SAPPHIRE INTERNATIONAL AVIATION ACADEMY

8128 Old Sucat Rd. Paranaque, 1700 Metro Manila Tel. No. 826-8611/ 804 1062

SENIOR HIGH SCHOOL DEPARTMENT

ENTREPRENEURSHIP
BUSINESS PLAN

Submitted by:
Alfon, Princess D.
Beltran, Kyla Nicole M.
Desoloc, Ronnel A.
Salvador, Edgar Djaniel
Valquio, Remark P.

Submitted to:
Mr. Salvador Namion, MBA

October, 2019
 INTRODUCTORY PAGE

This cover page provides a brief summary of the business plan’s content

Elegance that suits to

your attitude.
 We chose black as a background of our logo because it symbolizes simplicity and

elegance while the white signifies purity and the color of perfection. As you can see in the suit

part of the logo, the neck tie represents a lady, meaning that our suits are not just for men but

also for women.

BUSINESS NAME AND ADDRESS

Dotoré is the chosen name for the business company because the owners want to show

the elegance that suits to your attitude. Dotoré intends to enter the market for providing good

quality business attire that comes with a trendy style. Dotoré focuses young professional and

Middle Ages that’s why it is located at the 2nd floor of Shangri-La Plaza Mall, East Wing,

Ortigas Center, Mandaluyong, Metro Manila. Shangri-La Plaza Mall, East Wing is located along

EDSA corner Shaw Boulevard, Wack-Wack Greenhills, Ortigas Center, Mandaluyong, Metro
Manila, Philippines. East Wing is connected to the Main Mall via bridge ways which also

features various restaurant and retail chains.

NAMES AND ADDRESSES OF BUSINESS ENTREPRENEURS

Owner #1.

Princess Dorin Alfon

#381 Doñ Rosario Phase 2b, Olivares Compound, Barangay San Dionisio,
Parañaque City,1700

Owner #2.

Kyla Nicole Mondejar Beltran

#4086 Mangga St., Phase III, Masville, Barangay B.F Homes, Sucat, Parañaque
City, 1700

Owner #3.

Ronnel Ariza Desoloc

Greenville Area 2, Fourth Estate, Barangay San Antonio, Parañaque City, 1700

Owner #4.

Edgar Djaniel Patiño Salvador

1261 Quiriño Ave., Barangay San Dionisio, Parañaque City, 1700

Owner #5

Remark Plaza Valaquio

026-M 14st. P-5 Silverio Compd. Barangay San Isidro, Parañaque City, 1700
NATURE OF THE BUSINESS

The type of business is merchandising business and it is a product-oriented business. The

company provides latest fashion. Dotoré offer products for men and women. It offers tuxedo,

gowns, tie, slacks, trouser, accessories and business tops. Dotoré intends to enter the market for

providing good quality formal and business attire that comes with a trendy style. It will cater

business men and people who want to boost their confidence in wearing formal or business attire.

The brand is high on fashion at the same time high priced item, and it caters class A and B

because the brand is too expensive for those people belong in class C and D. It is located in high-

class mall, meaning Dotoré focuses on high-income consumers.

STATEMENT OF FINANCING NEEDS

Table 1.
Expected Business Budget of Dotore.

TOTAL EXPECTED
ACTIVITIES ALLOTED BUDGET TOTAL
NUMBER
Investment ₱ 300,000.00 5 investors ₱ 1,500,000.00
Fashion Expert ₱ 250,000.00 1 fashion guru ₱ 250,000.00
Outlet Interior Design ₱ 600,000.00 1 prospect store ₱ 600,000.00
Store Equipment ₱ 550,000.00 ₱ 550,000.00
Supplies ₱ 500,000.00 ₱ 500,000.00

Advertisement ₱ 250,000.00 2 aspects of ₱ 500,000.00

advertisement
Overall Total Cost ₱ 3,900,000.00
 EXECUTIVE SUMMARY

This section summarizes a longer report or proposal or a group of related reports. It

usually contains a brief statement of the problem or proposal covered in the major document(s),

background information, concise analysis and main conclusions.

Dotoré is the chosen name for the business company because the owners want to show

the elegance that suits to your attitude. It intends to enter the market for providing good quality

formal and business attire that comes with a trendy style. It focuses young professional and

middle ages that’s why it is located at the 2nd floor of Shangri-La Plaza Mall, East Wing, Ortigas

Center, Mandaluyong, Metro Manila.

Dotoré is for all the business men and women consumers who’s looking for simple,

minimalist, and elegance business attire that can meet their needs. Dotoré also offers personalize

styling especially when the consumer/costumer is requesting. It will cater business men and

people who want to boost their confidence in wearing formal or business attire. Owners have

reinvented the suits with a lean, modern silhouette and crafted it from the finest fabrics.

Constructed with premium trims and tailor-made finishes, it is an investment in enduring style.

The idea for this proposed venture can be realized when people recognized Dotoré as a

clothing-line brand that promotes simplicity through elegance. The venture will build resonance

to the mind of the people whenever they feel insecure within them, are seeking for confidence

booster, and enhance self-esteem. Also, this venture will build up having a good reputation
defining the style of their customers and will be a well-known brand that provides a quality and

trendsetter clothes for young professionals and businessmen.

The business venture can be viable because of its potential market. Annual Survey of

Philippine Business and Industry (ASPBI) showed that above 6,000 establishments in the formal

sector of the economy were engaged in Real Estate Activities. The location that the owners chose

for the business is in an expensive and high-profile location that is exclusive and distinguished.

The displays on the windows are very provocative and the sales persons are dressed smartly in

all black. With this kind of ambient condition, the consumer can now browse freely and

comfortably in this professional setting.

Since our company is not known and new in the market, Dotoré adopted an aggressive

marketing policy and utilized every possible marketing tool to its advantage to increase its brand

awareness. The owners are expecting to gain above a hundred thousand for the first 2-3 months

of the business and a million for the upcoming months and years when the business is being

recognized by many. The owners have a vision of increasing their income in 20%-35% a month.

