CYAL

“SoCYAL na, Barato pa!’’

A BUSINESS PLAN

Arteta, Elaizah L.
Cataylo, Quennie Rose B.
Lazarte, Renadel C.
Ymbol, Regie Orville S.
Proprietor

TLE 110 - Entrepreneurship in Technology Education

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 SECTION I: THE BUSINESS

1. Description of the Business

CYAL stands for the surnames of the proprietors, C for Cataylo, Y for Ymbol, A
for Arteta, and L for Lazarte. The foundation of the entrepreneurs' all-out
collaboration is the goal of providing the best and quality wooden crafts which are
eco-friendly, convenient to use, and affordable. These wooden crafts are ideal and
perfect for home decorations, table organizations, labels and tags and other
personal purposes. Furthermore, CYAL products are also functional to make
students' and teachers' online classes convenient as they provide tables for laptops
and phone stands.

Eco-friendly yet aesthetically made products are the trend nowadays and thus
CYAL provides wood crafts and decoration items that are made from wood scraps
saved from waste and are convenient, accessible, durable, and have simplistic designs
that reflect our ideas in the house and the goods we use at school and work. CYAL
wooden craft items provide customers with an excellent value of sustainable and
budget-friendly products.

Since it is more convenient for instructors and students in the city, CYAL
wooden crafts furniture will be displaying the items at our CYAL small shop near the
Tibanga Highway. Due to the pandemic scenario, we appreciate our beloved
customers' safety by providing online shopping with home deliveries. We can sell our
wooden crafts online through our CYAL Shopee store, CYAL Facebook page, and
CYAL Instagram account for easy, fast, and secure transactions. As a result, every
piece of CYAL wooden crafts will be sold at the lowest feasible price.

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 2. Product/ Service

CYAL is a woodcraft & decor business that will be formally incorporated as

a general partnership and a product base type of business. It is a company that
will focus on supplying high-quality furniture and personalized wooden craft
designs to our valued customers at an accessible price, allowing them to
appreciate the value of our CYAL wooden crafts and these products constitute the
primary source of income of the business.

3. Market

The business's market area will be on the side of a highway. Primarily, the
Proponents are expecting to distribute and sell the items to its primary market: the
students, teachers, and young professionals since the business is located near a
school or university, boarding houses, apartments, and residences. Secondary
target markets are small-space homeowners in the city to experience our best
quality wooden items. The proponent's target market is within the middle-class
society level, and whose paying capacity is within the middle socio-economic level.
Moreover, since the proponents consider the paying ability of its target market, it is
rational that one of the consumer and customers' buying reasons is the product's
affordability and quality. The target clientele of CYAL wooden craft & decor
furniture will indeed purchase the wooden craft items because of their minimalist
design, best wood quality, affordability, and convenience.

4. Location of the Business

CYAL woodcraft & decor business will be based in Iligan City, specifically
at Andres Bonifacio Avenue, Tibanga Highway. It is located on the side of the road,
it is near a University, and strategically located within an area near several
apartments and boarding houses, a hospital, retail businesses, establishments and
residential houses. As a result, the location was chosen because the proponents
consider it a strategic position for making a profit and producing woodcrafts that
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 meet the demand and interests of the target market. Related businesses are
located in the center of the city and therefore consumers of various wood crafts
residing in Tibanga and even in Barangays around Tibanga would be more
accessible to the business physical store. Strategically the store is only a minute
away from its suppliers and hardware, which we can reach if we run out of stock of
goods.

The business is extremely visible and accessible to anyone because it is

located near the highway and a major thoroughfare in Iligan City. The map of the
business location or area is shown below.

Figure 1. The Business Location CYAL woodcrafts and decor shop in the
screenshot of google maps.

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5. Competitors

Iligan City is noted for its wooden furniture businesses and home crafts
shops. On the other hand, the manufacture is centered on simple wooden craft
objects, most likely for schools, offices, and modest homes. Within the business
area, there are three main rivals in terms of the target market. Table 1 highlights
the various elements that would draw a line between the proponents' services
offered relative to its competitors to compare products and services.
Table 1. Factors that would draw a line between the proponents’ services
relative to its competitors.

Factors Proponents Competitor 1 Competitor 2 Competitor 3

Modern Homebiz Wood Iligan Rattan
Furniture Island and Bamboo and
Craft Construction
Services

Price Varied Fixed Fixed Fixed

Location Near the Near the Near the Near the

customers customers customers customers

Accessibility More Accessible Accessible Accessible

accessible

Quality Better Good Good Good

Service

Convenience More Convenient Convenient Convenient

convenient

Products Wide varied, Varied Varied Varied

minimalist

Table 1 shows that what the competitors are currently offering will be the
basis for the proponents’ actions in implementing its plan. The proponents will
choose new techniques that will increase client loyalty and give the company a
positive image.
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 CYAL woodcrafts and decor products are modern in terms of design or a
combination of classic and modern design ideal for minimalist homes or room
owners who love the cozy effect of wood designs. We offer customized designs of
wood crafts and decors that may be used in schools, offices, and even modest
homes. There are wooden laptop tables, phone holders and stands, frames,
hanging cup holders, wooden candle holders, and a variety of other woodcrafts
decorations to choose from.

The items are sold at a fair price. Customers and consumers will pay for the
highest quality experience rather than the brand, which is why CYAL woodcrafts
and decor is proud of every item that provides value to all customers.

