Business Plan

ALYZZA ANNE JANE ROCHA

HANNA AGUILOS
MHARTIE DAVE TAGUPA
RONJE GALANZA
AIVY NIVERA

AMHR’s Sparkling Treasures

002 Mabini St. 2A
Jugaban Carigara, Leyte
Carigara, Philippines 6529
+63 961 733 3060
+1 208 468 8797
amhr@gmail.com
 Table of Contents

I. Executive Summary.....................................................................................1

II. General Company Description.....................................................................2

III. Products and Services..................................................................................5

IV. Marketing Plan.............................................................................................7

V. Operational Plan...........................................................................................14

VI. Management and Organization....................................................................19

VII. Personal Financial Statement.......................................................................20

VIII. Startup Expenses and Capitalization............................................................25

IX. Appendices...................................................................................................26
I. Executive Summary
 II. General Company Description

Our business will be about jewelries. We will be selling different kinds of

jewelries like necklaces and earrings to the public.

Mission Statement

To create exquisite and timeless jewelry pieces that celebrate individuality,

beauty, and cherished moments, while providing exceptional customer service and

fostering a sustainable and ethical approach to business.

Company Goals and Objectives

Our goals and objectives are (1) increase overall sales by a specific percentage

over a defined period, (2) increase brand recognition and awareness among the target

audience by implementing effective marketing strategies, (3) introduce new and

innovative jewelry designs and collections to cater to diverse customer preferences

and stay ahead of market trends, (4) focus on providing exceptional customer service

to enhance customer satisfaction and loyalty, (5) strengthen the online presence of the

jewelry, (6) develop and implement sustainable sourcing strategies for materials,

ensuring responsible and ethical practices throughout the supply chain, (7) collaborate

with complementary businesses such as fashion designers, boutiques, and influencers

to expand reach and tap into new customer segments, (8) streamline internal processes

and operations to improve productivity and reduce costs, (9) stay updated with the

latest trends and market dynamics in the jewelry industry, and (10) set key

performance indicators (KPIs) to track progress towards business goals.

Business Philosophy

It is important to continue evolving and adapting to the changing preferences

and needs of consumers.

Target Market

We will be marketing our products to the millennials. Those people born

between 1981 and 1996. They have their unique preferences and values that we need

to understand if they will be our target market.

Industry Description

Jewelry industry is a growth industry. Changes are common in this industry, be

it short-term or long-term. In the next one to three years, we foresee continued growth

of e-commerce and an increased emphasis on sustainability and ethical sourcing

practices. We also foresee the industry continuing to embrace technological

advancements. In the next five years or more, we foresee virtual reality and

augmented reality to play a larger role in the jewelry industry. The demand for

sustainable and eco-friendly materials will also continue to rise. There will be a

greater emphasis on representing a diverse range of cultures, body types, and gender

expressions to resonate with a broader customer base, and as the digital landscape

expands, ensuring data privacy and cybersecurity will become critical. Of course, our

company will take advantage of these changes by embracing e-commerce, prioritizing

sustainability, innovating with technology, offering customization and personalization,

fostering inclusivity and diversity, building trust and security, and educating and

communicating with customers.

Company Strengths and Core Competencies

Our employees have specialized knowledge and expertise in understanding the

specific needs and preferences of professionals in the corporate world. They have the

experience and understanding of designing and producing jewelry that aligns with the

professional aesthetic and requirements of business environments. Even the owners of

the business are all experts in the field.

Legal Form of Ownership

This business’ legal form of ownership is corporation. We selected this form

because this is a legal entity that is separate from its owners. This means that the

owners cannot be held responsible for the debts of the corporation. This entity

separates the firm’s assets and income from its owners and investors.
 III. Products and Services

Product Description

Jewelry encompasses a wide range of products made from precious metals,

gemstones, and other materials. It includes necklaces, earrings, rings, bracelets, and

more. Each piece is crafted with intricate details, exquisite designs, and skilled

artistry. The materials used, such as gold, silver, diamonds, pearls, and various

gemstones, add elegance and value to the jewelry. From classic and timeless designs

to contemporary and avant-garde styles, jewelry offers a diverse array of options to

suit individual tastes and occasions. Whether it's a delicate pendant, a sparkling

engagement ring, or a statement cuff bracelet, jewelry serves as a form of personal

adornment, symbolizes love and commitment, and captures the beauty and artistry of

human creativity.

