Business Plan New

City Prime
Iron and Steel EST. 2021
Construction
Supply
Purok 5, Ponce st., District IV,
ENGR. ERICA LORAINE B. LACUATA, RCE
Bayombong, Nueva Vizcaya
ericaloraine.lacuata94@gmail.com +63966-6636-547
Saint Mary’s University
SCHOOL OF ENGINEERING, ARCHITECTURE AND
INFORMATION TECHNOLOGY
Civil Engineering Department
3700 Bayombong, Nueva Vizcaya
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY ...................................................................................................... 3
II. BUSINESS OVERVIEW ........................................................................................................ 5
III. MARKET ANALYSIS & COMPETITION ........................................................................ 8
IV. SALES AND MARKETING PLAN/ANALYSIS .............................................................. 10
A. Products Services Offering ................................................................................................ 10
B. Pricing Strategy .................................................................................................................. 10
C. Sales and Distribution ........................................................................................................ 11
D. Advertising and Promotion ............................................................................................... 12
E. Competitive Analysis (SWOT Analysis) .......................................................................... 13
V. OWNERSHIP AND MANAGEMENT PLAN .................................................................... 14
A. Ownership Structure ......................................................................................................... 14
B. Management Plan and Team ............................................................................................ 14
C. External Resources and Services ...................................................................................... 15
D. Human Resources .............................................................................................................. 15
VI. OPERATING PLAN ............................................................................................................ 16
A. Production........................................................................................................................... 16
B. Facilities............................................................................................................................... 16
C. Staffing ................................................................................................................................ 18
D. Equipment ........................................................................................................................... 19
E. Supplies ............................................................................................................................... 20
F. Price List………………………………………………………………………………… 23
Page | 2
I. EXECUTIVE SUMMARY
MISSION
To be a trusted iron and steel business in the region. City Prime Iron and Steel
Construction Supply is to shape public opinion and influence in support of a strong, durables
and sustainable steel and iron supply committed to producing products that meet the needs of
society.
VISION
To become a leader in the region marketplace, we are strategically positioned for growth
and innovation. To establish a thriving brand, we aim to maintain and build on our successes
providing valuable and highly efficient products.
City Prime Iron and Steel Construction Supply is a business that distributes construction
needs which are only made out of metals. The business is focus on selling construction materials
related to iron and steel of different length and width such as iron rod, structural steel, sheet iron
etc. The materials to be sold will be directly supplied by the manufacturer. In terms of employees,
the business will be maximizing 6 employees, 1 cashier, 2 drivers and 3 porters. City Prime Iron
and Steel Construction Supply is a sole proprietorship business and is located at Purok 5, Ponce
st., District IV, Bayombong, Nueva Vizcaya. City Prime Iron and Steel Construction Supply will
Page | 3
be the center for iron and steel needs of your home and infrastructures. For the target market of the
business, target market of the business consists of the contractors working on public and private
sectors, in small and large projects. City Prime Iron and Steel Construction Supply will be a
demand to each of the constructions in the province for it gives the infrastructures a quality steels
and irons. City Prime Iron and Steel Construction Supply products provide you with the highest
quality steels and iron at an affordable price. Offering quality and durable steels and irons in a
cheaper price. Steels including Structural Steels, Light Gauge Steels, Steel Plates, Steel Sire Ropes,
Hot-Rolled Coil, Cold-Rolled Coil, Mild Steel, Rebar Steels and such. City Prime Iron and
Steel Construction Supply will provide customers with the best products we can possibly provide
in order for them to live on a strong and durable home that is both worthwhile and affordable. In
terms of competition, there are less competitors because City Prime Iron and Steel Construction
Supply will be the direct supplier of steel and iron products in the province. Products will be
always in higher sales as it serves as the steel and iron supplier in the locality as well as nearby
provinces.
Page | 4
II. BUSINESS OVERVIEW
Steel is one of the basic building blocks of the modern world. Automobiles, appliances,
bridges, oil pipelines, and buildings, all are made with steel. While steel manufacturing has existed
for centuries, the process for making steel continues to evolve and iron and steel supplies is
emerging.
The Philippines has enormous mineral reserves, both metallic and nonmetallic. Aside from
gold and copper, the country has nearly 300 million metric tons of iron ore reserves. To encourage
more investment in metals mining, the Philippine government allowed 100% foreign ownership of
large-scale mines (subject to certain terms and conditions) in the hopes of attracting quality
operators and ensuring consistent metal output.
Page | 5
The iron and steel industry in the Philippines is critical to achieving inclusive economic
growth and long-term development. Infrastructure construction, power generation and distribution,
transportation facilities and vehicles, and manufacturing machinery and equipment all require
inputs from the industry, which are all critical for a country's long-term growth. Electronics,
appliance manufacturing, and shipbuilding, among other commercial and industrial enterprises,
use the industry's outputs.
The Philippine iron and steel industry aspires to be a majority producer of high-quality and
safe steel products for domestic users by 2030, contributing to the country's long-term development
by producing world-class products for industry and society. This is accomplished when the
industry can supply 70% of the required apparent steel consumption tonnage.
City Prime Iron and Steel Construction Supply will be a business that provides a high-
quality irons and steels that best fits your home and infrastructures. It will be located at Purok 5,
Ponce st., District IV, Bayombong, Nueva Vizcaya. Providing the different types of steels varying
to its shape, length, width, and size. Stocks will be purchase directly to the manufacturer.
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When we talk about construction it is one of the most steel and iron using industry. This
results to increase percentage demand. It is mostly used in construction of houses, buildings,
skyscrapers etc. whom which rely to steel for strength. Steel is also used in roofs and as for iron it
is widely use in the country to reinforce cement and concrete and this can be seen on concrete
houses and on concrete roads.
City Prime Iron and Steel Construction Supply competitors will be the other
construction supplies that are also selling steel and iron supplies. For the products are directly
imported from the manufacturer, some technical capabilities are an important competitive factor
as the quality of steel materials considerably affects customers’ production efficiency and the
nature of end products.
Business target market will be the construction industries in the location and even nearby
places. Furthermore, business products availability will be the home-based construction supplier.
In order to improve the services, the owner may lessen the additional price, or may give discount
to the long-term customer. Or maybe, in seasons like new year and Christmas, the owner may have
promos.
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III. MARKET ANALYSIS & COMPETITION