Table 2 demonstrates how CYAL woodcrafts and décor differ and stand out
from its competitors, as well as why it should be a customer's first option. The
competitor's profile in connection to CYAL woodcrafts and decor is shown in Table
2. The price, product, location, and service are all included in the profile.

Table 2. PROPONENT and COMPETITOR’S PROFILE

BUSINESS PRICE PRODUCT SERVICE PLACE

PROPONENT Lowest possible Made from Customize Located near a

price and lower trusted raw design, school, a
mark-up price. materials Packages, hospital, and
Products come local Pre-order Dormitories. It is also
in DIY suppliers reservations, located on the side of
woodcrafts and Over-the-counter the highway where
minimalist sets Service, and it is very visible to the
which make home by-passers and
them more deliveries. automobiles

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 affordable.

COMPETITOR Prices are Made of Over-the-count Located on the side

1 added with woods with er and of Roxas Avenue
mark-up price, foams and Display shop road. Have small
Modern Furniture value-added glass to look for space but enough to
Island tax, service fee products, display all products

COMPETITOR Prices are Made from Offers Located at Gamao

2 added with Wood and Customizations, Subdivision, Luinab. A
Home biz mark-up price, Bamboo over-the-counter home-based shop
Wood and value-added Crafts and where it’s far from the
Bamboo Craft tax, service fee can tour around center of the city.
to look for
products

COMPETITOR Prices are Made from Located near a

3 added with Rattan woods Over-the-cou school and
mark-up price, nter and dormitories. It is also
Iligan Rattan value-added Display shop located in front of
and tax, service fee to look for Capitol College but
Construction products has no
Services area for
parking or
quick stop

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 6. Price

Price is really a factor in the marketing mix. Thus the selling price of CYAL
woodcrafts and decor will be based on “COST PLUS MARK-UP PRICING WITH
PSYCHOLOGICAL PRICING TECHNIQUE”. The proponents will also benchmark
with existing Rattan Crafts Wood, Bamboo Craft, and Wooden Home Furnitures to
ensure that the pricing of the existing competitors will be comparative with the
business’ price. Based on the research conducted the proponent found out that a
profit mark-up of 30% over the total product cost is very reasonable and
competitive especially at this initial stage. Tables 3 show the price scheme of the
products using the cost-plus method with a 20-25% mark-up. Customized or
personalized woodcrafts will be priced separately as shown in table 4.

Table 3. Selling Price for CYAL woodcrafts and decor

Product names Total Mark up Suggested Price

Production (20-25%) (each product)

Cost

Pallet Wood Laptop ₱432.00 ₱167.00 ₱599.00

Riser

Coffee Mug Hanger ₱391.00 ₱108.00 ₱499.00

Modern Side table ₱ 608.00 ₱191.00 ₱799.00

Wood Display Frames ₱515.00 ₱184.00 ₱699.00

with Plexiglass

Wooden phone stand ₱661.00 ₱ 138.00 ₱799.00

with Pen holder

Hardwood keychain ₱134.00 ₱ 65.00 ₱ 199.00

Wood Wall Decor ₱88.00 ₱11.00 ₱99.00

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 Table 4. Selling Price for Customize Wood Crafts & Decor Packages
The CYAL woodcrafts and decor packages will help to sell and easily market
the CYAL items to provide detailed information to the customers who may be looking to
buy packages for special occasions. Moreover, CYAL woodcrafts and decor
customization will enable us to generate more sales, stand out among competitors, and
gain better customers insights to increase customers loyalty. .

Product names Suggested Suggested Price

Price (in personalized wood
crafts & decor
(Gift packages of CYAL items) designs)
5% discount

CYAL Wooden craft package 1 ₱719.00 ₱799.00

(Pallet Wood Laptop Riser +Wooden phone stand with Pen holder)

CYAL Wooden decor package 2 ₱719.00 ₱799.00

(Wood Display Frames with Plexiglass+Coffee Mug Hanger)

CYAL Wooden craft package 3 (Hardwood ₱829.00 ₱899.00

keychain+Wooden phone stand with Pen holder+Coffee Mug
Hanger)

CYAL Wooden decor package 4 ₱1,019.00 ₱1,099.00

(Modern Side table+Wood Display Frames with
Plexiglass+Hardwood keychain)

CYAL Wooden craft package 5 ₱1,109.00 ₱1,199.00

(Pallet Wood Laptop Riser+Coffee Mug Hanger+Wooden phone
stand with Pen holder)

CYAL Wooden craft package 6 ₱1,399.00 ₱1,499.00

(Modern Side table+Coffee Mug Hanger+Wood Display Frames
with Plexiglass)

CYAL Wooden craft package 7 ₱899.00 ₱999.00

(Hardwood keychain+Wood Display Frames with
Plexiglass+Wooden phone stand with Pen holder)

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7. Marketing Strategies

Prospective consumers can visit and check out the proponent's page to establish
the location of the business and look into the products for chosen wood crafts items
and décor on social networking platforms such as Facebook Page, Instagram
Business Shop, and Shopee.

The following steps will be used to develop the project's marketing strategies:

7.1 Product Strategy

The business will be known as “CYAL Woodcrafts & Decor,” It will primarily
provide students, teachers, and home-based workers with convenient, eco-friendly, and
budget-friendly woodcrafts items. The items are aesthetically pleasing and
environmentally friendly, allowing them to feel at ease while learning and working. Since
customization improves client views of service quality, satisfaction, trust, and ultimately
loyalty to a service provider, customizing our products will benefit the business. The
business’ products will be unique from the existing competition since it will offer a wide
variety of woodcrafts decorations.

