How much does it really cost?

How much does it really cost?

Having a business is one of the dreams of the many Filipinos around the globe.  When you came to a food cart franchise advertisement and got excited to see that having a business is just around twenty to thirty thousand pesos, you should come down and start planning the business. There is a saying "Let us cross the bridge when we get there," but I would advise that this is not the type of bridge that you will enjoy when you get there unprepared.

You should think of where you will be placing the cart? What would be the appearance of your business area, should you have some repairs or construction to do? What is the spending power of your target market of your chosen location? Who will operate the cart and how much will you pay them? What other products will you be selling to add to your daily sales? These and allot more to anticipate before you begin putting your funds in the business.

You will need funds in searching for your location; you will be needing funds for the locations’ rental fee that will be requiring months deposit and months of advance; you will be needing budget for renovation whether slight or complete remake; you will purchase equipment like freezer or chiller that are not included in the franchise package; you have to purchase initial inventory for your business to operate and you have to invest in people to mandate the operation of your business. All of these you will be needing enough or more than of the budget that you expect. You should also have some capital funds that will be available during your first quarter or a half for your operations.

Now let’s do the math:

For a customized BUSINESS PLAN 

contact Mr. Ace Generalo at 0908-2064187

Let’s check the expenses that you had in finding a location, if you have been commuting in finding a location you will spend an average of 500 per day, that’s around 8 hours of searching. But if you brought your car during the search you will have an average of 800 spent during the search. What if you were not able to find one in one day, you will be spending more. Let’s just say you spend an average of 2,000 pesos. Next thing is the rental terms that you had with the location, let’s say that the rental is 8,000 pesos and the lessor asked for 2 months advance and 2 months deposit, that is what they usually ask in commercial spaces. And let’s assume that you spent an average of 5,000 pesos for renovation, cleaning and painting it bright. And let’s assume that you had franchise package bought for Php 25,000 plus some additional products bought worth Php  5,000. Your products might need a freezer especially when you go for food business, that is not included in the franchise package you bought, so you will be purchasing a freezer let’s say worth Php15,000.

Now here is the computation;

Location search         Php 2,000

Rental fee

   8,000 x 4 months        32,000

Renovation                       5,000

Franchise Package          25,000

Addl products                   5,000

Freezer                            15,000

For a total of           Php 84,000

Now that is Php 84,000 to set up your business. You see? It’s not just the Php25,000 that you will be needing to set up the business. These are all estimates you can do some bidding and haggling to make it low.

The fund needed to put up the business is Php 84,000.00 but here you are not yet starting your business. To start a business you should have a crew that you have to pay to operate the business and conduct the day to day selling, Food cart business is not required to comply with the existing basic rates of employment; first, because we are part of the Small and Medium Enterprises; second, is that the crew that you are hiring does not need professional expertise; and third, because you are still testing the business in the market. So you can pay your crew around Php150 to 250 a day depending on your negotiations, plus your crew can be some young out of school youth that needs to earn money to compensate his needs, not the one who have a family and have plenty of mouths to feed.

Now that you know the cost of setting up the business let us now compute the cost of operating your business. Your monthly operational cost includes the following;

Monthly rental        Php 8,000.00

Electric consumption    1,000.00

Water                                 500.00

Labor

     200 x 30 days            6,000.00

Miscellenous                  1,000.00

Total                     Php  16,500.00

The cost of your monthly operation is Php 16,500.00. There you will find a miscellenous fund of 1,000.00 that will take care of sudden expenses like running out of ketchup, cooking oil or gas. Remember that this is just an estimate, anything that you may do to save from the expenses will be part of your profit.

contact Mr. Ace Generalo at 0908-2064187

Now how much budget do you really need for the business?

The budget you will need is the budget for setting up the business plus budget for some months of operation. That’s the real investment!

The budget for setting up the business        Php  84,000.00

Monthly budget for 6 months

       (16,500 x 6)                                              99,000.00

GRAND TOTAL                                        Php 183,000.00

I always suggest a minimum monthly budget for 6 months because you cannot have the real response of the market in 2 or 4 months. Some market response are superficial, sometimes its on the timing.

So when your budget is ready, you can start your business!

NOW! If you have the budget and 

wants to save your self from the hassles!

Another option that you can have is the MINI7 Franchise!

ALL-IN, HASSLE FREE, WORRY FREE!

REAL FRANCHISE PACKAGE!

Mini 7 is a co-managed franchise with the package of 

P250,000 

one time payment.

It is an all in package that will give the investor the chance 

to become a BRANCH OWNER of  Bee Smart Franchise Inc. 

