ASSUMPTION COLLEGE OF DAVAO

J.P. Cabaguio Ave., Davao City

Ensorceler Cosmetics INC.

___________________________________________

A BUSINESS PLAN
Presented to the Faculty of
Basic Education Department – Senior High School Unit of
Assumption College of Davao

___________________________________________

In Partial Fulfillment
Of the Course Requirement for the Subject
APP 6 - ENTREPRENEURSHIP

Presented to:

MARCEL M. SALAGUSTE
Instructor

Presented by:
DONDE, MICHELLE ANNE
LAGULAO, LAICA
LONGAKIT, ALLYSA
REYES, DIANNE JANE
VALENZUELA, KIMBERLY
XI - Abigail

1
 December 2021

TABLE OF CONTENTS

Title Page …………………………………………...……………………………………………….…………………1

Table of Contents …………………………………….……………………………………………….……………2
Executive Summary …………………………………………………………………………………………………….5
Vision/Mission Statement and Goals ………………………………………………………………….
A. Vision Statement
…………………………………………………………………………………………
6
B. Keys to Success
…………………………………………………………………………………………7
Company Summary
………………………………………………………………………………………………
……...
A. Company Background …………………………………………………………………………….9

B. Resources, Facilities and Equipment ……………………………………………………..9

C. Ownership Structure …………………………………………………………………………..10

D. Social Responsibility …………………………………………………………………………11

E. Internal Analysis …………………………………………………………………………12

Marketing Plan ……………………………………………………………………………………………………..

A. Marketing Assessment ………………………………………………………………………………14

B. Customers …………….……………………………………………………………………………………

C. Marketing Strategy …………………………………………………………………………………….15

Products and/or Services ………………………..……………………………………………………………19

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Strategic Implementation ………….…………………………………………………………………………

A. Production …………………………………………………………………………………………………21

B. Resource Needs ……………………………………………………………………………………..22

C. Sourcing/Procurement Strategy ………………………………………………………………23

D. Performance Standards …………………………………………………………………………24

Organizations and Financial Plan
………………………………………………………………………………

A. Management and Organization

………………………………………………………………26

B. Loan Request
………………………………………………………………………………………
28

C. Financial Projections

…………………………………………………………………………..31 Strategic

Alternatives

………………………………………………………………………………………….

A. Contingency Plan ………………………………………………………………………………………36

Appendixes …………………………………………………………………………………………………………………

A. Opportunity Metrics ………………………………………………………………………………………

37

B. Resumé …………………………………………………………………………………………………….……...44

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 Ensorceler Cosmetics

Shopee: https://shopee.ph/ensorcelercos.ph

Lazada: https://s.lazada.com/ensorcelercos.com

Sephora: https://www.sephora.ph/ensorceler

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 Mobile number: (0916)-162-1989

Telephone number: (22)0-085

Instagram: @EnsorcelerCosmeticsOfficial

Tiktok: @Ensorceler_official

Youtube: @Ensorcelercosmetics

Executive Summary

Ensorceler, from the French term to enchant or to bewitch has a mission to

celebrate everyone’s genuine self. Selling cosmetics and skincare products that

is affordable and high-quality without creating boundaries to every person’s

differences. Founded by empowered young women who has a dream of

changing the industry of cosmetics that was formerly linked to violence and

abuse. The brand has a vision to be the world’s most humane cosmetic brand,

making profit while taking steps for a change. Ensorceler will be very active in the

community and publicly support organizations that protect animals from cruelty

and abuse.

The company will also help the Bahay Pasilungan, home of street boys in Davao

City.

Ensorceler will be a private corporation. Funded by their founders and

shareholders. The company will offer a membership base program that will allow

members to purchase products with a discounted rate. The membership program

will be called “Amortentia” which is the most powerful love potion in existence.

5
Each member will be given a card and a pink scented candle. This will help the

brand create awareness and its product to be spread. Products will be based on

a specific theme. The brand will first release aesthetic-themed cosmetics and

skincare lines that will satisfy every person’s preference. Furthermore, this

company is the product of the founders’ creativity and dreams. Together, “We will

Ensorceler!”