Nueva Vizcaya is a province in Region II where constructions are done every day, from
public works down to small constructions works. And from those constructions, steels are
metals are the primary to be used for the reinforcement of the infrastructures. Many hardware
stores are located in the locality but there is no store that selling only steels and iron supplies
for construction needs. Therefore, City Prime Iron and Steel Construction Supply is a
business that fits the locality and even nearby provinces because of the products that are to be
sold are directly purchased at the manufacturer to maintain its quality. The target market of the
business consists of the contractors working on public and private sectors, in small and large
projects. City Prime Iron and Steel Construction Supply will be a demand to each of the
constructions in the province for it gives the infrastructures a quality steels and irons.
Steel and irons are the most important element in the constructions because an
infrastructure will not be stand firm when there is no steel that makes the infrastructures
reinforced. It is mostly used in houses, highways, buildings, towers etc. Steel is also used in
roofs, and iron is widely used to reinforce cement and concrete in the country, as evidenced by
concrete houses and concrete roads. City Prime Iron and Steel Construction Supply
products provides you the best steels and iron that you need in an affordable price.
As for Nueva Vizcaya has many constructions firms, in estimation, that every
construction that are ongoing, 70% of it will be purchasing from the business and 80% of the
traders of the products will avail the products, for the products are directly purchased at the
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steel and iron manufacturers resulting to affordable price. There is a large potential that
consumers will having a repeat purchase because of their satisfaction and the products
affordable price. The market might be affected by demographic and economic changes through
positive manner. By steels and irons are the everyday demand in the market, for there is a
construction that is done every single day. Therefore, demographic and economic might not
have a direct affect to the business.
In estimation of the volume and value of the sales in comparison with any existing
competitors, the owner can view many competitors in the province. Since the business itself
will be a direct supplier of steels and irons in the province, the owner can see less competitors.
However, City Prime Iron and Steel Construction Supply will be the direct supplier of steel
and iron products in the province. Products will be always in higher sales as it serves as the
steel and iron supplier in the locality as well as nearby provinces. There is no loss in the
business because steels and irons are having a high demand percentage in the market. And if
competitors may arrive, it will be a small thing because the City Prime Iron and Steel
Construction Supply products price are affordable, and it gives every infrastructure including
your dream home the quality steels and irons.
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IV. SALES AND MARKETING PLAN/ANALYSIS
A. Products Services Offering
City Prime Iron and Steel Construction Supply products provide you with the
highest quality steels and iron at an affordable price. Offering quality and durable steels
and irons in a cheaper price. Steels including Structural Steels, Light Gauge Steels, Steel
Plates, Steel Sire Ropes, Hot-Rolled Coil, Cold-Rolled Coil, Mild Steel, Rebar Steels and
such. City Prime Iron and Steel Construction Supply will provide customers with the
best products we can possibly provide in order for them to live on a strong and durable
home that is both worthwhile and affordable. What will the business offer a price that is
budget friendly and costumers experience steels and irons that are stronger than the usual
one. City Prime Iron and Steel Construction Supply products price are affordable, and
it gives every infrastructure including your dream home the quality steels and irons. Since
the owner work and manage professionally, City Prime Iron and Steel Construction
Supply products are affordable and provide high-quality service and materials.
B. Pricing Strategy
Prices on the specific products varies upon the materials and sizes. From the
smallest one, prices are lower compared to that with larger size. When it comes to pricing,
City Prime Iron and Steel Construction Supply have the budget friendly price that
satisfies costumers infrastructures. The business will make sure that the products that are
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offered will give consumers the best quality in cheaper price for the consumers will not be
problematic in higher price, thus, prices are not heavy in the pocket. Upon the opening of
the business, clients will experience a discount on bulk of items that they will purchased.
Loyal clients will also be receiving a discount upon their 10 th purchased of bulk items on
the specific product. City Prime Iron and Steel Construction Supply will be a steel and
iron supply that products are directly purchased from the manufacturers/suppliers, products
prices are lower than the usual that is purchased from the hardwires. So, income would still
be strong and sufficient for the entrepreneur.
C. Sales and Distribution
Sales and distribution of the business is a very important aspect in the industry.
Sales in the business will be vary on the products. It is where you can view that a business
is success when there is higher in sales. So, City Prime Iron and Steel Construction
Supply unique aspects of the business include individual product selection, quality
assurance and high-quality full-service distribution. Business strategy will be focusing
efforts on the market for the structural and rebar steels in the province. By focusing on the
particular area, the business expects the quick development on the business. Distribution
sales are depending on the sales strategy where it is based personal, consistent sales contact,
with a high emphasis on customer service and relations. As a new distributor, we
understand that we need to prove our value to our customers in order to earn their respect
Page | 11
and business. To begin, City Prime Iron and Steel Construction Supply will operate
with 6 employees, 1 cashier, 2 drivers and 3 porters.
D. Advertising and Promotion
City Prime Iron and Steel Construction Supply products will be advertised
through social media platforms to promote the products in orderly manner, the reason is
that almost all of us have access social media already and it is the most convenient way to
introduce our products to the public. Because social media is a widespread and globally
powerful information disseminator as well as a good advertising platform. City Prime Iron
and Steel Construction Supply will use Facebook page, and Instagram as well to help
clients reach out us for orders and other negotiation that will happen as well as other
activities done in the business. Also, a paid advertisement on local radio stations is to be
done to promote the business. We're also planning a merch and materials sale to help
City Prime Iron and Steel Construction Supply advertise and promote our company.
But the most powerful way to advertise the business is through WORD OF MOUTH that
will come from the satisfied customers which can help in the promotion of the business.
Page | 12
E. Competitive Analysis (SWOT Analysis)

