ARCHIMART

BUSINESS PLAN

In Partial Fulfillment

of the Requirements for the Subject

ENTREPRENEURSHIP

Name of Proponents:

Jasper Barroga

Victor Quintinita

Nicoll Peniafel

Regie Apolinario

Jhay vee Dela cruz

Christian Jun Cartagena

Carig, Tuguegarao City

09 6 6 3 85 0 0 0 1

arhimart@email.com

www.archimart.com

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TABLE OF CONTENTS

I.EXECUTIVE SUMMARY...........................................................................................................2

II....................................................VISION, MISSION, GOALS OF THE BUSINESS 3

III...................................................................COMPANY DESCRIPTION 3

IV.SWOT...................................................................................................................................4

V. BUSINESS MODEL..................................................................................................................6

VI.MARKETING PLAN ............................................................................................................7

VII..............................................HUMAN RESOURCES/MANAGEMENT PLAN 8

VIII........................................................................PRODUCTION PLAN 12

IX.............................................................................FINANCIAL PLAN 19

A. FINANCIAL REQUIREMENTS ........................................................................................19

B.INCOME STATEMENT ....................................................................................................20

C. BALANCE SHEET..............................................................................................................20

D. BREAK EVEN ANALYSIS...........................................................................................................21

D. SOURCES OF FINANCING .............................................................................................21

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I. Executive Summary

Architectural Materials Inc. is a start-up company that will specialize in the distribution of high-quality

building materials for architecturs and builders and architecture materials for students. Our mission is to provide

our customers with the best materials for their projects, while also providing exceptional customer service and

support. Our goal is to become the go-to supplier for architects and students in our region, and to expand our

business throughout the country.

II. Vision, Mission, and Goals

Vision

Our vision is to be the leading provider of high-quality building materials for architects and builders and

affordable architecture materials for students, while also promoting sustainable and eco-friendly practices in the

construction industry.

Mission

Our mission is to provide our customers with the best building materials for their projects, while also

offering exceptional customer service and support. We are committed to sourcing materials from the best

manufacturers in the industry, and promoting sustainable and eco-friendly practices in the construction industry.

Goals

To offer customers a unique and quality materials by providing them a friendly and comfortable

ambiance.

III. Company description

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 Architectural Materials Inc. is a start-up company that specializes in the distribution of high-quality

building materials and materials for students, architects, contractors, and builders. Our focus is on promoting

sustainable and eco-friendly practices in the construction industry, while also providing exceptional customer

service and support. We source materials from the best manufacturers in the industry, ensuring that our

customers have access to the highest quality materials for their projects. Our product line includes a wide range

of building materials, including but not limited to steel, concrete, glass, wood, and plastics. We also offer

consulting services to help architects and builders choose the best materials for their projects, taking into

consideration factors such as cost, durability, and environmental impact. At architectural Materials Inc., we

believe that sustainable and eco-friendly practices are the key to building a better future for our planet. We are

committed to promoting these practices in the construction industry, and to making it easy and affordable for

architects, contractors, and builders to adopt them. Our management team has extensive experience in the

construction industry, and our staff is trained to provide exceptional customer service and support. We are

confident that we can build a profitable business while also making a positive impact on the environment and

the construction industry as a whole.

IV. SWOT Analysis

Strengths:

1. Focus on sustainable and eco-friendly practices that appeal to environmentally-conscious customers.

2. Wide range of high-quality materials sourced from the best manufacturers in the industry.

3. Experienced management team with extensive knowledge of the construction industry.

4. Consulting services to help architects and builders even student choose the best materials for their projects.

Weaknesses:

1. Relatively unknown brand in a competitive industry.

2. May have higher prices than some competitors due to the focus on sustainable and eco-friendly materials.

3. Limited distribution channels in the early stages of the business.

Opportunities:

1. Growing demand for sustainable and eco-friendly materials.

2. Expansion of the business into new regions and markets.

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3. Collaboration with builders, architects and contractors to develop innovative solutions to environmental

challenges.

4. Partnerships with manufacturers of sustainable building materials to offer exclusive products to customers.

Threats:

1. Competition from well-established companies in the industry.

2. Economic downturns that may decrease demand for materials.

3. Potential changes in government regulations affecting the construction industry.

4. Fluctuations in the prices of raw materials that may affect profit margins.

Overall, architectural Materials Inc. has a strong focus on sustainable and eco-friendly practices that

appeal to a growing market. However, the business will need to overcome competition and pricing challenges to

establish itself in the industry. By leveraging its strengths and opportunities and addressing its weaknesses and

threats, architecture Materials Inc. can position itself for long-term success.

