Business Plan

TRIUMPH2000
Province of Camarines Norte
(Tel # 0991-971-8711)

Prepared by:

ANDREW NECIO

July 16, 2023

Author’s Profile
ANDREW LAPAK NECIO, the main author of this business plan, co-founder and
incorporator of TRIUMPH2000 have been involved with the Multi-Level Marketing for
twenty-five (25) years. He joined Forever Living Products (a MLM company) - his first
exposure to Multi-Level Marketing. Although praised for being analytical in his
approach to MLM business, he attained a realization that MLM should be operated in a
simpler step-by-step approach. After years of activism in MLM, he also realized that the
weakest-link in MLM is not the pay-plan; not the products; not the distributors; but the
one who manages the business or the owners. So, he decided to decrease his involvement
as a distributor and pursue preparing to establish his own MLM company.

He also developed several prototype business model for Multi-Level Marketing.

They include financial whereabouts, marketing warfare, customer development, and many
more. These business models have been tried in several Multi-Level Marketing companies
over the past ten (10) years, and have been produced a considerable impact.

He intends also to detach himself to monetary interest like non-attachment to

stocks valuation, dividend, honorarium and other rights. But, he insists to only have a
share of seat in the Board-of-Directors domain because he wanted to have a share of
voice in the decision-making of the company operation and development.

He also intends to share his competency through setting a training program for all
interested would-be-entrepreneurs. In fact, he has a formal education related to business
acumen like a non-completed degree in Master in Public Administration; Bachelor in
Arts major in Mathematics; Sixteen (16) years of formal experience in Administrative
Tasks and Event Organizing. As a matter of fact, he is currently a regular government
employee for culture and arts division. He also accepts ghost writing of undergrad thesis
and wrote a several drafts of books that he intends to publish as soon as possible.

Lastly, he intends to widen the influence of his three core values which are:

INTEGRITY
SYNERGY
MASTERY.

So as, to contribute in the betterment of the whole Multi-Level Marketing industry.

 Table of Contents
Author’s Profile.................................................................................2

Background and History....................................................................4

Description of Products......................................................................4

Market Description.............................................................................4

Competition........................................................................................5

Marketing Strategies..........................................................................5

Manufacturing Plans..........................................................................6

Financial Projections..........................................................................6
Income Statement......................................................................7

Contingency Plans................................................................................8

Appendices...........................................................................................9
Letters of Endorsement...............................................................9
Resumes of Management..........................................................10
Product Labels...........................................................................11
Background and History

The INCORPORATORS have been involved with the Multi-Level Marketing

industry for several years. Although esteemed for their undying hope for the betterment
of this industry, they have recently attained a special interest to establish their own
Multi-Level Marketing company. After years of conception, they have decided to really
pursue and developed a business plan as a road-map for the Founders, Incorporators and
Investors.

Description of Products
The INCORPORATORS have planned several line-of-products for
TRIUMPH2000. They include hygiene-care (beauty and health) and much more. These
Hygiene-Care products have been distributed by most Multi-Level Marketing companies for
the past decades and have been produced in large quantities. The estimated repeat-
purchases and shelf life of the product is reasonable for business sustainability as well as
customer retention.

The INCORPORATORS intend to market this product in reasonable price. They

also intend to have a kind of products that can be priced lower for the affordance of the
marginalized segment.

Market Description

The TRIUMPH2000 target market will fall into two distinct categories:
Hygiene-Care Enthusiasts and Would-Be Entrepreneurs. This business plan will look at
these two markets separately.

Hygiene-Care Enthusiasts: While the overall consumption of Hygiene-Care

products around the globe placed below the top five best-selling products, the market has
still feasible to be penetrable incrementally. Markets will still tend to try both low-cost
and luxurious Hygiene-Care because of the increase influence of the Internet-of-Things.
The other reason for increase market awareness is the cultural impact established by the
Multi-Level Marketing Industry for the past many decades.

