STI CALBAYOG

CALBAYOG CITY, SAMAR

S.Y. 2019-2020

BUSINESS PLAN
MRS. EDNA B. PINO
G-XII GAS

20
 TABLE OF CONTENTS

I. INTRODUCTION

A. THE BUSINESS CONCEPT AND BUSINESS MODEL

B. THE BUSINESS GOALS: VISION, MISSION, OBJECTIVES, AND PERFORMANCE TARGETS

C. THE BUSINESS OFFERING AND JUSTIFICATION

II. EXECUTIVE SUMMARY

III. THE BUSINESS PROPONENTS: ORGANIZERS WITH THEIR CAPABILITIES AND CONTRIBUTIONS

IV. THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION TO THE CUSTOMER

V. THE MARKET, MARKET JUSTIFICATION BASED ON THE INDUSTRY DYNAMICS AND THE MACRO
ENVIRONMENTAL FACTORS AFFECTING THE OPPORTUNITIESAND THREATS IN THE MARKET, THE SIZE,
POTENTIAL AND REALISTIC SHARE OF THE MARKET

VI. THE PRODUCT AND SERVICE OFFERINGS

VII. THE ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEMS: BUSINESS COMPETITIVENESS

VIII. THE FINANCIAL FORECASTS AND EXPECTED RETURNS, RISKS, AND CONTINGENCIES

IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE

X. THE CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS AND BENEFITS TO INVESTORS,
FINANCERS, AND BUSINESS PARTNERS
I. INTRODUCTION

A. THE BUSINESS CONCEPT AND BUSINESS MODEL

BUSINESS CONCEPT

Our enterprise is essential in any state of demography, whether what age and any related
demographic states a person has; it promotes fashion, confidence, product quality, uniqueness, qualified
tangible and intangible products. Our enterprise concept is all about production of various bags, and
custom made bag decorations, with certain specification such as wallets, sling bags and usual hand bags,
but with further qualified production and quality form of labour; Generation X and millennial are mostly
are target for our enterprise since they are into fashionable items, with relevance to the present day
trends, in addition our business aren’t just limited to bag production but also in performing or providing
services such as custom bag decorations but it will be dependent to the customer if he/she prefers to
have such.

BUSINESS MODEL

Our business is focused on various bag production and customized decorations, and there are
various areas that our business model must address; our business will raise revenues by investing (refers
to monetary investment), priority quality ever cost, seeking the demand of the customers, and prioritizing
the supplies gained in the market. Our enterprise is in the micro state when in terms of finance, costs, and
any relate works/labour costs, for our capital and finance is less than ₱50,000; various costs will be
managed through balanced sheets, income statements, charts, and monetary plan table. Various things
will drive various enterprise cost such as the demand and to control it, the entrepreneur will seek and
depend on price and supply. Our enterprise major investment will be money and our products which are
the bags, it will give us a competitive edge amongst competitor since our product, and the bags will be
helpful in future use also the money. To ensure the finance of investment, the entrepreneur will come up
with a scheme of monetary segmenting; what we have earned will be divided on keeping up the supplies,
for maintenance, sales, miscellaneous, and one for investment, to find and assure the growth of our
investment we will effectively and constantly check the money earned and given for investment to keep
it on growing constantly.
 B. THE BUSINESS GOALS: VISION, MISSION, OBJECTIVES, AND PERFROMANCE TARGETS

MISSION

The Mission of our company is to achieve the highest quality and standards throughout the
practice of the outfits, garments and in the industry of fashion that promotes individual confidence with
employees helping people sought out fashion problems, effectively communicate and guarantee the
demands of the world’s updating fashion trends and people’s crave for style.

VISION

The Vision of our company is to be world’s most fashion-forward, customer centric industry;
molding, updating , and innovating the minds of individual with further self-esteem, and awareness in
which people, employees , can find, magnify and convey things with elegance, fashion and passion in
outfits.

OBJECTIVES

The business objectives and goals of our enterprise are the following:

*To produce a shopping environment that is suitable for fashion and bags.
* To earn at least 75% market share and become competitive and a trusted enterprise in the city.
*To receive a 40% profit margin within the first year,
* Then to have a client base 1,300 by the year end of the first operating year and;
* To be functional business or enterprise to uphold and to give contentment or satisfaction to all
customers.

