JDB GUITAR CENTER

Jhay D. Bobiles 1
 JDB GUITAR CENTER
(A Business Improvement Plan Work in Partial
Fulfilment of the Subject Entrepreneurship)

Presented to:

Dr. Calixto L. Valera

Presented by:

BOBILES, Jhay D.

Table of Contents
Executive summary ----------------------------------------------------------------------------- 4
Description of the business --------------------------------------------------------------------- 5
Vision

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Mission -------------------------------------------------------------------------------------------- 6
Description of the Product and Services ------------------------------------------------------ 7
Products offered
Service Offered ----------------------------------------------------------------------------------- 8
Location of the Business ------------------------------------------------------------------------ 9
Market Strategies -------------------------------------------------------------------------------- 10
Marketing Objectives
Determination of Market Share ---------------------------------------------------------------- 11
Pricing Strategy ---------------------------------------------------------------------------------- 12-13
Promotion strategy
Competitive edge
Sales strategy ------------------------------------------------------------------------------------- 14
Sales forecast
Annual Sales ------------------------------------------------------------------------------------- 15
Analysis of Competition ------------------------------------------------------------------------ 16
Operation and management -------------------------------------------------------------------- 17
Organizational structure ------------------------------------------------------------------------ 18
Management
Capital Requirement ---------------------------------------------------------------------------- 19
Book of account
Book of Sales ------------------------------------------------------------------------------------ 20
Book of expenses ------------------------------------------------------------------------------- 21
Projected income statement ------------------------------------------------------------------- 22
Projected balance sheet ------------------------------------------------------------------------ 23
Projected cash flow Statement ---------------------------------------------------------------- 24-25
Reference letter --------------------------------------------------------------------------------- 26

EXECUTIVE SUMMARY

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The Business Plan features the details of starting a small business in the Province of Abra.
The business had been able to source for the best hands and machines to run the Center with
which they put process and strategies that will place them employ for the quality products
when it comes to arts and music. However, the costumer’s best interest will come first, and
everything they want to put in the guitar instrument will be process by the owners. The
owners will ensure that they hold themselves accountable to the highest standards by meeting
their client’s need precisely and completely. They will cultivate a working environment that
provides sustainable approach to earning a living for our employees.

Before starting JDB Guitar Centre, Mr. Jhay Bobiles. Hence, has extensive experience
about Financing.

DESCRIPTION OF THE BUSINESS

JDB Guitar Center is a shop that helps students and musicians to meet their needs. JDB
Guitar Center sells and leases musical instruments and accessories to the Province of Abra.
JDB Guitar Center will offer services and sell acoustic and electric guitars and other. It plays

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a great role to the economy for it may help those music aspirants in learning the keys on how
to play and use guitar. This guitar shop intended to create numerous employment
opportunities while its aim is to generate income and to meets the needs of the community in
affordable cost. Therefore, efforts should be taken in the business to ensure safety and good
standards in teaching ability and excellent products.
JDB Guitar Center is just a year-round business and it is a partnership business
wherein the main activity of the business is to provide quality products in the Province of
Abra. The business has become one of the micro businesses since its product are part of
education for larger population so that they strive to advance knowledge and understanding in
diverse sector of music industry. Hence, the industry offers musical instruments and tutorial
lesson of proper playing certain instruments that is needed by the people.

The JDB Guitar Center is a retail outlet where different kinds and brands of guitars and
accessories and also customized instruments sold basically by JDB Guitar Center. It ensures
that the target location is easily attracted students and musicians.

VISION
To serve as a partner to the musician, supplying solutions to the problems he
encounters in trying to create his art and transmit it to others.

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MISSION
JDB Guitar Center provides guitar instruments to the community. we separate ourselves
from or direct competitors by paying intense personal attention to our customers and
educating our clients about the products they need or desire before, during and after the sale
and we provide on-site repair services for the items we sell.

DESCRIPTION OF THE PRODUCT AND SERVICES

JDB (Jhay D. Bobiles) Instrument Center will sell new and used musical instruments
and accessories. Our primary items will be new electric and acoustic guitar instruments. In
addition, we will have a full-service, on-site repair and customization department.
We will offer “state of the art” music lesson program featuring top degreed
instructors, as part of our overall focus on educating our costumer’s base. This program will
include private and group lessons. We will also develop music clubs geared generally to
those who are interested to learn guitar lessons.

