lucky's fashion (hand made accessories)
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8/8/2019 LUCKY's FASHION (Hand Made Accessories)
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University of Nueva Caceres
City of Naga
COLLEGE OF BUSINESS AND ACCOUNTANCY
In Partial Fulfillment of the Requirements inMGT312-F9a – Fundamentals of Entrepreneurship
LUCKY’S FASHIONLUCKY’S FASHION(Hand Made Accessories)
A Business Plan
Submitted to:
ELDA F. CLORES, MBA
Submitted by:
Group II
Wenalyn A. Francisco
Sandra L. Recha
Michelle E. EndayaJoanne B. Noora
Luckilyn C. Ordañez
Charlyn B. NaguitAdelfa B. Bobijes
Kim B. Bataller
Daniel H. Garcia
A/Y 2010, 1st semester
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ACKNOWLEDGEMENT
The success of this project cannot be measured by its size nor the number of
pages, but the knowledge, time, efforts and also for skills and talents shared on their own
ways. For these, would like to express our sincerest thanks:
To our parents, who continuously support and guide us in all of our undertakings
and likewise “Serving as an Inspiration” for us to keep on…
To our Professor Maam Elda Clores, who just hardly delivered to us and also help
us to understand this subject better.
To our friends who helped us a lot to make this project successfully and give us
suggestions and advice in making this project.
To each and everyone to the group for still trying to make this Business Plan,despite of so many projects given to us during this semester end, without the group this
project would not be possible.
And above all, Our Almighty God who enlightened and give us strength to face
all the challenges that He brought us to learn not only for our mistakes but for the realityand essence of life.
“GOD IS ALWAYS THERE TO HEPL US AND CARRY US”
To all who’s been part of it….THANK YOU VERY MUCH!!!
Group II
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TABLE OF CONTENT
TITLE PAGE
ACKNOWLEDGEMENT
TABLE OF CONTENT
I. EXECUTIVE SUMMARY 1
II. VISION/ MISSION/ OBJECTIVES
A. Present Situation 1
B. Vision and Mission 2
C. Objectives 2
III. COMPANY OVERVIEW
A. Name, Nature and taxation of the business 3
B. Legal business description 4
C. Strategic Alliance 4
IV. ORGANIZATION AND MANAGEMENT
A. Organizational Structure 5
B. List of Officers and Staff 5
C. Job Description 5
D. Compensation Allowance 6
E. D. Profit Sharing Analysis 6
V. PRODUCT STRATEGY
A. Product Description 7
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B. Importance of the product 7
C. Packaging, Labeling & Branding of the product 7
VI. MARKET ANALYSIS
A. Market Definition 8
B. Competition 8
C. Demand and Supply 8
D. Risk 9
VII. MARKETING PLAN
A. Sales Strategy 9
B. Market Distribution 9
C. Pricing Strategy 10
VIII. PRODUCTION PLAN
A. Production Process 10
B. Production Schedule 11
IX. FINANCIAL PLAN
A. Assumptions 12
B. Capital Requirement 14
C. Financial Statement 15
CONCLUSION
DOCUMENTATION
CURRICULUM VITAE
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I. EXECUTIVE SUMMARY
Name of business: LUCKY’S FASHION (Hand made accessories)
Location: Zone 9 Poblacion Pamplona, Cam. Sur
Form of organization: Sole Proprietorship
Proponents: Group II
Wenalyn A. Francisco
Sandra RechaMichelle Endaya
Joanne Noora
Luckylyn OrdoñezCharlyn Naguit
Kim Bataller
Adelfa Bobijes
Daniel Garcia
Total project Cost: P17, 000
Return on Investment: P16, 014
Payback Period: Three months
Project Target Implementation: November 2010
II. VISION AND MISSION STATEMENT
The Present Situation
Accessories are decorative items that supplement one's garment, such as
jewelry, gloves, handbags, hats, belts, scarves, watches, sunglasses, pins,
stockings, bow ties, leg warmers, leggings, neckties, suspenders, and tights.
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Accessories are adding a color, style and class to an outfit, and create a certain
look to an individual. Accessories are also available in the form of bracelets,
necklaces, earrings, and shoelace accessories.