* Being green or being sustainable, referring to goods and services is our goal.

C. THE BUSINESS OFFERINGS AND JUSTIFICATION

Our business offers a not so wide range of bags it will be limited to wallets, sling bags, and usual hand
bags with an additional customized decorations hence, the said decorations of products will be dependent
to the requests of the customers whether the customers prefer or not to apply decorations to their bags
bought from our enterprise.
II. EXECUTIVE SUMMARY

Our business is the newest and the latest bag business or enterprise in the city, which is
customer centric, with eclectic wearable product kinds, that satisfies the needs and wants of every
consumer’s fashionable bag craves. Our business points out or seeks the taste of every millennial and
generation Xs, we provide a distinct variety of fashion ware. Starting from the shoulder to your fingers,
we provide you a quality of clothing products that you’ve ever wanted.

We are the first enterprise in the City of Calbayog that focuses on bags. Our business (FLEEK)
aims to be the top Customer Centric Fashion Industry, serving our fellow Calbayognon with quality bags
and services. Our store is located at the Magsaysay Street due to the ambiance, and most of all it is a
location in which Marketing/entrepreneurial activities is widely seen; “Keep your Consumer close, but
Competitors closer.” A saying we firmly believe since a lot of competitors are located at the said area,
hence with our staffs, employees, and enterprise sheer optimism and determination, we can still
achieve the top in this coming years.

The target Market of our company are the those people with an updated and hype taste, sense,
and admiration for person such as the Generation Xs and Millennial, with their OOTDs and innovated
fashion minds surely this enterprise will last for generation. Offering an exact amount for a qualified
products and services, gaining public trust, and sure customer satisfaction is our company’s top priority
rather than giving high priced products with a low quality.

This business is quite fresh and new to the eyes of our fellow Calbayognon, with a share
percentage of at least 50, plus increasing employees productivity and product quality by 20 percent
every 3 months, with the feedback and hard work in our business, plus promotion and specific market
targeting and position, then we can firmly say that we can dominate the other bags and fashion
enterprise, and provide our clients with further satisfaction not only in the city Calbayog but in and out
of the country.
III. THE BUSINESS PROPONENTS: ORGANIZERS WITH THEIR CAPABILITIES AND CONTRIBUTIONS

stakeholders

-Daniel estrada
-Jaymaica Lentejas
Governance and top
management

-Joshua Olasiman
-Gelean Alvarez
-Arjay Arnejo -Jessa Acebar
-Reycel Ortiz
Resources mobilizer and Technology providers and
applicators Operating and support
financial backers

IV. THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION TO THE CUSTOMER

The main specified target customers of our enterprise are millennial students, and adults with a certain
demographic status; we want to acquire a 20 percent out of 100 percent in the city population, to
suffice our target volume of customers, they will be buying quality product with the right cost which is
also fit for their budget.

Our main value preposition will be online selling for reaching far customer, personal selling for
promotional purposes, and lastly selling in our specific enterprise location.

V. THE MARKET, MARKET JUSTIFICATION BASED ON THE INDUSTRY DYNAMICS AND THE MACRO
ENVIRONMENTAL FACTORS AFFECTING THE OPPORTUNITIESAND THREATS IN THE MARKET, THE SIZE,
POTENTIAL AND REALISTIC SHARE OF THE MARKET

The estimated total market supply for our enterprise is 15 pieces of wallets and 5 hand bags and 15
sling bags, to sum it up it will be 2 dozens of various bags, but we will be expecting more and much from
the supplies that we will soon acquire. The market demand of our enterprise will be estimated to as a
middle to top demand rate for bags and any forms of fashionable items are a great hit for today’s
generation.
The major critical factors that influences the enterprise market, supply and demand are true trends, the
demographic status of an individual, the needs, wants, and interest of the customer, the resources used
to produce the product, the manufacturer of the product, the environment, and lastly the price, product
and quality.

These critical factors helped us to determine the future demand and supply in the market, and those
factors has the possibility to change.

 Product line will extend and will not remain stagnant.

