the government.
7. Price Ceilings
Total Project Cost: Non-Current Asset
Rental Fee
Store Preparation

- Water
- Electrical Connections
- Renovation
Legal Requirements
Equipment Purchases
Waste Disposal
- Broom
- Dustpan
- Garbage Bin
Total NCA
Inventory Investments: Current Asset
Purchases (Rice)
Freight/Delivery
Total CA
Total Assets or Total Project Cost
Sales (175 sacks x Php850)
Cost of Sales (Php770 x 175 sacks)
Net Sales
Less: Rent
Electricity
Salaries Sales Lady
P3, 500
Boy
2, 500
Advertisement
Net Income

xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
P148, 750
(134, 750)
14, 000
2, 500
250

6, 000
1, 500
3, 750