Sta.

Rosa - Tagaytay Road, Santa Rosa, Laguna

+638 570-9999

bookfrapped@yahoo.com

A. Executive Summary I. Introduction of the Business Being bookworms, the heads of the bookFrapped firm had the idea to sell books. As reading them is our hobby, selling them would be an extension of us. But come to think of it, in this fast modernizing world, the idea of selling Books would be absurd as simply typing the name of the book along the word summary in the end already beats its purpose. But looking beyond, books are more than that. They say that computers are a great invention. But there are just as many mistakes as well, but theyre nobodys fault. A wise man once said: A computer once beat me at chess, but it was no match for me at kickboxing. Well lets all stay put as one real invention has been made. The Bio-Optic Organized Knowledge device, trade named BOOK. A BOOK is a revolutionary breakthrough in technology: no wires, no electric circuits, no batteries, nothing to be connected or to be switched on before using. Its so easy to operate that a child can use it. Compact and portable, it can be used almost anywhere in the bathroom, by the armchair, while walking yet as powerful as a CD when in terms of holding memory. And that may friends, is what fortified our idea of selling books. But, as again, being bookworms, merely reading does not suffice. What would is reading properly. One does not read at a party with the bass pumping through your body, as well as at the wet market where chatter overwhelms other forms of conversation. And yet, another idea forms, a caf in the bookstore itself, either to provide a place to read, or simply, to hang-out.

II. Financial Projections A recent study suggests that an ordinary bookstore in our case weekly gains around 49,000.00 while a caf gains 7,000.00. Together, most likely, we would be gaining 56,000.00. Minus the price of buying 30,000.00 and the 50-

books from publishers which would likely be around 50 partnership with Starbucks leaves us with estimated weekly income would be likely be us

3,500.00. With that, our

22,500.00. Monthly income would most 1,080,000.00. 5 years gives

90,000.00, yearly income would be

5,400,000.00 and 10 years gives us

10,800,000.00.

Although all presented details may vary due to sales fluctuations when there are no good books in season, or vice versa, to our pilot-months, to increase in sales for the reason of our fifth-year book-collection expansion and our tenth-year addition of a conference room and a sky-garden - the monetary projections are what most likely we will expecting the incoming years. The budget allotted for advertisements and publicity material, also tax allowances, donations, tips, repairs, and salary have not yet been added due to the imbalanced system here in our country. Sales may increase 5%-10% yearly due to the addition of new books, or decrease monthly because no new books are in season really, the changes may vary a lot, but at most, the presented details may serve as a backbone for our expectations. III. Present Status Currently, bookFrapped is in the process of establishing control. Being a new-found firm, its too early to judge its current status in the economy and its future may very well depend on its pilot months. But having an edge over our competitors (in this case, our cafe), there is a very good chance that the firm will gain fame over the next few weeks.

IV. Growth Trends in the Market Statistics show that from 1997-2002, book sales increased by 21%, and with the Harry Potter series being introduced, from 2002-2009, sales increased by a staggering 38%, and the Percy Jackson and the Olympians series along with the Twilight Saga also contributed positive sales from 2003-2010, increasing by 18%. With that, a Book-selling firm would be a nice choice during this time as a lot of good books are present and a wellestablished and well-flourishing market. It also seems that the major clients for these kinds of books are young-adults, ages ranging from 10-21. B. Purpose of the Business Plan To establish a bookstore will be hard; first, there will be the challenge of attracting publishers, the threat of electronic books, the lack of perseverance to read and just go search it up in the internet for a summary, and simply, natural competitors like Powerbooks and National Bookstore already pose a challenge. But what makes the difference between our bookstore and theirs is that our bookstore offers a place of study. Our bookstore features a caf inside that can serve as simply a place to meet to a place of study, with that, our bookstore becomes a place of hang-out of teens and young adolescents, which generally, is our target audience. The idea is to start small, with the caf, in 50-50 partnership with Starbucks, along with several computers, already present. Target books would be a wide array of fictions, from young-adult to science, some thrillers, romance and fantasy. But as progress goes, the plan on future income, most likely after 4 years, goes to collection-expansion. Additional genres would be traditional western, native, religious, national, mystery, historical and fictitious historical to name a few. A plan to add a second floor