 The market demand will increase
 There is a scarcity in supply, but it’ll be solved easily.
 Sustainability will attained
 Supplies will be terrific and will suffice the supplies needed ‘by the enterprise relevant
dynamics:

There are various competing enterprise in the industry of bags and fashion are as follows:

 Secosana
 Natasha
 Oxygn
 Penshoppe
 The white shop
 Taylor
 Cose
 Sena
 Racini
 Gemma’s

Their comparative advantages and disadvantages are listed below:

Advantages:

 They are present in/ has the same market location, with the same customer, and they create an
ambiance for fashion and the bag production industry, which serves as a factors for updating
the trends of the mass.

Disadvantages:

 They have the same product line that maybe a bit confusing, and also might cause comparison
and contrast each other; they may crate individual preferences among products related to bags
and fashion.

Their business models are mostly relevant each other, they offer bags and any fashion related item
with unique strategies for product and services promotion, such as online and direct selling[;with
great manufacturer and estimated supplies and demand.

The supplier in the said industry are bag and clothing lines that produces or manufacture bags, it
maybe online to shipping supplier form or direct supplier depending on the preferences. Various
 suppliers are capable of lessening and adding of supplies that may affect the demand of the mass
and may also affect the power of bargain for consumer; if the supply is at large and demands are
low, the BP will be high for product price are low and product quantity are high vice-versa.

The channels of distribution varies from online selling to manufacturer to the retailer:

inventory
manufacturer supplier distributor retailer
control

Manufacturer channel of distribution

online inventory
retailer online supplier manufacturer distributor retailer consumer
supplier control

Online Channel of Distribution

This channel of distribution is effective for it is concise, and informative; it delivers the manufactured
products easily without any sorts of burden and hassle that may end or result to enterprise conflict.

The Macro environmental factors that affects the opportunities and threats in the enterprise and also in
the market are the social environment, economic environment, ecological environment and
technological environment and are discuss below:

 Social environment- the demographic status, needs, wants, purchasing patterns, consumer’s
product preferences, the customs and traditions.
 Economic environment- the supply, demand, the country’s economic performance, foreign
exchange rates, and labour/ market forces
 Ecological environment- the resources, the climate, weather patterns and other environmental
factors.
 Technological environment- keeping up to date on future and latest trends, and future
technological advancement.

VI. THE PRODUCT AND SERVICE OFFERINGS

Our product and services offered in our enterprise are bags and customized decorations, the bags varies
from wallets, sling bags and hand bags which are commonly seen in public and are used by various teens
and people with different ages. Our product are bag related which are fashionable, and timely; our
services offered will be hand made decorations and it is dependent to the customers if they request to
have such decorations or just plain.
VII. THE ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEMS: BUSINESS COMPETITIVENESS

Enterprise Strategies

A. Product/Service Strategies

Our product selection will vary from the updated and common trends of the fashion industry, it
is priced exactly according to its quality. The product is purchase able through retailers and it comes in a
variety of colours, size, and style for a quality and standardized product offered in the market and is
merely based on public demands.

Our product line will be expanded and is not only exclusive on the common arrays of a certain
bag products such as wallets, sling bags, handbags, etc. but it is increased according to the demands and
feedbacks of the consumer on the company.

B. Pricing strategies

The pricing of our product may vary according to the expenses and the cost of raw material used
in creating the cloth. Quality of the product is the main basis of our pricing method in order to gain trust
and satisfaction towards our consumer. Suggested retail pricing are actually observed in our clothing
products in order to create balance. The pricing of our product is dependant to the quality and the raw
materials used to create a clothing product

C. Distribution Strategies

Our enterprise sets up or creates an effective way to distribute our products efficiently and
effectively, since our business is only starting therefore the specified location will be in the City of
Calbayog area only. Our way of distribution may vary online (Email/ internet) or personal (store).

This sample of distribution strategies is straight to the point and is not specific;

The process of distribution is shown below:

manufacturer distributor retailer consumer

This process is intended for the personal form of distribution.

While the online is shown below:

distributor(e
retailer mployee, retailer
delivery man)
D. Advertising and Promotions Strategy

Our enterprise has an advertising and promotional plan that allows us or helps us to effectively
reach out the target consumers and promote our company’s products and services to the publics.

- We will promote our product through the use and distribution of any printed
advertisements such as fliers, pamphlets, brochures, etc. throughout a specified area.

- Through sales talking since it is the most commonly used way of promoting the product
in order for the consumers to patronize it. It is considered as the safest way to promote
our company’s products and services.

