Colegeio de San Juan de Letran: College of Business Administration and Accountancy

Colegeio de San Juan de Letran 1
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
A Business Plan presented to the Faculty of the

College of Business Administration and Accountancy
Colegio de San Juan de Letran – Manila
In partial fulfillment of the requirements of the course
For the degree of

Bachelor of Science in Business Administration
Major in Marketing Management
Submitted By:
BUNAG, Monica O.
RAMOS, John Aaron D.
Rabe, RejeanStefhany Rea

ACKNOWLEDGEMENT
BESTEES authors namely Monica Bunag, John Aaron Ramos, and Rejean
Stefhany Rea Rabe gratefully acknowledges the important contributions and
guidance provided by our Business Plan professor, Mr. Leo Barnadas
First of all, we want to thank our parents for the continuous to support and
guidance, without them we cannot make it.
To our friends, thank you for the advices that you have shared to us.
Lastly, to our adviser, Mr. Jeffrey Consignado, thank you for the never-
ending support, for guiding us to make this research, it would have not been
possible for us to make this marketing research without your supervision and
knowledge that you have shared with us.

TABLE OF CONTENTS
Title Page……………………………………………………………………………1
Acknowledgement ……………………………………………………………..... 2
Table of Contents……………………………………………………………………3
I. Executive Summary ………………………………………………...8

A. Type of Business……………………………………………...…8
1. Nature………………………………………………………..8
2. Name………………………………………………………...8
3. Product/Services…………………………………………….8
Figure 3.1 Company Logo ………………………………….9
4. Mission-Vision ……………………………………………...9
B. Management, Marketing, & Financial Highlights……………..10

Table B.1 Partners Contribution …………………….…….10
C. Socio-Economic Contributions……………………………..….11
II. Marketing Plan……………………………………………………..12
A. Product/Service to Sell…………………………………………12
B. Target Market………………………………………………......12
1. Area Coverage……………………………………………..12
Figure B.1 Area Coverage………………………………12
2. Consumer/Customer…………………………………...…..13
Figure B.2.1 Market Segmentatiom…………………… 13
C. Demand and Supply Analysis………………………………….14
1. Total Potential Demand……………………………………14
Table C.1.1 Population for 2017 ………………..…………14
Table C.1.2 Population for 2017……………….…………..15
Table C.1.3 Historical Demand Schedule ……...………….16
Table C.1.4 Total Demand for the next 3 years (UST
Students)……………………………………..…………….18
Table C.1.5 Total Demand for the next 3 years (Brgy. 465,
468, 469 and 470) ………………………………………..19
Table C.1.6 Total Potential Demand for the year 2019 (UST
Students) …………………………………………………..21
Table C.1.7 Total Potential Demand for the year 2019 (Brgy.
465, 468, 469 and 470) …………………………………....22
Table C.1.8 Total Potential Demand for the year 2020 (UST
Students) …...…...................................................................23
Table C.1.9 Total Potential Demand for the year 2020 (Brgy.
465, 468, 469 and 470) ……..……………………..……...24
Table C.1.10 Total Potential Demand for the year 2021
(UST Students)…………………………………………....25
Table C.1.11 Total Potential Demand for the year 2021
(Brgy. 465, 468, 469 and 470) ………………………..….26
Table C.1.12: Projected Demand for the next 3 years
(UST students)……………………………………….....27
2. Present Competition ……………………………………27
Table C.2.1 Competitiors ……………………………...27
Table C.2.2 Historical Supply Schedule for the Past 3
Years …………..……………………………..………...28
Table C.2.3 Projected Supply Schedule for the next 3
years .………...…………………………………….…...28
D. Projected Sales …………..……………………………........29
Table D.1 Projected Deman and Supply Gap ……………...29
E. Marketing Strategies …..……………………………………...29
Figure E.1 BesTees’s Facebook page …….…………………...29
F. Selling Expense ……………………………………………… 30
III. Production/Operations Plan………………………………………..31

A. Technical Production Description……………………………...31
B. Production/Operations Process………………………………...32
1. Step by Step Procedure and Duration ……………………...32
Figure B.1.1 Production Process Flowchart ..............................32
Table B.1.5 Daily Schedule ………………………….……......33
2. Duration per Step per Batch ………………………………..34

Table B.2.1 Step by Step Duration per Unit …….………….…34
Tabel B.2.2 Duration per Batch ……………………………….35
3. Labor and Machine Requirement per Step …………………36
Tabel B.3.1 Labor and Machine Required per Step to Produce
the Product ………… …………………………..…………36
C. Production Schedule……………………………………...……37
1. Monthly Schedule…………………………………………..37
Figure C.1 Production Schedule of the Product Procedure...37
D. Labor Requirement…………………………………………….37
Table D.1 Persons Involved in the Business and their Job
Description …………………………………………………….37
E. Machinery/EquipmentRequirement……………………………38
Table E.1 List of Machinery/Equipment Needed ……………..38
F. Raw Materials Requirement…………………………………...41
Table F.1 List of Raw Materials Needed for BesTees Shirts ....41
G. Plant/Factory Location…………………………………………42
Figure G.1 Plant Location ……………………………………..42
H. Plant Layout……………………………………………………43
Figure H.1 Plant Layout……………………………………….43
I. Waste Disposal System………………………………………...44
Figure I.1 Waste Management Signage Boards of BesTees …..44
J. Quality Control System………………………………………...44
K. Production Cost………………………………………………...45
1. Total Production per Year………………………………….45
Table 3.K.1.1 Total Production per Year ………………….45
2. Production Cost per Unit…………………………………..45
3. Projected Cost Production/Operations………………… .....46
IV. Organizational Plan………………………………………………...47
A. Legal Form of Business………………………………………..47
B. Organization Structure……………………………………...….47
Figure B.1: Organizational Chart ………..…………………….47