Competitor analysis

Since there are only a few coffee shops nearby, the location will not be a hindrance for

this shop to succeed. But the small number of coffee shops, despite it being a popular

business type nowadays, may be a sign that researchers or analysts do not find it feasible.

Competitors Strength Weakness

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 credible brand
1. 3M Enterprises Expensive, small portion of
materials

2. La ANCI Builders Many materials Expensive

material

establishing shop, Bad service

3. TJMT Hardware
vegan option

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V. BUSINESS MODEL

Key partners Key activities Value propositions Customer Customer segments

-Suppliers of -Store Design -Meeting the needs of relationship -Niche market of high

Raw materials customers with changing -Friendly and end middle income

-Social Media preferences and courteous staff earners

-Other Marketing at the same time meeting -Same interests

Shop owners each customer’s individual between

who would like consumption needs employees and

to resell or buy -Menu based on materials, customers

product products to customers -Provide cards

and vouchers

Key resources Channels

-Friendly and safe
-materials Quality Social media and
ambiance with aesthetic
-Mobile word-of-mouth
background
Payment will be utilized to

-Recycled reach customers

Paper

Cost structure Revenue streams

Variable -Direct in-store sales

-SG&A -Membership

Fixed -Franchising

-Store design and Equipment -Arts and Designs Display

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VI. Marketing Plan

Marketing strategies

Since Archi Market is a start-up business, it extremely relies on the word-of-mouth advertising. This

marketing strategy is extremely widespread and straightforward. It does, however, have its own various

problems. Aside from that, clients rely on word of mouth when deciding where to buy supplies. As a result, if

we are unable to have control over what other customers and employees say, our market share would

undoubtedly decline. To summarize, we must maintain constant contact with customers in order to identify and

address the problems faced by the prior customer before news spreads. Furthermore, we may encourage

employees to constantly discuss products and services with friends, relatives, and acquaintances.

Product

1. Architectural materials and eco-friendly services- Architectural Materials Inc. offers high-quality products

and eco-friendly services such as product demonstration, consultation, and promotional programs for the

customer's convenience and project needs for architects, builders, contractors and students. Satisfying the needs

of our customers and their projects are very important for the company that’s why the Architectural Materials

Inc. offers durable and non-costly building materials as part of the design vocabulary of all architects, ranging

from the very familiar (such as concrete, glass, wood, plastics and steel) having environmental impact.

2. Loyalty Card- We value your loyalty to our clinic so the Architectural Material Inc. gives Loyalty Cards for

customers who regularly visits the company (at least thrice a month) with their loyalty cards they can avail free

installation and consultation service if they meet the required points. They must have at least 5 points to avail (in

every P1,000 worth of purchase 1 point will be added to their card).

Price
1. Bundled Service Packages- The Bundled Service Packages includes installations, architectural materials with

freebies (Drawing templates, Painting Pallette, Pencil Set) choose only one of those indicated depending on

what materials they will purchase and free consultation. Availing this bundle will earn 3 points on their loyalty

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card.

2. Discounts- We offer 5% percent discount every holiday and if you have a top fan badge or if you are a

milestone follower on our Facebook page, 10% discount for loyalty cards that earned 10 points.

Place

The shop will be located at The shop will be located at Carig Street Tuguegarao City, Cagayan.

Promotion

To achieve repeat buyers and allow them to advertise products and services, the following

will be offered:

● Loyalty and Incentive Programs (discounts and vouchers)

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VII. Human resources

The Archi market will be established as a general partnership type of business. It composed of six

shareholders. Each will gain an equal ownership in the business and will get a corresponding share of

any profit/losses that will be generated in accordance with the term of the partnership agreement.

LOCATION OF THE BUSINESS

The Architect Material Inc. are about to establish will be located at the shop will be located at Mabini

Street Tuguegarao City, Cagayan. We choose this place because it has schools, establishments around the

corner, convenience store, church, workplace and etc. This place is perfect for the business we are

planning to build, it is not in the center of the city yet the place is full of working places and stores. The

business will be convenient especially to the students who are studying in the near school. It is good

also for the citizens who wants to purchase materials because of the accessible stores and places. We

all approved to this place and had an agreement that expenses will be shared by us.

Organizational Chart

OWNERS

MANAGER CASHIER Worker/ Crew

Cashier

A cashier is responsible for processing cash, debit, credit and check transactions using a cash register
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or other point-of-sale system in a retail 9 environment. Their duties include balancing the cash register,

making change, recording purchases, processing returns and scanning items for sale.

