PAMANTASAN NG LUNGSOD NG MARIKINA

Senior High School Department

SSS Campus

Case Study in Entrepreneurship

(Prime Footwear)

Members:

Abubo, Dhannilla Marie F.

Baloro, Sally Ann G.

Carino, Rachel P.

De Paz, Mary Grace B.

Francia, Nathalie Faye A.

Laviña, Anna Laurena P.

Pesebre, Jeanette A.

Casaul, Abel M.

Deramos, RJ A.

Group 4

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EXECUTIVE SUMMARY

The Prime Footwear is a Merchandising and Manufacturing Business founded as of June 07,

2019 to give the market satisfaction with its innovative and eco-friendly ways to make it known

among shoe industry and also, to give a quality and convenient formal footwear that Filipinos can

afford and choose to buy because of its style and affordable price.

Prime Footwear will make formal shoes for women, especially stilettos. The researchers would

like to get the thoughts of the customers on what is the style and materials to be used in making

their stilettos and so the researchers are offering a custom-made and exclusive stiletto where

they can suggest the things they want. When the business is popular enough, the researchers

would like to make an online shop where customers far from Marikina City can also order and

obtain Prime Footwear’s shoes.

Our target market includes fashion-conscious female shoppers--professional workers and

housewives, fashion designers, models, etc. So, precisely middle-class to high-class personnel.

The total addressable market is 1,560. Prime Footwear is pre-revenue but will be gaining

meaningful absorption with customers. Based on this plan, Prime Footwear projects that it will be

able to capture at least 3.8% of this market over the next 2 years.

The business’ competition are GIBI Shoes, C Point Shoe Store, Black Wing Shoes

Marikina, Checkpoint Shoes Marikina, and Lara Erika Shoes. Prime Footwear’s competitive

advantage lies in its originality, the uniqueness of its shoes and because it promotes eco-friendly

products.

Ms. Anna Laviña, CEO of Prime Footwear, is perfect for this opportunity because of her

passion for innovation and her love for the company. Other members of the management team

include:

Dhannilla Abubo, COO of Prime Footwear, is fitted for this opportunity because of her

perseverance in making sure that the company is running smoothly.

Jeanette Pesebre, CFO of Prime Footwear, is suited for this opportunity because of her ability to

attract investors and deal with banks. Prime Footwear will be needing 15 million pesos for

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acquiring machines, materials, the lot, and the materials for the construction of the building, which

will enable us to enter the competitive market, to build according to the plan and get the exact

location of the business.

Prime Footwear is pre-revenue, but we have 3 Letter of Intents that should help us generate

meaningful revenues in a relatively short period of time. Our 5-year projections based on our

extensive market research and a detailed knowledge of what is needed to scale the business are

shown in the graph below.

5-year Projection
PHP 3,000,000

PHP 2,500,000

PHP 2,000,000

PHP 1,500,000

PHP 1,000,000

PHP 500,000

PHP 0
Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue Gross Revenue Net Income

PandaTip: Provide a visual here that shows the growth path you expect for your startup.

Should this opportunity fall within your investing interests, please don’t hesitate to contact the

undersigned at [PHONE] or PrimeFootwear19@gmail.com.

Thank you for your consideration.

Prime Footwear

_________________________________ ______________

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Anna Laviña, Chief Executive Officer September 20, 2019

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 BUSINESS CONCEPT

“Your Style is our Priority”

The Prime Footwear aims to give the market satisfaction with its innovative and

eco-friendly ways to make it known among shoe industry. It shows a high standard when it comes

to the quality and convenient formal footwear that every Filipino will afford and choose to buy

because of its style and affordable price. The special thing about Prime Footwear is its design,

from a unique sole and heels. The business intends to serve the people of Concepcion Uno and

nearby barangays of Marikina.

The Mission: To give every costumer the best quality of local shoes and to be a successful as a

productive, innovative and a nature-friendly company.

The Vision: To develop as a productive, innovative and a nature-friendly manufacturer and

merchandiser, while maintaining having a good relationship with both customers and employees

and the environment itself.