C. Qualifications of Officers……………………………………...48
Table C.1: List of Required Officer and Qualifications ………48
D. Off Supplies……………………………………………………49
Table D.1: List of Office Supplies …………………………….49
E. Gantt Chart of Activities……………………………………….51
Table E.1 Charting activities against time…………...…….51
F. Administrative Expense……………………………………..…42
V. Financial Plan……………………...……………………………….53
Table A.1: Product Cost ………………………………………………….53
A. Total Project Cost……………………………………………...44

Table A.1: Product Cost …….……………………………………….53
B. Sources of Financing…………………………………………..53
Table B.1: Partner’s Contributions …………………………. ..53
C. Projected Financial Statement………………………………….54
1. Projected Cash Flow Statement………………………........54
Figure A.1: Projected Cash Flow Statement ………………….54
2. Projected Income Statement……………………..…............55
Figure B.1: Projected Income Statement …………………….….….55
3. Projected Balance Sheet...……………………….................56
Figure C.1: Projected Balance Sheet ……………………………….56
D. Profitability Indices…………………………………………….57
1. ROI…………………………………………………………57
Table C.1: Return of Investment ………………………………57
2. Playback Period……………………………………………57
Table D.1: Payback Period ………………………………….57
3. Net Income : Sales Ratio…………………………………...57
Figure D.1: Net Profit Margin ……………………………………….57
3. Break-even Point…………………………………………...58
Table E.1 Break-even point in units …………….…………….58
E. List of Assumptions Used……………………………………...58
F. Schedules………………………………………………………59
1. Projected Sales…………………………………………………59
Table F.1 Sales Volume in months …………………………...59

2. Projected Sales Volume…………………………………....59
Table G.1: Projected Annual Sales ……………..……………..59
3. Fixed Capital Investment (including depreciation of
equipment and machinery)………………………………....60
3.1 Initial Investment ……………………………………...60
Figure E.1: Initial Capitalization ………………………….60
3.2 Machinery and Equipment ……………………………60
Figure F.1: Machinery and Equipment ……………………60
4. Projected Cost Production/Operation……………………...61
Figure G.1: Operating Expenses …………………………..61
5. Projected Cost of Goods Sold……………………………...62
Figure H.1 Cost of Goods Sold ……………………………62
6. Schedule of Materials Purchases…………………………..62
Table J.1 Material Purchases ……………………………...62
7. Schedule of Taxes…………………………….……..…….63
Figure I.1 Tax Schedule …………………………………..63
Appendix......................................................................................................64
SECTION 1
EXECUTIVE SUMMARY
A. Type of Business
1. Nature of Business
BesTees is a manufacturing clothe industry. The proponents intended to use

raw materials to make a new product. The proponent’s skills, creativity and also
a lot of cloth would be used to make this proposed product possible.
2. Business Name
The proponents have decided to call the business “BesTees”. The business
name came from two words which is “Best” and “Tees”, the proponents came up
with this idea hoping that someday, BesTees will be the best and number 1 brand
the in terms of producing statement tees and also, the name BesTees is a pun
from the millennial slang “besties” which makes the business name catchy and
friendly for the customers.
3. Product
In the present time, printed shirt can be seen almost everywhere. Comfortable
with simple yet stylish designed shirts are being chosen by the consumers. Designs
such as different cartoon characters, funny quotable phrases or a combination for a
shirt has been a trend. The fact that today’s world is considered as a modern world,
a lot of technologies were introduced. The process of transferring a design to a shirt
and making designs to a shirt were made easier.
BesTees is a statement tees, the proponents came up with this product idea
enable to compete with the new trend and the demand of the consumers. Aside from
computer printed shirts intended for only one person, the business proponents also
came up with the idea of having a family tees. The business proponents would like
to take this opportunity to give the consumers and affordable price that anyone can
afford yet a stylish, high quality and originally designed shirts that is comfortable to
wear.
Figure 3.1: Logo of BesTees
Figure 3.1 shows the logo of BesTees. The logo represents the whole
enterprise of the business. The circle means that the business is just like our lives. It
will keep on running whenever what happens. It represents the totality of the
business. Color white represents successful beginnings while the color black
represents strength, seriousness, power, and authority. It shows that the business has
its goals that it will be the best Tees in the market.
Mission – Vision
BesTees aims to build a good relationship to the customers and to be the

leading manufacturing developer in terms of statement shirts. Also, the business
envisions to be the most preferable supplier of many clothing brands.
B. Management, Marketing, & Financial Highlights
Management
The business partnership will be managed by three persons; Ms. Rejean Rabe
will be the Operations Manager responsible for the overall operations and
production of the business. Ms. Monica Bunag will be in charge in the Marketing
aspect of the business in relation to promoting and advertising the product. Mr. John
Aaron Ramos will be under finance managing the cash aspect and expense of the
company.
Marketing
Different platforms will be used in order to market the products that the
company will sell. Social Media will be used for the reason that there are a lot of
active users on the internet who are looking for affordable yet high-quality products
that they can buy for themselves. By using social media, it will be possible for the
company to reach a lot of potential customers that may be interested with the
products that company is offering.
Financial Highlights
Table B.1: Partner’s Contributions
Partner’s Capitalization
Bunag P55,000
Rabe P55,000
Ramos P55,000
Total Capitalization P165,000
As the partners assumed equal distribution of income and losses, the initial capital
needed of P165,000.00 will be divided. The partners will invest P55,000 each to start the
business.
C. Socio-Economic Contributions
The significant contribution in putting up our clothin business is that we can

offer affordable, yet high quality products sold in our store. We can provide
employment to those people who does not afford to enter college which can help
our economy grow. Thus, our business can generate revenue for the city through
payment of the business permits, fines, fees and taxes.
SECTION 2
MARKETING PLAN
A. Product to Sell
BesTees is a company classified under the clothing industry. The company will
sell different kinds of statement shirts where the customers can choose and wear it
confidently and comfortably that suits their preference. The company ensures that
the products will be of high quality thus, providing the company a competitive edge
against other brands.
B. Target Market
1. Area Coverage
Figure B.1: Area Coverage of the BesTees Location
BesTees will be located at 1207 Antonio street Sampaloc Manila. The

proponents would like to get the attention as well as the interest of the students and
residents around barangay 465, 468, 469 and 470 of Sampalo
1. Customer
Table B.2.1: Market Segmentation
Target Market Specific Target Market of BesTees

