CHAPTER 1

INTRODUCTION

Humans are monophasic sleepers (Stewart. 2014, August 27). One part of our

day is dedicated to sleep and another to wakefulness. Our sleeping patterns, although

not clear and specific, is a very important aspect of our wellbeing.

Getting a good night’s sleep is very important in productivity and significantly

contributes to health and overall happiness. Naps can improve reaction time, logical

reasoning and symbol recognition. According to Cote, in a review done in 2009, naps

are good for one’s mood (Journal of Sleep Research, 2009). Unfortunately, 46% of

Filipinos are sleep deprived, according to a research done by Sun Life Financial Asia in

2014 (Dumalo, T., 2014, October 23).

Sleep plays a vital role in one’s mental and physical health and overall quality of

life. The way we feel when we are awake greatly depends on how well rested we are

during our sleep. Sleeping is our body’s way to replenish our body and maintain our

health.

The amount of sleep you need varies from age to age and changes as we grow

older. Sleep varies from one person to another but different age groups have different

hours of sleep recommended by the American Academy of Sleep Medicine, as endorsed

by the American Academy of Pediatrics (Jenco, M., 2016, June 13). (See table below.)

1
Age Group Hours of Sleep Required

Infant ages 4 – 12 mos 12 – 16 hrs (including nap)

Children ages 1 – 2 years 11 – 14 hrs (including nap)

Children ages 3 – 5 years 10 – 13 hrs (including nap)

Children ages 6 – 12 years 9 – 12 hrs

Teens ages 13 – 18 years 8 – 10 hrs

Adults ages 18 years and above 7 – 8 hrs

Table 1
Required Hours of Sleep per Age Group

From teens to adults, several factors cause them to lose sleep or choose to sleep

less. This leads to sleep loss, and eventually, sleep debt. Sleep debt is when you lose

hours of sleep and adds to number of ours you need to consume sleeping. For example,

for a teen to young adult, if you lose three hours of sleep each night, you will have a

sleep debt of 11-13 hours that you have to regain after a week.

In one study according to Medical News from the United States, school stress

keeps 68 percent of students awake after their head hits the pillow. Only 30 percent of

students sleep eight hours a night, the average recommended amount of sleep for

young adults. Twenty percent of students pull an all-nighter at least once a month

(News, A., 2009, August 12). The more we study the effects of sleep loss, the more we

2
will find that the purpose of adequate sleep is to maintain better memory and boost

learning. Sleep loss means mind loss. It shackles learning in many ways. It curtails

critical thinking, messes up memory and mood, retards reasoning, and shutters

quantitative skills.

While it’s important to get a solid eight to ten hours of sleep each day, factors

contributing to these are inevitable. Some people nap as an alternative to sleeping. This

provides them with a short-term boost of alertness and performance. A 45-minute nap

can increase patience and alertness. It also helps lower your blood pressure and

dramatically improve your ability to remember information and creativity. A good siesta

can also prevent lower your risks of suffering from heart diseases.

Nap to the Top! Student Lounge is the brainchild of sleep-deprived students who

live too far away from the university to get their sleep on in-between classes. The

student lounge aims to cater to students who want to take their well-deserved nap and

rest during breaks in a place they can comfortably do so. Although the university has two

in-campus libraries wherein students can rest, it is already too populated to be able to do

so with ease. Resting inside classrooms and in the green bench area does not offer

students the comfort to do so as well.

Our Lady of Fatima University - Antipolo Campus is a densely populated

university, with student population ranging up to 8,000 in 2018 according to the Office of

the School Registrar, which has few areas for student rest and recreation. Lounging on

the campus library limits other students who actually have to use the facility for

academic-related activities.

The Our Lady of Fatima University - Antipolo Campus offers many courses to

which are time consuming, especially Medicine-related courses. Students from these

3
programs are often found in the library, cafes around the campus, and even in the

school hallways, reviewing and studying, to which, unfortunately, can be an

inconvenience to other students as well.

Nap to the Top! Student Lounge aims to reduce the number of students having a

hard time concentrating on their academics because of sleep deprivation. It wants to

help students by providing an area they can safely and comfortably rest their tired minds

and bodies. The student lounge will be offering bed rentals with nap assistance, wherein

students who will rent will be accommodated with a person responsible with waking

them up depending on their time of choice. The common lounge is for those who just

want to take a quick break and rest their bodies among cushioned floors with bean bags

and enjoy some quiet time. Refreshments will also be served such as coffee, tea, and

some finger foods for free. There will also be a shower room for a quick freshening up

before heading back to class to ensure a hundred percent alertness among our

customers.

4
 CHAPTER 2

PROJECT BACKGROUND AND HISTORY

Project Proponents

The proposed project will be owned by the following proponents: Kimverlee P.

Antiporda, Elisha Margareth O. Sebastian, Joshua Danielle Quain J. Castro, Joshua

Ryan C. Bonifacio, Lisamari Jenisse N. Nerval, Neil Matthew V. Torres, Kimberly Ghaile

R. Bo and Shainette Marvy B. Impang. The following are students of Our Lady of Fatima

University, all Majoring in Marketing Management. The proponent goal is to provide

college students or different other schools a service that can be useful in a way that

people can spend their vacant hours in schools to relax and enjoy an innovating way of

taking a nap or relaxing. Relaxing is important for students so that they can free their

body and minds from exhaustion and tiredness. The proponents will be concentrating on

the market for students and universities in order for the project to be acknowledged as

something beneficial to them. The project’s purpose is to provide affordable and

comfortable napping services for the enjoyment and relaxation of our customers.

5
Proposed Name of the Project

The proponents will name the lounge, Nap to the Top!, which got its name from

the Our Lady of Fatima’s tagline, “Rise to the Top!” We believe that well rested

individuals are better at performing their academics that is why it is our mission to

provide them with a safe space for their rest and relaxation.

Vision

Nap to the Top! envisions a safe place for students to be comfortable and well-

rested individuals who can perform better at their academics and conquer the world, one

nap at a time.

Mission

Our Mission is to provide napping services to students in between classes to help

them focus and excel more in their academic journey. To provide a comfortable and

conducive environment for their much needed rest and relaxation.

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Logo of Business

Figure 1
Logo

Nap to the Top!’s logo represent students who are sleep-deprived seen sleeping

in their desks. This is what the business aims to accomplish: to provide students with a

comfortable place to rest so they can focus on their academic commitments inside their

learning area.

Type of Business

Nap to the Top! will provide napping services to its student customers by means

of renting beds and lounge areas to rest on. It will also provide internet access to its

loungers to connect to while relaxing in between classes. The establishment will also

offer coffee and finger foods to its customers for free. It will also offer napping assistance

to those who will avail of their sleeping beds. Such assistance is pillows and blankets

7
provision, and a Napping Assistant that will wake our customer depending on a time they

chose.

Type of Business Organization

As a starting up company with minimal resources, the proponents decided to go

for Partnership wherein the processes will be easily understood and operated on and

can be set up with nominal costs (How a Business Partnership Works. 2009, June 1).

This type of business organization grants ease of formation and organization with no

legal requirements. Joint efforts of all partners will lead to a bigger capital for the

business and shared profits and incentives, as well. It will also be easier to manage the

establishment as there are shared duties and responsibilities among all partners.

Partnership ownership also eases the dissolution of the business should there be a need

to do so with just consent from the partners involved.

Project Location

Nap to the Top! is located at the ground floor of Antipolo Valley Mall, Km. 23,

Sumulong Highway, Antipolo. It is behind Bo’s Coffee and in front of the AVM Food

Court and 7-11 Convenience Store. It is accessible via commute/private cars. There is a

parking behind the establishment’s building, sharing the parking space for the university

hospital and events center. It is also near food establishments, convenience store, and

cafes in the area.

8
 Figure 2
Map of the Location

Figure 3
Project Location

9
 Figure 4
Project Location

Figure 5
Actual Location

10
HISTORY OF THE PROJECT

During the weeks leading up to major exams, it is common knowledge, especially

ot students, to pull out an all-nighter. A lot of cramming is involved that results to

students getting bare minimum sleep hours. Some students will even force themselves

to sleep on uncomfortable library chairs just to doze off in between classes.

Since 2014, universities in the U.S. started installing nap lounges across different

universities and got positive feedback from each (Waxman, O., 2014, August 29). It

allows students to be able to rest without the hassle of going back to their houses or

dormitories. It gives students the rest they need without the tendency to go back home

and sleep entirely. They can do their power nap in 20 minutes and go back to work

feeling refreshed.

Major universities in the Philippines have also followed in the footsteps of

universities abroad by recreating their own version of student lounges. There are also

few booming cafes that offer sleeping and napping lounge along major universities.

University lounges are designed to give students a space for relaxation and to

study. Student lounges were created so that students can fulfil their designated tasks

and to study more on their work without falling asleep or feeling tired. The proponents

started creating this plan last June 2019 wherein we will have space for students to take

a break and rest for a while until their next class or until they are needed to be woken up.

