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I. SUMMARY OF THE PROJECT

Nowadays, its really hard to think what business to establish because it seems that

everything is being already offered in the market by different entrepreneurs. Though its hard tothink of what business to introduce, the company realized that creating a business is not aboutcreating a new product but it can also be finding of what supply doesnt equate its dema nd, andmake an answer for it. Printing business has a high consumer demand in the market but there is nosufficient numbers of printing shops that can accommodate the number of consumers that causesdelays of the production. Therefore the company decided to establish a printing business to catchthat market.

A. NAME OF THE FIRM

The name of the company is Colour Counts. The word Colour is from the chiefly Britishvariation of Color. The word Counts means that they (buyer) can trust or depend on the goodquality of all the items we are selling.

B. LOCATION OF THE BUSINESS

Colour Counts is proposed to be located at the A. Regidor Street, San Pablo City Shopping Mall

Stall #6 near the Water District Bayad Center. The owners have secured this location through rentingthe stall. It has a total area of 30 square meters.

C. DESCRIPTION OF THE PROJECT

The company provides other services fundamentally focused on personalizing various stuff suchas corporate giveaways and stamping of shirt and sportswear. Its not only prints the designs but also


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creates and lay outs outstanding products to meet the clients needs and demand. It first offered printing services in corporate giveaways such as personalized tumblers and button pins. In additionto this, it also made a reputation in high quality shirt stamping/printing because of their uniquedesigns and superb quality.

Colour Counts owners are not only focused on profits but are more concerned in providinghigh quality of service to gain more clients and to maintain their loyalty and retention. It has well-rounded staff members who make sure that every client who walks in its stores go out with smile andcontentment on their faces. Every staff member is oriented with competent knowledge and skillswith regard s to the companys products and services. They are acquainted with everything they haveto know. In addition to this, they have excellent customer relation skills.

II . MANAGEMENT ASPECTS

A. MISSION

Colour Counts believes in offering outstanding quality of products and services determined

to satisfy every clients need. It does its utmost effort to ensure clients loyalty and retention.

VISION

Colour Counts will be a known business here in San Pablo City offering high quality printed products that suites to the needs of different people.

B. GOALS

To offer high quality products and good services with an affordable prices. Its aim is to be on top and grab the first spot in the printing industry. It is into the business of making profits, providing a good product or service which is not being

produced currently.

OBJECTIVES

To be competitive and consistent in providing good quality and service in various social classes. To have a harmonious relationship to the customers while providing good products and

satisfactory services.


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C. LEGAL STRUCTURE AND OWNERSHIP

The company will be considered as a general partnership. Three persons own the business jointly and share profits and losses of the business as spelled out in the partnership agreement. Eachof the owners is potentially responsible for the full amount of all liabilities of the business.

D. ORGANIZATIONAL CHART

Functions and Responsibilities

Owners

The owners control the resources and expenditures of the business. They are in charge ofoverall operations. They are also in-charge in making and planning the strategic plan of the business,responsible for the marketing strategy of the company, and also for the financial statements of thecompany and computing the asset and liability of the business and in balancing all the expenses ofthe business.

Designer/Cashier

The cashiers are required to have the capability to handle money promptly and precisely, thatincludes receiving money from customers and returning the appropriate change. He is also thedesigner of the product.

Tailor

The tailor is responsible to makes, repairs, or alters clothing professionally.

OWNERS

Designer/Cashier Tailor


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E. SKILLS/QUALIFICATION

The employees should be at least high school graduate with pleasing personality, honest andresponsible. They should also orient with competent knowledge and skills with regards to thecompanys products and services and should have customer relation skills.

III . MARKETING ASPECTS

Respondents

Due to a large number of people that may become the possible customers, the researchersconduct a survey and we got at least 100 respondents from San Pablo. Respondents were identifiedafter they have shown interest in buying in Colour Counts.

Market No. of RespondentsWorking People 60Students 40Total: 100

A. DEMAND STUDY

Ages Total

15 to 25 26 to 35 36 &

aboveHave you imprinting T-shirt? Yes 44 26 26 96

No 4 0 0 4Do you buy Sportswear? Yes 34 18 22 74

No 14 8 4 26Do you buy Giveaways such as ButtonPins and Tumblers?

Yes 34 20 26 80 No 14 6 0 20

When we put up a printing business,are you going to buy from us?

Yes 40 26 26 92 No 8 0 0 8

If YES, how often?