Vision and Mission

Vision

To be the world’s most humane and cruelty-free cosmetics brand. To

promote and help the country’s economy and to be acknowledged as a great

example to other brands in the industry to stop the use of animal testing and child

labor. To be known as a diverse brand that does not tolerate any discrimination

towards one another. We aim to be acknowledged as the industry’s game

changers and to produce quality and affordable cosmetics for all.

Mission

We, the good entrepreneurs, are very dedicated to produce, design and

develop cosmetic products with a purpose of change, and to celebrate

everyone’s true identity and individuality. To produce products that will make

clients go wonderstruck and charmed. In short, we will “Ensorceler”.

6
Keys to Success

“Entrepreneur is someone who has a vision for something and a want to

create.” To succeed, one must not say “I can’t” but must say “How can I do it?”

To achieve the goals of Ensorceler Cosmetics Incorporated, the young

entrepreneurs will stick to their mission, vision, and keys to success.

The first is putting all faith in God the father. Letting all of the worries and doubts

in his hands and knowing that he is good, merciful, and almighty.

Second, put all faith into action. The prayers will not be achieved if action is
absent.

The entrepreneurs will live by these values and will be working as hard as they

can to achieve the company’s goals.

The third is to be positive and hopeful at all times. There will be a time of loss and

problems, but thinking positive and always looking at the bright side will help the

entrepreneurs not lose a vision of what their goal is. Being positive will also help

avoid arguments.

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And lastly, be creative at all times. This company focuses on beauty, colors, and

designs. Destroying boundaries is the primary mission of the company, thinking

and developing new products, new trends, new shades, and new meaning of

beauty, that is highly needed.

Faith, hard work, determination, and creativity are the keys and values that will

pave the way for the success of Ensorceler Cosmetics INC.

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Company Summary

A. Company Background

Ensorceler cosmetics INC will be selling cosmetics and skincare products

that will celebrate everyone’s true identity. Founded by young empowered

women that has a vision to change the industry’s game in terms of producing

quality and cruelty free cosmetics. This company is a corporation whose

promoters are Ms.

Donde, Michelle, Lagulao, Laica, Reyes, Dianne Jane, Longakit, Allysa, and

Valenzuela, Kimberly. The company was idealized last August of 2021 by the

promoters and they are now planning to launch their products in 2023 after

completing all the legal terms needed before forming a corporation.

B. Resources, Facilities and Equipment

Ensorceler will be outsourcing to an FDA-regulated cosmetics

manufacturer here in Davao City. Ensorceler will be formulating its products by its

consistency, color, and fragrance to maintain its ownership of the formulas of its

products so that, in the future, if the company decides to change its

manufacturer, it can have full ownership of its products. Ensorceler will pay its

manufacturer the sample and production fees.

The primary source of the financial needs of the company is the

shareholders. The primary skills needed in the company are professionalism,

creativity, and management skills. The Human Resource team will be managing

9
the employees making sure that the company will have enough skilled

employees.

Ensorceler will make sure to give its employees great benefits and salaries. With

what do you produce your products or services?

C. Ownership Structure

The primary stakeholders of Ensorceler are its first founders. Ensorceler will

be a private corporation. The five founders will also act as the promoters to set-

up the business. The promoters will make sure to follow the legal steps in forming

a corporation. Ensorceler will sure follow the Corporation code of the Philippines

and will subscribe the 25% of the authorized shared capital to the Securities and

Exchange Commission (SEC) before starting. After receiving the Certificate of

Incorporation issued by the SEC, Ensorceler will elect its board of directors.

Corporate officers will have a President, Vice president, Secretary, Treasurer and

an Auditor. Ensorceler can start its operation 2 years after the certificate is

issued.

There are plenty of special permits needed to operate like registering the

business to the Barangay, Mayor’s office and the Bureau of Internal Revenue

(BIR). Ensorceler will be hiring employees so the company must also register to

Social Security System (SSS), Philippine Health Insurance Corporation and

Home Development Mutual Fund.

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D. Social Responsibility

Ensorceler is a company that has a vision for change. The company helps protect

the environment by not using plastic for the product’s packaging. The company

will be maximizing glass containers for their lip kits, lip glosses, mascara, etc.

Employees are safe from dangerous chemicals, for the company will be

outsourcing to a legal manufacturer.

