Chapter 1
Executive Summary
1.1 Business Profile CRAFTSY MNL is a do-it-yourself inspired business which offers different kinds of purses including bags, pouches, and wallets. The business will be considered as merchandiser and distributors of the products offered. The name of the business means interest in arts and crafts. These products are made up of light-weight materials with designs that will define your personality to meet your expectations and satisfactions. The proponents will be in the form of the sole proprietorship so that it will be easier to register the business. One proponent will be the general manager of the business while the two proponents will be considered as investors who will be sharing to the business’s capital. As the business goes, profits and liabilities will be equally divided among the owner and investors. CRAFTSY MNL will be located in Brgy. 118 Zone 9 Tondo, Manila. The reason for choosing this location is that, there are a lot of people living in just one barangay and other barangays are just nearby the area. Schools, church and different establishments are also nearby the business location. That is why, there are a lot of students who are passing by the preferred store location. The main goal of Craftsy Manila is to let customers express their selves in a simple way using the purses that they will be purchasing from the business.

1.2 Management, Marketing & Financial Highlights The proposed business is in the form of sole proprietorship. The owner will be assigned as the General Manager. The proponent will have a respective designation that is needed to be focused on as the business is being implemented. An all-around personnel will also be hired in order to manage the store during its daily operation. CRAFTSY MNL conducted a survey in the target location during the writing of the business plan regarding the status of the people including gender, employment status, income, and their desired product among all the products that the business will offer. The survey received a positive feedback as there are a lot of respondents who are interested with the products offered. During the opening of the business, there will be different promotions offered for the customers which will be showed on the latter part of the business proposal. Also, to keep the customers updated with the business’ products, prices, and other promotion, there will be social networking sites where they can check some answers to the FAQ’s. Since the business is in the form of partnership it will lessen the start-up cost of each partners. Instead of releasing P30,000 instantly from one proponent only. Since, the business is in the form of sole proprietorship; the owner and the investors will be equally dividing the capital, profits, and liabilities into three. The initial capital mentioned is considered to acquire all the assets and the other expenses that may occur in the operation of the business.

PARTNER | AMOUNT | Vallarie Mae M. Balza | ₱10,000.00 | Stephanie Paye D.J. Bernabe | ₱10,000.00 | Johanna Bethelyn A. Cayetano | ₱10,000.00 |
Figure 1.1 Business Start-up Cost
1.3 Socio-Economic Contributions CRAFTSY Manila’s products can help and contribute to economic growth since the raw materials are eco-friendly, and it can be an instrument to make its consumers be aware that eco-friendly and less expensive bags and wallets can be useful in many ways. The proponents can be an inspiration to other students that they can also start this kind of business even though they are still young.

Chapter II:

Marketing Plan

2.1 Product to Sell:

CRAFTSY MNL is a do-it-yourself inspired business which offers bags and wallets that has an affordable and reasonable price without sacrificing the quality of the product that we will be selling. These bags and wallets are one of the useful necessities of an individual. These are things that one has to use every day especially with those who usually go to school, work or even those who travel a lot. To contribute a lot in their convenience these products will be made of different kinds of fabrics which can be appealing to the costumer’s eyes. The design of these bags and wallets will look like those custom-made designs we can see in the social medias such as one word adjective designed in different ways, these will be printed in order to give individuals some design or prints that can describe the personality they have. The bags and wallets are also made up of materials that are light-weight to give the convenience that an individual is looking for especially when they just want to bring important stuff.

2.2 Target Market:
The target location is at 246 Sta. Fe Street Brgy. 118 Zone 9 Tondo, Manila. The population in the area is a bit high which is considered as an asset to the business. There are also schools and different establishments nearby the area. The place is considered as a major street since there are a lot of people passing by when going to school, work, and home, which is also taken as advantage.
CRAFTSY MNL’s target market are those young and adult individuals ages 14-60, companies and events in which the business can supply the kits and giveaways that may be given to employees or participants in different occasions and activities. As conducted in the research made through the surveys, a lot of respondents are female and are students who are living nearby the target location of the business. The respondents are familiar with the product we are to offer and are interested of having it.

