Summary 1. business concept 2. Current situation 3. key success factors 4.

financial situation/ needs

Financials of the Business Plan 1. Assumptions and Comments 2. Starting Balance Sheet 3. Profit and Loss Projection 4. Cash Flow Projection 5. Balance Sheet Projection 6. Ratio's and Analysis

The four months season of Hub2Have had a great one for the PUP students for distinctive PUP merchandise online. Hub2Have is the middle man which offers creative PUP-inspired clothing that is both fashionable and beautiful. The savings are passed on to our customers who will be paying a fraction of what they normally do for current retreated fashion in stores.

Hub2Have consists of best fabric, designs and styling on the market. Mariel Pares and Josephine Ramos, co-owners of PUPianlifestyle, have 2 years of experience between them in the garment industry. Mariel has been a clothing designer of the said business for the past 3 years. Josephine has been one of the endorser of the business standing as the Vice President of the Commonwealth Information Technology Society of 2011 2012. In the present scenario of Hub2Have is playing very essential role in the online business. Although it is one of the best and cheapest intermediate for reaching out to new customers in the online market, if ecommerce implemented effectively, it also offers a smart way of doing online business and expanding it more. Hub2 Have is planned and implemented to make the most of its reach to potential customers and provide them with a convenient, satisfying and protected shopping experience.

Another strength of Hub2Have is that it will not maintain any clothing inventory. Hub2Have has contracted with PUPianlifestyle, the merchandise garment business on PUP Sta. Mesa. Our business is being considered as the PUPianlifestyle branch on PUPQC campus. The PUPianlifestyle together with the COMMITS will maintain the inventory and will produce sufficient product to meed the planned demand.
25000

20000

15000 Sales Gross Margin 10000 Net Profit

5000

0 Year 1 Year 2 Year 3

1.1 Mission (Ung mission na ginawa dati ni ate cess :D)

1.2 Vision (ung vision na ginawa dati ni ate cess :D) 1.3 Keys to Success a. Providing value to customers. Vendors can achieve this by offering a product or product line that attracts potential customers at a competitive price. b. Providing service and performance. This can be done by offering a fast, user-friendly purchasing experience. c. Providing an attractive site. This can be done by the tasteful use of colour, graphics, animation, photographs, fonts and white space percentage. d. Providing an incentive to buy and to return. This can be done with sales promotions like special offers and discounts. Cross-linked web sites and advertising affiliate programs can also be used. e. Providing personal attention. This can be done by personalized web sites, purchase suggestions and personalized special offers. f. Providing a sense of community. This can be done with message boards. g. Providing reliability and security. Parallel servers, fail-safe technology, information encryption and firewalls can enhance this requirement. h. Providing a customer relationship. i. Owning the customer s total experience. This can be done by treating any contacts with a customer as part of a total experience. j. Streamlining business processes. k. Letting customers help themselves. Provision of a self-serve site, easy to user without any assistance, can help in this respect.

1.4 Financial Needs Hub2Have s start-up cost consists mostly of marketing. Hub2Have has Php 3000 in investments and Php 2000 in a short-term loan.

Start-up Funding
Start-up Expenses to Fund Start-up Assets to Fund

In Php
1500 3500

Total Funding Required

ASSETS
Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

5000

0 3500 0 3500

3500

LIABILITES AND CAPITAL LIABILITIES

Current Borrowing Short-term Liabilities Accounts Payable Other Current Liabilities Total Liabilities 0 2000 0 0

2000

CAPITAL
Planned Investment Investor Additional Investment Requirement Other 2000 500 500

Total Planned Investment Loss at Start-up Total Capital Total Capital and Liabilities Total Funding

3000 (1500) 1500 3500 5000

Start-up
REQUIREMENTS START-UP EXPENSES
Office Supplies Computer Equipment/Software (Open Source) Transportation Website (Design) Foundation Day Booth Printing Other

In Php

150 300 250 250 200 200 150

Total Start-up Expenses

START-UP ASSETS
Cash Required Start-up Inventory Other Current Assets

1500

2500 0 1000

Total Assets Total Requirements

3500 5000

Financial Plan

Break-even Analysis Our break-even analysis is based on running costs, the costs we incur to keep the business running.