The proponents propose the business named LUCKY’S FASHION will
create a new form of accessories. The business came in the idea of old magazines
created into a necklace, bracelets and etc. Magazines are a colored paper which
contains a collection of articles, stories, pictures, or other features.
The proponents choose this business because it is easy to prepare, it
requires less capital and equipment. The product will also help our environment
by recycling the old things. The proponents believe that this kind of opportunity
would be profitable business venture because of the affordability of the price and
the trendy designs of the accessories.
Vision
To be one of the leading supplier of innovative and creative
accessories in Bicol Region.
Mission
The “Lucky’s Fashion” mission is to used the old magazines and
help our environment to lessen the pollutions that is harmful to the health of
the people.
Objectives
1. To introduce and produce affordable products to Bicol’s business
industry.
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2. To encourage people to be creative and use recycle things to gain
income.
3. To help the city government lessen the unemployed people in Naga
City.
III. COMPANY OVERVIEW
A. Name, Nature and taxation of the business
The proposed business plan name Lucky’s Fashion is a under a sole
proprietorship. This is the simplest and most common form of business
organizations because it is being run by one individual who also owned most of
the assets and properties of the business. The liabilities, management and control
are all in the hands of the owner who makes plans, strategies and decisions in the
business. The profit generated by the business solely belongs to the owner but his
sole managerial decisions and profit taking could mean exclusivity, thus burden is
not distributable in contrast to other forms of business organization.
The Lucky’s Fashion is a handmade accessory that offers at a low
cost handmade accessory. The raw materials are from the used magazines
and brochure. With the used of creativity, accessories could be fashionable
and looks elegant. These accessories can be match with any type of outfit or
RTW’s (Ready to Wear Clothes). In order to make it looks more elegant,
we added beads and if you want to make it more fashionable we followed
the trendy style in the market. We also provide boxes for the accessories so
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that buyers will have another idea that this products are ideal also for gift or
give aways.
B. Legal Business Description
The proponents of the business will acquire the necessary permits,
license and business registry to operate the business legally. First, we
register the name of the business to Securities and Exchange Commission
(SEC) then, the business must approved by the Department on Trade and
Industry (DTI) and secure a Mayor’s permit. The products will be on a
direct selling basis however, consignment basis are also welcome for those
who wants to re-sell our product. The business is located at Zone 9
Poblacion Pamplona Cam. Sur.
C. Strategic Alliance
The proponents will cooperate with the DTI (Department of Trade
and Industry, and different establishment to help us promote the product to
the potential buyers.
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IV. ORGANIZATIONAL AND MANAGEMENT
A. Organizational Structure
B. List of Officers and Staff
Owner/ Manager- Wenalyn A. Francisco
Assistant Manager- Sandra Recha
Designers - Charlyn Naguit, Joanne Noora, Luckylyn Ordoñez
Workers - Michelle Endaya, Adelfa Bobijes, Daniel Garcia
Kim Bataller
C. Job Description
Owner / Manager
The owner/ manager are the one who is responsible for the managing of the
business activities as well as financial aspect of the business.
Owner/ Manager
Designer
Workers/helper
Assistant Manager
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Assistant Manager: The assistant manager is responsible for the day-to-
day operation of the business. She’s in charged on the operation of business if
the manager is not around.
Designer: She is responsible for the creating of new designed accessories.
Worker: The worker is responsible for doing the accessories and creating a
good quality.
D. Compensation Allowance
The 45% of the income will goes for the expansion and development of the
business; the 20% will go for the expenses and the other 35% will go to profit
sharing of the business.
The Lucky’s Fashion will give compensating allowance of P150.00 for the
worker, P180.00 for the designer and 220 for the assistant manager. The designer
and worker will receive a basic salary based on the number of days of work
multiplied by there corresponding salary. And they are given a free snacks and
lunch during the days of production.
E. Profit Sharing Analysis
Expansion
45% 20% Expenses
Compensation
35%
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V. PRODUCT STRATEGY
A. Product Description
Fashion is a reflection of the character of people; magazines are a
periodical containing a collection of articles, stories, pictures, or other features.
