Edited Financial Plan

COLLEGE OF ENGINEERING AND
ARCHITECTURE
ARCHITECTURE DEPARTMENT
ARCH522: BUSINESS MANAGEMENT & APPLICATION FOR ARCHITECTURE 2
NITIBO
DESIGN
STUDIOS
APRIL 2023
342 MAGNOLIA STREET, XAVIER HEIGHTS
CAGAYAN DE ORO CITY, PHILIPPINES 9000
0977-3448-235/ 119-0834-34378
nitibodesignsco@gmail.com
TABLE OF CONTENTS
EXECUTIVE SUMMARY
1. Company Description……………………………………………………………...... 2
1.1Mission and Vision……………………………………………………………………. 2
1.2 Objectives……………………………………………………………………………. 3
1.3 Keys to Success…………………………………………………….......................... 4
2. Organization and Management Team…………………………………………… 7
2.1 Organizational Chart………………………………………………………………. 7
2.2 Roles and Responsibility…………………………………………………………… 8
2.3 Company Ownership……………………………………………………………… 10
3. Products and Services……………………………………………………………….. 11
3.1 Company Location………………………………………………………………… 11
3.2 Company Facilities…………………………………………………………………. 12
3.2.1 Software…………………………………………………………………………. 14
3.2.2 Hardware…………………………………………………………………..…... 15
3.3 Service Description…………………………………………………………………. 16
3.4 Firm Capabilities…………………………………………………………………….. 24
4. Market Analysis……………………………………………………………………….. 25
4.1 Marketing and Sales Strategy…………………………………………………….. 25
4.2 Positioning Statement………………………………………………………………. 26
4.3 Competitive Advantage………………………………………………………….. 26
4.4 SWOT Analysis………………………………………………………………………... 27
4.5 Marketing Plan………………………………………………………………………. 28
4.5.1 Services………………………………………………………………………...... 28
4.5.2 Pricing……………………………………………………………………............ 28
4.5.3 Promotional…………………………………………………………………...... 30
4.5.4 People…………………………………………………………………………… 31
4.5.5 Physical Evidence……………………………………………………………... 32
4.5.6 Process…………….…………………………………………………………….. 35
4.6 Logistics and Operations Plan……………………………………………………. 38
4.6.1 Logistics...……………………………………………………………………...... 38
4.6.2 Operations...……………………………………………………………………. 39
5. Financial Plan and Projections……………………………………………………... 40
5.1 Projected Financial Statements………………………………………………….. 40
5.1.1 Income Statements…………………………………………………………… 40
5.1.2 Cash Flow Statements………………………………………………………... 43
5.1.3 Balance Sheets……………………………………….................................... 44
5.1.4 Assumptions to Projected Financial Statements……………….............. 46
5.2 Break-even Analysis………………………………………………………………… 49
5.3 Return on Investment Analysis……………………………………………….…… 50
5.4 Return on Equity Analysis…………………………………………………………... 50
5.5 Source and Uses of Funds…………………………………………………………. 52
5.6 Summary of Analysis………………………………………………………………... 54
TABLE OF CONTENTS
APPENDICES…………………………………………………………………...... 55
.
A. Company Brochure……………………………………………………............. 55
B. Curriculum Vitae of Key Employees………………………………………..... 56
C. List of Company Equipment ………………………………........................... 63
D. Certificate of Business Name Registration………..................................... 69
E. Copy of Advertisements……………………………………………………...... 70
F. Information Supporting the Growth of your Industry
and/or Product and Services………………………………………………... 71
G. Key Company Agreements………………………………………………...... 72
H. Company Logo and Business Card………………………………………..... 80
I. Audit Certification………………………………………………………………... 81
J. Plagiarism Detector Result……………………………………………………... 82
K. Result for Grammar and Proofreading…………………………………….... 83
RESOURCES……………………………………………………………………... 84
..
1. Company Firm Benchmarking Tool………………………............................ 84
2. Company Compensation Report………………………….......................... 86
3. Charging of Services…………………………………………………………..... 88
4. Salary Breakdown…………………………………………………………......... 90
REFERENCES…………………………………………………………………… 91
….
LIST OF FIGURES
Figure No. Page No.

1 Service 4
2 Style 5
3 Client’s Satisfaction 5
4 Source 6
5 Organizational Chart 7
6 Company Location 12
7 Reception Area 13
8 Main Conference Room 13
9 Small Conference Room 14
10 Studio/Working Space 14
11 Company Break Room 15
12 Company Software 16
13 Company Hardware 16
14 Service Description 17
14.1 Client consultation or briefing 18
14.2 Initial Studies 18
14.3 Design Visualization 19
Detailed Process of Project Management
15
Service 20
16 Marketing Framework 26
17 Competitive Advantage 28
18 SWOT Analysis 29
19 Partnerships 32
19.1 Billboard 32
19.2 Instagram Account 33
20 People 34
21 Exterior Perspective 35
21.1 View of the driveway 35
21.2 Ground floorplan and 2nd floorplan 36
21.3 Front, Left, Right and Rear Elevations 36
22 Project Management 37
23 Break-even Analysis Year 1 58
23.1 Break-even Analysis Year 2 58
23.2 Break-even Analysis Year 3 58
24 Return of Assets 60
24.1 Return of Equity 60
25 Funds 61
LIST OF TABLES
Table No. Page No.

1 Service Rates 30
Project Management fees on percentage
2 basis (1% of Budget cost) 31
Reimbursable Expenses + 10% service
3 31
charge
4 SCI For the Years Ended 1 to 3 42
4.1 SCI For Direct Cost 43
4.2 SCI For Admin and Operating Cost 44
5 Statement of Cash Flows Year 1 to 3 46
5.1 Cash Flow from Investments 46
5.2 Cash Flow from Financing Activities 46
6 Statement of Financial Position Year 1 to 3 47
6.1 Noncurrent Assets 48
6.2 Liabilities and Equity 48
6.3 Noncurrent Liabilities and Equity 48
7 List of Partners 49
8 Nitibo Design Studio’s Assets 49
9 Revenue for Year 1 52
Return on Investment Analysis and Equity
10 59
Analysis
11 Source Of Funds 61
12 Note from accounting 99
EXECUTIVE SUMMARY
The Nitibo Design Studios offers an interior design service that provides a tropical
and vernacular approach to interior schemes while incorporating the use of indigenous
materials that are locally produced. The firm’s desire to develop locally and engage with
its neighborhood. The firm specializes in residential spaces such as living rooms, dining
areas, bedrooms, home offices, and more. Additionally, it offers services to corporate
offices, retail stores, and medical facilities.
The target market is entrepreneurs, professionals, homeowners, and builders. Nitibo
Designs will deliver quality furniture and interior design services for both big and small
clients. As a result, the company's primary duties are focused on project management,
promoting the use of locally created products and materials that reflect Filipino culture
and identity, and providing interior services that produce innovative, efficient, and
sustainable solutions. This will become a reality with the aid of digital design software.
In order to establish Nitibo Interior Designs, the company's founders are putting in a
total of 3,000,000 Pesos and acquiring Php 1,000,000 from a bank for a 3-year loan. Only
95% of the income may be collected at the end of the first year, and the rate of collection
will rise by 2.5% annually but be limited to 95%. 2% of the uncollected balance was
allotted with provisions. The business has to make P15.8 million in sales in Year 1, P17.1
million in Year 2, and P18.6 million in Year 3.
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2. ORGANIZATION AND MANAGEMENT TEAM
The Nitibo Design Studios is a partnership and that is composed of six partners who
are talented architects whose goal is to bring any projects to reality. The company designs
furniture and materials out of local and native supplies. Nitibo Designs Studio offers interior design
services in tropical and native aesthetic composition. The tropical architectural style will be the
company's primary aesthetic, but it won't end there. The company will make indigenous materials
the focal point in both tropical designs and other architectural aesthetics.
1.1 Mission and Vision

Mission
To provide top quality client service and highlight local

craftmanship and design through responsible practice, collaboration, and
continuous drive for research.
Vision
A globally recognized design firm viewed for high quality and distinctive
design, along with establishing value among clients and colleagues in practice of
design.
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1.2 Objectives
In this section identifies the Nitibo Design Studios goals for better
service of the company. This was done through sharing of separate aims of
each incorporator and then combine into a common goal. The company’s
strategic goal is as following.
Short Term Objectives
1. To provide consumers with interior design options that work with the local
context and help them realize the ideas and objectives they have for their
spaces.
2. Make interior design process with clients less stressful and make the post-living
conditions in spaces we designed, improve their quality of life.
3. Promote the use of products produced locally and materials that are
reflective of Filipino identity and culture through collaboration between
local artisans.
4. Deliver services while considering quality, sustainability, reasonable cost,

and safety considerations into account. Perform the services in a way that
satisfies the capacity of the firm while being efficient and effective.
Long Term Objectives

1. The long-term objective of Nitibo Design Studios is to grow the company's
market each year. By the third year of the company, the (3) three million
dollars that the founders invested will have increased twice as much. If this
transpires, the company can acquire new technology by Year 3 in order to
provide interactive digital renderings to clients that will draw in high-end
clientele.
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1.3 Keys to Success
The company’s success can be determined through bringing the

authenticity of every project that the clients dream of. The goal of the company is
to satisfy the needs of its customers, and this is accomplished by offering those
customers the highest caliber services possible. The Nitibo Design Studios is
committed to:
1. Provide services that are technologically abreast in the global

market.
Figure 1. Service
Source: AenZy.com
A happy and satisfied client can be determined on how well- mannered and high
detailed service a company delivers. The company provides services that are
technologically abreast in the global market. To keep up with the trends, the Nitibo Design
Studios offers wide variety of authentic and locally made designs that are Nature/Native
based but functional solutions and can compete with the global design standards. With
the global market sky rocketing, the demand of innovative, effective, and sustainable design
solution is highly recommended.
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2. Utilizing a diverse staff of architects to provide a wide variety of product styles;
Every client has diverse design style to commit, and it is up to the company to deliver a vast
variety of design style that can also bring the charm and character of the client and as well as the
company. As nature/native base design firm, clients are inclined to bring authenticity to their
homes and the company can comply to their unique demands of styles.
3. Ensuring customer satisfaction so they stay loyal to the business and support spread
the word about the team's excellent work to other potential clients.
Figure 3. Client’s Satisfaction