The business venture is composed of four (4) owners, namely: Princess Alfon, graduated

as a Flight Attendant in Lyceum of the Philippines, Manila. She work in Air Asia Philippines for

7 years after she graduated and now, she’s pursuing her career as a Captain Pilot and as a young

entrepreneur in the field of business. Also, Alfon is great in fashion and styling, she has a great

experience in terms of styling people and sewing fashionable clothes; Kyla Nicole. Beltran,

CPA, graduated as a Certified Public Accountant in Polythecnic University of the Philippines,

Sta. Mesa Manila. She is working on one of the high-class company in Makati City. She has an

experience of running a business because of their family’s past businesses also she have a great
skills in analyzing and financing for the business; Ronnel Desoloc, P.E, graduated as a

Professional Computer Engineer in Lyceum of the Philippines University, Manila. He created a

business venture that has a connection in advertising; he created the business website with the

help of Mr. Salvador; Edgar Djaniel Salvador, P.E. graduated as a Professional Computer

Engineer in Lyceum of the Philippines University, Manila. He work on a high-end company in

Taguig City; and lastly, Remark Plaza Valaquio, Criminology graduated in Philippine Military

Academy. He once managed the Security Department in NAFFCO. He is the one who will

manage the security department of this business.

 ENVIRONMENTAL AND INDUSTRY ANALYSIS

This section entails assessing the level of threats or opportunity the factors might

present. This section identifies all the external and internal elements, which can affect the

organization’s performance.

SOCIOCULTURAL CONDITION

The first target costumer of Dotore will be the middle class people located in some part of

the Philippines. We believe they will make up the largest percentage of our customer base. The

second costumer is the business men in the area. As the population of Filipino business men

grow in some part of the Philippines we expect to receive a high income to our products. The last

target is labeled as "others", because some Filipino has a culture that is they see you a branded

and a brand new brand names they will want to buy because of the trends.

TECHNOLOGICAL CONDITIONS

Dotore will concentrate on direct sales tp specialty store, but we will also do Internet

marketing because now a day’s internet is one of the best communications all over the world and

we believe this is one of the best ways to introduce our products. The website of the venture will

attract costumer because of our products.

INDUSTRIAL ANALYSIS

Dotore are made of 2 kind of store: the small, and the large and expensive. Small store,

where in the majority of Dotore is sold through people who starting to become a business men.

The offer in here can be afford by the middle class people. Large and Expensive Store, this large

store will sell through middle class business men like owner, president of the company, CEO or

tourists.

COMPETITION

Many competitors in the market have a same style of business like Dotore, it can be a

threat to all clothing brand because there is a constant change in fashion. The following are the

couple of business that can be a threat to Dotore:

1. Onesimus; suits & barong - Mens formal and office wear. They offer barong and formal

wear. Their price starts at P2699.They offer high price but a great quality l. They could be found

in malls nationwide. They use endorsers, advertisement, websites and also giant billboards to

propel a fashion brand to promote their business.

2. Arrow - Stylish line of clothing accessories for men, women and children. Their price

starts at 2000. They also find at different mall nationwide. They use website and giant billboards

to propel a fashion brand and they also use endorsers to promote their business.
SWOT ANALYSIS

STRENGTHS

 Brand Value – The brand is providing a great quality of their products to their valuable

costumers.

 Price Value – Dotoré is providing good quality business attire for men and women with

reasonable or valuable price.

 Trendy Styles – Dotoré focused on creating trendy business attire. The company has a

strong design advantages.

 Boost Self Esteemed – The brand focuses on boosting men’s confidence in wearing

Dotoré brand.

WEAKNESSES

 New in the Market – Dotoré is new in the market hard to compete with the popular

competitors.

 Customer’s Loyalty to Others – One of the brand’s hindrances will be the target market’s

loyalty to existing popular brands who built reputation in the market.

 Expensive – Dotoré is expensive for local brand.

OPPORTUNITY

 Own Website – Dotoré has its own website where they can buy their brand online. This

opportunity. This opportunity will gain a larger market.

 Online E-commerce – Dotoré can definitely take advantage of online buying trend and

make its product available on its own E-commerce platforms.

  Product line – Dotoré expands their brand by providing accessories for both men and

women.

THREATS

 Strong Brand Competitors – Dotoré has threats with their competitors who have strong

brand name like Arrow, G2OOO, T.M Lewin, Tiño Suit, and Onesimus.

 Change in Fashion Trend – It can be threat to all clothing brand because there is constant

changes in fashion industry.

 Similar Brand – Many competitors in the market with the same brand like Dotoré.
 DESCRIPTION OF THE BUSINESS

This section of the business plan describes the vision and direction of the business. This

section also outlines vital details about the business venture.

PRODUCTS AND/OR SERVICES

Dotoré offer products for men. It offers tuxedo, tie, slacks, trouser, accessories and

business tops. The company caters to both class A and B. they offer the best quality of men’s

business attire. The company invests time in creating great and trendy styles for men. Dotoré

also offers personalize styling especially when the consumer/costumer is requesting.

SIZE OF THE BUSINESS

Dotoré intends to enter the market for providing good quality business attire that comes

with a trendy style. It will cater business men and people who want to boost their confidence in

wearing formal or business attire.

Dotoré focuses young professional and middle ages. The brand is high on fashion at the

same time high priced item, and it caters class A and B because the brand is too expensive. When

it comes to distribution,Dotoré is located at high-class malls like Shangri-La, SM Aura Premiere,

SM Mall of Asia, etc. It means Dotoré focuses on high-income consumers. Dotoré will be

appreciated by all consumers who’s professional, business man and young professionals who
love wearing trendy business attire. For all business man consumers who’s looking for simple,

minimalist, and elegance business attire only Dotoré can meet their needs.