Once a week 0 0 0 0Once a month 12 8 4 24

Once a year 4 4 0 83 to 4 times amonth

0 0 4 4

4 to 5 times ormore often

24 14 18 56

Never 8 0 0 8


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The result shows that almost of the 100 respondents said that they will willing to buy ColourCounts products, this result imply that there is a big fraction that our products will be viable to thetarget markets.

Demand

The proponents chose to establish a printing business due to its increasing demand. Lots of peoplewould like to purchase printed T-shirt to 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 T- shirt. People also purchase Sportswear for someevents in their company or in school. And they also buy giveaways for gifts in an occasion like birthdays.

Every year the estimated number of population in San Pablo increase based on the gathered data on NSO is 3,877. Based on the increasing rate of population, it was projected that in the next 5 years, populationwill still continue to rise, thereby creating more demand for printing products.

TARGET MARKET

Colour Counts will have a broad target market specifically, the general public. People of allages, children through adults will be included in the target market. This product is not a high priceditem and, as a result, it will be available to nearly all people regardless of varying incomes. Localsand residents from nearby cities in San Pablo City, with varying ages and differing income levels, itwill all be included in the target market of Colour Counts.

0

50000

100000

150000

200000

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

Population of Local Residents andStudents of San Pablo City

Local Residents

Students


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DemographicsAge

15 to 25 years old 26 to 35 years old 36 and above

Monthly Income Php 500 to Php 1,000 Php 1,000 to Php 2,000 Php 2,000 to Php 3,000 Php 3,000 and above

MARKET SEGMENTATION

Colour Counts will focus two significant customer groups: Students: A significant number of students prefer to shop at high quality

products. These students are a strong customer base for Color Counts. Local Residents: Colour Counts will provide superb quality products to

people residing in San Pablo City.

60%

40%

Market Segmentation

Local Residents

Students


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This is the estimated Supply for products based on our study. It shows that the number of pieces that produce and sell monthly is high and they also have a higher income monthly. This study indicates thatColour Counts has a chance to meet a high demand from consumer and also a high income.

0

50

100

150

200

Produce (pcs.) Sales (pcs.) Income(thousand)

Kostom 145 145 3.625

House of Art 200 200 4

Button Pin

0

20

40

60

80

100

Produce (pcs.) Sales (pcs.) Income(thousand)

Kostom 95 95 9.5

House of Art 80 80 7.6

Tumbler


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C. COMPETITIVE ANALYSIS

Sales Forecast

PRODUCTS PRICE NO. OF PIECES MONTHLY SALEST-Shirt Php. 225.00 200 Php. 45,000.00Tumbler Php.120.00 (Big)

Php. 90.00 (Small)70

1008,400.009,000.00

Button Pin Php.12.00 200 3,000.00Sportswear Php. 450.00 100 45,000.00

TOTAL Php. 110,400.00

Criteria ColourCounts

Kostom P. Jordan AlidiosSportswear

House of Art

Type of

Establishment

Stall Stall Stall Stall Stall

Location S.P.C. Proper S.P.C. Proper S.P.C. Proper S.P.C. Proper S.P.C. Proper

Products Printed T-shirt,

sportswear,Giveaways

such astumbler andButton Pins

Printed T-shirt,

sportswear,Giveaways

such astumbler andButton Pins

Sportswear Sportswear Printed T-shirt

Price/Value Prices basedon costs ofsuperbquality

materials

Based on the brand of the business

Based on thecost of the products

Based on thecost of the products

Based on thecompetitorsrate

TargetedDemographic

Workers andStudents,

People fromall walks of

life

People froman walks of

life


life


life


life


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D. MARKETING PROGRAM

Product Strategy

Colour Counts will offer to its customer the fast and beautiful printed products with the use of adigital printing. The Printed T-shirts, Sportswear, Giveaways like Button Pins and Tumbler will be producedwith a short period of time.

Packaging Strategy

Colour Counts business will serve the product with paper bags or boxes.

Pricing Strategy

The printed products price will be in the moderate range and comparable to othercompetitors. The price will be determined by not only what the going rate in the area is, but also bythe percentage of actual cost of the products. The products of Colour Counts are affordable. The

price is based on the materials that will be use in printing. And customers will have the bestsatisfaction with an assurance of high-quality products.

Place Strategy

Colour Counts is a stall business. It will be located at A. Regidor Street, San Pablo CityShopping Mall Stall #6 near the Water District Bayad Center. It can be easily located by thecustomers and the business can create a wide customers build-up.

Promotion Strategy

Colour Counts will have connections to their customers through social media such as facebook,twitter and instagram so it can announce the promotion of its products. It can also be advertise its

products to passers-by through passing of coupons and also by having sample products place in themirror of the store as its introductory strategy.