Source:Questionspro.com
The degree to which customers are satisfied can be used to measure a company's
performance. Never should a firm underestimate the value of client satisfaction. The only person
who can attest to your exceptional service is a satisfied customer. A satisfied customer will
unquestionably be a loyal one. A loyal client will frequently purchase your products and services
and will become your brand's ambassador.
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4. Have a large array of global connections.
Figure 4. Source
Source: Alamy.com
The company’s success can be determined on how wide and large its connections can
get. The focus of the company doesn’t only limits to providing high quality service but also to
showcase the country’s design character and style to the whole world. The Nitibo Design Studios is not
afraid to try different strategies that can bring high quality service to upgrade. Having a large array
of global connections can help the success of the company to be recognize as one of the top
performing architectural and interior design consulting firm in the country.
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This portion accentuates the organizational composition and the connection

within the Nitibo Design Studios in attaining the aspirations of the business. The chart
below provides information on the relationship between the associates indicating the
workflow to come up with better design services and comprehensive interior design
solutions.
2.1 ORGANIZATIONAL CHART
FIGURE 5: Organizational Chart
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2.2 ROLES AND RESPONSIBILITY
2.2.1 Senior Interior Architect. The design for projects is created by senior interior
architects. Their duties may also include visiting project sites to ensure success
and completion, designing and modifying blueprints, and examining
specifications. Although they share some duties with interior designers, interior
architects follow a very different career path and are responsible for the
functionality, safety, and aesthetic of the building. This requires a great deal of
expertise and careful thought throughout the design process. To perform these
duties, interior architects need specialized training, which is typically acquired
through earning degrees and industry-specific certifications.
2.2.2. Project Manager. A project manager oversees planning and supervising

projects within an organization, from conception to completion. They coordinate
people and processes to complete projects on time, within budget, and with
desired outcomes that are aligned with objectives. The administrative aspects of
an interior design project are overseen by an interior design project manager.
Their specific responsibilities include developing a timeline, consulting with
your client to determine their budget and space goals and assembling a team to
decorate the client's home or business. As an interior product design manager,
one must have excellent managerial skills as well as a thorough understanding of
interior design, style, and decor. They should also have strong relationships with
a variety of vendors, including furniture retailers, artisans, florists, and artists.
2.2.3. Design Research Director. The creation of user experiences for a variety of
applications is supported by the design researcher. To assist in the creation of
user journeys, wireframes, and prototypes, he or she researches important market
trends as well as the user experience strategies of competitors. In order to make
sure that design work is based on organizational standards and protocols, he or
she collaborates with the Service Design and Experience Design teams.
Additionally, he or she gathers information to evaluate the effectiveness of user
interfaces and takes part in networking activities to broaden their knowledge of
the design industry
2.2.4. Visual Merchandiser. A visual merchandiser specializes in the development

and communication of visual concepts for a project. Some of their
responsibilities include coordinating with marketing and purchasing
departments. They may also work with architectural teams to design store spaces
and assemble visual displays. A Visual Merchandiser is responsible for planning
and building displays that maximize impact on a day-to-day basis. They move
equipment, create signage, arrange lighting and work with suppliers -all while
maintaining close connections at wider retail levels such as negotiating prices or
discussing marketing strategies.
2.2.5. Interior Design Director. This includes supervising interior design staff and
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performing numerous high-level creative tasks. The Interior Design Director must
meet with clients, meet with staff, give instructions, and keep track of the status
of projects and plans as part of your duties as an interior design director. They
also provide clarification or make final decisions regarding furniture selections,
finishes, room arrangements, and other design ideas. Other responsibilities
include leading a project's conceptual stage and monitoring the outcomes through
coaching and mentoring. Leading design projects and teams are senior interior
designers or executive directors of interior design. Their duties might include
developing a project's technical components or managing project presentations
and budget analysis.
2.2.6. Technical Designer. A technical designer collaborates with the design team,
manufacturers, and vendors to create products from creative ideas. Their primary
responsibilities may include reviewing design work, working with the
manufacturer to develop a plan, and ensuring that the finished product meets
quality standards. To ensure project success, a Technical Designer will create
technical documentation and communicate project progress to team members.
Experience in construction documentation, proficiency in Revit, and a desire to
work with a team of architects in a highly creative, collaborative environment are
required.
2.2.7 Finance Manager. They oversee an organization's financial health and help
ensure its long-term viability. Financial managers have a wide range of
responsibilities, and what they do is heavily influenced by the type of
organization. A financial manager in a small business may be responsible for the
entire financial operation, whereas in a large corporation, a financial manager may
specialize in a specific aspect of finance, such as financial reporting or cash
management.
2.3 COMPANY OWNERSHIP
The Nitibo Design Studio is an architectural firm that provides design services.
The business is generated through a partnership type of ownership that was formed by
six licensed architects and professional interior designers in collaborating and their
combining skills, knowledge, and resources to pursue company goals. The partners
share the workload and responsibilities of the business, such as marketing, design
services, and project management, and divides up specific design projects based on
their areas of expertise.
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3. PRODUCTS AND
SERVICES
The company's location and facilities, as well as the hardware and software used
in business operations, are covered in this section of the business plan. To broaden its
scope of interest even further, it offers descriptions of the company's services.
3.1 Company Location
Figure 6. Company Location

Source: Google Maps
Nitibo Design Studios is situated near SM Uptown, which is situated near SM Uptown
and is surrounded by numerous shopping centers, coffee shops, and other establishments in the
Magnolia Street Xavier Subdivision of Cagayan de Oro City. The firm was situated adjacent to the
main highway, which makes it accessible and easy to spot. Since it’s on the main road,
transporting local products from downtown CDO and Bukidnon flows easily, which
potentially lessens time and cost constraints. Aside from these, nearby prominent locations like SM
Uptown are nearby. The locations were picked strategically since most businessmen and
businesswomen in the entire city live in the Uptown District. With that, the company's location
will be advantageous to attract more customers in the future, and it’s also an area that has a lot
of residential units, such as subdivisions and apartments, that would be our potential target
market.
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3. PRODUCTS AND
SERVICES
3.2 Company Facilities
The Nitibo Design Studios uses equipment and facilities that aids the company on
our designing project and planning to provide a real-time effective plan that reflects the
client and environmental needs.
Figure 7. Reception Area
This area greets visitors and guide them on their way to meetings. Aside from
that, it can also provide a waiting area for guests, delivery, and pick-up of parcels. The
reception area features the Nitibo’s design in its furniture and interior.
Figure 8. Main Conference Room
The main conference room is intended for more than ten participants in a
meeting. This is often used for huge projects or clients and companywide meetings. It
can, however, be used for any other events or gatherings in the office.
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3. PRODUCTS AND
SERVICES
Figure 9. Small conference Room
Smaller in capacity, this private space share the same purpose with the main
conference room. This is intended for short and 2-3 people meetings with either the
employees themselves or with clients. The place could also serve as an alternative working
space for clients when it is not occupied.
Figure 10. Studio/Working Space
The studio is basically the area where all the employees are situated to work
on their individual role. The open-space planning provides a way for easier
communication and collaboration. It is where the company hardware such as
computer sets are situated.
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3. PRODUCTS AND
SERVICES
Figure 11. Company Break Room
The area is intended for employees to use the breakroom as a place relax,
unwind and get a few moments to themselves. It is also intended to use as the space
to socialize, have a laugh, and catch up with other workers. It is important to provide
comfortable seating areas that work for both.
3.2.1Software
Figure 12. Company Software

The company is equipped with several design software for 2D and 3D
modeling. This helps to make the design process easier and faster compared to
manual drawing process. Such software programs
are bought with license keys.
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3. PRODUCTS AND
SERVICES
3.2.2Hardware
Figure 13. Company Hardware

The studio requires several devices to produce outputs for clients. This includes
high-pec laptop and pcs; projectors for presentation purposes; 3D printers; and
drafting tables for hand-drawn drawings.
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3. PRODUCTS AND
SERVICES
3.3 Service Description
The company services can be divided into three categories: pre-design services, design
services, and supplemental services. Such services can be then categorized by different roles that
all align into works rendered by interior designers. The company specializes in residential,
commercial, corporate, and hotel/resorts projects. Instead of manufacturing our own product, Nitibo
Design Studios will work together with local manufacturers for the materials, furniture, and
accessories to highlight their craftmanship, lessen carbon footprint, and avoid environmental
and ethical issues of mass-produced furniture. The partnership, in return, will provide a
reasonable discount to our clients that chooses to buy products from our partnered local
artisans.
Figure 14. Service Description
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3. PRODUCTS AND
SERVICES
Figure 14.1. Client consultation or briefing Source:

Diversifyoss
This stage in Pre-Design Services is intended to obtain client requirements

and project briefs. This stage also includes discussion of the project budget and
timeline
.
Figure 14.2. Initial Studies
Source: Nitibo
Before finalization of the design, interior design concept should be approved
by the client. This includes preparation of mood boards (color and material
detailing) and presentation of basic floor plans, simple elevations, and rough
sketches as shown on the figure.
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3. PRODUCTS AND
SERVICES
Figure 14.3. Design Visualization

Source: Nitibo
With highly technical-skilled employees, the company is capable of
producing 3D graphical presentations, be it manual or digitalized.
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3. PRODUCTS AND
SERVICES
Project Management Services