by the fifth to tenth year with an audio store independently named as audioBook goes as well. Future expansions, around ten to twenty years, would be accredited to an addition of a third floor, all for books and a fourth floor that will be divided into two; one section is to be used for conferences, while the other functions as a sky-garden. Ideas presented here shall be dissected and further explained in the succeeding sub-topics.

C. Business Description, Goals and Objectives I. Business History bookFrapped is a business venture that has opened on February 12, 2011. It is located at Sta. Rosa - Tagaytay Road, Sta.Rosa, Laguna (Beside the Paseo Complex). It specializes in its unique service and the wide variety of selections it offers. Our coffee shop welcomes everyone to hold meetings and study sessions in our small conference areas within the coffee shop itself, but future development adds a conference room at the fourth floor. We also have a library where students can go to read books and do their schoolwork. Our target customers and clients are businessmen, students, and people who love to read books most of which would be teens and adolescents. But generally, everyone is welcome. II. Goals a. Short-term goals - Create new advertisement for the business. - Raise the monthly income by adding products.

- Hire more baristas for more productivity. - Updated books in the library. b. Long-term goals - Financial Stability. - Allow franchises for the business. - Encourage more people to try the products and services offered. - Clean operations, unflawed and stable. III. Objectives Our primary goals over the next year are: Renovate our shop. Acquire new equipment like blenders, more espresso machines, grinders, etc. Maintain a cozy, work-friendly environment when choosing songs to play, proper choice of colors and appropriate furniture. Secure financing for the start-up of at least Php Increase number of customers and clients. 100,000.00.

IV. Strategies The following strategies will be pursued by bookFrapped: 1. Look for possible investors. 2. Appoint advisers for intellectual property and finance. 3. Seek new market segments/applications for products. 4. Strengthen the web presence and promote the business.

V. Achievements 1. First customer to buy a book on opening day (Entitled: Wherever Nina Lies by Lynn Weingarten) Ellie Heavensbee 2. First customer to buy coffee on opening day (Latte) Brad Jensen 3. Our 100th customer (February 14, 2011) Lavinia Primrose 4. Our 1000th customer (February 22, 2011) Darius Angeles 5. Nominated for the award: Innovation at its Peak. 6. Received a distinction because of the quality of service it offers. 7. Received the award: Top 20 Business Ventures of 2011

D. Detailed Product/Service Description Our bookstore is better than the others because we have a wide range of books that our customers can choose from, and it is sold at a reasonable price. Our caf is better than the other cafs because it has a peaceful ambiance which makes it a suitable place for reading books. We also have two areas, namely: areas that are exclusive for people that are reading magazines, newspapers and books, and another area for people who need to chat, or to discuss business matters. Combining the two, they are better than the others because this is an extraordinary business. There are a lot of bookstores in the Philippines, but only few offer this kind of service. We have a caf inside our bookstore, which makes our customers young or old, more comfortable. It is a very nice place for reading because our cafs peaceful ambiance gives our clients

a relaxed mood. We also have cream-based coffee and several basic mixtures for our patrons who do not drink caffeinated beverages children, for example. Our coffee shop also gives free Wi-Fi which makes it better for planning and brainstorming that needs internet. Students, who also need internet for their research projects, term papers, thesis etc., can also benefit from this Wi-Fi service. We also provide several computers for our clients that dont have a laptop, a notebook, an iPad nor any form of internetdevice. While searching and browsing through the internet, they can sip our delectable coffee and eat our appetizing pastries. Our bookstore has a wide variety of books to choose from fiction, non-fiction, reference, childrens books, and others. Our business, bookFrapped, is better than the others because it provides convenience to our clients since we offer them coffee, pastries, and a peaceful ambiance which gives them a great place to read magazines, newspapers, and especially books.