People Strategy

Colour Counts will be hiring at least three (3) employees to operate the business. The owners will be responsible for managing the business and the employees will be the one who produce or makethe products.


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Positioning Strategy

High Quality

Low Price

Low Quality

Colour Counts as a new business will position itself into the high quality/low price quadrant(shown above). Colour Counts contain premium quality materials that are enough to be classifies asa high quality. It will sure be affordable for having a low price compared to the competitors.

As illustrated above, the direct competitor is House of Art that was positioned just beneathColour Counts in the low price/high quality quadrant. The price of House of Art was quite lower but,

based on quality, Colour Counts is still higher. It was also shown above the other direct competitorslike Focus and Alidios Sportswear was positi oned into the low price/low quality quadrant.Compared to the high quality that Colour Counts can provide they are considered with a lowerquality.

Indirect Competitors such as Aivandale, Kostom and P. Jordan are placed into the high price/high quality quadrant for its well known products with quite higher prices.

High Price

Colour Counts

Kostom

P. Jordan

House of Art

Art Camp

Orsis

Aivandale

Focus

Alidios Sportswear


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IV. TECHNICAL ASPECTS

A. PRODUCT

Colour Counts is using digital printing to produce product. Below is the specific descriptionof our product.

Products Description

Printed T-Shirt

This can be an enjoyable project thats what ColourCounts all about. We take your t-shirt printing design ideasand then into customized t-shirt for your teams, school,company, groups and clubs.

Water Tumbler

A flat-bottomed cup for drinking made a plastic orglass. The grade school student usually has a tumbler whenthey go to school with the different character or designoutside. The teenager usually use tumbler as a gift to

his/her friend with the pi cture, its called personalizedtumbler.

Button Pin

This is made by back stainless, laminating film, plastic backing and pin. Button pin has much shape like heart,square and circle, but Colour counts offer only a circle

button pin. This usually seen on the student bag and ID

lace. It also serve as a giveaway in the party, souvenir inthe place you done, and as the group remembrance.


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Jersey

This is a plain weft-knitted fabric made of wool,cotton, nylon, rayon, or silk and used especially forclothing with sleeves or less sleeves.

It use as a uniform of the player of basketball,volleyball and other personal purposes. It usually seen onintrams and particularly every summer league.

B. MANUFACTURING PROCESS

Process Flowchart

Printed T-shirt

Creating your design

Transferring the design to the computer

Cut the design

Printing the design using heat press

Drying

Checking of shirts

Packaging


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Button Pin

Tumbler

Description of Process

1. Creating the Design

This is the first step in producing our product. The design must first be done and drafted forthe next step to continue. In this step, the consumers must agree with the design being suggested or

pass his personal design. The colors to be used must also enumerate.

Creating the design

Print the design

Cut the design

Put inside the glassof the tumler

Creating your design

Printing your design

Cut out into circles

Put into heat press machine First, put the perdible to the back stainless Second, put the graphics you cut into circles Third, put the plastic backing

Fourth, put the laminating film Lastly, press the heat press to become button

pin.


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Php.45,000.00/month * 12months = Php.540,000.00/year

BUTTON PIN

200pcs./month * Php.15.00 = Php.3,000.00/month Php.3,000.00/month * 12months = Php.36,000.00/year

TOTAL SALES per year = Php.1,324,800.00

Schedule 2.SALARIES

**3 employees

Php.7,650.00/month * 3 employees = Php.22,950.00/month Php.22,950.00/year * 12 months = Php.275,400.00/year

**Withholding Tax Php.22,950.00/month * 10% = Php.2,295.00 Php.22950 - Php.2,295 = Php.20,655.00 Php.20,655.00 * 12 months = Php.247,860.00

Schedule 3.RENT

Php.12,000.00/month * 12 months = Php.144,000.00

Schedule 4.SUPPLIES

Raw Materials

**Cloth

Php.44,300/mo. * 12mos.= Php.531,600.00/yr.

**Transfer Paper

Php.8,000.00/mo. * 12mos.= Php.96,000.00/yr.

**Blank Button Pin

Php.2,000.00/mo. * 12mos.= Php.12,000.00/yr.

**Others

Php.3,950.00/mo. * 12mos.= Php.47,400.00/yr.