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In addition, to complete repair services for our products, we will emphasize upgrades
and customization items to develop other income streams our competitors have not
considered. When carrying the brand name item conflicts with giving the costumer the best
all-around value, we will always pursue the product that best suits our clients’ interest.

PRODUCTS OFFERED

Tools:
 Acoustic Guitars
 Electric Guitars

 Capo
 Strings (electric guitars-steel and nickel) brass, bronze and nylon
 Pick
 Cord for Electric Guitar
 Guitar cases and gig bags

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 Customization tools

SERVICE OFFERED

Customization Area

Teach Guitar Lessons

LOCATION OF HE BUSINESS

JDB Guitar Center is located at Barangay Zone 5 Bangued, Abra near Gold Cuts. The
firm is also permitted to repair and customize different types of Guitar instruments to every
Customer. Customers may contact us through E-mail jhaybobiles1202@gmail.com or call
09950789527 and by messaging the Facebook Page and Instagram Jhay D.BobilesGuitar
Center.

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MARKET STRATEGIES

The marketing strategy is to focus on the 4P’s of Marketing (Product, Price, Place and
Promotion). The first consideration in serving the target customers is the product.
The product will serve the target customers by offering a varied selection to
appeal to different personal wants and customization. There will be a list of Musical
Instruments and design that will suit their interest and needs. The product will be good
quality and well customized that will surely satisfy the customers.

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Marketing Objectives
 Maintain a minimum gross profit margin of 40%.
 Create a hands-on, educational approach to musical instrument merchandising.
 Aggressively target the public-school system and local religious organizations.

Determination of the Market Share

Number of prospects in the target market 1,500 in head

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Frequency of purchase per year 25 times
(average)
Total number of purchases per year 5,000
Average payment per purchase ₱ 10,000
Projected total industry sales per year ₱ 2,000,000.00

Percentage the firm can attain 10%

THE FIRM’S MARKET SHARE ₱ 3,200,000

Pricing Strategy

Pricing is the most important factor for this business to compete with competitors to
sustain in the market. The Music Center provides musical instruments and accessories with
affordable prices and provide price discount on bulk amount of product. Its sales product with

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a limited profit that means sales price is cost plus limited profit. Cost plus pricing is cost-
based method for setting the prices of goods and services.
Our plan requires that all our merchandise be clearly marked with fair, street-value
prices. These prices will be appealing to 85% of our customers. For those consumers
requiring deeper discounts, our entire sales staff will be empowered to negotiate discounts if
the sales representative deems it in the best interest of the store. Value adding and margin
boosting merchandise will be bundled with low margin bestsellers to keep net margins
acceptable. For all of this to come about, we must first approach and give thorough sales
presentations to each potential customer that walks through our door, and we must interrogate
them to find out any pricing issues that may affect the buying decision. Additionally, we must
actively pursue adding non-traditional means of income to each major ticket sale; i.e.,
upgrades/customization, service contracts, rentals. This will allow us to not only gain our
customers' confidence but will give us additional revenue streams the average Guitar
Instruments dealer has not even considered.

Profit Computation Table

Products SRP COST OF GROSS

PURCHASE PROFIT
Davis Acoustic Guitar (Package/Natural 15,699 2,800 12,899
Wood)
Global Acoustic Guitar Package 12,999 2,100 10,899
Thomson Acoustic Guitar Package 15,000 5,199 9,801
Electric Acoustic Guitar 10,498 4,599 5,899

Products SRP COST OF GROSS

PURCHAS PROFIT
E

Deluxe Electric Guitar 15,485 4,499 10,986

Mini Double Cutaway Electric Guitar 13,485 4,499 8,986
Modern Electric Guitar 13,999 5,100 8,899
Short-scale Classic Electric Guitar 8,607 5,700 2907
Tribute Legacy Electric Guitar 25,000 12,100 12,900

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Tools SRP COST OF GROSS PROFIT

PURCHASE
Capo 169 120 49
Stickers 50 25 25
6- String Guitar String Core (Nylon) 57 25 32
1 string only 15 10 5
Electric Guitar String Set 149 100 49
Cord 250 100 150
Straps 149 100 49
Customized Guitar Pick 150 100 50
Guitar Soft Case Bag 249 150 99

Customization Price
Whole 200-299
Limited 49-199

The third component of the marketing strategy will be Place, the appearance of the
store and location. The strategy using the old time can distort decorated with a music design
will create interest to bring a new customer.