Indicator
Geographic Residents of Sampaloc, Manila specifically those

students/employees living in barangay 465, 468, 469 and 470.
Financial Capacity Students and Residents whose weekly allowance ranges from Php
Php 250.00 – Php 500.00
Age 15 - 21 years old
Gender All genders
Lifestyle The target market of the proponents are those medium spenders
who loves wearing comfortable yet stylish shirts.
Table B.2.1 shows the segmented target market, Barangay 465, 468, 469 and 470 of
Sampaloc were chosen by the proponents since it is near schools.
C. Demand and Supply Analysis
1. Total Potential Demand

DEMAND ANALYSIS
Table C.1.1: Population for 2017
LOCATION POPULATION TARGET MARKET

(2017) SEGMENT (ACCEPTANCE
RATE)
UST Students 44,000 The proponent got an 87%

acceptance rate within the
target market.
Total Population 44,000 x 87% (Acceptance = 38,280

Rate)
DEMAND ANALYSIS
Table C.1.2: Population for 2017
LOCATION POPULATION TARGET MARKET

(2017) SEGMENT
(ACCEPTANCE RATE)
Barangay Population
Sampaloc city Barangay 465 318
(Barangay 465, 468, The proponent got a 90%

Barangay 468 384
469 and 470) acceptance rate within the
Barangay 469 326 target market.
Barangay 470 412
Total 1,440
Total Population 1,440 x 90% (Acceptance Rate) = 1,296

Table C.1.3: Historical Demand Schedule
YEAR TARGET MARKET SEGMENT ACCEPTANCE TOTAL DEMAND

POPULATION
RATE
(UST STUDENTS)
2015 42,458 87% 36,938
2016 43,222 87% 37,603
2017 44,000 87% 38,280
YEAR TARGET MARKET SEGMENT ACCEPTANCE TOTAL DEMAND

POPULATION
RATE
(Brgy. 465, 468, 469 and 470)
2015 1,390 90% 1,251
2016 1,415 90% 1,274
2017 1,440 90% 1,296

Year Total Demand
2015 38,189
2016 38,877
2017 39,576
TOTAL 116,642
Table C.1.3 shows the segmented target market population of 2015, 2016, and
2017. BesTees focuses on the target market which is the Sampaloc city,
particularly the UST students and the residents on barangay 465, 468, 469 and
470. Using the whole population of Sampaloc from 2015 and the annual growth
rate of 1.8%, it came up with the 2017 population of the area, which was then
multiplied to the acceptance rate of 87% and 90% respectively.
Note:
2018 projected population for UST students = 44,792
2018 projected population for Barangay. 465, 468, 469 and 470 = 1,466
Table C.1.4: TOTAL DEMAND FOR THE NEXT 3 YEARS (UST

students)
Year Population Acceptance Rate Total Demand
2019 45,598 87% 39,670
2020 46,419 87% 40,385
2021 47,255 87% 41,111
TOTAL 121,166
Table C.1.4 shows the total projected demand for the next 3 consecutive year by
computing the current population to the 1.8% growth rate then by multiplying it
with the 87% acceptance rate.

Table C.1.5: TOTAL DEMAND FOR THE NEXT 3 YEARS (Brgy. 465, 468,
469 and 470)
Year Population Acceptance Rate Total Demand
2019 1,492 90% 1,343
2020 1,519 90% 1,367
2021 1,547 90% 1,392
TOTAL 4,102
Table C.1.5 shows the total projected demand for the next 3 consecutive year by
computing the current population to the 1.8% growth rate then by multiplying it
with the 90% acceptance rate.

Year Total Demand
2019 41,013
41,752
2020
2021 52,503
135,268
TOTAL
Table C.1.6: Total Potential Demand for the year 2019 (UST students)
Population Target Market Acceptance Frequency % Total Potential

Segmentation Rate Demand
Population
(89%)
Once a
45,598 40,582 89% month (12) 11% 47,676
Four times a
year (4)
57% 82,349
Twice a
year (2)
20% 14,447
Once a year
(1)
12% 4,334
TOTAL
100 148,806
Table C.1.6 shows the total potential demand for the year 2019 by getting the
89% out of the 45,598 population times the acceptance rate, followed by the
percentage and with a computed frequency.

Table C.1.7: Total Potential Demand for the year 2019 (Brgy. 465, 468, 469 and
470)

Population
(40%)
Once a
1,492 597 90% month (12) 11% 709
Four times a
year (4)
57% 1224
Twice a
year (2)
20% 215
Once a year
(1)
12% 69
TOTAL
100 2,217
percentage and with a computed frequency. TOTAL POTENTIAL DEMAND =
676,130

Population
(89%)
Once a
46,419 41,313 89% month (12) 11% 48,535
Four times a
year (4)
57% 83,833
Twice a
year (2)
20% 14,708
Once a year
(1)
12% 4,412
TOTAL
100 151,488

470)

Population
(40%)
Once a
1,519 608 90% month (12) 11% 722
Four times a
year (4)
57% 1,247
Twice a
year (2)
20% 219
Once a year
(1)
12% 66
TOTAL
100 2,254
percentage and with a computed frequency. TOTAL POTENTIAL DEMAND =
688,107

Population
(89%)
Once a
47,.255 42,057 89% month (12) 11% 49,409
Four times a
year (4)
57% 85,343
Twice a
year (2)
20% 14,972
Once a year
(1)
12% 4,492
TOTAL
100 154,216

470)

Population
(40%)
Once a
1,547 619 90% month (12) 11% 735
Four times a
year (4)
57% 1270
Twice a
year (2)
20% 223
Once a year
(1)
12% 67
TOTAL
100 2295
percentage and with the frequency. TOTAL POTENTIAL DEMAND = 700,499

