Sei sulla pagina 1di 95

VUICO Company envisioned becoming one of the leading distributor

and suppliers of high quality silkscreen printed shirts throughout the

Philippines.

Move aim to offer and produce high quality printed shirts at very

affordable prices to our consumers.

To be known as a reliable t-shirt printing business who provides

ultimate satisfactory service to our consumers.

1
PROJECT SUMMARY

 Introduction
 Name of the Enterprise
 Location
 Descriptive Definition of the Project
 Market Price
 Highlights of the Project
 Nature of Industry
 Mode of Financing
 Investment Cost of the VUICO
 Breakdown of Investment Cost
 Project Timetable
 Feasibility Criteria
 Project Long-Range Criteria
 Findings and Conclusion of the Study

2
INTRODUCTION

Nowadays, printed shirts are almost seen everywhere. There are many

process of transferring a design to a shirt. Computer printed designs, screen

printing process, heat transferred images and painting the shirt itself. In these

modern days, things are done in faster ways; that is why computers play varieties

of role. One can have his own picture printed in a shirt in just an hour or he can

even personalize a design that he likes to be printed in his shirt.

Universities like UC have their university shirts or organizational shirts.

Our business is targeting this opportunity for us to give them a uniquely designed

t-shirts that will surely be appreciated by students.

3
NAME OF THE ENTERPRISE

In planning to engage into a business, one of the factors that need to put
into consideration is what should be the name of the enterprise. Choosing a
business name take a lot of consideration like for instance, of how it will going to
be understood.

Creating the name of our business firm was the most trembling pace and
foremost task that the proponents must decide. The choosing was not just a
simple way of creating the business name but the consideration was made also if
it would be suitable that will keep up a correspondence to the business itself. In
fact, there were several options suggested by the proponents for what be the
best name that can be easily remembered by consumers as they perceive the
name of the enterprise.

Finally, after spending time in doing such analysis, the proponents agreed
and named the enterprise as VUICO wherein the last name initials of the five
partners namely Villafranca, Uy, Indoy, Corita and Ompad. The ink at the bottom
of the logo shows the main product that the business offers in the market which
is customized printed shirts. The Reverse Triangle that shown in the Initial of the
business name letter V illustrates that the business starts at small market which
is the tip of the Reverse triangle and later will cover a wide market like the shape
of a Reverse triangle it becomes wider and on top of it, is the business name
“VUICO” to realize its vision and goal in the market.

Consequently, it creates a great impact to the consumers’ mind. In


addition, the proponents are also having an environment of being optimistic that
the business would be profitable and leading its way to the highest point of
success.

4
LOCATION

In entering into the world of business, the location should matter most.
Every businessman should be very careful in choosing an appropriate place for
the desired business in order to attain the impact of the market.

We focused our concentration on seeking a proper place that suite the


business. The proponents should look for a location where is near enough to
rural area since the business is Tshirt printing and should be visible enough to all
the possible market that will avail the product that the business is offering.

Take some steps and discover the unseen grandeur place part of Cebu

City. T-Shirt printing business is located in Barangay Suba, Cebu City.

Furthermore, the location has the setting for the business to be rented and
have little improvements and will be able to achieve maximum efficiency and will
generate the lowest possible cost.

5
MARKET PRICE

If a particular product has a better quality compared to its direct


competitors, the customers are possibly undoubtful to patronize it and spend
their penny to buy the product because it has its reasonable price. However, we
are adapting a penetration strategy wherein we slightly lower down the price of
our product as compared to others yet have its quality. Unlike skimming strategy
which is to set the range in the upper limit of the realistic range of choice is not
the ideal strategy to capture customer’s attention.

What is price? Price is the amount of money needed to acquire some


satisfying goods or services. It is one of the components of the market mix. It is
also a variable that the marketing manager can control. Price decisions can
affect both the company’s sales and profits. If an ordinary citizen will be asked
about what is price, they will tell you that price is what you pay to buy something
or the tag-price of the supermarkets, stores, etc. or simply the value for money in
exchange of services.

There are of course factors that may affect VUICO’s revenue and profits
like the quality of the product, channel of distribution, government policies and
regulations, or innovative and creative alternatives, but price can never be
ignored when developing the market mix.

6
HIGHLIGHTS OF THE PROJECT

NATURE OF INDUSTRY

The t-shirt printing industry, like many other industries, continues to

undergo technological changes, as computers and technology after the manner

in which work is performed. Many of the process that was once done by hand are

becoming more automated.

The proponents decided to engage in t-shirt printing industry which is

providing our consumers with their desired printed t-shirts. This is to meet and

satisfy their needs and wants, to provide them with what they are looking for.

Since customized or printed t-shirts are getting trend, that is why VUICO

Company ventured and care into the door of t-shirt printing industry.

MODE OF FINANCING

A considerable amount of capital is needed to form the VUICO Company.

The proponents chose to pool funds from their own personal savings. The

partnership type of business will be adapted and each proponents will serve as

partners.

7
INVESTMENT COST

In every business that we want to engage whether how small or big that
business would be, an investment is needed.

CAPITALIZATION is defined as the process of raising money to finance a


business operation.

BREAKDOWN OF INVESTMENT COST

Leasehold Improvement P12,500.00


Delivery Equipment P60,000.00
Machineries and Equipment P129,000.00
Furniture and Fixtures P16,800.00
Office Supplies and Materials P4,500.00
T-shirts & Other Materials P73,943.00
Advance Rental & Deposit P24,000.00
Organization Cost P28,500.00
Company New Bank Account P10,760.00
_____________________________________________________
TOTAL P 360,000.00
===========================================================

8
TIMETABLE OF THE PROJECT

Target Schedule (No. of Days) Activities

YEAR 2019

July 16- July 26 (10 days)  Brainstorming about what kind of business
to build up.
July 27- July 31 (5 days)  Searching for the prestigious location for
the planned and decided business
August 1  Deciding the best name for the business.

 Conducting a survey for our possible


August 2- August 17 (15 days)
target market and knowing our perspective
competitors.
 Examining the results of the survey and
August 18 –August 28 (10 days)
studying the condition of our market
supply and demand.
 Canvassing for the best supplier of our
August 29- September 5 (8days)
products, materials, machineries, and
equipment needed for our project
 Painting of the office & production area
 Securing necessary permits and licenses.
September 6-October 30 (55days)
 Registration of our business as
partnership in the Securities & Exchange
Commission (SEC).
November 1- November 20 (20 days)  Making policies, formulating vision,
mission and goal of the business.
 Recruiting, hiring and training applicants to
November 21- December 31 (35 days)
become the workers in our business with
their specific requirements.
January 1-7 (7days)  Preparation for the start of business
operations.
YEAR 2020:

January 8  Grand opening and blessing of the VUICO


T-shirt Printing.

9
FEASIBILITY CRITERIA

A certain business should consider several factors in order to determine

the selected project is feasible or not. The areas that are to be considered are

the marketing aspect for it helps us determine the unserved market, technical

aspect, to us to determine whether we have the capacity to operate the proposed

business. The management aspect, financial aspect and socio-economic aspect

are also to be considered.

There are some guidelines to consider in determining VUICO is feasible

such as; the fulfillment of the unserved demand, the accessibility of our business

location, the plant size, its environmental condition and its facilities. The price is

set in accordance with the standards provided by management, as well as

considering the market and its market demand.

The proponents also considered the impact of the business to socio-

economic which will make it sure that the well being of the society would be our

utmost consideration. We will emphasize environmental friendly operations.

10
PROJECT LONG- RANGE CRITERIA

Nowadays, we are living in a competitive world where high technologies

and inventions are very widespread. Thus, business is not just an uphill climb but

also a survival one.