Competitive Advantages and Disadvantages

Competitive advantages and disadvantages in the jewelry industry can be

influenced by various factors. Some key factors that can contribute to competitive

advantages and disadvantages are (1) design and innovation as strong focus on unique

and innovative designs can provide a competitive advantage, (2) quality and materials

as using high-quality materials, such as precious metals and gemstones, can give a

competitive edge by ensuring durability, longevity, and perceived value, (3) pricing

and value as offering competitive pricing relative to the perceived value of the jewelry

can attract customers. However, setting prices too high or too low compared to

competitors and market expectations may result in a disadvantage. Next is (4) brand

reputation and trust as customers are more likely to choose reputable brands they can
rely on, (5) customer experience for a seamless and delightful customer experience

can contribute to customer loyalty and positive word-of-mouth., (6) sustainable and

ethical practices as incorporating sustainable and ethical practices, such as responsible

sourcing, fair trade, or environmental consciousness, can appeal to customers who

prioritize these values, and finally, (7) marketing and branding as effective marketing

strategies, including targeted digital campaigns, social media engagement, influencer

collaborations, and compelling storytelling, can help create brand awareness and

attract customers.

Price

Our products’ price will range from two-hundred pesos to five-thousand pesos,

depending on the design and materials used on the jewelry. The customers may buy

the product in our physical stores or from our online store and pay cash on delivery. If

the customer requests a customized jewelry, he or she can pay the partial payment

prior to the customization, then pay in full upon receipt.

 IV. Marketing Plan

Economics

Facts about the industry:

 Total size of the market is 54,656 people.

 Around 40% are millennials.

 Unique and personalized designs are in demand.

 Personalized items are trending in the target market.

 High potential of average size businesses to grow.

 Barriers include:

o High capital costs

o High production costs

o High marketing costs

o Consumer acceptance and brand recognition

o Training and skills o Unique technology and patents

 Overcome barriers with proper financial management.

 Effects of the following to the company:

o Change in technology

Technological advancements enable improved design capabilities,

personalized experiences, and streamlined operations.

o Change in government regulations

 Government regulations related to sourcing, manufacturing practices,

and consumer protection influence supply chain management and production

processes.

o Change in the economy

Economic factors, such as recessions or shifts in consumer spending,

can impact jewelry demand.

o Change in your industry

Industry changes, including fashion trends and evolving consumer

preferences, shape market dynamics.

Product

Features and Benefits

Necklaces

 Unique and exquisite design.

 Anyone who wears it will stand-out among the crowd.

Bracelets

 Symbolic designs.

 Anyone who receives it also receives a message implicitly.

Rings

 Delicate features.

 Anyone who wears it will feel special.

Earrings

 Handmade by famous designers.

 Anyone who uses it will feel powerful.

Customers

Target customers: Millennials

 25-40 years old

 Female

 Carigara, Leyte

 5,000 pesos to 150,000 pesos a month

 Middleclass

 Highschool or College graduates

Competition

 Gold Smith located nearby to the food court Estong Lechon Manok and the

Church Baybay Sta. Cruz Chapel

 Cebuana Lhuillier located at 8M2R+8C3, Carigara Leyte

 MLhuillier Pawnshop located at Real Street corner Esperanze Street, Carigara,

Leyte

 Palawan Pawnshop located at 8M2Q+GC3, Carigara, Leyte

Competitors in the jewelry business can vary in terms of their scope of

competition. While some competitors may compete across the board, offering a wide

range of products and targeting a similar customer base in multiple locations, others

may focus on specific niches, products, customer segments, or geographical areas.

For example, some competitors may specialize in a specific type of jewelry,

such as engagement rings, luxury watches, or handmade artisanal pieces, while others
may offer a broader selection. Additionally, competitors may target different customer

segments, such as millennials, luxury buyers, or those seeking sustainable and ethical

jewelry.

Competitors can also vary in terms of their geographic reach. Some may

operate exclusively online, catering to customers worldwide, while others may have

physical stores or showrooms in specific locations or regions.

Understanding the competitive landscape is crucial for any business to identify

their unique positioning, differentiation strategies, and areas of opportunity. By

analyzing competitors' strengths and weaknesses businesses can tailor their offerings,

marketing, and customer experience to stand out and attract their target market

effectively.

Our business focuses mainly on jewelries and nothing else. Any problems of

our customers related to jewelries will be addressed immediately. Unlike these

possible competitors which do not really focus in the jewelry industry.