1.1 PRODUCT LINE

1.1.1 MAIN PRODUCT

Name Image Price

Stephanie ₱899.00-₱5,000.00

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 Marielle ₱899.00-₱5,000.00

Wendy ₱899.00-₱5,000.00

Clarisse ₱899.00-₱5,000.00

Michelle ₱899.00-₱5,000.00

1.1.2 OTHER OFFERS

Name Image

Animal Hide

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 Leather

Fabric

The researchers’ product consists of excellent materials from plastic, leather, wood,

fabric, animal hides, paper (for patterns and labels) to various cements and glues. Fabric and

feathers, sequins, faux pearls, and genuine diamonds have all been used to decorate the

researchers’ shoes. But the product is remarkable for its recycled HDPE (High-density

polyethylene) plastic as its sole. The researchers’ wanted to bring the best out of the best of its

own product while acknowledging the environment. The researchers’ started the price of the

shoes from ₱899.00-₱5,000.00 depending on its material and design. And because the

researchers are prioritizing the style of every customers, they offer a custom-made stilettos and

exclusive stilettos, the prices may also vary depending on the materials, style and decorations

that has been used.

1.2 PRODUCT PACKAGING

The researchers wanted the packaging to be classic and exclusive in simple way. So that we

can attract the customers with the products’ presentation. The shoes will be packed and presented

using eco-friendly materials.

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1.3 PRODUCT AND SERVICES FEATURES

The Prime Footwear, the name itself will give the customers a top-tier stilettos with originality

and uniqueness. To provide the customers the best service the researchers could give, the factory

will have experienced workers and complete equipment like Plastic Melting Machine, Shoe Pattern

Cutting Machine, Shoe Sewing Machine, Shoe Lasting Machine, Shoe Sole Machine, etc. and the

workers inside the shop will undergo to a deep screening before being hired.

1.4 PRODUCT AND SERVICES QUALITY

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 The researchers believes that the only way to attract the market towards the business is by

giving them the finest products and services. Having recognized by the quality, the researchers will

be applying various depths of quality in order to guarantee the satisfaction of customers such as:

Accessibility

The researchers believe that being available at all times is an effective customer service,

as well as the business’ location. In order for the customers to commend the finest service that the

business could offer.

Accommodating

The researchers believe that providing the customer’s wants and needs is the key for

effective customer service, in order for the customers to commend the business in their satisfaction

they always deserve. It may also start a good relationship and good communication with the

customers and make them feel comfortable in the business.

Eco-Friendly

The researcher believes that “when we heal the world, we heal ourselves” and being an

eco-friendly business means no harm to the customers as well.

Innovative

The researchers believe that “change is inevitable”, improvement is always welcome to the

business and the researchers want the customers to feel the good changes and trends to give them

the reason to stay.

Goal-Oriented Focus

The researchers believe that working hard to attain good outcomes on something is one of

the keys to success. As the business focuses on a goal of giving the customers the best quality of

shoes and to provide their needs and wants, the business is much willing to.

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1.5 QUALITIES OF CUSTOMER SERVICE

The researchers guarantee that the customers will receive an outstanding treatment, in order

to make them feel valuable and appreciated every time they go to the shop.

1.6 QUALITIES OF PROMPT SERVICE

The researchers want to provide the finest services in order to draw a positive feedback from

our customers. We do not want them to feel uncared for.

1.7 LOCATION

The researchers’ want to put the shop and their factory in a place with many people that have

the potential to buy their products. The researchers’ chose Greenheights Subdivision,

Concepcion Uno, Marikina City.

(A. De Guzman St. Greenheights Subdivision, Concepcion Uno, Marikina City)

(A. De Guzman St. Greenheights Subdivision, Concepcion Uno, Marikina City) (Google

Maps)

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 1.7.1 Building Design

Shop

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Factory

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 MARKET ANALYSIS

Prime Footwear will be targeting fashion-conscious female shoppers--professional

workers and housewives, fashion designers, models, etc. So, precisely middle-class to high-class

personnel. All groups are interested in stilettos, the professionals will be looking for stilettos they

are able to partner with their business attire. The housewives might be looking for shoes to wear

in special occasions, the fashion designers might look for shoes that they will be able to use for

their clients and models for them to partner their attire for fashionable stilettos.

