BUSINESS PLAN
KIA’S HANDMADE
BANANA PAPER
I. EXECUTIVE SUMMARY
Kia’s Handmade Banana Paper will offer unique, eco-friendly and has good quality paper made
from fiber of a banana stem. This eco-friendly banana paper will accommodate the needs of the people
specially the students who needs the paper to study. According to Global Industry, many trees are cutting
down just to supply papers and people especially students’ need it for their studies as one of their school
supplies. Meanwhile, billion tonnes of banana stem are being thrown annually that may cause
environmental pollution. The concern for the environmental pollution and the prevention of deforestations
has attracted the company seeking to develop new eco-friendly materials and product based on
sustainability principles. Our goal is to make alternative handmade paper made from banana fiber extracted
from banana pseudo-stem. In this way, we will help the people being economical to the natural resources.
It will save the nature which is trees that used to cut to make papers. In additions, the banana fiber extracted
from banana pseudo-stem has found its purpose and the production of banana stem will decrease and will
prevented the environmental pollution in the community. One of our primary strategies is to offer customers
variety options for choosing their prepared quality of paper. This handmade banana paper will be offered
in various colors, good quality and design to give customers options. Customized handmade paper will also
be offered to some institutions like schools and offices. Our business will be initially operating as a home-
based enterprise and will use social media and printing platforms to advertise the quality, design colors and
ready-made handmade banana paper. Customers’ may have visit the store to pick up the products or have
it delivered at their convenience. Kia’s Handmade Banana Paper has several unique and competitive
quality/texture and design that will be used to its advantage to penetrate market.
Initial capitalization for the business is Php 37,683 good for one-month expense. Expected revenue
for 1 year is Php 353,700 while total cost for goods sold amounted to Php 157,832.
II. MANAGEMENT AND ORGANIZATION
A. Company Name: KIA’s Handmade Banana Fiber
B. Logo:
C. Address:
D. Vision Statement: KIA’s Handmade Banana Paper vision is to create eco-friendly paper made of
banana fiber that will help both the community and environmental problem and to be accessible to
everyone that adapts to each student’s needs.
E. Mission Statement: KIA’s Handmade Banana Paper mission is to refresh the world by making ecofriendly handmade paper, to create value and make a difference, and to help people being
economical to their resources as human.
F. Key Personnel: Owner/Manager
G. Work Force and Support Personnel: Worker and Helper
H. Organization Chart:
Duties and Responsibilities:
1. Owner/Manager – He/she oversees and manage the business. The one who plan, organize,
staffing, leading and controlling the business. He/she is also responsible and accountable for
every decision or action for the business.
2. Advisory Council – They advise the owner in managerial aspects. The one who provide the
board with key information and to make recommendation to them on certain matters.
3. Workers/Helper – He/she create, help and make the product.
I. Ownership: Sole Proprietorship
J. Capitalization: Php 30,000
K. Compensation and Incentives:
Employees’ Salaries:

Advisory Council – P600 (monthly consultation)

Workers/Helper – P8,000 monthly (P8 x 1000 pcs.) (weekend work)
Incentives:
13th month pay
Cash bonus
L. External Management Support: Parents
III. PRODUCT PLAN
A. Purpose of the Product
KIA’s Handmade Banana Paper is to create eco-friendly paper made of banana fiber that
will the community and environmental problem such as pollution, deforestation and agricultural waste.
Also to help people being economical to their natural resources. The product which is the handmade banana
paper has a unique, eco-friendly, good quality and variety of option to choose their desire type of paper.
There are also different color to choose from. This product can be used by people depend on their needs. It
can be used also at school, work and office. Banana paper can be made as a business card and can be used
in project at school.
B. Products Unique Features
KIA’s Handmade Banana Paper shows its unique features. The first one is the
quality/texture of the paper that customers can choose from. They can freely select the quality they want if
it is smooth texture or rough texture and there is some like abaka texture. The second is size, we prepared
different size form them to choose. There are 8x11 (short size), 8x13 (long size) and also we have cartolina
size, perfect for decoration on project. And the last one is the wide variety of colors. They can select the
color they want.
Below are the sample of handmade banana paper:
C. Material and Equipment Requirements and Sources of Supply
The material requirements and their sources are as follows:
MATERIALS
SOURCES
Banana stem/fiber
Banana farm in City of Norzagaray, Bulacan
Sodium Hydroxide (NaOH)
Chemical Store in City of Norzagaray, Bulacan
Deckle Frame
Tools Store in City of Norzagaray, Bulacan
Industrial Blender Machine
Machine Store in City of Norzagaray, Bulacan
Big Tupperware
Tools Store in City of Norzagaray, Bulacan
Plastic/Paper for Packaging
Plastic/Paper Store in City of Norzadaray, Bulacan
Table 1. Material Requirements and their Sources
D. Production Process and Controls that will be used to manufacture the product.
Below is the process on how to make a handmade banana paper:
1. Gathering of Materials
a. Gathered the Banana stem at the farm where the banana planted.
b. Prepare the tools needed such deckle frame.