That includes the unique design of our nap room which is made for privacy and

relaxation. The goal of this project is to let every student relax and experience this

unique yet elegant design. Instead of staying in a cafe, hallway and fast food chains, we

want every student to experience a comfort when resting so that they can focus more

11
when studying. In overall factor, we designed this for the convenience that we can

provide for every student.

Unlike existing student lounges, some don’t allow sleeping or was not built in

comfort for the users. But as the proponents start “Nap to the Top!”, we don’t only

provide lounge areas, but also sleeping for those who desperately need those quick 2 to

3 hours of sleep to boost up their attentiveness and feel a little bit more light. The

proponents focus more on what they can offer other than study lounges. Taking a nap

daily will boost your productivity and alertness. It will improve your memory, learning and

the health of your heart. It also relieves stress, elevates your mood and boosts your

immune system.

According to Dr. Sara Mednick in her book, Take a Nap! Change your Life.

“Daytime naps can be one way to treat sleep deprivation. You can get incredible benefits

from 15 to 20 minutes of napping. You reset the system and get a burst of alertness and

increased motor performance”.

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 Chapter 3

MANAGEMENT AND PERSONNEL FEASIBILITY

This chapter provides the information needed about the personnel that the

company will employ. This will further discuss job descriptions and job specification

followed by the organizational style and structure for the proposed business and then the

company’s general rules and policies and the discussion of management paradigm.

Personnel

Personnel management is an administrative function of an organization that

exists to provide the personnel needed for organizational activities and to manage the

general employee-employer relationship. Selection, recruitment, training, determining

and managing wages and salaries, giving rewards and benefits, acknowledging

performance, solving work problems, having a communication with the employees at all

levels, and lastly control of personnel, is needed in order to improve the level of the

company’s success.

The Manager will be the one who will manage and organize the planned

business operations; he/she will also be assigned to monitor the report on the

company’s inventory level. He/she will lead the movement of the lounge and will also

create strategies and campaigns for the profitability of the business. They are also

responsible for reviewing the levels of supplies, ordering new materials, and performing

daily analysis and reports. A major part of this role involves leading, controlling, and

delegating tasks of the employees.

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 Another personnel is the receptionists, He/she will be responsible for the

reservations, time consumed in the lounge, and filling of all the files in the store. Next will

be 2 nap assistants that will be responsible for their sleeping habits, napping equipment

and their wake up call. Lastly, one cleaning staff is assigned for the cleanliness of the

lounge.

Salaries

Department of Labor and Employment will be the guidelines of Nap to the Top!

The proposed business is non-agricultural wherein the minimum wage is P317.00 to

P400.00 pesos (as of April 28, 2018). To compute the annual salary of the employees,

the monthly salary is multiplied by 12.

Job Title Number of Monthly Salary Annual Salary

Personnel

Manager 1 ₱20,000 ₱240,000

Receptionist 1 ₱8,450 ₱101,400

Nap Assistants 2 ₱8,320 ₱99,840

Cleaning Staff 1 ₱6,340 ₱76,080

TOTAL 5 ₱51, 430 ₱617, 160

Table 2
Personnel Salaries

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 Among all the employees of Nap to the Top!, The Manager has the highest

salary of (₱20,000.00) which is the eyes and engine of the business. He/she will be in

charge of the food and drinks. Then deliver the newly washed sheets and sleeping aids

every day. Followed by the receptionist with a salary of ₱8, 450.00 (₱325.00 per day)

which will be working Monday to Saturday. The Nap Assistant will be provided with ₱8,

320 monthly (₱320.00 per day). The cleaning staff will be given ₱6,340.00 (₱317.00 per

day). The cleaning clerks will clean on the opening and closing of the operational days.

Employee Time Schedule

The table below represents the schedule of each employee of the company. All

five employees have alternate schedules every week (Shift 1: 8am – 5pm and Shift 2:

11am – 8pm). All of them only have 1 day off (Sunday, as there is no classes on that

day). All employees are entitled to a one hour unpaid lunch and two 15-minute paid

breaks.

Staff MON TUES WED THURS FRI SAT

Employee1 8AM – 5PM 11AM – 8AM – 5PM 11AM – 8AM – 5PM 11AM –
Receptionist 8PM 8PM 8PM
Employee2 11AM – 8AM – 5PM 11AM – 8AM – 5PM 11AM – 8AM – 5PM
Manager 8PM 8PM 8PM
Employee3 8AM – 5PM 11AM – 8AM – 5PM 11AM – 8AM – 5PM 11AM –
Nap 8PM 8PM 8PM
Assistant
Employee4 11AM – 8AM – 5PM 11AM – 8AM – 5PM 11AM – 8AM – 5PM
Nap 8PM 8PM 8PM
Assistant
Employee5 11AM – 11AM – 11AM – 11AM – 11AM – 11AM –
Cleaning 8PM 8PM 8PM 8PM 8PM 8PM
Staff

Table 3
Employee Schedule

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Job Description and Job Specification

Job Analysis is a primary tool to collect job-related data. The main purpose of job

description is to collect job-related data in order to advertise for a particular job. It helps

in attracting, targeting, recruiting and selecting the right candidate for the right job.

The proponents will determine what needs to be delivered in a particular job. It

clarifies what employees are supposed to do if selected for that particular job opening. It

will be used to assess the employee’s area of knowledge and skills, educational

qualification, competence level and working experience. The proposed business will be

using job description and specification in hiring employees who are qualified in the jobs.

Nap to the Top! is looking for employees who will help fellow students reach their

dreams and future careers by having their sleeping problems solved and lessen sleep-

deprived students. Employees must be acknowledged by the vision and mission

company.

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JOB TITLE Manager

JOB DESCRIPTION  Sets policies and operations

 Create and coordinate with local

management in the company to

evaluate employee and company

performance and efficiencies

 Establishes and adjusts selling

prices by monitoring costs,

competition, and supply and

demand.

 In charge of the operations for

the company.

 Accomplishes subsidiary

objectives by establishing plans,

budgets, and results

measurements; allocating

resources; reviewing progress;

making mid-course corrections

 Maintain inventory reports and

records.

 Monitors and maintains current

inventory levels processes

purchasing orders as required

17
 and tracks orders.

 Records purchases, maintains

database, performs physical

count of inventory, and

reconciles actual stock count to

computer-generated reports

JOB SPECIFICATION  2-3 years of experience in the same

field

 College Graduate with a Degree in

Business Administration

 25-40 years old

 Flexible and responsible

 Good communication skills

 Organizational and time

management skill

Table 4
Manager’s Job Description and Specification

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JOB TITLE Receptionist

JOB DESCRIPTION  Welcomes visitors by greeting

them, in person or on the telephone

 Copy, file and maintain paper or

electronic documents and records

 Maintains safe and clean reception

area by complying with procedures,

rules and regulations

JOB SPECIFICATION  High school degree

 Proficiency in all Microsoft software

 Hands-on with office equipment

 Professional appearance and

personality

Table 5
Receptionist’s Job Description and Specification

JOB TITLE Nap Assistant

JOB DESCRIPTION  Welcomes visitors by greeting

them, in person

 Arranging the workplace

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  Can monitor customers with their

nap schedule

 Maintain the workplace silent

 Stores equipment or sleeping aids

where they are supposed to put

 Follows rules and regulations

JOB SPECIFICATION  At least high school graduate

 18 years old and above

 Hands-on with equipment

 Professional appearance and

personality

Table 6
Nap Assistant’s Job Description and Specification

JOB TITLE Cleaning Staff

JOB DESCRIPTION  Cleaning, supplying and stocking

designated facility areas

(sweeping, vacuuming, dusting,

mopping, restroom cleaning etc)

 Performing routine inspection

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  Documenting maintenance

activities

 Carry out heavy cleaning task

 Maintain equipment and

production area cleanliness

JOB SPECIFICATION  At least high school graduate

 18 years old and above

 Pleasing personality

Table 7
Cleaning Staff’s Job Description and Specification

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Management Style

Management is a key to having a successful business. It is influential and crucial

for a company to manage their people with excellent decision making so that it may be

productive for the business. It’s a big responsibility for a manager to handle a business

in the interest of a business to be outstanding and acknowledge. Management is all

about dealing with people and controlling and analyzing what is the best outcome that

may derive to the best result. Nap to the Top! will follow Autocratic style of leadership

wherein an individual will control over all decisions and little input from group members.

Autocratic leaders typically make choices based on their ideas and judgments and rarely

accept advice from followers. Autocratic leadership involves absolute, authoritarian

control over a group.

An autocratic management is a decision making that is made by only one

individual or body in a business organization (Cherry, K., 2010, September 20. What Are

the Pros and Cons of Autocratic Leadership?). Other employees inside the organization

have no control or impact regarding to the decision making and general policies of the

business. Using this managerial approaches give us the benefit of a solution to minimize

wrong decisions making made by other personnel of the business. It also lessens the

time of making a decision immediately upon a certain problem or complication in the

company. Having this kind of managerial access educates other subordinates of the

business to learn from the manager. It helps achieving goals and objectives more

efficient and economical.