Would-Be Entrepreneurs: Many market research around the globe, indicates

that the entrepreneurial market will continue a fast paced growth well into the next
decade. Multi-Level Marketing is a billion-dollar industry and is expected to continue
double-digit growth through years to come. While demographic information indicates
that this segment of market is strongest in metropolitan areas, there are also market
development opportunities in smaller communities. Market development efforts are
especially important in the whole marketing approach, and special attention will be
given to the marginalized segment.
Competition

There are several brands of cosmetic, therapeutic and the like that are available in
mainstream In-Store outlets as well as Multi-Level Marketing channels. In the local,
national and international In-Store and Multi-Level Marketing field - most of the product
varieties are produced by medium and large players. There are also small scale players
available, but these are not direct competition for TRIUMPH2000. According to
estimates in the field of Multi-Level Marketing domain - approximately - the
distributors’ attrition rate was 70%, while the remaining 30% of distributors survived for
several years but most them got out-of-distributorship because of company’s bankruptcy.

The only strengths of these In-Store and Multi-Level Marketing companies are
their narrow captive market and few synergistic supply chain. These strengths are available
in any in-store fields and Multi-Level Marketing fields - and have gained strong business
tradition acceptance.

The core weakness of these businesses is in the lack of fiduciary. Only few of these
businesses demonstrated and maintained the highest standard of fiduciary. Several of the
businesses are also classified as “Trustworthy”, but are actually a “Trust-Trap based”.

Marketing Strategies

Distribution of TRIUMPH2000 products will begin in the province of Camarines

Norte area. The INCORPORATORS have an established human and social capital in
this area – hence, product and opportunity introduction will encounter little resistance.
Some INCORPORATORS have indicated that they are willing to do the traditional
home-based and office-based presentation. The letters of intent are included in the
Appendix section. It is also important to note that the INCORPORATORS put emphasis
on NO-COMPLICATED presentation.

After TRIUMPH2000’s debut in Camarines Norte – TRIUMPH2000 intends to

participate in National Trade Fairs. This trade fairs will enable the INCORPORATORS to
introduce TRIUMPH2000 into the national market area under more synergistic branding
conditions. TRIUMPH2000 also intends to enter the international markets in the third year
of operation.

The INCORPORATORS will rely heavily on Online Marketing, as well as

Monthly Big Event in the local, national and international market area. They will
demonstrate the products in conjunction with services during warmer months, and
products in conjunction with services during the cooler months.

Special attention has been given to developing an attractive label as well as the
packaging that will emphasize the simple features and benefits of the products. A copy
of the label is attached in the appendices. An online marketing specialist will assist in the
development of the brand, and will conduct a focus group study to evaluate the image
projected by the label as well as the packaging.
Manufacturing Plans

Because TRIUMPH2000 will owns and operates local, national and international
offices, they must have their own manufacturing facilities for a certain kind of the
products. TRIUMPH2000 prefer low cost property for sale or rent as facilities to
manufacture products.

The Incorporators feel that owning the manufacturing of the product will triumph
itself well on pricing of products. To pursue that manufacturing opportunity,
TRIUMPH2000 will allocate savings fund intended for manufacturing property, facility
and equipment purchases.

Financial Projections

The following pages include multiyear projections for income, cash flow, balance
statement, as well as estimated financial ratios. These projections are for the Incorporators
and categorized investors only. Other financial projection on TRIUMPH2000 is available
upon request.
 TRIUMPH2000
Interim Income Statement
(January 2024 - December 2024)

Gross Sales 8,787,850.00

Less: Cost of Goods Sold 4,745,439.00
Cost of Pay-Out 2,636,355.00
Net Income after Costs of 1,406,056.00
Operating Expenses
Labor 168,000.00
Utilities 60,000.00
Insurance
Sales Promotion 120,000.00
Delivery and Transportation
Miscellaneous
Total Expenses 348,900.00

Net Income Before Taxes 1,057,156.00

Less: Income Taxes
Net Income After Taxes

Assumptions:

1 Gross sales based on price of 488.00

per package,

17,575 packages sold in a year

Sales estimates based on 5% market share from 351,514 voting population of CN

2 Cost of goods sold is 270.00 per package (includes ingredients, packaging

materials, labels)

3 Cost of pay-out is based on the total of 30% sorted on 10 levels deep.

4 No honorarium will be drawn by the board of directors in the first year. Some
profits will be re-invested for new market entry and increased inventory.
 TRIUMPH2000
Interim Income Statement
(January 2025 - December 2025)