Our proposed business which is accessories can tell what kind of people you are
or a kind of fashion you would want.
Lucky’s Fashion is a handmade accessory that used old magazines and
putting some beads to become more attractive and fashionable.
B. Importance of the product
The significance of the proposed business will produce a good
quality and creative design of accessories out of used or old magazines. It
will create employment which will help uplift the lives of unemployed
Bikolanos. It will also help our environment to recycle the used paper. And
most importantly it will enhance the entrepreneurial skills of the
proponents.
C. Packaging, Labeling & Branding of the product
The proposed product will be pack on a white box together with the
name, contact number and location of the business.
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VI. MARKET ANALYSIS
A. Market Definition
The target market of the business is the teenagers, offices, school,
workers, trendy people and tourist in Camarines Sur. The proposed
business is for a female only and don’t have a specific age limit because it’s
applicable to all kikay’s.
B. Competition
The competitor of the Lucky’s Fashion is the all kind of business
venture in Naga City. But the main competitors of the business is the
accessories business around Naga City, however our product is different to
them because it is unique and new to the eyes of the Bikolanos. But this
competition is a challenge to us to work hard, maintain and create a good
quality of accessories in the Bicol Region.
C. Demand and Supply
Accessories now a day is very saleable because it improves the style
and look of people who ware of it. Therefore our accessories are fitted to
them because we gave an affordable, class, new and good quality of
product. Simultaneously, giving a different design of accessories will create
a demand on the product.
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D. Risk
All business has a risk to encounter. The risk that may encounter of
the business is the 2nd hand accessories like in Ukay Ukay because these
came from other country and branded. Our products are purely made in the
Philippines but the price is unbeatable.
VII. MARKETING PLAN
A. Sales Strategy
The business will conduct advertising and sales promotion strategies
of the product to be know in the market. The proponents will make sure that
it has a good quality to build the enjoyment and satisfy the customers. And
if the customer fulfilled on the product they can tell it to their friends and
recommend the product to other people.
The proponents will also make sales promotions through giving away
of flyers and offering a 30% off to the first 50 person who buy the product.
The wholesaler/ retailer will be given 25% discount for ever item that they
purchase. And the proposed business plan will also participate to the trade
fairs in Bicol Region.
B. Market Distribution
The proponents will distribute the products though a direct selling
bases. The proponents also planned to distribute the product on some
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boutique in Naga City, wholesalers and to the different hometown of the
proponents to increase its sales.
C. Pricing Strategy
The proposed priced of the Lucky’s Fashion is based on the kind of
accessories that they buy.
Necklace-P15.00
Bracelet – P10.00
VIII. PRODUCTION PLAN
A. Production Process
START
Prepare the materials that be needed
Make a line in the magazine.
Cut the magazine page into strips
Roll the magazine into the wooden
toothpicks and glue.
Then string it with the design that you like.
END
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The first step is to prepare the materials needed like the old magazines,
glue, ruler, pencil, scissor, beads, wooden toothpicks and string. By using ruler
and pencil make a small line with shape like a triangle. Using a scissor begin
cutting the page into strips. Start at either the bottom or the top of the page, cut
the page into 1/2″ strips. The strips being used are approximately one and a half
inch by seven or eight inches long. Next, cut each strip to a half inch diagonally.
To make one mixed bead bracelet, use 8 diagonally cut triangle shaped pieces of
paper. Organize a work space with the diagonal paper strips, toothpicks, and glue
stick. Take a toothpick and one paper strip. Roll the wide end of the paper strip
completely around the toothpick one rotation. Take the glue stick and quickly
cover the remaining paper surface with glue, run the glue stick over the paper
with a tightly roll on the paper strip around the toothpick. Place glue on the
tip/end of the paper. Then organize the roll paper in the string according to the
design that you wanted and put some beads to be more attractive.
B. Production Schedule
The production of the business is scheduled every Saturday and Sunday.
The operation for Saturday is the bracelet and Sunday for the Necklace. The
working time is from 9:00 am to 5:00 pm.
