CHAPTER I PROJECT SUMMARY
A. INTRO INTRODUC DUCTIO TION N This Feasibility Feasibility Study evaluates the technical and fnancial easibility o putting up a business like a Jewelry store. In planning and putting up a business is not easy as you think, you need to study the dierent aspects like how can a business succeed and who are the copetitors, and what are strategies we need to succeed. In this chapter, the group presents the highlights, descriptive defnition, long! range ob"ectives, easibility criteria, history and basic conclusions o studying the business viability o #$%& Jewelry Store'.
B. HISTORY HISTORY AND BACKGROUND BACKGROUND OF THE STUD STUDY The $%& Jewelry Jewelry Store, which is to be located in the Sta. (ucia )ast *rand +all in +arcos ighway cor. Feli- $venue, San Isidro, &ainta, %ial, is a new business. business.
$%& $%& Jewelry Jewelry Store oers oers a great great selection selection o gestone gestone
"ewelry in various designs, colors and sies. /ur "ewelry will include brac bracel elet ets, s, neck neckla lace ces, s, ear earring rings s and and ring rings. s.
$ll $ll o the the piec pieces es will will be
designed and created by the owner. owner. The store will stock stock a wide selection o "ewelry and will oer a service to ake custo pieces or shoppers while while they they wait or shop in the all. all. throug through h this this all all store. store.
$ll $ll sales or the the business business will will be
0eor 0eore e the start start o busine business ss operatio operations ns the
owner plans to hire a sales representative to handle custoer interaction and soe arketing. arketing. The purpose o this business plan is to develop a blueprint o the copany1s vision and strategy and then use this plan to as a guide to develop develop and grow the the business. business. This business business plan will will also be used to align the various eleents o the copany to create a coherent syste o sustainable s ustainable custoer satisaction and proftability. proftability. The $%& $%& Jewelry Store will ocus on priary arket, arket, en and woen. 2e will will conc concen entr trat ate e our our ark arket etin ing g eor eorts ts on pro proes essi sion onal al en en and and woen, as well as those who like to dress up when going out or the
A. INTRO INTRODUC DUCTIO TION N This Feasibility Feasibility Study evaluates the technical and fnancial easibility o putting up a business like a Jewelry store. In planning and putting up a business is not easy as you think, you need to study the dierent aspects like how can a business succeed and who are the copetitors, and what are strategies we need to succeed. In this chapter, the group presents the highlights, descriptive defnition, long! range ob"ectives, easibility criteria, history and basic conclusions o studying the business viability o #$%& Jewelry Store'.
B. HISTORY HISTORY AND BACKGROUND BACKGROUND OF THE STUD STUDY The $%& Jewelry Jewelry Store, which is to be located in the Sta. (ucia )ast *rand +all in +arcos ighway cor. Feli- $venue, San Isidro, &ainta, %ial, is a new business. business.
$%& $%& Jewelry Jewelry Store oers oers a great great selection selection o gestone gestone
"ewelry in various designs, colors and sies. /ur "ewelry will include brac bracel elet ets, s, neck neckla lace ces, s, ear earring rings s and and ring rings. s.
$ll $ll o the the piec pieces es will will be
designed and created by the owner. owner. The store will stock stock a wide selection o "ewelry and will oer a service to ake custo pieces or shoppers while while they they wait or shop in the all. all. throug through h this this all all store. store.
$ll $ll sales or the the business business will will be
0eor 0eore e the start start o busine business ss operatio operations ns the
owner plans to hire a sales representative to handle custoer interaction and soe arketing. arketing. The purpose o this business plan is to develop a blueprint o the copany1s vision and strategy and then use this plan to as a guide to develop develop and grow the the business. business. This business business plan will will also be used to align the various eleents o the copany to create a coherent syste o sustainable s ustainable custoer satisaction and proftability. proftability. The $%& $%& Jewelry Store will ocus on priary arket, arket, en and woen. 2e will will conc concen entr trat ate e our our ark arket etin ing g eor eorts ts on pro proes essi sion onal al en en and and woen, as well as those who like to dress up when going out or the
evening. evening. $%& $%& Jewelry Store Store will sell sell to these custoers custoers by suggesting suggesting colo colorr
cob cobin inat atio ions ns
and and
styl styles es or or
vari variou ous s
outf outfts ts and and
occa occasi sion ons s
deonstrating our knowledge o ashion design and custoer service targeted at individual shoppers. In this industry trends are in our avor. avor. *estones are popular because o their uni3ue natural colors and eatures4 they are aordable yet ideally suited suited or busine business ss attir attire e and both both inor inoral al and inor inoral al occasi occasions. ons. *estones copleent and can dress up any outft on a woan.
C. AMONG AMONG THE PROPOSED PROPOSED BUSINES BUSINESS, S, WHY IS IT CHOSEN? CHOSEN? WHAT WHAT IS THE REASON FOR CHOOSING BUSINESS? The pro"ect cae about the thought o a business partnership between the group ebers originating ro a ast ood chain up to the Jewelry Store. Thinking o what business to put up that suit inside the Sta. (ucia *rand )ast +all is really the ain thing. $ ast!ood chain ay be viable in the location however a lot o copetitors are already operating inside the all so the group though o a dierent business where in the target audience could ocus their attention into4 and that is a Jewelry Store. Jewelry store are seen to be good business since there are less copetition. This kind o
business does not re3uire re3uire uch eort or the
custoers and the business owners as well. For the business owners, hiring ew eployees that would anage the business is "ust the only task to do. )ployees will be needed or selling the "ewelry. Thus, the group thought o this kind o business or practicability and deand ro the target audience. It will be a good help or eeting the custoer5s e-pectations through satisying their wants. D. COMPANY COMPANY VISION VISION The corporate vision o the $%& Jewelry Store is to be the #0rand o 6hilippines, Sparkling the 2orld'. This is also our core brand value. The copany always puts orth a-iu eort to reach its goal o becoing a globally recognied and desired brand, and as one o the 6hilippine5s ost renowned brands in the lu-ury industry, the $%& Jewelry Jewelry coits to crating the fnest "ewelry or custoers to urther establish its reputation in the local and international arket. E. COMNP COMNPANY MISSION MISSION
The $%& Jewelry Store1s ission is to design, ake and sell high 3uality ashionable "ewelry designed priarily around gestones.