Table C.1.12: Projected Demand for the next 3 years (UST

students)
YEAR Target Market Target Market ACCEPTANCE ACCEPTANCE

Population (UST) Population (Brgy.) RATE (UST) RATE (Brgy.)
2019 39,670 1,343 89% 90%
2020 40,385 1,367 89% 90%
2021 41,111 1,392 89% 90%
YEAR TOTAL DEMAND TOTAL POTENTIAL DEMAND

2019 41,013 676,130
2020 41,752 688,107
2021 52,503 700,499
Table C.1.12 presents the demand for the next three years. The target market
population is based on the area with an annual growth rate of 1.8% multiplied
with the acceptance rate based on the actual survey while the total demand is
computed by multiplying the target market population by the acceptance rate.
The proponents acquired the total projected demand by multiplying the
acceptance rate to the total demand and to the period of operations.
1. Present Competition
SUPPLY ANALYSIS FOR COMPETITORS
Table C.2.1: Competitors
COMPETITORS NO. OF DAYS OF NO. OF TOTAL

UNITS SOLD OPERATION WEEKS IN
DAILY A YEAR
Uniqlo 40 7 52 14,560
Penshoppe 27 7 52 9,828
Bench 23 7 52 8,372
TOTAL 32,760
Table C.2.2: Historical Supply Schedule for the Past 3 Years
YEAR Uniqlo Penshoppe Bench TOTAL SUPPLY

IN PCS.
2015 13,462 9,087 7,740 30,289
2016 14,000 9,450 8,050 31,500
2017 14,560 9,828 8,372 32,760
TOTAL 94,549
Table C.2.1 and table C.2.2 shows the historical supply schedule for the year
2015, 2016 and 2017, based on the sales of the three competitors. Multiplying
the data of each competitor to the number of weeks they operate to get the
production per year. The proponents managed to obtain the historical supply data
by interviewing the crew members of each store.
Table C.2.3: Projected Supply Schedule for the next 3 years

YEAR Uniqlo Penshoppe Bench TOTAL SUPPLY IN
PCS.
2019 15,748 10,630 9,055 35,433
2020 16,378 11,055 9,417 36,851
2021 17,033 11,497 9,794 38,325
Table C.2.3 shows the projected sales of Uniqlo, Penshoppe and Bench for the
next three years. It was taken from the computed historical supply data of year
2017 using the growth rate of 4%. The proponents got the 4% growth rate by
doing a research and also by asking the crew member of each stor
D. Projected Sales
Table D.1: Projected Demand and Supply Gap

Total
Total Assumed
PROJECTED TOTAL Projected
YEAR Potential Market
SUPPLY GAP Sales
Demand Share
Volumes
2019 151,023 35,433 115,590 3.115% 3,600
153,742 36,851 116,891 6.115%
2020 7,148
156,511 38,325 118,186 9.115%
2021 10,773
Table D.1 shows the demand and supply gap for the next three years. The gap is
acquired by subracting the potential demand to the projected supply. The total
projected sales volume was acquired by multiplying the total gap with the market
share which was assumed and decided by the proponents since it is the most
available number of products that can be produced every year.
E. Marketing Strategies
Figure E.1: BesTees’ Facebook Page
The business proponents decided to promote BesTees through social media

since it is the easiest, cheaper and fastest way to promote the tees. Posting in
social networking sites can be a big help in introducing and promoting the
products since many people are using internet almost every day in their daily
lives.
F. Selling Expenses
Selling Price
TOTAL
TOTAL COST PER MARK PRICING
PRODUCT MARKET
UNIT UP (65%) STRATEGY
PRICE
Cost-based
BesTees 151.50 ₱ 98.48 ₱ 250.00
Pricing Strategy
SECTION 3
OPERATIONAL PLAN
A. Technical Production Description

The technical production aspect of this paper involves the production process of
BesTees, starting from step by step procedure of the product in making the tees, duration of
every step by step per batch, labor, machine and equipment requirement during the
production. Monthly schedule production will also be included in this section, as well as
the location and layout of the plant/factory of the business. This section will also cover the
business management in terms of waste disposal and quality control.
The business plant location will be at 1207 Antonio street Sampaloc Manila which is a
home-based business due to the reason that one of the business proponents is the owner of
the said plant location. The coverage area of the business location is advantageous for
BesTees because it is near to schools and offices. Also, by doing a home-based business
will help the business proponents to lessen the possible expenses like rent expense. Since
BesTees is just a new business, for now, they can only produce a maximum of 15 shirts a
day considering that all materials are complete, and all machineries and equipment have
already been checked by the proponents before doing the procedures for quality control and
in order to avoid defects.
BesTees will operate from Monday to Friday and will open from 10 o’clock in the
morning to 9 o’clock in the evening. In additional, production cost per unit will also be
included in this chapter which will be based on a realistic estimated cost.
B. Production/Operations Process
1. Step by Step Procedure and Duration
1. Edit the image if necessary, with the help of Adobe then choose 30secs
your transfer that you will be using There are 2 types of transfer paper
the dark and the light transfer.
Print the transfer, if needed - choose an image that you like, then 30min
reverse it using an image editing program. print it out on special
transfer paper using an ink jet printer. Make sure that you are printing
on the film side of the paper.
2. Print the transfer, if needed - choose an image that you like, then 1mins
reverse it using an image editing program. print it out on special
transfer paper using an ink jet printer. Make sure that you are printing
on the film side of the paper.
3. Trim the transfer down, if needed- this is only necessary for printed, 30 sec
supplier, and store-bought transfers. When you use the transfer, the
film coating will be printed onto the shirt- including the parts that are
not colored. You will need to trim around your image so that the blank
parts of the film are not transfered.
4. Open the press- lift up the handle to open the press. Move the heat 1min
platen away from the silicone pad. Keep the press open while it heats
up during the next step.
5. Adjust the temperature - Read the instructions on your transfer 30secs