Ensorceler will be very active in the community and publicly support

organizations that protect animals from cruelty and abuse. The company will also

help the Bahay Pasilungan, home of street boys in Davao City. Ensorceler has a

soft heart for street children and child laborers for they are the victims of the cruel

beauty industry. Moreover, Ensorceler Cosmetics will be a brand that supports

the equality act. Starting with our marketing strategy, the company will not set

boundaries for any gender. The company will not be discriminating against

employees and customers of any race, style, or gender. Ensorceler will commit to

its mission; "To celebrate your genuine self."

Ensorceler Cosmetics’ employees will receive training and Beauty Care

classes; The company needs its employees to know the beauty industry well.

Management training and teambuilding events are conducted annually to train

and remind its employees about the vision, mission, and goals of Ensorceler.
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E. Internal Analysis

Ensorceler cosmetics offers quality and affordable cosmetics and skincare

products for all. Amidst the gender stereotypes of society, products will be

marketed and sold to our valued customers without boundaries that separate any

gender. Products will also be aesthetically themed. For again, Ensorceler’s

mission is to celebrate everyone’s genuine self.

Strengths The business produces quality and

affordable products and is cruelty free,
from animals and children.
The business highlights a specific goal
to celebrate each and everyone’s
uniqueness.
The business is very attractive to Gen
z
The business offers a set of cosmetics
for each aesthetic of an individual,
whether they prefer a neutral aesthetic
or grunge aesthetic and many more.
It is FDA regulated.
Weakness Cosmetic brands have a lot of
competitors.
Sometimes products don’t come as
what the advertisement promised The
brand relies on a manufacturer to
produce its products.

Opportunity If the brand is advertised or promoted

by a well-known influencer or
celebrity, the business can rise to the
top of the game

If the entrepreneurs will join business

class and will know how to allocate
and use resources more than it can be
useful to the business.

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 If the entrepreneurs release more
unique products that are not offered
by other brands

Threats Threats are if other brands decide to

go cruelty free and offer the same
products that we offered but at a
cheaper price.
If other famous brands will hire more
exclusive and popular celebrities or
influencers to promote their products.
If the brand will face ownership
problems with their products since
they are outsourcing to a third party
manufacturer

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Marketing Plan

Market Assessment

Cosmetic merchandise is considered essential by the majority of the

people. Lip tints, lip gloss, and lipsticks are sold through clients extra or much

less regularly relying on their desires. Cleansers, face masks, and serums also

are sold to people on a month-to-month basis. Ensorceler satisfies the desires of

clients through generating an extensive variety of quality products so one can

satisfy their preferences. The marketplace may be segmented into a few

classifications. One of them is psychographic segmentation, wherein the

marketplace is classed consistent with lifestyle, motives, and personality. For

again, Ensorceler has a venture to supply products so one can rejoice in

everyone`s individuality and genuine self.

Through the selected segmentation, there may be a massive

possibility of growing new merchandise, staying on trend, and producing large

profits. The opposition to this enterprise may be very difficult. One of the

company's fundamental competition are groups like BLK cosmetics, Vice

cosmetics, and Colourette Cosmetics which are nearby cosmetics groups within

side the Philippines. In the cosmetics enterprise, maximum groups have a

selected target audience, which is composed mainly of women of various ages,

occupations, cultural backgrounds, and preferences. However, Ensorceler

Cosmetics is generating commercials and merchandise that actively oppose the

14
concept of setting apart the women's, men`s, and non-binary`s markets in

product choice and use. Starting this kind of business may be difficult for there

may be a protracted listing of licenses and legal processes that one has to

undergo earlier than subsequently calling it a success.

C. Customer Analysis

The brand positioning of Ensorceler implies that the brand offers

high quality cosmetics which are made with natural ingredients and is free from

any type of cruelty. The brand also produces bright, scented, and unique

products that will fit in every person’s unique characteristics. The customers are

segmented into Psychographic segmentation which considers lifestyle, motives,

and personality. This includes the following:

a. People who use hygiene products

b. Traditional customers

c. New entrants

d. Beauty gurus

e. Environmental, and human activists

These five markets are the company’s potential customers and require regular or

monthly products.

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 The people who use hygiene products are those who enjoy performing

skin care routines. They use serums, cleansers and moisturizers daily.