MISSION STATEMENT AND CORE VALUES

- Dotoré Mission

o To be recognized as a clothing-line brand that promotes simplicity through

elegance.

o To build resonance in the mind of the people whenever they feel insecure within

them, are seeking for confidence booster, and enhance their self-esteem.

o To build up having a good reputation of defining the style of their own customers.

o To be a well-known brand that provides a quality and trendsetter clothes for

young professionals and businessmen.

- Dotoré Core Values

o Beauty

o Elegance

o Clarity

o Functionality

o Sustainability
LOCATION OF THE BUSINESS AND ITS MAJOR PHYSICAL ASSET

Dotoré focuses young professional and Middle Ages that’s why it is located at the 2nd

floor of Shangri-La Plaza Mall, East Wing, Ortigas Center, Mandaluyong, Metro Manila.

Shangri-La Plaza Mall, East Wing is located along EDSA corner Shaw Boulevard, Wack-Wack

Greenhills, Ortigas Center, Mandaluyong, Metro Manila, Philippines. East Wing is connected to

the Main Mall via bridge ways which also features various restaurant and retail chains.

Distribution points of Dotoré are the high-class malls and social media. Dotoré’s channel of

distribution is very selective making the customers feel special. The location that the owners

chose for the business is in an expensive and high-profile location that is exclusive and

distinguished.

The decor of every outlet is unique with classic tastes, the interiors are visually appealing,

and hence it helps in creating a comfortable atmosphere that provides relaxing environment that

create a responsive attachment between the customer and the brand. The displays on the

windows are very provocative and the sales persons are dressed smartly in all black. With this

kind of ambient condition, the consumer can now browse freely and comfortably in this

professional setting.

BACKGROUND OF THE BUSINESS OWNERS

The business venture is composed of four (4) owners, namely:

Princess Alfon, graduated as a Flight Attendant in Lyceum of the Philippines, Manila.

She work in Air Asia Philippines for 7 years after she graduated and now, she’s pursuing her
career as a Captain Pilot and as a young entrepreneur in the field of business. Also, Alfon is great

in fashion and styling, she has a great experience in terms of styling people and sewing

fashionable clothes;

Kyla Nicole. Beltran, CPA, graduated as a Certified Public Accountant in Polythecnic

University of the Philippines, Sta. Mesa Manila. She is working on one of the high-class

company in Makati City. She has an experience of running a business because of their family’s

past businesses also she have a great skills in analyzing and financing for the business;

Ronnel Desoloc, P.E, graduated as a Professional Computer Engineer in Lyceum of the

Philippines University, Manila. He created a business venture that has a connection in

advertising; he created the business website with the help of Mr. Slavador. And lastly,

Edgar Djaniel Salvador, P.E. graduated as a Professional Computer Engineer in Lyceum

of the Philippines University, Manila. He works on a high-end company in Taguig City.

Remark Plaza Valaquio, Criminology graduated in Philippine Military Academy. He

once managed the Security Department in NAFFCO. He is the one who will manage the security

department of this business.

PRODUCTION PLAN

Table 2.
Action Plan of Dotore.
 OPERATIONS PLAN

Dotore goal is to serve middle class, business men and other people a good quality of

business and along with fashion wear. The intention of the business is to give happiness and

confidence to our costumer and be kind to them.

COMPETITIVE EDGE

Our location will be closer to our target costumer. We will have a Shopper Card which

customers allow 10% discount. We will offer any size for men and customize items for women.

MARKETING STRATEGY

Dotore marketing strategy is to promote our sales and serve costumer with loyalty and

retention in sales. The service will always stay in our mission statement. Its product’s price will

not increase and will remain just what is it.

PRICING STRATEGY

Dotore will maintain the annual pricing. The owners will base the prices in the quality of

our products. The venture will have at least 2 days sale and start every end of the month. You

will not regret about the price if you buy our products.
PROMOTION STRATEGY

Dotore will do an effective promotional plan that will focus directly to our target

costumer. More than 3000 flyers/postcards that distributed around our location in Shangri-La

mall, owners will also create a television commercial that will be release in any networks that

gives highlight to the grand opening of the business, who will be the face of Dotore and the artist

or band that will see in the grand opening, will make a radio advertisement in the popular radio

station in the Philippines and media advertisements on Facebook, Instagram, etc.

DISTRIBUTION STRATEGY

The store location will be the one of distribution of our products, and we will also

manage a website to focus on the costumers who don’t want to go to the store or to far to the

store and deliver it on their houses.

 MARKETING PLAN

This section describes the target market for the new product or services.

PRICING

Dotoré products are high on fashion and high on price. The company provides latest

fashion. It caters class A and B their prices are valuable or reasonable with the product.

DISTRIBUTION

Distribution points of Dotoré are the high-class malls and social media. Dotoré’s channel

of distribution is very selective making the customers feel special. We are planning all stores are

located in expensive and high profile locations that are exclusive and distinguished. Dotoré will

start its operation from the Philippines, the first three distribution points will be in high-end malls

like Shangri-La Plaza, Mandaluyong City. Dotoré are also planning to put stores in SM

Megamall, SM North and Mall of Asia, Greenbelt, Makati City and Newport Mall, Pasay City in

the next 2 years.

PROMOTION

Dotoré invest more on advertising, billboards and online E-commerce. Since our

company is not known and new in the market, Dotoré adopted an aggressive marketing policy

and utilized every possible marketing tool to its advantage to increase its brand awareness. Its
ads are shown via magazines, newspapers, leaflets and digital billboards. Dotoré also penetrate

the impact of social media platform and digital media since it has heavy impact to the

consumer’s mind-set. It sends periodic message and email to its loyal and regular customer

informing about new deals and new trendy products.