Using the RIBA Plan of project management, the service will start at consultation
with the client. The table below show Complete detailed process of the service offered
with corresponding 4 task in column 1. The first row is the process of each project.
Figure 14.4 Detailed Process of Project Management Service
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3. PRODUCTS AND
SERVICES
3.1.1 Strategic Planning Phase. This stage only involves the client team. Strategically, the
main objective of stage 1 in the process is to confirm that a project, or some other method,
is the most effective way to meet the client's requirements. Simply, it contains information
about the client(s), the project's nature (primary residence, vacation home, office, etc.), its
location, the function of the space, and the scope of the design work. To develop the
client requirements and business case that will achieve these, the client team may consult
with a wide range of professional advisers.
3.1.2 Preparation and Briefing. The goal of this stage is to create the data that the design
team will require to start the design process at Stage 2. To uncover the full range of
briefing considerations and show that the place can accommodate the spatial
requirements, feasibility studies may be necessary.
The first step in the research process is to identify each user, from the primary
occupants to visitors and friends. In a residential design, a profile for each of the main
occupants may be created, detailing details such as their age and sex, hobbies, habits,
need for privacy, preferred styles and colors, and an inventory of belongings and
furnishings that must fit in the redesigned space. This phase entails client and other end-
user interviews, surveys, inventories, and more extensive research. Finding out the project's
goals, needs, viability, scope, and restrictions (whether regulatory or financial) is crucial.
'Bubble diagrams' can be used to sketch out spatial relationships, traffic flow patterns,
and activity and spatial adjacencies. Depending on the requirements of the client and the
project, different skills will be needed.
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3. PRODUCTS AND
SERVICES
3.1.3 Concept Design Phase. Following approval of the design program, the concept
development phase starts. This stage can be divided into two stages:
a) Ideation stage
b) Concept Statement with Schematics
Concept development phase starts following approval of the Design Program
Document. The initial "ideation" stage entails generating design ideas (verbally, visually,
or in writing), weeding out unworkable ones, and then developing the workable ones until
one or more main design concepts are apparent.
The primary ideas and methodology guiding the suggested design solution are
expressed in a written Concept Statement, which serves as the main design concept.
Schematic Drawings, which depict the siting, orientation, space allocations, circulation
patterns, spatial and activity relationships from various perspectives, color schemes, and
other significant details of the proposed design, are included with the Concept Statement.
They are quick sketches and graphic visualizations of these main ideas. By including
proportion and personality, bubble diagrams are made more refined.
The client receives one or more design concepts in the form of a proposal for review,
comment, and approval. The proposal might include:
a) The Design Concept Statement and any accompanying concept drawings, such as
scaled floor plans with furniture placement and mood boards with color, material,
and finish schemes.
b) The proposal may also include additional sketches, perspective drawings, full-color
renderings, 3-D models, or computer simulations, depending on the size of the
project.
c) Estimated project costs, including labor, materials, and a fee for design services. At
this point, project costs can only be estimated because exact costs won't be known
until after contractors, suppliers, and installers receive bids on the final working
drawings.
d) A timeline with the events in their proposed order and conclusion.
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3. PRODUCTS AND
SERVICES
3.1.4 Construction Documentation Phase. This phase depends heavily on the lead
designer and the design team. When Stage 4 coordination calls for client decisions, the
client team is involved. If the chosen procurement route necessitates early contractor or
specialized subcontractor inputs, the construction team may also be involved. To ensure
that the engineering and architectural information prepared at Stage 3 is spatially
coordinated before the detailed information needed to manufacture and decorate the space
is produced at Stage 5, Stage 4 primarily focuses on testing and validating the
Architectural Concept.
Iterations of the design may be necessary to ensure that the Cost Plan is in line
with the Project Budget. Design studies should be coordinated with cost exercises and the
development of the outline specification. Product manufacturers and specialized
subcontractors may be consulted to test or validate design elements. Apart from minor
adjustments at interfaces, a spatially coordinated design enables each designer, including
specialized subcontractors, to finalize their information at Stage 4 without needing any
additional significant design iterations.
3.1.5 Manufacturing and Construction Phase. The creation of final working drawings,
also known as "construction drawings,” are finalized in this stage. The design is finished by
the design team and the specialized subcontractors hired by the contractor. In addition to
all drawing notes required for the construction and installation of the design, these may
include perspective drawings, site plans, floor plans, reflected ceiling plans (showing lighting
and ceiling fixtures), sections, elevations, and detailed drawings of architectural elements
(such as doors and windows) and design elements (such as paint, trim, wall coverings,
and window treatments).
All furnishings and materials that must be purchased are listed and described in
detail in written specifications, and schedules specify the kind, finishes, and placement of
architectural and design elements. A client monitoring te am may be appointed
under certain procurement
procedures to examine the information generated.
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3. PRODUCTS AND
SERVICES
At Stage 5, the construction crew assumes center stage. The procurement strategy
and the client's decision regarding how to evaluate construction quality as work progresses
will affect the contributions made by the client team and design team. Each activity's
duration is depicted in a critical path timeframe in a sequential, overlapping order. A part
of the designer's contract with the client is the final design documentation, which includes
the drawings, specifications, schedules, and timetable. All supplies, furniture, and extras
have been ordered.
Delivered goods are examined, and any items that are damaged are fixed, sent
back, or reordered, and marked with the project and placement information. The designer
will conduct routine site visits to oversee development, assess the level of craftsmanship,
and address any problems that may arise. The designer will create a "Snag List" (also known
as a "Punch List") of issues that must be fixed before movable furnishings, materials, and
accessories are installed after construction and installation work is complete.
3.1.6 Handover. The beginning of Stage 6 occurs when the building is turned over to the
client, aftercare is started, and the building contract is completed. In the design process,
the Post-Occupancy Evaluation (POE) is a significant last step.
After the project is finished, the designer conducts follow-up work to evaluate the
effectiveness of the design solution. A questionnaire, an interview, or a walk-through
inspection with the client may be used for this. To enhance the result, the designer might
make modifications and revisions. Peer evaluation may also be requested. Repeated
project evaluation is necessary to gauge user satisfaction and advance technical
understanding for upcoming initiatives.
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3. PRODUCTS AND
SERVICES
3.4. Firm Capabilities
Nitibo Design will focus on buildings with the following ‘Use and Occupancies’
category in the National Building Code. This includes residential spaces such as: living
room, dining area, bedroom, and home offices. We also cater to commercial spaces such
as corporate offices, retail stores, and medical offices. The interior design services
include furniture layout and selection, space planning and modification, and lighting
design based on the combined personal preferences of the client’s brief and the
company’s stylistic decisions.
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4. MARKET ANALYSIS
In Marketing Analysis, the following are discussed Marketing and Sales Strategy,
Positioning Statement, Competitive Strategy, SWOT Analysis, Marketing Plan, and
Logistics and Operations Plan. This section aims to show that Nitibo Design Studios does
have a viable market. This provides a competitive analysis of the target market and
potential competition in the local market for interior design services.
4.1 Marketing and Sales Strategy
Figure 15. Marketing Framework Source:

Nitibo
The design framework is a strategy that describes each phase of marketing

framework. The phases included are based on the services that the company provides and
the end results from the client’s feedback. These phases can determine the strengths of the
company’s factor that highlights the stages of architectural interior design services.
Formal Integrity. This phase determines the company’s determination in bringing the
client’s vision to life. The company will showcase its services, providing high quality results
and design integration to other networks to engage more individuals.
Functional Compliance. This phase includes the innovative, effective, and
sustainable design solutions that the company can offer. At this point, the company will
present their design solution to stakeholders and provide high class quality materials that
functions practically and aesthetically.
Environmental Contextualization. This phase involves application to the real-
world stage. This determines the relationship of the design through its environment stage. The
company will showcase its diorama in their showcase room for visitors to see.
Aesthetic Identity. The company focuses on nature/native base design solution.
The authenticity of the design engages people with common backgrounds to give feedback
of the high-quality services.
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4. MARKET ANALYSIS
4.2 Positioning Statement

Nitibo Design is dedicated to making spaces according to three principles: user
comfort, sustainability, and support of the local craftmanship. The effects of climate
change are becoming apparent, and excessive consumerism is not a sustainable
practice. The most common example is the purchase of low-priced furniture self-
setup products that can be bought from huge companies like IKEA. We, however,
collaborate with local craftsmen in Misamis Oriental that are known for their wood
crafts; buying local furniture does not only support your community and reduce your
carbon footprint but also helps keep jobs in your area.
4.2 Competitive Advantage
Team of several professions: interior

Works with local artisans to preserve
design, architects, draftsmen, and
Philippine craftsmanship and design
another human asset equipped with
while overseeing all production.
formal education.
Refurbishing old furniture, recycling

Through local connections and partnerships,
materials, and seeks to minimize carbon
we seek to offer reasonable pricing.
footprint.
Figure16. Competitive Advantage Source:

Canva
When it comes to service of interior design service, Misamis oriental is still

unsaturated to interior design firms. The most known is the Ayen Chiong Design Studio
which is led by an interior designer. On their portfolio, they often partnered by
architectural firms in the city. On the other hand, AC Builders Construction Services
from Davao City is often called to commission several projects in Cagayan de Oro
City. The other competition are the freelance interior designers in the market that
offers lower rates compared to our company.
25
4. MARKET ANALYSIS
4.4 SWOT Analysis
The SWOT analysis table below shows the internal and external factors that will affect
the company with their corresponding positive and negative aspects. Internal factors are found
within the premise of the company while External factors are found outside the reach of the
company, and which cannot be controlled.
Figure 17. SWOT Analysis
The company has a strict policy on submission of project since a principal

architect or designer are dedicated to handle one project before accepting another project.
Nitibo Design Studios has unique concept that is above any competitors we also promote
local product to support the community. The firm utilizes the development of technology
for a more flexible services and with that we can create new strategies for different
clienteles. With our online consultation we can take projects outside the country and bring
out there a variety of local building materials.
26
4. MARKET ANALYSIS
4.3 Marketing Plan

Businesses utilize a marketing plan as a competitive comprehensive strategy to plan, carry
out, and monitor their marketing strategy over a specific time frame. Different marketing
strategies for services, pricing, promotional platforms, people, process, and physical evidence can
be included in marketing plans.
4.3.1 Services
Nitibo design studios provides interior design services catering the needs of the
clients be it in pre-design, design, or other supplemental services. All with the foundation of
supporting in local craftsmanship and sustainable practice while keeping a reasonable price.
The studio specializes in residential, corporate, retail stores, and hotel/resorts.
4.3.2 Pricing
The fees for Nitibo design studies will be based on a portion of the estimate and will
be added to the project's cost. 10% of the project cost will be charged by our studio. The project's
complexity will be taken into account when calculating the charge. Below is how the pricing of
services will be determined:
Table 1. Service Rates
SERVICES RATES DURATION

800 PHP PER HOUR
CONSULTATION
5000 PHP PER DAY
SMALL PROJECTS (MAX. 75 SQ.M 60,000 PHP PER UNIT
FLR AREA)
FROM 76 SQ.M TO 300 SQ.M 100,000 PHP PER MAJOR
ROOM
FROM 301 SQ.M AND ABOVE 650 PHP PER SQ.M
27
4. MARKET ANALYSIS
For the first unit -100%

For the next 10 rooms –
75% of the fee
For the next 20 rooms –
REPETITIVE WORK PER SQ.M
20% of the full fee
For the balance of
number of rooms – 5%
of the full fee
50,000 PHP PER UNIT
RENOVATION & REPAIR
WORKS Per sq.m + 10%
1,000 PHP
additional works
Table 2. Project Management fees on percentage basis (% of

budget cost)
OF THE BUDGET
ECONOMICAL BUDGET 10% COST
OF THE BUDGET
HIGH-END LUX BUDGET 15% COST
ROYALTY FEE FOR
ORIGINAL PIECE OF 10,000 PHP PER PIECES
FURNITURE AND FIXTURES
Table 3. Reimbursable Expenses + 10% Service Charge

INTERNATIONAL TRAVEL (PRINCIPAL) 200 USP per day = PHP
11,117.00
INTERNATIONAL TRAVEL (ASSOCIATES AND 100 USD per day = PHP
STAFF) 5,558.50
DOMESTIC TRAVEL (PRINCIPAL) PHP 1500 per day
500 per
DOMESTIC TRAVEL (ASSOCIATES AND STAFF) day
28
4. MARKET ANALYSIS
4.3.3 Promotional
To promote our product and services, we utilized a wide variety of
advertisements especially social media like Instagram, Facebook, and such which is an
everyday means of platform that everyone uses, we also would like to produce some
pamphlets and posters to promote our services. The followings are some promotional
methods that we might consider;
Figure 19. Partnerships