TOTAL = Php.687,000.00/year


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Printer

1 7,795.00 7,795.00

Button Press

2 ---------- ----------

Heat Press2 ---------- ----------

High Speed Sewing Machine

2 25,000.00 50,000.00

Edging Machine

1 15,000.00 15,000.00


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Total: Php.3,950.00

Cleaning Equipments:

Materials Quantity Price per piece Total amounts

Trash can 2 Php.100.00 Php.200.00Broom 1 35.00 35.00Dust pan 1 30.00 30.00Mop 1 50.00 50.00Rug 9 15.00 135.00

Total: Php.450.00

*If the Machines and Equipments of Colour Counts need to repair, the available repairservice is located in Amico Printing in Lucena.E. PLANT LAYOUT AND PLANT LOCATION

PROSPECTIVE VIEW


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Labor Price3 Laborer Php. 10,000.00

TOTAL Php. 10,000.00

G. RAW MATERIALS

Materials Quantity Unit cost Total amount

Button pin materials 4 packs Php.50.00 Php. 200.00Shiny fabric 25 yards 230 .00 5,750.00Square net cloth 25 yards 290 .00 7,25000Lining 5 yards 30.00 150.00Cotton 100 90.00 9,000.00Rubber Vinyl 350.00 350.00

Transfer Paper 100 pcs. 40.00 4000.00Thread 2 rolls (big) 25.00 50.00Ink Jet 1 Cartridge (Big) 1,500.00 1,500.00

Total: Php. 29,050.00

*The materials for button pin you need are a back stainless, laminating film, plastic backingand pin.

* You need the rubber vinyl and transfer paper when you print design into the t- shirt. And

when you make a jersey you need the shiny, square net, some of cotton and also the yarn.

*When you make a tumbler you will need button pin. In printed t-shirt, it is available inAmico printing in Lucena. In our materials in jersey, we avail this in Lipa Market or in DivisoriaMarket. Colour Counts materials will continuously supply by our suppliers.

**UTILITIES

Electricity

The entire area of San Pablo City is provided by Manila Electric Company (MERALCO).This will also be the source of electricity of Colour Counts in case of power loss and they havegenerator to sustain the electricity.

Internet Connection


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The internet connection will be provided by the Globe Telecom and also we avail a Wi-Ficonnection.

Monthly Expenditures

Electricity Php. 1,484.13

Internet Php.1,000.00TOTAL Php.2,484.13

H. WASTE DISPOSAL

There will be a business implementation of proper disposal with the Colour counts vicinity.The garbage of Colour Counts will be put in plastic bags. The waste disposal will be managed bySan Pablo City garbage contractor every Tuesday and Friday afternoon.

V. FINANCIAL ASPECTS

**DEPRECIATION

MACHINES Quantity Amount Total Amount UsefulLife

Depreciate Valu

High speed Sewing Machine 2 Php. 25,000.00 Php. 50,000.00 10 Php. 5,000.0Computer 1 9,000.00 9,000.00 15 600Printer 1 7,795.00 7,795.00 15 516Edging Machine 1 15,000.00 15,000.00 10 1,500.Embroidery Machine 1 12,500.00 12,500.00 10 1,250.

TOTAL Php.94,295.00 Php. 8,869.67

Furniture andFixture

Quantity

Amount Total Amount UsefulLife

Depreciate Value

Table 1 Php. 800.00 Php. 800.00 5 Php. 160.00Wall Fan 2 550.00 1,100.00 5 220.00Cabinet 1 400.00 400.00 5 80.00Exhaust Fan 1 828.00 828.00 5 165.60Monoblocks 7 150.00 1,050.00 5 210.00Hanger Stand 2 250.00 500.00 5 100.00Calculator 1 500.00 500.00 5 100.00


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TOTAL Php.5,178.00 Php. 1,035.60

Renovation Php. 28,290.00 5 Php. 5,658.00

TOTAL DEPRECIATION AMOUNT

MACHINES Php. 8,869.67FURNITURE AND FIXTURE 1,035.60RENOVATION 5,658.00

TOTAL Php. 15,563.27


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A. TOTAL PROJECTED COST

PriceMachineries Php. 94,295.00Raw Materials 29,050.00Furniture and Fixture 5,178.00Office Supplies 3,950.00Utilities 2,484.13Renovation 28,290.00Rent 24,000.00Cleaning Equipment 450.00Monthly Salary 22,950.00Phil. Health and SSS Contribution 500.00Taxes and licenses 1,500.00TOTAL Php. 212,647.13

Assumption: The proponents assume that in rent we will pay 1 month deposit and 1 month advanceand for the utilities it includes the payment for our electricity and internet connection.

B. INITIAL CAPITAL REQUIREMENTS

Our initial capital is Php 300,000.00. It is based on our project cost and we assume that it isenough to finance our project.