Traditional customers are media-influenced people, but they always check their

financial availability. They stay on the trend, but prefer much cheaper products of

the same quality. New entrants are mainly teenagers who are beginning to

explore the beauty industry. They are interested in using different products based

on their claims and campaigns. Beauty gurus are people who spend most of their

time watching makeup tutorials and reading cosmetology blogs. They do not

hesitate to invest their money in beauty care. Finally, environmental activists and

human activists are a group of people who are very actively involved in

environmental issues, human rights and positivity. They always check the brands

they are using if they are not against what they are fighting for. The Ensorceler

campaign is primarily aimed at young people, the so-called GenZ, who are

actively involved in social issues.

Customers can buy high-quality products made with fresh and natural

ingredients. The brand also promotes a better meaning of cruelty-free products.

That will help solve the ongoing problem of child labor in the Philippines. The

brand will give a choice to people who also want to support the environmental,

human rights, and beauty industry at the same time. With this campaign, it will

not be a challenge to retain customers. However, direct competitors can still be a

threat.
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Marketing Strategy

Ensorceler is a company focused on selling cosmetics and

skincare products. The target segment are people who use hygiene products,

new entrants, traditional customers, and beauty gurus. Our products will range

from 50100 products. Cosmetics like lipsticks, lip gloss, eye liner, eyeshadow,

foundation, skincare products, etc. The company will offer a membership base

program that will allow members to purchase products with a discounted rate.

The membership program will be called “Amortentia” which is the most powerful

love potion in existence. Each member will be given a card and a pink scented

candle. This will help the brand create awareness and its product to be spread.

New products will be released every season. Products will be based on a specific

theme. The brand will first release aesthetic-themed cosmetics and skincare lines

that will satisfy every person’s preference. The brand will release a Soft-aesthetic

motif with pastel colors, Cottagecore aesthetic motif with nude palettes, Fairycore

aesthetic which will have soft pastels palettes, butterflies and glistening lip kits,

and lastly a Grunge aesthetic motif which will have darker shades palettes and

punk style packaging. The brand will be having an official YouTube, Instagram,

and Tiktok account. The social media channels will be filled with product

endorsements, make-up tutorials, and beauty talks. Product packaging will be

one of our top priorities. Products will be put in a glass container with witchcraft

designs that matches Ensorceler Cosmetics’ theme. The use of plastics and
17
other hazardous materials will not be practiced. The company will stick to its eco-

friendly campaign.

Ensorceler will be a web-based company. However, products

are also distributed to department stores, Watsons, and Sephora Philippines. The

company will also be using an open market strategy. Ensorceler will be using

costbased pricing, the price of the products is directly affected by the cost of

making it. The company still ensures an affordable price.

Ensorceler will be managed by its corporates. The company will

be hiring accommodating and well trained employees. Moreover, the company is

open to hiring student workers and newly graduates.

Nonetheless, Ensorceler will be a great company that not only

gains profit but will also be remembered by the public for its outstanding

campaigns, charitable works, and good products.

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Products and/ or Services

Ensorceler is a company that focuses on selling cosmetics and

skincare products. 50-100 is the range of our products. Cosmetics like lipsticks,

lip

gloss, eyeliner,

eyeshadow,

foundation, and

skincare products like

face masks,

serums, toners, and

sunscreen are

produced. The

company practices its ecofriendly campaign. The use of plastics and other

hazardous

materials will not be practiced. “A better meaning of cruelty-free” is the

company’s main campaign. The company also planned a marketing strategy that

goes with

the trend. Products will

be produced with an

aesthetic motif, soft,

cottagecore,

grunge, and
fairycore.

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 Our products are extremely pigmented and last a long time on the

skin, giving

the impression that you aren't wearing any makeup at all. Our products are of

excellent quality, yet they are also quite reasonable. We want our consumers to

be happy with their purchases and to believe that it was worthwhile to spend

money on our products. Ensorceler currently does not have a physical location.

We only have a web-based store.

All in all, our products have many benefits, in our skin and our

environment. It is also affordable especially for teenagers who want to be more

confident with their skin, and for them to feel aesthetically beautiful since our

customers can choose aesthetics in our motif that suit their preferences.

Strategic Implementation

A. Production

Ensorceler is meticulous when it comes to production. The company will

follow steps and concepts on producing its products. It will also hire professionals

and trustworthy employees to ensure that its product is reliable and safe. A

20
manufacturing company that is FDA-regulated will make the line’s products.

