REPUBLIC OF THE PHILIPPINES

CITY OF DAVAO
BROKENSHIRE COLLEGE INC.
MADAPO HILLS, DAVAO CITY

CROCHET-O-HOLICS

BUSINESS PLAN

In Partial Fulfillment of the Requirements in

Elective – The Entrepreneurial Mind

Queen Shallymar Andong

Marielle Buguis
Gwen Duchess Lemana
Arl John Papillero
Keana Meren Rulida
Mignon Victoriano

MAY 2022

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 1. EXECUTIVE SUMMARY
Crochet-O-holics is about a business that involves the art of crochet. Crochet is a
technique used to create cloth or items out of yarn, thread, or even other strands of
material with a crochet hook. Crocheting is similar to knitting in that it involves pulling
loops through other loops as well as wrapping the working material around the hook one
or more times.
Crochet-O-holics focus on particular crochet products, such as tops, flowers, hats,
wallets, bags, babywear, and hair ties. The greatest part about this business is that all of
the products are 100% handmade and customized to the preferences of the customers.
Each product may have the same color, but they are all unique. Customers will appreciate
the originality of these products. We provide both custom-made and ready-to-ship
products.
This business plan presents the environmental and industry analysis to which
conditions of the general and specific environment are tackled, the direct distribution
strategy, the pricing method used by the business partners to price the products, and
promotion. Promoting and marketing the business and the products will be done on social
media platforms. Facebook Accounts and pages, Twitter, TikTok, Instagram, and
Messenger, will be created under the business's name. Word of mouth will also be used
to promote the business. Different assumptions, as well as financial forecasts, are all
presented. The business owners will contribute their skills and personal funds to run the
business.

2. COMPANY/ BUSINESS DESCRIPTION

Crochet-O-holics is one of the best crochet online stores, offering a wide range of
infant to adult goods that are all crocheted and 100% handcrafted using various types of
local and imported yarns from all over the world. Crochet-O-holics is located in Sitio Awa,
Catalunan Grande, Davao City, Philippines, 8000. We produce high quality and unique
products which are customized or ready-made crochet. Crochet-O-holics is under
manufacturing because of converting raw materials into new products.
This business aims to develop artistic, innovative, creative, quality handmade
crocheted items such as tops, flowers, hats, wallets, bags, babywear, and hair ties, in the
customer’s preferred style or design, in other words, personalized or customized, while
giving the best possible services to customers. In addition, the owners will always offer
their efforts to improve all aspects of the business,
continue giving customers satisfaction, and receive growth and success within
themselves.
The capital for this business has always come from our partnership’s contributions,
which have been utilized to purchase yarns, hooks, craft supplies, and other marketing
materials. We have already reduced our running expenses in terms of store rent and other
utilities because we are now solely focused on online business, which we are all doing
from home.

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MISSION STATEMENTS AND CORE VALUES
VISION
The vision of this business is to be an innovative and responsible small business that
provides a product that will satisfy the customers. Moreover, it is known as one of the
most successful crochet businesses that encourage people to support handmade
products locally and internationally.
MISSION
The mission of this business is to sell and promote high-quality products that will
encourage people that all handmade products are still suitable as other machine-made
products.
CORE VALUES
Crochet Yarn Core Values are the following:
a.) Be honest about the quality of the product or service.
b.) Be passionate and committed.
c.) Be creative and continually innovative.
d.) Be accountable
3. PRODUCTS AND SERVICES OFFERED
We're making and selling crochet products for all ages, from newborn babies to
adults. They are all 100% handmade using various types of local and imported yarns from
all over the world. Giving the customer chances to choose between ready-made or
custom-made products, will allow us to be more sensitive and satisfy the customers’
needs and wants. We introduced our 6 product lines which are babywear, flower crochet,
crochet bag, crochet wallets, crochet hats, and crochet tops. From the ready-made items,
customers can request to change the colors and size and it is optional to put any other
accessories. We will keep updated with the new design and pattern and introduce more
product lines from time to time. All custom-made products usually take 7-20 days to be
ready, depending on the quantity and the yarns’ stock while the ready-made items will be
delivered in 2-3 days.
4. MARKET ANALYSIS

A. Market Segmentation

The activity divides a broad consumer of the business market, normally consisting of
existing and potential customers, into subgroups of consumers based on the type of
shared characteristics.