Figure 2.1 Geographical Location of the Business

2.3 Demand and Supply Analysis

Table 2.1 Demand of Supply

Table 2.2 Demand
The population of Brgy. 118 Zone 9 as of 2016 is 11,249. Most of the respondents aged 14-60 y/o. Out of 100 surveys, there are 94 respondents who are willing to purchase the products.

Table 2.3 Supply The proponents made a survey to the chosen 3 competitors of the business to know the number of products that they can sell in a day. Artwork can sell 50 products per day, while Jansport can sell 22 products per day and Michaela of Divisoria can sell 45 products per day.

2.4 Projected Sales The projected sales are from the demand and supply. Upon calculating, the business can sell 52 in a month. Out of 52, drawstring bags has the highest number of sales with a percentage of 34%, followed by shoulder bag with 31%, wallets with 25%, and pouches with 10%.

Table 2.4 Projected Sales 2.5 Marketing Program/Strategies
CRAFTSY Manila will use different tactical actions such as: * On the first day of operation, the first fifty customers who will purchase any kind of CRAFTSY Manila’s bags will receive a 10% discount on their purchase Item | Unit Cost | Unit Price | 10% Discount | Price after Discount | Coin Purse | P23.50 | P60 | P6 | P54 | Pouch | P32.50 | P75 | P7.50 | P67.50 | Drawstring | P61.75 | P125 | P12.50 | P112.50 | Shoulder Bag | P102.75 | P160 | P16 | P144 |
Table 2.5. Computation of Discount * Customers who will purchase bulk orders with a minimum of 12 pieces of wallets and 6 pieces of bags will have a discount of 5% on the selling price.

Item | Unit Cost | Unit Price | 5% Discount | Price after Discount | Bulk Orders (x12) | Coin Purse | P23.50 | P60 | P3 | P57 | P684 | Pouch | P32.50 | P75 | P3.75 | P71.25 | P855 | Drawstring | P61.75 | P125 | P6.25 | P118.75 | P1425 | Shoulder Bag | P102.75 | P160 | P8 | P152 | P1824 |
Table 2.6. Computation of Discount * CRAFTSY Manila will use social networking sites for advertising purposes. Distribution of flyers will be simultaneously given during selling of items. A poster will also be posted in front of our store. * Advertisements, flyers and posters are going to be consistent with its contents. * The mode of payment can be through meet-ups, money transfer, and bank deposit. The delivery of the items can also be through meet-ups and shipping.

Figure 2.2 Craftsy Manila’s Fan Page

Figure 2.3 Craftsy Manila's Instagram Page

Figure 2.4 Sample Flyer

2.6 Marketing/Selling Expense Items | Qty | Amount | Total | Flyers | 100 (6 flyers per bond paper) | P85 | P85 | Tarpaulin | 1 | P300 | P300 | Social Networking Sites Promotion | 10 | P26.50 | P265 |
Table 2.7 Marketing Expense The proponents will be distributing a flyer that contains all the information about the business including the products and the price list. There will also be a tarpaulin containing the name of the business. Also there will be social networking sites where they can check some answers to the FAQ’s.

Chapter III
Production/Operations Plan
3.1 Technical Production Description CRAFTSY MNL is a business that requires manufacturing since it is selling different kinds of bags and purses. In this chapter, the materials needed for the business, starting from its manufacturing day up until the start of implementation, will be stated. This will also show the process on how the business will run for three (3) months. This part is more of sewing, design printing, and selling the products.
3.2 Production/Operation Process CRAFTSY MNL will be selling different bags and purses that are made of canvass and fabrics with different kinds of prints that can define the personality of the customers.

3.2.1 Production Process: ACTIVITIES | TIME ALLOTED | 1. Cutting of Patterns | 5 mins | 2. Sewing:Drawstring bagShoulder bagPouchCoin Purse | 20 mins./pc 30 mins./pc10 mins./pc10 mins. /pc | 3. Printing of designs | 4 hours | 4. Packaging | 20 mins. |
Table 3.1 Production Process There is an allotted time for the production of each product that the business will be selling. The first step in the production is the cutting of patterns which will take 5 mins. Next is the sewing of the bags and purses. For the drawstring bag, 20 mins. will be allotted. For the shoulder bag, 30 mins will be used up. And for the purses (pouch and wallets), 10 mins. will be allotted for each. After sewing the products is ready for printing the designs and it will take 4 hours to finish it. Once the designs are dry, it’s now time for its packaging, and 20 mins. of the time will be allotted.