Service offered require not only labor and land but also time. It takes a lot

of time to a plan a business especially t-shirt printing. In fact business help us

achieve our goal in life, accepting the failures that we encounter in the nature of

business, a lot of competitors that will ruined a apart of our business, but as a

future businessmen we have to be wise enough to compete through our

competitors, it also sharpen our minds, come up with a lot of new design.

Emerging of one’s mind, boosting of one capacity and astonishing knowledge

can help the business more effective in the future.

As time passed by, mind of all businessmen keep on operating within 5

years since the operation of the business started. It is expected to have a loss of

profit, it should be overcome to gain more profit in return. After 3 years and for

more upcoming years, we highly assume that we can expand our t-shirt printing

which VUICO Company to provide the best quality of t-shirt and better services to

our loyal and valued customer, we plan our business to expand not only here in

Cebu but some areas in Philippines.

Our business objective provide the best quality of t-shirts and to satisfy

their needs which will help our country to earn more money and help our

economy grow, and to rendered the services they needed that some companies

unable to compile.

11
FINDINGS AND CONCLUSIONS OF THE STUDY

Market Study

There are two relevant questions that cover in this aspect. The first one is

if there is a demand for the product and if the marketing tools effectively meet the

demand. In order to come up for the answers of those questions mentioned

above, the proponents need to study through surveys the issues of the market

size, location, segmentation, characteristics and growth and most especially the

demand and supply situation. After the proponents need the survey, it is

discovered that there is a percentage of customers that are unsatisfied with the

service of their current supplier and they are willing to transfer to other supplier

who can give them the best offer.

Technical Study

The VUICO t-shirt printing will be located in Tupas St., Brgy. Suba, Cebu

City. It is said to be the best location for the business for it is accessible in terms

of transportation needs.

Financial Study

The study requires the preparation of a number of financial statements

with its supporting notes. The financial statements were stated clearly based on

the assumptions and projections made.

12
Socio- Economic Study

Profit is a primary focus in building up a business. But aside from that, the

proponents also consider the welfare of the social environment where it is

belong. It is assured that the business is environmental friendly and will caused

no harm to the people. The proponents are optimistic enough that the business

will be more progressive for the coming years in which the government will

generate income through taxation. Through the taxes, the government can

increase their funds for their project implementations.

Management Study

Management is the basic source of power and authority of the business.

The management seeks a goal and permit authority. It performs various functions

in accordance with the policies of the organization out of which they develop the

goals of their work force.

13
MARKET FEASIBILITY

Market study can provide a “reality check” on your idea. It can also define
a product development to ensure its appeal for the costumer. It is involved in
collecting information about a potential market that can be used in deciding on
how a product or services should be designed, delivered, priced and marketed.

This would determine the description of the industry, current market


analysis, competition, anticipated future market potential, potential buyers and
source of resources and sales projections.

Market analysis is considered as the most integral part in making a project


feasibility studies. It is an entrance that needs to pass through by neophyte
businessman. It would surely help to create a business plan in launching a new
product or services or to make existing products and services more marketable
and expanding it into designated market. As a result, it could be helpful enough
to determine which portion of the population use or avail the said product or
service.

Market strategies are results of a careful market analysis. The market


analysis is the one that pushes the entrepreneur to familiarize the all aspects of
the market in order to define the target market and the establishment can be
positioned in order to garner its share of sales. Market analysis also enables the
entrepreneur to establish the pricing, distribution and promotional strategies that
will allow the establishment to become profitable within a competitive
environment. In addition, it provides an indication of the growth potential within
the industry, and this will allow the entrepreneurs to develop their own estimates
for the future of their business.

14
Market analysis is the eye that sees information about the size, nature and
the growth of the total demand of the certain product or service as well. In
connection to this, there can be no discussion of profitability or other aspects of
the project feasibility study if there is no demand at all. Thus, it is very essential
that the market analysis be given the first consideration.

In order to ascertain the demand of the chosen project, the proponents


used the survey method in gathering data for its proposed business in our target
market in the organizations inside University of Cebu through visiting it’s their
organization office and surveying.

In this aspect, the proponents gave their insights about the following:

 Project Description
 Demand
 Historical Demand
 Projected Demand
 Supply
 Historical Supply
 Projected Supply
 Industry Analysis
 S.W.O.T of Printed Shirt Industry
 Market Analysis
 Marketing Strategy
 Product Strategy
 Pricing Strategy
 Competitors’ and VUICO’s Pricing
 Promotion Strategy
 Place Strategy
 Survey Questionnaire

15
PRODUCT DESCRIPTION

A. Name of the Product

VUICO is the name of the proposed business. The company name does

not give an idea to the customer on what the proposed business really offer,

however VUICO will be printed on all shirts that came from it. It is based on the

initial letters of the family names of each partner. It is a way of branding the

company.

This project aims to further introduce high quality of prints on shirts to market

industry.

B. Properties of the Product

Clothing is one of the components of the human basic needs – Abraham

Maslow. Through time, the clothing has made appealing to the wearer so as the

wearer can gain a confidence upon wearing it. Nowadays, people attach

emotions on shirt they are wearing; it has a quote, personal name, a name of a

group they are with, an abstract image describes them and a character they

idolized to be printed on it. Therefore, the proponent gains an idea thru this; a

plain shirt customized with customers’ design printed on it.

The proposed business makes sure that the materials use is hypo-

allergenic to avoid simple to serious allergies and illnesses that the wearer could

get.

16
C. USES AND USERS OF THE PRODUCT

Shirts have the same benefits with all other shirts, but printed shirts added

more benefits to the wearer. The proponents make sure that the brand VUICO

will add more benefits in terms of quality they can trust and the brand that they

will surely proud.

Printed shirts will be used accordingly:

 As a uniform in Schools with logo printed on it

 As an organizational uniform with their Organization’s name on it

 As a uniform shirt for their reunions – clans, surname or batch printed on it

 As uniform for bikers, athletes, gym brothers, basketball team and etc.

 As a shirt for their fiestas – e. g Sinulog and Sitio’s patron fiestas

 As uniforms for some events like Christmas party

 As a campaign shirt for politicians during election period

 As uniforms for public and private institutions

 As uniforms for brotherhood institutions

 As a souvenir for tourist

17
D. Geographical Areas of Dispersion

The proposed business aims to supply colleges in University of Cebu,

local citizens of Barangay SubaPoblacion (Suba San Nicolas) and Barangay

Pasil on the first six (6) months upon realizing the business. The further years,

proposed business aims to supply the city and other provinces of Cebu City.

18
Population of the Primary Target Market from the Year 2014 to 2019

Students’ Population of University of Cebu, Main Campus

1st SEMESTER 2ND SEMESTER


YEAR
(a) (b)
2014-2015 16,512 14,278
2015-2016 18,151 16,235
2016-2017 14,780 13,624
2017-2018 13,360 12,565
2018-2019 15,397 13,550

No. of Organizations inside University of Cebu, Main Campus that Gathered

(There are some organizations inside the campus that the proponents

weren’t gathered)

1. JFINEX 19. PICE


2. JMEX 20. SOA
3. JPMAP 21. SBO
4. JPIA 22. SAMAFIL
5. CEBEC 22. PROEM
6. AWS 23. OSG
7. LAKANDIWA 24. PSCAS
8. CHORUS 25. STUDENT DEVELOPMENT TEAM
9. CAMPUS MINISTRY 26. PSME
10. RRG 27. PSITS
11. UCCP 28. FLAIR BARTENDING
12. UCTA 29. SOCIETY OF JUNIOR HOTELIERS
13. UCAAI 30. JPSME
14. FG 30. JJWAP UC CHAPTER
15. IIEE 31. USSSO
16. SSI 32. JPSUE
17. IFEED
18. CUS

19
After determining the total population of our target market, the proponents select
20 of them to be the respondents for our proposed project.

