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1.

Executive Summary
Jack Hardware will be a standard general hardware store that offers the parts, material,
and advice to tackle any home repair, as well as lawn care. The primary focus will be to satisfy
the seasonal needs of the area's customers.

The Company will service the hardware and repair needs of the [COUNTY],
[COUNTY], [COUNTY] and [COUNTY] County households. The Company would like to
increase sales in all market segments above with a concentration of growth in sales to
homeowners who do their own repairs.

The focus of this business plan is to put forth objectives to launch operations, work
efficiently and effectively, and expand internal operations giving the Company the opportunity to
grow with sales growth in the surrounding County areas. Jack Hardware is ready to elevate to the
next step. The Company is seeking grant funding in the amount of Php 500,000.00. The grant
funding will be used to launch operations including purchasing the existing land & business,
construction of a new Building and purchasing equipment and displays for the store.
Additionally, the Company will purchase the opening inventory, develop a website and launch
an advertising campaign.

1.1 OBJECTIVES

There are four major objectives of this business plan, of which three are immediate and
the fourth is of a longer-term nature.

1. Customer Service - Give our customers the highest quality product and service at
a fair competitive price.
2. To create a safe environment for people in the community to come for their
hardware store needs.
3. To have a 12% annual revenue growth rate.
4. To successfully manage a hardware store.
5. To increase the availability of capital resources to invest in future expansion
projects.
1.2 VISION
A company with a global outlook, we want to be the best in the industry, a
company that is respected by customers, suppliers, employees and even competitors. And
to be the best-in-class provider of products and solution choices that drive our members'
and our co-op's profitability

1.2 MISSION
Jack Hardware's mission is to create a downtown hardware store that is reliable
and convenient. A store that offers great service and selection of hardware and home
improvement products in a customer friendly environment.

Jack Hardware will cater to downtown residents, downtown property managers,


downtown businesses, contractors, and suburban commuters. Our customers will become
loyal because of the great advice, prompt service, good staff attitudes, the overall quality
of the shopping experience, and the fact that we consistently have solutions for their
needs.

1.4 KEYS TO SUCCESS


 Location: Jack Hardware is located in ___________. The foot traffic in the
plaza is very strong. The plaza's primary tenants are the area's successful supermarket,
drug store, and appliance store. ____________ has easy access points on both of the
area's major cross streets and is the biggest shopping center in ___________ residential
area. The closest hardware store to the ____________ area is a twenty minute drive.

 Seasonal Products: Each season has its own unique demand on a homeowner.
Jack Hardware will focus on this pattern and bring in local customers by marketing these
items at competitive prices.

 Repair/Project Resource Area: The first section customers will find when they
enter is a repair/project resource area that they can use to plan repairs or projects. There
will be a repair/project resource person to answer questions and direct them to the section
of store where the needed products are.

 In-Store Expertise: Store employees will be knowledgeable in home


repairs/projects. In addition, the repair/project resource area will be used to conduct short
trainings and demonstrations in home repair and home projects.
2. Company Summary
In the company summary section, we will review the business and corporate entity and
ownership, the role of Jack Hardware in the business, the proposed location, and the start-up
costs and funding.

2.1 START-UP SUMMARY


The start-up cost of Jack Hardware will consist primarily of inventory and
display equipment. Business owner will invest Php 500 000.00 as a startup capital.

2.2 START – UP REQUIRMENTS

2.2.1 Start Up Expenses


The start-up costs of Jack Hardware, as detailed below, will consist
primarily of inventory, equipment and fixtures.

10 000
Telephone 1 500
Legal 10 000
Brochures 2 500
Insurance 3 000
Rent 10 000
Start-up Inventory 205 995
Display Set-up (Fixtures) 35 000
Vehicle Downpayment 85 000
Advertising 10 000
Other 10 000
TOTAL START-UP EXPENSES 335 395
2.2.2 Start Up Assets

Cash Required

Start Up Inventory
Other Current Asset
Long Term Asset
Total Assets

3. PRODUCTS & SERVICES


Jack Hardware offers the parts, material, and advice to tackle any home repair, as well as
lawn care. The primary focus will be to satisfy the seasonal needs of the area's customers.