The $%&
Jewelry Store will oer an e-ceptional level o custoer service and personalied
ashion
recoendations
tailored
to
the
individual
custoer. 2e e-ist to attract and aintain custoers through our uni3ue cobination o designs, 3uality, and custoer service and ashion recoendations. F. COMPANY OBJECTIVES The priary ob"ectives o the business plan or The $%& Jewelry Store are below7 8 To create a product!based store whose goal is to e-ceed custoer1s e-pectations in design styles, 3uality and custoer service. 8 To develop a sustainable erchandising unit that sells gestones and custoied "ewelry to eet the needs o the proessional and outgoing woan. 8 To increase the nuber o products sold by 9:; each year. 8 To introduce a iniu o three new designs weekly.
G. NATURE OF BUSINESS Jewelry industry is a strong and energetic business. $lso, what akes it ore appealing to the arket is the act that this steadast industry continues to grow and succeed. The deographic trends toward an even greater dwelling segent o the population orecast continued success. The biggest threat or the business is the copetition. &onsidering that the business site is inside a all, it is possible that other businessen would think o putting up the sae business and hence, the arket will be ore segented and it yields a saller target arket or the "ewelry shop. owever in the long! run, the business will not "ust doinate the whole all but will also e-tend to other places like the nearby all near the &ainta, %ial and probably other areas like %ial province or +etro +anila area.
H. LOCATION The store will be located in Sta. (ucia )ast *rand +all in +arcos ighway cor. Feli- $venue, San Isidro, &ainta, %ial.
I. REASON WHY THE LOCATION WAS CHOSEN Sta. Lucia East Grand Mall is owned by Sta. (ucia %ealty < =evelopent Inc.
and is one o the largest shopping alls in the 6rovince o %ial. The all is situated along +arcos ighway cor. Feli- $venue >orerly Ielda $venue?, located at the boundaries between barangay San Isidro, in &ainta, %ial and 0arangay San %o3ue in +arikina. The all caters the areas o &ainta, 6asig &ity, $ntipolo &ity, and +arikina &ity with the estiated population o @,:::,::: residents.
J. DESCRIPTIVE DEFINITION OF THE STUDY 2e choose "ewelry business as our sources o incoe to us. That ay lead us to becoe successul in our a"or goal in lie to proote to the custoer that they are our priority. In this kind o business to give the a good service and a warth welcoe, to ake the en"oyed and rela-ed while they are inside and to appreciate our service that will visit and buy "ewelry ro our store. To becoe popular to the custoers our service and the "ewelry store.
K. MARKETING STUDY
For the business to succeed, it should be given tie and eort. The proponent o a "ewelry business such as rings, necklace, etc. ust possess the needed creativity so as to be able to provide 3uality service to its custoers. The satisaction o the needs and wants o its custoers or target arket ust be the ain ob"ective o the proposed business. In every pro"ect easibility, arketing aspect is considered the ost iportant because it re3uires discreet analysis o the business total deand and supply. This chapter will discuss the deand analysis, supply analysis, arket sie, arket trends, arket analysis, arketing progra and S2/T $nalysis.
L. TECHNICAL STUDY This study discusses about the processes o production and activities o $%& Jewelry Store. It states also the e3uipent and supplies used in business and other aspects regarding bringing the raw aterials into a fnished product ready or trade. Store layout, and sie are all presented or the purpose o identiying the business operation. $lso, product specifcations, the product processes achinery,
tools,
and
e3uipent
using are
Aowchart, the list o
enuerated
with
their
corresponding costs, the raw aterials and und sources are also cited.
M. ORGANIZATIONAL AND MANAGEMENT STUDY This study discusses about what or o ownership we have in our business together with the organiational chart o the copany. It states also the duties and responsibilities o the sta and their "ob description. The anageent proposals are all presented or the purpose o business operation guidelines. The eployee benefts are also included in this study.
N. FINANCIAL STUDY This study discusses about sales orecast o the business it also states the fnancial plan we need beore we operate our business. In fnancial plan, we outline what are the iportant assuptions in our business,
how uch is the start!up cost to setup the business and also who are the sources o unds and how to use it.
CHAPTER II MARKETING ASPECT
I.
MARKET ANALYSIS The $%& Jewelry Store is specifcally targeting woen in the Sta. (ucia *rand )ast +all. 2oen and en in the workplace, as well as woen and en that are sociable in the evenings >i.e., events, parties, etc.? are the priary ocus or the $%& Jewelry Store1s high ashion gestone products. 2e chose this area as it is situated in +arcos ighway cor. Feli- $venue, San Isidro, &ainta, %ial. $lso, Sta. (ucia *rand )ast +all serves as one o the nation5s ost aBuent and densely populated areas. 2oen can appreciate how easy it can be to change their look with "ewelry without the e-pense o purchasing a whole new outft.
II.
MARKET SIZE There are about 9C: frs in the country that are engaged in the "ewelry industry, eploying a pool o ore than @::,::: workers.
Sall and
ediu!scale "ewelry enterprises hold about C: percent o the industry, while the top @: largest "ewelry chains and anuacturers hold less than 9C percent. a. Industry 6articipants +a"or participants include Darat 2orld, Enisilver, /ro &hina and any ore. Comp!"!o#$% K&#&! Wo#'( ) Fi n ej e we l r yf o rt h e Wo r k i n g Wo ma no ft o da y !Ev e r y d a y Jewel r y wi t h a wi de ass or t mentofDi amond and Gol d Engagementand Weddi ngRi ngs.