Name of the Respondents

1. PSITS
2. JPMAP
3. FLAIR BARTENDING
4. SOCIETY OF JUNIOR HOTELIERS
5. PSCAS
6. PICE
7. JPSME
8. UCCP
9. JPIA
10. STUDENT DEVELOPMENT TEAM
11. JJWAP UC CHAPTER
12. USSSO
13. SSI
14. IFEED
15. CUS
16. JPSUE
17. SBO
18. AWS
19. JFINEX
20. CEBEC

20
DEMAND

Demand is referring to the consumers’ willingness to purchase goods and

services and be able to pay a price for a specific goods and services. There are

factors that affect the demand, such increasing the price of goods or services,

income levels, the consumers taste and preferences, the competition, and trend.

However, there are factors that influencing the demand either, price increase of

related products, such groups’ influence, media advertisements, secondhand

experience s and recommendation of the consumers.

The demand on shirt printing gathered is the actual from the year 2018. The

respondents’ willingness and ability to buy a printed shirt was added by an

influence as with the occasion they are celebrating and as they are compulsorily

required to buy.

Proponents have taken advantage to the two (2) factors influencing the demand,

for with that, the increase of the demand will be based significantly to the

increase of population of the chosen market. There is less increase of population

of the chosen market yearly, however, there other factors influencing the demand

that could be used too.

21
SURVEY RESULTS AND INTERPRETATION

The proponents conducted survey to 20 organizations of University of

Cebu, Main Campus to get the necessary data regarding on the proposed

business.

Results of Survey Questionnaire

Q1. Does your organization conduct a selling of printed shirts?

Pie 1

0%, 0%
YES
NO
100%, 100%

Pie no.1 shows that all of the 20 respondents said yes that they conducted a

selling of printed shirts which is equivalent to 100%.

Q2. What type of shirt do you prefer?

Pie 2

25%
Polo Shirt
T-shirt
75%

22
Graph no. 2 shows that out 20 respondents, 15 preferred T-shirt and 5 preferred

Polo shirt which is equivalent to 75% and 25% respectively.

Q3. What modes of payment do you prefer?

Pie 3

0%
Full cash
50% down payment
100%

Pie no. 3 shows that all of the 20 respondents preferred the 50% down payment

as a modes of payment which is equivalent to 100%

Q4. How did you get your printed shirts ordered?

Pie 4

30% Pick-up
Delivery
70%

Pie no. 4 shows that out of 20 respondents, 14 said that they get their ordered

printed shirts by Pick-up and 6 said that they get their ordered printed shirts by

Delivery which is equivalent to 70% and 30% respectively.

23
Q5. Are you satisfied with your previous supplier?

Pie 5

30%
YES
NO
70%

Pie no. 5 shows that out of 20 respondents, 14 said yes and 6 said no that they

are satisfied with their previous supplier which is equivalent to 70% and 30%

respectively.

Q8. Would you like VUICO to be your next supplier?

Pie 6

0%
YES
NO

100%

Pie no. 6 shows that all of the 20 respondents said yes that they would like

VUICO to be their next supplier of printed shirts which is equivalent to 100%.

24
HISTORICAL DEMAND

It is necessary for the proponents to know the historical demand for it will
help in determining the projected demand and the certainty of business
profitability.

During the survey, the proponents asked the respondents from different

public markets within our target market about the historical demand of dressed

chicken based on their own estimation and their own experiences for the past

five years which is from 2015-2019. It is also necessary to determine the

increase of organization conducting a selling of printed shirts on target market for

the past five years.

The result of the research shown as follow:

25
TABLE 1

HISTORICAL DATA

Number of
Year Respondents Additional Orders Actual Volume
(Q6) [2x]
2015 20 3 23
2016 20 5 25
2017 20 7 27
2018 20 10 30
2019 20 15 35

*Number of Additional Orders (Q6) on the table was based on the survey

questionnaire number 6.

The table shows that in the year 2015, there are three organizations conducted a

Selling of Printed Shirts, five organizations in the year 2016, seven organizations

in the year 2017, and eight organizations in the year of 2018 and 2019 twice in a

school year.

26
TABLE 2

HISTORICAL DEMAND FOR THE PAST FIVE YEARS (2014-2018)

TABLE 2.1 – Year 2015

Volume of
No of printed printed
No. of Actual
shirts per Percentage shirts
respondents Volume
year Demand
per year
100 and
7 35% 8.05 805
below
200 4 20% 4.60 920
300 4 20% 4.60 1,380
400 1 5% 1.15 460
500 - - - -
600 - - - -
700 2 10% 2.30 1,610
800 2 10% 2.30 1,840
900 - - - -
1000 and
- - - -
above
TOTAL 20 100% 23 7,015

27
TABLE 2.2 – Year 2016

Volume of
No of printed printed
No. of Actual
shirts per Percentage shirts
respondents Volume
year Demand
per year
100 and
3 15% 3.75 375
below
200 - - - -
300 5 25% 6.25 1,875
400 2 10% 2.50 1,000
500 - - - -
600 5 25% 6.25 3,750
700 - - - -
800 2 10% 2.50 2,000
900 - - - -
1000 and
3 15% 3.75 3,750
above
TOTAL 20 100% 25 12,750

28
TABLE 2.3 – Year 2017

Volume of
No of printed printed
No. of Actual
shirts per Percentage shirts
respondents Volume
year Demand
per year
100 and
5 25% 5.40 540
below
200 3 15% 4.05 810
300 1 5% 1.35 405
400 1 5% 1.35 540
500 - - - -
600 4 20% 5.40 3,240
700 1 5% 1.35 945
800 3 15% 4.05 3,240
900 - - - -
1000 and
3 10% 3.50 4,050
above
TOTAL 20 100% 27 13,770

29
TABLE 2.4 – Year 2018

Volume of
No of printed printed
No. of Actual
shirts per Percentage shirts
respondents Volume
year Demand
per year
100 and
1 5% 1.50 150
below
200 2 10% 3.00 600
300 4 20% 6.00 1,800
400 2 10% 3.00 1,200
500 3 15% 4.50 2,250
600 - - - -
700 3 15% 4.50 3,150
800 2 10% 3.00 2,400
900 2 10% 3.00 2,700
1000 and
1 5% 1.50 1,500
above
TOTAL 20 100% 30.00 15,750

30
TABLE 2.5 – Year 2019

Volume of
No of printed printed
No. of Actual
shirts per Percentage shirts
respondents Volume
year Demand
per year
100 and
4 20% 7.00 700
below
200 2 10% 3.50 700
300 3 15% 5.25 1,575
400 - - - -
500 3 15% 5.25 2,625
600 - - - -
700 1 5% 1.75 1,225
800 2 10% 3.50 2,800
900 2 10% 3.50 3,150
1000 and
3 15% 5.25 5,250
above
TOTAL 20 100% 35 18,025

31
Projected Demand
Demand is the desire to own anything and the ability to pay for it and
willingness to pay. The term demand signifies the ability or the willingness to buy
a particular commodity at a given point of time. Demand is also defined
elsewhere as a measure of preferences that is weighted by income.

Having determined the historical demand of dressed chicken, projected


demand can now be computed by adding the average increase of demand in
dressed chicken per year to the previous demand of each year.

Computations are shown in the next table.

32
PROJECTED DEMAND FOR THE YEAR 2020-2024

Get the difference between the first year and the last year.

Actual demand for the last year 18,025

Demand for the first year 7,015

Difference (increase/decrease) 11,010

Get the average increase/ decrease by dividing the results of the

computation in step one by the number of years.

11,010/5 years = 2,202

Computation of the projected demand.

Projected Demand
Projected Years

2020 2019 = 18,025 + 2202 20,227


2021 2020 = 20,227 + 2202 22,429
2022 2021 = 24,631 + 2202 24,631
2023 2022 = 26,833 + 2202 26,833
2024 2023 = 29,035 + 2202 29,035

33
TABLE 4

PROJECTED DEMAND PER TYPE OF SHIRT


Projected Demand
Year Projected Year 75% T-shirt
25% Polo shirt

(75%) 15,170.25
2019 20,227
(25%) 5,056.75

(75%) 16,821.75
2020 22,429
(25%) 5,607.25
(75%) 18,473.25
2021 24,631
(25%) 6,157.75
(75%) 20,124.75
2022 26,833
(25%) 6,708.25
(75%) 21,776.25
2023 29,035
(25%) 7,258.75

34
Supply

Supply refers to the varying amounts of good that producers will supply at

different prices; in general; a higher price yields a greater supply. It is the volume

of goods available in the market that supplies the customer's demand. In

economics, supply is the amount of some product which will be available to

customers. Usually, supply is plotted as a supply curve showing the relationship

of price to the amount of product businesses are willing to sell. It is a good thing

to have demand. However, demand would not materialize into sales if the firm

does not have a capacity to produce them.

Supply of printed shirts of the target market has been met the demand

because the printed shirts supplied were based on the printed shirts demanded,

however, some respondents are not satisfied with their previous suppliers.

Businessmen should identify the on-going competition happened in their selected

target market and that should be their top priority.

It has been studied that VUICO has several competitors in the area. Based

on the proponents’ survey, 70% (14/20) of the 20 respondents are not satisfied

with their previous suppliers of printed shirts.

35
Historical Supply

According to the proponents’ survey on printed shirts, the data gathered

shows that the historical supply has met the organizations’ printed shirts

demanded. However, some of the respondents are not satisfied with their

previous suppliers and are willing to transfer to the other supplier of printed

shirts. The respondents’ response with survey question that they would like to try

VUICO to be their next supplier of printed shirts.

The present suppliers of the target market has been gathered from the

respondents and it shows that ALTERNATIV is the most demanded of printed

shirts provider.

36
Table 5

HISTORICAL SUPPLY FOR THE PAST FIVE YEARS

Supply Satisfaction
Year Actual Demanded
Satisfied (30%) Unsatisfied (70%)
2014 7015 2105 4911
2015 12750 3825 8925
2016 13770 4131 9639
2017 15750 4725 11025
2018 18025 5408 12618

37
PROJECTED SUPPLY

After determining the historical supply of printed shirts the projected


supply can now be computed by getting the difference between the first year and
last year of the unsatisfied consumers.

Computations are shown in the next table.

Table 6

PROJECTED SUPPLY FOR THE YEAR 2020-2024

Get the difference between the first year and the last year.

Actual unsatisfied supply for the last year 12,618

Unsatisfied supply for the first year 4,911

Difference (increase/decrease) 7,707

Get the average increase/ decrease by dividing the results of the

computation in step one by the number of years.

7,707/5 years = 1,541

38
Table 7

Computation of the Projected Supply.

Projected Years Projected Supply

2020 2019 = 12,618 + 1541 14,159


2021 2020 = 14,159 + 1541 16,060
2022 2021 = 16,060 + 1541 17,601
2023 2022 = 17,601 + 1541 19,142
2024 2023 = 19,142 + 1541 20,683

39
Historical Demand and Supply Analysis

The Law of Demand and Supply rests on human needs and wants. A need
is a felt lack of something that people consider necessary and desirable.

In economics, supply and demand describe market relation between


prospective sellers and buyers of a good. The supply and demand model
determines price and quantity sold in a market. This model is fundamental in
microeconomic analysis, and is used as a foundation for other economic model
and theories. It predicts that in a competitive market, price will function to
equalize the quantity demanded by consumers, and the quantity supplied by
producers resulting in an economic equilibrium of price and quantity. The model
incorporates other factors changing equilibrium as a shift of demand and/or
supply. In comparing demand and supply, as what we have observed, if there is
an increase in demand there should be an increase in supply.

Demand-supply analysis is an important criterion to be considered. In the


data gathered, demand for dressed chicken exceeds the supply. Therefore,
VUICO has a positive inclination to start the business and has great chances
because there is still unsatisfied market that could be supplied. As shown in the
graph provided the unserved portion both in the historical and forecasted data.

40
INDUSTRY ANALYSIS

The industry of shirt printing in Cebu City is lucrative and fast-growing

field. In fact, previous study on demand says that the market is still growing. This

is the reason why this is one of the recommended to start a business here in the

country. One thing great about shirt printing business opportunity is it is so easy

to learn and operate. It is an affordable opportunity for everyone who wants a fast

return of investment and proven to generate income right away.

Studying the industry of the shirt printing business can help the

proponents to indentify the competitors, competitions and suppliers. The leading

competitors are identified thru the conducted survey of the respondents. Thus,

identifying them are one of the strength and opportunity of the proponents to

pursue the study.

The proponents must identify the Strength and Opportunity to grow in this

industry and also the Weakness and Threats that the market condition has.

41
Illustration of T-shirt Printing Industry:

NEW ENTRANT:
VUICO

DIRECT COMPETITORS:
ALTERNATIV
ArtTeestic
SUPPLIER: NYPD CUSTOMERS:
Yalex Transfer it UNIVERSITY OF
Cebu Artshop CEBU
Qualitee BRGY. SUBA AND
RedTees PASIL
CrazYEddie

SUBSTITUTE:
Branded Shirts

42
S.W.O.T. of Printed Shirt Industry

4P’s STRENGHT WEAKNESS OPPORTUNITY THREATS

PRODUCT Environmental Less Shift on Limitation


friendly awareness customer Emerge of
Hypo- Level of Attractive competitors
allergenic consumer branding
Easy-to-make New-to-the- Export quality
Unique design market Price

PRICE Affordable Fluctuation of Competitive Increase


Prices of Raw price cost of
Materials production

PLACE In Cebu City Acceptability Population Limited


Located near growth distribution
target market

PROMOTION Branding on Cost and Free Marketing Limited


shirt Effectiveness on Branding budget
Internet of promotion Organic growth
promotion of followers in
Social Media

43
MARKET ANALYSIS

After the research had been conducted, the proponents had gain the

better perspective and better understanding of the market and/or target

audiences to ensure that the proposed business stays ahead in the competition.

This is very important because this helps the business to save itself from

potential loss. The company must determine the certain factors affecting the

market because demand and supply exist.

The factors affecting the market are population growth, income changes,

trends, prices of the related and substitute products and such marketing tools as

advertising, promotions, credit policy. The prices may be affected by production

cost, price controls, inflations and etc.

After determining the factors affecting the market, the company must draw

a marketing plan to allow the business to be proactive and aligned with the firm’s

vision and goals. Marketing plan is summarized easier with the use of 4 P’s of

marketing mix. This must analyze the internal and external factors that could

break the firm’s success towards its goal.

44
MARKETING STRATEGY

This marketing strategy would answer the certain factors that affecting the

demand. A marketing program is a coordinated and well-designed set of

activities to achieve the marketing objective. This enables the company to grow

and be on the top of the competition. The proponents must see to it that

marketing programs would not just add cost but would add profit as well.

The success of the enterprise depends on the effectiveness of its marketing

program, this includes the identification of the target market, selling price, the

design of the product and the distribution network. With the use of the 4P’s of

marketing mix, drawing of marketing program will be that much easy, however,

the company must design the marketing organization which will implement the

plan and determine the cost involved.