paper to find out what temperature you should be using. Turn the
thermostat knob clockwise. wait for the press to heat up; a light will
flash on. Once the desired temperature is reached, turn the knob
counterclockwise until the light turns off.
6. Adjust the pressure- twist the pressure knob clockwise to increase 30secs
pressure, and counterclockwise to decrease pressure. Place your shirt
onto the plate. Also, place your printed and cut image on the shirts
atleast 2 inches from the collar point.
7. Set the timer - hold down the minute and second buttons to increase 1min
or decrease the times. When you press the start button, the timer will 30secs
start but don't press it yet. Close the press and wait 15 seconds then
open the press again and peel off the paper.
Total 6 mins
Figure B.1.1 Production Process Flowchart
Table B.1.5: Daily Schedule
TIME WORKING SCHEDULE
9:30am - 10:00 am PREPARATION
10:00 am OPENING
10:00 am – 12:00 nn WORKING HOURS
12:00 nn - 1:00 pm BREAK TIME
1:00 pm – 8:45 pm WORKING HOURS
8:45 pm - 9:00 pm Cleaning and Closing of the store.
Table B.1.5 shows the 11½ hours daily working schedule of the employees. The table
shows an hourly basis and should strictly be followed by the employees to maximize
production.
2. Duration per Step per Batch
Table B.2.1: Step by Step Duration per Unit
PROCEDURE DURATION
1. Prepare all the needed materials and plain Shirt 2 minutes
2. Ready the design and print 4 minutes
TOTAL 6 minutes
Table B.2.2: Duration per Batch
PER BATCH NUMBER OF UNITS DURATION
BATCH 1 5 units 30 minutes
TOTAL 15 units 1 hour and 30 minutes
Table B.2.1 shows the step by step duration on how the proponents would prepare the tees
per unit while table B.2.2 shows the duration per batch of the product. The proponents can
produce a maximum of 3 batch a day, which is equivalent to 5 shirts per batch considering
that all materials are complete, and all machineries and equipment have already been
checked by the proponents before doing the procedures for quality control without any
casualties.
3. Labor and Machine Requirement per Step
Table B.3.1: Labor and Machine Required per Step to Produce the Product
LABOR MACHINE
PROCEDURE
 Rabe, Rejean  Plain Shirt

1. Prepare the needed materials
and plain shirt
Stefhany Rea
 Rabe, Rejean  Computer

2. Ready the design and print Stefhany Rea  Ink
 Heat press
Table B.3.1 shows the labor and equipment required upon making the product.
Since BesTees is a new business, the business proponents will be the primary workers in
making the tees.
C. Production Schedule
 Monthly Schedule
January - March April - June

• Planning • Quality Control of
• Selecting of Suppliers Initial Output
July August- December

• Product Sampling and • Business
Testing Implementation
• Finalized Product
Figure C.1: Production Schedule of the Product Procedure
The figure C.1 shows the monthly schedule of the activities in the production schedule in a
year.
D. Labor Requirement
Table D.1: Persons Involved in the Business and their Job Description
Name Position Job Description
 Gathers all the material needed.

 Manager  Maintains the area clean and
orderly.
 Oversees the operation of the
Rejean Stefhany business and makes the product and
Rea Rabe supervise all the production process
of the product.
 Checks the quality of the product.
 Financial Staff  The one that oversees the finances

John Aaron of the business.
Diaz Ramos
 Marketing Staff  Collect sales from the customers.

Nica Bunag  Assists the customers
 Market the product.
Table D.1 shows the person involved in managing the business and making the products.
Since the business proponents has the capability to run the business, they will be the one to
make the products as well as managing the business.
E. Machinery/Equipment Requirement
Table E.1: List of Machinery/Equipment Needed
Picture Machinery/ Description Qty. Price Total

Equipment Price
 Used for
Computer design
layout.
1 P35000 P35000
Cutter  Used to
Plotter cut
designs. 1 P58000 P58000
 Used to
Iron remove
wrinkles
from
fabric. 1 P2900 P2900
 Used to
imprint a
design on 1 P24000 P24000

Heat press a shirt.
 Used to
Printer transfer the
text or
image to the 1 P15000 P15000
dark
transfer
paper.
TOTAL P134900
F. Raw Material Requirement

Table F.1: List of Raw Materials Needed for BesTees Shirts
Picture Raw Materials Description Qty. Price
Plain Tshirt A plain a tshirt is

where the creative 12pcs P1320
design will be
printed this will
be supplied by the
business supplier
black horse.
 Used to
Packaging protect the 100 pcs P60
product from
damage.
 Used to
Dark Transfer transfer 50pcs P1500
Paper images or text
on the shirt.
 A liquid that
Ink contains 200ML P!50
pigments or
dyes that is
used for
printing.
TOTAL P3030
G. Plant Location
Figure G.1
The plant location will be a home-based business that is located at 1207

Antonio St., Sampaloc Manila. The proponents chose this location
because it is very accessible for the buyers and also, it is surrounded by
a lot of schools and offices.
H. Plant Layout
Figure H.1
Figure H.1 shows the plant size which is a 120 square meters house. The first floor will be
the only floor used since we’ll only be using the kitchen as the production area. We’ll be
opening the gate to place the stall and serves as a waiting area for the customers.
I. Waste Disposal System

In accordance with the Waste Segregation Policy, three small trash bins will be placed
inside the stall.
Figure I.1: Waste Management Signage Boards of BesTees
Figure I.1 shows how the proponents will segregate the trash. The proponents will
provide three (3) separate trash bins for each type of waste, one for compost, one for
recycling materials and another one for trash, by this waste management procedure it’ll
help the business to segregate on which items can be thrown, recycled or decomposed
J. Quality Control System
The proponents have decided to take JIT Method as the business quality control
system. This method can be a big advantage to business since its objective is to increase the
inventory turnover and at the same time reduce the inventory holding cost. JIT inventory
system is ideal because it exposes the unwanted or the dead inventory.
K. Production Cost
1. Total Production per Year
Table 3.K.1.1: Total Production per Year
Number of Production per Working Weeks Months per Total