2.1 ADVERTISING AND PROMOTION

The researchers considered some advertising strategies that will definitely catch the attention

of the potential customers. Prime Footwear’s advertising will be rely on social media such as

Facebook, Instagram and Youtube as the main medium for the products and services. The

researchers will also design and produce posters, leaflets and tarpaulins to promote the business.

The following information will be printed in the promotional materials:

 Prime Footwear Logo

 Several pictures of Stilettos

 Prime Footwear’s Location

 Free Wi-Fi access

2.1.1 PRIME FOOTWEAR LOGO

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 For the business’ logo, the researchers made sure that it would be attractive and distinct

to people’s eyes and will truly represent the business which is Prime Footwear.

SOCIAL MEDIA

The business will also be advertised to the social media since it is the easiest way to

introduce a newly built business to the potential customers conveniently.

This marketing strategy is the most powerful way to reach the market. The business will

connect to customers through Facebook, Instagram and has potential on video blogging (V-Log)

through Youtube

2.1.2 PRIME FOOTWEAR FLYER

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 Slogan: “Your Style is our Priority”

The researchers believe that “gaining what you love, gives you the freedom to be happy”. As

the business wants to satisfy you, we also want to make sure that we’ll give the happiness and

satisfaction you deserve.

2.1.3 PRIME FOOTWEAR POSTER

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2.2 MARKET SEGMENTATION
Prime Footwear is targeting several different population segments within the category of the

fashion-conscious female with disposable income.

 Professionals: these people are working full-time as a professional women. They typically

earn more than ₱20,000. They will probably purchase stilettos for the workplace, as well

as for special occasions.

 Housewives: The household income of this group is more than ₱20,000, they will

probably buy stilettos for special occasions.

 Fashion Designers: the income of this group ranges from ₱25,000-₱30,000.

 Models: these people’s income ranges from ₱18,000-₱40,000. Stilettos would be very

helpful to these kind of people.

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2.3 TARGET MARKET SEGMENT STRATEGY

These markets will be targeted using an attractive, eye-catching storefront in Greenheights

Subdivision. The market may visit many different stores within the area and by just having a

visible storefront in the Subdivision, Prime Footwear will receive walk-in customers.

While buying a lot is expensive, one of the benefits is that there will be no lease and that you can

do whatever you want in that area and that neighboring customers may frequent in the shop.

2.4 INDUSTRY ANALYSIS

Women’s shoe industry is made up of several types of companies:

 Shoe-only stores: Just what the name implies, these stores only sell shoes. Generally,

the shoe-only stores will sell athletic shoes for men and women, or dress shoes for only

one gender.

 Large department stores: These are the type of stores that sell everything, including

shoes.

 Small women's retail stores: These types of stores only cater women by only selling

women's clothing and shoes.

2.5 COMPETITION AND BUYING PATTERNS

The researchers have known different shoe businesses within the target location and

because of their popularity and target market, the researchers considered them as competitors.

The buying pattern for fashion-conscious women consist of typically buying at least one pair of

shoes per month. Women generally buy a pair of shoes to go with a dress. Once the woman

purchases the dress, she will now begin the long search for the perfect pair of shoes.

The researchers considered the following businesses:

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 GIBI Shoes

It is a local shoe store that started on 1984, it is very popular nationwide because they offer All

Season All Occasion shoes.

C Point Shoe Store

It is local store that started on 2009 and is very popular to the Marikeños.

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 Black Wing Shoes Marikina

Black Wing is a small concept brand-workshop which experiments on various aspects of the shoe

making industry.

Checkpoint Shoes Marikina

The company has carved a niche in the Philippine shoe industry and has been widely recognized

through various brand names such as Fred Perry which eventually became their unique identity

among other Marikina-made shoes.