Break-Even Analysis
8000 6000 4000 2000 0 -2000 -4000 -6000 -8000 Break-Even Analysis

Projected Profit and Loss The following table and chart are the projected profit and loss for three years.

Profit Monthly
3500 3000 2500 2000 1500 Profit Monthly 1000 500 0

Profit Yearly
25000

20000

15000 Profit Yearly

10000

5000

0 Year 1 Year 2 Year 3 Year 4

Gross Margin Monthly

1000 900 800 700 600 500 400 300 200 100 0

Gross Margin Monthly

Gross Margin Yearly

60000 50000 40000 30000 Gross Margin Yearly 20000 10000 0 Year 1 Year 2 Year 3 Year 4

Pro Forma Profit and Loss YEAR 1 40800 34800 0 34800 5916 17 YEAR 2 38800 32800 0 32800 5576 17 YEAR 3 42000 36000 0 36000 6120 17

SALES Direct Cost of Sales Other Production Expenses TOTAL COST OF SALES Gross Margin Gross Margin % Expenses Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Web Designer and Administrator Rent Other TOTAL OPERATING EXPENSES Profit Before Interest Interest Expense Taxes Net Profit

2000 0 0 1000 0 4000 0 0 7000 7000 0 0 7000

2500 0 0 1000 0 4000 0 0 7500 13200 0 0 13200

3500 0 0 1000 0 6000 0 0 10500 15400 0 0 15400

Net Profit/Sales

0.83%

1.66%

2.6%

7000 6000 5000 4000 3000 2000 1000 0 -1000 Net Cash Flow Cash Balance

Cash Flow Projection

Pro Forma Cash Flow YEAR 1 Cash Received Cash from Operations Cash Sales YEAR 2 YEAR 3

40800

38800

42000

Subtotal Cash from Operations

Additional Cash Received Sales Tax, VAT Received New Current Borrowing New Other Liabilities New Short-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received

40800

38800

42000

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

Subtotal Cash Received

40800

38800

42000

Expenditures Expenditures from Operations Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Web Designer and Administrator Rent Other Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT Principal Repayment of Current Borrowing Other Liabilities Prinicipal Repayment Long-term Liabilites Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividents Subtotal Cash Spent Net Cash Flow Cash Balance

2000 0 0 1000 0 4000 0 0 7000

2500 0 0 1000 0 4000 0 0 7500

3500 0 0 1000 0 6000 0 0 10500

0 0 0 2000 0 0 0 9000 31800 18000

0 0 0 2000 0 0 0 9500 29300 16000

0 0 0 2000 0 0 0 12500 29500 19500

Projected Balance Sheet

Pro Forma Balance Sheet YEAR 1 Assets Current Assets Cash YEAR 2 YEAR 3

18000

16000

19500

Other Current Assets

Total Current Assets Long-term Assets Accumulated Depreciation Total Long-term Assets

0
18000 0 0 0

0
16000 0 0 0

0
19500 0 0 0

Total Assets
Liabilities and Capital Current Liabilites

18000

16000

19500

Accounts Payable
Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilites

2000
0 0 2000 1200

2000
0 0 2000 1200

2000
0 0 2000 1200

Total Liabilities
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilites and Capital

3200
3000 1500 500 5000 18000

3200
3000 1500 550 5050 16000

3200
3000 1500 1275 5775 19500

Net Worth

5000

5050

5775

Business Ratios

Ratio Analysis YEAR 1 0.00% 0 YEAR 2 17.00% 0 YEAR 3 28.23% 0

Sales Growth Percentage of Total Assets Other Current Assets

Total Current Assets

Long-term Assets

100%
0

100%
0

100%
0

Total Assets
Current Liabilities Short-term Liabilites

100%
12.43% 4.3%

100%
10.21% 2.2%

100%
8.5% 2.6%

Total Liabilities Net Worth

16.73% 83.27%

12.41% 87.59%

11.1% 88.9%