STRENGTHS WEAKNESSES
o Products are directly purchased from the o Products are only available in steels and
manufacturer. irons variations for construction supply
o Products are durable and strong compared to construction supply that has
o Offering the best steels and irons best complete constructions materials.
fits the infrastructures of your choice. o Quality issues and even high rate of taxes
on the products.
Prioritize the durability of the steels and
o
irons
o Products are always in demand.

OPPORTUNITIES THREATS
o Seeking for the strength of each of your O Competitors from the nearby locality.
dream home, building, skyscrapers and Negative feedback from the unsatisfied
etc. o customers
o Least competitors that offers the same o Price sensitivity and demand volatility
products that is directly purchased from The market can deteriorate as more
o
competitors emerge.
the supplier.
o Stable cash flow
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V. OWNERSHIP AND MANAGEMENT PLAN
A. Ownership Structure
City Prime Iron and Steel Construction Supply is a sole proprietorship business, a legal
type of structure of business wherein one person is responsible to manage the business also to the
expenses up to the capital of the business. The proprietor is the best one accountable to the money
owed or any issues concerning to the business. There are risks of being by alone in the business
specially a startup business, however with dedication, perseverance, research, and notable strategy,
it is able to stand on its own.
B. Management Plan and Team
To be capable of stand on its own, a best management plan and team are important a part of a
business. As for the owner, she'll control the income and advertising and marketing and because
the workplace manager. However, in terms of employees, the business will be maximizing 6
employees, 1 cashier, 2 drivers and 3 porters in physical stores. Cashier is responsible to assist the
customer’s concerns, queries, for invoice and receipt, in addition to that, he/she must be at least 22
years of age, high school graduate, and has experience being a cashier. Porters are responsible in
assisting the costumers’ purchases of steels. Drivers will serve as the delivery man as well as one
porter, who will transport bulk number of steels that has purchased. They need to be at least 22
years old and have a driver's license. In terms of employee salary, it should be weekly salary (6
Page | 14
days) based on the standard or minimum wage, plus bonuses. The first bonus is earned when they
meet or exceed their monthly sales quota, as well as holiday bonuses.
C. External Resources and Services
The business will be consulting an accountant to help them organize and conduct an in-depth
sales and marketing analysis. The accountant will perform accounting procedures such as auditing,
bookkeeping, and financial statement preparation. He or she will also provide financial advice in
order to help the business grow and become profitable. His or her salary will be ₱18,000.00
monthly excluding Sundays. For the assurance of the steels for its strength of each, civil engineer
is responsible for that.
D. Human Resources
A business most valuable asset is its human resources. A business will run more smoothly if it
hires excellent, trustworthy, and timely employees.
• Cashier- he/she responsible to assist the customer’s concerns, queries, for invoice and
receipt somehow in dealing with the costumers’ concerns. With an estimate salary of
₱10,800.00 monthly excluding Sundays.
• Porters- they are responsible in carrying the costumers’ purchased of steels and
somehow, they can help the driver in delivery. With an estimate salary of ₱8,000.00
monthly excluding Sundays.
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• Drivers- they are the person in charge of transporting or distributing a customer's bulk
orders. With an estimate salary of ₱8,000.00 monthly excluding Sundays.
VI. OPERATING PLAN