SALES FORECAST

Table 3.
Sales Forecast of Dotore. First Year by Month

Month Projected Sales Projected Sales

(unit) (Peso)
January 85 850,000
February 125 1,250,000
March 140 1,400,000
April 95 950,000
May 95 950,000
June 105 1,050,000
July 118 1,180,000
August 120 1,200,000
September 203 2,030,000
October 200 2000,000
November 185 1,850,000
December 215 2,150,000
Total 1,686 16,860,000

The sales forecast of a hypothetical clothing line business named Dotoré. For illustration we

assumed that each pair of ties, shoes, coats, gowns will sells for Php 10,000 in different type of

the product depends on the customer. The reality here is we will sell different types of products

at different prices and services. Therefore, the sales forecast must consider the product line and

the varying price levels.

 ORGANIZATIONAL PLAN

This section summarizes information about the business’ structure and team.

FORM OF OWNERSHIP

The form of ownership of this business is partnership, as a kind it is general partnership.

A business partnership is a specific kind of legal relationship formed by the agreement between

two or more individuals to carry on a business as co-owners. The partners in a business

partnership invest in the business, and each investor/partner has a share in the profits and losses.

Partnerships are usually registered with the state in which they do business, but the

requirement to register and the types of partnerships available vary from state to state.

Partnerships use a partnership agreement to clarify the relationship between the partners, the

roles and responsibilities of the partners, and their respective shares in the profits or losses of the

partnership. This agreement is just between the partners; it's not registered with a state.

Advantages of Partnership

 Businesses as partnerships do not have to pay income tax; each partner files the profits or

losses of the business on his or her own personal income tax return. This way the business

does not get taxed separately.

 Easy to establish.

 There is an increased ability to raise funds when there is more than one owner
 Wider pool of knowledge, skills, and contacts.

 Improved management with more than one owner.

Disadvantages of Partnership

 Partners are jointly and severally liable for the actions of other partnership obligations

including contracts, torts, and breaches of trust. Joint and several liability means that if a

third party were to sue the partners; the third party can sue any one of the partners without

suing all of them. If a partner has been sued but cannot pay the third party the full amount,

the third party may collect the money from the remaining partners.

 Each partner is individually liable for the debts and obligations of the business; if the

business does not have enough assets to pay back business debts, creditors can take the

personal assets of the partners.

 A partner cannot transfer interest in the business without the unanimous consent of the

partners.

 Partnerships can potentially be unstable because of the danger of dissolution if one partner

wants to withdrawal from the business or dies.

PRINCIPAL SHAREHOLDERS/OWNERS

When a partnership is formed, one of the first acts of the partners should be to prepare

and sign a partnership agreement. This agreement describes all the responsibilities of the
partners, sets out each partner's distributive share in profits and losses, and answers all the "what

if" questions about what happens in a number of typical situations.

The partnership agreement should include:

 Details on the duties and responsibilities of each active partner,

 Roles of specific partners who have day-to-day management,

 How and when contributions must be made, and

 How distributions are set.

The distributions of the owners in terms of investment are totally equal.

Table 4.
Dotore Owners’ Investment
Owner No. Name Amount Percentage
1 Princess D. Alfon 300,000 20%
2 Kyla Nicole M. Beltran 300,000 20%
3 Ronnel A. Desoloc 300,000 20%
4 Edgar Djaniel P. Salvador 300,000 20%
5 Remark P. Valaquio 300,000 20%
TOTAL 1,500,000 100%

The table state that the profit and loss are to be divided equally because all of the

business entrepreneurs have the same investment and shares to the business.
Organizational Chart

Background of the Management Team

Princess Alfon, graduated as a Flight Attendant in Lyceum of the Philippines, Manila.

She work in Air Asia Philippines for 7 years after she graduated and now, she’s pursuing her

career as a Captain Pilot and as a young entrepreneur in the field of business. Also, Alfon is great

in fashion and styling, she has a great experience in terms of styling people and sewing

fashionable clothes;

Kyla Nicole Beltran, CPA, graduated as a Certified Public Accountant in Polythecnic

University of the Philippines, Sta. Mesa Manila. She is working on one of the high-class

company in Makati City. She has an experience of running a business because of their family’s

past businesses also she have a great skills in analyzing and financing for the business;
 Ronnel Desoloc, P.E, graduated as a Professional Computer Engineer in Lyceum of the

Philippines University, Manila. He created a business venture that has a connection in

advertising; he created the business website with the help of Mr. Slavador. And lastly,

Edgar Djaniel Salvador, P.E. graduated as a Professional Computer Engineer in Lyceum

of the Philippines University, Manila. He work on a high-end company in Taguig City.

Remark Plaza Valaquio, Criminology graduate in Philippine Military Academy. He once

managed the Security Department in NAFFCO. He is the one who will manage the security

department of this business.

Roles and Responsibilities of Management Team

Princess Alfon, will be the production director generally responsible for ensuring

deadlines are met and orders are properly carried out. She will be also one of the fashion guru

since she has a background about styling people and sewing fashionable clothes.

Kyla Nicole Beltran, the co-owner and the Financial Director. She is the front line of

internal and external development, supervise any re-structuring and often lead financial

communications for all the vents in the life of the company. She is also responsible in checking

on the accounting system. She spent over 5 years in accounting, finance and operation

management. She has an experience of working as a Finance Director in other company for the

past 2 years.

Ronnel Desoloc, one of the owner and is the Marketing Director that will be responsible

for the production/media, and public relations. He spent over 4 years in Information Technology
and is also owns a big computer shop and a resto-bar. He has an extensive background in web

designing and online selling.

Edgar Djaniel Salvador, the Human Resource and the Computer Engineer of the

company and he is responsible for admin manager, security and maintenance. He spent over 5

years in Computer Engineer and Computer Science. He was also one of the investors of RJTech

Corporation, a software company store, for two years.

Remark Valaquio, Human Resource Department Director which is responsible for

recruiting, screening, interviewing and placing workers. He may also handle employee relations,

payroll, benefits, and training. Human resource managers plan, direct and coordinate the

administrative functions of an organization.