These actions made by the manager make the business develop better credit

and reputation to the generations of employee that will be working in the business. This

teaches them to value the importance of managerial approaches for a better outcome or

a better future for the business. By the most important thing for all management is the

22
customer satisfaction that may be given to them. For a manager he or she needs to

develop a good relationship with his or her customers in order for the business to be

successful. The reason for this is to have growth and a profitable business in the future.

Advantages of Autocratic Management:

 It is a leadership style that is very easy to learn.

 Can make decisions quickly, especially in stress-filled situations.

 Clear chain of command, oversight.

 Good where strong, directive leadership is needed.

 It removes the pressure on the employees.

 Inexperienced teams can still produce experienced results.

 Decisions can be made faster with this leadership style.

Disadvantages of Autocratic Management:

 The autocratic leadership style is highly dependent upon the leader.

 Discourages group input.

 Can impair morale and lead to resentment.

 May impair or ignore creative solutions and expertise from subordinates.

 There can be a lack of accountability within its structures.

 It increases the work burden for the leader.

23
 Figure 6
Nap to the Top! Organizational Chart

GENERAL COMPANY POLICIES

Working Hours and Rest Periods

Each employee will render eight (8) hours of service per day with one (1) hour

unpaid lunch break and two (2) paid 15 minutes break in the morning and afternoon.

Work days will be from Monday to Saturday, with Sundays as day-off.

Personal Business

Employees are not allowed to conduct their own personal business inside the

establishment.

Wearing Uniform / Dress code

- Wearing of Complete Uniform from top to bottom is a must

- Free complete uniform provided by the company

- Wearing of company I.D inside the company premises.

- Wear proper make up for girls and proper haircut for boys.

24
- For receptionist/Manager: Polo shirt with pants, Can wear with or without heels,

black shoes and closed shoes.

- For nap assistant: Scrubs, Can wear with or without heels, black shoes and

closed shoes.

- For cleaning clerk/housekeeper: white shirt and black pants, should wear black

shoes without heels with black socks.

Figure 7
Manager/Receptionist Polo Shirt

Figure 8
Scrubs for Nap Assistants

25
Dress code is a must; any form of violation will be subject for disciplinary actions:
1st time: Verbal warning
2nd time: Written warning
3rd time: Suspension for 3 days
4th time: Termination

Use of computers, Telephones and Equipment

- Using of computers, Telephone and equipment are only for the purpose of

completing the company task. Any activities made outside, third-party, not

connected with company tasks or for personal use are strictly prohibited not

unless permitted by an authorized person or representative.

- Any damage made by an employee is subject for salary deduction and subject

for investigation.

- Any suspicious and malicious act made by the employee using the company

assets such as the computers, telephone and any other equipment will be

subject for investigations and disciplinary action/s.

- Any alterations in any computers, telephone and equipment is liable for penalty

and subject to disciplinary action.

Termination

A. You may be terminated for any of the sufficient causes as provided by law or for

violation of company rules and regulations including the Code of Conduct, Code

of discipline , Ethics code and company values. In case of resignation, one

month advances notice in writing must be submitted to the company which shall

take effect only upon written acceptance of the company.

26
B. Any breach of the foregoing covenants, direct or indirect, shall be sufficient

grounds for termination for cause. In addition, you will be liable for liquidation

damages in the amount of 300,000 for any and all such breach of confidentiality

and competition clauses of this agreement without prejudice to other reliefs,

penal or otherwise available in accordance with law.

C. As a condition of continued employment, all newly hired employees must present

to Nap to the Top!’s authorized representative within 5 working days from date of

hire the following requirements:

- SSS number

- Tax Identification number

- Philhealth number

- HDMF/PagIbig number

- Birth Certificate

- NBI Clearance

- Health Permit

- Employee information sheet

- Proof of education (TOR/Diploma)

- Medical Examination

27
Failure to present or submit any of the requirements stated herein within the given period

constitutes a breach of employment contract and may result in the termination of this

employment agreement for non-compliance and with pre employment requirements.

D. Prior to termination, you agree to hand over to Nap to the Top! all the materials

belonging to the company, but not limited to notes, correspondence documents,

client , list , records , uniform, Company I.D and any program related data which

relate to the company or the work done in the course of your employment.

E. ZTP or Zero Tolerance Policy: Any acts against with the law will be a non

negotiable and subject for an automatic termination.

Benefits

 13th month pay – Employees are entitled to receive a full month's pay if the

employee works from January up to December of a calendar year. If employee

works less than a full year, the pay will be pro-rated. Paid every 2nd week of

December.

 Leave Credits :

 Paid Time off: 100% paid by the company, every employee is eligible

for 5 days leave credits or 40 hours per year. If unused within a year

the 3 days of the PTO will be converted into cash before the year

ends.

28
  Maternity Leave: To be paid by Social Security System (SSS) 105

days per pregnancy for the first 4 deliveries. And 108 days if CS

(Caesarean)

 Paternity leave: 100% paid by the company; 7 days of the first 4

deliveries of legal spouse to be consumed non-consecutively, in the

next 60 days after the delivery.

 Night Differential – Work between 10pm – 6am: Additional 10% at the top of the

hourly rate.

 Overtime pay – Any excess hours rendered by the employee will be entitled to

get 25% on the top of the employees hourly rate multiplied by the number of the

exceeded hours rendered. Overtime will be considered after 8 hours of shift

(excluding lunch break).

 During Holidays: the employee will be entitled to receive a double pay for regular

working holidays and additional 30% at the top of their salaries during special

working holidays.

 SSS, Phil health and PagIbig – 50% will be paid by the company and 50% will be

deducted at the top of the employee's salary every 1st cut off of the month.

29
Disciplinary Actions for Non-Observance of Work Policies

1stoffense: Verbal Warning

2nd offense: Written Warning

3rdoffense:5 days suspension

4th: Subject for investigation and suspension: if found guilty it will be subject for

termination

ZTP (ZERO TOLERANCE POLICY) :Automatic Termination (if proven guilty)

Resignation

 The employee should notify the immediate supervisor 5 days before the effective

date of the resignation letter.

 The employee should rendered for 30 days or else will be subject for termination

and will be considered as “AWOL” or absence without leave record to the

company

 After 30 days of rendering, the employee should adhere for an exit interview and

filing of the clearance or else the final pay will not be claim.

 Any existing loans or any damage was made by the company assets will be

deducted to your final pay.

Absence and Tardiness

 If the employees commit three consecutive number of tardiness, it will be subject

for verbal warning. If the tardiness happens for another incident, it will be subject

30
 for written warning. And if the employee keeps on observing tardiness it will be

subject for suspension or Termination.

 If the employee commits a “NO CALL NO SHOW” means absence without

notice, it will be automatically a written warning and if the problem still persists it

would be subject for suspension or Termination.

 If the employee commit two consecutive absences without valid reasons the

employee will be subject for written warning and if the issue persist it will be

subject for suspension or termination

Safety Procedures

In case of emergency, there is an emergency alarm for any circumstances

happen. The fire exit will be available and some fire extinguisher available in the

premises. The safety procedures will be explained in New Hire Orientation so that the

employee will know the emergency drill.

Break Periods

Every Employee will be given a 1 hour lunch break (unpaid) and 15 minutes in

the first 3-4 hours duty and another 15 minutes break, 3-4 hours after the lunch break.

30 minutes break will be paid by the company.

31
The Management Paradigm

The purpose of the Management Paradigm is to illustrate the business flow of the

company. It serves as a guide of how the business should operate. It consists of 3

different parts: Input, Process, and Output. The Input will show all the information and

the requirements needed by the business; including the employees, facilities and the

promotion activity, we also included a service procedure to provide a roadmap for day-

to-day operations and to have a proper execution of the service; Company policies for

the employees to follow – these were created to make sure that the employees are in

compliance with the laws and regulations set by the firm. The Process segment will

show the execution of the service flow – from when the customers have entered the

facility until the moment they leave; promotional activities for raising awareness; and the

implementation of the company policy. The Output is the results of the operations of the

company.

The proposed business aims to provide college students an area where they can

rest or sleep whenever they wanted. Following and understanding the paradigm could

help achieve the company’s goal and objectives.

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 INPUT PROCESS OUTPUT

 Service Procedures  Execution Of  Customer

 Well-Trained The Service Referrals
Employees Flow  Increase In
 Establishment Of  Monitoring Sales
Company Policy Personnel Revenue
 Promotions  Implementation  Satisfied
 Facility Of Policies Customers
 Execution Of  Excellent
Promotional Service
Activities  Increase in
profit

Figure 9
Management Paradigm of Nap to the Top!

Promotional Activities

Promotional activities for the first few months starting from the opening will

include establishing a social media page wherein the company can post updates about

ongoing activities and promos. This will ensure that there is widespread advertisement

for the student lounge without cashing out too much for the promotions. There will also

be brochures given away and tarpaulins posted along the immediate vicinity of the

student loungw especially along Sumulong Highway leading to Antipolo Valley Mall and

Marcos Hiway going upwards towards Blue Mountain Avenue. Nap to the Top! will also

33
provide the first 100 people to sign up for the napping services a promo card wherein

multiple purchases will correspond in freebies such as free lounge time for 30 minutes

and onwards as the promo card progresses with stickers.

