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INTRODUCTION

All college students, regardless of their year level or degree program, need a certain amount of paper works before they complete their curricu lum requirements for graduation. The photocopying machine is one convenient way in situations such as failing to secure own notes during classes, hesitating to carry loads of books for research or producing lengthy hand -outs needed for examinations. Moreover, computer printers are important for students who are taking up research or thesis subjects. Adding to that are the numerous reflection papers, reaction papers or case studies for other courses. Indeed, a students life is never complete without a bunch of papers for all sorts of subject matter. On that note, the group decided to plan for a busin ess dealing with copying, printing and compiling services, called CKRM Copiers. As students, we are aware of the importance of this type of service especially during requirement periods. Whether it is for a major course or a minor subject, paper requiremen ts comprise an essential part of the final grade. Prompt submissions of these paper works would at times save a student from getting a 0.0 from a professor. Also, these requirements are at times critical for students who need adjustments in their grades. M ost importantly, a fully-made paper work is a major requirement for any bachelor degree in their thesis courses prior to graduation. A business plan is study for a prospective business undertaking to set certain goals, to discuss the allocation of resources and to prepare for possible problems and opportunities. Business planning is important for any potential entities because it gauges the feasibility and marketability of the products or services to be rendered by the business. It also serves as the frame work for the actual operations of the

business. Without a business plan, there will be difficulties in handling unexpected situations or market failures. Our group devised an outline for the business plan which is best suited for the photocopying and printing services. The first part, project rationale, will discuss the background and industry overview of the business. Marketing plan will involve supply and demand analysis, pricing, distribution and other market de velopments. Business ownership will include background on the owners, personnel strategies and other administrative policies while the business summary will tackle the technical aspects of the business. Finally, the financial study will present the financial assumptions and project financial state ments for the first one month of the business cycle.

Project Rationale

Papers are the basic contrivance for students to meet certain requirements at school. Although the rise of modern technology equated to use of e -mail and other web services, communications through paper works are still dominant especially in college. CKRM Copiers will offer a one-stop shop of all the needed processes in making such paper requirements. From printing the documents, binding the hard copies and producing more copies, all these will be provided by the business. We have chosen this type of business because it is not difficult to initiate. There just have to be enough funds for the purchase of equipment like printers, copiers and binders. Aside from that, there are no complic ations when it comes to the operations of the business. Also, the personnel requirements are also minimal compared to other types of business. Lastly, this is business which is close to the needs of the students so it is assured of feasibility and marketab ility.

Marketing Plan

Since the business offers printing, photocopying and binding, its target customers are the students and some employees who need those types of services. It will cater both low-end (those who will purchase small amounts of the service) and high-end (those who will order in bulks) c ustomers. The means in reaching the customers is through direct services. Hence, the business shall be established near a commercial area, specifically De La Salle University, for convenient access for the customers. The equipment will be needed for the i nitial run of the business are photocopying machine, desktop computer set with printer and binding machine. Since the business is still starting, it will purchase one unit of each equipment and use the future income to buy more equipment. Other supplies wh ich will be needed are ink cartridges, bond papers of various sizes and binding paraphernalia. These supplies will be purchased in bulk orders from local shops for affordability. To determine the prices of the services, the group observed the prices from other businesses. For student -friendly and reasonable prices, printing will cost Php 2 per page for pure text while colored printing will range from Php 5 to 20 depending on the amount of color in the page. Ring binding will cost Php 30 for a maximum of 20 pages. An additional Php 5 will be allotted for every 10 pages in excess. For the photocopying services, 0.60 centavos will be the price per page for both short and long bond paper. The entity caters a service which is essentially needed by students and employees. Hence, there will be minimal allocation for promotions or advertising. The reasonable prices and quality services will be the key for the marketability of the business in the first months of operations.

Company Summary

CKRM Copiers, soon to be located in Vito Cruz at the University Mall near De La Salle University, will offer the community easy, affordable and fast access to printing, photocopying and ring binding. CKRM Copiers will appeal to individuals of all ages and backgrounds. The availability of the helpful and pleasant staff that CKRM offers will aid the customers with their uttermost ability. The location of the business will aim the students near De La Salle University to have a convenient access for our services. The business will focus on three basic services: printing, photocopying and ring binding. Printing will include black and white, colored and graphics printing. Photocopying will, at first, be laser -based but will expand to other types of copying as the business grows. Ring binding will take account of different amounts of pages as well as various colors for the front page. Bulk services for printing and photocopying will be accepted provided that the customer agrees to wait for three days.

