LUCKY's FASHION (Hand Made Accessories)

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



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



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



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



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.

http://en.wikipedia.org/wiki/Clothing

http://en.wikipedia.org/wiki/Jewelry

http://en.wikipedia.org/wiki/Gloves

http://en.wikipedia.org/wiki/Handbags

http://en.wikipedia.org/wiki/Hat

http://en.wikipedia.org/wiki/Belt_(clothing)

http://en.wikipedia.org/wiki/Scarves

http://en.wikipedia.org/wiki/Watches

http://en.wikipedia.org/wiki/Sunglasses

http://en.wikipedia.org/wiki/Pins

http://en.wikipedia.org/wiki/Stockings

http://en.wikipedia.org/wiki/Bow_tie

http://en.wikipedia.org/wiki/Leg_warmer

http://en.wikipedia.org/wiki/Leggings

http://en.wikipedia.org/wiki/Necktie

http://en.wikipedia.org/wiki/Suspenders

http://en.wikipedia.org/wiki/Tights

http://en.wikipedia.org/wiki/Clothing

http://en.wikipedia.org/wiki/Jewelry

http://en.wikipedia.org/wiki/Gloves

http://en.wikipedia.org/wiki/Handbags

http://en.wikipedia.org/wiki/Hat

http://en.wikipedia.org/wiki/Belt_(clothing)

http://en.wikipedia.org/wiki/Scarves

http://en.wikipedia.org/wiki/Watches

http://en.wikipedia.org/wiki/Sunglasses

http://en.wikipedia.org/wiki/Pins

http://en.wikipedia.org/wiki/Stockings

http://en.wikipedia.org/wiki/Bow_tie

http://en.wikipedia.org/wiki/Leg_warmer

http://en.wikipedia.org/wiki/Leggings

http://en.wikipedia.org/wiki/Necktie

http://en.wikipedia.org/wiki/Suspenders

http://en.wikipedia.org/wiki/Tights



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.

http://en.wikipedia.org/wiki/Bracelets

http://en.wikipedia.org/wiki/Necklaces

http://en.wikipedia.org/wiki/Earring

http://en.wikipedia.org/wiki/Shoelace

http://en.wikipedia.org/wiki/Bracelets

http://en.wikipedia.org/wiki/Necklaces

http://en.wikipedia.org/wiki/Earring

http://en.wikipedia.org/wiki/Shoelace



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



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.



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



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%



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.



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.



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



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



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.



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)



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.



• 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



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



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.



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

LUCKY's FASHION (Hand Made Accessories)

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