Worker(s) Production Days per Year Production per
(each worker) month year (per
Production)
1 15 5 4 12 3,600
BesTees has 5 working days. Assuming that the working hours is being maximized and
materials are all present then one worker can produce 15 units per day.
2. Production Cost Per unit
Raw Materials Cost
T-shirt Php 110
Ink Php 10
Dark Transfer Paper Php 31.50
TOTAL COST Php 151.50

3. Projected Cost Production/Operations
Production Costs Amount per unit
BesTees Php 151.50
Total 300
Total Cost Production Php 45,450

SECTION 4
ORGANIZATIONAL PLAN
A. Legal Form of Business
Partnership is the legal form business of BesTees. It will be equally owned
by the three proprietors of the business namely: Rejean Stefhany Rea Rabe
acting as the General Manager and Operational Supervisor, John Aaron Ramos
acting as the Financial Supervisor, and Monica Bunag as the Marketing
Supervisor. In this kind of business, the proprietors will assume that all profit
and losses will be distributed equally.
B. Organizational Structure
Rejean Stefhany Rea Rabe

Manager
John Aaron Diaz Ramos Nica Bunag

Financial Staff Marketing Staff
Figure B.1: Organizational Chart
Figure B.1 shows the three persons who are involve in managing the business. As
shown above, the whole business organization will be spearheaded by Rejean
Stefhany Rea Rabe which is the General Manager as well as the Operational
Supervisor of the business will be the one to oversee everything that is going on
around the business. John Aaron Diaz Ramos will focus on the financial part of the
business, while Nica Bunag which is the Marketing Manager will advertise the
product to the customers.
C. Qualification of Officers
POSITION FUNCTIONS QUALIFICATIONS
 Should be at least 2 years in

 Oversee daily operations of college and has a business-
the business unit or related course.
organization.  Well-organized and detail-
 Ensure the creation and oriented and able to multi-task.
Manager
implementation of a  Male or Female, at least 18
strategy designed to grow years of age.
the business.  Must be familiar with the
 process.
 Overseeing inventory,
distribution of goods and  Should be at least 2 years in
facility layout. college and has a business-
Financial Staff  Planning and reviewing related course.
budgets and managing  Male or Female, at least 18
cost. years of age.
 Developing the Marketing

Strategy
 Should be at least a marketing
 Identifying New Business
student.
Opportunities
 Goal-oriented, motivated and
Marketing Staff  Maintain regular supply of
hard working.
goods and services at
 Must have leadership and
reasonable prices in the
interpersonal skills
market.
Table C.1: List of Required Officer and Qualifications

D. Office Supplies
Table D.1: List of Office Supplies
OFFICE
PICTURE DESCRIPTION QUANTITY COST
SUPPLIES
 Used for writing

important notes
Ballpen 50 pcs 175.00
or sales
regarding the
business.
 Used for
recording the
Record Book daily sales, cash 3 pc 315.00
disbursements,
and general
ledger.
 Slip of paper ued

by store showing
Receipt where a purchase 3 pcs 40.00
was made and
also the amount
and date.
Needles 10 pcs 35.00

 Used for sewing.
Scissors  Used to cut 2 pcs 100.00

fabrics.
 Used for
Tailor’s Chalk 10 pcs 42.00
marking on
fabric.
TOTAL 707.00
Sources: Shopee and Lazada

E. Gantt Chart of Activities

Table E.1: Charting Activities Against Time
Weeks
1st wk 2nd wk 3rd wk 4th wk 5th 6th 7th 8th 9th wk
wk wk wk wk
Activities
Proposal
of product
concepts
Final
product
concept
Research
Survey
Marketing
Plan
Productio
n Plan
and
Costing
Prototypi
ng
Organizat
ional plan
Financial
Plan
Defense
Onw
ards
Business
Implantati
on
CHAPTER V
FINANCIAL PLAN
A. Total Project Cost
Table A.1: Project Cost
Project Cost (2019)
Tshirts
P689,400
(Sales * Variable Cost)
Diret Machinery 111,000
Equipments 50,000
Supplies 707
Total Project Cost P851,107
B. Sources of Financing
Table B.1: Partner’s Contributions
Partner’s Capitalization
Bunag P55,000
Rabe 55,000
Ramos 55,000
Total Capitalization P165,000
As the partners assumed equal distribution of income and losses, the initial capital
needed of P165,000.00 will be divided. The partners will invest P55,000 each to start the
business.
C. Projected Financial Statements
C.1 Projected Cash Flow Statement
BesTees
Statement of Cash Flows
For the years ending 2019, 2020, and 2021
2019 2020 2021

Beginning cash balance 3,293 88,071 163,695
Operating Activities
Net Income 61,336 71,048 221,282
Add: Depreciation 50,633 50,633 50,633
Decrease (Increase) In Accounts Receivable - - -
Decrease (Increase) In Supplies 707 - -
Decrease (Increase) In Inventory (34,470) (47,098) (42,692)
Increase (Decrease) in Income Tax Payable 6,572 1,041 16,096
Net Cash Inflow (Outflow) from Operating Activities 84,778 75,625 245,321
Net Cash Inflow (Outflow) 84,778 75,625 245,321
Ending cash balance 88,071 163,695 409,016
Figure A.1: Projected Cash Flow Statement

C.2 Projected Income Statement
BesTees
Income Statement
For the years ending 2019, 2020, and 2021
2019 2020 2021

Sales 900,000 1,876,350 2,969,308
Less: Scrap allowance (18,000) (37,527) (59,386)
Less: Cost of goods sold (689,400) (1,631,357) (2,485,190)
Gross profit 192,600 207,466 424,732
Less: Operating expenses
Rent Expense - - -
Utilities Expense (48,000) (50,400) (52,920)
Supplies Expense (1,414) (1,485) (1,559)
Salaries Expense - - -
Selling Expense (1,000) (1,050) (1,103)
Taxes and Licenses Expense (3,930) (2,400) (2,400)
Depreciation Expense (50,633) (50,633) (50,633)
Net income before tax 87,623 101,498 316,118
Income Tax (30%) (26,287) (30,449) (94,835)
Net income after tax 61,336 71,048 221,282
Figure B.1: Projected Income Statement