Figure 10

Membership Card

Figure 11
Promo Card

34
 CHAPTER 4

MARKET FEASIBILITY

Market Description

Nap to the Top! aims to cater to students around the immediate vicinity of

Antipolo Valley Mall where it is located. It will target students who seek relaxing

environment to rest in between classes for short periods of time that does not involve

going back to their homes/dormitories.

The business’ main competitors are places students usually consider to lounge

on during their free time. These places include coffee shops, food court and other stalls

located on Antipolo Valley Mall as well.

Nap to the top offers a unique way in providing a relaxation to our clients. Our

business is located at Valley Mall Antipolo which we consider some competitors nearby

that can provide a sleeping lounge to our target market. One of the competitor we notice

is the Oyo 132 Onea Bed and Breakfast which is located at Sumulong Highway, Antipolo

City and the growth rate of this bed and breakfast is 0.25%, the second one is the Cloud

9 Hotel and resort which is very near to our location, it is also located at Sumulong

Highway, Antipolo City and has a 0.55% growth rate , We also found The Log Inn hotel

which is located at L.Sumulong, Antipolo City and has a 0.20% growth rate, Another

competitor we found is the Grand Polo Hotel that is located in the Tripolee Marcos

Highway, Masinag, Antipolo and has 0.25% growth rate and the last competitor around

Antipolo that we found which is also nearby to our location is the Antipolo Hostel

Karenina which is also located in Sumulong Highway, Antipolo with 0.51% growth rate.

Aside from Antipolo premises, we also found a place that offers a sleeping area. We

35
found the Hotel Mango that is located in Sumulong Highway Marikina with 0.51% growth

rate and the last competitor we found nearby is the Hotel Sogo Cainta which has 0.45%

of growth rate.

The business’ location is one of its key strengths, being located in the immediate

vicinity of the university. Students will only take a short walk to arrive to the

establishment and the same amount of time to go back to their classes. However, its

operating period would only be during school season and there would be a vacancy for

the business during class breaks and holidays.

Nap to the Top! could open opportunities such as being a school-administered or

school-led facility so it can cater to all of the university’s students and use it to develop

their well-being. But it should prepare itself for there is a rise in the number of cafeterias

around the university that offer lounge as well.

Demand Analysis

The target market of Nap to the Top! are the students, faculty and staff within the

selected area near Nap to the Top! The target markets are chosen because they study

and work near the area and they will serve as the highest potential customers of the

service that the business will be offering. Based on the information gathered, there are

12,820 students in Our Lady of Fatima University –Antipolo Campus (Year 2018)

including Senior High School students from the previous year with the total average of

27% growth rate per year.

36
PROJECTED YEARS 27% AVERAGE GROWTH TARGET MARKET

RATE

2019 (2018: 12, 820) 3, 461 16, 281

2020 (2019: 16, 281) 4, 396 20, 677

2021 (2020: 20, 677) 5, 583 26, 260

Table 8
Average Growth Rate

The table above indicates that the total projection of growth rate per year in Our

Lady of Fatima University – Antipolo Campus. To get the target market, total population

of the year before multiplied to the average growth rate followed by the previous year is

multiplied to the average growth rate per year and adds up to the current year population

to the get the target market.

The demand analysis is also based on the survey conducted by the proponents

within the university that projected a demand of 72% of the participants that are willing to

pay for the service provided. There are a total of 100 participants comprising of students

of the OLFU – Antipolo Campus.

37
 Population: Antipolo City
Age Group: 15 to 29 years old (28.88%)

2019 2020 2021 2022 2023

Overall Population 16281 20,677 26,260 33,350 42,354
Percentage of willing to avail
72% 72% 72% 72% 72%
Projected Annual Clients11,722 14,887 18,907 24,012 30,495

Total No. of Beds (10 Bunk Beds - 3 pax each)

30

2019 2020 2021 2022 2023

Bunk Beds Rates
9,490 12,053 15,307 19,440 24,689
One (1) Hour 85.00 201,662.50 202,381.95 148,735.15 389,844.00 881,647.20
Two (2) Hours 150.00 352,800.00 357,144.61 262,473.80 793,800.00 833,490.00
Three (3) Hours 225.00 529,200.00 535,716.92 984,276.74 1,587,600.00 1,666,980.00
Six (6) Hours 450.00 1,058,400.00 1,071,433.83 984,276.74 1,587,600.00 1,666,980.00
Total Projected Revenue (Bunk beds)2,142,062.50 2,166,677.31 2,379,762.42 4,358,844.00 5,049,097.20
No. of Clients per Day 28 36 46 58 73
One (1) Hour (5 beds alloted can be used for
7 6 times per day
9 = 30 pax/day)8 13 28
Two (2) Hours (5 beds alloted can be used7for 3 times per day
9 = 15 pax/day) 8 15 15
Three (3) Hours (10 beds alloted can be used
7 for 2 times per
9 day = 20 pax/day)
20 20 20
Six (6) Hours (10 beds alloted can be used 7only once a day9= 10 pax/day) 10 10 10

2019 2020 2021 2022 2023

Common Area Lounge Rates
2,232 2,834 3,600 4,572 5,806
One (1) Hour 65.00 43,680.00 43,680.00 68,796.00 91,728.00 120,393.00
Two (2) Hours 110.00 73,920.00 73,920.00 116,424.00 155,232.00 162,993.60
Three (3) Hours 165.00 110,880.00 110,880.00 174,636.00 174,636.00 244,490.40
Six (6) Hours 300.00 100,800.00 201,600.00 211,680.00 317,520.00 444,528.00
Total Projected Revenue (Common
329,280.00
Area Lounge)430,080.00 571,536.00 739,116.00 972,405.00
No. of Clients per Day 7 8 11 14 17
One (1) Hour 2 2 3 4 5
Two (2) Hours 2 2 3 4 4
Three (3) Hours 2 2 3 3 4
Six (6) Hours 1 2 2 3 4

Overall Projected Revenue 2,471,342.50 2,596,757.31 2,951,298.42 5,097,960.00 6,021,502.20

Output VAT 264,786.70 278,224.00 316,210.54 546,210.00 645,160.95

Table 9

Sales Forecast Based on Target Market and Survey Results

38
GENERAL MARKETING PRACTICES

The general marketing practices are all about the legal concepts and procedures

set by the government for registering a business. All businessmen should take the legal

process and register their business and submit all the necessary forms to corresponding

government agencies as it establishes the business as a legal entity and without it the

business cannot be legally considered and will not be protected under any grievance

procedures. These must be followed to avoid any penalties and punishment that may

occur in the future.

Nap to the Top! are willing to submit all of the necessary requirements and obey

the required procedures to acquire legal authorization and the right to operate the

business. To start things right, here are the agencies and procedures that the

proponents need for registering the business:

1. SEC (Securities and Exchange Commission)

 Register the business name at SEC.
 Acquisition of SEC Certificate of Registration.
Procedure:
 Verify the availability of the business name on the SEC website, if available
reserve/register it online or at SEC office in Mandaluyong.
 Sign and notarize the following:
o Notarize Articles of Incorporation (AL)
o By-Laws (BL)
 Prepare:
o Payment for fees.
o

39
 Purpose: Processing time: Fees:
To protect the name with At least one (1) week upon  Reservation Fee for the
proper authorities and submission of documents. proposed name-
claim the legal rights to P100.00
use and operate the
business under that  By-Laws -
name. P1010.00
 Notarize (AL) -
P500.00
 Filing Fee -
P1667.99
(equivalent to 1/5 of the
authorized capital stock)

Table 10
Requirements and Fees: Securities and Exchange Commission

2. Barangay Clearance
 Acquire Barangay Clearance from barangay where the business is located.
Procedure:
 Submit:
o Certificate of Business from SEC
o Valid ID
o Proof of Address: Contract of Lease
 Prepare:
o Notarize Articles of Incorporation (AL)
o By-Laws (BL)
o Payment for fees.

40
Purpose: Processing time: Fees:
This document is required One (1) day upon  Brgy. Clearance Fee
for getting Mayor’s permit. submission of documents.
- P50.00

Table 11
Requirements and Fees: Barangay Clearance

3. SSS (SOCIAL SECURITY SYSTEM)

 Register the business and employees with the SSS.
Procedure:
 Submit and Accomplish SSSforms :
o R-1 (Employer Registration)
o R-1A (Employment Report)

Purpose: Processing time: Fees:

Required to do so One (1) day upon  None
because it is mandated by submission of documents.
the government for
business registration.

Table 12
Requirements and Fees: Social Security System

4. PhilHealth (Philippine Health Insurance Corporation)

 Register the employees with PhilHealth and Submit necessary forms.
Procedure:
 For Employees:
o Need to fill-up PMRF (PhilHealth Member Registration Form).
 For Employers:
o Submit Form ER1 (Employer Data Record).
o Prepare Securities and Exchange Commision(SEC) Registration.

41
Purpose:
Required to do so
because it is mandated by
the government for
business registration.
Processing time: Fees:
One (1) day upon  None
submission of documents.

