CHAPTER I

PROJECT SUMMARY

A. NAME OF THE PROJECT

The enterprise would be name SHOEWORX. It will specialize in shoe related activities,

thus, will be offering shoe laundry and shoe restoration. The proponents chose such name

to give the customers an idea upon hearing it. It would also be easier to recall and

familiarize by the customers.

B. LOCATION OF THE PROJECT

The enterprise will be located at Purok 11, Quino Compound, Bakakeng, Baguio City.

The proponents chose the area for it to be accessible to the potential customers since it is

along the highway and has a space for parking cars. The space is 60 sqm in area (6m x

10m), big enough to accommodate the materials and equipment needed.

C. LOGO
 As seen in the logo, the name of the enterprise which is SHOEWORX, the logo came

from the movie Happy feet, which shows penguins as the cast. Penguin spirit animal

signifies renewal, which is one of our main services, to renew or to restore shoes. We

changed its beak into a shoe to show the other service we offer, to preen shoes just like

the penguin beak’s function. It is printed in color blue which is the color of the sky and

sea and often related to depth and stability, depth of the proponents' will to do the

business and stability of the business. It also symbolizes trust and loyalty, trust of the

customers that should be nurtured to gain their loyalty. Below the name of the enterprise

is a pair of shoes with its shoelace forming a heart shape. The pair of shoes symbolizes

the customers and the business itself which is intertwined by the shoelace forming a

heartshape that would indicate the love of the proponents, workers and customers to the

shoes, the love of the proponents to the business, workers and customers, the love of the

workers to the business and customers and also the love of the customers to the business

itself, the owner and workers of the said business.

D. MISSION AND VISION

Mission

To provide best in class laundry and restoration operations to satisfy our customers by

delivering superior and quality service

Vision
 To be the industry leader and laundry service provider of choice through our consistent

excellence in all that we do. We shall remain trusted for our integrity, admired for our

innovations, respected for our business practices, and recognized for our success

E. DESCRIPTIVE DEFINITION OF BUSINESS

Obviously, shoes are one of the basic need - it is worn almost every day, may it be by

men or women, old or young, and may it be at work, in school, at the mall and so on.

Thus, the enterprise has a good potential in the service industry. The project aims to

provide a service that would maintain a clean and hygienic shoe and at the same time,

comfortable to use.

F. LONG TERM OBJECTIVES

The headmost objective of the establishment’s affiliation is to earn income, and to outlet

the company operations. But that doesn’t stop there.

The company envisioned itself to be the best Shoe laundry and restoration shop in Baguio

City and eventually will expand its operations and establish different outlets in different

places after years of operation.

The features of the business service will be improved through its research and

development program. There will also be monitoring of price and evaluation of all costs

and customers in order to reappraise the service’s profitability.

G. FEASIBILITY CRITERIA
 Profit generation and establish an innovative service that is not widely known and

offered. It is considered to be helpful for the customers, thus, it will surely be loved by

many.

H. HIGHLIGHTS

History

The proponents came up with the idea since August is a rainy season, thus, shoes are

getting wet upon going home from work, school, and such. The proponents were able to

assess that such service is a need to have clean and dry shoes quickly. Also, the

proponents are shoe lovers, letting go of their damaged shoes is difficult. They thought of

something that might bring old damaged shoes back into life. That's why they came up

with an idea of shoe restoration.

I. NATURE

The enterprise will fall in service industry, which will be owned by 5 partners who aims

to have income and provide excellent shoe restoration and laundry services in Baguio

City.

J. MODE OF FINANCING

The partners will be using their savings or borrow from families and friends since they

are still not financially capable. Availing loans will have to be with the use of

individual’s name and not the enterprise.

K. INVESTMENT AND WORKING CAPITAL

The partners are to cover a total of ₱250,000 for the initial investment. Jerrold Eirvin

Payopay (Production manager) will contribute ₱52,500, Mitzi Amabelle Almira Balurin

(treasurer) – ₱65,000, Mia Antonette Pascua (Accountant/ Bookkeeper) – ₱40,000,

Cladith Recolosado (General Manager) – ₱60,000, and Finasel Tolingan (Store Manager)

– ₱32,500. The profit/ loss distribution will be based on partner’s initial investment.

L. MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS

1. Market study

The study shows the services and the demand and of supply of the service in

Bakakeng, Baguio City. Upon the disbursement of the questionnaires through online and

survey form, the results show that out of the 390 respondents, 288 individuals are willing

to avail the service. Projected demand is based from the statistical parabolic method, and

projected demand will also be equal to the unsatisfied demand because of the absence of

projected supply.

2. Technical study

In this section, a point by point and further discussion of laundry and restoration

procedure, and project cost is exhibited. The business is in fact practical with total project

cost adding up to 191,563 which will come from the individual contribution of the

partners. The proposed business will service an estimated average of 61 pairs of shoes a

day and will be able to service an estimate of 20,252 pairs of shoes in 332 working days

in a year.
3. Financial study

The financial feasibility study is crucial part of the study to project how much start-up

capital is needed, sources of capital, returns on investment, and other financial

considerations. The study considers how much cash is needed, where it will come from,

and how it will be spent. It helps us in understanding the financial performance of the

company derived from its financial statements. This portion of the study shows the

specified terms whether the project will be profitable even with the existing unfavorable

economic conditions, and present detailed figures to show the projected financial

condition over time. This chapter will also include the trend analysis regarding the

financial standing of the company with the use of the financial ratios that measures the

financial status, liquidity, solvency, performance, and profitability for the first five years

of production.

4. Management study

The business will enlist a total of three employees. Two of them would be in-charge on

the laundry and restoration processes, and one employee will receive shoes to be washed

or restored, and the payment for the services done. To comply with the law, the

employees will be paid at minimum wage, and will have their benefits.

5. Socio-economic study

Socio-economic benefits of the firm will be considered. Socio-economic benefits refer to

benefits offered to a community as a whole through the use of SHOEWORX services,

and can include long-term impacts on the prevailing economic conditions, on levels of

education, on the family unit or on employment levels.

6. Accounting Information System (AIS)

Accounting Information System (AIS) is a formal process in which financial and

accounting data is collected, stored, processed and distributed to users. It supplies

information useful for decision-making, including financial statements and managerial

reports, thus providing benefits for the stakeholders needing to review financial

transactions. It provides useful information that is comprehensive. In this chapter, the

cycles and flowcharts used to show the process of how the revenue, cash receipt,

disbursement, purchase, and payroll procedures are done are presented. Moreover,

internal control system is also fully discussed in the accounting system. Policies,

procedures, techniques and documentation and personnel, together with the chart of

accounts for more efficient use of the accounting system, are what compose the internal

control system.
 GHANTT CHART

Activities 2019 2020

August September October November December January

Conduct of feasibility
study

Procurement of funds

Business permit

Purchasing of
equipment

Renovation and
arranging

Hiring of employees

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Purchase of materials

Start of operation