Go'(*+"''$ J'#- ) oers a large selection o fne "ewelry ade o gold and set with diaonds, pearls, and other sei!precious stones. f us esf as hi onpol i s hed925s t er l i ngs i l v er ,i tc at er st omen,women Uni si l v era ndt e en ag er swh ol o v ea ndb r e at h ef a s hi o na nda r ei nt u newi t ht h el a t e s t t r ends . Aur um byTambunt i ng – this owned by Tabunting 6awnshop and
oers dierent kinds o "ewelry
. Mar ketSegment s TheSt a.L uc i aGr a ndMal lc at er st heCai nt aar ea,Mar i k i naCi t yar ea ,Pas i gar ea,an d An t i p ol oAr e a.I te nc omp as s esr o ug hl yab ou t1 , 00 0, 0 00r e si d en t sea r n i n gana v er a ge P12, 000permont h.
III.
MARKETTRENDS
/ne o the ost trendy and ashionable types o "ewelry on the arket is gestone "ewelry. *estone "ewelry is ade in various designs, colors, and styles with a design, which contains one or ore beautiul gestones as a ocal point. 2hile various types o gestone "ewelry are popular, there are dierent gestone "ewelry trends each year. /ne year it ay be considered e-treely ashionable to wear ruby earrings while the ne-t year rubies ay be out. 8 The latest red carpet ashion trend is pear shaped, gestones drop earrings. Tacori is at the ront line o style. These earrings are versatile and can go ro a day to night, ro "eans and ballet Aats, to a se-y little black dress. 8 $ethyst is another popular gestone especially in the all. It is a great accessory to any ring or necklace.
&onsidered to be a precious stone,
aethyst ranges in shades ro lavender to an intense, deep purple.
8 $nother trendy gestone is the oonstone, a gorgeous, translucent gestone in shades o peace, blue, pink, and white. +oonstone "ewelry continues to be all the rage. 8 %utilated uart is ade ro needles o the ineral known as rutile which is ebedded in crystal 3uart. %utilated uart is known to ease depression. *estones o this type are oten ound in various types o "ewelry ro necklaces to bracelets. 8 &handelier earrings are becoing increasingly popular. These earrings are an e-otic, Indian inspired design and appeals to woen all over the world. $nyone would eel absolutely radiant when wearing this type o "ewelry. 8 0ig, bold, and colorul "ewelry is aong the gestone "ewelry trends. 0lack "ewelry with large gestones is very popular aongst various
IV.
individuals today. TARGET MARKET n t aar ea,Mar i k i na $%& Jewelry Store is targeting woen and en in the Cai Ci t ya r ea ,Pa s i gar e a,a ndAn t i po l oAr e a. This is a sophisticated counity and
there is no doubt that the counity is the centerpiece o stylish shopping. In addition, since woen are the priary end consuers o "ewelry, it1s natural or our $%& Jewelry Store to spend ost o its arketing resources targeting this largest arket.
V.
MARKET NEEDS The "ewelry we will arket will eet the needs o woan who are looking to dress up their outft with 3uality gestone "ewelry.
$nd also or the en
who loves "ewelry as there accessories. The "ewelry will be suitable or both oral and inoral events.
VI.
UNI/UE FEATURES OF THE SERVICES $%& Jewelry Store oers custoer to custoied piece designed or the onsite. $nd in ters o services, we oer G hours5 tie rae to fnish the custoied "ewelry.
VII.
DEMAND AND SUPPLY ANALYSIS &. DEMAND ANALYSIS $ total o G:: respondents took part on the survey conducted by the proponents o this business. $ter gathering and recording all the data, it shows that HC; o the respondents belong to the age bracket o @!9G years old. The result also shows that C; o the respondents are eale
while GC; are ale. $bout C; are single while the other @C; are arried. 2ith regards to their onthly incoe, ost o the respondents belongs to the incoe bracket o 6@:,:::!@C,:::. This also indicates that ost o the are young generation who coprise about K:; o the saple sie. $bout C; o the respondents are willing to spend up @:; o their incoe or "ewelry products ostly or woen, while @C; are still undecided to spend their incoe in buying "ewelry products and 9:; o it don5t want to spend their incoe or "ewelry. $ong the products and services oered by $%& Jewelry Store, the respondents also consider the price and what kind o the "ewelry as the ain actors in buying "ewelry.
. SUPPLY ANALYSIS 0ased on the data gathered ro the survey o "ewelry store in 6hilippines, it shows that about 9C: frs in the country are engaged in the "ewelry industry. +ost o the sellers o "ewelry give priority in providing
3uality
service,
aordable
process
and
good
advertisingLproduction in order to stay copetitive in the service arket.
VIII. MARKETING STRATEGY The $%& Jewelry Store will provide high 3uality gestone "ewelry to en and woen. /ther "ewelry retailers have lagged in this particular arket by not concentrating on providing a large variety o colors, sies and designs. 2e intend to leverage our e-pertise, product oering and arketing strategy to increase our custoer base while driving sales and proft.
I0.
SWOT ANALYSIS The S2/T analysis provides us with an opportunity to e-aine the internal strengths and weaknesses the $%& Jewelry Store ust address.
It also
allows us to e-aine the opportunities presented to The $%& Jewelry Store as well as potential threats. A. S!#*1!+$ 8 Strong relationships with suppliers that oer credit arrangeents, Ae-ibility, and response to special re3uireents. 8 )-cellent and knowledgeable sta, oering personalied custoer service. The $%& "ewelry sets itsel apart ro the copetition by providing custoied "ewelry designs while the custoer waits.
8 *reat retail space with an attractive, inviting atosphere. 8 The owner keeps overhead low by purchasing directly ro local suppliers and sel!creating the a"ority o the erchandise. B. W&2*$$$ 8 $ccess to additional operating capital. 8 %evenues in the industry are cyclical4 the a"ority o revenues are earned during the ourth 3uarter and 9C; are earned in the onth o =eceber. 8 /wners are clibing the retail e-perience curve. C. Oppo#!3*"!"$ 8 Increase in higher incoe o target arket. 8 $ddition o other "ewelry related products and services. D. T+#&!$ 8 (ocal and eerging copetitors. 8 Shopliting. 8 Sales tied to econoic growth.