Lara Erika Shoes

Lara Erika has been in the shoe industry since 1983. The rapidly growing local demand for

leather footwear, made the company shift its business to shoe manufacturing.

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MANAGEMENT TEAM

3.1 ORGANIZATIONAL STRUCTURE

Anna Laviña
Chief Executive
Officer

Jeanette Dhannilla
Pesebre Abubo
Chief Operating
Chief Financial Officer
Officer

Mary Grace De Jerome Nathalie Sally Ann

Rachel Cariño Abel Casaul
Paz Eusebio Francia Baloro
Marketing Manager Accountant Purchasing Manager Production Manager Operations Manager Office Manager

RJ Deramos
Quality Control

Footwear
Shop Manager
Designer

Cashier/Sales Footwear
Associate Production Staff

3.1 NUMBER OF EMPLOYEES

We have a total of 7 employees inside and outside our shop.

3.2 JOB DESCRIPTIONS AND QUALIFICATIONS

Cashier

Job Description

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 An employee who handles the financial transactions of a company. In most situations,

a cashier works directly at a cash register, ringing up the customer's purchases and collecting

their payment. Cashiers are found almost anywhere a customer can purchase an item, such as

supermarkets, restaurants, and retail stores, in this case a shoe shop.

Responsibilities

 Accepting Payments

 Attention to Detail

 Managing Cash Drawers

 Monetary Transactions

 Money Handling

 Cash Management

Requirements

Basic accounting and money skills. While the cash register automatically adds up

purchases and calculates change, it will only be as accurate as the numbers you enter into it.

Miscounted change or an item with the wrong barcode could result in a discrepancy.

 Integrity

 Basic Math

 Accuracy

 Knowledge about types of payment

 Pricing

 Returns

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 Familiarity with products. If a label has come off, you should be able to identify the item

and either enter the product code from memory or direct someone to find the correct barcode

quickly.

 Product Knowledge

 Sales

 Customer Service

 Memory

 Inventory

Customer service and interpersonal skills. As the last face—and sometimes the only

face—the customer sees, you will have to answer questions, explain store policy, and cope with

customers irritated by long lines or other issues, all while maintaining a friendly, professional

demeanor. For serious problems, summon a manager or customer service representative.

 Customer Service

 Friendliness

 Hands-on Assistance

 Informative

 Positive Attitude

 Approachability

Sales Associate

Job Description

Also known as sales workers or salespersons, sales associates sell retail products and

goods, such as equipment, clothes, cars or car parts, etc. Sales associates work with customers

to find what they want, ensure a smooth sales process and process transactions.

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Responsibilities

Sales Associates greet customers on arrival then assist the customer with any questions

they have about the purchase they want to make. They often help the customer with returns,

refunds, and resolve common complaints.

Requirements

 Customer Service Skills: The customer is always right.

 Communication Skills: Speak to customers about a product's different features, and

answer any questions they might have.

 Flexibility: You might have to work long hours, nights or weekends.

 Persistence: Not every customer is going to be a sale.

Shop Manager

Job Description

Shop Manager is a job title that's used in organizations to designate an employee who

leads functions or departments, and often employees as well inside the shop.

Responsibilities

 Plan the operation and function of the area.

 Organize the production of the work, as well as the workforce.

 Provide employees and their resources with the guidance, direction, leadership, and

support.

 Follow up to ensure that the plan is carried out in a way that its accomplishment is

assured.

 Review and assess the success of the goal, the plan, and the allocation of the

employees.

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  Perform other responsibilities as assigned by the president, vice president, or director to

whom the manager reports.

Requirements

 Communication and customer service skills.

 Leadership skills.

 Analytical skills.

Footwear Designer

Job Description

Footwear designers come up with creative and practical designs for shoes and other

footwear. The footwear market ranges from catwalk and High Street fashion shoes, to sports

footwear such as football boots and training shoes.

Responsibilities

 Working with other designers on styles and trends

 Making rough design drawings by hand or using a computer

 Researching ideas at fashion shows and events

 Making sample shoes to present their ideas

 Conducting quality checks and overseeing production.