PRODUCT STRATEGY

Aside from the competition of price and quality, the proposed business

should always monitor the trends that would help the product to be more

updated. The proposed business, if necessary, they must have the suggestion

approach to the customer on better design and color combination to be used.

45
PRICING STRATEGY:

Pricing is the only aspect in marketing that generates revenue. However,

the other Ps of marketing will contribute to decreasing price elasticity and so

enable price increases to drive greater revenue and profits.

Price is one of the winning factors in the competition of t-shirt printing

industry. Pricing in this business has many factors to be considered; such color

combinations, numbers of colors should be the same numbers of the silk screen,

and colors of shirts.

The materials to be used in the product will be purchased in wholesale for

it lower the cost per shirt and paint.

Considering that the customer will buy in many amounts so the break-down of

prices will be the following:

MATERIAL PRICE CAPACITY


T-shirt (WHITE) P90.00 / piece
Silk-screen P200.00 / color
Adhesive P180.00 1,000 pc. of shirt
Paint P160.00 / kilo 300 pc. of shirt

T-shirt priced as P90.00, this is the average price of all sizes of the T-shirt

the supplier has, for the proponents can offer a uniform price regardless of the

sizes.

46
Computation for 100 pieces with 3 colors: (white shirt)

Material Computation EACH COST


T-shirt 90*100 9,000.00
Silkscreen (200.00*3) 600.00
Adhesive [(180/1000)*100] 18.00
Paint [(160*3)/(300*3)]*100 53.33
TOTAL COST 9,671.33
COST PER PIECE TC/100 96.71

Computation for selling price of 100 piece of shirt with 3 colors:(white shirt)

COST PER PIECE 96.71

COMMISSION 18.00

TOTAL 114.71

MARK UP 40% 47.08

SELLING PRICE PER PIECE 160.00(rounded)

47
Competitors’ Pricelist:

COMPETITOR PRICE
ALTERNATIV 180.00
ArtTeesTic 200.00-300.00
Qualitee 150.00-350.00
Transfer it 230.00
Cebu Artshop 180.00
RedTees 180.00
CrazYEddie 180.00
NYPD 180.00

The competitors and their prices are identified thru the conducted survey

of the respondents. The price indicated in the table is based on the respondents’

answers; regardless of the number of pieces and colors and size of the design.

According to the proponents’ survey, ALTERNATIV is the most chosen supplier

among the other, and the sequence of the list is based on the numbers of

respondents’ chosen supplier.

48
VUICOS’s Pricelist:

No. of
3 colors 5 colors
Pieces

185 235
Below 100
170 220
100-200
160 210
200-above

The pricelist is based on the numbers of shirts and number of colors in an

average size of design which will consume 1 frame per color. The exact prices

may vary on every design and colors of shirt.

49
PROMOTION STRATEGY

The promotion strategy in marketing mix is used to inform or persuade the

target audiences of the relative merits of a product, service, brand or issue. The

proponents will take advantage of the technology in advertising the proposed

business, Social Media like Facebook, Twitter, Instagram and Youtube are the

most commonly used nowadays. The representative who answered the interview

in behalf of their organization is using social media, and all them has Facebook

account, however not all of them have Twitter and Instagram account. The

proposed business, aside from Facebook, Twitter and Instagram account, will

have the Youtube channel where the proponents can post a video to show the

target audiences the type of shirt printing to be used and the quality of the print

and shirt. A short clip for every limited edition shirt that the proposed business

will sell, Sinulog shirt for an example, will be post too. Aside from posting it thru

social media, the logo of the proposed business will be printed to all shirts

coming from it.

These type promotions will increase the number of target audiences, create

interest and brand loyalty, and help to generate sales.

50
PLACE STRATEGY

The proposed business is located at Tupas St., Suba, Cebu City. In

marketing, aside from the price and quality, the factor that could influence the

customer to buy is the accessibility of the store; the nearer the more chances that

the customer will buy. The place of the proposed business is in and near of the

target market set by the proponents.

The first six month of the proposed business aims to supply the radius of 5

kilometers from the store.

Inside the radius of the geographical target have many schools, churches, private

and public institutions, and thousands of population that would visit during

Sinulog.

51
Another used of Place in marketing mix is the movement of the products; it is

how your product is bought and where it is bought. The movement could be

through a combination of intermediaries such distributors, wholesalers and

retailers.

The movement of the product will be in this illustration below:

VUICO

ORGANIZATIONS /
CHAPELS

Survey Questions
CONSUMERS

52
KEYS SUCCESS FACTOR

Quotation

The customers will get some benefits or some advantages- the lesser design on

shirt, the less the price they will pay and the more orders they have, still the

lesser payment will be.

Down Payment

Based on the survey, most of the customers prefer to give full payment at the

time order than providing 50% down payment. Our company will allow to receive

full payment which most of the competitors usually don’t.

Delivery

As a result of the survey, majority of the customers prefer to pick up than orders

rather than being delivered. However, our company still offer a free delivery on

their orders to provide customer satisfaction and great experience and to attract

more customers. Also one of the reasons is to have a repeat-business.

Customer Service

To ensure that our company are providing the best customer service, we will

provide appropriate training to our employees and will equip them with the exact

benefits for them to be able to function well and for them to have the desire to do

their task effectively and efficiently.

53
Respondents:

We are students of University of Cebu and presently conducting a feasibility

study of shirt printing business. Our company name is VUICO. We are

respectfully requesting for your answers in the following items below to be able to

gather the necessary information we need for our research.

Name of Organization: _______________________

Instruction: Kindly put a check ( ) on the blanks and spaces provided after

each question or specify your answer if necessary.

1. Does your organization conduct a selling of printed shirts?

__ YES ___ NO

2. What type of shirt do you prefer?

__ Polo Shirt __ T-shirt

3. What modes of payment do you prefer?

__ Full cash __ 50% down payment

4. How did you get your printed shirts ordered?

__ Pick up __ Delivery

5. Are you satisfied with your previous supplier?

__ YES __ NO

54
HISTORICAL DATA:

DEMAND

6. How many times your organization conducted a selling of printed shirts for the

past five years?

Year 1x 2x 3x

2014

2015

2016

2017

2018

7. How many volumes of printed shirts your organization demanded for the past five

years?

100 1,000

Year and 200 300 400 500 600 700 800 900 and

below up

2014

2015

2016

2017

2018

55
8. Would you like to try VUICO to be your next supplier of printed shirts?

__ YES __ NO

56
Management Aspect

Management is very crucial for a business to grow. It defines as designing

and maintaining an internal environment in which people working together in

groups who can perform effectively and efficiently towards the attainment of

group’s objective. The progress of business firm depends on how well it utilizes

its capital, natural resources, technology and human resources. Such proper

utilization of resources will produce quality services and products. This can be

through proper management of the whole operating hours.

Management During Pre-Operation

The proponents conducted several studies before choosing and operating

the business to make sure if it will play well in the market industry. The

management had gone through several and studies on all the necessary

expenses. Market research was conducted to test consumer’s acceptance of the

product and to develop data for raising schedule and prices. In addition, market

research able to sought the possible demand and profit that can be generated.

The location was given importance as well since it will directly affect the chosen

business. Lastly, the securing of all necessary permits and licenses needed

before starting and operating the business.

57
BUSINESS TYPE

The proposed business is a merchandising type of business. The

business purchases finished products in a wholesale or in bulk from a distributor

or directly to the manufacturers and customized it with prints to make available

for the customers. The business in selling requires also in a minimum order so as

the cost of sales will be reduced and made affordable to the customers. But, with

the marketing plan will be implemented with new machine that could give the

customers satisfaction and be available in small quantities or in personal-use.