2. Cutting the banana stem into small pieces.
3. Boil and cook it together with sodium hydroxide (NaOH).
4. Strain it with the use of water.
5. Put the fiber into blender machine and blended it to make pulp.
6. Add dye/pigment in pulp to form it in different colors.
7. Put the pulp onto water in the big Tupperware.
8. Disturb the pulp and Filter it with the use of deckle frame
9. Placed it under the sun for drying process.
10. Cut the paper into desired size and package it, and that’s how the banana paper made.
Banana paper is best used as a material for paper. It is eco-friendly and prevent the environmental
pollution. This paper has wide variety of used and can help preventing deforestation which the trees that
cut to use as paper making
E. Distribution Logistics
KIA’s Handmade Banana Paper initially manage and operates as a home-based enterprise and
will uses social media platforms like Facebook, Messenger and printing platforms like poster or brochure
to advertise the quality/texture and the design of the handmade paper made of banana fiber. Customers may
choose if they pick the item at the store or it will be delivered at their convenience (only offered to the store
or reseller who buy bulks orders). For delivery, there should be handling fee (Bulacan area only) and
shipping fee (outside Bulacan). Fees will be shouldered by the buyer. For bulks order, (minimum of 100
packages; each package contains 5 pieces of good quality handmade banana paper) there will be shipping
fee depends on the destination of the delivery. Due to crisis today, the handmade banana fiber will be
displayed only at Kia’s handmade banana paper store and some school fairs.
F. Regulatory and Other Compliance Issues
KIA’s Handmade Banana Paper will be registered as a single proprietorship type of business to
the Department of Trade and Industry (DTI). Barangay clearance and the Bureau of Internal Revenue (BIR)
will also be done and be secured before applying for a mayor’s permit and after getting all the necessary
registration documents and permits from DTI, barangay and mayor’s office to operate a home-based
business micro enterprise.
IV. MARKET PLAN
A. Marketing and Sales Projection
Marketing Strategy
A competitive and encouraging campaign will aim to increase the visibility for KIA’s Handmade
Banana Paper. This will help the business to focus more on the customer’s desire to choose good quality
texture and well design handmade banana paper. KIA’s Handmade Banana Paper will use different pages
and channel to communicate this message.
a. Social Media – During this time pandemic, posting and advertising in social media is the best
way to communicate with other people. KIA’s Handmade Banana Paper will be active in
Facebook with their main pages (KIA’s Handmade Banpaper) and Messenger to showcase and
advertise the product. This will be used in every transaction.
b. Printing Platforms – KIA’s Handmade Banana Paper will use printing platforms like poster
and brochure to advertise the business. The assign advertiser will post the poster on the place
where only allowed to post poster while the other assign advertiser will give out the brochure
only on the safe place like mall and in store.
c. Online Reseller – KIA’s Handmade Banana Paper will try their best to reach out some people
in community or in social media who are reselling products. As we seen, it is a big potential to
widen the market. A linkage will be established so that they will become aware and updated of
the Banana Paper.
B. Sales Strategy
KIA’s Handmade Banana Paper sales strategy will assure that ordering and busing banana paper
is very easy, affordable and a great experience. The business enterprise will create a website and a Facebook
pages where the customers can use to order and buy products at their convenience. New handmade with
good quality banana paper will be post and updated from time to time to notify customers. Electronic
payment like bank-to-bank transfer, Gcash and other remittance centers to promote cashless transaction.
Also for delivering, we offer Cash on Delivery (CoD) for easy cash transaction.
With these sales strategies, the business company will develops the customer’s excitement and
affordable product to order and convenience to pay at their own pace.
C. Product Characteristics or Feature
KIA’s Handmade Banana Paper has several competitive features that will be used to its advantage
to achieve market penetration.


Variety of Quality/Texture – Customers will be offered 3 different quality/texture of banana
paper to choose from. Customers may choose on the texture they want, there are smooth
texture, rough texture and like abaka style. This banana paper will provide good quality on
different ways on how the customers will use them.
Variety of Colors – Customers will be offered 26 different colors of handmade banana paper.
Colors are divided into 3; light colors, pastel and dark colors. Light colors are colors such as
white, light blue, light yellow, pink, light green, light violet, light orange, and light brown.
For pastel colors are colors like yellow, orange, green, blue, violet and red while the dark
colors are colors such as black, brown, gray, dark red, dark blue, dark yellow, dark green,
dark violet, dark orange, navy blue and army green.
D. Pricing Policy
KIA’s Handmade Banana Paper will adopt the different price based on the size and the
quality/texture policy. As such, below is the pricing scheme that will be adopted:
Retail Price:
Size of Banana Paper
Price (Peso)
Short Paper (8.5 x 11)
35
Long Paper (8.5 x 13)
40
Cartolina Paper (60 x 48)
20
Table 2.1. Pricing Scheme-Retail Price
Reseller Price:
Size of Banana Paper
Price (Peso)
Short Paper (8.5 x 11)
31
Long Paper (8.5 x 13)
38
Cartolina Paper (60 x 48)
18
Table 2.2. Pricing Scheme-Reseller Price
E. Sales Projections
Size
Reseller
Price
Qty./
Mo.