Partnership with other firms and local organizations. Being associated with
local firms and organization can start to build up network and sharing of products and
services. A partnership is a collaborative relationship between two same-interest firm
especially when a firm lacks the expertise in a specialized field. A local-based
organization can offer insight to the challenges and opportunity of the market aside
from promoting services.
Figure 19.1. Billboard

Banner ads, billboard at local venues. Banner ads and Billboards are
typically placed in locations such as high traffic areas, such as along highways and in
cities, where they can be seen by the highest number of drivers and pedestrians. But
for an architectural firm they are hire for their works and referrals from past clients.
Putting up banner ads and billboards in obvious location such as highways is not
recommended and discourtesy.
29
4. MARKET ANALYSIS
Figure 19.2. Instagram Account

Social Media Marketing. Social media provides various platform for
connection and exchange inspirations between professionals and non-professionals to
also gather data for research. But for an architectural firm it is for sharing a finished
product and market their services. Social media can also help connect with the locals
and raise awareness or for community development.
4.3.4 People
Figure 20.1. People

Clients from a diverse variety of ages, backgrounds, and professions will make up
our target market. They have a versatile, knowledgeable, confident, and, eventually,
perceptive mindset that is receptive to changes and developments. Cagayan de Oro
City will be our primary focus until the company expands. Our growing area will be
Misamis Oriental.
30
4. MARKET ANALYSIS
4.3.5 Physical Evidence
This section shows the realization of the actual office where the building office is
located as physical evidence of the Nibito Design Studio. Such buildings are where the
transactions between the company and clients occur and where the employees render their
work.
Figure 20.2. Nitibo Design Exterior Perspective Source:

Nitibo
Figure 20.3. View of the driveway

Source: Nitibo
31
4. MARKET ANALYSIS
Figure 20.4. Ground floorplan
Figure 20.5. 2nd floor plan
32
4. MARKET ANALYSIS
Figure 20.5. Front, Left, Rear & Right Elevations
Intangible
Consultations can take place both online and in face-to-face meetings.
33
4. MARKET ANALYSIS
4.3.6 Process
To ensure a smooth flow of our services and to keep track of the firm's
transactions, our studio offers a variety of phases in the service- delivery process. This
offers a safe and effective means of processing and storing data, ensuring that every
transaction is appropriately reported and documented. The procedure for a transaction
is listed and emphasized below.
Figure 22. Project Management.
Source: Nitibo Design
Consultation Phase. Every project starts with a preliminary consultation.

These sessions are crucial to the success of your project's overall design and
presentation. The goal of any consultation is for the architect to fully comprehend your
ideas and requirements for your custom house, renovation, or expansion.
34
4. MARKET ANALYSIS
Schematic Design Phase. Several drawings that show the building's design,
interior, and systems make up the schematic design phase. This often contains the
building elevations, floor layout, site plan, and building systems.
Contract Documents. A contract is a formal arrangement between the firm

and its clients. Contract documents refer to the collection of documents used to
specify a project's pricing, terms, conditions, timeframe, and scope of work, as well
as any other job- specific information. They serve as a formal definition of the
contract and might be textual or pictorial in nature.
Initial Payment. At various phases that commonly coincide with project

milestones like initial consultation, initial and schematic designs, the architect's fee is
frequently paid out in installments. In our studio, it is established that clients are required to
pay 50% of the project's total cost during the first half of the project.
Project Revisions. Modifications made to a drawing after it has been signed

and distributed are referred to as "drawing revisions." A drawing undergoes its first
revision once it is signed in contract documents.
Design Development. It's time to create a more coherent plan now that the
customer has approved the initial one. These specifics cover the location of doors and
windows as well as any alterations to the building's shape. The exterior and interior
finishes are then given to the customer, and materials, fixtures, and other finishes are
discussed. There will be back and forth with the customer, frequently driven by
expenses, which will force both parties to make compromises. The exterior, plan, and
size of the building, as well as the majority of the materials, are finalized at this point.
35
4. MARKET ANALYSIS
Final Consultation. The client and architects meet during this stage to receive
their final approval. Any changes to the proposal that have been made since the initial
consultation must be final in this case. Small adjustments could be permitted but altering
the design entirely at this point is no longer accepted unless the customer is ready to
pay for the costs associated with starting over. As completely as possible at this point,
everything must be settled.
Final Design Phase. The final design phase is when the design is finished and
all necessary approvals, permits, and other certifications are obtained so that the plan, or
project parts that have been staged in accordance with the project management plan,
may go on to implementation.
Final Payment. Final payment is the payment of all approved demands,

including but not limited to those for work variation, Contract Price modifications and/or
escalation, work speed, and others. It also refers to the payment of the final progress
billing. The retention compensation is not included. Only the remaining 50% will be
requested since Nitibo Design Studio expects the clients to pay 50% in the initial
transaction.
36
4. MARKET ANALYSIS
4.4 Logistics and Operations Plan

Logistics manage the flow of product or service from the production and delivery.
4.4.1 Logistics
Suppliers. Nitibo Design Studios chose to invest locally in the community. If
we had a difficult situation with the producer of the building materials, there is an
option to accept products from trusted producers of local materials.
Insurance. All shops, warehouses, and personnel have insurance against
dangerous situations, and the insurance company is a big and reputed company in the
world.
Delivery to customers. The length of time the service will take depends on
how complicated and big the project is. The planning phase will take roughly two
weeks for small spaces. For large projects, the entire plan will be completed in one
month.
Payment. Clients can make payments either in cash or by credit card, but they
can only use credit cards on our website. Throughout the entire design planning
process, clients must pay twice. They must make the initial payment following receipt
of the preliminary design and the full payment following approval of the final
design.
Management with local shops. Our local partner shops may continue to
market their products. A contractual agreement must be provided.
Premises. There are two shops in Cagayan de Oro City proper. There are
laptop units available to allow Nitibo Design employees to work from home.
Transport. The company will require two (2) modes of transportation for company
use only. These privileges to use the company's transportation will be given to
employees with a driver's license. For moving furniture and products, a pickup truck
will be used. For site visits and client face-to-face or on-site consultations, a company
car will be used.
37
4. MARKET ANALYSIS
4.4.2 Operations
Production. Our firm is open from Monday through Saturday. 8:00 to 5:00
p.m. The design process will take 8 to 20 working days. Production takes place based
on the client’s demand.
5
Equipment. Computers or smartphones are required, especially for online
services, and these will be used by Nitibo Design Studios to look for client demands,
orders, and issues. In all the buildings, the company is allowed to have four (4) laptop
units, two (2) A3-size printers, one (1) 3D printer, a drawing desk for each designer,
one (1) fax machine, and two (2) large-format printers with built-in scanners.
38
5. FINANCIAL PLAN AND PROJECTIONS
The partners of Nitibo Interior Designs are contributing a total of 7,000,000

Pesos and a loan of Php1,000,000 from the bank for 3 years to set up the company.
Two (2) members will be contributing 1,400,00.00 Pesos each and the remaining 5
members will be contributing 840,000 Pesos each garnering shares of 20% and 12% in
the company, respectively.
5.1 Projected Financial Statements
This will emphasis the company's projected financial statements, which will
include projections of the firm's incoming and outgoing cash flow. In addition, the only
objective of this subsection is to provide the critical information needed to project the
balance sheets and make the underlying assumptions for the anticipated financial
statements.
5.1.1 Income Statements

Table 1. SCI Revenue for Year’s End 1 to 3
December 31
Year 1 Year 2 Year 3
Revenue
Consultation ₱ 1,890,000 ₱ 2,173,500 ₱ 2,608,200
Interior Design 9,977,500 11,474,125 13,768,950
Renovation & Repair Works 3,428,100 3,942,315 4,730,778
Project Management Fees 6,600,000 7,590,000 9,108,000
Royalty Fees 183,000 210,450 252,540
Other Service Income 1,147,526 1,319,654 1,583,585
Total Revenue 23,226,126 26,710,044 32,052,053
The table 1. shown above are statement of comprehensive income (SCI)

from 3 year-end revenue or every December 31 which broken down to services rendered:
consultation, interior design, renovation & repair works, project management fees,
royalty fees and other service income from reimbursable expenses. The Total revenue
for year 1 garnered 23,226,126 PHP; year 2 is 26,710,044 PHP and year 3 garnered
32,052,053 PHP resulting to a 115% increase each year.
39
Table 1.1. SCI For Direct Cost

Direct Cost
Salaries and other benefits 2,562,000 2,818,200 3,100,020
Direct Cost - Interior design 1,995,500 2,294,825 2,753,790
Direct Cost - Renovation and
Repair Works 2,571,075 2,956,736 3,548,084
Travel and transportation 1,247,526 1,469,654 1,783,585
Provision for doubtful accounts 109,478 94,425 75,540
Rent expense 600,000 660,000 726,000
Depreciation - Computer and IT
equipment 130,099 130,099 130,099
Depreciation - Leasehold
Improvements 50,000 50,000 50,000
Amortization 94,688 94,688 94,688
Trainings and seminars 120,000 126,000 132,300
Total Direct Cost 9,480,366 10,694,628 12,394,106
Gross Profit 13,745,760 16,015,417 19,657,947
Salaries and other benefits comprise of 7 plantilla positions and employee

benefits which is 10% of the monthly salary rate. Mandatory contributions are fixed at
P3,500 per employee. Monthly salary rate and mandatory contribution will increase by
10% annually.
Direct cost incurred during the project on top of the salaries and benefits of
designers. The company estimates the cost at 20% of the total project cost. Direct labor
and materials consist of labor and materials cost incurred for renovations and repairs
services of the company. The company estimates the cost at 75% of the total project cost.
Travel and transportation include billable travel expenses which is charged to
client. Corresponding revenue is reported as Other Service Income. The company also
allocate Php100,000 gasoline and fuel for Year 1, Php150,000 for Year 2, and
Php200,000 for Year 3. Provision for doubtful accounts represents the company
provision of 2% of uncollected revenue as at year end. Lease contract is billed on
monthly basis at Php50,000 per month with annual incremental clause of 10%.
40
Table 1.2. SCI For Admin and Operating Cost

