Blue Heaven Memorial Park

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Blue Heaven Memorial Park and Resort Business PlanThe Blue Heaven Memorial Park and Resort business plan presented on the following pages is based on research for a Blue Heaven Memorial Park and Resort business in Inawayan, Sta. Cruz, Davao del Sur. It was developed by self-made marketing specialist, Bernardo F. Basmayor, Proprietor of Bottomline Interactive Multimedia Speech Laboratory and Educational Technology. Blue Heaven Memorial Park and Resort Scenario Blue Heaven Memorial Park and Resort is located at Inawayan, Sta. Cruz, Davao del Sur. The currently non-operational organic fertilizer facility, containing an area of 23,240 sq. m., is available for sale at Php250.00 per sq. m.. Blue Heaven Memorial Park and Resort is seeking a Php7,793,000.00 loan to completely purchase the land located at Inawayan, Sta. Cruz, Davao del Sur and to develop the site into a memorial park, coupled with a well landscaped resort facility. The business can surely have a minimum total sales revenue of Php84,000,000.00 for the total 5,600 lots available for sale at a minimum of Php15,000.00 per lot, aside from the income generated from the sales of mausoleum, maintenance service fees and the resort fees. The prevailing price of memorial lots is Php20,000.00 to 79,000.00 per lot (from actual interviews and internet sources). The purchase of this 23,240 sq. m. area is really a good purchase because this is cheaply priced and the area is very strategically located near the Inawayan cemetery; luckily located in an area where industries are speedily booming; and the providential property includes: a building for the main office, a chapel, 2 dormitories, a training facility, a kitchen and dining area, a demo house, and fence Big bonuses to the purchase are the main office building, chapel, dormitories, training facility, kitchen and dining area and demo house. The dormitories, training facility, kitchen and dining area and demo house can be renovated to suit to the design of a mausoleum. By owning the facility, Blue Heaven can increase its equity for an amount twice of the loan amount or even higher, because the current selling price in the area is now at Php500.00 to Php700.00 per square meter. Aboitiz Power is buying the lots for the Coal Fired Power Plant at Php700.00 per square meter, while Abear family and other land owners in Binugao, a barangay adjacent to Inawayan, are offering their land for sale at Php1,000.00 per square meter. This is because of the sprouting investments in Binugao and Inawayan, like the following: Beer Na Beer, Virgin Cola, Pop Cola, CJ Toyota, Ayala High Ponds, Aboitiz Power, and many others.

Blue Heaven Memorial Park and Resort will establish its niche in the memorial service and resort facility. Projections for 2011 show that it is reasonable to expect expansion of its customer base to new markets and territories. Cash Flow projections support the assumption that the company will have sufficient funds to purchase other lots and equipment and hire additional employees to support implementation of the marketing programs and expansion plans. How is this business plan organized? The Organizational and Marketing Plans for Blue Heaven Memorial Park and Resort reflects the companys current status and its plans for its future expansion. It is important that the marketing plan provide convincing evidence supporting the feasibility of the loan. The lender needs to know that the company has the ability to increase its market share (and revenues) enough to insure that it can repay the loan and interest and still maintain its profitability. Financial Documents need to reflect the companys history and project its future. T0 provide better presentation, it is assumed that this company has been in business for one year (2011) and is seeking a loan. Therefore, the financial documents need to begin with a summary of financial needs and dispersal of loan funds statement. The next section includes projections and historical financial statements for the 2011 business year (first year in business). They will show how well the company met its original projections and what its current financial status is. The third area to be covered in financial documents will address the companys projections for the future (2011-2015) projected cash flow, fiveyear income projection, and projected balance sheet. The closing pages of the financial section contain a financial statement analysis of the companys history and future projections. Utilizing the financial information developed previously, ratios are computed and matched against industry standards. Management: Blue Heaven Memorial Park and Resort is managed by Bernardo F. Basmayor. He has five prior years of experience in the funeral and memorial business, working for a local funeral parlor and as a salesman of memorial plans. Previously, he worked in a variety of service industries selling and marketing products and services. Basmayor has prospective employees to establish a strong team of very dedicated people who love to work with nature. As manager his role is to identify new business, develop and implement marketing activities, and to negotiate and close new contracts. Current Market: Today the memorial park business serves only individual accounts, with small family accounts, and currently no large corporate accounts. The services include: entombment, lawn care and maintenance. The success of the company is a direct result of Blue Heavens ability to provide personal service at a competitive rate, offering unique resort facility, landscaping and design, lawn care and maintenance, thus creating a dedicated customer base. Currently, the minimum average cost for a memorial lot is Php25,000.00. Due to congestions in public cemetery and the new law decongesting the public cemetery, memorial park becomes an important part of the society to give decent burial for the departed. Projected Market: The projected growth rate for the funeral and memorial services industry, based on the previous years is 28%. Blue Heaven Memorial Park and Resort is expected to be expanding its business with new location,

new equipment, marketing, and additional employees to meet and exceed that demand. Blue Heaven Memorial Park and Resort is expecting to grow its customer base by 50% based on the demand, its unique offering, and planned marketing activities. Loan Repayment and Loan Security: The Php7,793,000.00 in loan funds will be required for the acquisition of the 23,240-square meter lot and for its development into a memorial park and resort. Repayment of the 5-year loan, plus interest, can begin promptly in January, when loan is approved and released in November. Early retirement of the loan is anticipated, possibly by the end of tax year 2013. In addition to the property and facility, itself, the loan can further be secured by the lot to be acquired as owners equity which is, currently valued at, Php11,162,000.00, if based on the price value of Php500.00 per square meter or Php16,680,000.00, if based on the buying price of Aboitiz for the Coal Fired Power Plant at Php700.00 per square meter. The property can have a market value of Php23,240,000.00 if based on the selling price of Abear family and other land owners in Binugao who are offering their land for sale at Php1,000.00 per square meter. The lot can even have a high Php84,000,000.00 when it is based on the projected sales of memorial lots plus the sales and maintenance of the mausoleums and the revenues of the resort. Summary Description of the Business Blue Heaven Memorial Park and Resort, as a single proprietorship, handles memorial services, landscaping, lawn maintenance and resort facility, of individuals, family accounts and corporate or cooperative accounts in Inawayan, Sta. Cruz, Davao del Sur. It aims to begin with individual accounts and family accounts. It also aims to target corporate or cooperative accounts. Of the 23,240 square meters, Only 20,000 square meters is allocated for memorial park. It is assumed that 14,000 square meters or 70% of the land area allocated for memorial park is available for sale, with 5,600 lots at 2.5 square meters per lot. Table 1 shows the distribution or allocation of land to memorial park and resort facility, as well as its profit potential. TOTAL LAND AREA Memorial Park Resort Facility 30% for road and facilities Net Area for Memorial Park Area Per Memorial Lot Total Memorial Lots For Sale Price Per Memorial Lot Total Projected Gross Sales Loan Amount Projected Gross Sales Profit 23,240 square meters 20,000 square meters 3,240 square meters 6,000 square meters 14,000 square meters 2.5 square meters 5,600 lots Php15,000.00 per lot Php84,000,000. 00 Php11,689,500.00 Php72,310,500.00

For the first year of operation, the company is expected to conservatively sell 10% of the 5,600 lots available for sale, totaling Php8,400,000.00 in revenue, for Individual accounts alone, at the price of Php15,000.00 per lot. Family Accounts may generate Php5,000,000.00, when 10 mausoleums are sold at Php500,000.00 per account. Table 2 clearly shows the Projected Sales with 20% Sales Increase Per Year.Year 1 560 8,400,000 .00 8,400,000 .00 Year 2 672 20% 10,080,000 .00 18,480,000 .00 Year 3 806.4 20% 12,096,000 .00 30,576,000 .00 Year 4 967.68 20% 14,515,200 .00 45,091,200 .00 Year 5 1161.216 20% 17,418,240 .00 62,509,440 .00

Lots Annual Increase Amount Total

When business is tied up with cooperatives that are offering mortuary and funeral services or cooperative with funeral parlor, it is assumed that it would generate a sell of 1,000 cooperative or corporate accounts, totaling Ph15,000,000.00, in just two years. The business can have a total sales revenue of Php84,000,000.00 for the total 5,600 lots available for sale at Php15,000.00 per lot, aside from the income generated from the sales of mausoleum and the resort fees.. Mission Blue Heaven Memorial Park and Resort