Promotion Strategy

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The fourth marketing strategy is promotion; advertisement will be persuading a lot of
people to buy the product. The business creates a website like Facebook, Instagram and
google. That can be used to directly interact and direct sales with the costumers.
JDB Guitar Centre will target our desired customer base using Radio, Direct Mail,
Newspapers and word of mouth. Radio is the greatest vehicle to reach musicians for the
simple reason that the love of music is what drives us to become musicians. Direct Mail will
target consumers who are budget or coupon minded. Newsprint reaches a large portion of the
public, letting them see what we have to offer before making a trip to the store. Word of
mouth is the one area we really hope to see develop, as a personal endorsement by a customer
is worth more to us than what any advertisement can achieve.
JDB Guitar Centre will always promote itself as an education-oriented store, offering
private and group lessons for all the instruments we sell. Our motto is "Stop Dreaming,
Start Playing!"

Competitive Edge
Our most critical competitive edge will be the way we treat our customer base. We
must deliver greater interaction and satisfaction than our peers to every consumer from the
start, in order to win their trust and earn their repeat business. Guitar instrument consumers in
the Bangued area are used to poor service and the apathy of local dealers. We must break this
chain if we are to differentiate ourselves from the competition and excel. Our unique
marketing plans and repair/customization services will also make us stand out from the
crowd. We will have a multi-faceted plan of attack in place to accommodate our prospects
from the beginning to the end of their shopping experience. We will also go a step further
through our customer retention plans, by keeping our store in the minds of these customers
after they leave, so they will want to return. None of our local competitors actively does this.

Sales Strategy
JDB Guitar Centre will always operate under the assumption that any customer
who enters our store is potentially a customer of our competitors. We will always strive to
give each client our utmost attention and will try to accommodate whatever need brought him
or her to us. We will make every effort to win them over in a low-pressure relaxed
atmosphere, while stimulating their senses with modern eye-catching displays designed to
maximize impulse buying. FHM will always bend to the type of customer we are
serving, whether he or she is a professional, novice, parent, or child. We want the largest
market to share we can get and must do anything in our power to achieve this goal.
In short, nobody walks out unless we are satisfied, we did everything possible to gain
his or her business either today or in the future!

Sales Forecast

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Our projections are largely based on Jhay Bobiles experiences in music industry and
as a business man. We believe we can easily meet the projected sales figures for the first year
and believe we may be conservative in our projections for the next two years. Mr. Bobiles
compiled a list of over 4,000 musicians she has helped during her tenure in the Musical
Instrument market. This will allow us to save time and money by drawing in proven
customers for the opening of the store, and a client base to operate from during the initial
months.

ANNUAL SALES

JDB GUITAR CENTER

Distributing a Service

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Guitar instrument re-sellers are supplied by a variety of means:
1. Direct purchases from manufacturers - generally the best price, but higher minimum
orders.
2. Purchases from national distributors - large selections, good prices.
3. Purchases from regional distributors - small selection, average pricing.
4. Specialty distributors/mfg. reps - good to great pricing based on yearly volume.

ANALYSIS OF THE COMPETITION

It is essential for every business organization to identify its existing competitor’s skill,
strength and as well as weaknesses. The direct competitor of JDB Instrument Center and its
indirect competitor is “Country Valley”. The strength of “Jhay D. Bobiles Guitar Center” was
being famous to the Province of Abra and it only worth it among others because they are
selling other instruments and appliances. The weakness of the company is having insufficient
parking lot.
The business can adapt it fast and it can also find a unique strategy to be recognized
by the Abra community and other places. It can also improve the expansion of the location
and the service of the workers from failing to meet the highest possible demand for the firm
to achieve a good profit and the stabilization of the business.