Niche

The jewelry business is a vital part of the global landscape, blending artistry,

commerce, and personal expression. Our business focuses on making exquisite and

timeless jewelry pieces that celebrate individuality, beauty, and cherished moments,

while providing exceptional customer service and fostering a sustainable and ethical

approach to business, making it a unique business in the market of Carigara, Leyte.

Strategy

Promotion
 Getting words out to customers is hard, but with the advancing technologies,

social media would surely help.

We will be using different social media platforms to promote our products

daily because, through this, a wider range of people will be reached. Other medias

would also help but that would cost more.

We have identified various low-cost methods to get the most of our

promotional budget, and by far, advertising through social media is the best choice.

We will use other methods too, like, through network of friends in order to

make sure that our business will be known and have a higher chance of growing.

We want our business to be known as a unique and exquisite brand that can be

afforded by middleclass men and women. We want our customers to see us as an

excellent business with excellent products and services.

In addition to advertising, our brand will have its own logo and signage at its

branch. Promotional cards will also be given to customers and the interior design of

the store will be matched with the image that the company wants to project.

A system to identify repeat customers should be implemented. They should be

contacted systematically to inform them of any changes or promotions within the

company in order to maintain customer relationship.

Promotional Budget

A minimum of 100,000 pesos to 200,000 pesos will be spent on the items

listed above.

Before startup, the budget should be around 300,000 pesos to 500,000 pesos

which would be spent in starting a company.

 While the business is ongoing, the budget should be maintained at a minimum

of 500,000 pesos.

Pricing

Prices of our products will depend on the materials used and the design. We

will compute the cost of producing each item, then add a mark-up of at least 10% but

not more than 30%. This pricing strategy fits perfectly with our competitive analysis

and compared with the pricing of our competitors, the price is almost the same.

Price is an important competitive factor as most people make purchases based

on price. Our target market are average people, so, high-end prices will be hard for

them. They may choose to buy products from other stores with low prices.

Proposed Location

Location is important for customers because, no matter how well-known a

business is, if its location is very hard to reach, people will choose to make purchases

from those stores near them. That’s why we chose Jugaban Carigara, Leyte.

If customers come to our place, it will be convenient. Our business will have

its own parking area for customers. It’s also not out of the way as people can pass by

it everytime they go out to buy essentials for their home.

This business’ location is consistent with its image. It is what customers want

and expect. The competitions are located in other barangays. It is a bit distant from

our store, which is better as it will make our business more known to the public.

Distribution Channels
 We will be selling our products through wholesale distribution. Wholesale

distribution involves selling jewelry in bulk quantities to retailers, resellers, or other

businesses. In this channel, the jewelry business acts as a supplier or manufacturer,

providing products to third-party retailers who then sell them to end consumers.

Wholesale distribution allows for wider market reach and the potential to sell larger

volumes of jewelry.

Sales Forecast

The business will grow within three years earning one to five million pesos a

year with proper management and no big changes in the industry. If anything changes,

a profit of around half a million to a million pesos should be reached within three

years, and adaption to market changes and customer preferences should be done.
 V. Operational Plan

Production

Our products will be produced at Brgy. Jugaban Carigara Leyte.

Production Techniques:

 Handcrafted: Traditional jewelry making techniques involve skilled artisans

creating jewelry pieces by hand. This can include techniques like soldering,

stone setting, engraving, and wirework.

Production Costs:

 Materials: Jewelry businesses incur costs for precious metals (e.g., gold,

silver, platinum), gemstones, diamonds, pearls, and other materials used in the

jewelry pieces. Prices fluctuate based on market demand and availability.

 Labor: Labor costs include wages for artisans, jewelers, designers, and other

skilled personnel involved in the production process. Costs may vary based on

location and level of expertise.

 Overhead: Overhead costs encompass expenses like rent, utilities, equipment,

insurance, marketing, packaging, and administrative expenses. These costs are

essential for running the business and supporting the production process.

 Tools and Equipment: Jewelry businesses require specialized tools and

equipment such as bench tools, soldering equipment, casting machines,

polishing machines, and gemstone setting tools. These tools incur upfront

costs and may require maintenance and replacement over time.

Quality Control:

Quality control measures, such as inspections and testing, are essential to

ensure that the finished jewelry pieces meet the desired standards. These costs are

incurred to maintain product quality and customer satisfaction.