E. Vision-Mission Hanging in a Gold plaque at the entrance says: Vision: bookFrapped has started from an idea, and grows with an idea. bookFrapped genuinely holds the promises of books, learns from it, grows with it and lives with it. bookFrapped helps people understand the reality that books are really, mans greatest achievement Mission: bookFrapped wills its clients to enjoy and savor the moment of mans triumph and breakthrough from idleness, and that is reading.

bookFrapped ensures that quality of books, ambiance of reading and prosperity in learning. And finally, bookFrapped guarantees that with every visit, growth in mind is assured.

Marketing A. Corporate objectives I. Sales Forecasts We have two main products: our books and our coffee. They have different selling prices because they are different products. The prices of the books depend on a lot of factors its cover, the story itself, shipping fees, popularity, and content. Depending on the book, the price range may be:

100 500 -

499 thin, paperback books, comics, magazines 1699 thick and hardbound books, novels

1700 above - series sets *Prices may vary on selected, specified and special items.

The price of our coffee is from:

90 120 170 -

130 for small sized blends 150 for medium sized blends and; 210 for large sized blends

*Prices may vary on selected, specified and special items.

II. Profit Projections We want to keep our prices affordable so that we can keep our customers pleased, but we also need profit so that we can earn. Our desired profit would most likely be around 25% - 40% of our original capital in the first 3 to 4 years of operation. Low or high profit, we still make sure that our products will still be sold at a reasonable price and there will be no inflations. We also make sure that we will not lose money because of this.

III. Market Share Goals Generally, the market for book-selling is flourishing nowadays. So we want to be part of it as much as we can, but starting small, our market projections are still too early to be determined. But since our business is one-of-a-kind, we can expect stable increase on market shares. By the fifth year, we are hoping that we would have made it into the charts of the Philippines, and keep it that way.

B. Market Situation

I. Strengths and Weaknesses

Generally, our shop is more than your ordinary bookstore, nor your ordinary caf. A major strength of our business is that its very unique, say for some businesses that offer the same kind of service, ours is not your ordinary. We sell books, as well as coffee. We provide our readers a peaceful ambiance where they can work, gather or simply to buy time. Offering a

wide variety of choices of genres of books - from fictional to historical along with different blends of coffee and pastries, our shop will surely be remembered.

But then again, we have several weaknesses. One is that what if the clients could abuse the service by simply taking a book, reading in the caf and simply returning the book to the shelf when done. Another is that we should have plenty of capital funds, as adjoining shops would require plenty of money to start with. Then, we have the problem of losing publishers and partnerships due to lack of interest, and as well as our natural competitors, firmly-established bookstores and cafes. But all of these can be offered a solution, which will be discussed in the upcoming topics.

II. Opportunities and Threats Being a new and fresh business, one-of-a-kind as a matter of fact, our business would draw a lot of attention from the general public. This would give way to plenty of opportunities such as potential investors, interested clients, welcoming partnerships and stable publishers. Other opportunities regarding books would be those of which in season. Taking advantage of the latest release of a book could boost sales rates and popularity or publicity image. Threats in our business, bookFrapped include the other bookstores within the vicinity and in the country, like Powerbooks and National Bookstore. Other threats also include the loss of customers because some books are already out of stock in our bookstore or that our collection does not contain what they want.

C. Target Customers I. Demographic Profile Our target customers will be from 10 to 50 years of age who specifically students and working professionals. The allowance of the students will range from 500.00 to 3,000 per week while the income of 25,000 to 100,000. They are living

the working professionals is between

in dormitories, apartments and condominiums within six kilometers of bookFrapped. The educational level will be from primary school to postgraduate work. Probably 15% of the total number of our customers will be

coming from different areas. 9% of this will be going to our establishment for relaxation while the remaining 6% will be businessmen who will hold meetings in our conference rooms. II. Psychographic Profile Our clients are the hardworking, goal-driven and responsible people. They will find our establishment helpful in finishing their work earlier than its deadline and executing their plans more effectively. These people aspire to excel in their chosen profession.