LEGAL STRUCTURE

The legal structure of our business is partnership. Partneship is said to be

a mere agreement of two or more persons to contribute money, property or

industry to engage them into business. Partners’ agreements should be stated in

the Article of Partnership.

We chose this structure of business because it is easy to form and we

believe that by combining our expertise, we will attain better management. We

can also raise a bigger amount of capital compared to sole proprietorship.

58
LOGO

VUICO comes from the initials of the family names of each partner. The simplicity

and elegant of the logo will create an impression to the target audiences.

59
ORGANIZATIONAL CHART

MANAGER

SALES
ARTIST
REPRESENTATIVE/CASHIER

2 PRODUCTION WORKERS

60
LABOR REQUIREMENTS

VUICO has 5 employees comprising of a Manager, an Artist, 2 Production

Workers and a Sales Representative/Cashier. The company has also to

outsource Bookkeeper.

MANPOWER QUALIFICATIONS

Manager

A graduate of any 4 year business related course.

With at least 6 months of working experience as manager

Have a good command in English both written and oral.

21-35 years old.

Artist

Must process a Bachelor’s Degree in Graphic Design.

With or without experience. rvision

20-35 years old.

Willing to work overtime with less supervision.

2 Production Workers

At least High School graduate.

18 years old and above (Male).

Flexible and willing to work overtime.

61
Sales Representative/Cashier

At least High School graduate.

With pleasing personality.

With or without experience, willing to be trained.

Male or Female, 20-35 years old.

Outsource Bookkeeper

Graduate of 4 years business and accounting related course

With pleasing personality.

With experience in bookkeeping

Male or female, 20-38 years old

DUTIES and RESPONSIBILITIES

Manager

 Responsible for the whole organization and the business operation

and responsible for these following functions

 Must see to it in carrying out or handling the day-to-day operations

of the business.

 Must plan out various developments for maximum profitability of the

business.

 Must render wise decisions for the changes and improvements of

the business operations.

 Must assure to every customer that they can produce quality

products they needed.

62
Artist

 He is responsible for the designs. He makes the designs of the

shirts for each company and organizations.

Production workers

 They are responsible for printing the designs from computer to the

screen-printing machine and responsible for applying the paint on

the shirts. They deal with the whole process of producing the best

paint and ensuring the quality.

Sales representative/Cashier

 He/She is responsible for taking orders of the walk-in customers,

and is responsible for marketing and delivery of information of the

business.

Outsource Bookkeeper

 He/She is responsible for all accounting & bookkeeping aspects of

the business.

63
GROSS SALARY and GOVERNMENT & MANDATORY BENEFITS

Manager
 13,500 per month
 SSS
 PHIC
 HDMF
 13th Month Pay

Artist
 11,000 per month
 SSS
 PHIC
 HDMF
 13th Month Pay

2 Production Workers
 386 per day or 10,036 per month
 SSS
 PHIC
 HDMF
 13th Month Pay

Sales Representative/Cashier
 11,000 per month
 SSS
 PHIC
 HDMF
 13th Month Pay

Outsourced Bookkeeper
 8,000 per month

64
OTHER BENEFITS

 Incentives of 3 pesos per shirt sold for the Manager, Sales Representative

and the Production Workers while 6 pesos per shirt sold for the Artist.

 Incentives will be given every after the full payment made of the orders

made by the customers.

 5 Days - Vacation leave

 5 Days - Sick leave

 3 Days- Bereavement Leave

 5,000 Christmas bonus each of the employees

65
EMPLOYEES WORKING HOURS SCHEDULE

 Office hours starts at 9:00 AM- 6:00 PM

 All employees are required to rendered service 8 hours a day

 All employees have a the same working schedule which is the

office hours of 9:00 AM- 6:00 PM

 Employees are entitled of 1-hour lunch break and 15 minutes

coffee break in the afternoon.

EMPLOYEES WORKING SCHEDULES

WORKING SCHEDULES
Employees Mon Tue Wed Thu Fri Sat sun

9 AM- 9 AM- 9 AM- 9 AM- 9 AM- 9 AM-


Manager Rest Day
6 PM 6 PM 6 PM 6 PM 6 PM 6 PM

9 AM- 9 AM- 9 AM- 9 AM- 9 AM- 9 AM-


Artist Rest Day
6 PM 6 PM 6 PM 6 PM 6 PM 6 PM

Production 9 AM- 9 AM- 9 AM- 9 AM- 9 AM- 9 AM-


Rest Day
Workers 6 PM 6 PM 6 PM 6 PM 6 PM 6 PM

Sales
9 AM- 9 AM- 9 AM- 9 AM- 9 AM- 9 AM-
Representative Rest day
6 PM 6 PM 6 PM 6 PM 6 PM 6 PM
/ Cashier

66
RULES and REGULATIONS

1. Coming at work under the influence of liquor or prohibited drugs.

2. Bringing liquor and cigarettes inside the store is strictly prohibited.

3. No smoking inside the office and production area.

4. Do not bring deadly weapons.

5. No sleeping while on duty.

6. Theft of business’ property regardless of monetary value.

7. Losing of business’ important records causing prejudice to the business.

8. Leaving the working premises during working hours without a valid reason and

permission from the manager.

9. Outsiders (except customers including his accompanied person) are not allowed

to stand by inside the store by management.

10. Observe cleanliness and orderliness inside the store.

11. Machineries and Equipment should be cleaned after using.

12. Proper disposal of garbage are strictly mandated.

13. Proper usage of water and electricity should be regulated.

14. Employees are not allowed to do gambling activities inside the store.

15. Proper clothing of the employees must be observed.

67
Recruitment and Selection Process

The process of selection program for workers is as follows:

Screening:

First procedure. The company will scan the entire resume passed by all the

aspiring workers. This will help the company to select applicants according to

their background and personal information written in the application form.

Preliminary interview:

Second procedure. In this process, the company will call all the applicants they

think fit to the job vacancies. They will check all the information written if it is

correct and reliable thru asking the applicants.

Mental test:

During the preliminary interview. This will help the company to know if the

following applicants is literate and in good condition. And it will give them idea on

how they will handle some incidents that are unexpected.

Background check:

Third procedure. This is very important step in recruiting and selecting workers

because this will give assurance to the company that the applicants is a good

citizen and he do not have any criminal violations in the past.

68
Final interview:

Forth procedure. After checking all the necessary information, the company will

do a final interview to the applicants who passed the first processes. This will

assure the applicants that they are in process and under consideration of the

company.

Legal requirements:

Final procedure. In this process, the applicants must secure and pass all the

important documents that the company requires.

Physical and mental examinations:

Together with the legal requirements, the applicants will now undergo medical to

test their physical fitness and medical condition. This will give assurance to the

company that the applicant are in good health and not medically ill.

Applicants who will fail in any if the steps in the process in recruiting and

selecting workers will be rejected. On the other hand, after passing all the steps

in recruiting and selecting workers, the company will hire the applicants made it

up to the last step.

69
APPRAISAL

The proposed business will conduct an evaluation on contractual

employees in which the manager evaluates their performance; this evaluation will

be the basis for the increase of their salary and for their regularization. The

regular employees will undergo an evaluation thru the manager either; the result

of the evaluation will be given to the regular employees indicating the level of

their performance areas of improvement and salary increase.

The following factors that the company will consider:

1. A manager and employee shall hold formal appraisal meetings at least

twice a year. The objectives of appraisal meetings are:

 To set and review the company’s vision, mission and sales

forecast.

 To establish improvement actions, training needs and career

developments.