3.2.2 Selling Process ACTIVITIES | TIME ALLOTED | 1. Cleaning | 10 minutes | 2. Inventory | 20 minutes | 3. Preparing the products | 15 minutes | Opening: 4. Greetings/Entertain | 1 minute | 5. Assist with order/s | 3 minutes | 6. Assist with payment | 2 minutes | Closing: 7. Inventory | 20 minutes |
Table 3.2 Selling Process
During the store operation, before opening, the cleaning, inventory, and preparation of products will be done. After preparing everything, the personnel in the store will wait for the customer to arrive. Once the customer arrived, the personnel will greet him/her and assist the inquiries. When the customer already has a product to buy, the personnel will get a stock and prepare the order, then assist them with the payment. After the operation, it is a must to do the inventory for the remaining products.

3.3 Production Schedule 132,010 - Demand X .01 - Market Share
1320
/ 5 - Days of operation 264 - no. of production per month / 52 - Weeks in a year 5 - no. of production per day.

3.4 Labor Requirement ACTIVITIES | NUMBER OF MANPOWER | EMPLOYEES | 1. Inventory | 2 | General ManagerAll-around Personnel | 2. Operation | 1 | All-around Personnel | 3. Production | 2 | Screen Printer |
Table 3.3 Labor Requirements The proponent will only hire 2 employees during the operation. One is an all-around personnel who is in charge of staying in the store and managing the sales and a designer or screen printer who is in charge of the designs and the printing.

3.5 Machinery/Equipment Requirement EQUIPMENT | DESCRIPTION | QTY. | UNIT COST | Total | Silk Screen | For painting the designs on the products | 10 | P150 | P1500 | Silk screen Squeegee | For painting the designs on the products | 1 each siza | Small – P15Medium – P30Large – P45 | P90 | Big Containers | For keeping the stocks | 2 | P600 | P1200 | Small Containers | For keeping the stocks | 2 | P200 | P400 | Paper Bags | For packaging | Small - 4 packsLarge - 3 packs | Small – P60/packLarge – P100/pack | Small – P240Large – P300 | Receipts | For official receipts | 2 booklet | P50/booklet | P100 | Scissors | For cutting thread, canvas, fabric and zippers | 2 | P20/pc | P40 | Pens | For Recording | 3 | P5 | P15 | Calculator | For easier calculation. | 1 | P150 | P150 | TOTAL | | | | P4,0235 |
Table 3.4 Machinery/Equipment Requirement The materials needed in our daily operation are silk screen and squeegees for painting, big and small containers for keeping the stocks, paper bags for packaging, receipts for official receipts of the customers, scissors in case there are things need to be cut, pens for inventory, and calculator for computations.

3.6 Raw Materials Requirement EQUIPMENT | DISCRIPTION | QTY | UNIT COST | TOTAL PRICE | Cloth Paint | For painting the designs on the products | 1 – Black1 – 3 colors | P220/kg | P880 | Canvas | Product cloth | Thick – 14Thin – 7 ½ yards | Thick – P150Thin – P75 | Thick – P2,100Thin – P562.50 | Zippers | Lock of purses | Big – 10 metersSmall – 50 meters | Big – P4/meterSmall – P2/meter | Big – P40Small – P100 | Cord | For String Bags | 6 rolls | P45/roll | P270 | Slider | For zippers | 110 pcs | P1.50/pc | P165 | Lining | To make the bag more durable | 7 ½ yards | P2/yard | P15 | Thread | | 140 rolls | P1/pc | P140 | Bias tape | | Small – P50/pcBig – P70/pc | Small – P2Big – P4 | Small – P100Big – P280 | Belt/Strap | | 4 rolls | P190/roll | P760 | TOTAL | | | | P5,412.50 |
Table 3.5 Raw Materials Requirement The raw materials needed in the production are cloth paint for the designs, canvas,zipper, chord, slider, lining, thread, bias tape for the product itself.
3.7 Plant/Factory Location CRAFTSY MNL’s store will be at 246 Sta. Fe St. Brgy. 118 Zone 9 Tondo, Manila. Figure 3.1 Business Operating Plant Location
3.8 Plant Layout The store is a rented apartment which is big enough for the operation of the business. There is an available room which can be used as a stock room.