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IX. FINANCIAL PLAN
A. Assumptions
Cost of Production for one month
1. Materials
Material Price Pieces Total
Old magazines -0- -0- -0-
Glue P10.00 5 P50.00
Scissor P20.00 4 P80.00
Ruler P12.00 4 P48.00
Pencil P5.00 4 P20.00
String P6.00 25 P150.00
Beads1 P35.00 10 P350.00
Beads2 P35.00 10 P350.00
P1,048.00
2. Labor Cost
3 designers (P180.00 x 3 =P540.00 x 2 =1,080 x 4 =4,320)
4 workers (P 150.00 x 4= P600.00 x 2= 1,200 x 4 = 4,800)
1 assistant manager (P 220 x 2 = P440 x 4 = 1,760)
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3. Facilities and Equipment
a) Electric Fan – P600.00
b) Chairs and Tables - -0-
c) Calculator
P 300.00
Total P 900.00
4. Yield Data per Month
Bracelet Necklace Total
No. of working days 1 1 2
No. of finish product/ day 350 300 650
No. of finish product/ month 1, 400 1,200 2,600
5. Sales DataBracelet Necklace Total
Selling Price 10 15 P25
Total Sales/month 14,000 18,000 P32, 000
•
Sales will base on the projected production schedule.
• The production will increase 5% monthly.
6. Operating Expenses
• The raw materials will remain constant.
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• The compensation allowance will remain constant for one year of
production.
• The office supply will increase 5 % monthly.
• Transportation expense will remain constant.
• The miscellaneous expense will increase 5 % monthly.
B. Capital Requirement
The total to commence the initial operation is 17,000 and that will be
shoulder by the owner.
A. Property and Equipment
Facility and Equipment P900.00
B. Working Capital
Raw Materials P1,048.00
Packaging expense P1,300.00
Office Supplies P150.00
Transportation Expenses P136.00
Compensation P10,880.00
Other Expense: Foods P1,600.00
TOTAL P16,014.00
C. Financial Statement
LUCKY’S FASHION
PROJECTED INCOME STATEMENT
For 4 months operation
Nov. 2010 Dec. 2010 Jan. 2011 Feb. 2011
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Sales 32,000 33,600 35,250 37,014Less: Cost of Sales
Invty. Beg.
Add: Raw Materials 1,048 1,048 1,048 1,048
Gross Profit 30, 952 32,552 34,202 35,966
Less: Operating Expenses
Office Supply 150 158 166 174
Transportation 136 136 136 136
Salaries 10,880 10,880 10,880 10,880Electricity 200 200 200 200
Advertising Expense 250 250 250 250
Miscellaneous Expense 1,600 1,680 1,764 1,853
Total Expense 13,216 13,304 13,396 13,493
Net Income 17,736 19,248 20,806 22,473
LUCKY’S FASHION
PROJECTED CASH FLOW
For 4 months operation
Nov. 2010 Dec. 2010 Jan. 2011 Feb. 2011
Cash Inflow
Beg. Cash Bal. 17,736 35,936 56,742
Add: Sales 32,000 32,552 35,250 37,014
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32,000 50,288 71,186 93,756
Less: Cash Outflow
Cost of Sales 1,048 1,048 1,048 1,048
Salaries 10,880 10,880 10,880 10,880
Office Supply Expense 150 158 166 174Transportation 136 136 136 136
Electricity 200 200 200 200Advertising Expense 250 250 250 250
Miscellaneous Expense 1.600 1,680 1,764 1,853
Total Cash Outflow 14,264 14,352 14,444 14,541
Cash Balance 17,736 35,936 56,742 79,215
Conclusion
I therefore conclude that the proposed business is possible in all major aspects.
Technically it is feasible because of availability of the materials, location and the plant; it
is market viable because of the fact the location is very accessible to the market.
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This proposed business will have an increased in production because it has many
personnel. And it is manageable because it is a sole proprietorship. And also the funding
of the business is not the problem because it has a small capital.
The proposed business has a great benefit in the society in terms of employment
and in economy. It will support the financial capacity of the employment in the Bicol
Region to lessen the unemployed Bicolanos.
DOCUMENTATION
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