2. Employees should be given immediate and adequate feedback regarding

their performance. The manager and supervisor should maintain a record

of critical incident specific situation, task, action and result negative and

positive.

3. Manager is accountable for evaluating performance in developing their

subordinates. The performance appraisal system shall encourage the

employees’ participation in the company.

70
TECHNICAL ASPECT

Project Feasibility would never be complete without the technical aspect. It

simply comprises some parts of the feasibility study like the materials, methods

and processes, labor, plant lay-out, machineries, equipment, etc. Technical

aspect serves as the logistical or tactical plan of the business in managing the

production cost in order to attain the desired maximum output.

THE PRODUCT

Printed shirt is the product of the proposed business. It is a plain shirt

customized with high quality of print of customers’ chosen design. The design is

exclusively for the clients and can’t be used for other clients even if they insisted

to copy it.

Nowadays, there are lots of processes in shirt printing, however the proposed

business will use the silk-screen printing. Silk-screen printing has the most

quality type of print among other processes, and applied with rubberized paint.

71
PRODUCT PROCESS

Creating the design

Creating the design is the most difficult step in the process if the customer

does not have a design or concept of the design yet. The artist and the customer

will have bind of mind upon creating the design.

Transferring the design to the computer

The artist will use the Illustator application on the computer to draw the

design. The color of the design will be segregated here and will have an own

screen.

Printing the design

From the computer, the design will be printed on the Digital silkscreen

maker. The silkscreen should be attached to the wooden frame tightly before

printing so that the design will not be blurry.

Applying the paint

After the design has been printed, install the silkscreen frame to the

printing table, the production worker will now apply first the table adhesive to the

printing table so that the shirt would not move once the paint is applied with the

used of the squeegee

72
Drying

After each color has been applied, it will be dry by the used of hot blower.

Storing

After all the color of the design has been applied, the shirt will be stored

with a room temperature. This process is the total drying of the paint on the shirt.

It will take a day to fully drying of paint.

Quality check

This process is checking the quality of all the finished shirts and

scrutinizing the paint if it is totally dried.

Packaging and Delivering

After the shirts have been checked, it will now be packed for delivery.

73
PRODUCT PROCESS

Creating the
design

Transferring the
design to the
computer

Printing the
design

Applying the
paint

Drying

Storing

Quality check

Packaging and
Delivering

74
TRANSACTION PROCESS

Quotation

The quotation will be served to the customer to enjoy by them by having a

lower price than the company’s pricelist.

Down payment

The business will offer 50% down payment, and other 50% will be on time

when the customers received their orders.

Product processing

The product will be now on the process. This will take time depending on

the volume of the orders. However, the proposed business has the complete

technology to make the process quickly as it should.

Delivery

The delivery of the product will be on time. The business must have a

delivery schedule to minimize and eliminate the delay of the delivery.

Full payment

The 50% receivable from the customer will now be collected upon the

delivery of the finished product.

75
FLOWCHART

WALK-IN

76
INCOMING CALL

77
BUSINESS EXACT LOCATION

The proposed is located at Bonnie and Jane Bldg. at Tupas St.,

BrgySuba, Cebu City.

When considering the a new business, it is important to consider if there is

sufficient access to resources, however the business location has a direct

connection to source of utilities on the city; utilities such electricity, telecom, and

water is cheaper.

78
PLANT LAYOUT

79
MACHINERY AND EQUIPMENTS

Amount/
Item Qty. Supplier Total
Unit

NGL computer
Computer Set 2sets 18,000 36,000.00
trading

Silk-screen
1pc Printext 80,000 80,000.00
printing machine

Mantilla
Printing table 1pc Machinery 4,000 4,000.00
shop

NGL Computer
Printer 1pc 5000 5,000.00
Trading

Wall fan 4pcs Unitop 600 2,400.00

Fire extinguisher 1pc Alarma 1,600 1,600.00

Total Cost 129,000.00

80
SUPPLIES AND MATERIALS

Amount
Item Qty Supplier Total
per unit

People’s
1 box 5.00 per
Ballpen Educational 100.00
(20 pcs) piece
Supply

People’s
Pencil 5 pcs Educational 5.00 25.00
Supply

People’s
Stapler 1pc Educational 35.00 35.00
Supply

People’s
Staple Wire 1box Educational 35.00 35.00
Supply

People’s
Ruler 1pc Educational 75.00 75.00
Supply

People’s
Bond paper 2Reams Educational 575.00 1150.00
Supply

People’s
Puncher 1pc Educational 45.00 45.00
Supply

People’s
Fastener 100pcs Educational 0.50 50.00
Supply

81
Amount
Item Qty Supplier Total
per unit
People’s
Scissor 1pc Educational 25 25.00
Supply
People’s
clip 1000pcs Educational 2 2,000.00
Supply
People’s
Tape 5pcs Educational 25 125.00
Supply
People’s
Log book 1pc Educational 90 90.00
Supply
People’s
Garbage bag 20pcs Educational 5 100.00
Supply
Broom 1pc Unitop 35 35.00
Dustpan 1pc Unitop 40 40.00
Feather duster 1pc Unitop 35 35.00
Rag 5pcs Unitop 15 75.00

People’s
Squeegee 4pcs Educational 75 300.00
Supply

People’s
Calculator 1pc Educational 160 160.00
Supply

Total Cost 4,500.00

82
T-shirts and Other Materials

Amount
Item Qty Supplier Total
per unit
Paint 35pcs Sublimation 160.00/kilo 5,600.00
XS = 79
S = 83
30pcs M = 86
Shirt Yalex 15,990
per size L = 90
XL = 95
XXL = 100
XS = 130
S = 140
M = 150
30 pcs L = 155
Polo Shirt Colored Yalex 27,150.00
per size XL = 160
XXL = 170

XS = 115
S = 117
M = 120
30 pcs
Polo Shirt Plain Yalex L = 127 22,770.00
per size
XL = 135
XXL = 145

Table Adhesive 1pc Sublimation 180.00 180.000

Banzon
Silk-screen 5 rolls Printing 50.00 250.00
Supplies
People’s
Frame 8pcs Educational 250.00 2,000.00
Supply
Total Cost 73,940.00

83
DELIVERY EQUIPMENT

Amount per
Item Quantity Supplier Total
unit
Delivery
1pc Surplus 60,000.00 60,000.00
multicab

FURNITURES & FIXTURES

Item Quantity Supplier Amount per Total


unit
Office Table 2pcs Sungold 2,500.00 5,000.00

Monoblock 6 Sungold 1,200.00 7,200.00


Chairs

Couch 1pc Sungold 1,600.00 1,600.00

Filing Cabinet 1pc Sungold 3,000.00 3,000.00

Total Cost 16,800.00

84
UTILITIES

DESCRIPTION MONTHLY SOURCES

Electricity Depends on consumption VECO

Water Depends on consumption MCWD

1,299.00 for internet and


Internet and telephone telephone bills depends on GLOBE
consumption

LEASED SPACE FOR OFFICE & STORE

Bonnie and Jane


Rental 12,000.00
Building

85
ESTIMATED INVESTMENT COST

Leasehold Improvement 12,500.00

Delivery Equipment 60,000.00

Machineries and Equipment 129,000.00

Furniture and Fixtures 16,800.00

Supplies and Materials 4,500.00

Purchases 73, 930.00

Advance Rental & Deposit 24,000.00

Organization Cost 28,500.00

Opening of Bank Account 10,760.00

TOTAL 360,000.00

86
BUSINESS REGISTRATION

Every business that is planned to have, it is needed to register it first to the

designated government agencies in order to make it all a legal and to avoid

technical problems with the government agencies.