Table 13
Requirements and Fees: PhilHealth

5. PAG-IBIG Fund
 Register and submit necessary forms.
Procedure:
 Submit:
o Employer’s Data Form (EDF)
o Specimen Signature Form (SSF)
 Prepare:
o Valid ID
o SSS Registration
Bring the original copy of:
o SEC Registration or Articles of Incorporation (AL)
o By-Laws (BL)

Purpose: Processing time: Fees:

Required to do so One (1) day upon  None
because it is mandated by submission of documents.
the government for
business registration.

Table 14
Requirements and Fees: PAG-IBIG

42
6. Mayor’s Office
 Obtain a permit from the Municipal office and to secure & fill-up application form.
Procedure:
 Submit:
o SEC Certificate of Business Registration Form
o Barangay Clearance Certificate
o Two Valid IDs
o Contract of Lease
 Prepare:
o Payment for the permit fee

Purpose: Processing time: Fees:

This permit is a document At least one (1) week upon  Mayor’s permit fee
issued to businessmen to submission of documents.
allow the business to – P2000.00
operate.

Table 15
Requirements and Fees: Mayor’s Permit

7. BIR (BUREAU OF INTERNAL REVENUE)

 Register the business with BIR and secure BIRCertificate of registration

Procedure:

 Fill-up registration form:

o BIR Form 1903

 Submit:
o Certificate of registration from SEC
o Barangay Clearance
o Business Permit from Mayor’s Office
o Contract of Lease
o Valid ID

43
Purpose:
Required to do so
because it is mandated by
the government for
business registration.
Processing time: Fees:
One (1) day upon  None
submission of documents.

Table 16
Requirements and Fees: Bureau of Internal Revenue

Proposed Marketing Program

Product Strategy

Product Strategy is defined as the layout or the projection of the project towards

its future profitability. The formation of this product strategy enables the proponents to

think of a way on how the business will be successful in the future. The strategy that will

be doing is to be a hospitable business that caters students to a unique manner so that

they can experience good quality service. It also helps on achieving their excellent

performance by providing an atmosphere of learning, privacy, leisure and comfort.

Our product is a napping lounge for students who are experiencing sleep

deprivation and our service provides a comfort and a relaxation in a unique way since

most of the time, students look for something to spend their vacant time and most of

time they are able to do this kind of relaxation at the café which you can't really rest. Our

services are very affordable and there are additional benefits of napping here because

we have nap assistants where you ask all your needs and additional services such as

shower room, locker room, pantry area with finger foods and refreshments and a Wi-Fi

connection.

44
 Nap to the Top aims to provide a sleeping lounge for students at an affordable

price without compromising quality. Unlike pre-existing facilities like the school library

and lounge area, it will provide exclusive lounging per customer where they can rest in

private.

Price Strategy
Price Strategy is a form of competing price or value of a product or service in a

business. A business can use different pricing strategies when dealing with a product or

service for the benefit of the business in the market. The price differs depending on the

location and on what market you are aiming. It also makes a big impact towards the

consumers who will be acquiring our service due to the fact that the strategy on pricing

the service is very important for the maximization of the profitability of each service

rendered in the business.

The proponents is going with Economy Pricing where in the budget of its target

market is considered in deciding the price of the service, with an option of producing

more quality service for those who can pay more (Prestholdt, R., 2017, June 20. Pricing

Strategy for Products: Economy, Skimming, Penetration, and Premium).

Bunk beds are priced for 85/hr while common lounge is priced at 65/hr. Rates go

lower the more hours the consumers purchase.

Place Strategy

Place Strategy is a ground plan on how and where a business will be placing its

product and services that can make it more beneficial and accessible to the market and

45
consumers. The strategic positioning of the business is a key success in view of the

consumers due to the fact that it is easy to access and approachable for students. This

strategy will offer the consumers an ideal way of promoting and giving people are

awareness towards the objective and goal of the business.

The establishment is conveniently located beside Fatima University Medical

Center where majority of our target market’s (3rd-4th Year Students) classes are located.

Promotion Strategy

Promotion Strategy aims to target the betterment and advancement of a company’s

products or services in a business. Nap to the Top promotional strategy is to inform, and

influence the consumers towards the business goals and objectives through the use of

customer referrals, advertising brochure, and community relationship.

 Customer referrals - The proponents will be using mailing options to

communicate and to ensure good relationship with customer to hear their

feedbacks and suggestions on what they admire and appreciate on the business.

 Advertising Brochure - This will help more on promoting and advertising the

business towards the people in the community and giving them awareness on

what aid or interest they may have in return.

 Community relationship – Communities around the area will be also have an

involvement towards the business. The proponents will be engaging in the

activities in the community so that they may support and acknowledge a good

and stable environment for the business.

46
People

The people in a company are an attraction and captivation towards the need of a

successful business. The company must not only attain its goals and objectives but to

exceed their desire expectations. This enables the business to acquire employees with

good conduct and good integrity applying to the business or the consumer. The

consumers need to be pleased and satisfied on who they are dealing within the

business.

Personnel will be trained before the start of operation to ensure that they can

handle all of the customer concerns that will arise. There will be a total of five (5)

employees that will consist of the Manager, Receptionist, 2 Nap Assistants, and a

Cleaning Staff,

Process

Process it is means of achieving an outcome of a company and its procedure on

being a successful business in the future. This enhances the outcome of the consumer

reaction and feedback regards to its processes and outline of the core values of the

company. It gives an action on achieving a good method or proceeding through the

involvement of the business to the consumers.

Physical Evidence

Physical evidence is the status by which you have a tangible product or service

that you provide or can be acquired. Physical evidence is to attract the right segment

and target, and to achieve the right positioning, physical evidence is used. Off course, in

47
marketing it is not used for services only but also for products nowadays. Products are

nowadays sold through mainly retail and e-commerce. Both these areas are services

within themselves.

Nap to the Top will provide top quality service through its facilities. Designed to

provide the most comfortable environment for relaxation, it is also equipped with

amenities that is needed so the students can readily go back to their academic

commitments with a refreshed mind and body.

48
 Chapter 5

SERVICE FEASIBILITY

Services Offered

The Nap to the Top will offer services to the student who want to take their well-

deserve nap, Rest and study during breaks. It will also provide internet access to its

loungers and offer coffee and finger foods to its customer. It will also provide a shower

room and locker area. This Student Lounge aims to reduce the number of students

having a hard time concentrating on their academics because of sleep deprivation. It

wants to help students by providing an area they can safely and comfortably rest their

tired minds and bodies. The student lounge will be offering bed rentals with nap

assistance, wherein students who will rent will be accommodated with a person

responsible with waking them up depending on their time of choice.

Service Layout

Nap to the Top will be located Antipolo Valley Mall, Km. 23, Sumulong Highway,

Antipolo. It is behind Bo’s Coffee and in front of the AVM Food Court and 7-11

Convenience Store. The space to be rented is 170 square meters where all facilities and

utilities are properly available.

The project layout will be divided into the following areas:

 Back Office -It is where the General Manager of the company will work. The
management and transaction for the business will take a place here.
 Comfort Room - This is located near in the locker are.
 Locker -This is located near in the comfort room for male and female.
 Pantry -This is where the employee can store and prepare meals for the
customers.

49
  Cabins - This is where the customer can take a rest.

Service Process

Nap to the Top! provides napping services to the students. To inquire or apply for

membership, the customer will first proceed to the front desk where they will be asked to

fill up required documentations. Once these are done, they can choose from the two

options: bunk beds or common lounge. They can then approach our Nap Assistants on

their preferred time to be woken up. Our Nap Assistants are also available to assist our

customers on their needs from the pantry or shower area.

Nap to the Top!

Receptionist
Membership andOther
Inquiry

Bunk Beds Common Lounge

Nap Assistants
Assist with Preferred Time of
Waking Up and Shower
Area/Pantry Concers

Figure 12
Nap to the Top! Service Process

50
Equipment Requirements

This Business will use the following equipment’s for its operation:

Equipment No. of Units Unit Price Total Prices

Air Conditioner 4 25,999.00 103,996.00
Computer Set 2 16,990.00 33,980.00
Printer/Scanner/Fax 5,200.00
1 5,200.00
Machine
Ceiling Fan 3 1,500.00 4,500.00
Cash Register 1 19,452.00 19,452.00
Security System 1 1,199.00 1,199.00
Refrigerator 1 8,798.00 8,798.00
Wall Fan 20 699.00 13,980.00
Bedside Lamp 20 780.00 15,600.00
Telephone 1 2,250.00 2,250.00
Dispenser 1 3,699.00 3,699.00
Coffee Maker 1 785.00 785.00
Oven Toaster 1 2,999.00 2,999.00
Microwave 1 2,754.00 2,754.00
Biometrics Machine 1 4,999.00 4,999.00
60” Television 1 53, 450 53, 450
Fire Extinguisher 2 1, 250,00 2, 500.00
First Aid Kit 2 180.00 360.00
TOTAL 280, 501.00