CATEGORY:TAPES QUANTITY PRICE TOTAL SUPPLIER


PER UNIT PRICE
PACKING TAPE 2O pcs ₱ 25 ₱ 5OO
FOAM TAPE 20 pcs ₱ 3O ₱ 6OO
DUCT TAPE 15 pcs ₱73 ₱ 1,O75
PAINTERS TAPE 15 pcs ₱67 ₱ 1,OOO
GEL TAPE 15 pcs ₱65 ₱ 975
DOUBLE-SIDED TAPE 4O pcs ₱25 ₱ 1OOO

DANCE FLOOR TAPE 2O pcs ₱65 ₱ 13OO

ELECTRICAL TAPE 4O pcs ₱25 ₱ 1,OOO


MASKING TAPE 4O pcs ₱ 2O ₱ 8OO

CATEGORY: QUANTITY PRICE TOTAL SUPPLIER


ELECTRICAL PER UNIT PRICE
SUPPLIES
PRIMARY WIRE 8O Meters ₱7 ₱ 56O
NON-METALLIC 8O Meters ₱6 ₱ 48O
BUILDING WIRE
STRANDED WIRE 8O Meters ₱4 ₱ 32O
SPEAKER WIRE 6O Meters ₱4 ₱ 24O
SOLID COPPER BELL 8O Meters ₱7 ₱ 56O
WIRE
THERMOSTAT WIRE 5O Meters ₱8 ₱ 4OO
WIRE CONNECTORS 5O Meters ₱ 1O ₱ 5OO
CATEGORY: QUANTITY PRICE TOTAL SUPPLIER
BATTERIES PRICE
DURACELL 25 PCS ₱ 3O ₱ 75O
ALKALINE
BATTERIES
FOB REMOTE 3O PCS ₱ 3O ₱ 9OO
BATTERY
DURACELL 3O PCS ₱ 25 ₱ 75O
WATCH OR
CALCULATOR
BATTERY

CATEGORY: QUANTITY PRICE TOTAL SUPPLIER


SWITCHES, PRICE
RECEPTACLES
WIRELESS ROCKER 2O PCS ₱ 27 ₱ 54O
SWITCH
TRIPLE 35 PCS ₱ 23 ₱ 8O5
COMBINATION
SWITCH
DOUBLE 35 PCS ₱ 2O ₱ 7OO
COMBINATION
SWITCH
4 WAY 3O PCS ₱ 25 ₱ 875
GROUNDING
SWITCH
DUPLEX 35 PCS ₱ 22 ₱ 77O
RECEPTACLE WITH
WALL PLATE
RESIDENTIAL 35 PCS ₱ 24 ₱ 84O
GRADE DUPLEX
RECEPTACLE
DUAL FUNCTION 35 PCS ₱ 25 ₱ 875
OULET

CATEGORY: QUANTITY PRICE PER TOTAL SUPPLIER


EXTENSION CORD UNIT PRICE

LANDSCAPE 3 ₱ 11O ₱ 33O


EXTENSION CORD
CATEGORY: QUANTITY PRICE PER TOTAL SUPPLIER
ELECTRONICS UNIT PRICE
GEAR TIE 12 1O ₱ 35 ₱35O
INCHES TWIST TIE
NETWORKING 1O ₱3O ₱ 3OO
CABLE
REPLACEMENT 1O ₱25 ₱ 25O
POWER CORD
USB MICRO 1O ₱ 45 ₱ 45O
DEVICE CABLE

CATEGORY: LIGHT QUANTITY PRICE PER TOTAL PRICE SUPPLIER


BULBS UNIT
LED 3WATTS 15 ₱ 1OO ₱1,5OO
LED 5WATTS 15 ₱11O ₱ 1,65O
LED 9WATTS 1O ₱225 ₱ 2,25O
LED1OWATTS 12 ₱25O ₱ 3OOO
LED13WATTS 12 ₱315 ₱ 3,75O

CATEGORY: QUANTITY PRICE PER TOTAL SUPPLIER


UNIT PRICE
PAINT FLAT LATEX 1O PCS ₱32O ₱ 3,2OO
4 LITERS
PAINT 4 LITERS 1O PCS ₱51O ₱ 5,1OO
GLOSS
PAINT 4 LITERS 1O PCS ₱52O ₱ 52OO
SEMI GLOSS
PAINT 4 LITERS 1O PCS ₱43O ₱ 4,3OO
ENAMEL
PAINT BRUSH
10 MM 1O PCS ₱ 10 ₱1OO
20 MM 1OPCS ₱ 19 ₱19O
40 MM 1O PCS ₱ 38 ₱38O
50 MM 1O PCS ₱ 49 ₱49O
80 MM 1O PCS ₱ 69 ₱69O
PAINT ROLLERS 2O PCS ₱39 ₱780
(FOAM)
PAINT ROLLERS 2O PCS ₱49 ₱
(MOHAIRS)
PAINT THINNERS 2O PCS ₱ 15 ₱