A. Production
City Prime Iron and Steel Construction Supply is a business, concerning to steel and
iron supplies which not really produces external materials rather the materials are being
purchased directly from the manufacturers. When we are talking about distribution, City
Prime Iron and Steel Construction Supply will be a pure steel and iron material distributor.
The business will not produce its signature products instead, it will source them from nearby
producers and within the country. If there are high demands, such as new local projects and
road construction or repairs, more supplies must be available. In some instances, there are times
that the arrival of stocks will be delayed, City Prime Iron and Steel Construction Supply
will try to have enough deliver for such instances ahead as forecasts are usually present and
could lay out capability deals upon consumer requests.
B. Facilities
City Prime Iron and Steel Construction Supply will be located at Bayombong, Nueva
Vizcaya along Pan-Philippine Highway. The main branch vicinity will be located close to the
suburbs of the capital and close to other suburbs, so it is convenient for people in the capital
Page | 16
and suburbs to find and notice our offices. The store has a warehouse at the side for the stocks.
Maintenance for the store and warehouse may reach a cost of ₱30,000.00 more or less.
In addition, official papers and permits for the venture, includes the following;
• Barangay Clearance
• Building Permit
• Occupancy Permit
• Sanitary Permit
• Fire Clearance
• Zoning Clearance
• BIR Registration
• Mayor’s Permit
• Social Security System Registration
• Department of Trade and Industry Registration
• Tax Declaration of the property
• Cedula for sole proprietorship
• Trucking permit/Delivery Permit (for vehicles delivering our goods)
Renewal of permits will be required annually, and this includes the following;
• Mayor’s Permit
• Sanitary Permit
• Cedula for sole proprietorship
Page | 17
• Barangay Clearance
• Fire inspection certificate
• Building Inspection fee
• Tax Declaration of the property
C. Staffing
OWNER
 Handles decision making and purchases.
 Responsible for the organization of business documents
 Responsible for additional research to improve the product.
 Ensures consistency of merchandise and relentlessly appears for providers
of decrease costs for the equal quality.
PORTERS
 Organize and sorts of products in the store and warehouse.
 Guides clients in their needs
 One who manage to advertise the products
 Handles the stores and warehouse maintenance supplies.
 Carries out duties outside the store as assigned by the owner
 Helps the driver delivers the purchased materials.
Page | 18
CASHIER
 Provides the financial statements and reports of the business.
 Reports financial status of the business daily and tallies day-to-day
revenues.
 Responsible for the guide of the business to aim a high profit.
DRIVERS/DELIVERY TEAM
 Handles local delivery
 Handles stocking of products
 Responsible for the vehicle maintenance
D. Equipment
City Prime Iron and Steel Construction Supply will be a hardware-oriented business
mainly on steels and irons. A business transport vehicle should be present to assist with all
shipments and trucking services that the company requires and provides like wheel lifter
machine. Somehow, a weighing scale will be used to weigh some materials in the store and
warehouse.
Page | 19
E. Supplies
Products will be directly purchased from the manufacturer. City Prime Iron and Steel
Construction Supply products provide you with the highest quality steels and iron at an
affordable price. Offering quality and durable steels and irons in a cheaper price.
List of major products to be offered:
Structural steels
Light gauge steels
Page | 20
Steel Plates
Steel Sire Ropes
Hot-Rolled Coil
Cold-Rolled Coil
Page | 21
Mild Steel
Rebar Steels
Page | 22
F. Price List:
Page | 23
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City Prime