However, the company will be customizing the products according to color,

shades, consistency, and fragrances. Moreover, Ensorceler will make sure to

keep the ownership of its products.

Ensorceler will capture value with its product by taking feedback from its

customers and consumers; to create value for improved merchandise that fits its

market. Moreover, it will also ensure that our products are affordable.

Ensorceler Cosmetics’ competitive advantage is the relationship of its

products to its customer’s aesthetic and the latest trends. The company is proud

of its eco-friendly campaigns that can help the environment. Moreover, the

current generation is also fond of brands that care.

In creating prototypes, the use of high-technology machines and

equipment is present. However, since the company will be sourcing to a cosmetic

manufacturer, big and heavy machines will not be needed.

Internal processing is the process of making the products. Furthermore,

Ensorceler will be making its product within their chosen manufacturers.

Therefore.

The production of our products is not visible to our customers.

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 B. Resource Needs

a. Human

Communication and negotiation skills are necessary. Effective negotiations

and communication skills help resolve or avoid conflicts and maintains good

relationship with customers. Next are organizational skills, like time management,

problem-solving, and management skills are needed. The company needs

professionalism and integrity in its human resource. Ensorceler will be

implementing HRP or Human Resource Planning to avoid employee shortages

and maintain adequate number of skilled workers.

b. Financial

Shareholder’s capital will be the primary financial resource of the company.

The bank will be the company’s second resource. Ensorceler will need to loan

cash from the bank. The borrowed cash will be utilized for the production cost of

the company’s merchandise.

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 c. Physical

The business will start with a web-based store. However, the company will

have a warehouse or stockroom for its products. Machines and equipment like

printers and computers are required. Moreover, office and stationery supplies are

also needed. Ensorceler will be utilizing online shops like Shopee and Lazada.

Product distribution to Watson's drug store and Sephora Philippines is a plan.

C. Sourcing/ Procurement strategy

Ensorceler will base on quality and price in buying or choosing its supplier.

The company will be outsourcing manufacturing to a third party. To protect the

value of the company's cosmetics, the company will be the one that customizes

the formulation of the products so that Ensorceler will maintain the ownership of

the products. Whenever the company wants another manufacturer, the products

are not affected.

D. Performance Standard

Ensorceler cosmetics is a company that values both beauty and kindness

towards all creation. The company ensures to produce and sell high quality and

affordable make-up to each individual to celebrate their true self and uniqueness.

The company chooses its employees by their character, job attitude, and skills.
23
Ensorceler is open in hiring individuals disregarding their race, religion, and

gender. Thus, the company ensures that their employees knows the company’s

vision, mission, and goals by mind and by heart.

In every purchase of the product, the company will ask customers for a

rating and feedback. This features are available in some online shops like

Lazada.

Furthermore, the official social media page will also listen to customer’s feedback

and reaction to know how we can improve our products. In today’s generation,

beauty gurus and influencers are fond of product testing and rating, specifically

on

Tiktok. Once a product is approved by a beauty guru, then there’s a high chance

of it selling out. Hence, social media is a great way to measure the company’s

performance.

The person who will be in charge of Ensorceler Cosmetics’ performance

will be the head manager. The manager’s job is to assess and manage the

employees and the marketing department. The manager will give a quarterly

report to the stakeholders about the performance of the company.

This is Ensorceler Cosmetics INC service blueprint

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 DRUG STORE
SUPERMARKET

Ensorceler Cosmetics' warehouse

Ensorceler Cosmetic partner -SEPHORA PHILIPPINES

manufacturer -WATSONS

ONLINE SHOPS
-SHOPPEE
-LAZADA

Organizations and Financial Plan

A. Management and Organization

Ensorceler cosmetics INC, managed by its Board of Directors, consists of a

President, Vice President, Secretary, Treasurer, and Auditor. They will be in

charge of managing, creating rules and policies, and planning for the company.

Each team member took up Accountancy and Business Management

strand for Senior High School. They have a reputation for active participation in

25
environmental clean-up in their community; they support the "Save the Bunnies"

movement that urges the Beauty industry to stop animal testing.