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 GEOGRAPHIC DEMOGRAPHIC

● Location: Sitio Awa, Catalunan ● Age: 10 and above years old.

Grande, Davao City, Philippines, 8000
● Sex: Male, Female, and LGBTQ+
● Religion: All Religions
● Occupation: Students, employed or
● Region: Customers are mostly unemployed.
residents and tourists inside Davao City
near our location. In online selling, ●Income: Students' monthly allowances
customers are from inside and outside range from 500 to 1000 pesos. Employed
Davao City. customers have an income of 100 to 1000
pesos daily.
● Density: Urban, Sub-urban, or Rural.

PSYCHOGRAPHIC BEHAVIORAL

● Lifestyle: Organizations provide a ● Loyalty Status: Customers are precise

unique definition of a person or group's about buying our products and they have a
attitudes, preferences, and desires. satisfactory reaction to declare our services
are exquisite and natural, thus customers
● Personality Trait: The personality of the will come back again to buy our product.
consumer and buying habits are strongly
connected. ● Buyers Readiness Stages: At any given
time, frame
● Values: Add value to consumers based
on their needs. ● Special Occasion: Buyers are divided into
groups based on their perception, mood,
● Opinions: Customers can make their usage, or reaction to a commodity.
decisions.

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Buyer Behavior, as to:

Design – Design can leave a long-lasting impression in the customer’s mind; it conveys
the business values and it can attract the people who will possibly buy the products.

Quality of Product – The quality of crochets is what unobtrusively meets the needs of
the customers. They don’t only evaluate the appearance of the product but also the
comfortability and confidence the product gave them.

Price – The price varies depending on the type of product they are purchasing. The
quantity of goods that we will sell is affordable and we will meet the standards of our
customers. The more affordable goods we've made, the more customers we're sure to
buy.

B. SWOT Analysis

The table below shows the description of the company's internal and external advantages
and disadvantages.

STRENGTHS WEAKNESSES OPPORTUNITY THREATS

Affordable Price Absence of Growing Market Competition

Communication

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 Excellent Customer It takes days to Technological Internet
Service accomplish Advancement Connection

Accessibility Lack of machines More locations Fraud

Start-up Friendly Shipping fees Influencers Government

Regulations

High-quality and Changes in price

detailed product.

C. Competitors Analysis

The table below shows the competitor and the company's similarities, differences, and
edges.

Company Similarities Differences Edges

Company Our companies both Our company’s product is Our product is more
A made top clothes. made through crocheting. detailed and quality.
Also, our company offers Handmade and 100%
more products other than made with love.
tops.

Company Our companies both Our company’s product Our product has lower
B sell crochets offers many designs and prices and is affordable.
products through styles. We also give freebies to
online platforms. keep our customer’s
loyalty.

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D. Advertising Strategy

To sell and recognize crochets tops and other types made for consumers offered by
Crochet-O-holics, we will make an online advertisement on different social media
platforms as well as on the business website. The advertisement includes the basic
information about our products: the designs, color, and styles that make the appearance
of our product eye-catching. Along with it are the benefits and satisfaction consumers will
get and contact information for orders and inquiries.

E. Distribution Strategy

The distribution strategy of Crochet-O-holics can be done in two ways: it can be

purchased in the Sitio Awa, Davao City with the presence of the customer, otherwise can
be bought online and will be delivered by J&T both for local and other residents residing
outside the locality. We came up with these existing ideas since customers are already
accustomed to this kind of purchase. However, we guarantee that the management and
transportation service of our company will be at their best.