C.3 Projected Balance Sheet
BesTees
Statement of Financial Position
As of the years ending 2019, 2020, and 2021
Pre-operating 2019 2020 2021

ASSETS
CURRENT ASSETS
Cash 3,293 88,071 163,695 409,016
Supplies 707 - - -
Inventory - 34,470 81,568 124,259
Total Current Assets 4,000 122,541 245,263 533,275
NONCURRENT ASSETS
Direct Machinery 111,000 72,367 33,733 (4,900)
Equipments 50,000 38,000 26,000 14,000
Total Noncurrent Assets 161,000 110,367 59,733 9,100
TOTAL ASSETS 165,000 232,908 304,997 542,375
LIABILITIES
Income Tax Payable - 6,572 7,612 23,709
TOTAL LIABILITIES - 6,572 7,612 23,709
CAPITAL
Bunag, Capital 55,000 75,445 99,128 172,889
Rabe, Capital 55,000 75,445 99,128 172,889
Ramos, Capital 55,000 75,445 99,128 172,889
TOTAL CAPITAL 165,000 226,336 297,384 518,667
TOTAL LIABILITIES AND CAPITAL 165,000 232,908 304,997 542,375
Figure C.1: Projected Balance Sheet

D. Profitability Indices
D.1 Return of Investment
Table C.1: Return of Investment
Return of Investment
2019
Net Income 61,335.87
Divide by: Investment 165,000.00
ROI 37%
D.2 Payback Period
Table D.1: Payback Period
Payback Period
Initial Investment P165,000
Less: Cash Flow of 2019 (Incurred Year1) (88,071)
76,929
Divide: Cash Flow of 2020 163,695
0.47
Multiply by: 12 month 12
PAYBACK PERIOD 1 year and 6 months
D.3 Net Income: Sales Ratio
2019 2020 2021

Net profit 61,336 71,048 221,282
Divided by: Sales 900,000 1,876,350 2,969,308
Net profit margin 6.82% 3.79% 7.45%
Figure D.1: Net Profit Margin

D.4 Break-even Point
Table E.1: Break-even point in units
Break-even Point
Fixed Costs P98,633
Selling Price 250
Minus: Variable Cost (191.50)
Divide: Contribution Margin P58.5
BREAK-EVEN POINT IN UNITS 1, 686 units
E. List of Assumptions
 Sales Volume per month is expected to increase by 2% per month.
 Profits and Losses will be equally divided to the partners.
 Utilities Expense is expected to increase by 5% annually.
 Selling Expense is expected to increase by 5% annually.
 Supplies Expense is expected to increase by 5% annually.
 There will be no rental expense because the business is presumed to be home-based.
 Cost of the t-shirts is expected to increase by 3% annually.
 Selling Price is expected to increase by 5% annually.
 Desired inventory is 5% of the current year’s sales.
 All supplies are used by year end.
 Scrap allowance is maintained. It will be 2% of sales.

F. Schedules
F.1 Projected Sales
Table F.1: Sales Volume in months
January February March April May June
Qty. 267 273 279 285 291 297

Produced
July August September October November December Total

Sales of
2019
303 309 315 321 327 333 3,600
F.2 Projected Sales Volume
Table G.1: Projected Annual Sales
Total
Assumed
TOTAL Projected
YEAR Market
GAP Sales
Share
Volumes
2019 115,590 3.115% 3,600
116,891 6.115%
2020 7,148
118,186 9.115%
2021 10,773
F.3 Fixed Capital Investment
F.3.1: Initial Investment
BesTees
Schedule of Initial Capitalization
Cash Contribution:
Bunag 55,000
Rabe 55,000
Ramos 55,000
Initial Capital 165,000
Figure E.1: Initial Capitalization
F.3.2: Machinery and Equipment
BesTees
Schedule of Fixed Assets and Depreciation
Direct Machinery
Cost Useful Life Depreciation
Heat Press 24,000 5 4,800
Cutter Plotter 58,000 3 19,333
Iron 29,000 2 14,500
Total 111,000 38,633
Equipment
Cost Useful Life Depreciation
Computer 35,000 5 7,000
Printer 15,000 3 5,000
50,000 12,000
Figure F.1: Machinery and Equipment

F.4 Projected Cost Production/Operation
BesTees
Operating Expenses Schedule
Utilities Expense
Year 2019 2020 2021
Monthly Utilities 4,000 4,200 4,410
Multiply by: Months 12 12 12
Annual utilities 48,000 50,400 52,920
Supplies Expense
Year 2019 2020 2021
Annual supplies 707 -
Pre-operating supplies consumed 707
Annual supplies 1,414 1,485 1,559
Selling Expense
Year 2019 2020 2021
Posters/Flyers/Tarpaulins (Annual) 500 525 551
Other selling expenses 500 525 551
Annual selling expense 1,000 1,050 1,103
Taxes and Licenses Expense

Year 2019 2020 2021
Mayor's Permit 1,000 1,000 1,000
Sanitary Permit 200 200 200
Fire/Safety Permit 200 200 200
BIR registration 1,000 500 500
DTI registration/Name verification 530 - -
SEC registration 1,000 500 500
Percentage tax expense - 350,385 666,086
Annual taxes and licenses expense 3,930 352,785 668,486
Figure G.1: Operating Expenses