STEEL
1O mm – 6m 100 PCS ₱11O ₱ 11 OOO
12mm- 6m 1OO PCS ₱12O ₱ 12 OOO
1Omm-9m 1OO PCS ₱13O ₱ 13 OOO
12mm-9m 100 PCS ₱2OO ₱ 2O, OOO
HOLLOW BLOCKS 10000 PCS ₱12 ₱ 12 000

LUMBER WOOD
2X2X8 3O PCS ₱ 115 ₱ 3,45O
2X4X8 2O PCS ₱24O ₱ 4,8OO
PLYWOOD
1/4 3O PCS ₱ 325 ₱ 975O
PLYWOOD 1/2 20 PCS ₱ 450 ₱ 9OOO

PVC PIPE
1 BLUE 3O PCS ₱ 115 ₱ 3,45O
3/4 BLUE 3O PCS ₱ 8O ₱ 2,4OO
1/2 BLUE 3OPCS ₱ 55 ₱1,65O
CEMENT ONE BAG 1OO PCS ₱ 21O ₱ 21,OOO
4OG
GI SHEET 3Omm 5O PCS ₱ 28O ₱ 14, OOO
PLYBOARD 3/4 5 PCS ₱ 91O ₱ 4,45O
NAILS 2OO PCS ₱1 ₱ 2OO
CONCRETE NAILS 2OO PCS ₱3 ₱ 6OO
GRAVEL 10 TONS ₱ 1100 ₱ 11000
SAND 10 TONS ₱ 1100 ₱ 11000
TOTAL ₱170 095
4. MARKET ANALYSIS
4.1 Market Trends

The Philippine construction activity has been growing. According to the


Philippine Statistics Authority (PSA), the number of approved building permits increased
by 20.8%, from 24,400 new construction projects in the first quarter of 2013 to 29,468 in
the first quarter of 2014. Moreover, residential-type building projects recorded a faster
rate of expansion, with 17.1%, compared with non-residential buildings with 15.2%.
While the rise in activity indicates improvements in the industry, there are concerns over
the impact this will have on material and labor prices.

In a bid to revive the country's housing market and meet demand from the
growing population, the Housing and Land Use Regulatory Board (HLURB) has set a
target to construct 1 million housing units by 2016, and also announced the construction
of 301 condominium projects in Metro Manila, constituting 134,421 housing units over
2013–2017. Of the total, the mid-market segment consisted of 49,997 units (37.0%),
while one-bedroom housing units accounted for 104,028 units (77.0%). Residential sales
are stronger among the high-end market and foreigners, as they are more prone to leasing
and renting property. This will support residential construction activity in the country
over the forecast period. The reports also get very specific as far as what the potential
market is for hardware overall as well as specific categories within a store. There are
also numbers reports for the expected growth in the area over the next five years.

4.2 Customer Profile

Jack Hardware primarily caters to three types of customers:

 Do-it-yourself customers such as home owners. These customers buy products


and install them themselves using online or in-store resources.

 Do-it-for-me customers include those looking for third parties to provide


installation services. HD provides several installation services including flooring,
cabinets, countertops, water heaters, and sheds. The company also provides in-
house consulting and installation services.

 Professional customers include contractors, builders, traders, interior designers,


and renovators, among others.

4.3 SWOT Analysis


5. Marketing and Sales Strategic Plan
Hardware Store, Inc.’s intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the business.

5.1 Marketing Objectives

 Develop an online presence by developing a website and placing the


Company’s name and contact information with online directories.

 Implement a local campaign with the Company’s targeted market via the
use of flyers, local newspaper advertisements, and word of mouth
advertising.

 Establish relationships with contractors within the targeted market

5.2 Marketing Strategies

Jack Hardware intends on using a number of marketing strategies that will


allow the Hardware Store to target customers within the target market. These
strategies include traditional print advertisements and ads placed on search engines on
the Internet. Below is a description of how the business intends to market its services
to the general public. Jack Hardware Store, Inc. will also use an internet based
strategy. This is very important as many people seeking local retailers, such as
hardware supply businesses, now use the Internet to conduct their preliminary
searches. Jack Hardware Store will be registered with online portals so that potential
customers can easily reach the business. The Company will also develop its own
online website, which will showcase the Company’s inventories, its hours of
operation, specialized discounts, contact information, and location information. The
Company will maintain a sizable amount of print and traditional advertising methods
within local markets to promote the home improvement goods that the Company is
selling.

5.3 Sales Strategies

The sales strategy of Jack Hardware is simple. First, create a shopping


environment that will create confidence in the customer that he or she will get the
needed material, part, or instructions to get the job done right the first time. Second,
make the store easy to navigate, so customer can get in and out as quickly as
possible. Third, know your customer's seasonal hardware needs and offer it at
competitive prices.
5.3.1 Sales Forecast

The sales projections start in the month of February, 2018.