Comparison of the Strengths and Weaknesses of Competing Shops

Key Assets and Skills Our Competitor A Competitor B
Company
Good Business Location Strength Strength Strength

Good Quality Product Strength Strength Weakness

Good Services Strength Weakness Weakness

Strong Financial Capacity Strength Strength Strength

OPERATION AND MANAGEMENT

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JDB Guitar Centre will require its staff to be multi-skilled. Each employee will likely
oversee many aspects of the business on a given day. Our main divisions will be Sales,
Service and Administration. Our focus on customer service will depend on all our employees
knowing as much about each area of the business as possible. A complete book of structures
and policies, along with successful actions, will be created and maintained from the date of
opening to streamline the process of adding new employees as they become necessary.
Ongoing training for all employees will be necessary in order to keep our edge on the
competition.

Organizational Structure

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MR. Jhay D. Bobiles

Co- Owner
Operation Manager

Mr. Virgilio Bobiles

MR. Jhomel Bobiles
Co-Owner
Service Department
Store Manager

MR. Jacob Bobiles

Guitar Instructor

Mrs. Della Bobiles

Customize area Personnel

Management
The Operations Manager will manage overall operations and is responsible for the
effective and successful management of labor, productivity, quality control and safety
measures as established and set for the Operations Department. Ensure safe and efficient
operations. Store Manager will serve customers by providing merchandise and supervising

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staff. Service Department Manager manages service department team members, including
customer service interactions, reports, and repairs. Provides the highest level of customer
service with a sales-minded attitude while developing lasting customer relationships.

Capital Requirement
EQUIPMENTS NO. of ITEMS CAPITALREQUIREMENTNS
Printer 3 15,000
Songbooks 20 10,000
Gig bags/case 200 200,000
Guitar stand 100 24,000
Guitar humidifier 100 20,000.50
Guitar cleaners 50 30,000
SUB TOTAL: ₱299,000.5
TOOLS
Screwdriver 15 7,470.50
Hex adapter 30 9,500.25
Telescopic adjustment mirror 50 35,750
Diagonal cutter 15 4,200
Feeler gauges 50 13,480
String winder 30 3,090
SUB TOTAL: ₱73,490.75
ACCESSORIES
Stickers 1000 94,000
Picks 500 74,500
Capo 250 22,250
Strings 300 44,700
Straps 500 74,500
SUB TOTAL: ₱309,950
Acoustic Guitar (Price may vary)
Electric Guitar (Price may vary)
SUB TOTAL:

Sources of Funds
Financing

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Partners Contributions

Jhay D. Bobiles 150,000.00

Jhomel Bobiles 150,000.00

Virgilio Bobiles 150,000.00

Total Equity Financing ₱450,000.00

Book of Accounts
JDB Guitar Centre
Purchases Book

Purchases Cost
Equipment ₱299,000.5
Tools ₱73,490.75
Accessories ₱309,950
Total Purchase Cost ₱682,441.25

JDB Guitar Centre

Book of Sales
As of December 2018

DAY SALE
Day 1 ₱5,245
Day 2 ₱6,132
Day 3 ₱4,100
Day 4 ₱5,500
Day 5 ₱6,743
Day 6 ₱6,232
Day 7 ₱4,370
Day 8 ₱3,500
Day 9 ₱3,045
Day10 ₱3,239
Day 11 5,056
Day 12 ₱5,000
Day 13 ₱5,350
Day 14 ₱6,143
Day 15 ₱4,005
Day 16 ₱7,500
Day 17 ₱7,300
Day 18 ₱3,400
Day 19 ₱4,000

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Day 20 ₱56,350
Day 21 ₱4,400
Day 22 ₱3,675
Day 23 ₱3,900
Day 24 ₱5,139
Day 25 ₱8,750
Day 26 ₱7,268
Day 27 ₱6,500
Day 28 ₱4,949
Day 29 ₱5,500
Day 30 ₱5,700
Day 31 ₱5,635
TOTAL ₱213,626

JDB GUITAR CENTER

Book of Expenses
For a Year

Expenses Cost (₱)

Water Bill 25,000
Electricity Bill 41,300
Worker’s Salaries 120,000.00
Loan 1,000,000.00 (paid for 5 years)
Tax 40,000.00
Other Expenses 38,000.00
Total Expenses 2,264,300.00

JDB GUITAR CENTER

MONTHLY SALES PROJECTION

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JDB GUITAR CENTER

PROJECTED INCOME STATEMENT
2019-2022
Income 2019 2020 2021 2022
Guitar Sales 250,000 235,000 229,000 240,000

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Total Income 250,000 235,000 229,000 240,000