F.5 Projected Cost of Good Sold
BesTees
Cost of Goods Sold Schedule
T-shirt
Year 2019 2020 2021
Units sold/service rendered 3,600 7,148 10,773
Unit product cost 191.50 197.25 203.16
Cost of goods sold 689,400 1,409,907 2,188,668
Figure H.1: Cost of Goods Sold
F.6 Schedule of Materials Purchases
Table H.1: Material Purchases
Raw Materials Qty. Price
Plain Tshirt
12pcs P1320
Packaging 100 pcs P60
Dark Transfer 50pcs P1500

Paper
Ink 200ML P!50

F.7 Schedule of Taxes
BesTees
Schedule of Income Tax Payments
Year 2019 2020 2021

Income tax due 26,287 30,449 94,835
Payment within the year (75%) 19,715 22,837 71,126

Payment next year (25%) 6,572 7,612
Cash payments 19,715 29,409 78,739
Figure I.1: Tax Schedule

Appendix:
Questionnaire:
We, the Financial and Marketing Management students are conducting a

survey about our product called *insert name*. *insert short definition about your
product*. Your participation will be highly appreciated and rest assured that all
gathered information would be used for academic purposes only.
BESTEES
1. Are you aware of Statement Tees?

Yes
No
2. Are you willing to buy Statement Tees?
Yes
No
3. How often do you buy a shirt?
a. Once a month
b. Four times a year
c. Twice a month
d. Once a year
4. Are you familiar with statement tees?
Yes
No
5. What type of shirt do you prefer (Can choose 1 or more answer)?

a. Round neck Shirts
b. V-neck Shirts
c. Solid Colored Shirts
d. Colored Shirts
6. Would you buy Bestees Statement shirt?
Yes
No
7. How much are you willing to spend for this product?
a. Php 200.00 – Php 300.00 c. Php 401.00 – Php 500.00

b. Php 301.00 – Php 400.00 d. Php 501.00 – Php 600.00
8. What do you consider when buying t-shirts (Can choose 1 or more answer)?
a. Design
b. Style
c. Comfort
d. Cost
e. Quality
f. Others: ___________
Thank you!
Results:
Barangay
Age
Age
34%
26%
12% 12%
5% 5% 6%
15 16 17 18 19 20 21
Gender
43%
Male
Female
57%
How often do you buy a shirt?
12% 11%
Once a month
20% Four times a year
Twice a year
Once a year
57%
Would you buy our Bestees statement

shirts?
10%
Yes
No
90%
How much are you willing to spend for

this product?
3% 3%
6%
Php 200- Php 300

Php 301- Php 400
Php 401- Php 500
Php 501- Php 600
88%
What do you consider when buying t-

shirts?
Series 1
96% 97% 98% 98%

92%
4%
Design Style Comfort Cost Quality Others

UST Students
Age
Age
32%
24%
13%
10% 9%
7%
5%
15 16 17 18 19 20 21
Gender
39%
Male
Female
61%
How often do you buy a shirt?
12% 11%
Once a month
20% Four times a year
Twice a year
Once a year
57%
Would you buy our Bestees statement

shirts?
11%
Yes
No
89%
How much are you willing to spend for

this product?
2%2%
5%
Php 200- Php 300

Php 301- Php 400
Php 401- Php 500
Php 501- Php 600
91%
What do you consider when buying t-

shirts?
Series 1
95% 99%
90% 94%
60%
5%
Design Style Comfort Cost Quality Others


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Colegeio de San Juan de Letran 1

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

A Business Plan presented to the Faculty of the

In partial fulfillment of the requirements of the course

For the degree of

RAMOS, John Aaron D.

Rabe, RejeanStefhany Rea

Stefhany Rea Rabe gratefully acknowledges the important contributions and

guidance provided by our Business Plan professor, Mr. Leo Barnadas

guidance, without them we cannot make it.

knowledge that you have shared with us.

I. Executive Summary ………………………………………………...8

B. Management, Marketing, & Financial Highlights……………..10

III. Production/Operations Plan………………………………………..31

2. Duration per Step per Batch ………………………………..34

Figure B.1: Organizational Chart ………..…………………….47

A. Total Project Cost……………………………………………...44

Table F.1 Sales Volume in months …………………………...59

BesTees is a manufacturing clothe industry. The proponents intended to use

Figure 3.1: Logo of BesTees

BesTees aims to build a good relationship to the customers and to be the

B. Management, Marketing, & Financial Highlights

Table B.1: Partner’s Contributions

Total Capitalization P165,000

The significant contribution in putting up our clothin business is that we can

Figure B.1: Area Coverage of the BesTees Location

BesTees will be located at 1207 Antonio street Sampaloc Manila. The

Target Market Specific Target Market of BesTees

Geographic Residents of Sampaloc, Manila specifically those

Age 15 - 21 years old

Gender All genders

C. Demand and Supply Analysis

1. Total Potential Demand

LOCATION POPULATION TARGET MARKET

UST Students 44,000 The proponent got an 87%

Total Population 44,000 x 87% (Acceptance = 38,280

LOCATION POPULATION TARGET MARKET

Sampaloc city Barangay 465 318

(Barangay 465, 468, The proponent got a 90%

Barangay 470 412

Total Population 1,440 x 90% (Acceptance Rate) = 1,296

Table C.1.3: Historical Demand Schedule

YEAR TARGET MARKET SEGMENT ACCEPTANCE TOTAL DEMAND

2015 42,458 87% 36,938

2016 43,222 87% 37,603

2017 44,000 87% 38,280

YEAR TARGET MARKET SEGMENT ACCEPTANCE TOTAL DEMAND

2015 1,390 90% 1,251

2016 1,415 90% 1,274

2017 1,440 90% 1,296

Year Total Demand

multiplied to the acceptance rate of 87% and 90% respectively.

2018 projected population for UST students = 44,792

Table C.1.4: TOTAL DEMAND FOR THE NEXT 3 YEARS (UST

Year Population Acceptance Rate Total Demand

2019 45,598 87% 39,670

2020 46,419 87% 40,385

2021 47,255 87% 41,111

with the 87% acceptance rate.

Year Population Acceptance Rate Total Demand

2019 1,492 90% 1,343

2020 1,519 90% 1,367