Requirements

 A creative eye and a flair for colour, texture and patterns

 Knowledge of foot anatomy

 Good drawing ability and CAD skills

 Excellent communication skills

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  An interest in fashion, design and textiles.

Footwear Production Staff

Job Description

A production worker is responsible for operating and maintaining equipment in a factory

or warehouse and preparing items for distribution. A production worker cleans and operates

factory equipment, works on an assembly line, puts together and inspects products, and adheres

to all factory safety guidelines and standards.

Responsibilities

 Starts assembly and production machinery at beginning of shift.

 Monitors equipment to ensure that products are being assembled properly.

 Cleans equipment.

 Assembles product parts by hand.

 Uses power tools to solder, weld, drill, and attach parts.

 Observes and removes faulty product parts from assembly line.

 Inspects assembled products to ensure they are up to quality standards.

 Affixes labels, company logos, and other exterior details to products.

 Packs up completed products and prepares them for shipment.

 Adheres to all safety guidelines dictation the production and handling of materials in the

factory.

 Ensures that all production deadlines are met.

Requirements

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  Demonstrates ability to interpret equipment gauges and monitors on factory equipment.

 Possesses knowledge of the structure and function of production equipment.

 Is able to identify problems or malfunctions with machinery and equipment.

 Demonstrates analytical thinking and problem-solving skills necessary to troubleshoot

production issues.

 Exhibits ability to work cautiously but efficiently in potentially hazardous conditions.

 Is familiar with all factory safety procedures and guidelines.

 Demonstrates ability to use power tools safely and effectively.

 Works efficiently and manages time effectively.

 Possesses physical strength and stamina required to stand, walk, and lift for long periods

of time.

 Possesses physical dexterity necessary to assemble small and delicate product parts.

3.3 COMPENSATION AND BENEFITS

Salaries of each employee depend on how hard their work is. We sum up with ₱79,300.00

total salaries for workers, monthly.

Cashier/Sales Associate- ₱424.40

Shop Manager- ₱530

Footwear Designer- ₱500

Footwear Production Staff- ₱350

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 Position Daily Weekly Monthly Annual Number of

Salary/each Salary/each Salary/each Salary/each Employees

Cashier/Sales Associate ₱424.40 ₱2,758.60 ₱11,034.40 ₱132,412.80 1

Shop Manager ₱530.00 ₱3,445.00 ₱13,780.00 ₱165,360.00 1

Footwear Designer ₱500.00 ₱3,250.00 ₱13,000.00 ₱156,000.00 1

Footwear Production Staff ₱350.00 ₱2,275.00 ₱9,100.00 ₱109,200.00 4

TOTAL 7

Daily Salaries Weekly Salaries Monthly Salaries Annual Salaries

₱424.40 ₱2,758.60 ₱11,034.40 ₱132,412.80

₱530.00 ₱3,445.00 ₱13,780.00 ₱165,360.00

₱500.00 ₱3,250.00 ₱13,000.00 ₱156,000.00

₱1,400.00 ₱9,100.00 ₱36,400.00 ₱436,800.00

₱2,854.40 ₱18,553.60 ₱74,214.40 ₱890,572.80

SSS/each Annual PAG-IBIG Annual PAG- PHILHEALTH Annual 13th Month Pay
SSS /each /each IBIG /each /each PHILHEALTH /each /each
₱440.00 ₱5,280.00 ₱100.00 ₱1,200.00 ₱303.45 ₱3,641.40 ₱11,034.40
₱560.00 ₱6,720.00 ₱100.00 ₱1,200.00 ₱378.95 ₱4,547.40 ₱13,780.00
₱520.00 ₱6,240.00 ₱100.00 ₱1,200.00 ₱357.50 ₱4,290.00 ₱13,000.00
₱400.00 ₱4,800.00 ₱100.00 ₱1,200.00 ₱250.25 ₱3,003.00 ₱9,100.00
₱1,920.00 ₱23,040.00 ₱400.00 ₱4,800.00 ₱1,290.15 ₱15,487.80 ₱46,914.40