Gross Sales 43,939,250.00

Less: Cost of Goods Sold 23,727,195.00
Cost of Pay-Out 13,181,775.00
Net Income after Costs 7,030,280.00
of..
Operating Expenses
Labor 168,000.00
Utilities 60,000.00
Insurance
Sales Promotion 600,000.00
Delivery and Transportation
Miscellaneous
Total Expenses 828,000.00

Net Income Before Taxes 6,202,280.00

Less: Income Taxes
Net Income After Taxes

Assumptions:

1 Gross sales based on price of 488.00

per package,

87,875 packages sold in a year

Sales estimates based on 87,878 market share from five (5) provinces.

2 Cost of goods sold is 270.00 per package (includes ingredients, packaging

materials, labels)

3 Cost of pay-out is based on the total of 30% sorted on 10 levels deep.

4 No honorarium will be drawn by the board of directors in the second year. Some
profits will be re-invested for new market entry and increased inventory.
 TRIUMPH2000
Interim Income Statement
(January 2026 – December 2026)

Gross Sales 219,696,250.00

Less: Cost of Goods Sold 118,635,975.00
Cost of Pay-Out 65,908,875.00
Net Income after Costs 35,151,400.00
of..
Operating Expenses
Honorarium 168,000.00
Labor 840,000.00
Utilities 120,000.00
Insurance
Sales Promotion 3,000,000.00
Delivery and Transportation
Miscellaneous
Total Expenses 4,128,000.00

Net Income Before Taxes 31,023,400.00

Less: Income Taxes
Net Income After Taxes

Assumptions:

1 Gross sales based on price of

488.00 per package,

439,375 packages sold in a year

Sales estimates based on 439,375 market share from twenty-five (25)

provinces.

2 Cost of goods sold is 270.00 per package (includes ingredients,

packaging materials, labels)

3 Cost of pay-out is based on the total of 30% sorted on 10 levels deep.

4 Honorarium will be drawn by the board of directors in the second year.

Some profits will be re-invested for new market entry and increased
inventory.
Contingency Plans

While careful planning was involved in setting the strategic goals for
TRIUMPH2000, it may be that these goals are not met. The INCORPORATORS
have decided to set a zone of acceptability for meeting sales and financial
objectives. For both sales and financial objectives, a 10% margin of deviation from
expected gross sales and projected net income. However, if gross sales and net
income are less than 90% of projections, certain actions will be taken. These
actions include:

1. For unacceptable sales levels during the first year: TRIUMPH2000 will
combat this problem by doubling the sales promotions budget. The
INCORPORATORS will personally arrange and carry out these promotions
on monthly basis at especially at peak purchasing times. If sales do not
increase within one month of the sales promotions, the INCORPORATORS will
double its advertising efforts at the social media once a day for one quarter.

2. For unacceptable sales levels in OTHER PROVINCES: After 6 months of

marketing products in other provinces, sales will be evaluated. If not meeting
acceptable sales levels, The INCORPORATORS will consider contracting with
local marketing specialists to carry out the sales promotions and push the
products to the concluded market segment. This contractual relationship
between TRIUMPH2000 and the MARKETING SPECIALIST will be based
upon sales commissions, thereby providing incentive for the specialists to
generate sales of hygiene-care products.

3. For unacceptable business liquidity: In the event that the business lacks
liquidity, The INCORPORATORS will examine their accounts receivable
procedures to ensure that payment periods are just and that payments are
being received in a timely manner. Also, cash flow projections will be
reviewed to determine if unforeseen cash layouts/expenses are undermining
the financial health of the enterprise.

4. For unacceptable returns on equity: If returns on assets and owners’ equity

fall below acceptable levels, The INCORPORATORS will first examine and
compare the per-unit costs of production and marketing with sales prices. If
the margins are too thin, a price change for products sold will be considered.
However, because established products already exist at certain prices, the lost
sales resulting from a price change may make this option unsuitable for
products sold in marginalized segment. The INCORPORATORS will
therefore assess opportunities for minimizing production costs and examine
different marketing/distribution alternatives.