Figure 3.2 Plant Layout
3.9 Waste Disposal System CRAFTSY MNL’s waste will be collected every day at 6 in the morning by the Brgy. 118 garbage collectors. Since, CRAFTSY Manila’s products are eco-friendly, the business will minimize the waste and the use of plastic. There will also be 2 trash bins available inside the store to keep the area clean.
3.10 Quality Control System CRAFTSY MNL will implement a high quality bags, wallets, and pouches. Every product, its durability and design will be tested to meet the consumer’s satisfaction. A. The raw materials that will be used in making the products will be well examined for a good output. B. The paints that will be used in printing the design will go through the process of matching paint for the canvass. C. Since our products are mostly white, it will be in good packaging when delivering it to the operating store to keep the cleanliness. D. The store will be kept clean and well designed for the business and for customers.
3.11 Production Cost Product | Production Cost | Selling Price | Mark Up | Shoulder Bag | P102.75 | P175 | 41.29% | Coin Purse | P28.50 | P60 | 52.50% | Drawstring Bag | P61.75 | P125 | 50.60% | Pouch | P37.50 | P75 | 50% | Table 3.6 Production Cost and Mark Up Year | No. of Units Sold | Cost | Total Cost Production | 2016 Drawstring Bag Shoulder Bag Wallets Pouch | 306 270 222 90 | P61.75 P102.75 P28.50 P37.50 | P18,895.50 P27,742.50 P6,327 P3,375 | 2017 Drawstring Bag Shoulder Bag Wallets Pouch | 343 302 249 101 | P67.93 P113.03 P31.35 P41.25 | P23,300 P34,135.06 P7,806.15 P4,166.25 | 2018 Drawstring Bag Shoulder Bag Wallets Pouch | 384 339 278 113 | P74.72 P124.33 P34.49 P45.38 | P28,694.48 P42,147.87 P9,588.22 P5,127.94 | Table 3.7 Yearly Production Cost Coin Purse Materials | Cost | Canvas 15 pcs of wallets per yard | P150/yard 150/15 = P10 | Slider | 1.50 | Bias Tape | 2 | Thread | 1 | Lining | 2 | Zipper | 2 | Paint | 2 | Silk screen | 3 | Labor | 5 | Total | P 28.50 | Table 3.8 Production Cost for Coin Purse
Price for Coin Purse: P60
Capital: P28.50
Mark up: 60 – 28.50 =31.75 31.75/60 = 52.50%

Pouch Materials | Cost | Canvas 10 pcs of pouch per yard | P150/yard 150/10 = P15 | Slider | 1.50 | Bias Tape | 2 | Thread | 1 | Lining | 2 | Zipper | 2 | Paint | 2 | Silk screen | 3 | Labor | 8 | Total | P 37.50 | Table 3.9 Production Cost for Pouch
Price for Pouch: P75
Capital: P37.50
Mark up: 75 – 37.50=37.50 37.50/75 = 50%

Drawstring Materials | Cost | Canvas 4 pcs of bags per yard | P75/yard 75/4 = P18.75 | Bias Tape | 3 | Thread | 1 | Chord | 9 | Paint | 2 | Silk screen | 15 | Labor and Fare | 13 | Total | P 61.75 | Table 3.10 Production Cost for Drawstring Bag
Price for Drawstring: P125
Capital: P61.75
Mark up: 125 – 61.75 = 63.25 63.25/125 = 50.60%

Shoulder bag Materials | Cost | Canvas 4 pcs of bags per yard | P150/yard 150/4 = P37.50 | Slider | 1.50 | Bias Tape | 3 | Thread | 1 | Belt/Strap | 23.75 | Zipper | 4 | Paint | 2 | Silk screen | 15 | Labor | 15 | Total | P 102.75 | Table 3.11 Production Cost for Shoulder Bag
Price for Shoulder bag: P175
Capital: P102.75
Mark up: 175 – 102.75 = 72.25 72.25/175 = 41.29%