SSS Annual SSS PAG-IBIG Annual PAG- PHILHEALTH Annual 13th Month Pay
IBIG PHILHEALTH

₱440.00 ₱5,280.00 ₱100.00 ₱1,200.00 ₱303.45 ₱3,641.40 ₱11,034.40

₱560.00 ₱6,720.00 ₱100.00 ₱1,200.00 ₱378.95 ₱4,547.40 ₱13,780.00

₱520.00 ₱6,240.00 ₱100.00 ₱1,200.00 ₱357.50 ₱4,290.00 ₱13,000.00

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₱1,600.00 ₱19,200.00 ₱400.00 ₱4,800.00 ₱1,001.00 ₱12,012.00 ₱36,400.00
₱3,120.00 ₱37,440.00 ₱700.00 ₱8,400.00 ₱2,040.90 ₱24,490.80 ₱74,414.00

Total Salaries and Wages ₱969,986.80

Total Employee Benefits ₱70,330.80

MARKETING PLAN

4.1 MARKETING STRATEGY

Prime Footwear’s marketing strategy will be based on its location. Prime Footwear

is located in a well-populated area where there is a transportation access and is known to

have a number of shoe businesses.

Another form of marketing will be advertising. This strategy of marketing campaign is to

increase the popularity of Prime Footwear to the target customers.

4.2 MISSION

The Prime Footwear aims to give the market satisfaction with its innovative and eco-friendly

ways to make it known among shoe industry. Prime Footwear’s mission is to give every costumer

the best quality of local shoes and to be a successful as a productive, innovative and a nature-

friendly company.

4.3 MARKETING OBJECTIVES

 Increase company sales by 20% by 2022

 Increase repeat customers by 5% per quarter.

 Build an effective pull campaign, bringing in new customers at an increased rate of 9%

per quarter.

 Decrease customer acquisition costs by 6% per year.

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4.4 FINANCIAL OBJECTIVES

 Growth in Sales

 Wider Profit Margins

 Reach profitability by the end of year two.

4.5 TARGET MARKET

Prime Footwear is targeting several different population segments within the category of the

fashion-conscious female with disposable income.

 Professionals: these people are working full-time as a professional women. They typically

earn more than ₱20,000. They will probably purchase stilettos for the workplace, as well

as for special occasions.

 Housewives: The household income of this group is more than ₱20,000, they will

probably buy stilettos for special occasions.

 Fashion Designers: the income of this group ranges from ₱25,000-₱30,000.

 Models: these people’s income ranges from ₱18,000-₱40,000. Stilettos would be very

helpful to these kind of people.

4.6 POSITIONING

Prime Footwear will position itself as the prime outlet for women’s stilettos, providing

Greenheights Subdivision of Marikina City with the largest selection, competing with some known

local shoe stores in Marikina. Prime Footwear will try their very best to achieve this desired

position.

Prime Footwear’s competitive edge is an unmatched selection in Concepcion Uno. This

selection will be achieved in many ways. The first is to put effort and carry as many styles of

stilettos as possible. Prime Footwear recognizes that Concepcion Uno does not have a shoe

store wherein you can customize your own shoes and a store that only offers formal shoes for

women only. The competitive edge is the recognition of this unserved niche and the serving of

this demand.

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 Prime Footwear will be able to offer a large selection by using a unique inventory model that

stocks a large number of styles, and also a lot of materials to be displayed while the customers

choose about the materials to be used.

This model is effective because women buy shoes based on their own style. The way the

shoes will fit the customers as well as their expected designs will brought passion to the Prime

Footwear’s workers. For this women can express themselves according to their own style.

4.7 STRATEGIES

Prime Footwear’s marketing strategy will seek to create customer awareness regarding the

products that is offers, develop the customer base, and work to gain customers loyalty and

referrals.