Manager

A manager is a person who is responsible for a part of a company, they ‘manage ‘the company.

Managers may be in charge of a department and the people who work in it. In some cases, the manager

is in charge of the whole business.

Crew

A crew is responsible for presenting materials to people. He/She answers questions on materials and

other items. He/She makes recommendations also prepares the bill that itemizes total materials costs.

Describing materials or items and suggesting products to customers.

Qualifications

● At least college graduate, preferably graduate of culinary arts or hotel management with an interest

in Arts

● Organized and can work under healthy pressure

● Preferably residing at Tuguegarao City or nearby

● An experience to the following hiring vacancies is an advantage

Pre-requirement

● Holder of health ID

● Healthy and fit

● No pending and ongoing legal case

● No current plan of moving abroad

Terms and Benefits

Probationary of 6 months with minimum wage, no benefits but with free basic training of services.

Although they can accept cash from tips and will have food discounts from the café. After 6 months,

the employee will be promoted, if decided to push through, and shall undergo premium training. When
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 promoted, he/she will be offered the following benefits with a 50-50 share from employee and

employer:

● SSS ● Pag-IBIG ● PhilHealth

Pre-operating Activities

Activity June July Aug Sept Oct Nov Dec Jan

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Planning

Research

Site

inspection

and design

Business

permit

processing

Buying of

equipment

and supplies

Hiring and

training

employee

Follow-up

Advertising

and

Opening

VIII. PRODUCTION PLAN

Product Specification
AMI products are simply outstanding! These items are ideal for those who wish to build constructions
that are safe, enduring, and visually appealing while also being ecologically friendly, sustainable, and energy-
efficient. Utilizing green and sustainable materials lessens the negative effects of building on the environment
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and promotes long-term financial savings through energy efficiency. Because these goods are made of high-
quality materials, structures constructed with them are guaranteed to be durable, fire-resistant, and occupant-
safe. The adaptable alternatives offer a wide range of options for distinctive and aesthetically pleasing designs,
allowing architects and builders to let their imaginations run wild. Overall, AMI products provide all the
essentials for a cutting-edge, environmentally friendly construction project.

Production Process
Focuses specifically on preparing and selling raw products:
1. RAW MATERIAL SELECTION: AMI purchases premium raw materials from vendors who satisfy the
demands of the business in terms of affordability, quality, and sustainability. This may entail
choosing supplies like wood, metal, glass, or other supplies frequently used in architecture.

2. MATERIAL INSPECTION: The company inspects the raw materials after receiving them to make sure
they adhere to the required requirements. Anything that doesn`t adhere to these guidelines is sent
back to the provider.

3. MATERIAL PREPARATION: The raw materials are then ready for consumer purchase. Making the
materials simpler for the client to use may entail cutting, shaping, or processing them in some other
way.

4. PRODUCT CATALOG CREATION: The corporation publishes a product catalog that exhibits the raw
materials that they provide for sale. The descriptions, details, and prices for each product may be
included in this catalog, which may be in paper or digital form.

5. SALES AND MARKETING: To advertise its raw resources to potential clients, the corporation
conducts sales and marketing efforts. This could involve attending trade exhibitions, advertising, or
making contact with architects, builders, and other specialists in the field.

6. ORDER PROCESSING: An order placed by a consumer is processed and checked to make sure the
right product is chosen and the order quantity is accurate.

7. PACKAGING AND LABELING: The raw materials are packaged and labeled with the proper
information, such as the material type, size, and amount, after the order has been processed.
Customers will receive the right product and be able to recognize it with ease.

8. SHIPPING: The raw materials are subsequently delivered in packaged form to the customer’s location
utilizing a number of delivery options like courier, truck, or mail. Depending on the company`s
resources and demands, this procedure could be outsourced to a third-party logistics provider or
managed internally.

9. CUSTOMER SUPPORT: Customer service is offered by AMI to guarantee that clients are happy with
their purchases. This can entail responding to inquiries on the raw materials, offering technical
support, or managing returns and exchanges.

10. SALES ANALYSIS: Finally, the business analyzes sales data to spot trends, consumer preferences,
and potential improvement areas. The production process is optimized using this data, which also
helps to boost customer happiness and sales.