Chapter IV
Organizational Plan
4.1 Legal Form of Business The legal form of the business will be sole proprietorship wherein there will be only one general manager who’s in charge of the business. The proponent will be using her own skills and effort in managing the business. Financially speaking, there will be two investors in the business. In this way, it will be easier for the proponent to sustain the financial needs of the business. The sole proprietorship is the simplest business form under which one can operate a business. It is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietor needs only to register his or her name and secure local licenses, and the sole proprietor is ready for business. A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business's debts.
4.2 Organization Structure Since CRAFTSY MNL is selling its outsourced products, the business needs a screen printer for the designs that will be printed on the items. The proponents will be the general manage who is in-charged in managing the business’ status while the other two will be considered as investors who will be sharing with the capital, profits and liabilities. There will be an all-around personnel that will be hired to manage the store during the operations.

Figure 4.1 Organizational Structure

4.3 Qualifications of Officer POSITION | NUMBER OF MANPOWER | JOB QUALIFIATIONS | 1. Screen Printer | 1-3 | * Must know how to use Photoshop for finalizing the bag designs * Must know how to neatly print designs on the product | 2. All around Personnel | 1 | * Must have a pleasing personality * Must have good communication skills * Must know how to deal with money * Must be organized with the items * Knows how to use excel, and social networking websites to manage the sales and advertisements of the business |
Table 4.1 Job Qualifications Table 4.1 shows the employees needed and the job qualifications. The only employees that the business needs are screen printer and all-around personnel.

4.4 Office Equipment EQUIPMENTS | DESCRIPTION | 1. Laptop | For updating the social networking sites of the business. | 2. Mini Cash Vault | For money storage | 3. Calculator | For easier calculations |
Table 4.2 Office Equipment
There are only few things needed as office equipment. First a laptop is needed. Together with the proponent, the all-around personnel in the store will also be updating the facebook page and Instagram account of the business. It will also be easier for the inventory if it is immediately recorded using MS excel. Second is a mini cash vault to organize the money from the products sold. Third is a calculator for easier job when making computations.

4.5 Gant Chart of Activities The timeline of events presented is only for the business plan writing for the first semester. 2014 | Activities | November | December | January | February | June | July | | 1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | Introduction of Business Plan | | | | | | | | | | | | | | | | | | | | | | | | | Idea Conceptualization | | | | | | | | | | | | | | | | | | | | | | | | | Business Description | | | | | | | | | | | | | | | | | | | | | | | | | Analysis | | | | | | | | | | | | | | | | | | | | | | | | | Marketing Plan | | | | | | | | | | | | | | | | | | | | | | | | | Survey | | | | | | | | | | | | | | | | | | | | | | | | | Production/Opertion Plan | | | | | | | | | | | | | | | | | | | | | | | | | Organizational Plan | | | | | | | | | | | | | | | | | | | | | | | | | Financial Plan | | | | | | | | | | | | | | | | | | | | | | | | | Final Compilation | | | | | | | | | | | | | | | | | | | | | | | | | Presentation and Approval | | | | | | | | | | | | | | | | | | | | | | | | | Production | | | | | | | | | | | | | | | | | | | | | | | | | Implementation | | | | | | | | | | | | | | | | | | | | | | | | |
Figure 4.2 Gant Chart of Activities During the month of November the Business Plan writing has already started. It is more of conceptualization regarding the business that will be established. On the next month, it is more of the marketing plan on the business. On the third month, it focuses on the operational/production and the organizational planning. The fourth month purely focuses of financial planning and projections of the business and the defense for the business plan. There will be a long time for preparation for the production before it hits the implementation.
4.6 Administrative Expense Administrative Activities | Amount | 1. Salaries | P3,000/month | 2. Labor Screen Printer | Per monthP700 | TOTAL: | P3700 |
Table 4.3 Administrative Expenses The administrative expenses that the business will be paying every month are the salary of the employee, and the labor needed to be paid for the screen printer who is in charge of the designs of the products.

Chapter V:

Financial Plan

5.1 Sources of Financing The proponents’ business is under sole proprietorship. Since there are three of them in the business, it is agreed that they will be equally contributing P10,000 to be able to meet the P30,000 needed for the capital.