Admin and Operating Cost
Salaries and other benefits 1,598,400 1,758,240 1,934,064
Marketing and promotions 240,000 192,000 153,600
Insurance Expense 116,722 93,377 74,702
Depreciation expense - Office
Furnitures and Fixture 53,344 53,344 53,344
Office supplies 59,904 90,000 102,000
Light and water 144,000 165,600 190,440
Communication and internet 180,000 180,000 180,000
Taxes and licenses 35,240 38,764 42,640
Interest expense 100,000 100,000 100,000
Total Operating Cost 2,527,610 2,671,325 2,830,790
Net Profit Before Tax 11,218,150 13,344,091 16,827,157

Income tax expense (25%) 2,804,538 3,336,023 4,206,789
Net Profit After Tax ₱ 8,413,613 ₱ 10,008,069 ₱ 12,620,368
Salaries and other benefits comprise of 7 administrative and support positions and
employee benefits which is 10% of the monthly salary rate. Mandatory contributions are
fixed at P3,500 per employee. Monthly salary rate and mandatory contribution will
increase by 10% annually.
Marketing and promotions include social media advertising, signage, brochures,
flyers, and related campaign materials. The company allocates Php20, 000 per month
during the first year but budget will diminish by 20% in the following year. Insurance
expense includes property insurance of the company's IT equipment, furniture and
fixture and leasehold improvements. The company allocates 10% insurance cost on the
book value of the said properties.
The company allocates Php 4,992 monthly office supplies expense for Year 1, Php
7,500 per month for Year 2, and Php 8,500 for Year 3. Light was budgeted at Php10,000
per month, and water at Php2,000 per month. Incremental rate for light and water is 15%
annually.
The company will apply for 1 corporate internet connections with telephone line
with a lock-in period of 3 years. Line A is cost at P5,000 per month and Line B will cost
Php10,000 per month. Taxes and licenses include annual business registration, SEC registration,
BIR registration. Incremental cost for taxes and licenses is at 10% annually. Nitibo Design
Studios uses 25% corporate income tax rates in accordance with Philippine taxation laws,
unless superseded with new law.
41
5.1.1 Cash Flow Statements
Table 2. Cash Flow from Operating Activities

December 31
CASH FLOW FROM OPERATING
ACTIVITIES
Income before income tax ₱ 8,413,613 ₱ 10,008,069 ₱ 12,620,368
Adjustments for:
Depreciation and amortization 328,131 328,131 328,131
Interest 100,000 100,000 100,000
Provision for doubtful accounts 109,478 94,425 75,540
Income tax expense 2,804,538 3,336,023 4,206,789
Income before capital charges 11,755,759 13,866,648 17,330,828
Decrease (increase) in:
Accounts receivable, net (2,189,560) (1,888,496) (1,510,796)
Accounts payable 62,376 11,106 15,697
Interest payable 0 0 0
Accrued expenses 72,725 9,175 12,566
Interest paid (75,000) (100,000) (100,000)
Income tax paid (2,804,538) (3,336,023) (4,206,789)
Net cash flow from operating
activities 6,821,763 8,562,411 11,541,505
Table 2.1. Cash Flow from Investments

(1,640,656) 0 0
Purchase of property and equipment
Payment for rental deposits (55,000)
Net cash flow from investing activities (1,695,656) 0 0
Table 2.2 Cash Flow from Financing Activities

Proceeds (payment) of loans 1,000,000 0 (1,000,000)
Proceeds from issuance of stocks 7,000,000 0 0
Payment of dividends (5,889,529) (7,005,648) (8,834,258)
Net cash flow from financing
activities 2,110,471 (7,005,648) (9,834,258)
NET INCREASE IN CASH 7,241,578 1,556,763 1,707,248
CASH, Beginning 0 7,241,578 8,798,341
CASH, Ending ₱ 7,241,578 ₱ 8,798,341 ₱ 10,505,588
42
5.1.2 Balance Sheets
Statement of Financial Position Year 1 to 3
Table 3. Current Assets

December 31
ASSETS
Current Assets
Cash ₱ 7,241,578 ₱ 8,798,341 ₱ 10,505,588
Accounts receivable, net 2,080,082 3,874,153 5,309,409
Total Current Assets 9,321,660 12,672,493 15,814,998
Table 3.1. Noncurrent assets

Noncurrent Assets
Leasehold improvements, net 200,000 150,000 100,000
Computer and IT equipment, net 520,396 390,297 260,198
Furnitures and fixture, net 213,376 160,032 106,688
Software 378,753 284,064 189,376
Rental deposits 50,000 50,000 50,000
Total Noncurrent Assets 1,362,525 1,034,394 706,263
TOTAL ASSETS 10,684,185 13,706,887 16,521,260
Table 3.2. Liabilities and Equity

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable 62,376 73,483 89,179
Interest payable 25,000 25,000 25,000
Accrued expenses 72,725 81,900 94,466
Total Current Liabilities 160,101 180,383 208,646
Noncurrent Liabilities
Loans Payable 1,000,000 1,000,000 0
Total Noncurrent Liabilities 1,000,000 1,000,000 0
Equity
Capital Stock 7,000,000 7,000,000 7,000,000
Retained Earnings 2,524,084 5,526,504 9,312,615
Total Equity 9,524,084 12,526,504 16,312,615
TOTAL LIABILITIES AND

EQUITY ₱ 10,684,185 ₱ 13,706,887 ₱ 16,521,260
43
As shown in table 3, the company estimates that only 95% of the revenue can be
collected at the end of the year 1 and collection rate will increase by 2.5% per year but
will be capped at 95%. Of the remaining uncollected, 2% was allocated with provisions.
Allowance for doubtful accounts was reported in statement comprehensive income.
For table 3.1 noncurrent assets are leasehold improvements represent the company's
renovation made to office. Leasehold improvements have a useful life of 5 years. Also,
computer and IT equipment consist of laptops, PCs', and other IT equipment that are used
by the company. They also have an estimated useful life of 5 years. Then, furniture and
fixtures represent company's office furniture and have 5 years of useful life. Lastly,
Software consists of company's software, and applications that are primarily used by the
company. Total assets for Year 1 are 10,684,185, for year 2 is 13,706,887 and for year 3 is
16,521,260.
Loans payable is a term loan payable in after 3 years. Interest rate is 10% per annum and
paid on a quarterly basis.
44
5.1.3 Assumptions to Projected Financial Statements

1. The company is authorizing to issue 700,000 shares with par value of P10.00 per share.
The following incorporators subscribed and paid the following number of shares.
Table 7. List of Partners
No. of shares
Incorporators subscribed Amount Percentage
Mark Nelvin Lecias 140,000 1,400,000.00 20%
Charlegne Jaye Molanda 140,000 1,400,000.00 20%
Jeremiah Baguio 84,000 840,000.00 12%
Jerry Saguagan Jr. 84,000 840,000.00 12%
Daniel Christopher Macerin 84,000 840,000.00 12%

Loz Angelie Maputol 84,000 840,000.00 12%
Eliza Mae Ocate 84,000 840,000.00 12%
TOTAL 700,000 7,000,000.00 100%
2. The company purchased the following fixed assets like computer and IT equipment
for the total of 650,495.23 PHP, Furniture, and fixtures for the total of 266,720.29
PHP, and office supplies for the total of 59,904.00 PHP. Also lease improvement for
the total of 250,000.00 PHP. These company purchased and asset are estimated to
useful life:
a. Leasehold improvements represent the company's renovation made to office.
Leasehold improvements have a useful life of 5 years.
b. Computer and IT equipment consist of laptops, PCs', and other IT equipment
that are used by the company. They also have an estimated useful life of 5
years.
c. Furniture and fixtures represent company's office furniture and have 5 years of
useful life.
d. Software consists of company's software, and applications that are primarily
used by the company.
e. The company uses straight line depreciation method.
3. Accounts payable are unpaid expenses for travel and transportation which is 5% of the
total expenses.
45
2. Accrued expenses are unpaid expenses for salaries and wages.
3. Loans payable is a term loan payable in after 3 years. Interest rate is 10% per annum
and paid on a quarterly basis.
4. The company distributes 70% of their current year net income as cash dividends.
5. Revenue for Year 1 from all service fees are 23,226,125.50 PHP and from reimbursable
expenses are 1,147,525.50 PHP.
6. Salaries and other benefits comprise of 7 plantilla positions and employee benefits
which is 10% of the monthly salary rate. Mandatory contributions is fixed at P3,500 per
employee. Monthly salary rate and mandatory contribution will increase by 10%
annually.
7. Direct cost incurred during the project on top of the salaries and benefits of
designers. The company estimates the cost at 20% of the total project cost.
8. Direct labor and materials consist of labor and materials cost incurred for renovations
and repairs services of the company. The company estimates the cost at 75% of the
total project cost.
9. Travel and transportation include billable travel expenses which is charged to client.
Corresponding revenue is reported as Other Service Income. We also allocate
Php100,000 gasoline and fuel for Year 1, Php150,000 for Year 2, and Php200,000 for
Year 3.
10. Provision for doubtful accounts represents the company provision of 2% of uncollected
revenue as at year end.
11. Lease contract is billed on monthly basis at Php50,000 per month with annual
incremental clause of 10%.
12. Trainings and seminars were budgeted at P20,000 per month and includes
registration fee, accommodation, and airfare. The company will send 1 employee per
month to attend conventions, meetings, and conferences. Budget for trainings and
seminars will increase by 5% annually to account for inflation.
46
13. Salaries and other benefits comprise of 7 administrative and support positions and
employee benefits which is 10% of the monthly salary rate. Mandatory
contributions are fixed at P3,500 per employee. Monthly salary rate and mandatory
contribution will increase by 10% annually.
15. Marketing and promotions include social media advertising, signage, brochures,
flyers and related campaign materials. The company allocates Php20, 000 per
month during the first year but budget will diminish by 20% in the following year.
16. Insurance expense includes property insurance of the company's IT equipment’s,

furniture’s and fixture and leasehold improvements. The company allocates 10%
insurance cost on the book value of the said properties.
17. The company allocates Php 4,992 monthly office supplies expense for Year 1, Php
7,500 per month for Year 2, and Php 8,500 for Year 3.
18. Light was budgeted at Php10,000 per month, and water at Php2,000 per month.
Incremental rate for light and water is 15% annually.
19. The company will apply for 2 corporate internet connections with telephone line
with a lock-in period of 3 years. Line A is cost at P5,000 per month and Line B will
cost Php10,000 per month.
20. Taxes and licenses include annual business registration, SEC registration, BIR
registration. Incremental cost for taxes and licenses is at 10% annually,
21. The company uses 25% corporate income tax rates in accordance with Philippine
taxation laws, unless superseded with a new law.
47
5.2 Break-even Analysis
Based on the breakeven analysis, the company must generate P8.2 million revenue
for Year 1, P8.8 million for Year 2, and P9.5 million for year 3. Salaries and wages of
officers/employees comprises more than 80% of the total fixed cost. Contribution margin are
74.50%, 74.48%, and 74.54% for Year 1, 2, and 3, respectively.
Figure 21.1. Break-even Analysis Year 1 Figure 21.2. Break-even Analysis Year 2
Figure 21.3. Break-even Analysis Year 3
48
5.3 Return on Investment Analysis and Equity Analysis