The Prime Footwear will offer a large collection of stilettos as well as the right of every

customer to customize the product, and we want the customers to know that right. Women no

longer need to travel to far places to obtain the shoes they want. The first method that Prime

Footwear will use to communicate is the location. Prime Footwear has chosen a well-populated

place that many cars and customers go through. This generates large amounts of visibility for

Prime Footwear.

Another method of communication is advertisements using posters and social media. The

advertisements will be placed in different places with the location of the shop and some

information.

The last method of communication will be through developing relationship with one of the

upscale women's clothes stores in Marikina. The two stores will be co-branding their products as

clothes and shoes are intuitively linked. The alliances will include discounts when both shoes and

clothing are purchased as well as display some of each company's products at the other

store. These activities are all designed to develop visibility on behalf of the marketing plan.

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4.8 MARKETING MIX

Prime Footwear’s marketing mix is comprised of the following approaches to pricing,

distribution, advertising and promotion, and customer service.

 Pricing: Prime Footwear’s pricing is designed to be competitive and based on its materials

not like other fashion shoe businesses.

 Distribution: All shoes will be distributed inside Prime Footwear’s store. While this will

necessitate a second trip for the customer to come and pick up the shoes, it allows Prime

Footwear to offer a much wider selection.

 Advertising and Promotion: Location, targeted advertising using posters, social media, and

strategic alliances will serve as the foundation of Prime Footwear’s advertising and promotion

effort.

 Customer Service: Exceeding customer's expectations is the company's mission.

4.9 MARKETING RESEARCH

During the initial phases of the marketing plan development, several groups were carried out

to gain insight into the most customer and some of their decision-making processes they relate to

shoe purchases. The information collected from the groups has been extremely helpful to Prime

Footwear and help justify the business’ model.

An additional source of market research is a comprehensive survey that has been distributed to

variety of women that will possibly be a customer. The survey was also quite insightful into the

mind of a prospective customer.

2. FINANCIAL PLAN

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4.4 Process Flow Chart

Preparing
Closing the
before the
business
opening

Preparation
Opening of
before
the business
closing

Customer Customer
leaves entering

Customer
Customer
orders/
pays
inquires

Employees
assisst

5 FINANCIAL NEEDED

5.1 PROPOSED COMPANY FUNDS

(15 Million pesos)

BREAKDOWN OF INVESTMENTS

Machine/s- ₱ 2 million

1. Plastic Melting Machine- ₱ 779,115.00

2. Shoe Pattern Cutting Machine- ₱ 290,869.60

3. Shoe Sewing Machine- ₱ 23,500.00 (2)

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 4. Shoe Sole Machine- ₱ 815,760.00

Commercial Lot (Buy) - ₱ 4 million

Factory/Building- ₱ 8 million

SUMMARY OF MONTHLY EXPENSES

Electricity-₱ 10,000.00/monthly

Water-₱ 3,000.00/monthly

Salaries-₱ 74,214.40/monthly

Material/s-₱ 27,300.00/monthly

Target Sales

Daily ₱6,000 (minimum of 3pcs.)

Weekly ₱36, 000 (6 days)

Monthly ₱156,000 (26 days)

Yearly ₱1,872,000 (312 days)

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 ₱162,500.00 (Target Sales Monthly)

- ₱144,300.00 (Summary Monthly Expenses)

_________________________________

₱18,200.00 Monthly Income

₱79,300.00 (Total Monthly Salary)

+ ₱ 3,172.00 (Other Benefits)

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₱82,472.00 Total Labor Cost

RETURN OF INVESTMENT

𝑆𝑖𝑚𝑝𝑙𝑒 𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

₱ 162,500 Gains − ₱144,300 Investment Cost

= × 100%
₱144,300 Investment Cost

The Return of Investment would be 12.6% having ₱162,500 as monthly income/gains and

₱144,300 as supplies expenses, utilities expenses and salary for workers.

SOCIO-ECONOMIC ASPECT

5.1 GOVERNMENT BENEFITS

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It is the responsibility of any business enterprise to consider what is due for
government as part of the socio-economic development of a community, society
and the nation as a whole. Our responsibility is to compensate the government
through payment of taxes and permits, so that the government and the people will
benefit as the collection from taxes and permits will be the source of fund to finance
the country’s future development programs and projects.