5. STRATEGY AND IMPLEMENTATION

The goal of the business
Our basic philosophy is to offer a variety of quality knitting and crocheting products at
affordable prices while maintaining a friendly and helpful atmosphere. We hope to have
a large returning customer base through our efforts.
Target customers
Gender: Male and Female
Age: All
Our Crochet Business Strategy:
• Our business will use social media platforms (Instagram, Facebook, and Tiktok) to
advertise and promote our product. By taking pictures and videos of us crocheting,
making a business page, and consistently promoting our product. Since we were
just starting our crochet business, there are so many competitors in this field. We
will be focusing on promoting our product first. This is to gain the eyes of the
buyer's/customers around us, and also for us starters to know what the customers
really want. As a starter, we have to gain the trust of our buyers. We would also
promote it to our friends and family, giving or showing them free finished samples.
By that, they can write comments on our social media page or tell others about our
business. Because customer reviews are very important in an online business.
• Offer loyal customers an exclusive preview. Loyal customers (Friends and Family)
are a key part of how to promote our product because they are most likely to not
only buy it but also promote it to their social media accounts or tell their friends.
These exclusive offerings are not only a great customer engagement strategy, but
they also reinforce how much you value them, and engagement and loyalty are
essential for any successful growth of our marketing strategy.
• Share customer reviews. One of the best ways to promote our product because
it’s crochet is to let our customers promote it for us. We can then ask them to write

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 or tag us in our online media accounts about the product they’ve received. Or we
can make a highlight on our social media pages of the satisfaction and review of
our customers.
• Rather than just announcing our product, we can make it available as a part of a
special introductory deal. This deal can take many forms, including:

a. Discounted or cheaper pricing.

b. Reduced-rate bundle or package.
c. Buy one get one free deal
d. Free gift for every referral
e. Customized color

6. ORGANIZATION AND MANAGEMENT TEAM

A. Legal Structure

Crochet-O-Holics will be a limited liability partnership.

B. Management Summary

Marielle Buguis is the founder of Crochet-O-Holics. She has started making crocheted
items and products as a part-time job for the last 3 years. She has managed to make this
small business success with the help of her co-owners. This small business runs on the
effort of the partnership of the co-owners and the founder.

C. Job Responsibilities
I.Founder: Marielle Buguis
• Create and execute marketing strategies for business growth.
• Align business strategies with the vision statement.
• Ensure legal compliance for the business.
• Negotiating contracts with vendors.
II. General Manager: Mignon Victoriano, Gwen Duchess Lemana, Keanna Meren Rulida
• Control inventory to ensure optimal levels are attained.
• Manage day-to-day operations.
• Improving overall business functions.
• Developing strategic plans.
III. Sales Manager: Arl John Papillero, Queen Shallymar Andong
• Creating sales plans.
• Assigning sales territories.
• Setting sales quotas.
• Analyzing data.

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D. Organizational Chart

7. FINANCIAL PLAN AND PROJECTIONS

ASSUMPTIONS
Business level
1. Crochet Yarn will take probably 2 months to reach a particular goal.
2. In 1 month, promotions on different social media are already established and Crochet
Yarn will be known to about 5-10% of Filipinos.
3. By the second month, advertisements on social media will receive numbers of
engagements and will reach users or customers outside the Philippines.
Revenue (Or Sales)
1. The business will sell 26 pieces of the product by month one.
2. Each month, sales will grow by 25 to 50%.
3. My business will grow by 50 or more customers each month.

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Asset
1. After three to five years, the business will need to acquire new materials or tools to
replace the old ones and purchase new ones for efficient and effective production.
2. Will need to purchase a motorcycle vehicle for delivery purposes.
3. New products will be introduced after 1 year.
Operating Expenses
1. Expenses will decrease in the third to six months because the owners will find
affordable yet quality materials from different suppliers, asking for discounts, cashback,
coupons, free delivery, etc.
2. Expenses will increase probably after six months because the business will be
expanding, adding employees, tools, materials, etc.
Personnel Expense
1. The business will start having no employees since the business partners will manage
and operate the business, but will add two employees after six months due to the increase
in demand for the products.25
2. Employees will be paid on a weekly basis and will increase 5% to 10% after 1 month

Pro forma income statement

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