7.2 Pricing Strategy

The proponent will use both psychological pricing and the cost-plus mark-up
pricing technique. Legally following the percentage mark up for woodworking and
perishable items of the Department of Trade and Industry which is between
50%-100% markup. In which, the pricing strategy of each CYAL item is based on the
cost plus mark-up method with psychological pricing technique that ends with 99 so
that customers will read the slightly lowered price and treat it lower than the price
actually is. However, the proponents choose to have the lowest mark-up percentage
to ensure that target markets will be catered to. The proponents will also ensure that
the price is set comparable to the price set by the competitors.

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7.3 Promotion Strategy

The proponents will utilize different tactics to carefully promote the items or
services, including word-of-mouth advertising, tarpaulins placed across the city, and
people networking advertising. We also include page lay-out and creative posters in
posting our advertisements in social media accounts by taking Instagrammable
photos to excite our customers and make our business an instant hit. The first 30
customers will receive free limited edition wood keychains from CYAL. Furthermore,
to reach a more significant number of potential customers, the business will use
social media marketing to make itself prominent by posting daily on the CYAL
woodcrafts & décor Facebook page and Instagram account. Furthermore, the
company's staff and employees will provide unrivaled service.

7.4 Distribution Strategy

The business is a new venture which will not require a channel of distribution
through middlemen or retailers. Our CYAL shop is open for sales over the counter,
as well as online shop purchases. Our CYAL products are on hand, therefore
products can be inspected before purchasing which is an advantage as compared
with wooden crafts bought from shopee, lazada, and other online stores. The
physical store is strategically located near the highway and an area where students
frequently pass through, making them accessible to markets interested in our CYAL
woodcraft and decor items.

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7.5 Marketing Budget

The costs to be incurred will only be on the promotional measures. Table 5

shows the proposed budget.

Table 5. Promotional Tools and Proposed Marketing Budget

TOOLS PRICE QUANTITY/SIZE DURATION

Facebook ₱500.00 1 business Max of 6

Advertisement account months
Boosting

Instagram Free Free Max of 1 year

Advertisement

Blog Free Free Max of 30 days

Making a website Free Free Max of 1-year

Tarpaulin ₱450.00 1.8 x 3 6 x 10 Max of 3 months

CANT2 - Tan
Canvas Tarpaulin

Freebies (Free ₱500.00 100 pieces 5 Days Operation

100 keychains for
first 100
customers)

Total ₱1,450.00

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8. Summary of Section One
CYAL Woodcrafts & Decor is a general partnership that specializes in
woodcrafts and decor. It is a firm dedicated to providing high-quality furniture and
customized wooden designs to our loyal customers at an affordable price, allowing them
to realize the value of our CYAL wooden crafts. In which, the pricing strategy of each
CYAL items is based on the cost plus mark up method with psychological pricing
technique that ends with 99 so that customers will read the slightly lowered price and
treat it lower than the price actually is. However, the proponents choose to have the
lowest mark-up percentage to ensure that target markets will be catered to. Our wooden
crafts and decors will be available for design, such as Pallet Wood Laptop Riser, Coffee
Mug Hanger, Modern Side Table, Wood Display Frames, Hardwood keychain, and
Wooden phone stand holders with pen holders customization to enhance CYAL brand
loyalty.
The business will be based in Iligan City, on Andres Bonifacio Avenue, Tibanga
Highway. It is located on the side of the road near a university, a hospital, apartments,
boarding homes, residences, and other commercial and retail establishments.
Therefore, with its strategic location, CYAL Woodcrafts & Decor will be providing
online shopping with home deliveries to its primary customers: students, teachers, and
young professionals, and secondary target markets who are Iligan traveler travelers for
their Pasalubong gift to their loved ones. They can also personally purchase our items
in our CYAL Woodcrafts & Decor shop near Tibanga, Highway. The target market for
the proponent is a middle-class society with a middle socioeconomic level of paying
capacity. As a result, every CYAL wooden creation will be sold at the most affordable
price possible.
Moreover, because the proponents evaluate the paying capacity of the target
market, it is reasonable to assume that one of the consumer and customer purchasing
reasons is the product's affordability and quality of our CYAL wooden and handmade
items. The target customers of CYAL wooden craft & decor will purchase the wooden
craft items because of their minimalist design, best wood quality, affordability, and
convenience, which is the business's key advantage over its competitors.

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 SECTION II: PRODUCTION PLAN

1. Product Classification

CYAL wooden craft & decor is eco-friendly and also customizes

wooden designs to our loyal customers at an affordable price. Is a wooden
craft & decor business that will primarily be offering woodcraft packages,
customization design, and hassle-free purchase online which we offer home
deliveries. CYAL wooden craft & decor will be having a small physical shop
to display our wooden items and directly order or make order reservations.
Consumers and customers can purchase the wooden items online or
personally visit our CYAL wooden craft & decor shop depending on their
convenience.

2. Product Specification

CYAL Woodcraft & Decor will primarily sell woodcraft items in the form
of handcrafted wood crafts and decorations, as well as gift packages, and
CYAL woodcraft & decor highlight our customized items for our dear
customers preferred choice. Including specifications like sizes, functions,
height and etc provided of each CYAL woodcraft & decor item. The following
are some of the woodcraft items we offer.