The team’s special skills are their designing, management skills, and

knowledge about the Make-up industry. With these skills and knowledge, they

can come up with different and unique products that can be a new trend. The

additional skills the team needs are social skills, since most of the team members

are introverts, they need a person who’s comfortable with meeting new clients,

shareholders, potential partners, and investors. Moreover, the team seeks advice

and support from their family, peers, and professionals.

The people that make Ensorceler run are its founders, Board of Directors,

Shareholders, and its investors. Ensorceler cosmetics INC will be a place of

personal development of its people.

Ensorceler
Cosmetics INC

Board of
Directors

Shareholders Investors Partners

26
 B. Loan Request

A. Amount

The budget for Ensorceler Cosmetics is P1,000,000.00. Of that, the

five founders of the company, including the shareholders have raised

P650,000.00 cash for the capital, therefore, the founders need another

350,000.00 to launch the cosmetics company. The existing amount is

being used in the production of the products and paying the city and state

permits and licenses. The founders have paid the amount needed to have

a SEC certificate. Ensorceler Cosmetics will launch a year from now.

The money that the team is requesting will be used for the following needs:

• Stationery supplies and Equipment, P150,000.00- Ensorceler will

be home-based at the moment. However, we will be needing

stationery supplies and equipment like printers, computers and etc.

in packing our products before sending it to the delivery station. The

company will also need to purchase one Refrigerator and one air
27
 conditioner. The cosmetic products must be stock in a cool dry

place, while skincare and cream products must be stocked on a

fridge.

• Products samples fee, P150,000.00 Sample products are not for

free, Ensorceler needs to pay for the products samples, the

company wants quality and perfection in its products.

• Furniture, 50,000.00 Ensorceler will need desks, tables, and

shelves for storing products.

B. Repayment

Ensorceler Cosmetics INC is asking BDO for a loan of P350,000.00 to be

repaid over three years at a rate of 6%, making payments of P10,306.00 per

month.

Ensorceler estimated revenue is P20,000.00 a day with 30 operational

days a month. Therefore, the gross sales would be P600,000.00 after paying

staff and deducting the cost of sales. The company assures there’s much left to

pay the loan following its term.

28
 Ensorceler Cosmetics INC is asking BDO for a loan of P350,000.00 to be

repaid over three years at a rate of 6%, making payments of P10,306.00 per

month.

Ensorceler estimated revenue is P20,000.00 a day with 30 operational days a

month. Therefore, the gross sales would be P600,000.00 after paying staff and

deducting the cost of sales. The company assures there’s much left to pay the

loan under its term.

C. Collateral

Ensorceler understands the Collateral agreement for the purpose of

security trading of which BDO is involved as the creditor.

Therefore, founders of Ensorceler agreed to collect assets to use as their

collateral for the said loan.
Number Name Amount Collateral Name
1 Donde, Michelle P10,000.00 Insurance

2 Lagulao, Laica P1,262,800.00 110sq m Commercial lot

R.Castillo Davao City
3 Longakit, Allysa P15,000.00 Savings Account
4 Reyes, Dianne P1,800,000.00 2020 Toyota Hilux 2.8
Jane 4x4 MT
5 Valenzuela, P25,000.00 Savings Account
Kimberly

The total assets used for collateral is P3,112,800.00 which can cover the desired

loan amount of the party.

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 D. Financial Projections

Ensorceler Cosmetics INC goal is to operate and gain revenue for a long period

of time. The company will monitor the financial performance with financial

statements like Income statement, Balance Sheet, and Cash flows.

Ensorceler Cosmetics INC

Income Statement

For the year ended December 31, 2023

Gross Sales P3,600,000.00

Less: Sales Returns & Allowances P 75,000.00

Sales Discounts 25,000.00

Net sales P 3,500,000.00

Less: Cost of Sales 550,000.000

Gross Profit P 2,950,000.00

Less: Operating Expense 200,000.00

Net Income before tax P2,750,000.00

Less: Tax 75,000.00

Profit P2,675,000.00

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31
 Ensorceler Cosmetics INC