Cost of Sales
Guitar Sales 140,780 132,090 140,590 100,499

Total Income 140,780 132,090 140,590 100,499

Gross Margin 109,220 102,910 88,410 139,501

Salaries and Wages

Owner’s compensation 150,000 150,000 150,000 150,000
Salaries - - - -
Full Time Employees 10,000 10,000 10,000 10,000
Payroll Taxes and Benefits 70,000 70,000 75,000 75,000
Total Salary and Wages 230,000 230,000 235,000 235,000

Fixed Business Expenses

Advertising 100,000 96,000 98,100 100,000
Car and Truck Expenses - - - -
Commission and Fees - - - -
Credit Card and Bank - - - -
Customers Discounts - - - -
and Refund
Internet 25,000 24,500 24,500 23,900
Repairs and Maintenance 45,500 30,000 38,790 45,000
Supplies 250,000 230,500 236,600 245,900
Travel - - - -
Water Expenses 25,000 25,000 28,500 27,980
Power Expenses 41,300 45,700 43,909 40,891

Total Fixed Business 486,800 451,700 470,399 483,671

Expenses

JDB GUITAR CENTER

PROJECTED BALANCE SHEET
2019-2022

ASSETS

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Current Assets 2019 2020 2021 2022
Cash 160,870 170,900 175,780 183,000
Accounts Receivable - - - - -
Inventory 1,509,000 1,550,000 1,565,798 1,569,000
Prepaid Expenses 380,090 380,000 380,000 380,000
Total Current Assets 2,049,960 2,100,900 2,121,578 2,132,000
Fixed Assets
Leasehold Improvements 550,000 550,000 550,000 550,000
Equipment 475,000 475,000 475,000 475,000
Furniture and Fixtures 250,000 250,000 250,000 250,000
Other Fixed Assets - - - -
Total Fixed Assets 1,275,000 1,275,000 1,275,000 1,275,000

Less: Accumulated Depreciation 50,000 50,000 50,000 50,000

Total Assets 3,274,960 3,325,900 3,346,578 3,357,000

Liabilities and Owner’s Equity

Liabilities 150,000 150,000 150,000 150,000
Total Liabilities 150,000 150,000 150,000 150,000

Owner’s Equity
Retained Earnings 180,000 185,000 190,000 195,000
Common Stock 206,000 190,000 200,000 210,000
Total Owner’s Equity 386,000 375,000 390,000 405,000

Total Liabilities and 536,000 525,000 540,000 555,000

Owner’s Equity

JDB GUITAR CENTER

PROJECTED CASH FLOW STATEMENT

2019-2022

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2019 2020 2021 2022

Cash Sales 575,000 570,500 580,000

580,900
Receivable 372,000 385,500 390,500 400,000
Other Income 110,000 110,000 10,500 110,000
Total Income 1,057,000 1,066,00 981,000 1,090,900

Material 150,000 160,000 170,000 170,000

Direct Labour 40,000 40,000 40,000 40,000
Research and
Development 20,000 20,000 25,000 25,000
Taxes 40,000 40,000 40,000 40,000
Loans 250,000 250,000 250,000 250,000
500,000 510,000 525,000 525,000

Total Cash Flow 557,000 556,000 456,000 565,900

REFERENCE LETTER

Bobiles, Jhay D.
Zone 5 Bangued, Abra
jhaybobiles1202@gmail.com

Mr. Calixto L. Valera

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Dial-Up Commercial
Zone 7 Bangued, Abra

Dear Mr. Calixto L. Valera

I am the owner of JDB Guitar Center. A Guitar Shop that provides quality product
and well-made customized design for Guitar Instruments for everyone that can afford and
teaching children how to play guitar instruments. We want to refer to you about the said
business and how can we able to run this thoroughly. We want to know your insight about the
advantages and disadvantages of our business along with our business plan.

The JDB Guitar Center offers customization and guitar lesson for the costumer that
needs an idea on how to play Guitar instruments. The owners ensured the quality of the
products that will suit the interest of our customers and their preferred designs for their
Instrument and may enjoy them while seeing an artistic designed product. The JDB Guitar
Center comes up to an idea about putting up a design and teaching how to play a guitar to the
costumers at the same time. The designs will be depended on the costumer of what they like
to put.

We hope that you will write back to us your insights. Good day and thank you!

Sincerely yours,

Jhay D. Bobiles

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