Securities and Exchange Commission

As a partnership type of business, it is primarily required to register the

planned business to the Securities and Exchange Commission in order to have a

Certificate of Registration together with the Articles of Partnership and By-Laws.

Cebu City Hall

The business must go through of securing business permit from the

Cityhall. Before having the final permit, the business should secure first other

pre-requisites clearances and permits from the other government agencies such

as Cityhealth for Sanitary Permit, Bureau of Fire Protection for Fire Safety

certificate, Barangay Suba for Brgy. Clearance, etc.

Bureau of Internal Revenue

After paying Mayor’s permit at the Cityhall, the business must register also

to BIR to have the company’s TIN and to have an Official Receipt be printed after

the Certificate of Registration from BIR is issued.

87
SSS, PHILHEALTH and PAG-BIG/HDMF

After Registration in SEC, paying business taxes in Cityhall and done

registered in BIR, the business also required to register its company to SSS,

PHIC and PAG-IBIG. This is in order for the employees to remit their monthly

contribution to these government agencies through their employer which is the

“VUICO” company.

88
FEASIBILITY ASPECT

Financial study is an assessment of the financial aspects for starting and

running a business. It considers many things including start-up capital and

corresponding sources, potentials return of investment, expenses, revenues, and

etc. Thus, these could be shown by preparing the statements and schedules on

the profits expected to be realized.

Cost sacrifice is always present in the world of business. The

businessmen need to invest capital and services without the assurance that the

profitability of the entity will realize or not. Generally, profitability is a measure of

the net income as a percentage of sales.

89
MAJOR ASSUMPTIONS:

1. The form of the proposed business is a General Partnership that

composes of five partners namely Lionel Ompad, Mary Cris Jane Indoy,

Grace Corita, Willy Jane Villafranca, ReyhanArifUy.

2. The business normal operation will start at January 8, 2020 and will adopt

the calendar year of accounting period and for the succeeding operations

and its store hours starts at 9:00 AM- 6: PM.

3. That the business is registered as Non-Vatable.

4. Each partner will invest 72,000.00 for the realization of the proposed

business and it’s up to them where to get their investment to finance the

business.

5. Profit and Losses of the business operation will be divided equally among

the partners.

6. That the business will employ a Manager, an Artist, a Sales

Representative/Cashier, 2 Production Staffs and 1 Outsource

Bookkeeper.

7. That the Manager will be the male partner and will receive a salary of

13,500 per month and will increase of 500 every year.

8. That the Artist will receive a monthly salary of 11,000 and subject to 3%

increase every year.

9. That the Sales Representative/Cashier will receive a monthly salary of

11,000 and subject to 3% increase every year.

90
10. That the Production Staff will receive starting salary of 386 per day or

10,036 per month and subject to 2% increase every year.

11. That the Bookkeeping of the business is done by the outsource

bookkeeper and will receive monthly retainers fee of 8,000 and subject to

250 increase every year.

12. That if the company has a request of Delivery, it will be done by one of the

production staffs.

13. That the delivery is free of charged within the City area.

14. That all of the employees except the Artist will receive 3 pesos

incentive/commission in each t-shirt sold and not subject for w/holding tax.

15. That the Artist will receive 6 pesos incentive in each t-shirt sold and not

subject for any w/holding tax.

16. That the incentives for the 1st year is computed as (No. of shirt sold in a

year x 18 pesos as incentive for 6 employees= Total incentives for the

year) and will increase 10% every year.

17. That it is assumed that the employees have no absences.

18. That the business will operate 26 days in a month (Monsay thru Saturday

and the Sunday is a Rest day)

19. It is assumed that in a quarter, Vuico can sell 2,300 pcs of T-shirts and will

increase in the next years in percentage based on the total amount of the

projected income. (Pls. see Assumption No. 21)

20. That in 2,300 pcs sold in each quarter, 60% of this is 3-color price range

and the other 40% is 5-color price range.

91
21. That in 60% of 3-color price range, 25% of it is under Below 100 pieces of

orders, 25% under 100-200 and remaining 50% is under 200-above

pieces range.

22. That in 40% of 5-color price range, 30% of it is under Below 100 pieces of

orders, 30% under 100-150 and remaining 40% is under 200-above

pieces range.

23. That the sales will increase 10% every year based on the 1st year total

sales and subject for 3% Percentage Tax as per BIR Tax Regulation.

24. That the projected sales per quarter is multiplied into 4 (as 4 quarters in a

year) in order to come up with the total sales in a year and get the accrued

percentage tax of each year.

25. That the projected income per year is calculated this way (2,300 total pcs

sold in a quarter x 4 quarters in a year = total income in a year).

26. That the drawings of each partner are 10,000 in the first year and will

increase of 10,000 every year

27. The business assumed that 90% of their cash is in the bank and 10%

remaining is on hand.

28. Employees are assumed to have cash advances balance in the year end

amounting to 7,000 in the 1st year and will increase to 5% in the following

years.

29. Cost of Sales of the business is assumed to be within 60-65% of the

Gross Sales every year.

92
30. That the cost of sales will increase every year due to increase of the direct

materials’ price.

31. Gross Profit Rate is within 0.40-0.45.

32. Unused Supplies & Materials is 5% of the Supplies & Materials every year.

33. The business has 1-monthSecurity Rental Deposit and 1-month Advance

Rental and the monthly rental is 12,000 excluding utilities, Non-Vatable

and subject for 5% w/holding tax.

34. The business is assumed to have Leasehold Improvements in the first

year of operation amounting to 12,500.00and additional improvement of

15,000 during 3rd year of business operation.

35. It is assumed that Delivery Equipment, Machineries &Equipments,

Furniture & Fixtures are acquired during January 1, 2020 and have 6

years estimated useful life including Leasehold Improvements.

36. That on the 27th of December year 2024, the company will have additional

acquisition of Machineries & Equipment and Furnitures&Fixtures

amounting of 30,800 and 5,500 respectively.

37. Utilities Expense is 4% of the Gross Income every year. 50% for cost of

Service & 50% for Operating Expense.

38. Communication Expense is 0.8% of the Gross Income every year.

39. Office Supplies is 0.4% of the Gross Income every year.

40. Supplies & Materials is 20% of the Gross Income and will increase 2%

every after 3 years

41. Housekeeping Materials is 0.2% of the Gross Income every year.

93
42. Gasoline Expense is 1% of the Gross Income every year & directly charge

to cost of service.

43. Representation Expense is 4,500 per year.

44. Miscellaneous Expense is 3,000 per year

45. Taxes, Licenses and Fees of 13, 250 is part of the organization cost for for

the 1styear and will increase of 0.5% every year excluding the Sec

Registration, BIR Registration& Percentage Taxes.

46. Repairs & Maintenance of the Machineries & Equipment and Delivery

Equipment will be experienced by the company in the 3rd year and

beyond of the business and the amount is 5% of the Gross Income.

47. 50% of Salaries and Wages is charge to Cost of Service and other 50% is

charge to Operating Expenses.

48. That the Auditing Fee of the business is 15,000 every year, Non-Vatable

and subject for 10% w/holding tax.

49. That all employees have complete government benefits of SSS,

PHILHEALTH AND HDMF and the contributions are based on its latest

table.

50. Income tax rate is 30% of the taxable income as per BIR.

94
ESTIMATED INVESTMENT COST

Leasehold Improvement 12,500.00

Delivery Equipment 60,000.00

Machineries and Equipment 129,000.00

Furniture and Fixtures 16,800.00

Supplies and Materials 4,500.00

Purchases 73, 930.00

Advance Rental & Deposit 24,000.00

Organization Cost 28,500.00

Opening of Bank Account 10,760.00

TOTAL 360,000.00

95