Balance Sheet

As of December 2023

Assets

Current Assets

Cash and Cash Equivalents P 850,000.00

Trade Receivable 252,000.00

Inventories 250,000.00

Prepaid Expense 75,000.00

Other current Assets 100,000.00

Total Current Assets P 1,527,000.00

Non-Current Assets

Available-for-sale Financial Assets P 550,000.00

Investments in Associates 350,000.00

Property, Plant, and Equipment 250,000.00

Intangible Assets 100,000.00

Total Non- Current Assets

1,250,000.00

Total Assets P 2, 777,000.00

32
Liabilities

Current Liabilities

Trade and other payable P 15,000.00

Accrued Expense 20,000.00

Statutory payable 25,000.00

Current Income tax payable 35,000.00

Total Current liabilities 95,000.00

Non-Current Liabilities

Bonds Payable 33,000.00

Notes Payable 100,000.00

Loan Payable 350,00.00

Total Non-Current Assets P 483,000.00

Total Liabilities P578,000.00

Shareholders’ Equity

Share Capital

8% Preference Share- P50 par, 500 shares authorized

3,000 shares were issued and outstanding P150,000.00

Ordinary Share- P100 par, 500 share authorized

33
7,900 shares were issued and outstanding 790,000.00

34
 Total Share Capital 940,000.00

Share Premium

Additional Paid in Capital- Preference Share 10,000.00

Additional Paid in Capital- Ordinary Share 29,000.00

Total Share Premium P39,000.00

Total Contributed Capital P979,000.00

Other component of Equity 870,000.00

Accumulated Profit (Loss)

Unappropriated or Free 350,000.00

Total Shareholders’ Equity P 2,199,000.00

Total Liabilities and Shareholders’ Equity P 2,777,000.00

 Ensorceler Cosmetics INC

Statement of Cash Flows

For the Month of December 31, 2023

Cash flows from Operating Activities

Cash received from clients P3,500,000.00

Payments to manufacturer 550,000.00

Payment of Salaries 75,000.00

Other expenses 125,000.00

Net cash provided used in operating expense P 2,750,000.00

Cash flows from Investing Activities

Payment to acquire Equipment 55,000.00

Payment to acquire furniture 40,000.00

Purchase of securities and other investments 60,000

Net Cash used by investing activities P 2,595,000.00

Cash flows from financing Activities

Proceeds from issuance of debt 35,000.00

Payment of debt 45,000.00

Dividends paid to shareholders 60,000.00

Net cash used by financing activities P 2,455,000.00

3536

Net Increase/ decrease of Cash P 2, 445,000.00

Strategic Alternatives

A. Contingency Plan

Before Ensorceler Cosmetics was idealized, the group came up with two

more business idea; a coffee shop and printing services. If the said plan cannot

be followed, the group will continue the next business idea that got the second

highest score in the Opportunity Attractiveness Test.

The group believe that the plan for Ensorceler will be successful. By the time

and measures that the group spent in planning the company, Ensorceler

Cosmetics INC will make its way in the industry.

One of the advantages of its business structure is the transferability of shares,

so death or leaving of any member will not dissolve the corporation. With

God’s grace Ensorceler cosmetics shall thrive and prosper.

Appendixes

A. Market – Opportunity Metrics

• Business Opportunity: Ensorceler Cosmetics

• Table 1 – Opportunity metrics for market potential
Industry or Highest Lowest Attractiveness
Market Pote Potential Descri Potential Descri
ntial ption ption Score
1. Market • Unclear market 4-
• Easily identifiable
Need marke t • Revenue just
one-time or We have an
• Potential recurring
seasonal easily
revenue from the
• Market unstable identifiable ma
market • Market-
rket
driven

a. Accessible Already stuck 4-

Customers with competitors Cosmetic
products are on
demand,
b. Payback Within one year or Three years or 3-
period less more
The group
thinks that it
will take time to
recover the
cost.
c. Value to Significant Insignificant 4-
customers
Cosmetic
products are
significant and
relevant.
d. Product • Durable or long • Perishable 5-
shelf-life • “Me too”
• New or • Cosmetic
innovative • Value Unreasonably products have
for money priced durable
and long shelf-
life

38
 e. Service Highly demanded Seasonal
2. Market • Emerging • Declining or 4
Structure stagnant Since new and
improved
products are
released every
season, the
business is
emerging.
3. Market • Established and • Unknown; 5-
Size clear undetermined
• Big enough for • Small The market
the size is big.
entrepreneur Considering
that the
products are
essential for
everyone,
regardless of
race and
gender.
4. Market • Easier and 4-
• Difficult and slow
Share faster market
market penetration
penetration It gives big
• Low potential in
• High potential in shares to the
maximization
maximization market
of
of and
market share
market share company.
percentage
percentage
Total 0.85
(Weight):
20%

• Table 2 – Opportunity metrics for financial feasibility
Industry or Highest Lowest
Market Pot Potential Desc Potential Desc Attractiven
ential ription ription e
ss
Score

39
 1. Net Income Robust Fragile; inconsistent 4-

Income
is fast.
2. Reasonable Unreasonable 5-
Capitalization capitalization capitalization
required required It requires
big but
reasonable
capital.