 FINANCIAL PLAN

This section determines the investment that must be poured into the business, and indicates

whether the business is an economically viable undertaking. This section includes the projection

of the business venture.

Table 5.1
Sales Forecast of Dotore, First Year by Month.

Month Projected Sales Projected Sales

(unit) (Peso)
January 85 850,000
February 125 1,250,000
March 140 1,400,000
April 95 950,000
May 95 950,000
June 105 1,050,000
July 118 1,180,000
August 120 1,200,000
September 203 2,030,000
October 200 2000,000
November 185 1,850,000
December 215 2,150,000
Total 1,686 16,860,000

Table 5.1 shows the sales forecast of a hypothetical clothing line business named Dotoré. For

illustration we assumed that each pair of ties, shoes, coats, gowns will sells for Php 10,000 in

different type of the product depends on the customer. The reality here is we will sell different

types of products at different prices and services. Therefore, the sales forecast must consider the

product line and the varying price levels.

 Table 5.2
Operating Budget of Dotoré for the First Three Months

Expenses January February March

Salaries 355,000 355,000 355,000
Utilities 5,000 5,000 5,000
Advertisement 60,000 60,000 60,000
Transportation 20,000 20,000 20,000
Supplies 240,000 240,000 240,000
Depreciation 50,000 50,000 50,000
OPEY 730,000 730,000 730,000

In Table 5.2 we can see the Dotoré proposed operating budget. This budget assumes that the

company business will have 18 employees who will be paid for the total of Php 355,000 per

month. It also assumes that the business will occur the following expenses: electricity and water

bills amounting to Php 5,000 per month, and for the advertisement of Dotoré Php 60,000 per

month, and transportation expense Php 20,000 for business trip by employees, and supplies

expense Php 240,000 per month, depreciation expense of Php 50,000 per month, and operating

expense of Php 730,000 per month.

Table 5.3
Dotoré, Projected Income Statement, First Year by Month (in thousand pesos)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales 850.0 1,250.0 1,400.0 950.0 950.0 1,050.0 1,180.0 1,200.0 2,030.0 2,000.0 1,50.0 2,150.0
Less: COGS 155.0 178.0 189.0 158.9 158.9 161.7 200.3 178.0 205.8 201.0 200.7 215.0
Gross Margin 695.0 1,071.0 1,211.0 791.1 791.1 888.3 979.7 1,022.0 1,824.2 1,799.0 1,649.3 1,935.0
Operating
Expense
Salaries 355.0 355.0 355.0 355.0 355.0 355.0 355.0 355.0 355.0 355.0 355.0 355.0
Utilities 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Advertisement 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0
Transportation 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0
Supplies 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0
Depreciation 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Total OPEX 735.0 735.0 735.0 735.0 735.0 735.0 735.0 735.0 735.0 735.0 735.0 735.0
Net Profit
(30.0) 341.5 481.0 61.1 61.1 158.3 249.7 292.0 1,094.2 1069.0 919.3 1205.0
(loss)
 Table 5.4
Dotoré, Projected Income Statement, First Three Years (in thousand pesos)

Year 1 % Year 2 % Year 3 %

Sales 2,150.0 100.00 2365.0 100.00 2601.5 100.00
Less: COGS 215.0 10.00 236.5 10.00 260.15 10.00
Gross Margin 1,935.0 90.00 2128.5 90.00 2341.35 90.00
Operating
expensive
Salaries 355.0 16.51 390.0 10.51 397.3 15.27
Utilities 5.0 0.23 5.0 0.21 5.0 0.19
Advertising 60.0 2.79 60.0 2.53 60.0 2.30
Transportation 20.0 0.93 20.5 0.86 35.0 1.34
Supplies 240.0 11.16 255.0 10.78 265.0 10.18
Depreciation 50.0 2.32 50.0 2.11 50.0 1.92
Total OPEX 730.0 33.95 781.0 33.02 812.3 31.22
Net Profit
1,205.0 56.04 1,347.5 56.97 1529.05 58.77
(loss)

In Table 5.3 the sales forecast and operating budget illustrate above will then be transferred to

the projected income statement, which summarize the profit (or loss) the shop expects to

generate within the year. This income statement also includes an estimate of the cost of goods

sold, which, as shown in Table 5.4, is assumed to be ( assumed percentage) of total sales per

month. Most of the items under operating expenses (e.g. Rent, utilities, insurance, and

depreciation) are assumed to remain constant in the next two years.

Table 5.5
Sample Projected Balance Sheet as of End of First Year (in pesos)

ASSETS
Current Assets
Cash 850,000
Accounts Receivable 32,500
Inventories 46,500
Supplies 37,000
TOTAL CURRENT ASSETS 966,000
 Non-Current Assets
Leasehold Rights & Improvements 150,000
Depreciation (15,500) 134,500
Equipment 400,000
Depreciation (40,000) 360,000
TOTAL NON CURRENT ASSETS 494,500
TOTAL ASSETS 1,460,500
LIABILITIES
Current Liabilities
Accounts Payable 32,000
Accrued Expense 28,500
TOTAL CURRENT LIABILITES 60,500
OWNER’S EQUITY
Beltran, Capital 300,000
Beltran, Drawing (25,000) 275,000
Alfon, Capital 300,000
Alfon, Drawing (30,000) 270,000
Desoloc, Capital 300,000
Desoloc, Drawing (25,000) 275,000
Salvador, Capital 300,000
Salvador, Drawing (15,000) 285,000
Valaquio, Capital 300,000
Valaquio, Drawing (5,000) 295,000
TOTAL OWNER’S EQUITY 1,400,000
TOTAL LIABILITIES &
1,460,500
OWNER’S EQUITY

As shown in Table 5 is a hypothetical corporation balance sheet, which is called because the total

assets of the business are equal to the sum of the business liabilities and owners'/stakeholders

equity.
 ASSESSMENT OF RISK

POTENTIAL RISKS – INTERNAL AND EXTERNAL

Internal risks are from within the organization and arise during normal operation. Internal risks

are often forecastable, and therefore can be avoided or mitigated. Internal risks are typically

generated by one (or some combination) of human, technical or physical factors. Many Agile

practices naturally address internal risk. Practices like short planning cycles, retrospectives,

flexible backlogs, and small teams are geared to addressing the delivering short-term value by

addressing the risks that that team perceives to be controllable.