Customer Service:

In the jewelry business, customer service is crucial for customer satisfaction

and loyalty. Key aspects include knowledgeable staff, personalized assistance, jewelry

care guidance, sizing and customization services, clear return policies, reliable repair

services, transparent pricing, effective communication, post-purchase follow-up, and

well-trained staff. Good customer service fosters positive relationships, encourages

referrals, and builds customer loyalty.

Inventory control:

Inventory control in a jewelry business involves monitoring stock levels,

tracking sales patterns, setting reorder points, conducting audits, and utilizing

inventory management systems to ensure efficient inventory management and

minimize stock issues.

Product Development:

Product development in the jewelry business involves creating new jewelry

designs, introducing innovative concepts, and expanding product offerings to meet

customer demands. It includes activities such as market research, design ideation,

prototyping, testing, and refining. Product development aims to stay ahead of trends,

offer unique designs, improve quality, and cater to evolving customer preferences.

Location
The qualities we need in a location are as follows: The location must be an open

location, to make our business easy to locate and be famous. Secondly, the location

must be neat and clean to have a good feedback to the customers and also to have an

eco- friendly place to build a business.

The location that well have is a type of location that is easy to locate for our target

marketers, it is a always busy place because it is located near at the school of Jugaban

National High School known as one of the very popular school hear in Carigara,

Leyte.

Physical requirements:

 20,000 square meters space

 Commercial Building

 Water, electricity, and internet

It is important for the location to be convenient for transportation and for

suppliers.

Cost: 100,00 pesos

Business hours: 8:00 am to 8:00 pm

Legal Environment

 Business License, Sales Tax License, Jewelry`s License or Certification,

Bonding and Insurance

 Business License, Sales Tax Permit, Secondhand Dealer License,

Occupational License
  Healthy and Safety Regulations: Occupational Health and Safety,

Hazardous Materials, Personal Protective Equipment (PPE)

Workplace Regulations: Employment Laws, Fire Safety, Ergonomics

Environmental Regulations: Waste Management, Environmental Impact,

Compliance with Environmental Standards

 Hallmarking and Precious Metal Conflict Minerals, Consumer Protection

Loss, Ethical Sourcing and Sustainability, Intellectual Property Rights

 Property Insurance, General Liability Insurance, Jewelers Block Insurance,

Business Interaction Insurance, Cyber Liability Insurance, Workers`

Compensation Insurance

Personnel

 10 employees

 Skilled

 Within the boundaries of Carigara, Leyte

 Screening and interview

 Existing staffs are experts in the field

 Monthly payroll

 Three months training should be completed, with a month on the field

 Designers will design the jewelries, craftsmen will make the jewelries,

salespersons will assist the customers, and accountant will prepare the

financial statement.

 Employees should be skilled in designing and crafting jewelries with an

experience at least one year. They should be hospitable and patient with

customers.
  Contract workers should be hired in case of shortage on hands.

Inventory

 Raw materials should be kept.

 500,000 pesos worth of inventory in stock.

 Less than 10% turnover rate.

 A week lead-time for ordering. Longer for customized orders.

Suppliers

 Aivy Nivera at Tacloban, City

 500,000 pesos of 18 carats gems

 50% prepayment, 50% cash on delivery

 Supplier for more than ayear and so far, no problems.

Back-up suppliers should be available in case of problems. Delivery problems

may occur at any time. Cost will fluctuate through time, and increase in costs will

increase the price of our finished products.

 VI. Management and Organization

Professional and Advisory Support

 Board of Directors:

Alyzza Anne Jane Rocha – Chairwoman

Hanna Aguilos – CEO

Ronje Galanza – Lead Director

 Management Advisory Board:

Mhartie Dave Tagupa – Financial Manager

Aivy Nivera – Network Manager

 Attorney – Ronje Galanza

 Accountant – Hanna Aguilos

 Insurance Agent – Mhartie Dave Tagupa

 Banker – Alyzza Anne Jane Rocha

 VII. Personal Financial Statement

Personal Financial Statement of Alyzza Anne Jane Rocha

Date: May 31, 2023

Assets:

1. Cash and Cash Equivalents: ₱1,000,000.00

- Checking Accounts: ₱500,000.00

- Savings Accounts: ₱500,000.00

2. Investments:

- Stocks: ₱250,000.00

3. Real Estate:

- Primary Residence: ₱1,000,000.00

- Rental Property: ₱500,000.00

4. Vehicles: ₱1,000,000.00

5. Personal Property:

- Jewelry: ₱100,000.00

- Collectibles: ₱100,000.00

- Electronics: ₱50,000.00
 Total Assets: ₱4,000,000.00

Liabilities:

None

Personal Financial Statement of Hanna Aguilos

Date: May 31, 2023

Assets:

1. Cash and Cash Equivalents: ₱1,000,000.00

- Checking Accounts: ₱500,000.00

- Savings Accounts: ₱500,000.00

2. Investments:

- Stocks: ₱200,000.00

3. Real Estate:

- Primary Residence: ₱800,000.00

- Rental Property: ₱500,000.00

4. Vehicles: ₱500,000.00

5. Personal Property:

- Jewelry: ₱100,000.00

- Collectibles: ₱80,000.00

- Electronics: ₱50,000.00

Total Assets: ₱3,230,000.00

Liabilities:

None

Personal Financial Statement of Ronje Galanza

Date: May 31, 2023

Assets:

1. Cash and Cash Equivalents: ₱900,000.00

- Checking Accounts: ₱500,000.00

- Savings Accounts: ₱400,000.00

2. Investments:

- Stocks: ₱250,000.00

3. Real Estate:

- Primary Residence: ₱900,000.00

- Rental Property: ₱500,000.00

4. Vehicles: ₱250,000.00

5. Personal Property:

- Jewelry: ₱100,000.00

- Collectibles: ₱100,000.00

- Electronics: ₱50,000.00

Total Assets: ₱3,050,000.00

Liabilities:

None

Personal Financial Statement of Mhartie Dave Tagupa

Date: May 31, 2023

Assets:

1. Cash and Cash Equivalents: ₱1,000,000.00

- Checking Accounts: ₱500,000.00

- Savings Accounts: ₱500,000.00

2. Investments:

- Stocks: ₱100,000.00

3. Real Estate:

- Primary Residence: ₱400,000.00

- Rental Property: ₱400,000.00

4. Vehicles: ₱200,000.00

5. Personal Property:

- Jewelry: ₱100,000.00

- Collectibles: ₱50,000.00

- Electronics: ₱50,000.00

Total Assets: ₱2,300,000.00

Liabilities:

None

Personal Financial Statement of Aivy Nivera

Date: May 31, 2023

Assets:

1. Cash and Cash Equivalents: ₱500,000.00

- Checking Accounts: ₱250,000.00

- Savings Accounts: ₱250,000.00

2. Investments:

- Stocks: ₱250,000.00

3. Real Estate:

- Primary Residence: ₱500,000.00

- Rental Property: ₱500,000.00

4. Vehicles: ₱250,000.00

5. Personal Property:

- Jewelry: ₱100,000.00

- Collectibles: ₱100,000.00

- Electronics: ₱50,000.00

Total Assets: ₱2,250,000.00

Liabilities:

None

VIII. Startup Expenses and Capitalization

Estimating startup expenses helps you develop a comprehensive financial plan

for your business. It allows you to forecast your initial costs, understand the financial

resources required, and create a budget that aligns with your business goals.

Accurately estimating your startup expenses and capitalization helps

determine how much funding you will need to start and sustain your business until it

becomes profitable. This information is vital when seeking external funding from

investors, lenders, or grants. It allows you to present a clear picture of your financial

needs and demonstrate your understanding of the investment required.

In our business, we will be having a startup expense of ₱1,000,000.00. The

money will come from the personal pockets of the owners. Each owner will invest a

total of ₱200,000.00 making them own 20% of the business. This startup expense is

based on the estimated cost of production, renovation, marketing, hiring, added

altogether. An allowance on the budget was made to make sure that any surprise

expenses will be covered.

Overall, estimating startup expenses and capitalization is a critical step in the

planning process. It helps you set realistic financial goals, secure the necessary
funding, make informed decisions, and establish a solid foundation for the success of

your business.

IX. Appendices

Brochures:
Advertising Materials:
Maps and Photos of Location:
Packaging:
 Survey

(AMHR’s Sparkling Treasures)

1. Do you use jewelry?

o Yes

o No

2. Do you see jewelry as an important thing in fashion?

o Yes

o No

3. Do you see jewelry as budget friendly?

o Yes

o No

4. Do you think a price range of 200 pesos to 5,000 pesos is perfect

for jewelries?

o Yes

o No

5. What are the things you use as a substitute if legit jewels are not

available?