0.
4P5$ o6 MARKETING A. PRODUCT The $%& Jewelry Store will specifcally carry gestone "ewelry that is designed or the proessional and sociable an and woan. /ur selection will range in various colors, sies and styles to eet the uni3ue needs o the everyday an and woan. ere are the lists o product oered by $%& Jewelry Store. &/%6/%$T) T/D)M =I$+/M= J)2)(%N )M*$*)+)MT %IM*S */(= J)2)(%N SI(O)% J)2)(%N 6)$%( J)2)(%N 6IMS, +)=$( M$+)6($T) S&//( %IM*S 2)==IM* %IM*S F%I)M=SI6 %IM*S )$%%IM* 6)M=$MT M)&D($&) B. PRICE The $%& Jewelry Store will use a dynaic pricing odel. $ll "ewelry will • • • • • • • • • • • • •
be clearly arked with prices ! ! however, our pricing policy will allow or soe Ae-ibility.
In order to increase sales revenues, our sales
representatives will be authoried to oer a a-iu predeterined discount to e-tend to their custoers.
This incentive will provide the
custoer the perception o e-tra value and a bargain purchase.
Since we are operating ro a shop and not an online store we will need to aintain soewhat reasonable and aordable prices. Soe ites will sell as low as 69::, but ost o the products will be priced ro 69:: to 69:,:::. There are a ew pieces that will sell or 69:,::: to 6@::,:::. C. PROMOTION /ur priary prootion and advertising strategy will be word!o!outh. @. 2)0SIT) =ue to the nature o this business being a all shop there are no plans to develop a website during the initial startup o the business. 2e will develop a website ater the frst si- to twelve onths which will be an inorational site and will not list our products.
The
website
and
will
have
our
location,
ashion
related
articles
announceents o new products. 9. 6%IMTS $=S
$dvertiseent on the local leading newspaper and againes will be utilied to urther aggressive capaign o the business to penetrate the arket. G. ()$F()TS To be used in introducing and inoring the public about the e-istence o the business #$%& J)2)(%N S/6' which includes the location ap and the services oered. D. PLACE The $%& Jewelry Store will be located in 9 nd Aoor near 2atson o Sta. (ucia *rand )ast +all. It easy recognie because o the uni3ue store aPade and by the store logo.
0I.
MARKETING PROGRAM /ur arketing progra will priarily consist o our highly visible and centrally located kiosk in the Sta. (ucia *rand )ast +all location.
@. =IS&/EMTS $%& Jewelry will oer @:; discounts in cash basis. $nd also will oer discounts or seasonal occasion. 9. &%)=IT &$%= and =)0IT &$%= 6$N+)MTS $%& Jewelry will oer credit cards and debit cards by odes o payent. G. S$()S ST%$T)*N 0ecause $%& Jewelry Store is a new business, we understand that we will have to prove our &opany1s worth to custoers to
earn their business. $s e3ually iportant, we need to sell both the &opany and products. 2e will approach sales
ro
a
salesperson!custoer
relationship basis. $ll sales representatives will be trained and encouraged to assist custoers in a personal and engaging anner.
0y gathering key custoer inoration and seeking
design eedback on our products will assist us in the ollowing ways7 8 Targeting our arketing eorts ore eectively. 8 =eveloping product oers that will increase sales. 8 Training and developing sales representatives in order to eectively service the custoer. 8 Increasing awareness o our $%& Jewelry Store within the "ewelry retail consuer arketplace. 8 =eveloping uture sales opportunities that allow or continued growth o the business.
CHAPTER III TECHNICAL ASPECT
A.
LOCATION The proposed business site will be operated at 9 nd Aoor near 2atson o Sta. (ucia *rand )ast +all, i!al.
Marcos Highway Cor. Felix Avenue, San Isidro, Cainta,
2e have seen that the place will be suitable or putting up a
business because there are lots o shoppers at the all. It is also accessible since it is along the road. Figure1. Watson of Sta. Lucia Grand East Mall
B.
GANTT CHART The chart below states the activities or aking a business establishent beore the noral operation will take place. TABLE1. Gantt chart
C.
STORE LAYOUT AND SIZE FI*E%) 97 ST/%) ($N/ET Figure 2: Product Sa!le
D.
PRODUCT The $%& Jewelry Store will specifcally carry gestone "ewelry that is designed or the proessional and sociable an and woan. /ur selection will range in various colors, sies and styles to eet the uni3ue needs o the everyday an and woan. +anageent will rely
on custoer eedback and sales reports to eliinate or introduce particular sies, colors and styles.
E.
PRODUCT DESCRIPTION /ur $%& "ewelry store will carry wide selection gestone "ewelry with various styles and price ranges. )ach piece o "ewelry will ocus on designs which accent and bring ocus on the gestones in that piece. The "ewelry will be designed or casual, business and oral occasions. 2e will oer gestone "ewelry that includes necklaces, rings, bracelets, and earrings. &ustoers can purchase preade "ewelry or re3uest a custoied piece designed or the onsite.
F.
PRODUCT SOURCING %aw "ewelry aking supplies will be sourced ro locally. The owner o the business has contacts in these suppliers or purchasing 3uality gestones and supplies not only at wholesale prices, but also providing credit arrangeents and Ae-ibility in payent ters. This in turn provides soe Ae-ibility in the owners5 day to cash Aow re3uireents. /rders o supplies which are sall in sie and weight will be air shipped. $ll products and supplies will be stored at the owner5s residence. 2hile custo designs will be ade on site while the custoer waits, the standard selection o preade designs will be ade at the owner5s residence.
G.