Company Ownership

CKRM Copiers is a business that is owned by the partnership of four students from De La Salle University. The shares and profits of the company will always be divided into 4 ways as part of the agreement of the students. The form of ownership in the business will be partnership, which will be composed of the four members of the group. Equal responsibilities will be divided among the members such as in financing, logistics and operations. The starting capital will also come in equal contributions from the members. For the first run of

the business, it will hire one employee which will be enough to serve the customers. Each of the four business owners will take charge in handling the operations using a specified schedule. Administrative policies and programs for the will not be formally induced as the four owners will have personal deliberations in making business related decisions.

Financial Plan

Start-up Funding Financing is required to begin work in site preparation, equ ipment purchases and to cover expenses for the first three months of operations. The companys start up fund was Php 70,000. Each student will contribute Php 17,500.00 to fund the business from their personal savings. Some members will also contribute personal computers and printers as personal investment. Cash Equipment CKRM, Capital Php 70000 73750 143750

CKRM Copiers start-up costs will cover the supplies, printing and book binding equipment, rent , capital to cover losses in the first six months, and Utility expenses. The printing equipment is necessary to provide the customers with a highspeed and quality printing to the required format of the customers. The allocation of the costs will be designated for the purchase s of printers, ring-binding machine, scanner, and the photocopying machine. In addition, costs will be allocated for the purchase of office furniture and store expenses.

Start-up Expense Details:


y

Two computers = Php 33,000 (from personal investment, Acer Aspire M1830

Intel Pentium Dual Core E5700 Desktop CPU - Visual, practical appeal)
y y y

two printers = Php 7750 (from personal investment, HP Deskjet D2260) one scanner = Php 1500 one ring-binding machine = Php 3750 (MicroTek ScanMaker 3840

FlatBed Scanner)
y Supplies o Bond Papers = Php 2,500 o Photo Papers = Php 4,670 o Ring-binding Materials = Php 2000 y Rent = Php 10,000 y Utility Expenses = Php 30,000 y Xerox Machine = Php 33,000 (from personal Investment, Phaser 680)

 Taxes and licenses= Php 15,000

Projected Profit and Loss Salaries Expense: For the first months of the business, one employee will be hired with a rate of Php 400 per day. The employee will work five days a week, covering Mondays to Fridays only. Utilities Expense: This will include utilities such as electric bills, garbage disposal and water bills. Since the business will use several el ectric machines, the utilities expenses for a month will be estimated at Php 30,000. Depreciation Expense: The computer s and photocopying machine s will be depreciated over a seven-year period with no salvage value. On the other hand, the

ring binding machine will be depreciated over a three -year period also without a salvage value. Two computers, printers, scanners Estimated useful life Annual depreciation Fractional period (monthly) Php 75250 7 10750 895.33

Ring-binding machine Estimated useful life Annual depreciation Fractional period (monthly) Total Depreciation Expense for One Month

3750 3 1250 104.17 1000

Taxes Expense: As prescribed by the Bureau of Internal Revenue, the business shall pay the percentage tax for services which are rendered in the course of trade. Also, the business will shoulder the withholding tax on the compensation of the employee. Supplies Expense: This will include the monthly usage of supplies such as bond papers, photo papers and ring binding materials. Rent Expense: This is the payment for the monthly rent of the space where the business will be located, which is estimated to be P 10000.

The projected income is based on the following financial assumptions: Printing fees Photocopying fees Binding fees Php 2000 per day (P 40000 per mont h) Php 1250 per day (P 25000 per month) Php 1250 per day (P 25000 per month)

Projected Income Statement

CKRM Copiers Income Statement For the month ending January 31, 2011

Printing Fees Photocopying Fees Binding Fees Total Service Income

P 40000 25000 25000 P 90000

Expenses Salaries Utilities Depreciation Taxes and Licenses Rent Supplies 8000 30000 1000 15000 10000 4000 68000

Net Income

P 22000

Projected Statement of Financial Position CKRM Copiers Statement of Financial Position As at January 31, 2011

ASSETS Current Assets Cash Accounts Receivable Prepaid Supplies Total Current Assets Noncurrent Assets Property, Plant & Equipment TOTAL ASSETS 78000 173170 P 60000 30000 5170 95170

LIABILITIES & OWNERS EQUITY Liabilities Accounts Payable Unearned Income Total Liabilities Owners Equity 143170 TOTAL LIABILITIES & OWNERS EQUITY P173170 10000 20000 30000