5.2 Projected Financial Statement
5.2.1 Projected Cash Flow Statement

Figure 5.1 Pre-operating Cash Flow

Figure 5.2 Cash Flow Statement

5.2.2 Projected Income Statement

Figure 5.3 Income Statement

5.2.3 Projected Balance Sheet

Figure 5.4 Balance Sheet

5.3 Profitability Indices 5.3.1 Payback Period

Figure 5.5 Capital Recovery

5.3.2 Net Income: Sales Ratio

Figure 5.6 Profitability Ratio

5.3.3 Break-even Point

Figure 5.7 Break-even Point
5.4 List of Assumptions Used
Major assumptions used in the preparation of the financial projections are as follows: * Sales volume will increase by 2% monthly during the first year and by 24% during the second and third year. * Selling price will increase by 10% on the second and third year. * Desired ending inventory is 10% of next period budget sales. * Cost per unit in needed to compute the cost of goods sold will increase 10% on the second and third year. * In computing the schedule of income payments, only 75% of tax was paid for the current year. * In computing for the schedule of percentage tax payments, vat payable/ percentage will be remitted at the end of the month except for December. (For registered business) * Salaries and wages are to increase by 10% per on the second and third year. * Employment tax is being remitted on the following month.
5.5 Schedules
5.5.1 Projected Sales Figure 5.8 Sales Budget

5.5.2 Projected Sales Volume

Figure 5.9 Sales in Volume

5.5.3 Capital Investment
Figure 5.10 Capital Statement

5.5.4 Projected Cost of Goods

Figure 5.11 Cost of Goods Sold Statement 5.5.5 Schedule of Materials Purchases

Figure 5.12 Schedule of Payments of Purchases

5.6.6 Projected Administrative and Selling Expense

Figure 5.13 Schedule of Utilities Expense

Figure 5.12 Schedule of Salaries Expense

Figure 5.14 Schedule of Percentage Tax Payments

APPENDICES
Survey Questionnaire
Dear Respondents, We are planning to put a business named CRAFTSY MNL. We will be selling do-it-yourself styled bags and wallets that are made of different kinds of fabrics specifically canvass. Our products can also be customized. This survey will help and serve as guidelines in accomplishing topic in our study. Kindly answer the questions as honest as you can. The answers we will get from you will serve as a data for our research study. Your response will be confidential and for research purposes only.
Please fill out all spaces. Do not leave any questions unanswered. Thank you for giving us you little time.

Sincerely, Balza, Vallarie Mae M. Bernabe, Stephanie Paye D.J.

Cayetano, Johanna Bethelyn A.

General Introduction: Please put a check [✓] on the choice that corresponds to your answer.

Name (optional):_______________________________ Contact Number:_____________
Gender: __Male __Female Age: ____
Employment Status: __Employed __Self-employed __Unemployed __Student

1. What bag do you usually use?
__ Drawstring Bag __Shoulder Bag __Pouch/Purse 2. What wallet do you usually use?
__coin purse __bi-fold wallet __Tri-fold wallet 3. What materials do you consider when buying bags?
__light-weight materials (fabric, canvass, etc.)
__heavy-weights materials (leather, etc.) 4. What materials do you consider when buying wallets?
__light-weight materials (fabric, canvass, etc.)
__heavy-weights materials (leather, etc.) 5. How often do you purchase bags?
__Monthly __Twice a month __Thrice a month __Weekly 6. How often do you purchase wallets? 7. __Monthly __Twice a month __Thrice a month __Weekly 8. What is your usual purpose when buying bags?
__for school purposes
__for office/work purposes
__others, please specify: _______________ 9. What brand of bags do you usually buy? __________________ 10. What brand of wallets do you usually buy? _________________ 11. How much are you willing to pay for buying do-it-yourself styled bags made of fabrics and other light-weight materials?
__₱0 - ₱100.00 __₱100.00 - ₱500.00
__₱500.00 - ₱1000.00 __₱1000.00 above 12. How much are you willing to pay for buying do-it-yourself styled wallets made of fabrics and other light-weight materials?
__₱0 - ₱100.00 __₱100.00 - ₱500.00
__₱500.00 - ₱1000.00 __₱1000.00 above 13. Are you willing to buy do-it-yourself styled bags and wallets made of fabrics and other light-weight materials? __Yes
__No

Results: