Business Plan (Group 3)

Business Plan
The Authentic Corner Inc.

Daro, Dumaguete City, Negros Oriental, Philippines
659-555-351
Group Members
Cardino, Andrian D. Galabasa, Jean Rose C.
Egera, Jay Ar B. Nene, Hannah Grace P.
Romano, John Paul E. Quinilitan, Zyra N.
Benigno, Florymel E. Reyes, Ma. Angelina N.
De los Reyes, Apple Diana L. Teves, Kate Andrei B.
Kadusale, Darian B. Yanoc, Medarly Amor C.
March 2022
DEPARTMENT OF EDUCATION
Schools Division of Negros Oriental
NEGROS ORIENTAL HIGH SCHOOL
Senior High School Department
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Table of Contents
Executive Summary...................................................................1
Background ................................................................................2
Vision-Mission ……………………………………………………………………... 2
Description of Products......................................................................3
Market Description............................................................................3
Competition........................................................................................4
Marketing Strategies..........................................................................4
Manufacturing /Production Plans......................................................5
Financial Projections..........................................................................5
Income Statement......................................................................8
Cash Flow Analysis……………………………………...……9
Balance Sheet............................................................................10
Financial Ratios........................................................................11
Budget
Contingency Plans.............................................................................13
Appendices.........................................................................................17
Organizational Structure.............................................................14
Product Label ………………………………………………….15
Screenshot (online platform, physical store , etc.) .……..17
i
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Executive Summary
The Authentic Corner Incorporation is a fashion accessory business in Daro,
Dumaguete City that started at year 2022.
The Authentic Corner Incorporation manufactures and sells high quality and
affordable accessories. The Authentic Corner Incorporation distributes products
through their online store and boutique retailers. Special attention has been given
in developing a unique label that will highlight the appeal and specialty nature of
the products. At this time of pandemic, the group intends to deliver the products to
their homes through online.
The distribution of products will begin in Dumaguete City area and places
near the locality.
A careful marketing strategy will be employed. Financial analyses indicate that

if projection is realized, the Authentic Corner Inc. is liquid evidenced by the ratios
computed.
1
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Background
Students owned The Authentic Corner Incorporation that creates accessories

for the general public. The quality is excellent and the price is extremely
reasonable. The organization provides excellent services and incentives to both
new and returning customers. The company will ensure that customers will feel
valued and their opinions and feedbacks will be recognized.
Vision
Our vision is to be the world’s most dynamic and customer-driven corporation,

where clients can discover fashion with perfection in different features.
Mission
- To create modern and fashionable accessories that combines simplicity and
high-quality products at an affordable price.
- To attract customers, especially tourists, in recognizing Filipino culture and
tradition in terms of beauty and style.
Product Description
2
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In today’s generation, many people use accessories as a symbol of one’s

character and style. According to them, accessories bring fashion and complete
the overall appearance of an individual. Bracelet is one of the accessories in
which people wear that enhance beauty and elegance. This product is for
everyone to let themselves show that accessories, specifically bracelets, can
show one’s true self through fashion.
The product’s materials used are from local and high-quality materials.
These materials are beading wire or nylon, beads, and clasps. Furthermore, the
products are produced handmade by most skilled workers. In making these
bracelets’ length, it is according to the general measurements of the human wrist
and made it resizable to adjust to the customer’s wrist. Then, attach the first clasp
to lock the end of the bracelets. And lastly, insert the beads and lock it with
another clasp.
The bracelet’s price range is about 60-100 pesos depending on the design
and the materials used.
Market Description
Most people, especially adolescents and adults, love to wear something that
brings out their own style and perspective. The product’s target market are those
who are fashion enthusiast. Based on the company’s research, about three-fourth
of the population are into fashion.
Although there are many competitors in the locality, our products will make a
difference in design, packaging, and most especially the way we treat our
customers.
3
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Competition
There are a lot of beaded bracelets produced by known jewelry shop. Each
shop has different techniques of styling different beaded bracelets, giving out and
pricing of these bracelets. They also come in various styles and sizes.
The strength of these products is that the store may have strong customer
relationships and a unique quality of bracelets at competitive prices service. These
are DIY and come with different designs which include beaded bracelets, pearl
bracelets, wrap bracelets, and seed bead bracelets. They are priced at a range of
65 – 100 pesos per piece.
The slight disadvantage of these products is that we may pay more to our
employees since we have 10 of them. Initially, we only have 4 varieties of
bracelets, but we will overtime to look for any design soon to add and upgrade our
products.
Marketing Strategies
The distribution and sales of accessories will begin in Dumaguete City area
but may accept orders from nearby towns in the locality. To establish the products,
the company will create a Facebook page, Instagram account, TikTok account, and
also flyers for orders and queries from potential customers. Products will then be
delivered to their homes or they can visit the shop using the map provided in the
company’s official social media accounts. Clients may pay in cash or through
Gcash.
Special attention has been given in developing an attractive label, packaging,

and also freebies that will captivate clients in buying the product/s. A copy of the
label is attached as appendix B.
4
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Manufacturing Plans
The Authentic Corner Inc. owns facilities and operates according to a certain
amount of the production needed. In its initial stage, the company will produce an
average of 80 pieces of bracelets daily, but will also depend on the number of
orders. Production operations may be adjusted from time to time depending on the
market’s situation. Raw materials will be supplied by a trusted supplier in the
locality.
Financial Projections
The following pages include multi-year projections for income, cash flow,
balance statement, as well as estimated financial ratios. These projections are for
the The Authentic Corner Inc. only.
5
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Income Statement
January 1, 2022 – December 31, 2022
Net Sales ₱ 1,872,000.00

Less: Cost of Goods Sold 1,123,200.00
₱ 748,800.00

Operating Expense
Labor 9,600.00
Utilities 6,000.00
Insurance 2,000.00
Sales Promotion 1,500.00
Delivery and Transportation 36,000.00
Miscellaneous 6,000.00
Total Expenses ₱ 61,100.00
Net Income Before Taxes 687,700.00
Less: Income Taxes (20%) 137,540.00
Net Income After Taxes ₱ 550,160.00
Assumptions:
1.Net sales based on price of ₱ 65.00 per pc. x 80 pcs. Daily x 30 Days x 12 mos.
2.Cost of goods sold includes raw materials, packaging materials, labels, and
advertising expenses as estimated at 60% of sales.
3.No salary will be drawn by the owners/managers in the first year. All profits will be re-
invested for new market entry and increased production.
4.Capitalization does not exceed 5M, 20% tax is applied to Net Income before taxes.
6
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Income Statement
Net Sales ₱ 2,059,200.00

₱ 823,680.00

Operating Expense
Labor 9,600.00
Utilities 6,000.00
Insurance 2,000.00
Assumptions:
1.Net sales based on price of ₱ 65.00 per pc. x 80 pcs. Daily x 30 Days x 12 mos. +
10% of previous year sales.
Sales estimated based on 10% sales increase from previous year.
2.Cost of goods sold includes raw materials, labels, and co-packaging expenses is
estimated at 60% of sales.
3.No salary will be drawn by the owners/managers in the second year. All profits will
be re-invested for new market entry and increased production.
7
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4.Capitalization does not exceed 5M, 20% corporate tax is applied.

Income Statement
Net Sales ₱ 2,265,120.00
₱ 906,048.00

Operating Expense
Salary 120,000.00
Labor 9,600.00
Utilities 6,000.00
Insurance 2,000.00
Assumptions:
1.Net sales based on price of ₱ 65.00 per pc. x 80 pcs. Daily x 30 Days x 12 moms. +
10% of previous year sales.
Sales estimated based on 10% sales increase from previous year.
8
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2.Cost of goods sold includes raw materials, packaging materials, labels, and co-
packaging expenses is estimated at 60% of sales.
3.Profits will be drawn by the owners/managers in the third year.
4.Capitalization does not exceed 5M, 20% corporate tax is applied.
9
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Cash Flow Statement
January 2022 – December 2024
Year 2022 Year 2023 Year 2024
Revenues ₱ 1,872,000.00 ₱ 2,059,200.00 ₱ 2,625,120.00
Expenses
Cost of Goods Sold 1,123,200.00 1,235,520.00 1,359,072.00
Salaries 120,000.00
Labor 9,600.00 9,600.00 9,600.00
Utilities 6,000.00 6,000.00 6,000.00
Insurance 2,000.00 2,000.00 2,000.00
Sales Promotion 1,500.00 1,500.00 1,500.00
Delivery & Transportation 36,000.00 36,000.00 36,000.00
Miscellaneous 6,000.00 6,000.00 6,000.00
Taxes & Licenses 137,540.00 152,516.00 144,989.60
Net Increase/Decrease in ₱ 550,160.00 ₱ 610,064.00 ₱ 579,958.40

CASH
10
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Balance Sheet
December 31, 2024
Current Assets
Cash 1,218,127.68
Accounts Receivable 522,054.72
Inventory 1,494,979.20
Total Current Assets ₱ 3,235,161.60
Fixed Assets
Building ₱ 1,500,000.00
Equipment 50,000.00
Gross Fixed Assets 1,550,000.00
Less Accumulated Depreciation 155,000.00
Net Fixed Assets ₱ 1,395,000.00
Total Assets ₱ 4,630,161.60

LIABILITIES AND OWNER'S EQUITY
Liabilities
Current Liabilities
Accounts Payable ₱ 694,524.24
Notes Payable 463,016.16
Total Current Liabilities ₱ 1,157,540.40
Long term Liabilities
Mortgage Payable ₱ 1,157,540.40
Total Liabilities ₱ 2,315,080.80

Owner's Equity ₱ 3,241,113.10
Drawings ₱ 926,032.32
Net Equity ₱ 2,315,080.80

Total Liabilities and Owner's Equity ₱ 4,630,161.60

11
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Financial Ratios
December 31, 2024
Return on Equity = Net Profit Before Taxes = 724,748.00 = 31%

Net Equity 2,315,080.00
Current Ratio = Current Assets = 3,235,161.60 = 2.80

Current Liabilities 1,157,540.40
Quick Ratio = Quick Assets = 1,740,182.40 = 1.50

Current Liabilities 1,157,540.40
Debt to Equity = Total Liabilities = 2,315,080.00 = 1.00

Net Equity 2,315,080.00
Interpretation
Return on Equity
Based on the target performance of the company, it will get returns of
investments equivalent to 31% on the 3rd year of its operation.
Current Ratio
Based on the current ratio computations, for every 1 peso current
liability of the company, we have approximately 2.80 current assets to pay
based on targets.
Quick Ratio
Quick ratio computation indicates that for every 1 peso current
liability, our company has an estimated amount of 1.50 pesos to cover for it
using our quick assets based on target.
Debt to Equity Ratio

Our company's liabilities are just equal to our company's equity.
We consider this as good enough implication that we have the capacity to pay
our obligation using the company's equity.
Contingency Plans
12
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Risk Profitability Preparation Response
Unacceptable High Allocate a budget Double the

Sales for promotion and promotion and
advertisement of advertisement of
the product and the product to
conduct a meeting attract more
with partners to customers and give
discuss more ways discounts.
to get through with
the situation.
Damages of the High Allocate a budget Renovate and

store due to for renovation and beautify the store
calamities beautification of the to make it look
store. more captivating to
possible
customers.
Loss of important High Keep information Picking the right

suppliers or up-to-date and ones will allow your
customers understand your emerging business
customer’s need. to equip itself with
the tools needed to
provide a
specialized service.
13
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Lack of marketing High Conduct a meeting Get a worker who
strategy with partners to has the ability and
discuss more ways has a strategy on
on how to get the how to take care of
attention of customers.
customers.
Net Profit Before Taxes
1,157,540 – Net Income Before Taxes
1,157,540 + 181,100 = 1,338,640 – Gross Income
1,338,640 + 1,359,072 (Cost of Goods Sold) = 2,697,712 – Net Sales
Since the company’s return on equity is 31%, the company’s aim is to get
50% by reducing the cost of goods sold through looking for alternative
supplier that will supply much cheaper goods.
14
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15

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Business Plan

The Authentic Corner Inc.

Manufacturing /Production Plans......................................................5

A careful marketing strategy will be employed. Financial analyses indicate that

Students owned The Authentic Corner Incorporation that creates accessories

Our vision is to be the world’s most dynamic and customer-driven corporation,

In today’s generation, many people use accessories as a symbol of one’s

Special attention has been given in developing an attractive label, packaging,

The Authentic Corner Inc.

Net Sales ₱ 1,872,000.00

The Authentic Corner Inc.

Net Sales ₱ 2,059,200.00

The Authentic Corner Inc.

Net Sales ₱ 2,265,120.00

Less: Cost of Goods Sold 1,359,072.00

Sales Promotion 1,500.00

Delivery and Transportation 36,000.00

Total Expenses ₱ 181,100.00

Net Income Before Taxes 724,948.00

Less: Income Taxes (20%) 144,989.60

Net Income After Taxes ₱ 579,958.40

The Authentic Corner Inc.

Year 2022 Year 2023 Year 2024

Revenues ₱ 1,872,000.00 ₱ 2,059,200.00 ₱ 2,625,120.00

Cost of Goods Sold 1,123,200.00 1,235,520.00 1,359,072.00

Labor 9,600.00 9,600.00 9,600.00

Utilities 6,000.00 6,000.00 6,000.00

Insurance 2,000.00 2,000.00 2,000.00

Sales Promotion 1,500.00 1,500.00 1,500.00

Delivery & Transportation 36,000.00 36,000.00 36,000.00

Miscellaneous 6,000.00 6,000.00 6,000.00

Taxes & Licenses 137,540.00 152,516.00 144,989.60

Net Increase/Decrease in ₱ 550,160.00 ₱ 610,064.00 ₱ 579,958.40

The Authentic Corner Inc.

The Authentic Corner Inc.

Return on Equity = Net Profit Before Taxes = 724,748.00 = 31%

Current Ratio = Current Assets = 3,235,161.60 = 2.80

Quick Ratio = Quick Assets = 1,740,182.40 = 1.50

Debt to Equity = Total Liabilities = 2,315,080.00 = 1.00

Debt to Equity Ratio

Unacceptable High Allocate a budget Double the

Damages of the High Allocate a budget Renovate and

Loss of important High Keep information Picking the right

Net Profit Before Taxes

1,157,540 – Net Income Before Taxes

1,157,540 + 181,100 = 1,338,640 – Gross Income

1,338,640 + 1,359,072 (Cost of Goods Sold) = 2,697,712 – Net Sales

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