External risks come from outside the organization or project and outside of the team’s control.

External risks tend to only be forecastable in retrospect, and therefore efforts need to be focused

on recognition and reaction. Many external risks stem from legislative, environmental and

political changes. The impact of a major earthquake on an organization’s supply is an external

risk. Starting a clothing business will always have a potential risk either internal or external but

this are the potential risk of a clothing line business.

Inventory Management

To operate this type of retail store, owners must keep an adequate supply of clothing on hand.

When customers enter the store in pursuit of the hottest leather handbag or the fall season’s line

of trench coats, they expect the merchandise to be available in the color and size of their

choosing. Failure to purchase enough inventory results in disgruntled customers and lost sales.

On the other hand, businesses that purchase too much inventory may incur steep losses by selling

the excess clothing at discount prices. A second risk of buying too much inventory is incurring
excessive storage costs. Storing clothing in a temperature controlled warehouse is a time-

sensitive cost that can be reduced or managed by proper inventory management. Frances Harder

advises in her book, “Fa$hion for Profit,” that additional accessories be sold on consignment.

Buying and selling goods in this manner is one method of reducing the risk of buying inventory

at full price.

Trend Analysis

Another risk of the clothing store business is trend assessment. Trends in the fashion industry are

fickle, ever-changing and often elusive. A successful store capitalizes on the latest trends and

recognizes when such trends are on the decline. One misstep may result in excessive inventory,

undermined credibility and confused brand identity for the store. All of these errors may prove

fatal in the clothing industry. Stores may avoid these mistakes by hiring experienced buyers,

purchasing well-respected brands and buying commercialized clothing instead of risky, avant

garde, hit-or-miss pieces.

Marketing

Clothing stores may incur risks through their marketing strategies. The business must target the

appropriate audience and offer items that correspond with this demographic. Additionally, the

brand must adapt to changing economic conditions. In times of recession, for example,

companies that purvey expensive items should amend their line to include less costly garments.

A clothing business should enter the market with a clearly defined niche, as well. Petite and plus

sizes, maternity wear, athletic gear, "tween" apparel and travel gear are examples of such niches.

Mary Gehlhar describes in her book, “The Fashion Designer Survival Guide,” how Michael Kors
explained to the press that one of his clothing lines was dubbed ‘carpool couture:’ This collection

was aimed at mothers who spend ample time in the car.

Business Landscape

The nature of the clothing industry as a whole poses significant risks to business owners.

Cutthroat competition is a large risk: Charlene Davis, author of the book, “Starting Your Own

Clothing Store and More,” explains that profit, when it finally comes after years of being in the

business, is pennies on the dollar. Davis asserts that you must be willing to work late hours on

weekends and perform a host of side tasks, such as unloading merchandise and designing

window displays.

STRATEGIES FOR PREVENTING OR MINIMIZING RISK

These are some ways in which business owners can minimize their risks:

1. Obtain insurance. Although insurance doesn’t completely reduce risk, but it helps the small

businesses by supporting them from taking the entire financial burden that is associated with

either defective inventory or an employee that has been injured, and thus reduces the risk of the

business folding. We need to seriously consider insuring our inventory, the company property,

business equipment and vehicles and also maintain a workers compensation policy. What about

insuring the business owner’s life, or disability and sickness insurance? There is digital insurance

(in case you are hacked), there is management insurance (in case one of your staff makes a

mistake), and there is professional indemnity insurance.

2. Expand the offerings of the business. Whether the business is involved in deals with services

or tangible goods, the more the number of offerings provided, the lesser the amount of risk
because of the availability of backup sources of funding. If a business depends on just one single

product, there is a higher probability that it may shutdown once the public loses interest in their

product or alternatively a large competitor takes over the marketplace or there is government or

legislative change which hugely affects that business.

3. Stick to short-term commitments. Until and unless a small business is a strongly established,

long-term commitment which includes mortgages or car lease payments needs to be avoided.

Private automobile usage can help to reduce the business costs and also the initial risks because

the upfront investment of cash is not required. Be realistic, if the business doesn’t take off as

expected, are you locked into long-term commitments you cannot afford?

4. Practice safety at all times. Ensure that you take all safety measures when it comes to your

employees. Safety precautions are also important for your inventory protections such as

installing security cameras, burglar alarms, sprinkler systems and smoke detectors. This needs to

be taken care of mainly because small businesses face the biggest risks when it comes to

employee injuries and major loss of inventory based on preventable disasters.

5. Review the existing system of the internal controls. Internal controls provide regular checks

and balances for every single aspect of the company. Internal controls can be as simple as having

a checklist of precautions before one enters the work area. This is especially with regards to

safety issues for the employees. With regards to finances, it could be, for instance, placing

different employees in charge of factors such as approving payments or signing cheques, or

authoring supplier contracts. Small businesses face the biggest risks when it comes to theft and

fraud; due to often lax or no systems or accountability in respect of money. Limit the number of

users who can use the internet. In this way, you can reduce the operational risk of having way too
many employees conducting personal business during work hours. Don’t underestimate the value

of staff training when it comes to risk reduction.

6. Create a management risk plan. Having sufficient insurance is not enough to secure your

business. Proactive steps need to be taken to cross-train in order to avoid risk. For instance, you

can have two people working on the same job. Thus, in any case, if one of the employees leaves

without notice, the other employee can always take over and look after his or her job. Thus, the

job wouldn’t suffer or worse, clients leave due to lack of service. In small business this is hard as

often only one person fulfills many roles. If you cannot handle having double coverage, you can

have an extra weekly staff meet up to keep the employees up-to-date on what is happening and

ensure documented processes or systems are kept up to date.