Table 17
List of Equipments

51
 Supplies Quantity Unit Price Total
Paper 2 886.00 1,772.00
Pens 3 50.00 150.00
Stapler 2 139.00 278.00
Staple Remover 2 175.00 350.00
Scissors 2 100.00 200.00
Puncher 2 59.00 118.00
Cork board 1 300.00 300.00
Clip 2 30.00 60.00
Pencil 2 75.00 150.00
Marker 2 45.00 90.00
Rubber Bands 2 100.00 200.00
Stamps Pad 2 90.00 180.00
Ink pad 2 125.00 250.00
Folder 1 212.00 212.00
Envelope 1 112.00 112.00
Trash Bin 6 600.00 3,600.00
Mop 2 345.00 690.00
Dustpan 2 72.00 144.00
Broom Stick 2 70.00 140.00
Rug 3 100.00 300.00
Dish washing Soap 5 250.00 1,250.00
Hand Soap 5 88.00 440.00
TOTAL 10,846.00

Table 18
List of Office Supplies

52
Fixtures No. of Units Unit Price Total
Reception Table 1 32, 400 32,400.00
Bean Bags 12 600.00 7, 200.00
Shoe Rack 4 599.00 2, 396.00
Bunk Beds 10 14,300.00 143,000.00
Office chair 2 1,200.00 2, 400.00
Filing Cabinet 1 3,400.00 3,400.00
Drawer 4 1,650.00 6, 600.00
Shelving for
1 5,300.00
Stockroom 5,300.00
Signboard 1 2,000.00 2,000.00
Backdrop for
1 2,300.00
Reception 2,300.00
Extension Socket 4 233.00 932.00
Shelving for Pantry 1 6,500.00 6,500.00
Lights 5 2,400.00 12, 000.00
Pantry Counter 1 40,950.00 40,950.00
Shower Head 2 3,000.00 6,000.00
Carpet Installation 2 7,800.00 15, 600.00
Sink 4 2,850.00 11, 400.00
Toilet 4 5,199.00 20, 796.00
Renovation Cost
1 450, 000
(including Labor) 450, 000
TOTAL 771, 174.00

Table 19
List of Fixtures

53
Store Supplies No. of Units Unit Price Total
Mattress 20 4,499.75 89,995.00
Pillows 40 479.75 19,190.00
Blankets 20 553.00 11,060.00
Bed Sheet 20 675.00 13,500.00
Pillow Sheet 40 199.00 7,960.00
Extra Blankets 20 553.00 11,060.00
Extra Bedsheet 20 675.00 13,500.00
Shower Curtain 2 384.00 768.00
Shampoo 24 192.00 4,608.00
Conditioner 24 192.00 4,608.00
Soap 336 30.00 10,080.00
Towel 20 195.00 3,900.00
Face Towel 20 129.00 2,580.00
Toothpaste 48 139.00 6,672.00
Bread 192 65.00 12,480.00
Bread Spread 192 120.00 23,040.00
Water Gallon 2 250.00 500.00
Chips 2400 15.00 36,000.00
Cup Noodles 2400 12.00 28,800.00
Coffee Grounds 48 65.00 3,120.00
Creamer 48 36.00 1,728.00
Tea 48 129.00 6,192.00
Sugar 48 24.00 1,152.00
Chocolate Drink 48 375.00 18,000.00
TOTAL 330,493.00

Table 20
List of Other Supplies

54
Service Operation
Nap to the Top! will be open Mondays to Saturdays, from 8AM-8PM. Employee

schedules differ to cater to the number of students that will come into the establishment.

One employee cannot go out if not relieved by another so as to keep the business going

even during lunch hours and breaks.

Table 21
Service Schedule
(See below)

55
WORKING ARRIVAL OF SERVICE SCHEDULE CLEANING SUBMIT
HOURS EMPLOYEES AND DAILY
AND ARRIVAL AND PROVIDE ASSISTING OBSERVE CLOSING REPORT AND
PREPARATION ACCEPTING SERVICE CUSTOMERS AND LISTEN CHECKING OF
FOR OPENING OF THAT THE (IF THEY TO ALL OF INVENTORY
CUSTOMERS CUSTOMER WANT TO THE
WANTS AVAIL CONCERNS
FOOD, AND
(BUNK DRINKS REQUESTS
BEDS OR TOWELS OF THE
COMMON AND CUSTOMER
LOUNGE) BLANKETS)
7:00AM

8:00AM

9:00 AM

10:00AM

11:00AM

12:00PM

1:00PM

2:00PM

3:00PM

4:00PM

5:00PM

6:00PM

7:00PM

8:00PM

9:00PM

56
Project Layout

Figure 13
Floor Plan

57
 Figure 14
Projected Layout

58
 CHAPTER 6

FINANCIAL STUDY

A financial feasibility study involves the capability of the project organization to

raise the appropriate funds needed to implement the proposed project. It projects how

much start-up capital is needed, sources of capital, returns on investments, and other

financial considerations. This aspect is a very crucial component of the feasibility study.

This portion, however, requires an understanding of the basic concepts of accounting.

Major Assumptions
This portion states all the major assumptions used in the project and includes all

of the following:

 All amounts shown in figures below are stated in Philippine Peso (₱).

 The partnership starts its operation at the beginning of 2019.

 All revenues throughout every year are on cash basis.

 All services are availed equally by the projected annual clients, all throughout the

year.

 Rates are subject to 5% increase every two (2) years.

 All revenues are based on 25% target market on population given and also

based on 72% demand on the target market based on the willingness of

respondents to avail the service.

 The population used to project the financial statements is the age group of 15 to

29 years old from Antipolo City (location of the business), in which the said age

59
 group are commonly students. In the average the population used is only 28.88%

of the total population.

 All service revenues are inclusive of Value Added Tax (VAT).

 The services rendered are forecasted to increase 1.72% as shown in the market

study, the annual population growth rate provided by Philippine Statistics Office

as of 2015 (latest population growth rate).

 Average inflation rate of 3.2% in years 2019 to 2023 was considered for the

purchase of inventories, supplies, utilities, and advertisement.

 All purchases and payments made were VAT exclusive.

 All purchases happened during the beginning of the year.

 Office supplies and Store supplies will increase by 10% annuallyand also subject

to inflation rate.

 It was assumed that 90% of office supplies and store supplies were used at the

end of each year.

 Initial payment for the lease contract includes 1-month deposit and 2 months

advance.

 Rent expense, exclusive of utilities expense, will increase 5% annually.

 Straight-line method was used for all fixed assets with no salvage value.

 Utilities expense will increase 5% annually and also subject to inflation.

 Repairs and maintenance expense of all Fixed Equipment, will be based at 5% of

the initial balance and will also be subject to inflation.

60
  Salaries of employees increase 5% every two (2) years.

 Bonuses are given to employees and officers.

 SSS Fund, PhilHealth Fund,and Pag-IbigFund will be paid at the next month.

Payment for the last month of the year will be done the first month of the

following year. The contribution is based on the current contribution tables

provided by the agencies.

 In accordance with the law, income tax for the first three (3) quarters shall be

treated as expense while the remaining quarter will be treated payable on the

next year.

 Projected advertising expense will increase 5% every year.

 Each partner will withdraw ₱10,000 every year-end.

 The profit or loss is divided equally among the partners.

Projected Financial Statements

Projected financial statements generally cover the first five (5) years of the

operations of a business. A sample projected Income Statement, Balance Sheet,

Statement of Changes in Partners’ Equity, and Cash Flow Statement is presented

below.

61
 NAP TO THE TAP
Statement of Comprehensive Income
For the Year-ended 2019-2023

2019 2020 2021 2022 2023

Service Revenue 2,471,342.50 2,596,757.31 2,951,298.42 5,097,960.00 6,021,502.20
Less: Cost of Service 1,248,451.45 1,314,481.05 1,421,963.58 1,505,282.89 1,631,937.25
Gross Income 1,222,891.05 1,282,276.26 1,529,334.84 3,592,677.11 4,389,564.95
Less: Operating Expenses 1,497,875.25 1,114,103.55 1,187,708.33 1,265,695.08 1,353,906.01
Income (Loss) before tax (274,984.20) 168,172.70 341,626.51 2,326,982.03 3,035,658.94
Income Tax Expense (Benefit) (82,495.26) 50,451.81 102,487.95 698,094.61 910,697.68
Net Income (Loss) (192,488.94) 117,720.89 239,138.56 1,628,887.42 2,124,961.26

Table 22
Statement of Comprehensive Income

There will be a loss for the first year of the business as seen on Table. Losses are
normal on the first year of most business since the revenue gained by the company is
not enough to cover the startup expenses. Loss is due to Renovation and Fixtures
expenses that took up most of the company’s expenses for the first year. Remaining
working capital from their first year will be used to operate the business in its second
year.