This production process/method is designed to ensure that Architectural Materials Inc. can efficiently prepare
and sell its raw materials while maintaining high standards for quality and customer service

List of Machineries and Equipment

Equipment Specification Unit
ELF - Transmission- manual
- 3400 rpm 1
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 - 343 Nm
- 2000-3200 rpm
- 125 bhp
- Cooling Capacity: 13,000(33,780-14,040)
Air Conditioner kj/hr Power consumption: 1150(320- 1,400) 2
Energy efficiency Ratio: 11.3 (11.8-10) kj/w-
h
- Type: Touch screen Receipt printer: Thermal
POS Data server: 2x memory, 500GB monthly 1
transfer, 99.9% Network uptime, 99.5 Server
uptime
- Fully-featured bullet cameras from Axis are
ready to go right out of the box and at a great
price. With their small, slim design, they
look great in any environment. And built-in 5
CCTV IR illumination and high-resolution video
quality, mean they do a great job at helping
you protect your premises, indoor or out.

List of Supplies and Raw materials (Products)

Supplies and Raw materials Specification Price
Paper Bag ₱
Cabinet ₱
Chair ₱
Dal-Wrench; Chain Pully; Cain-Ton; Screw
Screw Driver; Tubular Steel Poles ₱

Kitchen. Small Appliances. Outdoor Cooking.

Power tools Patio & Outdoor Furniture. Gazebos, Pergolas & ₱
Shelters. Air Conditioners
Long-nose and needle-nose pliers are ideal when
Pliers you need to cut, hold or pull. An extended nose ₱
helps reach into tight areas where pliers with
shorter noses
Cable tie Per Sack of 100 pcs (10, 20, 30,45,75 ₱
List of Supplies and Raw materials
WOOD (lumbers) Density, Strength, Moisture
content, Durability, Workability
and Appearance.
It's important to note that these
specifications can vary significantly
depending on the specific species,
as well as factors such as wood
processing, treatment, and
environmental conditions.

CONCRETE Compressive strength: Concrete's

compressive strength is its ability to
resist compression or withstand
loads that tend to squeeze it.
Workability: Concrete workability

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 refers to its ease of mixing, placing,
and finishing.

GLASS Steel is an alloy primarily

composed of iron and carbon, with
the addition of other elements such
as manganese, chromium, nickel,
and more.
Different steel grades have
different properties and
characteristics to suit various
purposes, such as structural steel,
tool steel, stainless steel, and more.

STONES Glass is a versatile and transparent

material composed of silica (silicon
dioxide) and other additives.

TEXTILES Textiles refer to materials made

from fibers that are woven,
knitted, or otherwise formed into
fabric. Additionally, certain
textiles may have additional
properties or specifications
specific to their intended
applications, such as water
resistance.
BRICK Different types of bricks, such as
facing bricks, engineering
bricks, or pavers, may have
additional specifications tailored
for their specific applications.

BAMBOO It's important to note that

specific of bamboo can vary
depending on the species,
growth conditions, and
processing methods. Different
bamboo products, such as
bamboo flooring, bamboo

Location and Layout

Vicinity Map

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Floor Plan

jh

Perspective

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Waste Disposal Method
Daily throws of segregated garbage and shall be picked up by the
municipality early in the morning. Waste disposal method include recycling, composting, landfill
disposal, and hazardous waste disposal.
Recycling is a method of collecting and processing recyclable waste such as cardboard, paper,
plastic, or metal. Composting is the process of decomposing organic waste such as food waste, yard
waste, or wood scraps. Landfill disposal is a method of disposing waste that cannot be recycled or
composted. Hazardous waste disposal involves complying with federal and state regulations for
disposing of hazardous waste such as chemicals, batteries, or electronic waste.

AMI Daily Work Schedule

A normal workday is 8 hours long, with a lunch break in between, from 8am to 4pm. Normally, it
begins with arranging tasks, checking emails, and planning the day. The morning is devoted to
finishing urgent and significant duties, going to meetings, or working with coworkers. After lunch, the
afternoon is devoted to finishing up pending work, attending meetings, and performing additional
duties. The day is broken up into brief periods for rest and refueling. The day closes with the
completion of outstanding work and planning for the next day. The precise schedule, however, varies
depending on the nature of the profession and personal preferences.