D. Marketing Strategy I. Product Features and Benefits bookFrapped is an establishment which is a bookstore and a caf at the same time. It offers coffee, coffee-based beverages, frappucino, cappuccino, tea and pastries and other related products to all. A library can be found inside our establishment where students can do their schoolwork or simply read a book. We also have conference rooms that our target

audience, specifically students and working professionals, can use as a place for study and meeting sessions. People would prefer the products and services we offer than others because of the establishments peaceful ambiance. They will find our beverages satisfying and refreshing. We serve our pastries freshly-baked all the time to make it more delicious and luscious. We sell books at a reasonable price. We have a great competitive advantage because our business is unique and we provide a place like no one else can.

II. Pricing Policies Pricing may be very tricky. Commit one very small mistake in pricing the products and it can lead your business back to zero. To prevent this incident from happening, we are using the premium pricing. Everything is CONSTANT except for our yearly price increase up to the tenth. This constant pricing overlooks the unstable stocks in the market baking ingredients, mixing compounds and paper for our books. A steady inflation or a continuous fluctuation in prices would generally irritate our customers, thus reducing their numbers. More so, our general publicity image would be tarnished.

III. Distribution Logistics

One general advantage that we have over our bookstore is that our products are instantaneously ready. We simply buy from our publishers and we place them on shelves on a desired order. No culinary, no exposure, no

demonstration - books on shelves do that on their own, which in turn, cuts costs and increases efficiency.

But our caf is the one that poses the challenge. To increase efficiency, our system of ordering should be very prolific. There will be a single-file line, where the line ends, is the cashier along with the registrar, ready to take orders. When orders are taken, they are given to the coffeemakers, handed either to the barista or to the waiter/waitress, and then finally, after placing finishing touches, handed to the customer. The entire process should only take about five minutes. Along with increased staff, purchase of machines is also necessary. Coffee blenders and Espresso Machines are a must.

IV. Promotion Activities We will have a monthly promo that will give our clients discounts and freebies. For example, we will be giving a promo card to a client who will purchase a beverage or pastry. This promo card will have 12 boxes. Each box will represent one single purchase in our establishment. After filling all the boxes found in the promo card, he/she will have the privilege to get any beverage or pastry of her choice for free. Also, we will have a yearly promo that will enable us to help a charity. We intend to advertise in our website and in local newspapers about these promos. We are also sending these ads via e-mail. There are cards that can be given as a gift for special occasions. Swipe cards are also available for regular clients. These swipe cards works like an ATM card.

E. Action Plans I. Market Entry Activities Since bookFrapped is already in the market (but still in its pilot weeks), generally, our freebies and bonuses - those that improve public image - are the ones that we should be focusing on.

One activity that we would be promoting sometime between March 10 and March 29 is what we call The history for coffee. In this promotional activity, when a person buys a book, in the last page, can be found a set of questions regarding the history of the book that they bought, once they have finished answering the entry, the entry is given to the registrar for verification, once all the answers are correct and have been verified, they are given a coupon for a free small-sized coffee or any choice.

Along with the The history for coffee activity, several minor ones will be also launched. Such as the First person, where a person would buy a book first of its title would be rewarded with a free small-sized coffee and several freebies.

II. Campaign Strategies and Activities Promotional activities are a must, along with whats stated beforehand, our first form of campaigning would be establishing a website. Our second would be through the use of leaflets and flyers. Then our third, most probably after finances have been stabilized, would be the use of different forms of social media such as the radio and the television.

But the question is, What would people be interested in? All the stated campaigning forms above are all but the norm. What we need is what people would think is interesting, interesting enough to have them enter our store and buy a book.

There are several reasons why people read, some for learning, some for display, but mostly, for enjoyment - especially with young teens. Researchers say that at most, 87% of young adolescents love reading because they enjoy the book. They enjoy it because reading a book momentarily inscribes them in the plot and frees them of present burdens. So what better way to lure people to buy and read books that to have them as comfortable as possible?

The solution to have people come in our shop and grab a book is that we make them feel secure. We would provide comfortable chairs - not those that you find on coffee shops that are hard - but rather plushier chairs with armrests. We would humidify the vicinity of the caf and keep the temperature low. Yes, that would cost plenty of pesos, but that compares over what we gain.

III. Budgetary Allocations Out of the 13,000,000.00 of capital money, 250,000.00 would go to

initial publicity followed by

100,000.00 more worth of publicity materials.

150,000 would be allocated for promos and freebies running for an entire month.

The

13,000,000.00 would initially be the sum of the savings of the

three heads of the business - equally divided, whereas income would be as

well. Aside from the initial thirteen-million capital money, loans would also be made, as well as donations received would be for additional conveniences such as safe-keeping and emergency funds.

But of all the money we would be using, the one that we should be prioritizing on repaying would be our loans, because they tend to increase overtime, followed by the recognition (if requested) of our donors, then the even split-up of income from the business. All of these should be paid within 7 years. All additional income would be divided into three, one for the business account, one for the workers salary and one for the division among the heads.

Production Plan A. Product/Product Lines As we have said before, our business is far from ordinary. What define our business are our main products books and coffee. The price of a book depends on the number of pages, who the publisher is, its cover, the author and the story of the book itself while coffees price depends on its size, quantity and ingredients used. Below is the price ranges for our books and coffee. *Presented prices may vary on selected and special items. Price Range for bookFrappeds reading materials Price 100.00 500.00 499.00 Type off Reading Material thin, paperback books, comics and magazines 1699.00 thick and hardbound books, novels

1,700.00 and above series sets

Price Range for bookFrappeds beverages Price 90.00 120.00 170.00 Size of Beverage 130.00 small sized blends (Tall) 150.00 medium sized blends (Grande) 210.00 large sized blends (Venti)

The required number of books and coffee that we should be able to sell is uncertain because of different factors but we are certain on how much we should be able to earn daily. There is a recent study that suggests that an ordinary bookstore should gain around gains earn 49,000.00 per week while a caf

7,000.00 per week. Combining the two, our business should at least 56,000 weekly. The profit that is required to be measured is on a 56,000.00 with 7 to represent the 8,000.00. Therefore,

daily basis. We are going to divide

number of days in a week. The result of this will be our business should at least earn B. Material Requirements 8,000.00 per day.

To keep our business from running successfully, we need to continue on producing products. Just like other products, ours are produced with the use of raw materials. Out of our two main products, of which are coffee and books, only coffee requires raw materials like skimmed milk, hot water sugar and coffee beans. Books are only coming from publishers and we dont publish books. We just sell them. It helps us save time, machinery needed to print books, papers, manpower and money.

C. Schedule of activities *General Day-in Day-out Cycle (including weekend shifts) Time 9:30 AM 10:00 AM - 11:00 AM 11:00 AM - 12:00 PM 12:00 PM - 1:00 PM 1:00 PM - 2:45 PM 2:45 PM - 3:00 PM 3:00 PM - 6:00 PM 6:00 PM - 7:00 PM 7:00 PM - 8:00 PM 8:00 PM - 9:30 PM 9:30 PM Activity - Opening - Work Hours - Lunch (first batch) - Lunch (second batch) - Work Hours - Change of Shift - Work Hours - Dinner (first batch) - Dinner (second batch) - Work Hours Closing (8:30 on weekends)

D. Manpower Requirements Our store is open twelve hours a day, from 9:30AM 9:30PM (8:30 on weekends). To make it work effectively, we need 50 employees to work per day. There are two shifts, 6 and half hours each which has 25 employees 19 in the bookstore and 6 in the caf.

The first shift is from 9:30AM 3PM, and the second shift is from 3PM 9:30PM. The table below shows the number of people that are required in each shift and their jobs.

Bookstore Team Book keepers Merchandiser Customer Assistance Job Book keeper Merchandisers Customer Assistance Baggage Personnel Sales Cashiers Baggers Security Maintenance Security Guards Janitors / Janitress Members 1 5 2 1 3 3 2 2

Caf Team Barista Sales Security Maintenance Job Barista Cashier Security Guard Janitor / Janitress Members 2 2 1 1

E. Machine Requirements We also need machines so that our business can be successful. The machines mentioned below are the required machines that we will use in our business. Bookstore

Machine Computers Scanners Cash Registers Air-conditioning Units

Quantity 5 5 3 5

Caf Machine Blenders Coffee makers Espresso Machines Caftiers Filter coffee makers Percolators Coffee Grinders Computer Cash Registers Air-conditioning Units Quantity 4 2 2 2 2 2 2 1 2 4

Financial Plan A. Financial Forecast Initially, our 13,000,000.00 capital will not last long because on the

building materials, the collection of the books, the ingredients for the blends, the interior design and a lot of other factors, our capital will soon be depleted. Therefore, we are going to, most probably, loan from the bank several hundred thousand pesos to sustain daily operations. But within the incoming years or prosperity, we are assuring that the loan will be repaid. We have to admit, there are a lot of costs, seeing the initial depletion of the income, and we have to make sure that the business will have to be still operational during the entire time. Therefore, the initial income must be spent properly and wisely.

22

bookFrapped Capital Denominations Purchases: Land: Building Costs, Exterior Design: Interior Equipment: Espresso Machines (2) : Coffee Blenders (2): Refrigerator: Cash Registrar Equipment: Stored Ingredients for the Blends: AC Units (5): Book Collection: Computers (5): Chairs and Tables: Lights and Fixtures:

13,000,000.00

4,000,000.00 7,000,000.00

25,000.00 25,000.00 40,000.00 20,000.00 100,000.00 120,000.00 1,000,000.00 200,000.00 60,000.00 15,000.00 12,565,000.00

23

bookFrapped 5 years Projected Income Statement 2011 Sales Cost of Goods Sold: Beg. Inventory Purchases Less: Ending Inv. Total CGS: Gross Profit: Less Operating Expenses: Employee Salary Advertising Utilities Expenses Insurance Expenses Depreciation Expenses Miscellaneous Net Profit Before Tax Taxes (32%) Net Profit after Tax:
(350,000) (50,000) (70,000) (10,000) (20,000) (10,000) 1,040,000 (332,800) 707,200 (360,000) (40,000) (70,000) (20,000) (25,000) (10,000) 1,555,000 (497,600) 1,057,400 (370,000) (20,000) (70,000) (40,000) (30,000) (15,000) 1,585,000 (507,200) 1,077,800 (390,000) (20,000) (70,000) (60,000) (22,000) (15,000) 1,733,000 (554,660) 1,178,440 (400,000) (60,000) (70,000) (80,000) (19,000) (30,000) 1,931,000 (617,920) 1,313,080 200,000 400,000 (150,000) (450,000) 1,550,000 230,000 280,000 (190,000) (320,000) 2,080,000 300,000 250,000 (180,000) (370,000) 2,130,000 240,000 400,000 (150,000) (490,000) 2,310,000 210,000 600,000 (200,000) (610,000) 2,590,000 2,000,000

2012
2,400,000

2013
2,500,000

2014
2,800,000

2015
3,200,000

24

bookFrapped 5 years Projected Balance Sheet

2011 ASSETS Current Assets Cash Account Receivable Inventory Prepaid Expense Total Current Asset Fixed Assets Land Building Accumulated Dep. Equipment (12,565,00050,000) Accumulated Dep. Total Fixed Asset Other Asset Total Assets: LIABILITIES Current Liabilities Accounts Payable Accrued Expense Long-Term Liabilities Mortgage on Land and Building Total Liabilities: OWNERS EQUITY bookFrapped Capital Retained Earnings Total Owners Equity: TOTAL LIABILITIES AND OWNERS EQUITY: 2012 2013 2014 2015

200,000 50,000 120,000 20,000 390,000 4,000,000 7,000,000 ---12,515,000 50,000 23,515,000 -23,905,000

250,000 40,000 125,000 30,000 445,000 4,000,000 7,000,000 120,000 12,455,000 60,000 23,455,000 -23,900,000

250,000 30,000 150,000 20,000 450,000 4,000,000 7,000,000 150,000 12,390,000 65,000 23,390,000 -23,840,000

300,000 40,000 160,000 25,000 525,000 4,000,000 7,000,000 120,000 12,335,000 55,000 23,335,000 -23,860,000

350,000 50,000 165,000 30,000 595,000 4,000,000 7,000,000 130,000 12,275,000 60,000 23,275,000 -23,870,000

6,000,000 952,500

5,999,500 500,000

5,400,000 850,000

6,400,000 750,000

5,455,000 405,000

3,900,000

3,952,500

4,274,000

3,444,000

4,536,000

10,852,500

10,452,000

10,524,000

10,594,000

10,396,000

13,000,000 52,500 13,052,500

13,350,000 98,000 13,448,000

13,245,000 71,000 13,316,000

13,223,000 43,000 13,266,000

13,430,000 44,000 13,474,000

23,905,000

23,900,000

23,840,000

23,860,000

23,870,000

25

bookFrapped 5 years Projected Cash Flow Statement

2011
Cash Flow from Operating Activities Cash Received from the Clients / Customers Payments for the suppliers Employee Salaries Payments for Utilities Expense Payments for Advertising Expense Net Cash Provided by Operating Activities: Cash Flow from Investing Activities Payments to Acquire Office Equipment Net Cash Provided by Investing Activities: Cash Flow from Financing Activities Cash Received as Investment from Owner Payments to Notes Payable Net Cash Provided by Financing Activities: Net Increase in Cash Cash Balance at the Beginning of the Period Cash Balance at the End of the Period:

2012

2013

2014

2015

850,000 (120,000) (200,000) (70,000) (50,000) 410,000

889,000 (120,000) (200,000) (80,000) (55,000) 434,000

870,000 (130,000) (250,000) (90,000) (70,000) 330,000

910,000 (150,000) (300,000) (80,000) (50,000) 330,000

970,000 (300,000) (350,000) (78,000) (60,000) 182,000

280,000 (280,000)

300,000 (300,000)

270,000 (270,000)

295,000 (295,000)

180,000 (180,000)

120,000 (20,000) 100,000

130,000 (30,000) 100,000

120,000 (25,000) 95,000

125,000 (29,000) 96,000

120,000 (19,000) 101,000

---230,000

---234,000

---155,000

---131,000

---103,000

26

bookFrapped 5 Years Projected Break-Even Analysis

2011 Fixed Costs Variable Costs Selling Price BreakEven Point:

5,340,000 60,000 200 per unit 90 units

2012
5,650,000 70,000 220 per unit 81 units

2013
5,970,000 90,000 250 per unit 67 units

2014
6,700,000 120,000 270 per unit 60 units

2015
8,200,000 130,000 290 per unit 63 units

27

Appendices

Organizational Chart

Ma. Karla Denise L. Ilovino C.E.O. of bookFrapped

Astrid Noelle S. Almeda Sales Manager

Raphael Ian B. Velasco Production Manager

James Aden Louise L. Odair Supervisor

Alexandra Nina M. Everdeen Line Leader

Allan Aaron H. Lerner Maintenance Head

28

bookFrapped Location Map

29

Flyer Sample

Business Card Sample

30