WE will REGISTER the business, 

INSTALL the business, 

OPERATE the Business and then 

TURN-OVER them to YOU!

contact Mr. Ace Generalo at 0908-2064187

A much more detail is prepared upon meeting, for the meantime here is the overview of the business

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SEC REGISTERED

70% of the branch will be owned by the investor or franchisee, 30% of ownership will remain with Bee Smart because it (Bee Smart) will co-manage the business so that the franchisee will enjoy proper monitoring and management of the business and more assurance of success and profit.

Upon Payment the Company (Bee Smart) will start processing the SEC registration or articles of incorporation. All fees are covered in the (250,000) investment package.

BUSINESS PLAN DISCLOSURE

Bee Smart Franchise will disclose the full detail of the business plan to the franchisee as guide to the daily operation in terms of short term and long term plans of the company to the franchisee.

NO PROBLEM FOR THE OFFICE/OUTLET SPACE RENTAL 

The company will look for location of the outlet, within the area with the help and suggestions of the franchisee. The payment for the rental which covers the advance and deposits, as will be required by the lessor is already covered in the 250,000 investment package. 

contact Mr. Ace Generalo at 0908-2064187

FIRST 3 MONTHS OPERATION

The Company will cover the first three (3) months operation of the outlet and will implement the full plan of the business, together with the trial and errors depending on the response of the market. Rest assured that with the experience of the company in handling food cart franchising some problems are expected and will be prevented. Franchisee may expect not to invest more money during this pioneering period. After 3 months, full turn over of the operations will be given to the franchisee or his/her management staff. These staff are trained by the company during those 3 months. After the turn over, the company will still monitor the outlet as STANDARD PROCEDURES based on the business plan.

OUTLET SET-UP, EQUIPMENT AND CONTENTS

The company (Bee Smart) will give the outlet the following tangible and intangible items and services

1. Complete Business Registration, (SEC, Mayors, BIR, etc)

2. Selection and rental of the outlet

3. Renovation and repairs, (as needed or negotiated with the lessor)

4. Installation of office equipment

      a. 1 complete set of computer 

      b. printer

      c. cash register

      d. 2 office tables

      e. 2 office chairs

      f. 2 desk fan

     g. Installation and training of staff on the POS system 

             (POS worth 35,000)

     h. Design and turn over orientation to the staff of the outlet website

             (Site worth 20,000)

     i. marketing materials, brochures, flyers etc.

     j. whiteboard

     k. office supplies

     l. installation of phone with DSL and WIFI

5. Installation of Wholesale Section

     a. 1 unit Chest Freezer

     b. 1 unit chiller

     c. 2 units product shelves (2ftx3ftx6ft)

     d. 1 unit counter table

     e. P20,000 worth of variety of equipment & materials for sale  

     f. P30,000 worth of variety of wet & dry products

6. Installation of Retailing Section

     a. 1 unit Basic Food Cart

     b. Training and monitoring of the crew

     c. 3 dining tables

     d. 9 dining chairs

7. Installation of Franchising Area

     a. 3 dining tables

     b. 12 dining chairs

     c. white board

     d. marketing collaterals (tarpalins, posters, flyers, manuals etc)

    

(installation of aircon will be option of the franchisee)

INCOME AND SHARING OF PROFIT

all profit sharing will be based on the laws as set by the articles of incorporation. But there can be internal arrangement as advised by the company accountant. There will be monthly income for the franchisee in terms of a pay-roll that will start on the 5th month of operation. All finances will be intact and deposited to the outlets corporate bank account. The Franchisee will be the final signatory of all check payment by the outlet as prepared by the monitoring team of the company. Daily sales are deposited daily to the outlet's corporate bank and can be monitored by the franchisee through the PO System of the outlet.

MARKETING AND ADVERTISING

The company and the outlet will continuously work together for the marketing and advertising activities of Bee Smart Franchise and all the brands that it handles. meanwhile, all through out the operation the outlets will be conducting local marketing activities as advised by the company or through initiatives of the outlet with the approval of the company.

OUTLET OPERATIONS

The outlet will conduct its daily operations as an order and sales office, a wholesale store for local business people, a retail convenience store and as a franchising branch that cater interested individuals to become a franchisee.

OTHER DETAILS WILL BE DISCUSSED INSIDE THE OFFICE DURING YOUR VISIT

contact Mr. Ace Generalo at 0908-2064187

_______________________________________________________________________

Application Process

1. Meeting orientation to the franchise business

2. Disclosure of the Business plan

3. Upon your approval, the reading and signing of contract

4. Payment of the package

Establishing Procedures

1. Upon payment of 250,000

2. During 1st to 2nd week, processing of the SEC registration

3. During 1st week, scouting for location of the outlet

4. 3rd week, renovation of outlet

5. 4th week, installation of the outlet

6. Start of operation

 For more info, please contact Mr. Ace Generalo at 0908-2064187

or visit our website http://www.beesmartfranchise.webs.com/