LIST OF STORE E/UIPMENT AND SUPPLIES WITH CORRESPONDING COST +$T)%I$(S E/UIPMENT &/+6ET)% FURNITURES 7
FI0TURES /FFI&) &$I% FI(IM* &$0IM)T /FFI&) T$0() 6%IMT)% =IS6($N &$0IM)T OFFICE SUPPLIES 0$((6)M 6)M&I( F/(=)%S
TN. 9
EMIT &/ST @C,:::
T/T$( &/ST G:,:::
G C G @ Q
C: @,99C QC: GQC: @,99C
@,KC: ,@9C @,GC: G,QC: Q,K::
@ bo@ bo@: @ bo-
@:: @:: C 9C
@:: @:: C: 9C
6$6)% &(I6 ST$6()% ST$6() 2I%) 0/M= 6$6)% S&ISS/% )MO)(/6) S&/T& T$6) T$6) =IS6)MS)% %)&/%= 0//D 6EM&)% S$%6)M)% )%$S)% &/%%)&TI/M F(EI= SI*M$*) FI%) )RTIM*ES)%
H.
@ @: bo-es Q reas @ 9: Q @ C @ @ C 9 9 9
G: C @9: 9: C @C C: HC C @: @: C: G: @,::: TOTAL
G: C: Q: 9: @:: : C: GHC C @: C: @:: : 9,::: 89,8::
INVENTORY MANAGEMENT In order to run the store successully appro-iately 6@,:::,::: in inventory is re3uired. This inventory will be stored at the owner5s residence. The owner will utilie bins to store and organie "ewelry supplies. Final "ewelry products will be kept at the kiosk. Since this is a sall business with liited inventory, all inventories will be anaged in a spreadsheet.
I.
STORE SCHEDULE ARC J'#- S!o# will operate ro @:a to Kp. It will start selling at the oent the all opens. The eployees should be present one hour beore the opening o the store or the arrangeent and preparation.
J.
SELLING PROCESS These steps are eant to act a guideline in the selling process o $%& Jewelry Shop, as each sales approach will probably have to be custoied to ft the situation and the custoer.
S!p 9% B P#p&#( The purpose o being prepared is to provide you, the salesperson, with pertinent inoration needed to increase your confdence in the selling process. 0eing prepared also eans knowing your product and being able to answer any 3uestions that pertain to it. S!p ;% Op*"*1 !+ S&' The frst essential key to selling is to develop sensitivity to your potential custoer, and that is not always a siple task.
S!p <% P#o"*1 /nce the custoer is put at ease, eels coortable and has developed soe trust in you, your ne-t step is to deterine the custoers1 wants, needs and desires. This is done with the use o eective probing 3uestions. S!p 4% T+ Dmo*$!#&!"o* There are two a"or ob"ectives to be accoplished during the deonstration7 )stablish the worth or value o the product...the beneft derived ro the purchase. *enerating desire...the need to own the erchandise. In other words, cause the custoer to say, I1ll take it beore you have to ask, 2ill you buy itU I you listened careully to the custoers1 responses in probing, you1ll have several good points to use in the deonstration. S!p 8% T#"&' C'o$ $ trial close is when the custoer is not 3uite ready to ake a decision, and you have to nudge the a little. $sk the which color they would preer, or what sie suits the best. 6oint out the dierent accessories or add!ons you also sell which ay ake the product ore desirable S!p =% O>!"o*$ S!p @% C'o$"*1 !+ S&' &losing the sale akes you a true salesperson. This is where you actually ask the custoer to buy. /ne o biggest istakes ade by new crats entrepreneurs is ailure to ask or the order. $sking the custoer to buy can be very diVcult or ost frst!tie salespeople W perhaps because it is the one 3uestion that by its nature deands a yes or no answer. S!p % Co*#m&!"o* &*( P&-m*! This step eliinates buyers1 reorse and returns, and increases repeat business. Thank the custoer or their order or purchase and i possible use the custoer1s nae >get it o che3ue, credit card, etc.?, this will help to establish a ore personal relationship. K.
W&$! D"$po$&' M&*&1m*! The waste ro the store place will be identifed as biodegradable. These wastes will be disposed thru the collection o all garbage. Mon!biodegradable wastes will be recycled or sold to "unkshops.
CHATER IV ORGANIZATIONAL AND
MANAGEMENT ASPECT
A. FORM OF OWNERSHIP The or o business is partnership. The nae o the business fr is #$%& J)2)(%N ST/%)'. The proponents choose the or o partnership because o the ollowing reasons. A(&*!&1$% •
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$s copared to a sole proprietorship, a greater aount o capital can be accuulated in a partnership because o the nubers o person involved. 0etter anageent will result in a partnership because o the concerted eorts and abilities o the partners. $s copared to the corporation, a partnership is supplier and less e-pensive to organie, there being only ew legal re3uireents.
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The partnership5s unliited liability will serve as protection or the partnership creditors thus the letter will not be discourage to e-tent fnancial assistance.
D"$&(&*!&1$% •
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$ny personal rits, deaths, withdrawal or incapacity o a partner ay dissolve the partnership )3ual proft sharing despite une3ual attention o tie given by partners. 0ecause o nubers o person involved, conAicts and disagreeent ay arise and ay easily aect the operation and success o the business.
B. ORGANIZATIONAL CHART AND STRUCTURE Since $%& Jewelry Store is a sall business, it will be anaged by industrial partner and will have two sales representatives.