- Through the use of internet since it is widely known, we can promote or advertise our
company’s product through the use of social media sites and ads.

INPUT THROUGHPUT OUTPUT MARKETING DESIRED

OUTCOMES
UTILIZATION AND CONVERSION OF GOODS PRODUCED POSITIONING -CUSTOMER
HARNESSING OF INPUT INTO OR SERVICES ARE SATISFACTION
HUMAN MONEY OUTPUT AND THE DISTRIBURED AND PRODUCT
AND PHYSICAL. TRANSFORMATION PERFORMED. -LOYAL
PROCESS WITHIN PACKAGING CUSTOMERS
RESOURCES THE
MOBILIZED MANUFACTURER OF PLACE -INVESTMENTS
MONEY THE SAID RETURNED
ENTERPRISE. PEOPLE
-CAPITAL
LABOR FORCE PROMOTION RETURNED

MACHINERY PRICE -PROFITS

GENERATED
RAW MATERIALS
-EMPLOYEES
METHODS PRODUCTIVITY

MANAGEMENT
VIII. THE FINANCIAL FORECASTS AND EXPECTED RETURNS, RISKS, AND CONTINGENCIES
9,800

Income Payback Period=------------------------------------ = 2 Days income payback period for 2 Days

4,900

4,900

Return on Sales= ---------------------------------------- = 42 percent (return on sales) return on sales

11,650

4,900

Return on Assets or Return on Investments =----------------------------------- = 50 percent Daily return on assets or return

9,800 on investments daily

Target: Percent:

Daily: 4,900 Daily: 50 %

Weekly: 34,300 Weekly: 97.5 %

Annually: 3,400,000 Annually: 100 %

Listed below are the risks or possible threats that the enterprise will face:

 Products will be less patronized

 Possible competitor with similar goods/ products and services
 Environmental factors
 Scarcity of resources
 Geographical status
 Consumers capabilities to purchase
 Consumers demand
 Scarcity of supply


Listed below are the following contingencies or alternative products that will be offered if our
enterprise failed to reach the goals, sell the products effectively, and uphold the mission and vision:

 Perfume, Cologne, and other scented products (Product)

 Paintings, sketches, and caricatures (Services)
 Hair wax, and styling gel (Products)
 Cosmetics, and / beauty products (Products)
 Printing (shirts, and any other clothing related products) (product and services)
IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE

Before our enterprise opens towards the market/the public, and offer our products and services to the
customers, we must have to secure first the following clearances and permits:

 Brgy. Business Clearance

 Community tax
 DTI Registration
 SSS Certification
 Locational Clearance
 Market Certificate
 Financial Statement
 Solid Waste Certificate
 Fire Safety inspection certificate
 Sanitary permit

The owner of the enterprise must produce their own rules and regulation, like for example, the
following below:

1. The employee must comply the following clearances, permits, and any things that must be
accomplished.
2. The staffs, employees, and the management must have their proper uniform.
3. Cleanliness and orderliness must be observed always.
4. Observe punctuality and warm service towards the customers.
5. Every employees must be/properly oriented and instructed.
6. The staffs and employees must be efficient and productive in their works.
 X. THE CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS AND BENEFITS TO INVESTORS,
FINANCERS, AND BUSINESS PARTNERS

Capital Structure
Capital: 9,800

This Structure and its content are utilized for the first day of the function of the enterprise:

Products & Related Cost

Resources Pcs. Cost Services Dependent Miscellaneous Cost
on Style fee
Wallets 15 ₱300 Stand ₱800

Sling bags 10 ₱1500 Talent Fee ₱500 Decoration ₱800

5 ₱1000 Fare/ Cost of ₱500
Hand bags Travel for
Purchasing
Fabric Paints/ textile 2 per ₱175-₱200 Promotional Side Product ₱200
paints colour Expenses ₱1000
Logo Sticker 30 ₱400 Extra ₱2,000
promotion
Product
Tags 30 ₱300 Throughput ₱100-
resources ₱200
Canvas 5 ₱800 ₱1,000
Oil/Poster Paint 1 pack ₱400 ₱4,900
set of
colour
₱4,900

Investors: Finances: Partners of the Enterprise:

Parents Parents Pasithea Service
Students Students
External Consumers Financial Backers
Internal Consumers Top Management of the Enterprise