7. Work with an internal control consultant. This usually refers to a professional outside your

business that will review your systems and investigate the weaknesses, if any, with your

company’s processes. An outsider, with a fresh set of eyes, will be able to give the right

judgment when it comes to viewing the operations of the business and will also provide unbiased

opinions that will help the higher officials to look after and identify the areas of improvement

more effectively. I often perform this role as part of my duties as a business coach. I encourage

all my clients to work with me to perform a SWOT analysis which focuses heavily on the

weaknesses and threats, with strategies to address and combat them as much as possible.

8. Finances. One of the biggest issues that most small business owner’s face is financial risk, not

just in day to day operations but also in growth. Many business owners feel that marketing and

sales is the most important aspect of business (and I’m not diminishing its importance), however,

the money side of things is equally, if not more so, important. You can minimize risk through
strong and well worded (legally-reviewed) client contracts or Terms & Conditions and Staff

Agreements. Having cash-flow forecasts and budgets in place reduces risk. Knowing your

margins and breakeven and tracking budget versus actual reduces risk. Having short-term trading

terms (7 days versus 30 days) reduces risk. Great collection processes reduce risk. I could talk all

day on the financial aspects of a business which when done well will reduce risks within that

business.

9. Planning. Having a solid business plan and marketing plan also reduces risk. If you know what

you’re doing, have a strategy and plan (not just a dream where you wander aimlessly), this will

give you a better chance of success. Having expert advice and a documented action blueprint has

been proven time and time again (statistically) to give a business a better chance of success and

reduce the risk of failure. It may sound like running a small business may be daunting because of

the added risks that come with it. We often lack the resources and knowledge of our big business

counterparts, but that does not mean we should ignore risk. Faced and addressed, small business

risk can be less intimidating.

RESPONSE TO RISKS SHOULD THEY OCCUR

Risk Response Strategies

The choices of response strategies for THREATS include:

AVOID: Focus on eliminating the cause and thus, eliminating the threat.

MITIGATE: There are certain risks that cannot be eliminated. However, their impact can be

reduced. This is termed as mitigation of risks.

TRANSFER: Transfer the risk to some other party. Insurance purchases, warranties, guarantees,

etc. are examples of risk transfers

The choices of response strategies for OPPORTUNITIES include:

EXPLOIT: Add work or change the project to make sure the opportunity occurs

ENHANCE: Increase the probability and positive impact of risk events

SHARE: Allocate ownership of opportunity to a third-party

A response strategy for BOTH threats and opportunities:

ACCEPT: Passive acceptance leaves action to be determined as needed, in case of a risk event.

Active acceptance may involve contingency plans to be implemented if risk occurs and

allocation of time and cost reserves to the project. A decision to accept risk must be

communicated to stakeholders.

ESCALATE: Risks which cannot be monitored and handled by the project are escalated to the

upper level, for example to program management.

Whenever the project manager is responding to threats or opportunities:

* Execution of strategies must be time-bound.

* Effort selected must be appropriate to the severity of the risk.

* A single response can be an act of multiple risk events.

* A strategy can be selected not only by the project manager but also by the team, the

stakeholders and experts.

 TIMETABLE/MILESTONE

This section sets the plan into practical, concrete terms, with real budgets, deadlines, and

management responsibilities.

FORMAL REGISTRATION OF THE BUSINESS

COMPLETION OF PRODUCT OR SERVICE DESIGN

HIRING OF INITIAL PERSONNEL

For every company it is important to have a right person on a right job personal planning is

necessary and it is an important part of an organization. There are some certain ways that needs

to be followed and we considered to ensure that it has right number and kind of people so that

our company can achieve its plant object we need to ensure that the person are hiring has a

knowledge about our product or maybe about the kind of clothes that we are using so that they

can give advice to our buyers on what they need it other than that the number of personnel

needed will be more or less 7 person as our company is still starting to operate.
REACHING AGREEMENTS WITH SUPPLIERS AND DISTRIBUTORS

PURCHASE AND SALE AGREEMENT

FOR EQUIPMENT

BETWEEN

DOTORÉ

AND

KIMURA CHAVES ENTERPRISE INC.

This purchase and sale agreement is entered into this 26th day of September 2019, by and between (buyer)
DOTORÉ, a professional clothing brand from Shangri-La Plaza Mall, East Wing, Ortigas Center,
Mandaluyong, and (seller) KIMURA CHAVES ENTERPRISE INC., a seller of sewing equipment from
284-C Rodriguez, Senior, Avenue, Quezon City.
Seller desires to sell and Buyer desires to buy such business for the price and on the terms and
conditions hereinafter set forth.

For the reasons set forth above, and in consideration of the mutual covenants and promises of the
parties hereto, Seller and Buyer covenant and agree:

1. Sale of Business. Seller agrees to sell and Buyer agrees to purchase, free from all liabilities
and encumbrances, the above-described business, including the lease to such premises, the
goodwill of the business as a going concern, all of Seller’s rights under its contracts, licenses,
and agreements, and all assets and property owned and used by Seller in such business as
specified in Exhibit A, other than property specifically excluded. This sale does not include the
cash on hand or in banks at the date of closing or such other property as is listed in Exhibit B.

2. Consideration. In consideration for the transfer of the above described business from Seller
to Buyer, Buyer shall pay to Seller the sum of Php106, 000, which Seller shall accept from Buyer
in full payment therefore, subject to the terms and conditions herein contained.
3. Allocation of Purchase Price. The purchase price shall be allocated to the various assets of
the business.

4. Terms of payment. The purchase price shall be paid by Buyer to Seller as follows:

The sum of Php 106, 000 on the signing of this contract, to be held by Seller’s attorney as escrow
agent until the closing of this sale, and to be paid by the escrow agent to Seller at the closing; the
balance of Php 97, 000, in cash or by certified check, shall be paid to Seller at the time of
closing.