/2M)% +anager Sales %epresentat ive
Sales %epresentat ive
C. EMPLOYEES A. JOB TITILE%
MANAGER
JOB DESCRIPTION% The "ewelry store anager also plans and prepares work schedules or "ewelry store personnel, assigns eployees to specifc duty re3uireents o the store, prepares and directs personnel with appropriate erchandise, and provides perorance review. eLshe is also responsible or storing display as well as advertising copy, peroring sales work such as taking inventory, recollecting cash with sales receipts, and aintaining operating records such as records o store transactions. The "ewelry store anager also orders erchandise and stock as needed4 and ensures personnel coply with established store security level, as well as sales and record keeping procedures and practices. DUTIES AND RESPONSIBILITIES% =uties o a "ewelry store anager include assisting and anaging the daily operations and activities o the "ewelry store, as well as supervising eployees with their daily work re3uireents. /UALIFICATION% G to C years5 e-perience in a +anageent role preerably within a custoer service environent. *raduate o any our years course +ale or eale Strong verbal and written counication and interpersonal skills4 attention to detail and accuracy in work4 and tie anageent and organiational skills. $bility to aintain proessionalis at all ties when representing the copany and anageent to the public and copany associates. %e3uired to pass thorough background check and drug screen. •
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SALARY SCHEDULE% The salary o a anager is 6 9:,::: per onth. B. JOB TITILE%
SALES REPRESENTATIVE
JOB DESCRIPTION% Ender direction ro the Store +anager, the Sales %epresentative is responsible or building sales volue, establishing and aintaining
custoer relationships, creating eective teawork aong associates. The Sales %epresentative is not only the product flter sub"ect atter e-pert, but also ensures a proessional selling environent through the developent o sales proessionals.
DUTIES AND RESPONSIBILITIES% %ecoend products to custoers, based on custoers1 needs and interests. $nswer custoers1 3uestions about products, prices, availability, product uses, and credit ters. 6rovide custoers with product saples and catalogs. &ontact regular and prospective custoers to deonstrate products, e-plain product eatures, and solicit orders. )stiate or 3uote prices, credit or contract ters, warranties, and delivery dates. •
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/UALIFICATION% &ustoer Service Skills7 The custoer is always right. Nou will need to be able speak in a riendly way to custoers and potential custoers, listening to their needs and helping counicate options or the. &ounication Skills7 Nou will need to speak to custoers about a product1s dierent eatures, and answer any 3uestions they ight have. Fle-ibility7 Nou ight have to work long hours, nights or weekends. 6ersistence7 Mot every custoer is going to be a sale. 0eing able to bounce back i you lose a sale will be key or this "ob. *raduate o any our years course. @ X 9 years old. +ale or eale. •
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SALARY SCHEDULE% The salaries o Sales %epresentative are 6 @C,::: per onth. D. M&*&1m*! P#opo$&' $ good rapport between anageent and the eployees is a secret o a successul business. S!&*(&#("( +"#"*1 p#o(3# Standardied hiring procedure is
ipleented
to
guarantee
the
anageent that the vacant positions are aware only to the ost worthy applicants. R#3"!m*!$ The anageent will recruit individuals through advertising or all the vacant positions in need o occupants. S#*"*1
Through screening o applicants should be ade. $spiring eployees will get through the ollowing stages. a. S3m"$$"o* o6 R$3m $ll applicants are re3uired to provide a resue with 9-9 photo. ualifed applicants will then be called or an e-aination
. W#"!!* &m"*&!"o* This is given by the anageent to test the applicant5s intellectual capacity, capability, and knowledge about the position desired.
. I*"!"&' I*!#" In
this
stage,
necessarily e-isting at the
the
anageent
oten
asks
3uestions
not
applicant resue.
(. F"*&' I*!#" The aspiring individuals will a chance to prove theselves to the anageent that they are worthy o the position they are applying or.
. S3m"$$"o* o6 #3"#m*!$ $ter passing the fnal interview, the anageent re3uires the 3ualifed candidates to subit M0I &learance, edical certifcates, police clearance, residential certifcate, ta- identifcation nuber, and SSS nuber. Failure to subit and coply re3uireents in due tie is a sure ball to declination. The strict paraeter is intended to assure the workers disciplines.
H"#"*1 &*( p'&m*! The applicant is now eployed at this stage. $nd based on his 3ualifcation, he is now placed on the appropriate position.
O#"*!&!"o* The newly hired eployees are oriented about the policies, rules and regulation o the copany. They are introduced to their superior and co!workers.
O* !+ Jo T#&"*"*1 The newly hired personnel will be trained within his actual working environent. Through this, he will be ailiar with the duties and responsibilities attached to hi. This is usually last up to 9 weeks.
E. Emp'o- B*!$ O#!"m For work rendered beyond hours o regular working days, an additional •
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9C; o the regular per hour wage will be paid. Ho'"(&-R$! D&%egular holiday X @::; o the regular hourly rate is added to daily salary. Special olidayL%est =ay X G:; o the regular hourly rate is added to the
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daily salary. 9
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e3uivalent to one onth o the basic salary provided that an eployee worked at the business or at least one year. This is given no later than 9:th o =eceber. I eployee resigned or contact has ended within the year, the @Gth onth pay will be given to hiLher through hisLher 3uit
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clai. P&1)I"1 6ag!ibig oers o its eber the ollowing benefts7 housing progras, savings, and ulti!purpose load progra. +ebership to 6ag!Ibig is
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voluntary i onthly basic rate is less than 6Q,:::.::. SSS $%& Jewelry Store will pay the eployer share to SSS contribution, while eployers share shall be deducted ro their onthly salaries.
L&$ S#" I**!" L&
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Service Incentive (eave 6ay is the beneft o eployees to avail o leave with pay or C days provided she has rendered service or at least one
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year. So'o P&#*!$ L& 6ersons who all under the defnition o solo parents and who have rendered service o at least one year are entitled to H working days o
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leave to attend to their parental duties. M&!#*"!- L& $ eale eber o the Social Security Syste >SSS? who has paid at least G onthly contributions in the twelve!onth period iediately preceding the seester o her childbirth or iscarriage shall be paid a daily aternity beneft e3uivalent to @::; o her average daily salary. The beneft is or : days or noral delivery and H days or caesarian
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delivery or the frst our deliveries and iscarriages. P&!#*"!- L& The law provides or paternity leave o H days with ull pay to all arried ale eployees in the private and public sectors. It is only available or the frst our >Q? deliveries o
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the legitiate spouse with who the
eployee is cohabiting. L&$ 3*(# RA ;=; 2oen victis o violence provided under %.$. K99 o the $nti!Oiolence against 2oen and their &hildren $ct are entitled to a paid leave o
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absence ro work up to @: days. L&$ 3*(# RA @9: The +agna &arta o 2oen introduced a 9 onth leave or woen with ull pay based on gross onthly copensation, or woen eployees who undergo surgery caused by gynecological disorders, provided that they have rendered continuous aggregate eployent service o at least
si- >? onths or the last twelve >@9? onths F. ORGANZATIONAL POLICIES Wo#2"*1 (&- &*( !"m +onday to Sunday @:7:: a !K7:: p P&-m*! o6 $&'&#"$&1$
6ayent o salaryLwages will be on the Cth and 9:nd day o every onth.