Iron and Steel EST. 2021

II. BUSINESS OVERVIEW ........................................................................................................ 5

III. MARKET ANALYSIS & COMPETITION ........................................................................ 8

IV. SALES AND MARKETING PLAN/ANALYSIS .............................................................. 10

A. Products Services Offering ................................................................................................ 10

B. Pricing Strategy .................................................................................................................. 10

C. Sales and Distribution ........................................................................................................ 11

D. Advertising and Promotion ............................................................................................... 12

E. Competitive Analysis (SWOT Analysis) .......................................................................... 13

V. OWNERSHIP AND MANAGEMENT PLAN .................................................................... 14

A. Ownership Structure ......................................................................................................... 14

B. Management Plan and Team ............................................................................................ 14

C. External Resources and Services ...................................................................................... 15

D. Human Resources .............................................................................................................. 15

VI. OPERATING PLAN ............................................................................................................ 16

providing valuable and highly efficient products.

II. BUSINESS OVERVIEW

operators and ensuring consistent metal output.

use the industry's outputs.

results to increase percentage demand. It is mostly used in construction of houses, buildings,

houses and on concrete roads.

nature of end products.

III. MARKET ANALYSIS & COMPETITION

have a direct affect to the business.

your dream home the quality steels and irons.

IV. SALES AND MARKETING PLAN/ANALYSIS

A. Products Services Offering

be strong and sufficient for the entrepreneur.

C. Sales and Distribution

assurance and high-quality full-service distribution. Business strategy will be focusing

with a high emphasis on customer service and relations. As a new distributor, we

with 6 employees, 1 cashier, 2 drivers and 3 porters.

D. Advertising and Promotion

E. Competitive Analysis (SWOT Analysis)

manufacturer. irons variations for construction supply

o Products are always in demand.

o Stable cash flow

V. OWNERSHIP AND MANAGEMENT PLAN

it is able to stand on its own.

B. Management Plan and Team

meet or exceed their monthly sales quota, as well as holiday bonuses.

C. External Resources and Services

is responsible for that.

hires excellent, trustworthy, and timely employees.

₱10,800.00 monthly excluding Sundays.

monthly excluding Sundays.

orders. With an estimate salary of ₱8,000.00 monthly excluding Sundays.

VI. OPERATING PLAN

could lay out capability deals upon consumer requests.

• Social Security System Registration

• Department of Trade and Industry Registration

• Tax Declaration of the property

• Cedula for sole proprietorship

• Trucking permit/Delivery Permit (for vehicles delivering our goods)

• Cedula for sole proprietorship

• Fire inspection certificate

• Building Inspection fee

• Tax Declaration of the property

 Handles decision making and purchases.

 Responsible for the organization of business documents

 Responsible for additional research to improve the product.

 Ensures consistency of merchandise and relentlessly appears for providers