Establishment of junk shop in a Barangay Sampaloc, Tanay, Rizal / Dianne H. Allauigan, Ma. Caridad N. Bernal, Mike T. Jocson.

Thesis Bachelor of Science in Business Administration University of Rizal System Tanay 2019

Includes bibliographical references.

Management Feasibility The proponents are Dianne Allauigan, Ma. Caridad Bernal and Mike T. Jocson. Dianne Allauigan is assigned to record financial transactions and to check the scrap and junk materials that will be bought and sold. Ma. Caridad Bernal is assigned to secure all necessary permits, licenses and other documents. Mike Jocson is assigned to promote the sales of the scrap or junk materials through advertising and customer service policy. The investor or capitalist/industrialist partner, Mr. Alfonso Besario, will finance all the necessary expenditures to formally start and operate the business. The opening of the business will be on the last week of April 2019. During the pre-operating period, Ma. Caridad Bernal, Dianne Allauigan and Mike Jocson will employ (3) persons for the renovation of the building to meet the business requirements of the project. They will pay the workers Php 450.00 per day with a total of Php 40,500.00 in a month. During the operating period, the proponents will be working as manager/cashier. They will hire (2) helpers to assist the manager in operating the daily transaction with the customers and (1) driver to deliver the collected scrap materials to the recycling companies. As part of its objectives, personnel will send to various training and seminars to help them expand their knowledge and maintain their competitiveness. The business believes that training and experiences will help personal become productive employees who will contribute to the profitability of the business. There will be four personnel, which is the manager or cashier, two helpers and a driver. Each personnel have its own function and responsibilities to perform. The personnel must report on Monday to Saturday for at least 8 hours a day. There will helpers who will work from 8:00 in the morning to 5:00 in the afternoon. The manager/cashier has a salary of Php 7,200.00 and the helpers and driver/helper has a salary of Php 6,500.00 a month. Salary will increase, as they stay longer within the business and they work hard. Marketing Feasibility The major factor that led to the determination of the business is the number of the target markets, which is the households with a total of 24,207 and the 3 registered small junkshops in Sampaloc Tanay, Rizal. These data serve as the basis why the proponents venture into junk shop business. Based on the survey conducted, 100 out of 110 respondents are willing to sell their scrap materials in exchange of money. The tarpaulins will be prominently displayed in the location of the business location and the remaining tarpaulins will be posted in the most visible areas for the target clients to see. Flyers will be distributed in public and residential areas to get an instant recognition to the target market. The total advertisement expense is Php 700.00. The Sampaloc Junk Shop shall operate clean, fair to the customers and will make sure that it will not affect their neighbourhood through proper waste disposal. Technical feasibility The customers scrap materials will be weighed immediately as they sell them to determine its price and be paid eventually. Once a week, the collected scrap materials from the various customers will be delivered and sold to Capasco Corporation. Our location site is located in Townsite Street Sampaloc Tanay, Rizal. The total office machinery and equipment is Php 266,800.00. The total furniture expense is Php 26,500.00 with a total of Php 293,300.00. The total of rent expense is Php 72,000.00. The total building expense is Php 205,145.00. The total office supplies is Php 2,272.00. The total annual consumable material is Php 12,000.00. The total of janitorial supplies is Php 2,290.00. The total of utility expense is Php 9,600.00 and the total miscellaneous expense is Php 24,000.00 Republic Act numbers 9003 (Ecological Solid Waste Management Act of 2003). An act providing for an ecological solid waste management program, creating the necessary institutional mechanisms and incentives, declaring certain acts prohibited and providing penalties, appropriating funds therefore, and for other purposes. Proper drainage system will be practiced in disposing dirty water and other non-reusable waste materials. The owner will make sure that it will not affect their neighbourhood. Financial Feasibility The partners will invest a sum of 2,000,000.00 for the business to be operational and to come up with the required initial capital requirement amounting to Php 643,820.30. this amount constitute all the necessary expenses for the month which include scrap materials expense, permits and licenses; purchase of machinery and equipment, furniture, office supplies, cost of materials and labor needed for the renovation of the area and other expenses that will be incurred in the preparation of the business. In the first year of operation, the business is expect to earn Php 550,847.78 net income. All the expenses incurred are deducted from the gross income including 30% income tax. The net income shall be distributed according to each partners' share in equity. The return on asset is 0.20, return on equity 0.22, return on investment is 0.28 and the ratio of gross cost to gross income is 2.49. The cash payback period of the investment is 2.70 or 2 years and 8 months. The shorter the payback period of the business the more attractive the business will be to the management and investors. Socio-Economic Feasibility As part of the private entity, the business plays a role in supporting small scale to medium size types of business and the country's economy, both directly by providing employment opportunities and indirectly by procuring from and providing services to other key sectors of the economy. The junkshop aims to be known and be recognized as an institution that provides effective and efficient buy and sell business entity to the people and gives employment to the community. The business will profit substantially which will also be contributing to the government revenues through taxes levied on the licenses for the requirements, value added taxes on the services offered by the business. Moreover, Sampaloc Junkshop does not focus on profitability alone but aims also to be socio-economic friendly as well. CONCLUSION TO FEASIBILITY Upon accomplishing the thorough research and systematically analyzing the gathered data, it is proven without a doubt that the proposed business is profitable, visible and feasible. The proponents conclude that the proposed business would generate sales and earn profits. The return on investment of 0.28 in 2020 and the cash payback period of the investment is 2.70 or 2 years and 8 months therefore, it is with high recommendation that this business proposal must be pursued.