62
 NAP TO THE TAP
Statement of Financial Position
As of the year ended December 31, 2019 to December 31, 2023

2019 2020 2021 2022 2023

ASSETS
Current Assets
Cash 783,520.36 886,345.00 1,134,790.96 2,957,893.92 5,141,100.98
Security Deposit Receivable 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Prepaid Store Supplies 33,049.30 37,517.57 42,589.94 48,348.10 54,884.76
Prepaid Office Supplies 2,898.80 3,290.72 3,735.62 4,240.68 4,814.02
Non-Current Assets
Equipment 277,641.00 277,641.00 277,641.00 277,641.00 277,641.00
Less: Accumulated Depreciation - Equipment (32,123.60) (64,247.20) (96,370.80) (128,494.40) (160,618.00)
Furniture and Fixtures 321,174.00 321,174.00 321,174.00 321,174.00 321,174.00
Less: Accumulated Depreciation - F&F (36,157.30) (72,314.59) (108,471.89) (144,629.18) (180,786.48)
TOTAL ASSETS 1,410,002.57 1,449,406.49 1,635,088.83 3,396,174.12 5,518,210.29

LIABILITIES
Current Liabilities
Salaries & Wages Payable 25,715.00 25,715.00 27,000.75 27,000.75 28,350.79
SSS Contributions Payable 6,310.00 6,310.00 6,370.00 6,370.00 6,610.00
Philhealth Contributions Payable 1,414.33 1,414.33 1,485.04 1,485.04 1,559.29
Pag-IBIG Contributions Payable 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Utilities Payable 26,737.95 28,973.24 31,395.41 34,020.06 36,864.14
VAT Payable 21,314.23 20,761.97 25,856.00 78,516.68 97,932.45
Income Tax Payable - - 17,611.13 174,523.65 227,674.42
Total Liabilities 82,491.50 84,174.53 110,718.32 322,916.19 399,991.09

CAPITAL
Antiporda, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Bo, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Bonifacio, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Castro, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Impang, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Nerval, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Sebastian, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Torres, Capital 165,938.88 170,653.99 190,546.31 384,157.24 639,777.40
Total Capital 1,327,511.06 1,365,231.96 1,524,370.51 3,073,257.93 5,118,219.19
TOTAL LIABILITIES AND CAPITAL 1,410,002.57 1,449,406.49 1,635,088.83 3,396,174.12 5,518,210.29
- - - - -

Table 23
Statement of Financial Position
NAP TO THE TAP
Statement of Changes in Partner's Equity
As of the year ended December 31, 2019 to December 31, 2023

Schedule 2019 2020 2021 2022 2023

Capital, Beginning 1,600,000.00 1,327,511.06 1,365,231.96 1,524,370.51 3,073,257.93
Add:
Additional Investment - - - - -
Net Income (192,488.94) 117,720.89 239,138.56 1,628,887.42 2,124,961.26
Less:
Drawing (80,000.00) (80,000.00) (80,000.00) (80,000.00) (80,000.00)
Capital, Ending 1,327,511.06 1,365,231.96 1,524,370.51 3,073,257.93 5,118,219.19

Table 24
Statement of Changes in Partner’s Equity

63
 NAP TO THE TAP
Statement of Cash Flows
For the Year Ended 2019 - 2023

Schedule 2019 2020 2021 2022 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (192,488.94) 117,720.89 239,138.56 1,628,887.42 2,124,961.26
Depreciation Expense 68,280.90 68,280.90 68,280.90 68,280.90 68,280.90
Add/(Less):
Increase in Security Deposit Receivable (60,000.00) - - - -
Increase in Prepaid Store Supplies (33,049.30) (4,468.27) (5,072.37) (5,758.16) (6,536.66)
Increase in Prepaid Office Supplies (2,898.80) (391.92) (444.91) (505.06) (573.34)
Increase in Salaries & Wages Payable 25,715.00 - 1,285.75 - 1,350.04
Increase in SSS Contribution payable 6,310.00 - 60.00 - 240.00
Increase in Philhealth Contribution Payable 1,414.33 - 70.72 - 74.25
Increase in Pag-IBIG Contribution Payable 1,000.00 - - - -
Increase in Utilities Payable 26,737.95 2,235.29 2,422.16 2,624.66 2,844.08
Increase in VAT Payable 21,314.23 (552.26) 5,094.03 52,660.68 19,415.77
Increase in Income Tax Payable - - 17,611.13 156,912.53 53,150.77
Net Cash provided by Operating Activities (137,664.64) 182,824.64 328,445.96 1,903,102.96 2,263,207.06

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property and Equipment (598,815.00) - - - -
Net Cash used by Investing Activities (598,815.00) - - - -

CASH FLOWS FROM FINANCING ACTIVITIES

Partners' Drawing (80,000.00) (80,000.00) (80,000.00) (80,000.00) (80,000.00)
Additional investment - - - - -
Repayment of Long-term loans - - - - -
Net Cash used by Financing Activities (80,000.00) (80,000.00) (80,000.00) (80,000.00) (80,000.00)

Net Cash Flow (816,479.64) 102,824.64 248,445.96 1,823,102.96 2,183,207.06

Cash balance, beginning 1,600,000.00 783,520.36 886,345.00 1,134,790.96 2,957,893.92
Cash balance, ending 783,520.36 886,345.00 1,134,790.96 2,957,893.92 5,141,100.98

Table 25
Statement of Cash Flows
Projected Financial Performance

The projected financial statements are an important tool inassessing the

performance of the company and measure itthrough the use ofsome tools in financial

analysis like financial ratios.

Financial statement analysis can be referred as a process of understanding the

risk and profitability of a company by analyzing reported financial information, especially

annual and quarterly reports. This is important because it provides an idea to the

investors about deciding on investing their funds in a particular company. Another

advantage of financial statement analysis is that regulatory authorities like IASB can

ensure the company following the required accounting standards. Also, financial

statement analysis is helpful to the government agencies in analyzing the taxation owed

64
to firm. Above all, the company is able to analyze its own performance over a specific

time period.

Some of the tools in financial analysis are the following:

1. Liquidity Measurement Ratio

Liquidity ratios measure a company’s ability to pay debt obligations and its margin of

safety through the calculation of metrics including the current ration, quick ratio, and

operating cash flow ratio. Current liabilities are analyzed in relation to liquid assets to

evaluate the coverage of short-term debts in an emergency. Bankruptcy analysts and

mortgage originators use liquidity ratios to evaluate going concern issues, as liquidity

measurement ratios indicate cash flow positioning.

Current Ratio – a liquidity ratio that measures a company’s ability to pay short-term and

long-term obligations. To gauge this ability, the current ratio considers the current total

assets of a company (both liquid and illiquid) relative to that company’s current total

liabilities.

The formula for calculating a company’s current ratio, then, is:

Current Ratio = Current Assets / Current Liability

2019 2020 2021 2022 2023

Current Asset 879,468.46 987,153.28 1,241,116.52 3,070,482.70 5,260,799.76
Current Liabilities 82,491.50 84,174.53 110,718.32 322,916.19 399,991.09
Current Ratio 10.66 11.73 11.21 9.51 13.15

Table 26
Current Ratio

65
Quick Ratio – a strong indicator of whether a firm has sufficient short-term assets to

cover its immediate liabilities. This metric is more robust than the current ratio, also

known as the working capital ratio, since it ignores illiquid assets such as inventory.

The formula for calculating a company’s quick ratio, then, is:

Quick Ratio = (Cash + Accounts Receivable + Short-term investments) / Current

Liabilities

2019 2020 2021 2022 2023

Quick Assets 843,520.36 946,345.00 1,194,790.96 3,017,893.92 5,201,100.98
Current Liabilities 82,491.50 84,174.53 110,718.32 322,916.19 399,991.09
Quick Ratio 10.23 11.24 10.79 9.35 13.00

Table 27
Quick Ratio
2. Profitability Indicator Ratio

Profitability indicator ratios, much like the operational performance ratios, give

users a good understanding of how well the company utilized its resources in generating

profit and shareholder value.

The long-term profitability of a company is vital for both the survivability of the

company as well as the benefit received by shareholders. It is these ratios that can give

insight into the all-important “profit”.

Profit Margin Analysis– it is the amount of profit generated by the company as

a percent of the sales generated. The objective of margin analysis is to detect

consistency or positive/negative trends in a company’s earnings. Positive profit margin

analysis translates into positive investment quality. To a large degree, it is the quality,

and growth, of a company’s earning that drive its stock price.

The formula for calculating a company’s Profit Margin Analysis, then, is:

66
Gross Profit Margin = Gross Profit / Net Sales (Revenue)

2019 2020 2021 2022 2023

Net Sales 2,471,342.50 2,596,757.31 2,951,298.42 5,097,960.00 6,021,502.20
Gross Profit 1,222,891.05 1,282,276.26 1,529,334.84 3,592,677.11 4,389,564.95
Gross Profit Margin 49.48% 49.38% 51.82% 70.47% 72.90%

Table 28
Gross Profit Margin

Operating Profit Margin = Operating Profit / Net Sales (Revenue)

2019 2020 2021 2022 2023

Net Sales 2,471,342.50 2,596,757.31 2,951,298.42 5,097,960.00 6,021,502.20
Operating Profit (274,984.20) 168,172.70 341,626.51 2,326,982.03 3,035,658.94
Operating Profit Margin -11.13% 6.48% 11.58% 45.65% 50.41%

Table 29
Operating Profit Margin

Net Profit Margin = Net Income / Net Sales (Revenue)

2019 2020 2021 2022 2023

Net Sales 2,471,342.50 2,596,757.31 2,951,298.42 5,097,960.00 6,021,502.20
Net Income (192,488.94) 117,720.89 239,138.56 1,628,887.42 2,124,961.26
Net Profit Margin Ratio -7.79% 4.53% 8.10% 31.95% 35.29%

Table 30
Net Profit Margin
Return on Assets – illustrates how well management is employing the company’s total

assets to make a profit. The high the return, the more efficient management is in utilizing

its asset base. The ROA ratio is calculated by comparing net income to average total

assets, and is expressed as a percentage.

The formula for calculating a company’s ROA ratio, then, is:

ROA = Net Income / Average Total Assets

67
 2019 2020 2021 2022 2023
Net Income (192,488.94) 117,720.89 239,138.56 1,628,887.42 2,124,961.26
Average Total Asset 705,001.28 724,703.25 817,544.42 1,698,087.06 2,759,105.14
Return on Asset -27.30% 16.24% 29.25% 95.92% 77.02%

Table 31
Return on Assets
Return on Equity – measures how much the shareholders earned for their investment

in the company. The higher the percentage ratio, the more efficient management is in

utilizing its equity base and the better return is to investors.

The formula for calculating a company’s return on equity, then, is:

ROE = Net Income / Average Shareholder’s Equity

2019 2020 2021 2022 2023

Net Income (192,488.94) 117,720.89 239,138.56 1,628,887.42 2,124,961.26
Average Capital 663,755.53 682,615.98 762,185.26 1,536,628.97 2,559,109.60
Return on Equity -29.00% 17.25% 31.38% 106.00% 83.04%

Table 32
Return on Equity

3. Capital Budgeting Techniques

The process in which the business determines and evaluates potential expenses

or investments that are large in nature. These expenditures and investments include

projects such as building a new plant or investing in a long-term venture. Often times, a

prospective project’s lifetime cash inflows and outflows are assessed in order to

determine whether the potential returns generated meet a sufficient target benchmark,

also known as “investment appraisal”.

68
 Payback period – refers to the period of time required to recoup the funds

expended in an investment, or to reach the break-even point. The longer the payback

period, the riskier the investment.

The formula for calculating a company’s payback period, then, is:

Payback Period = Initial Investment / Annual Cash Inflow

Payback Period
Initial Investment 1,600,000.00
Cash Inflow Year 1 68,280.90
Cash Inflow Year 2 186,001.79
Cash Inflow Year 3 307,419.45
Cash Inflow Year 4 1,697,168.32
Cash Inflow Year 5 2,193,242.15
3.61

Table 33
Payback Period

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 CHAPTER 7

SOCIO-ECONOMIC FEASIBILITY

Each company needs to build a good image by showing a good purpose of their

business. They have to build their brand by giving back to all the people that will affect

the company, Corporate Social Responsibility (CSR) is a voluntary action undertaken by

a company by doing some good deeds that can be use as an advantage in building their

image to the community.

Socio-economic is a corporate social responsibility of the company to be fulfilled in

different aspects. This part of the study concerns about on how the Nap to the Top! will

provide their corporate social responsibility to its employees, community, environment,

government and customers (Understanding corporate social responsibility. 2018, May

20).

Employee

Employees have a big role in each company. They are your manpower that could

help your business to grow and prosper. They are the bone of the company because

without them the business will not be strong and stable. Since employees are the one

who helps to our business, as a company we have to be aware to our corporate social

responsibility to our employees by giving them all their needs and not depriving them

with their rights. Our employees should be properly compensated, they deserve to be

treated equally and properly, we also need to make sure that they are safe and free from

hazard and danger. We also need to properly train them so that they can be effective

and efficient at all times. They must receive some benefits and fair salary. As a company

we have a big responsibility by protecting and helping them to grow.

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Community

A company that helps the community is also a way of giving back to their

success. This is not about creating a good image but also giving back with the

community who supports you. There a lots of way in giving back to the community such

as donating school supplies to the schools who needs it the most or giving out a

sleeping pad for those people who are affected with different calamities. Nap to the

Top’s goal is to provide a comfort to each customer but also giving out comforts for

those people who need it the most.

Environment

Our company also care for our environment so as much as possible that is why

we wanted to contribute in helping to save our earth by simply using a bamboo straws

and not using plastics so that we avoid plastics that could really harm our environment.

We also have the earth hour at least once a month to conserve some energy. We also

join to some tree planting activities together with our employees to save the environment

for our next generation.

Government

As company we want to coordinate with our government in helping the people in

our country. We will coordinate our job opportunities with the department of the

government that provides a job to the people such as Public Employment Service Office

71
(PESO) and Department of Labour and Employment (DOLE) in helping our government

to provide job opportunities to the community. This corporate social responsibility of the

Dream Catchers to the government because we want every people in our country to be

competitive enough by making sure that they are employed and productive.

Customers

As company we want best for our customers, Our Corporate Social responsibility

with our customers is to provide them the best and the most comfortable service that

they deserve. Our customers deserve to be treated like a member of the family because

we want to make them feel that our Nap to the top can helps them to relax and feels like

it’s their own house. We want to make them feel that their money is more than worth it

and that our company is more than just a business.

72
 Chapter 8

Project Implementation and Time Table

This chapter would conclude all the processes that the proponents would follow

from the very beginning to the soft opening or actual operation of the business. These

would give detailed actions that the proponents would undergo in order to establish the

business properly and according to its designated time to be accomplished.

Project Planning

A project plan is an essential part of the project that is constructed by the project

manager along with the decisions from key stakeholders and team members. It is a

recognized and permitted document that serves as the roadmap for the project and

defines the execution of the project, how it will be monitored, controlled and supervised.

Nap to the Top! will implement the rules and regulations of the business at all times. This

set of guidelines will able to help the business to sustain a good working environment

and a good image for their customers and employee’s. It is very important to have a

clean and orderly working environment so that the people will be pleased and thrilled

mentally and physically. In a day to day operation it is necessary for the service and

assistance of the employee’s to carry out the basis and order and to be accomplished

daily.

The output on planning of the project is to increase its sales in the business by

building a good relationship to the customers so that they will be satisfied of the service

provided by the business. This will result to better income and increase of profit for the

work place by reason of good service and benefit they have given and granted. Their

73
positive feedbacks towards the company will make a good influence to the environment

in and outside the business. It is crucial for the customers to be satisfied, pleased and

fulfilled with their expectations about the service that is being rendered to them for their

pleasure and satisfaction.

This with a project plan, the project proponents will have a clearer understanding

of the project scope, how to approach the project and what it will take to reach the

project’s goals.

Project Research

Primary and secondary data were gathered by the project proponents to ensure

that all informations are accurate. The proponents conducted a survey among their

target market to see whether there really is a demand for the proposed project. It will

identify how feasible the proposed project would be before proceeding to determining

how much the prioject would cost.

The proponents also required the help of professionals like accountants and

contractors to give them further detail regarding the flow of the business in terms of

Equipments and Financial Study.

Capital Allocation

After inquiring about all the cost that the project would incur, it has been decided

that there would be equal allocation from each project proponent and equal division of

income afterwards. This would ensure that all capital would be maximized and used for

developments that would be beneficial for the business in the long run.

74
Registration and Licenses

Online research would show the processes one should take to register their

business. From the bottom, like, Barangay Clearance, to registering the business with

government units such as BIR, was also taken into consideration, to ensure that the

business is legal before proceeding with major processes like site renovation.

Hiring and Training of Personnel

The input of the project planning is to provide service procedures for the

employees in order for them to know what task is assign to them in a daily routine.

Instructing the employees of the business to operate in a good behavior, be hospitable,

and to act in a positive way to the customers in the business. It is crucial to apply the

company’s policy for the betterment of the company reputation. Therefore, this

implantation of giving service operation will be a result of well-trained employee’s.

Promotions will also be applied for the employees who are in a good behavior and

excellent performance throughout the year attainment and completion. This will

encourage and motivate the employees to act on their tasks in a well responsible

manner for the future of the business.

Managing this service can make a good impact to the work environment. This

process planning is created to assure the rules and regulations of the business are

applied, resulting to monitor the personal field of employment. This task will determine

whether the employees are maintaining their good conduct in the work place.

Implementing this policies and approach to the field of work will make sure a precise and

orderly work force.

75
Advertisements and Promotion

Execution of promotional activities will also be given for a good relationship

towards the business image and reputation for their customers. This will give them

knowledge of what the business purpose is and what it wants to achieve in a daily basis.

Site Renovation

Given the location of the proposed business, building or renovating the site would

take up to three months. All expenses would be covered by and divided equally among

the project proponents.

Start of Operation

Nap to the Top! would be open to the public on November 2019, just in time for

the start of the second semester of OLFU-AC.

76
JUNE 2019 JULY 2019 AUG 2019 SEPT 2019 OCT 2019 NOV 2019

Project Planning

Project Research

Capital

Allocation

Registration

and

Licenses

Hiring and Training of

Personnels

Advertisements and Promotion

Site Renovation

Start of

Operation

Table 35
Gantt Chart

77