5. Adjustments at Closing. Adjustments shall be made at the time of closing for all operating
expenses including, but not limited to, rent, insurance premiums, utility charges, payroll, and
payroll taxes.

6. Time of Closing. The closing shall take place at the office of Seller’s attorney, on September
26, 2020, at 12:00 o’clock in the afternoon. Upon payment of the portion of the purchase price
then due to Seller, Seller shall deliver to Buyer such instruments of transfer as are necessary to
transfer to Buyer the business and property referred to herein. Such instruments of transfer shall
effectively transfer to Buyer full title to the business and property free of all liens and
encumbrances.

7. Covenant Not to Compete. Seller shall not engage in a business similar to that involved in
this transaction in any capacity, directly or indirectly, within September 26, 2019 to April 15,
2019 for a period of 5 months from the date of closing or so long as Buyer or his successors
carry on a like business, whichever first occurs. For purposes of this Agreement, “business
similar to that involved in this transaction” includes.

8. Representations of Seller. Seller represents and warrants that:

(a) He is duly qualified under the laws to carry on the business as now owned and operated.

(b) He is the owner of and has good and marketable title to the property involved in this sale,
free of all restrictions on transfer or assignment and all encumbrances except for those disclosed
in Exhibit C.
(c) No proceedings, judgments, or liens are now pending or threatened against him or against the
business.

(d) Seller has complied with, and is not in violation of, all applicable federal, state, and local
statutes, laws, and regulations affecting Seller’s properties or the operation of Seller’s business.

(e) He will, up to the date of closing, operate his business in the usual and ordinary manner and
will not enter into any contract except as may be required in the regular course of business.

9. Risk of Loss by Fire. Seller assumes all risk of destruction, loss, or damage by fire prior to
the closing of this transaction. If any such destruction, loss, or damage amounts to more than
Php 100, 000, Buyer may at his option terminate this Agreement. In such an event, the escrow
agent shall forthwith pay to Buyer the purchase money held by him, and the escrow agent shall
be discharged from all liability therefore.

10. Assumption of Liabilities. Buyer agrees to assume those contracts listed in the attached
schedule of property, Exhibit A, and those liabilities that arise in the ordinary course of Seller’s
business after the signing of this Agreement but before closing. Buyer shall not be liable for any
of the obligations or liabilities of Seller of any kind and nature other than those specifically
mentioned herein. Buyer will indemnify Seller against any and all liability under the contracts
and obligations assumed hereunder, provided that Seller is not in default under any of such
contracts or obligations at the date of closing.

11. Modification. No alteration or other modification of this Agreement shall be effective

unless such modification shall be in writing and signed by the parties.

12. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the
parties and their successors and assigns.

DOTORÉ
September 26, 2019
KIMURA CHAVES ENTERPRISE INC.
September 29, 2019
 Table

Specification of Rate Total

Sl. No Item Quantity
Item (Php) (Php)
1 Sewing Machine 5 5,000 40,000
2 Sewing Materials Sewing Needles 5 139 695
Sewing Pins 5 200 1000
Pinking Shears 7 250 1,750
Seam Ripper 7 100 700
Tape Measure 5 50 250
Fabric Marker 5 120 600
Ironing Board 5 1,000 5,000
Iron 5 250 2,500
3 Buttons Assorted Buttons 100 50 5,000
57,495.00

Signed on the 26th day of September 2019 for and behalf of the Suppliers and Purchasers as
follows:
Supplier:

KIMURA CHAVES ENTERPRISE INC.

Purchaser:

DOTORÉ

Witnesses:

Ms. Kyla Nicole M. Beltran

Mr. Ronnel A. Desoloc

Ms. Brenda
ACTUAL PRODUCTION

Year 2

INITIAL ORDERS, SALES, AND DELIVERIES

 APPENDICES

MARKET RESEARCH DATA

DETAILED FINANCIAL PROJECTION

Table
Dotore Equipment List

Item Unit Price

Hanger 150 12,000
Rack 5 10.000
Shelves 5 10,000
Sewing Machines 10 29,700
Cashier 2 13,000
Computer 5 50,,000
Tables 5 8,000
Chairs 10 10,000
Mirror 7 8,300
Mannequin 6 14,500
Telephone 2 10,000
Total 174,500
 Table
Dotore. A Year Supply of Supplies

Supplies Unit Price

Cloth Per yards 10,000
Thread Per pcs. 5,000
Buttons Per packs 5,000
Pins Per packs 2,000
Needle Per packs 2,000
Leather Per packs 12,0000
Zippers Per yards 6,000
Rubber Per packs 10,000
Box Per pcs. 6,000
Lace Per packs 5,200
Total 63,200

CURRICULUM VITAE OF MANAGEMENT TEAM

PRICE LIST FROM SUPPLIERS

Table
Dotore Suppliers

Items Suppliers

Kimura Chaves Enterprise, Inc.

Tailoring Materials/Sewing Machine 284-C Rodriguez, Senior, Avenue, Quezon
City

Customecopack
Box
Groundfloor Manila East Arcade 2, Taytay
Rizal

Rubber J-Mat Rubber & Industrial Manufacturing

270, Real Street, Talon Uno Laspiñas City

Cotton Depot Enterprise

Cloth
Alabang-Zapote Rd, Alamanzo Uno Laspiñas
City

Table
Dotore Price List from Suppliers

Item Price Quantity Total cost

Sewing
2,109 8 pieces 12,495
Materials
Cloths 600 70 yards 42,000
Sewing
8,000 10 pieces 80,000
machine
Bottons 50 100 pieces 5,000
Hangers 90 100 pieces 9,000
Mannequins 2,500 5 pieces 12,500
Cleaning
5,000 2 pieces 10,000
supplies
Shelves and 3 pieces/2
2,000 6,000
Racks units
Total 176,995
PROFILE OF COMPETITORS

Table
Profile of Dotore’s Competitors