CHAPTER 8 FINANCIAL ASPECT
$. S$()S F/%)&$ST The ollowing table and related charts show our present sales orecast. Table C.@ $nnual Sales Forecast A**3&' S&'$ Fo#&$! Y&# 9 Y&# ; Y&# < Y&# 4 Y&# 8 S&'$ Store %evenues Q,G9:,::: C,H:,::: ,9:,::: ,H:,::: .KC:,::: Service and %epair QG9,::: CH,::: @:,::: @,:C:,::: @,:H,::: To!&' S&'$ P4,@8;,::: =,;<@,::: P,::,::: ,@;:,::: 9:,:;=,::: Co$! o6 S&'$ Jewelry and Supplies Q,::: @,@GQ,::: @,9:,::: @,C:,::: @,KQC,::: To!&' Co$! o6 S&'$ =4,::: 9,9<4,::: 9,=;:,::: 9,8:,::: 9,48,:::
B. FINANCIAL PLAN 6roft and (oss shows the proftability o the business, whereas, the 0alance Sheet shows the fnancial position o the $%& Jewelry Store. The &ash Flow shows the status o cash received and cash paid over a specifed period o tie. These docuents are re3uired to get fnancing or your venture. Since we are entering a retail environent we will accept cash, checks, and all a"or credit cards. 2e will select a check guaranty syste to help reduce the percentage o loss on bad checks.
9. Impo#!&*! A$$3mp!"o*$ P#o! &*( Lo$$ A$$3mp!"o*$% 8 )stiated $verage Sales 6rice per unit is @,::: 8 $verage daily sale7 9.H units Near @ 8 $verage units sold onthly7 : Near @, 9:8 in Near 9 < 98: in Near G 8 Q:; o revenues occur during Qth uarter 8 9C; o revenues occur during =eceber
8 %evenue increase in Near 9 assues average daily sales o G.C units or 9H.H; annual increase 8 %evenue increase in Near G assues average daily sales o C units or Q9.; annual increase >%evenues will level o near year G and total assets will reain static? 8 Service and %epair estiated %evenue7 @:; gross sales >industry average? 8 &ost o *oods Sold7 9:; o gross revenues >copares higher than industry peers Y QK.@:;4 ainly this is attributed to two actors7 @? low cost associated with obtaining raw aterials and fnding ro local Z 9? owner also constructs the fnal product, urther reducing overhead e-penses. 8 $dvertising )-pense7 ML$4 Tarpaulin will be visible in the all Z word o outh 8 $ccounting7 6@, ::: onthly bookkeeping Z 69H,::: or incoe tapreparations 8 0ad =ebts7 )stiate C; 8 =epreciation7 C years useul lie 8 &redit &ard Fees7 6@@.9C per transaction plus @.C; 8 Insurance7 )stiate 6@,::: annually 8 +iscellaneous7 )stiate7 @@,9C: annually 8 6ayroll Ta- $ssuptions7 based on 0I% Incoe Ta- %ates 8 6erits and (icense7 )stiate 6CQ:: annually 8 %ent7 6C:,::: per onth 8 Salaries7 +anager 9:,::: per onth , Sales %epresentative @C,::: 0alance Sheet $ssuptions7 Start!Ep &apital Ites7 8 Shop Z =isplay7 6C@,C:: 8 0eginning Inventory7 69,9Q@,::: >which reAects industry averages and copares in line with industry peers? 8 6& 0ased cash register 6@C,::: >no annual aintenance ees? 8 $ssues annual growth rate or total e3uity7 C; Near 9, and H.C; NG
;. START)UP COSTS The cost to setup a store and prepare it or operation total 69,CGG,C::. Startup inventory will cost appro-iately 69,9Q@,:::. The bulk o the annual e-penses annual store rental and are estiated to be 69,:GQ,::: or Q; o total e-penses. Start!up costs will be fnanced through owner investent. Table C.9 Start!Ep &osts S!&#!)Up A$$!$ Starting inventory 69,9Q@,::: Fi-tures and )3uipent C@,C:: 6& based cash register @C,::: To!&' S!&#!)Up A$$!$ P;,<:@,8:: To!&' R3"#( S!&#!)Up Co$!$ P;,<:@,8::
<. SOURCE AND USE OF FUNDS
This startup will be copletely fnanced by the owner o the business. The startup unds will be used to purchase initial inventory, purchase the store and display case, and a 6& based cash register. $dditionally the owner will provide the necessary working capital re3uireents to und day to day operations or the initial year o operations. The owner has enough unding to copletely und the business or the frst 9Q onths without relying on sales or other sources o unds. The unds are li3uid and priarily in the or o arketable securities.
Table H.G Source and Ese o Funds So3# &*( U$ o6 F3*($ Sources o Funds P 4,9@9,8: /wners1 and other investents To!&' So3# o6 F3*($ 4,9@9,8: U$ o6 F3*($ &apital e3uipent 6 ,C:: /pening inventory 9,9Q@,::: 2orking capital @,Q,:: To!&' U$ o6 F3*($ P4,9@9,8:
C. PROJECTIONS There are three key pro"ections needed or this section4 6roft and (oss, &ash Flow and 0alance Sheet. For a start!up business we have to pro"ect fgures or all o the above fnancial stateents, such stateents are called pro ora stateents. The word pro ora eans provided in advance.