2.1 Pallet Wood Laptop Riser

The CYAL Pallet Wood Laptop Riser is a 7-15 inch adjustable stand for
laptops that provide additional convenience and comfort to users. It is a
firmly-structured layout that brings stable positioning which can well work for
playing games, personal study, or working office needs. It's easy to mount on and
remove lightweight and foldable and easy to carry on the road. It can also free up
desk space by elevating the notebook off the desk. It is latex painted, has a
polished finish, and is of good quality. The CYAL Pallet wood laptop riser can be
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 tailored to the customer's specifications.

2.2. Coffee Mug Hanger

The CYAL’s 13" height x 12" length Coffee Mug Hanger is a piece of wood
home decor with exquisite latex paint finishes in walnut, ivory rustic, and dark
gray hues. It is used for storing, displaying, drying mugs and cups. It can hold up
to 6 mugs at a time in a convenient, staggered design. The CYAL wooden coffee
mug hanging comes with 6 or more hooks that are ideal for your kitchen or coffee
bar. The CYAL Coffee Mug Hanger can be customized depending on customers’
preferences.

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2.3 Modern Side Table

The CYAL Modern Side Table with dimensions of 14.2x9.5x11 inches is

constructed of plywood with flawless latex paint finishes in ivory, walnut, and dark
brown. It can be used as a storage shelf, coffee or tea table, desk leisure,
magazine storage, or rack table. CYAL's open-end table has a simple, neutral
design. Customers can have the CYAL Modern Side Table modified to their
desired preference.

2.4 Wood Display Frames with Plexiglass

The CYAL Display frames, which were initially constructed of wood, have
been changed into a one-of-a-kind way to show off photos and other
wall-mounted artwork It features a firm seal, an outstanding latex paint finish,
and a long-lasting quality when fitted in walls. The CYAL Display wood frames
can be tailored to suit the preferences of the customer.

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2.5 Hardwood keychain

The CYAL Hardwood keychain is made of real wood, leather, and metal.
These make great personal items and promotional. It features personal letter
carvings, symbols, with the perfect finishes of latex paint finish, and a long-lasting
quality when fitted in walls. These make great personal customization items and
are perfect for pasalubong gifts depending on the customer’s specifications.

2.6 Wooden phone stand with Pen holders

The CYAL Phone stand with Pen holders, which were initially constructed of
wood, have been changed into a one-of-a-kind way to show off photos and other
wall-mounted artwork It features a firm seal, an outstanding latex paint finish,
and a long-lasting quality when fitted in walls. The CYAL Display wood frames
can be tailored to suit the preferences of the customer.

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2.7 Wood Wall Decor

Wood wall décor from CYAL Woodcrafts & Décor will instantly add warmth to
your space. It will be made of solid wood, varnished, and completed with the
customer's preferred paint color and other personalized designs.

3. Raw Materials

The input commodities or inventories that a company needs to make

its products are known as raw materials. There are two types of raw
materials: direct and indirect. The finished output contains direct materials.
Indirect materials are employed in the manufacturing process but are not
included in the end product. The supplies required for this enterprise are
readily available around the city, and the proponents had canvassed for raw
material pricing. Tables 6 and 7 also illustrate the required quantity of raw
materials, the cost of raw materials, and the availability of these raw
resources in the business's operations. Table 6 has a list of direct raw
materials that can be consumed in two or more wood products, whereas
Table 7 contains a list of indirect raw materials.

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 Table 6. Direct Raw Materials

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

½ Plywood 6 pcs. Industrial ₱860.00 ₱5,160.00

Center or
Hardware

¾ Plywood 6 pcs. Industrial ₱1,160.00 ₱6,960.00

Center or
Hardware

Wood strip 5 bundle Industrial ₱350.00 ₱1,750.00

Center or
Hardware

Popsicle sticks 5 packs Industrial ₱20.00 ₱100.00

Center or
Hardware

TOTAL ₱13,970.00

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Table 7. Indirect Raw Material
MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Wood glue 4 kg Industrial ₱230.00 ₱920.00

Center or
Hardware

Lacquer or Varnish 2 liter Industrial ₱250.00 ₱500.00

Center or
Hardware

Wood Primer 2 liter Industrial ₱250.00 ₱500.00

Center or
Hardware

Wood Paint (assorted 3 liters Industrial ₱250.00 ₱750.00

color) Center or
Hardware

Wood screws 3 box Industrial ₱200.00 ₱600.00

Center or
Hardware

Hanging hook screw 5 packs Industrial ₱150.00 ₱750.00

Center or
Hardware

Utility Paintbrush 2 sets Industrial ₱100.00 ₱200.00

(assorted sizes) Center or
Hardware

Sandpaper (assorted 2 set Industrial ₱150.00 ₱300.00

sizes) Center or
Hardware

Twine Rope Cord 100 meters Educational ₱100.00 ₱100.00

Strings (2mm or 3mm Supply
size) Stores

Stick glue 1 pack Educational ₱50.00 ₱50.00

Supply
Stores

TOTAL ₱4,670.00

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 4. Operation Process

CYAL decorators offer fine-made wooden crafts. The different

wooden crafts are specifically produced as signified in the following
process flow charts:

Figure 1. Process Flowchart for Pallet Wood Laptop Riser

Figure 2. Process Flowchart for Coffee Mug Hanger

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Figure 3. Process Flow Chart for Modern Side Table

Figure 4. Process Flow Chart for Wood Display Frames with Plexiglass

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Figure 5. Process Flowchart for Hardwood keychain

Figure 6. Process Flowchart for Wooden phone stand with Pen holders

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Figure 7. Process Flow Chart for Wood Wall Decor

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5. Classification of Equipment

As a Woodcrafts & Décor business entity, CYAL will require the

following tools, equipment, and supplies, as listed in Table 8.

Table 8. Classification of Tools, Equipment, Supplies, and Furniture

WOODWORKING TOOLS

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Hand saw 2 pcs Industrial ₱200.00 ₱400.00

Center or
Hardware

Steel tape 3 pcs Industrial ₱140.00 ₱420.00

measure Center or
Hardware

Claw hammer 2 pcs Industrial ₱200.00 ₱400.00

Center or
Hardware

Screwdriver 1 set Industrial ₱300.00 ₱300.00

Center or
Hardware

TOTAL ₱1,520.00

WOOD EQUIPMENT

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Power or Electric 1 Unit Industrial ₱1,500.00 ₱1,500.00

Drill Center or
Hardware

TOTAL ₱1,500.00

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OFFICE SUPPLIES AND MATERIALS

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Bond Papers 2 Rims Educational ₱150.00 ₱300.00

Supply
Stores

Ballpens 1 dozen Educational ₱60.00 ₱60.00

Supply
Stores

Pencils 1 dozen Educational ₱80.00 ₱80.00

Supply
Stores

Calculators 2 Units Educational ₱150.00 ₱300.00

Supply
Stores

Carbonized 2 pads Educational ₱20.00 ₱40.00

Receipt pad Supply
Stores

TOTAL ₱780.00

CLEANING MATERIALS AND SUPPLIES

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Brooms 2 pcs Department ₱80.00 ₱160.00

Stores

Broom Sticks 2 pcs Department ₱20.00 ₱40.00

Stores

Dust Pan 2 pcs Department ₱50.00 ₱100.00

Stores

Disinfectant 1 gallon Department ₱280.00 ₱280.00

Alcohol Stores

Trash Bins 2 pcs Department ₱99.00 ₱198.00

Stores

TOTAL ₱775.00

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FURNITURE AND FIXTURE

Office Desk 1 Unit Furniture ₱1,780.00 ₱1,780.00

Shops

Office Chair 3 Units Furniture ₱500.00 ₱1,500.00

Shops

Wooden Square 1 Unit Furniture ₱1,200.00 ₱1,200.00

Table Shops

Wooden Stool 3 Units Furniture ₱250.00 ₱750.00

Shops

TOTAL ₱ 5,230

OVERALL TOTAL ₱9,805.00

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 5.1 Maintenance and Repair of the Tools and Equipment

Always keep your tools and equipment in good working order and
treat them with care. In the long run, proper care and maintenance will assure
proper operation. To ensure adequate equipment maintenance, safety
precautions, instructions, and other reminders will be placed inside the working
area to ensure proper and safe tool and equipment operation. Every day, the
equipment must be inspected, cleaned, and polished. Repairs must be
completed as soon as damages or problems are noticed and recognized so
that the business's operations are not jeopardized. Electrical parts will be
checked every month as well. In addition, weekly disinfection in our display
shop is required owing to pandemic safety precautions.

6. Plant Size (Determinants of Product Area and Capacity Utilization)

A modest yet appealing CYAL Display shop with a floor area of three (3) by
four (4) square meters and a height of five (5) meters. The locations will be large
enough to accommodate the clients. Within the display shop space, the store can
only accommodate ten (10) clients. Including the CYAL employees; Manager,
Supervisor, Cashier, Delivery Man,(4) carpenters, and furniture makers, a total of
(8) employees.
Due to the pandemic condition, the wood production area will be in our own
home space, with the capacity to store raw materials for 1 to 2 days of operation,
assuming 25 working days per month, and the ability to make products daily. We
also have a display shop to store items in, which is a rented location that was
modified to meet the proponents' style of business. The business's shop layout
and floor plan are seen in Figures 9 and 10.
The capacity of CYAL woodcrafts and décor will be utilized to the fullest
extent possible. This means that, while the firm will be open Monday through
Saturday and will close on Sundays, the operation each day will be 12 hours. The
services will be available from 8:00 a.m. to 5:00 p.m.

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Figure 9. CYAL woodcrafts and décor Layout plan

Figure 10 CYAL woodcrafts and décor Floor Plan

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7. Production Schedule

The business has a production capacity of sets of fried viands in a different

number of pieces per variety. The business will officially operate at 100% capacity
per day. Table 9 shows the approximate production schedule of each variety of
fried dishes.

Table 9. Production and Technical Schedule

Product Preparations and Wood Working Quantities

Pallet Wood Laptop 8 hours a day (5 Days) = 40 Hours 5

Riser

Coffee Mug Hanger 8 hours a day (3 Days) = 24 Hours 10

Modern Side Table 8 hours a day (5 Days) = 40 Hours 5

Wood Display Frames 8 hours a day (4 Days) = 32 Hours 15

with Plexiglass

Hardwood keychains 8 hours a day (2 Days) = 16 Hours 50

Wooden phone stand 8 hours a day (2 Days) = 16 Hours 10

with Pen holders

Wood Wall Decor 8 hours a day (2 Days) = 16 Hours 10

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8. Compensation Chart of the Employees

The CYAL business’ employees and furniture makers will be paid with the precise
value for their work every month and they also will be provided with water, snacks,
and bonuses equally. The table below shows the compensation chart for the
employees.

Table 10. Compensation Chart of the Employee

No. of Salary Meal Total Total

worker per day allowances Cost per Cost per
per day day month

Direct Labor

Delivery boy 1 ₱300.00 ₱100.00 ₱400.00 ₱10,000.00

Carpenters/Furniture 4 ₱350.00 ₱100.00 ₱450.00 ₱11,250.00

Makers

Indirect
Labor

Manager 1 ₱ 500.00 ₱100.00 ₱600.00 ₱15,000.00

Supervisor 1 ₱450.00 ₱100.00 ₱550.00 ₱13,750.00

Cashier 1 ₱400.00 ₱100.00 ₱500.00 ₱12,500.00

Total Labor Cost ₱ 62,500.00

31
9. Unit Production Cost

Table 11. Cost of Raw Materials per Product

Pallet Wood Laptop Riser

Quantity Unit Items Unit Total Amount

Price

1 pc. Pine Wood Strip ₱80.00 ₱80.00

1 pc. Pine Wood ₱30.00 ₱30.00

Sheet

1/4 kg. Wood Glue ₱57.00 ₱57.00

10 pcs. Wood Screw ₱2.00 ₱20.00

1 galloon Paint ₱66.75 ₱66.75

1 liter Varnish ₱42.50 ₱42.50

3 pcs. Sand Paper ₱40.00 ₱120.00

1 pc. Paint Brush ₱15.00 ₱15.00

Total ₱431.25

Mark Up (20%) ₱86.25

Selling Price ₱518.00

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Coffee Mug Hanger

Quantity Unit Items Unit Total

Price Amount

3 pcs. Sand Paper ₱40.00 ₱120.00

1 pc. Pine Wood Strip ₱83.00 ₱83.00

18 pcs. Hook Screw ₱35.00 ₱35.00

1 pc. Pine Wood Sheet ₱92.00 ₱30.00

1 galloon Paint ₱66.00 ₱66.00

1 liter Varnish ₱42.00 ₱42.00

1 pc. Paint Brush ₱15.00 ₱15.00

Total ₱391.00

Mark Up (20%) ₱78.20

Selling Price ₱469.00

33
Modern Side Table

Quantity Unit Items Unit Total Amount

Price

1/4 kg. Wood Glue ₱57.00 ₱57.00

1 pc. Pine Wood Strip ₱144.00 ₱144.00

1 pc. Pine Wood Strip ₱124.50 ₱124.50

1 pc. Marine Plywood ₱98.00 ₱98.00

1 liter Varnish ₱42.50 ₱42.50

1 galloon Paint ₱66.75 ₱66.75

1 pc. Paint Brush ₱15.00 ₱15.00

30 pcs. Wood Screw ₱2.00 ₱60.00

Total ₱607.75

Mark Up (20%) ₱121.55

Selling Price ₱729.00

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Wood Display Frames with Plexiglass

Quantity Unit Items Unit Total

Price Amount

1 pc. Pine Wood ₱139.00 ₱139.00

Sheet

15 pcs. PlexiGlass ₱45.00 ₱675.00

6 pcs. Wood Screw ₱2.00 ₱12.00

1/4 kg. Wood Glue ₱28.00 ₱28.00

1 pc. Paint Brush ₱15.00 ₱15.00

1 liter Epoxy Resin ₱243.00 ₱243.00

1 galloon Paint ₱33.00 ₱33.00

Total ₱515.00

Mark Up (20%) ₱103.00

Selling Price ₱618.00

35
Wooden Phone Stand with Pen Holders

Quantity Unit Items Unit Total

Price Amount

1 pc. Marine Plywood ₱61.25 ₱61.25

1 pc. Pine Wood Strip ₱9.00 ₱9.00

1 pc. Pine Wood Sheet ₱92.00 ₱92.00

1 pc. Paint Brush ₱15.00 ₱15.00

1 liter Epoxy Resin ₱243.00 ₱243.00

1 liter Paint ₱33.00 ₱33.00

1/4 kg. Wood Glue ₱28.00 ₱28.00

30 pcs. Wood Screw ₱2.00 ₱60.00

3 pcs. Sand Paper ₱40.00 ₱120.00

Total ₱661.25

Mark Up (20%) ₱132.25

Selling Price ₱793.50

36
Hardwood Keychains

Quantity Unit Items Unit Total Amount

Price

1 pcs. Pinewood Strip ₱3.00 ₱3.00

1 pack Metal Key Holder ₱55.00 ₱55.00

Ring

1 pc. Paint Brush ₱15.00 ₱15.00

liter Varnish ₱28.00 ₱28.00

1/4

1/4 liter Paint ₱33.00 ₱33.00

Total ₱134.00

Mark Up (20%) ₱26.80

Selling Price ₱161.00

Wood Wall Decor

Quantity Unit Items Unit Total Amount

Price

1 pc. Pinewood Strip ₱9.00 ₱9.00

1 pc. Paint Brush ₱15.00 ₱15.00

1/4 liter Varnish ₱28.00 ₱28.00

1/4 liter Paint ₱33.00 ₱33.00

Total ₱85.00

Mark Up (20%) ₱17.00

Selling Price ₱102.00

37
 SECTION III: ORGANIZATION AND MANAGEMENT PLAN

1. Form of Business

The Business will be known as CYAL Woodcrafts & Décor and will be run by
four general partners: Quennie Rose B. Cataylo, Elaizah L. Arteta, Renadel C.
Lazarte, and Regie Orville S. Ymbol. In a general partnership, all partners share
legal and financial responsibilities equally. Individuals are liable for the partnership's
debts. Profits are also split fairly. A partnership agreement will almost probably spell
out the mechanics of profit distribution. In order to, to share equal profits and losses,
jointly administering business operations, making capital investments in the
endeavor, and owning property jointly as partners. The company's branch is located
along a highway, specifically on Andres Bonifacio AveTibanga Highway in Iligan City.

2. Organizational Structure

As a small firm, CYAL Woodcrafts & Décor will have a minimal organizational
structure with eight employees. This is a general partnership that each employee
has desired functions in the company will be led by Ms. Quennie Rose B. Cataylo,
who will also serve as the general manager. In the absence of the manager, Ms.
Elaizah L. Arteta will operate as the supervisor and marketing manager, personally
monitoring and controlling business activities. While, Ms. Lazarte will be the sales
personnel and also work as a cashier, keeping track of the business's daily cashouts
and financial sales. When consumers order online, Mr. Ymbol will be the Production
Manager to guide the furniture makers and will be the delivery man too. Along with
our 2 wood workers and 2 furniture makers. This will ensure that daily business
activities are smooth, safe, and of high quality.

As a tiny firm, the business will be run in a relaxed and authoritarian manner.
Quality standards and production operations, on the other hand, will be strictly
enforced. Figure 9 depicts the organizational structure.

38
Figure 9
Organizational Chart of CYAL Woodcrafts & Décor

3. Management
CYAL Woodcrafts & Décor is a form of cooperative type of business
organization that is owned and controlled by a group of friends. CYAL Woodcrafts
& Décor will be managed by its direct owners, who will also serve as Manager,
Supervisor, Cashier, and wood artisan. Ms. Quennie Rose B. Cataylo, Ms. Elaizah
L. Arteta, Ms. Renadel L. Lazarte, and Mr. Regie Ymbol are equipped with the
following qualifications:

● Ms. Quennie Rose B. Cataylo, the Manager is an undergraduate of

Bachelor of Technology and Livelihood Education major in Industrial
Arts. Ms. Cataylo has a background in woodworking since she has a
subject in Civil Technology. She is also well-versed in woodworking
skills and competencies.
● Ms. Elaizah L. Arteta, The Supervisor is an Industrial Arts major with
a Bachelor of Technology and Livelihood Education. Ms. Arteta is a
businesswoman. Her experience and educational background have
honed her as a good businesswoman with her background and talents
in handling the operations of online business and marketing.

39
 ● Ms. Renadel Lazarte, The cashier is also an Industrial Arts major with
a Bachelor of Technology and Livelihood Education. Ms. Lazarte is
reliable when it comes to handling money and running a business.
With her prior experience in finance and accounting, she is well-versed
in her profession.
● Mr. Regie Orville Ymbol, The wood craftsman is also an Industrial
Arts major with a Bachelor of Technology and Livelihood Education.
Mr. Ymbol is a competent designer who thinks outside the box. He
manages the production process and is honing his woodworking
talents, with a background in woodcrafts and construction. Also, Mr.
Ymbol is assigned to the delivery of orders for the customers.

Because of their BTLED-Industrial Arts and full participation in the firm, all
proprietors are directly trained in woodcrafts, carpentry, and entrepreneurial abilities.
The proprietors have also received safety training 1 on the many do's and don'ts of
the workplace. In addition, the owners are young and imaginative when it comes to
combining technology and modern hardwood designs in their products.

2. Personnel
CYAL Woodcrafts & Décor as a small business entity is in need of a
limited number of persons such as the following:
○ Woodcraft personnel

● The woodcraft personnel should have the following skills and qualifications:
■ A senior high graduate who has expertise and specializations
under the carpentry track specifically furniture makers.
■ Must have a TESDA competency related to carpentry and arts &
crafts
■ Must be 18 years old and above
■ Willing to learn and work under pressure.

40
 ● Specifically, he/she must have the following wooden craft skills:
● Well-versed in planning designs, establishing the size of wood
portions, estimating wooden crafts requirements and costs, and
ordering supplies.
● Highly experienced in performing woodworks quality inspections to
ensure that all woodcrafts items conform to safety and hygiene
standards
● Competent at creating designs with the right measurements of
woodcuts according to weight and type of the specific product.
● Highly experienced in performing preventative and general
maintenance on carpentry and woodworking tools and equipment.
● Hands-on experience in handling woodworking staff efficiently and
directing it to ensure handling of kitchen functions
● Track record of following best hygiene and sanitation practices aimed
at providing quality food services
● Able to maintain accurate inventory and records of wooden crafts,
supplies, and utensils
● Committed to maintaining clean woodwork tools and
equipment and work area.

Employee Benefits
The main reason for providing perks to our employees is that we
recognize their strong work performance and want to reward them for it.
Employee benefits are designed to strengthen the financial stability of
CYAL employees and, as a result, improve employee retention throughout
the business. As a result, it is a part of reward management.

SECTION IV: FINANCIAL DATA

41
 1. Sources and Application of Funding

CYAL woodcrafts and décor as a small business entity will also require a
small starting capital. Since proponents are members of the most trusted
cooperatives in Mindanao, proponents will secure financial assistance from
Cooperatives.

The proponents will apply for a multipurpose loan or business capital loan
which will be used for the following purposes:

∙ Purchase of woodworking tools and equipment, crafting materials, furniture

and fixtures, and office supplies.

∙ Purchase of raw materials for the starting operations of the business.

Proponents are “MSU-IIT National Multi-Purpose Cooperative (COOP)” in

the cooperatives where they have invested their money, the proponents will be
allowed to loan a bigger amount depending on their share capitals and savings.
No collateral requirements are needed and only their paying capacity and shares
will be used as a basis for the approval of the amount they have applied.
Moreover, the maximum loanable amount of the proponents when added together
will suffice the amount of money needed to start the business.