Year 1
Sales
Qty.
In
Peso
Year 2
Sales
Qty.
In
Peso
Year 3
Sales
Qty.
In
Peso
Year 4
Sales
Qty.
In
Peso
Year 5
Sales
Qty.
In
Peso
S
31
375
4,500
139,500
4,950
153,450
5,154
159,495
5,661
175,491
6,277
193,040
L
38
375
4,500
171,000
4,950
188,100
5,154
195,852
5,661
215,118
6,227
236,626
C
18
200
2,400
43,200
2,640
47,520
2,904
52,272
3,194
57,499
3,513
63,241
1,000
11,400
353,700
12,540
389,070
13,212
407,619
14,516
448,108
16,067
492,907
Total
Table 2.3. Sales Projections
V. FINANCIAL PLAN
A. Start-up Summary
Expenses
Sodium Hydroxide/
NaOH (1kg)
Deckle Frame (4 pcs
banana paper produced
per frame)
Equipment (Blender
Machine)
Utilities (water,
electricity and internet)
Labor
192
1000pcs. – Total
Qty./Month
3,686
104
10,400
10,400
8,697
8,697
8,697
2,000
2,000
24,000
8,600
8,600
103,200
Cost/pc.
Year 1
44,232
Miscellaneous
1,300
1,300
15,600
Permit and License
3,000
3,000
3,000
37,683
209,129
Total
Table 3.1. Start-up Summary
B. Financial Projections
KIA’s HANDMADE BANANA PAPER
PROJECTED INCOME STATEMENT FROM YEAR 1-5
Year 1
Revenues
Cost of Goods Sold
Materials
Labor
Gross Profit
Expenses
Utilities Expenses
Miscellaneous Expense
Permit and License
Income before Interest and Taxes
Tax
Net Income
Year 2
Year 3
Year 4
Year 5
353,700
389,070
407,619
448,108
492,907
157,832
173,615
190,977
210,075
231,083
54,632
60,095
66,105
72,716
79,899
103,200
111,800
120,400
129,000
137,600
195,868
215,455
237,001
260,701
286,771
42,600
46,860
51,546
56,701
62,371
24,000
26,400
29,040
31,944
35,138
15,600
16,900
18,200
19,500
20,800
3,000
3,000
3,000
3,000
3,000
153,268
168,595
185,455
204,000
224,400
49,046
53,951
59,346
65,280
71,808
104,240
114,638
126,109
138,720
152,592
Year 4
Year 5
Table 3.2. Financial Projections – Income Statement
KIA’s HANDMADE BANANA PAPER
PROJECTED CASH FLOW FROM YEAR 1-5
Year 1
Beginning Balance
Cash Inflows (Income)
Cash Sales
Total Cash Inflows
Cash Outflows
Materials
Machine
Labor
Utilities
Miscellaneous
Permit and Licenses
Owner’s Withdrawal
Year 2
Year 3
37,683
133,208
240,005
339,703
452,538
353,700
389,070
407,619
448,108
492,907
391,383
522,278
647,624
787,811
945,445
54,632
60,095
66,105
72,716
79,899
8,697
9,567
10,524
11,576
12,734
103,200
111,800
120,400
129,000
137,600
24,000
26,400
29,040
31,944
35,138
15,600
16,900
18,200
19,500
20,800
3,000
3,000
3,000
3,000
3,000
49,046
53,951
59,346
65,280
71,808
Total Cash Outflows
Ending Cash Balance
258,175
282,273
307,921
335,273
364,412
133,208
240,005
339,703
452,538
581,033
Year 4
Year 5
Table 3.3. Financial Projections – Cash Flow
KIA’s HANDMADE BANANA PAPER
PROJECTED BALANCE SHEET
Year 1
ASSETS
Current Asset
Cash at Hand
Total Current Asset
Fixed Assets
Total Fixed Assets
Total Assets
LIABILITIES AND EQUITY
Current Liabilities
Income Tax Payable
Short-Term Payable
Total Current Liabilities
Total Liabilities
Capital
Add: Net Profit
Less: Drawings
Net Capital
Total Liabilities and Equity
Year 2
Year 3
104,240
114,638
126,109
138,720
152,592
104,240
114,638
126,109
138,720
152,592
104,240
114,638
126,109
138,720
152,592
40,046
53,950
59,346
65,280
71,808
40,046
53,950
59,346
65,280
71,808
40,046
53,950
59,346
65,280
71,808
37,683
133,208
240,005
339,703
452,538
104,240
114,638
126,109
138,720
152,592
40,046
53,950
59,346
65,280
71,808
64,176
60,733
66,763
73,440
80,784
104,240
114,638
126,109
138,720
152,592
Table 3.4. Sales Projections – Balance Sheet