9. P#o>!( P#o! &*( Lo$$ The 6roft and (oss stateent details the incoe and sales o $%& Jewelry over a specifed period. I*om ;:98 ;:9= ;:9@ ;:9 ;:9 Sales Q,HC9,::: ,9GH,::: K,:K:,::: K,H9:,::: @:,:9,::: &ost o *oods Sold >Q,:::? >@,@GQ,:::? >@,9:,::? >@,C:,:::? >@,KQC,:::? G#o$$ P#o! <,,::: 8,9:<,::: @,4@:,::: @,@:,::: ,:9,::: Ep*$$ $ccounting L (egal @,::: 9:,::: 99,::: 9Q,::: 9,::: 0ad =ebts 9:,::: 9C,::: 9H,::: 9K,::: G:,::: =epreciation @9,CCC 9C,@@: GH,C C:,99: 9,HHC &redit &ard Fees HC,:: KK,99C @Q@,HC: @C@,9C: @H:,C:: Insurance @,::: @,G: @,K:: @,KC: @K,C::
+iscellaneous @@,9C: @@,@@C @@,QHC @@,C:: @@,CHC 6ayroll Ta-es H:,Q9C @K,:C 9CG,CHC 9:,CHC 9HC,GQH 6erits and (icenses C,Q:: C,C: C,H@C ,::: ,::: %ent ::,::: :,::: H9:,::: H:,::: Q:,::: Salaries Q9:,::: QC,::: C@,::: C9:,::: C9C,::: Etilities @G9,::: @GH,::: @Q:,::: @QG,::: @QH,::: To!&' Ep*$$ 9,<<,;<: 9,=;=,48 9,4,:: 9,4,48 ;,99<,=@@ N! P#o! P ;,8:4,@@: P <,4@=,898 P 8,8@8,;: P8,@8,8:8 P 8,=@,<:<
;. PROJECTED BALANCE SHEET The balance sheet provides instant picture o the business. It has two sections4 one is or assets and the other or liabilities and capital. 6ro Fora 0alance Sheet
P#o Fo#m& B&'&* S+! Y&# 9 Y&# ; Y&# 4 Y&# 8 A$$!$ C3##*! A$$!$ &ash G@,@9C GHK,@H: Q:H,@: Q@C,Q: $ccounts %eceivable HH,9C @,QKC K, HKC @:C, HKC Inventory 9,9Q@,::: 9,GCG,:C: 9,C9K,CQ: 9,HHK,9@C /ther &urrent $ssets QG,HC Q,:: QK,H:K C:,@C: Total &urrent $ssets 9,H9G,9C 9,CK,HKC G,:HQ,G@: G,GC@,::: Lo*1 T#m A$$!$ (ong Ter $ssets C,C:: H:,::: K:,::: K9,::: $ccuulated =epreciation @G,@:: @G,@:: @G,@:: @G,@:: Total (ong Ter $ssets C9,Q:: C,K:: H,K:: H,K:: To!&' A$$!$ ;,@@=,:;8 ;,9=,=8 <,94=,;9: <,4;,::
Y&# <
Q@:,HC: H,@C 9,H,G QK,CQC G,9G,:K:
C,::: @G,@:: H@,K::
<,<9;,:
L"&"'"!"$ &*( C&p"!&' &urrent (iabilities $ccounts 6ayable C@,QK: CQC,:C C,HCC CK@,QC: /ther &urrent (iabilities GGK,HC: GC,H: GG,QK: GH,QK: Subtotal &urrent (iabilities C,9Q: K:9,CC KH:,9QC KH,KQ: (ong Ter (iabilities Total (iabilities C,9Q: K:9,CC KH:,9QC KH,KQ: 6aid In L Invested &apital @,K@H,HC 9,:@Q,@G: 9,@HC,KC 9,QC:,K: Total &apital @,K@H,HC 9,:@Q,@G: 9,@HC,KC 9,QC:,K: To!&' L"&"'"!"$ &*( C&p"!&' ;,@@=,:;8 ;,9=,=8 <,<9;,: <,4;,::
CK:,H:: GC,Q: KH,CQ:
KH,CQ: 9,GG,QC: 9,GG,QC:
<,94=,;9:
D. FINANCIAL RATIOS /verall, the $%& Jewelry Store deonstrates suVcient li3uidity, has no debt obligations, and deonstrates avorably proft argins. Liquidity and Leverage: The Jewelry Store Diosk has ade3uate li3uidity and copares avorably with its peers based on its current ratios. In Near /ne, the $%& Jewelry Store reports a current ratio o G.@H. The $%& Jewelry Store5s leverage and e3uity ratios will not copare with its peers. This is priarily attributed to the act that the owner will sel!und with no outside debt or fnancial obligations. Proftability % 6roftability copares below its peers as evidenced by its %eturn on $ssets %atio o 9:.K; in Near /ne. +itigating this average is the $%& Jewelry Store5s above average gross proft argin o @.; in Near. The owner is able to achieve such argins with reductions in e-penses associated with overhead and by constructing the "ewelry designs hersel. Activity: The average Inventory turnover is .H:R ties annually. The $%& Jewelry Store is anticipated to turnover inventory .GR in Near /ne, .QR ties in Near Two and .QR in Near Three and copares to be in line with its peers. $lthough slow to turn, this is a coonality o the Jewelry Store Industry with erchandise inventories representing ore than C:; o annual sales. T&' @.= R&!"o A*&'-$"$ R&!"o A*&'-$"$ Y&# 9 Y&# ; Y&# < Y&# 8 F"*&*"&' R&!"o$ uick %atio :.C@ :.C@ :.C@ :.C@ :.C@ &urrent %atio G.@H G.@H G.@H G.@H G.@H &urrent (iabilities to Met 2orth GG.K; GG.K; GG.K; GG.K;
Y&# 4
GG.K;