C. SOURCES OF FINANCING

Our source of financing will come from the contributions of the owners of Colour Counts.The proponents will be investing in the amount of Php.100,000.00 each. This will cover all expensesof the business and this will be taken from the owners personal saving.


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E. FINANCIAL ANALYSIS1. FINANCIAL RATIO

*Gross Profit Margin = Gross Profit *100%Sales

Year 2015 Year 2016

Gross Profit Margin = Php 639,600.00_ *100% Gross Profit Margin = Php 672,492.00_ *100%Php 1,324,800.00 Php 1,364,544.00Gross Profit Margin = 48.28% Gross Profit Margin = 49.28%

Year 2017 Year 2018Gross Profit Margin = Php. 706,507.80 *100% Gross Profit Margin = Php 741,682.48 *100%

Php 1,405,480.32 Php 1,447,644.73Gross Profit Margin = 50.27% Gross Profit Margin = 51.23%

Year 2019Gross Profit Margin = _Php 778.052.20_*100%

Php 1,491,074.07Gross Profit Margin = 52.18%

*Return on Investment = Annual Net Income *100%Capital Investment

Year 2015 Year 2016

Return on Investment = Php 116,737.02 *100% Return on Investment = Php 139,521.95 *100%Php 300,000.00 Php 300,000.00Return on Investment = 38.91% Return on Investment = 46.51%

Year 2017 Year 2018Return on Investment = Php 163,091.15 *100% Return on Investment = Php 187,469.15 *100%

Php 300,000.00 Php 300,000.00Return on Investment = 54.36% Return on Investment = 62.49%

Year 2019 Return on Investment = Php 212,681.23 *100%

Php 300,000.00Return on Investment = 70.89%


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*Net Profit Margin = Net Income *100%Sales

Year 2015 Year 2016 Net Profit Margin = _Php 116,737.02 _*100% Net Profit Margin = Php 139,521.95 _*100%

Php 1,324,800.00 Php 1,364,544.00 Net Profit Margin = 8.81% Net Profit Margin = 10.22%

Year 2017 Year 2018 Net Profit Margin = Php 163,091.15 _*100% Net Profit Margin = Php 187,469.15 _*100%

Php 1,405,480.32 Php 1,447,644.73 Net Profit Margin = 11.60% Net Profit Margin = 12.95%

Year 2019 Net Profit Margin = Php 212,681.23_ *100%

Php 1,491,074.07

Net Profit Margin = 14.26%

*Fixed Asset Turnover = Sales__Fixed Asset

Year 2015 Year 2016Fixed Asset Turnover = Php 1,324,800.00 Fixed Asset Turnover = Php 1,364,544.00

Php 127,763.00 Php 127,763.00Fixed Asset Turnover = 10.37 Fixed Asset Turnover = 10.68

Year 2017 Year 2018Fixed Asset Turnover = Php 1,405,480.32 Fixed Asset Turnover = Php 1,447,644.73

Php 127,763.00 Php 127,763.00Fixed Asset Turnover= 11.00 Fixed Asset Turnover= 11.33

Year 2019Fixed Asset Turnover= Php 1,491,074.07

Php 127,763.00

Fixed Asset Turnover= 11.67

*PAYBACK PERIOD = Capital Investment _Annual Cash Flow

Payback period = Php. 3200,000.00Php. 244,537.29

Payback period = 1.23Payback period = 1 year and 2 months


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2.Break Even Analysis

We assume that we need to sell 112 pcs. Printed T-shirt, 80 pcs. tumblers (small), 57 pcs.Tumbler (big), 170 pcs. Button Pins and 70 pcs. Sportswear with a total sales of Php.73,065.00. To

break even with the total costs of Php 73,065.00.

VI. SOCIO-ECONOMIC ASPECTS

Employment Generation

The C olour Counts products will help lessen the cause of poverty which is the growingnumbers of unemployed Filipinos by providing job opportunities to the community, most especiallyto the community of San Pablo City. We are going to recruit, employ and train employees for themto perform the jobs needed. We are looking forward to help the city of San Pablo and the

government in maximizing our human resources.

Contribution to the Government

As Filipino citizens, the business owners and business will pay their tax liabilities mandated bythe law. Which is the 30% of the income of the business. It will help the government to generatefunds for the improvement of public service and government projects.

Environment Consideration

All activities that the company will perform are not just about quality check but also forenvironment reasons. We aim to develop and produce product which do not harm the environment.

Our company is aware on their sense of responsibility in serving the communities. We are muchmore focusing on the quality and safety of the product we produce rather than its quantity. The majorgoal of our company is to achieve a good result on what we do.

Date post:	03-Jun-2018
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