Sales steadily increase along with the awareness of the store through
March. In September, there is a small dip in sales through the rainy
season and then a steady rise in March to April the store’s best months of
the year. There is a traditional slow season that runs through January and
February each year. The goal of Jack Hardware will be to develop
programs that take as much slacks out of the sales as possible and get them
in line with the rest of the sales year.

The immediate goal is to achieve robust sales in the first


year. It is thought that double digit percentage total sales increases can be
achieved and maintained throughout the five years of this business plan.
6. Organizational Plan and Personnel Summary

PRESIDENT

Finance Dep’t Marketing Dep’t Production Dep’t Admin Dep’t

DEP’T HEAD DEP’T HEAD DEP’T HEAD DEP’T HEAD

PRODUCT
PROCUREMENT SALES MANAGER DEVELOPMENT
HUMAN RESOURCES

DIGITAL MARKETING
CASHIER ANALYST
6.1 Position Roles & Functions

President - Is the one who is in charge in creating, communicating and implementing the
vision and mission and overall direction. The president meets regularly with other
officers or managers of the company to make sure that the decision are needed to make
more strategic.

Finance - is in charge with understanding the unit's financial situation and not allowing
unintended deficit to occur. They remain accountable for resources entrusted them,
including funding facilities, staffing even if they have delegated budget and accounting
responsibilities

Marketing and Sales Directors - The directors of Sales and Marketing is responsible for
planning and implementing sales, marketing and product development to achieve
objectives for product and services.

Production Directors - it usually from group of board of directors. They planning and
organizing production schedules. Estimating, negotiating and agreeing budgets and
timescales with client and managers.

Administrative Director - Manage and make sure that the policies are in place to ensure
that the administrative function of the business run smoothly. These directors are also
responsible for keeping employee record up to date and involved in budget development.

Procurement - Purchase request for good and services are handled expeditiously,
observing the need meet requirement of university customers. Acquisitions are completed
in a fair and equitable manner.

Sale managers - there are responsible for achieving growth and hitting sales target by
successfully managing the sales team. Designing and implementing a strategic sales plan
that expand company's customer base and ensure it strong presence.

Product development - Determines customers' needs and desires by specifying the


research needed to obtain market information. Recommend the nature and scope of
present and future product lines by reviewing product specifications and requirements.

Human Resources - Maintain the work structures by updating job requirement and job
description for all positions. Prepare employee for assignment by establishing and
conducting orientation and training program.

Cashier - Receive and disburse money in establishments other than financial institutions.
Usually involves use of electronic scanners, cash registers, or related equipment. Often
involved in processing credit or debit card transactions and validating check.
//
6.2 Organizational Budget

POSITION SALARY (MONTHLY)


President ₱ 18 000.00
Marketing & Sales Director ₱ 12 000.00
Production Director ₱ 12 000.00
Administration Director ₱ 12 000.00
Finance Director ₱ 12 000.00
Procurement ₱ 10 000.00
Sales Manager ₱ 10 000.00
Digital Marketing Analyst ₱ 10 000.00
Product Developer ₱ 10 000.00
Human Resource ₱ 10 000.00
Cashier ₱ 8 500.00
Salesman ₱ 8000.00
Driver ₱7800.00
Helper ₱ 7 500.00
Helper ₱ 7 500.00
Helper ₱ 7 500.00
TOTAL: ₱149,800.00
END OF JANUARY 2018

Sales 550 000

Cost of Goods Sold 205 995

Gross Profit 344 005

OPERATING EXPENSES

Telephone 1 500

Legal 10 000

Brochures 2 500

Insurance 3000

Rent 10 000

Utility 15 000

Fixtures 35 000

Advertising 10 000

0ther 10 000

Salary 149 800

Delivery Expense 10 000

TOTAL EXPENSES 256 800

Income before Taxes 87 205

Tax (12%) 10 665

NET INCOME 76 540


START OF FEBRUARY 2018

(Increase 24%)Sales 682 000


Cost of Good Sales 255 409
Gross Profit 426 591
Operating Expenses 292 244
Operating Income 134 347
Interest Expense

395000 x 0.00670
1 – [ 1 + 0.00670 ] - 36
= 12 386.00
Income Before Tax 121 961
Tax(12%) 14 365
Net Income 107 596
Month Sales
January 550 000
February 682 000
March 689 000
April 691 444
May 688 322
June 669 700
July 655 350
August 642 617
September 633 834