Business Registrations and Permits

Compliance with the legal requirements to operate a business entity is a must.

PRIME FOOTWEAR Diet Diner will comply with all the necessary requirements
such as: registrations, clearances and permit to operate the business.

1. Bureau of Internal Revenue (BIR)

It is an agency of the Department of Finance. The BIR collects more than
half of the total revenues of the government. Among others, this is the most
important requirement because it is necessary to obtain than other legal
permits and licenses.

In addition with this, all businesses based in the Philippines must submit a
tax statement at the end of each fiscal year, hence, having a tax
identification number (TIN) is definitely a must.

Functions:
The powers and duties of the Bureau of Internal Revenue are:

 Collection of internal revenue taxes, fees and charges and

enforcement of all forfeitures, penalties and fines connected there
with, including the execution of judgment in all cases decided in its
favor by the court of Tax Appeals and the ordinary courts;

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  It shall also give effect to administer supervisory and police powers
conferred to it by the National Internal Revenue Code and special
laws.

 Value Added Tax

Value Added Tax (VAT) is a business tax imposed and collected
from the seller in the course of trade or business on every sale of
properties (real or personal) lease of goods or properties (real or
personal) or vendors of services. It is an indirect tax, thus, it can be
passed on to the buyer.

2. Local Government Unit Registration (Barangay Clearance)

It is one of government issued documents needed for businesses, job or
personal transactions:

 It’s one of the documents required when you apply or open a bank
account;
 It’s required for business establishment;
 It’s required for other business or financial transactions such as lending,
loan or financing;
 And it’s required for any other important transactions.

3. Department of Trade and Industry (DTI)

The Business Name (BN) Registration is one of the principal front-line
services of the Department of Trade and industry (DTI). It aims to maintain
a nationwide registry of business names.

4. Mayor’s permit / Business Permit

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 The Mayor's Permit (also known as a Business Permit) is one of the
requirements for every business or company to operate in the Philippines.
Local Government Units (LGUs) can be cities or municipalities. Each
municipality has different procedures depending on the ordinance of the city
or municipality.

5. SSS Employers Registration

The Philippines Social Security System is a state-run, social insurance
program in the Philippines to workers in the private, professional, and
informal sectors.
SSS is establishing by virtue of Republic Act No. 1161, better known as
Social Security Act of 1954. This law was later amended by Republic Act.
No 8282 in 1997

6. Phil Health Employers Registration

The Philippine Health Insurance Corporation was created in 1995 to
implement universal health coverage in the Philippines. It is a tax-exempt,
government-owned and controlled corporation in the Philippines and is
attached to the Department of Health.
Its stated goal is to ensure a sustainable national health insurance program
for all.

7. PAG-IBIG Fund
The Home Development Mutual Fund more popularly known as the PAG-
IBIG Fund, is a Philippine government-owned company and responsible for
the administration of the national savings program and affordable shelter

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 financing for Filipinos employed by local and foreign-based employers as
well as voluntary and self-employed members.

It offers its members short-term loans and access to housing programs.

8. Department of Labor & Employment (DOLE)

The Department of Labor and Employment (DOLE) is the executive
department of the Philippine Government mandated to formulate policies,
implement programs and services, and serve as the policy-coordinating arm
of the Executive Branch in the field of labor and employment. It is tasked
with the enforcement of the provisions of the Labor Code.

5.2 EMPLOYMENT BENEFITS

The PRIME FOOTWEAR Diet Diner will provide jobs for those who wanted to be
part of the business. The residents of Rodriguez, Rizal will be given opportunity for
employment and will be prioritized in the hiring process.

 Twelve (12) regular holidays annually will be paid under the provisions of
Republic of Act No. 9849
 Company grants a 13-month pay equivalent to one (1) month’s pay to all
eligible employees provided that they worked for at least one (1) month
during calendar year
 A bonus equivalent to one day pay given to all regular and probationary
employees.

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