Man Power Requirements

 STORE MANAGER: Responsible for overseeing the daily operations of the store, managing
staff, and ensuring that sales targets are met. They may also be responsible for creating
marketing strategies to attract new customers and maintaining relationships with existing
customers.
 SALES REPRESENTATIVE: Responsible for selling the raw materials to customers,
answering their questions, and providing excellent customer service. They may also be
responsible for prospecting new clients, following up on leads and negotiating prices.
 WAREHOUSE WORKERS: Responsible for inventory levels, receiving and shipping raw
materials and ensuring that the warehouse is organized and efficient. They may also be
responsible for preparing orders for shipment and managing the company`s physical assets.
 CASHIER: Responsible for processing customer transactions, handling cash and credit card
payments, and balancing cash registers at the end of each shift.
 PRODUCTION WORKER: Responsible for manufacturing the company`s raw materials,
which may involve cutting, shaping, assembling and finishing. Depending on the complexity of
the manufacturing process, different levels of skill may be required.
 LOGISTIC COORDINATOR: Responsible for coordinating shipping and receiving operations,
managing inventory levels, and tracking shipments.

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MANPOWER REQUIREMENTS
Position Number of Employee
Owner 1
Manager 2
Worker's 20
Logistics Coordinator 7

FINANCIAL REQUIREMENTS

CAPEX
BUSINESS PERMIT 50,000
FIT OUT 400,000
EQUIPMENT 450,000
TOTAL 900,00
OPEX
RENT 45,000
MONTHLY STAFF COST 84,184
MARKETING SPEND 70,816
UTILITIES 50,000
SUPPLIES 250,000
TOTAL 500,000

IX.Financial Plan
INCOME STATEMENT
7 working days
Average of 30 person per day
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Average of Php 2,807 per person
Weekly computation: 7(30)(2,807) = 84,183.4
Monthly computation: 5 (84,183.4) = 420,917
Yearly computation: 12(420,917) = 5,051,000
Components start up expenses= 500,000
Yearly wages : 5,480 (365) = 2,000,000
Period Year 1 Year 2 Year 3 Year 4 Year 5
Sales 5,051,000 5,053,200 5,055,000 5,060,120 5,061,120
Operating 2,500,000 2,675,000 2,705,500 2,550,000 2,405,000
Expenses
Gross profit 2,551,000 2,378,200 2,349,500 2,510,120 2,656,120
Gross Margin 50% 47% 47% 49% 52%
Less Dept. 24,500 23,000 23,100 22,000 23,050
EBIT 2,526,500 2,355,200 2,326,400 2,488,120 2,633,070
Less Taxes 1,008,987 1,014,891 1,015,255 1,015,200 1,016,200
Net Income 1,517,513 1,340,309 1,311,145 1,472,920 1,616,870
Net Margin 39% 39% 39% 39% 39%

BALANCE SHEETS
Period Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Cash 5,051,000 5,053,200 5,055,000 5,060,120 5,060,120
Accounts 1,397,250 1,227,250 1,337,700 1,365,720 2,319,131
Receivable
Inventory 150,000 164,911 199,674 209,896 500,000
Prepaid expenses 24,750 28,000 29,500 30,000 50,500
Property and 450,000 450,000 450,000 450,000 450,000
equipment
TOTAL ASSETS 7,073,000 6,923,361 7,111,874 7,115,763 8,830,251
LIABILITIES
Accounts Payable 2,015,000 1,200,000 900,000 200,000 250,000
Accured Expenses 1,300,000 935,000 520,453 120,000 180,000
Unearned 1,240,487 930,539 522,454 198,,849 186,494
Revenue
Total Current 4,555,487 3,065,539 1,942,907 518,849 616,494
Liabilities
SHAREHOLDER
'S EQUITY
Equity Capital 1,000,000 2,517,513 3,857,822 5,16,967 6,596,887
Retained 1,517,513 1,340,309 1,311,145 1,472,920 1,616,870
Earnings
Shareholder's 2,517,513 3,857,822 5,168,967 6,596,887 8,213,757
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Equity
Total Liabilities 7,073,000 6,923,361 7,111,874 7,115,736 8,830,251
and Shareholder's
Equity

Break Even Analysis

Sales per Unit 5,051,000

Less Variable Cost 2,110,700
Contribution Margin 3,739,300
Less: Fixed Cost 2,071,200
Net Income 1,517,513
Selling Price (SP) per Unit 10,000
Variable Cost (VC) per Unit 5,000
Contribution Margin (CM) per Unit 2,500
CM ratio: 0.0049495149475

BEP in Units 828.48

BEP in peso 3,251,157.66

Source of Financing
The Archi Market will have a capital of one million pesos (1,000,000)

The initial capital of the business will come from the share of six members (personal earnings). Each
member contributed 16.67% amounting to 166,666.666 pesos to make a total of 100%

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