2. Capital and Equipment List

For the business operations to run efficiently the following capital and tools
and equipment list will be necessary:

WOODWORKING TOOLS

Woodwork tools are those that are used to transform raw materials into
finished crafts by cutting, finishing, assembling, measuring, and holding wooden
42
 parts. From the beginning to the end, a variety of tools are employed in this
procedure. Each one has a distinct function and area of expertise. The one
cannot be substituted for the other. The most important instrument for creating
immaculate art is woodworking tools. Some tools are so essential that you'll find
them in practically every woodworking shop.

Table 12. List of WoodworkingTools

WOODWORKING TOOLS

MATERIALS QUANTITY SOURCE UNIT TOTAL COST

COST

Hand saw 2 pcs Industrial ₱200.00 ₱400.00

Center or
Hardware

Steel tape 3 pcs Industrial ₱140.00 ₱420.00

measure Center or
Hardware

Claw hammer 2 pcs Industrial ₱200.00 ₱400.00

Center or
Hardware

Screw 1 set Industrial ₱300.00 ₱300.00

Screwdriver Center or
Hardware

Chisel 3 pcs Industrial ₱180.00 ₱540.00

Center or
Hardware

TOTAL ₱2,060.00

WOOD EQUIPMENT

CYAL Woodcrafts & Décor is a woodcraft business that will require small
equipment for making round holes or driving fasteners. A power drill is necessary

43
 to make holes since it is an electrical motor that rotates a replaceable drill bit to
make a hole in wood, plastic, or metal.

Table 13. List of WoodEquipment

WOOD EQUIPMENT

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Power or 1 Unit Industrial ₱1,500.00 ₱1,500.00

Electric Drill Center or
Hardware

TOTAL ₱1,500.00

OFFICE SUPPLIES AND MATERIALS

Supplies are items that aren't critical to the operation but are required at some
point for other reasons. Other items should be required to keep track of sales,
44
 spending, and other transactions throughout the day. The following is a list of the
items and their related amounts.

Table 14.List of Office Supplies and Materials

OFFICE SUPPLIES AND MATERIALS

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Bond Papers 2 Rims Educational ₱472.00 ₱944.00

Supply
Stores

Ballpens 1 dozen Educational ₱60.00 ₱60.00

Supply
Stores

Pencils 1 dozen Educational ₱80.00 ₱80.00

Supply
Stores

Calculators 2 Units Educational ₱350.00 ₱700.00

Supply
Stores

Carbonized 2 pads Educational ₱20.00 ₱40.00

Receipt pad Supply
Stores

TOTAL ₱1,824.00

CLEANING MATERIALS AND SUPPLIES

A list of cleaning materials and supplies must be acquired to ensure that the
store premises are kept clean and safe in the long run. The cleaning materials and
supplies are listed in Table 15.
45
Table 15: List of cleaning materials and supplies.

CLEANING MATERIALS AND SUPPLIES

MATERIALS QUANTITY SOURCE UNIT COST TOTAL COST

Brooms 2 pcs Department ₱80.00 ₱160.00

Stores

Broom Sticks 2 pcs Department ₱20.00 ₱40.00

Stores

Dust Pan 2 pcs Department ₱50.00 ₱100.00

Stores

Disinfectant 1 gallon Department ₱280.00 ₱280.00

Alcohol Stores

Trash Bins 2 pcs Department ₱99.00 ₱198.00

Stores

TOTAL ₱775.00

FURNITURE AND FIXTURE

Because our firm is merely a walk-in, furniture and fixtures are not really
important objects in the business premises; however, tables and chairs for
office workplaces are among the items on the list.
46
Table 17. List of Furniture and Fixture

FURNITURE AND FIXTURE

Office Desk 1 Unit Furniture ₱1,780.00 ₱1,780.00

Shops

Office Chair 3 Units Furniture ₱500.00 ₱1,500.00

Shops

Wooden Square 1 Unit Furniture ₱1,200.00 ₱1,200.00

Table Shops

Wooden Stool 3 Units Furniture ₱250.00 ₱750.00

Shops

TOTAL ₱ 5,230

PRE-OPERATING EXPENSES

One of the business's incurred expenses will be the registration of the

business. Because the proponents will need to visit sites for probable business
locations and will have to contact others who are involved with the firm,
transportation, and communications expenditures will also be included. The costs
of drafting the business plan and starting the business are listed below.

Pre-Operating Expenses

Registration Cost - ₱ 500.00

Survey Cost - ₱ 300.00
Transportation Cost - ₱ 250.00
Electricity - ₱ 600.00
TOTAL Pre-operating Expenses- ₱ 1,650.00

47
LIST OF CAPITAL REQUIREMENTS OF THE BUSINESS

Starting the first business operations will require the needed capital
requirements for the business. CYAL woodcrafts and décor will be needing the
total capital requirement of ₱41,679.00 or approximately ₱50,000.00.

CAPITAL REQUIREMENT VALUE/COST

Furniture and Fixtures, Office ₱ 5,230

Supplies, and Materials

Office supplies and materials ₱1,824.00

Cleaning Materials and supplies ₱775.00

Tools and Equipment ₱3,560.00

Raw Materials (direct and indirect) ₱ 18,640.00

Pre-Operating Expenses ₱1,650.00

Rent ₱ 10, 000

TOTAL ₱41,679.00

48