• 1 | Entrepreneurship
3. Capital Fast (e.g., 2 Too slow (e.g., 4-
Recovery years or less) 5 years)
Period The business would
take quite some time
but surely it can
recover.
Total 0.87
(Weight):
20%

• Table 3 – Opportunity metrics for competitive advantage
Industry or Highest Lowest
Market Pot Potential Desc Potential Desc Attractiven
ential ription ription e
ss
Score
1. Fixed and Cost-efficient Costly 4-
variable costs
It is cost-
efficient

2. Control Strong Weak 5-

over
prices, The
distribution, entrepreneur
and costs s are
the

40
 ones in
control.
3. Barriers to Difficult to enter No barrier(s) at all or 5-
entry easy to enter
The
business is
difficult to
enter.
a. Legal and Exclusivity None or unsecured 5-
proprietary
These
protection products
need to be
FDA
approved.

b. Response Competition is not • Tough 2-

and lead yet competition
time aggressive • Unable to The
gain competitive business
has a lot of
advantage competitors.
c. Networks Accessible and Limited access and 5-
close relationship requires
intensive relations The products
hip building are essential
therefore
it
attracts
people
Total 0.87
(Weight):
20%

• Table 4 – Opportunity metrics for management team
Highest Lowest
Industry or Potential Desc Potential Desc Attractiven
Market Potential ription ription e
ss

41
 Score
1. Fully dedicated, Undecided and 5-
Entrepreneuri driven, and united just testing the
al line-up waters The
entrepreneur
s are fully
dedicated.
2. Industry and Highly skilled and Weak 4-
technical experience background and
experience d in the industry experience in The
chosen the industry entrepreneur
chosen s are
experienced
in the chosen
industry,
since we are
an all girls
group.
3. Integrity and Highest degree of Questionable and 4-
concern to the integrity unsure
new venture and The
concern entrepreneur
s have high
integrity and
concern
4. Intellectual Willing to Unwilling to 5-
honesty understand understand
what they what they The
don’t know don’t know entrepreneur
s are
very
willing
to
learn
Total (Weight): 0.9
20%

• Table 5 – Opportunity metrics for assessment of personal
resources

42
 Industry or Highest Lowest
Market Pot Potential Desc Potential Desc Attractiven
ential ription ription e
ss
Score
1. Personal Has clear Goals unclear and 4
Goals and objectives and disconnected
Fit matches with to The
the entrepreneu the entrepreneur’s entrepreneur
r’s capacity and s have a
capacity and resources clear
resources objective to
succeed and
to maximize
given
resources.
2. Success or Propensity to Propensity to 5
Failure succeed high fail high
The
business is
most likely to
succeed.

• 2 | Entrepreneurship
3. Willing to sacrifice Contented with 4
Opportunity first a the status quo
costs better opportunity The
entrepreneurs are
risk-takers
4. Matches with the Ultimate 4
Desirability lifestyle and desire is only
preference of big returns The group
the entrepreneur consists of all
girls who adore
beauty products.
Making through
this industry is a
desire and
matches our
preference.

43
 5.Risk Calculated risks Undefined and 4
Appetite unknown risks
The
entrepreneurs
know and
understand the
risks.
6. Stress Can live Inability to 4
Management comfortably manage stress
with stress Stress is
the group’s
best friend.
Total 0.83
(Weight):
20%

• TOTAL SCORE: 4.32- Very Attractive

• Tiered Scale:
• 4.00 – 5.00 = Very attractive

• 3.00 – 3.99 = Attractive

• 2.00 – 2.99 = Tolerable but must take caution and due diligence of
the risks 1.00 – 1.99 = Not attractive or too risky

44
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