The company distributes 70% of their current year net income as cash dividends.
Year 1 to3 YEAR 1 YEAR 2 YEAR 3

RATIO Formula
A Profitability Ratios
Gross Margin 13,745,760 16,015,417 19,657,947
1 Gross Margin Ratio 59.18% 59.96% 61.33%
Net Revenue 23,226,126 26,710,044 32,052,053
Net Profit 8,413,613 10,008,069 12,620,368

2 Net Profit Ratio 36.22% 37.47% 39.37%
Net Revenue 23,226,126 26,710,044 32,052,053
Earnings Before Interest, Taxes, Depreciation and

3 EBITDA Margin Amortization 11,646,281 50.14% 13,772,223 51.56% 17,255,288
53.84%
Net Revenue 23,226,126 26,710,044 32,052,053
Operating Profit Margin Earnings Before Int erest and Taxes 11,318,150 13,444,091 16,927,157
4 48.73% 50.33% 52.81%
Net Revenue 23,226,126 26,710,044 32,052,053
Net Profit 8,413,613 10,008,069 12,620,368

5 Return on Assets 78.75% 73.01% 76.39%
Total Assets 10,684,185 13,706,887 16,521,260
Net Profit 8,413,613 10,008,069 12,620,368

6 Return on Equity 88.34% 79.90% 77.37%
Total Equity 9,524,084 12,526,504 16,312,615
Net Profit 8,413,613 10,008,069 12,620,368

7 Earnings Per Share 12.02 14.30 18.03
No. of Ordinary Shares 700,000 700,000 700,000
Dividends declared/Paid 5,889,529 7,005,648 8,834,258

8 Dividends Per Share 8.41 10.01 12.62
No. of Ordinary Shares 700,000 700,000 700,000
Table 5. Return on Investment Analysis and Equity Analysis
50
Return on Investment Analysis and Equity Analysis

Figure 22.1 involves the Return of Assets by 3 years of operating. Year 1
generates a 53.37 % of net profit over the total assets, followed by 59.75% by year 2
and 80.70 % by year 3. This indicates that the company can arrive at a high ROA
either by boosting its net profits or, more efficiently, by using its assets to increase
sales.
Figure 22.1. Return of Assets
Figure 22.2 shows the increase of equity by 3 years. A higher percentage

indicates that the company can operate more effective by generating profit from its
existing assets.
Figure 22.2. Return of Equity
51
5.4 Source and Uses of Funds
Figure 23. Funds
52
As Shown in the table 6 below are a detailed of the source of fund with its corresponding
cost and budget.
Table 6. Source of Funds
Sources of Funds Amount (in php)

Proceeds from issuance of Ordinary Shares 7,000,000
Loans from bank 1,000,000
Total 8,000,000
Uses of Funds
Purchase of:
Leasehold Improvements 250,000
Computer and IT Equipment 650,495
Furnitures and Fixture 266,720
Software 473,441
Payment of rental deposits 50,000
Total Use of Funds 1,690,656
Available Cash for Operating Expenses 6,309,344
53
The company purchased the following fixed assets like computer and IT
equipment for the total of 650,495.23 PHP, Furniture, and fixtures for the total of 266,720.29
PHP, and office supplies for the total of 59,904.00 PHP. Also lease improvement for the
total of 250,000.00 PHP.
These company purchased and asset are estimated to useful life:

a. Leasehold improvements represent the company's renovation made to office.
Leasehold improvements have a useful life of 5 years.
b. Computer and IT equipment consist of laptops, PCs', and other IT equipment that
are used by the company. They also have an estimated useful life of 5 years.
c. Furniture and fixtures represent company's office furniture and have 5 years of useful
life.
d. Software consists of company's software, and applications that are primarily used
by the company.
e. The company uses straight line depreciation method.
54
5.5 Summary of Analysis
Figure 21.1. Nitibo Design’s Break-even Analysis for Year 1
Nitibo Design Studio start-up cost is estimated at 7 million PHP from the partners and 1
million PHP loan from the bank. The firm’s monthly operation will include direct cost, admin
and operating cost which is estimated total of 1 million PHP and for year 1 it is estimated at 12
million PHP. To keep the firm at operation level for year 1 the sales need to generate 8.2 million
revenue and the return from earnings per share is at 12% and 18% by Year 3 mark.
For the first month of operation the company might discover risk like the pandemics and
natural disaster. When these unprecedent events happen local business and producer’s
shutdown then it will be a hard time to find new producers for a limited time. Then there’s
inflation of products and services so the firm must adjust all the pricing. Lastly there are
competitors with similar products and services offered in the same area, but through flexible
services.
To minimize these risks, there are new ways to bring the services to clients through online
services and consultations if the company cannot have face-to-face meet ups and these can
also attract clients outside the country. For our local producers there are variety of alternate
building materials. Then there’s the increase of local pricing this is an advantage for the firm
to take invest and take projects outside the country.
55
APPENDICES
A. Company Brochure
56
APPENDICES
B. Curriculum Vitae of Key Employees
57
APPENDICES
58
APPENDICES
59
APPENDICES
60
APPENDICES
61
APPENDICES
62
APPENDICES
63
APPENDICES
C. List of Company Equipment
1. Large Format Printer & Scanner with built in fax machine

SIZE Max Print Width: 24 inch wide (610mm)
Epson Sure Color T3160 - 24" PRINT TECHNOLOGY Print Head Precision Core TFP with VSDT and Auto Head Alignment
SPECIFICATIONS Print Modes Uni & Bi-directional

Nozzle Configuration 800 per color
Maximum Resolution 2400dpi x1200dpi
Minimum Ink Droplet Size 4.0pl
INK SYSTEM Family Epson Ultra chrome® XD2 Type

All-Pigment Aqueous
Colors C+M+Y+K Cartridges

CMY 26/50ml
K 50/80ml
PERFORMANCE (per CAD A1 34sec

Sheet)
Figures represent print times only for Epson test sample images as
shown produced on plain paper in speed mode. Additional
processing time may be required with individual results likely to
vary depending on print
mode, software, operating environment, media, data file size/type.
MEDIA SUPPORT Roll Format Single roll top loaded spindle, 2" core, 0.05- 0.21mm
thick, 329-610mm wide, 110mm max diameter, 3Kg max
weight
Sheet Format Top loaded A4-A1 single sheets,
integrated A4/A3 Automatic Sheet
Feeder(50sheetmax),0.12-0.27mmthick
Auto Cutter Inbuilt rotary type
Manual Double-Sided Printing Please refer to user
guide, and contact Epson or your authorized dealer before
selecting any media for this purpose in order to check
suitability.
Output Single sheet hold feature Supplied with an
A4/A3 output tray
Floor-standing model and optional Printer Stand incorporates a media
basket
OPERATION Control Panel 4.3" Colour LCD touch screen

Control Code ESC/P Raster, HP/GL/2 &HP
RTL* 1
Connectivity USB 3.0 & Ethernet 10Base-T/100Base-
TX/1000Base-T, WiFi, WiFi Direct, Air Print
Compatibility Windows 10/8.1/8/7/Vista/XP, Mac
OSx10.6.8 or later
Memory 1GB RAM
Scanner Support USB interface with integrated
control & auto enlargement
Supports5x7”, Letter,A5,B5,A4,B4,A3&custom(89- 297mm wide)
input page sizes
Supports A2, US-C (17x22"), B2, US-D (22x34"), A1 &
custom (89-610mm wide) output page sizes
Supports Epson DS-530, DS-6500 & DS6000 scanner models
Physical (WxHxD) Desktop: 970 x 230 x 505 mm, 27kg
(no consumables, media or options, no output tray, ASF
closed)
Floor Standing: 970 x 913 x 696 mm, 38kg (closed basket, no consumables,
media or options, no output tray, ASF closed
ENVIRONMENT Operational Temp 10° to 35° C

Operational Humidity 20 to 80% (no condensation)
Power Supply 100 - 240 V AC, 50/60 Hz
Power Consumption 28WOperating, 8WStandby,
1.6W Sleep Operating
Noise 49dB
Recommended Install Space (WxHxD)
Desktop: 1020 x 380 x 915mm
Floor-standing: 1020 x 1063 x 1270mm
64
APPENDICES
2. Drawing Board
Working Area 750 x 520mm
A2 Portobello Drafting Table Weight 9 KG
Adjustment Stand - 13 stage angle Drafting Machine - 150
degree
Drafting Machine A2 Tecnostyl TOM 150
Metric Scales 1:1 / 1:2 / 1:2.5 / 1:5

Ruler Length 300mm Horizontal 200mm
Vertical
N Stand Colour BLACK
3. Fax Machine
Model: FAX-2840
Paper Paper Tray Paper Type Plain paper, Thin paper or Recycled paper
Input
Paper Size Letter, A4,B5 (ISO/JIS), A5,A5 (Long Edge),B6 (ISO),A6,
Executive (Legal or Folio for Asia)
Paper Weight 60 to 105 gsm
Maximum Paper Tray Up to 250 sheets of 80 gsm Plain paper

Capacity
Manual Feed Slot Paper Type Envelope, Labels, Thin paper, Thick paper, Recycled paper, Bond
(Manual) paper or Plain paper
Paper Size Width: 76.2 to 216 mm

Length: 116 to 406.4 mm
Paper Weight 60 to 163 gsm
Maximum Paper Tray One sheet at a time 80 gsm Plain paper

Capacity
Paper Output Face-Down Output Tray Up to 100 sheets of 80 gsm Plain paper
One sheet ( face up print delivery to the Face up output tray)
Face-Up Output Tray
65
APPENDICES
4. Laptop unit
CONNECTOR
PORTS
DisplayPort Yes
VGA No DISPLAY
Thunderbolt No Screen Size 15.6"
Card Reader No Screen IPS
Technology
DVI No
PLATFORM
HDMI Yes
Processor Intel® Core™ i7-11800H
Headphone Yes
OS Windows 10 Home
Jack
Processor Speed 2.4GHz
CONNECTION
Wi-Fi Standard 802.11a/b/g/n/ac/ax STORAGE
FEATURES Storage 512GB
Touch Screen No Storage Type SSD
Fingerprin
MEMORY
Yes
tt Reader RAM 16GB
Backlit RAM Type DDR4
Yes
Keyboard RAM Speed 3200MHz
COLOUR DESIGN
Colour Black Weight 2.9kg
Body Material Aluminium
PRICE 85,499.00 GRAPHICS
Graphic Card NVIDIA® GeForce RTX™ 306
66
APPENDICES
CONNECTOR PORTS
DisplayPort Yes
VGA No
Thunderbolt No
Card Reader No
DVI No
HDMI Yes
Headphone Jack Yes
CONNECTION
Wi-Fi Standard 802.11a/b/g/n/ac/ax
FEATURES
Touch Screen No
Fingerprint Reader Yes
Backlit Keyboard Yes
COLOUR
Color Black
PRICE 85,499.00
Brand Apple
5. PC unit Personal computer design All in One
type
Operating System Mac OS
Memory Storage Capacity 512 GB
Screen Size 24 Inches
Ram Memory Installed Size 8 GB
Model Name IMac
Included Components IMac, Magic
Mouse, Power
Cord and Power
Adapter, Magic
Keyboard, USB-C
to Lightning
Cable
CPU Model Unknown
67
APPENDICES
6. 3d- model printer Model eDee

Trade name YSoft be3D
eDee
Printing FFF (Fused
technology Filament
Fabrication)
Printing area 150 × 150 × 150
mm
Nozzle diameter 0.4 mm
(Expected
lifetime 1 500
h)
Print bed type Glass,
removable
Calibration Automatic
Safety elements Door locks,
print bed
sensor
Total dimensions 496 × 414 × 397
mm
Weight 27.5 kg
(shipping
weight: 31 kg)
Recommended 15–30°C (59–

operation 86°F), max. 60%
conditions humidity
Supply voltage External source

24 V/3.75 A (90
W, input 230
V/110 V)
DESCRIPTION OF PRINTER COMPONENTS

1. Touch screen 8. Main power switch
2. Print bed 9. Ethernet port
10. Power connector for a 24 V power
3. Print head source (use the original power source
supplied with the printer)
4. Front doors 11. Cable holder/slot for a Kensington lock
12. Manufacturing
5. Side doors label
6. Electromechanical locks 13. Filament entry point/filament detector
7. Electromechanical lock strike plate 14. Card reader holder
68
APPENDICES
7. LCD Projector Projection System: 3LLCD, 3-chip technology
Native Resolution: 1920 x 1080(Full HD)
Color Brightness: 4,000 lumens
White Brightness: 4,000 lumens
Epson EB-FH52 Full HD 3LCD Projector
69
APPENDICES
D. Certificate of Business Name Registration
70
APPENDICES
E. Copy of Advertisements
Promotional Video Link: https://youtu.be/HrVOIiaHhC0
Photo source: Screen capture from a promotional video from YouTube
Instagram Stories
71
APPENDICES
F. Information Supporting the Growth of your Industry and/or Products and Services
The growth of the Interior Design industry and Nitibo Design Studios services is supported by several key
factors:
• Demographic trends: The housing market is currently experiencing a boom, with

many people looking to purchase or renovate homes. This increase in the
number of homeowners and homebuyers creates a high demand for Interior
Design services.
• Technological advancements: Interior Design technology, such as virtual and

augmented reality, are becoming more widely used, allowing designers to
create more accurate and detailed designs, and clients to visualize their finished
spaces before they are built. This can speed up the design process and improve
the overall outcome.
• Economic conditions: A strong economy means more disposable income for

people to invest in their homes, leading to an increase in demand for Interior
Design services.
• Increased focus on sustainability: As people become more aware of the impact of

their choices on the environment, there is a growing interest in sustainable Interior
Design, including the use of eco-friendly materials and energy-efficient lighting and
appliances.
• Increase in social media and online platforms: social media and online
platforms have made it easy for people to find inspiration for their home
design and connect with Interior Design professionals, which is leading to an
increase in the demand for Interior Design services.
• The popularity of home renovation and remodeling shows on TV and

streaming platforms has sparked the interest of homeowners to invest in their
homes to make them more comfortable and stylish which is driving the demand
for Interior Design services.
72
APPENDICES
G. Key Company Agreements
72
73
APPENDICES
74
APPENDICES
75
APPENDICES
Page 2 of 2
1. In the event of death of the employee during the terms of this agreement, his remains and personal belongings shall be
repatriated to the Philippines at the expense of the employer. In the case the repatriation of remains is not possible, the
same may be disposed of upon prior approval of the employee’s next kin and/ or by the Philippine Embassy/
Consulate nearest the jobsite.
2. The employer shall assist the Employee in remitting a percentage of his salary through the proper Banking channel or
other means authorized by law.
3. Termination:
a. Termination by Employer: The employer may terminate this Contract on the following just causes: serious misconduct,
willful disobedience of employer’s lawful orders, habitual neglect of duties, absenteeism, insubordination revealing
secrets of establishment, when employee violates customs, traditions, and laws of and/ or terms of this Agreement. The
employee shall shoulder the repatriation expenses.
b. Termination by Employee: The employee may terminate this Contract without serving any notice to the employer for any
of the following just causes: serious insult by the employer or his representative, inhuman and unbearable treatment
accorded the employee by the employer or his representative, commission of a crime/ offense by the employer or his
representative. Employer shall pay the repatriation expenses back to the Philippines.
b.1 The employee may terminate this Contract without just cause by serving one (1) month in advance notice to the employer.
The employer upon whom no such notice was served may hold the employee liable for damages. In any case, the
employee shall shoulder all expenses relative to his repatriation back to his point of origin.
c. Termination due to Illness: Either party may terminate the contract on the ground of illness, disease or injury by the
employee. The employer shall shoulder the cost of repatriation.
4. Settlement of disputes: All claims and complaints relative to the employment contract of the employee shall be settled in
accordance with the Company policies, rules and regulations. In the case the employee contests the decision of the
employer, the matter shall be settled amicably with the participation of the Labor Attaché or any authorized representative
of the Philippine Embassy/ Consulate nearest competent or appropriate government body in host country or in the
Philippines if permissible by host country laws at the option of the complaining party.
5. The employee shall observe employer’s company rules and abide by the pertinent laws of the host
country and respect its customs and traditions.
6. Applicable Law: Other terms and conditions of employment, which are consistent with the above provisions, shall be
governed by the pertinent laws of the
In witness thereof, we hereby sign this contract this day of ,
at Manila, Philippines,
Employee Employer
Philippine Representative Witness

(Licensed Recruitment Agency)
76
APPENDICES
Page 1 of 2
Probationary Employment Contract

[Date]
[Name of Recipient]
[Address]
Dear [Mr./Ms. Name],
We are pleased to offer you the position of [Company Name] based on the following terms and cond
1 DATE OF COMMENCEMENT
1.1 Your employment will commence on [Date].
1.2 Your Probation Period will be three (3) to six (6) months from the date of commencement
2 SALARY
2.1 Your starting basic monthly salary will be [Php Amount in words and numeric value]
2.2 Any bonus or declarations of bonus shall be made at the sole and absolute discre the
amount of bonus, the Company shall consider your work performance, amo
2.3 Your performance will be reviewed periodically and the Company shall mak
2.4 You are not entitled to any transport allowance.
3 DUTIES
Your duties as Marketing Manager are as follows:
• Developing Marketing Strategies
• Implementing Marketing Strategies
• Conducting Market Research
• Development of Marketing and Communication
• Supervising your marketing team
• Increasing our Company's market share
• Improving our Company's marketing yield
• Reporting to the Chief Executive Office
4 WORKING HOURS
4.1 The Company's working hours are Monday and every day.
4.2 You may be required to work beyond Company.
4.3 The Company reserves the rig arise.
77
APPENDICES
Page 2 of 2
6.1 You must notify the Company and/or your immediate supervisor as soon as practicable if you are unable to work for medical reasons. Such
notice shall be given within the first four (4) hours of the working day.
6.2 You are required to produce, without demand, a medical certificate in all cases where you are absent from work for medical
reasons.
6.3 You are entitled to seven (7) days of paid sick leave per calendar year, upon confirmation of your employment. Sick
leave during the probation period shall be approved at the sole discretion of the Company.
7 MATERNITY LEAVE
7.1 You will be entitled to the Maternity leave as per Philippine law. Such leave is to be taken on doctor's written orders.
7.2 A female Employee on leave because of a miscarriage shall be considered to be only on normal sick leave.
8 TERMINATION AND NOTICE
8.1 During the probationary period, either party may terminate the contract by giving one (1) weeks’ notice or based on the discretion
of the company.
8.2 Upon confirmation of your employment, either party may terminate the contract by giving one (1) months’ notice or based on the
discretion of the company.
8.3 The Company reserves the right not to give any reasons for termination.
8.4 The Company, however, has the right to give immediate notice before terminating your services if you are guilty of misdemeanor,
misconduct, negligence, or breach of any of the terms of this Letter of Appointment.
8.5 Upon the termination of your employment, you shall return to the Company all documents, records, items and materials in
your possession or custody belonging to the Company or its clients and you shall not retain any copies (including electronic or
soft copies) thereof.
8.6 During your notice period, you shall handover all documents and materials relating to your work and ensure a smooth transition of your
duties and responsibilities. If you fail to complete the handover during the notice period, the Company shall be fully entitled to require
and compel you to stay two (2) more weeks after the notice period has ended to complete the hand over.
9 CONFIDENTIALITY
9.1 You shall not disclose to any third party any confidential information obtained during your course of employment unless
expressly authorized by the Company.
9.2 Confidential information for the purposes of this contract includes and is not limited to trade secrets, business plans, strategies,
financial information, and any other information that will affect the Company's competitive position.
9.3 Your obligations to maintain confidentiality and secrecy shall apply after your employment until such time that the
information is no longer confidential or has been made public by the Company.
9.4 You shall not without prior written consent of the Company destroy, make copies, duplicate, or reproduce in any form the
Company's confidential information.
10 GOVERNING LAW
78
APPENDICES
This Letter of Appointment shall be governed by and construed in accordance with the Labor Code of the Philippines Please confirm your
acceptance of the above terms and conditions by signing and returning to us the duplicate copy of this Letter within seven (7) days from the date of this
Letter.
Sincerely yours,
[Name]
[Position]
EMPLOYEE'S ACKNOWLEDGEMENT
I accept and agree to the above-stated terms and conditions.
Signature
:
Name:
Date:
79
APPENDICES
Contract Agreement Form for the Procurement of Goods (Revised) [Not required to be submitted with the Bid, but it shall be submitted within ten (10)
days after receiving the Notice of Award]
CONTRACT AGREEMENT
THIS AGREEMENT made the day of 20 between [name of PROCURING ENTITY] of the
Philippines (hereinafter called “the Entity”) of the one part and [name of Supplier] of [city and country of Supplier] (hereinafter called “the
Supplier”) of the other part.
WHEREAS the Entity invited Bids for certain goods and ancillary services, particularly [brief description of goods and services] and has
accepted a Bid by the Supplier for the supply of those goods and services in the sum of [contract price in words and figures in specified currency]
(hereinafter called “the Contract Price”).
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to them in
the Conditions of Contract referred to.
2. The following documents as required by the 2016 revised Implementing Rules and Regulations of Republic Act No.
9184 shall be deemed to form and be read and construed as integral part of this Agreement, viz.:
i. Philippine Bidding Documents (PBDs).
i. Schedule of Requirements.
ii. Technical Specifications.
iii. General and Special Conditions of Contract; and
iv. Supplemental or Bid Bulletins if any
ii. Winning bidder’s bid, including the Eligibility requirements, Technical and Financial Proposals,
and all other documents or statements submitted.
Bid form, including all the documents/statements contained in the Bidder’s bidding envelopes, as annexes, and all
other documents submitted (e.g., Bidder’s response to request for clarifications on the bid), including corrections to
the bid, if any, resulting from the Procuring Entity’s bid evaluation.
iii. Performance Security.
iv. Notice of Award of Contract; and the Bidder’s conforme thereto; and
v. Other contract documents that may be required by existing laws and/or the Procuring Entity concerned in the PBDs.
Winning bidder agrees that additional contract documents or information prescribed by the GPPB that are
subsequently required for submission after the contract execution, such as the Notice to Proceed, Variation
Orders, and Warranty Security, shall likewise form part of the Contract.
3. In consideration for the sum of [total contract price in words and figures] or such other sums as may be ascertained,
[Named of the bidder] agrees to [state the object of the contract] in accordance with his/her/its Bid.
4. The [Name of the procuring entity] agrees to pay the above-mentioned sum in accordance with the terms of the Bidding.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance with the laws of the Republic
of the Philippines on the day and year first above written.
[Insert Name and Signature] [Insert Name and Signature]
[Insert Signatory’s Legal [Insert Signatory’s Legal
Capacity] Capacity]
for: for:
[Insert Procuring Entity] [Insert Name of Supplier]
Acknowledgment
[Format shall be based on the latest Rules on Notarial Practice
80
APENDICES
I. COMPANY LOGO AND BUSINESS CARD
COMPANY LOGO
BUSINESS CARDS
FRONT
BACK
81
APENDICES
J. AUDIT CERTIFICATION
Certificate from Accountant
82
APENDICES
K. PLAGIARISM DETECTOR RESULT
Source: https://plagiarismdetector.net/
83
APENDICES
L. RESULT FOR GRAMMAR AND PROOFREADING
Certificate from Grammarian
84
RESOURCES
1. Company Firm Benchmarking Tool
1. Plan
5. Improve 2. Find
4. Analyze 3. Collect
Source: Strategic Management Insight It
comprises of following stages:

1. Plan. Form a group. Define what you want to compare in detail and assign metrics
to it.
2. Find. Identify benchmarking partners or information sources from which you will be
able to collect data.
3. Collect. Select the methods for gathering information and data for the metrics you've
defined.
4. Analyze. Determine the performance difference between your company and the
organization being observed by comparing the metrics. Deliver the findings and
suggestions for how to enhance performance.
5. Improve. Implement the changes to your products, services, processes, or strategy.
85
RESOURCES
Strategic benchmarking. Managers use this type of benchmarking to determine

how to compete most effectively in the market. Companies identify winning strategies
and apply them to their strategic process as part of the process. It is also common to
compare strategic goals to identify new strategic options. Since Nitibo Design Studios is
not only an interior design firm that focuses on nature-based design styles, it will also aid
the firm's benchmarking strategy by comparing other companies' strategic processes and
determining whether or not they align with the company's current goals.
Performance benchmarking. It is concerned with comparing the products and
services of your company. The tool primarily focuses on product and service quality,
features, price, speed, reliability, design, and customer satisfaction, but it can measure
anything with measurable metrics, including processes. This kind of Benchmarking
determines how strong Nitibo Design Studios services will be in comparison to the
competition.
Process benchmarking. It requires looking at other companies that engage in
similar activities and identifying the best practices that can be applied to your processes to
improve them. The nature-based design style of the firm is one of the common approaches in
starting companies. What differentiates the Nitibo Design Studios is the authenticity and
camaraderie that the company may bring by showcasing not just the design but also
local indigenous materials that can outsource to the nearest possible location from the
project. Process benchmarking is a separate type of benchmarking, but it usually derives
from performance benchmarking. This is because companies first identify the weak
competing points of their products or services and then focus on the key processes to
eliminate those weaknesses.
86
RESOURCES
2. Company Compensation Report
An annual compensation report must be completed at the end of the year to evaluate each
executive's performance and control both internal and external company operations.
87
RESOURCES
88
RESOURCES
3. Charging for Services

Depending on the project type, different rates may apply. These rates are based on the
Philippine Institute of Interior Designers (PIID) Document #5- Guidelines for Standard Fees.
3.1 On-site decoration project. Charged per square meter. The values vary according
to the regions of the country and the recognition of the professional.
Nitibo Interior Design Studio (Service Pricing)

Services Rates Duration
Small Project
(Max. 75 sq.m. 60,000 Php
Per Unit
Floor Area)
From 76sq.m. to 300 sq. Per Major
100,000 Php
m. Room
From 301 sq.m. and above
650,000 Php Per sq.m.
For the first unit

– 100% full fee
For the next 10 rooms
- 75% of the full fee For
the next 20 rooms Per sq.m.
- 20% of the full fee

Repetitive Work
For the balance of
number of rooms
- 5% of the full fee
50,000 Php Per unit

Renovation & Per sq.m +
Repair Works additional works
1,000 Php
89
RESOURCES
3.2 Express Decoration. A flat fee may be charged per package or an hourly rate, but
as it is a new service there is wide variation. Each professional defines how the service is,
what is included and how it will be charged.
Project Management Fees on Percentage Basis (% of
Budget Cost)
Economical Budget 10% Of the Budget
Cost
High-End Lux Budget 15% Of the Budget
Cost
Royalty Fee for Original Piece of 10,000 Php Per Pieces
Furniture, Fixtures
3.3 Interior Design Consulting. The consulting is charged by the hour.
Services Rates Duration
Consultation 800 Php Per hour
5,000 Php Per day
3.4 Fees on Percentage basis. 10%-15% of the budgetary cost for implementation.
90
RESOURCES
4. Salary Breakdown
Monthly Rate Benefits (10%) 13th Month Pay Annual Salaries

and Benefits
Senior Interior ₱ 35,000.00 PHP 3,500.00 PHP 29,166.67 PHP 533,166.67

Architect
Interior Design ₱ 33,000.00 PHP 3,300.00 PHP 27,500.00 PHP 505,100.00
Director
Interior Decorator ₱ 30,000.00 PHP 3,000.00 PHP 25,000.00 PHP 463,000.00
Director
Design Research ₱ 28,000.00 PHP 2,800.00 PHP 23,333.33 PHP 434,933.33
Director
Finance Manager ₱ 26,000.00 PHP 2,6000.00 PHP 21,666.67 PHP 406,866.67
Technical ₱ 24,000.00 PHP 2,400.00 PHP 20,000.00 PHP 378,800.00
Designer
Visual ₱ 23,000.00 PHP 2,300.00 PHP 19,166.67 PHP 364,766.67
Merchandiser
TOTAL PHP 165,833.33 PHP 3,086,633.33
91
NOTES
BPlans (n.d.). Architecture icon Architecture Firm Business Plan [WEB]. Retrieved from
https://www.bplans.com/architecture-firm-business-plan/ Ching, M. (2020, March 8). Interior Design
Philippines - Cost OfA
Project. RMJE Construction Services Corporation. Retrieved January 4, 2023, from
https://www.rmjeconstruction.com/interior-design-philippines-cost-of- a-project/ Greenhouse (2019,
Septemver 25). Guideline: Business Incorporation
in the Philippines [WEB]. Retrieved from
https://greenhouse.co/guides/guideline-business-incorporation-in-the- philippines
GMBH. (2019). Business Plan. Indo-Sierra Furniture & Interior Design
Services Limited [PDF]. Retrieved from
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COLLEGE OF ENGINEERING AND

ARCH522: BUSINESS MANAGEMENT & APPLICATION FOR ARCHITECTURE 2

Figure No. Page No.

Table No. Page No.

1.1 Mission and Vision

To provide top quality client service and highlight local

Short Term Objectives

4. Deliver services while considering quality, sustainability, reasonable cost,

Long Term Objectives

1.3 Keys to Success

The company’s success can be determined through bringing the

1. Provide services that are technologically abreast in the global

2. Utilizing a diverse staff of architects to provide a wide variety of product styles;

Figure 3. Client’s Satisfaction

4. Have a large array of global connections.

This portion accentuates the organizational composition and the connection

2.1 ORGANIZATIONAL CHART

FIGURE 5: Organizational Chart

2.2 ROLES AND RESPONSIBILITY

2.2.2. Project Manager. A project manager oversees planning and supervising

2.2.4. Visual Merchandiser. A visual merchandiser specializes in the development

2.3 COMPANY OWNERSHIP

Figure 6. Company Location

3.2 Company Facilities

Figure 7. Reception Area

Figure 8. Main Conference Room

Figure 9. Small conference Room

Figure 10. Studio/Working Space

Figure 11. Company Break Room

Figure 12. Company Software

Figure 13. Company Hardware

3.3 Service Description

Figure 14. Service Description

Figure 14.1. Client consultation or briefing Source:

This stage in Pre-Design Services is intended to obtain client requirements

Figure 14.3. Design Visualization

Project Management Services

3.4. Firm Capabilities

Figure 15. Marketing Framework Source:

The design framework is a strategy that describes each phase of marketing

4.2 Positioning Statement

4.2 Competitive Advantage

Team of several professions: interior

Refurbishing old furniture, recycling

Figure16. Competitive Advantage Source:

When it comes to service of interior design service, Misamis oriental is still

4.4 SWOT Analysis

Figure 17. SWOT Analysis

The company has a strict policy on submission of project since a principal

4.3 Marketing Plan

Table 1. Service Rates

SERVICES RATES DURATION

For the first unit -100%

Table 2. Project Management fees on percentage basis (% of

Table 3. Reimbursable Expenses + 10% Service Charge

Figure 19. Partnerships

Figure 19.1. Billboard

Figure 19.2. Instagram Account

Figure 20.1. People

4.3.5 Physical Evidence

Figure 20.2. Nitibo Design Exterior Perspective Source:

Figure 20.3. View of the driveway

Figure 20.4. Ground floorplan

Figure 20.5. 2nd floor plan