Colon St.
, Barangay Kalubihan, Cebu City, Cebu 6002
BUSINESS PLAN
Presented to
MR. MELDIAN JACALAN
APLD 06 Instructor
In Partial Fulfillment
of the Final Requirements for
APLD 06: Entrepreneurship
ABM 33-C BILL GATES
Presented by
BULADACO, HONEY SHEN O.
MAGALLON, NIÑA SHIEL L.
DECEMBER 2022
ELLA ACCESORIOS
The Business Plan
Table of Contents
Section 1. INTRODUCTION..............................................................................................5
Business Concept..........................................................................................................5
Business Model..............................................................................................................5
Vision..............................................................................................................................6
Mission...........................................................................................................................6
Objectives.......................................................................................................................6
Business Offering...........................................................................................................7
Section 2. EXECUTIVE SUMMARY..................................................................................8
2.1 Business Proponents...............................................................................................8
2.2 Target Customers and the Main Value Proposition.................................................8
2.3 Macro Environmental Factors..................................................................................8
2.4 Product and Service Offering...................................................................................8
2.5 The Enterprise Strategy and the Enterprise Delivery..............................................9
2.6 Financial Forecasts and Expected Return...............................................................9
2.7 Environmental and Regulatory Compliances...........................................................9
2.8 Capital Structure and Financial Offering..................................................................9
Section 3. BUSINESS PROPONENTS...........................................................................10
Section 4. TARGET CUSTOMERS AND MAIN VALUE PROPOSITION.......................13
4.1 Target Market.........................................................................................................13
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4.2 Main Value Proposition..........................................................................................14
Section 5. MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND MACRO-
ENVIRONMENTAL FACTORS.......................................................................................15
Section 6. PRODUCT OFFERINGS................................................................................21
Product Description......................................................................................................21
Evolution Strategy........................................................................................................21
Pricing Justification.......................................................................................................22
Section 7. ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM........23
Section 8. FINANCIAL FORECAST AND EXPECTED RETURNS, RISKS, AND
CONTINGENCIES...........................................................................................................24
8.1 Projected Contingencies........................................................................................24
8.2 Projected Profit.......................................................................................................25
8.3 Projected Risks......................................................................................................26
a.) Internal Risks (Inside the company)....................................................................26
b.) External Risks (Outside the company)................................................................26
8.4 Projected Balance Sheet........................................................................................26
Section 9. ENVIRONMENTAL AND REGULATORY COMPLIANCE............................28
Bureau of Internal Revenue TIN..................................................................................28
DTI Business Name Registration Certificate................................................................29
Mayor’s Permit/Business Permit..................................................................................30
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Section 10. CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS AND
BENEFITS TO INVESTORS, FINANCIERS, AND BUSINESS PARTNERS.................31
Capital Structure...........................................................................................................32
Financial Offering.........................................................................................................33
THE BUSINESS OWNERS.............................................................................................34
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Section 1. INTRODUCTION
Business Concept
Ella Accesorios shall offer budget-friendly, high-quality, and hypo-allergenic
accessories that meet the standards of both young and mature women. Ella
Accesorios offers elegant, trendy, and minimalistic accessories which both young
and mature women prefer. Ella Accesorios’ competency is as good as other well-
known accessory brands.
Business Model
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Vision
Ella Accesorios is an accessory brand committed to providing the finest quality
embellishments to customers, especially women. The products the business offer
are instruments of expression—for the people to express themselves more than
words.
Mission
Ella Accesorios aims for customer gratification through simple but elegant-
looking and hypoallergenic accessories. The brand intends to promote self-
expression through embellishments. Moreover, expanding and creating a variety
of products that everyone can choose from in the next several years.
Objectives
To provide excellent customer service.
Use various social media platforms such as Facebook and Instagram to
promote products.
Add value to product packaging.
Ask customers for their product reviews and feedback to enable product
development.
Create fresh ideas every 3-5 months depending on the consumers'
preference.
Raise sales volume by 20% in a course of one year.
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Business Offering
Ella Accesorios offers non-tarnish and stainless-steel earrings. Provides and
ensures high-quality and economical products. For this season, Ella Accesorios
exuberantly presents "The Birthstones" collection. Earrings with high-end glass
gem and colored according to the client’s birth month.
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Section 2. EXECUTIVE SUMMARY
2.1 Business Proponents
The proponents of this business consist of five professional entrepreneurs. The
capitalists, corporate board members, or financial institutions would be the
resource mobilizers and financial boosters in the company.
2.2 Target Customers and the Main Value Proposition
Ella Accesorios will focus on the local market specifically in Cebu City. The city is
known to be the center for trade and industry therefore, making it the best
environment for a startup business. Women and teens are the top target
customers for the business. The products will be presented with aesthetic and
high-quality packaging at a very affordable price.
2.3 Macro Environmental Factors
The top-most factor that contributes to the accessories and its designs is the
current trends. The company has to keep up with whatever is popular at the
moment. The products are sold at a very affordable price however, taxation and
inflation heavily affect the pricing. The marketability of the products depends on
the population’s per capita income.
2.4 Product and Service Offering
Ella Accesorios is dedicated to providing stylish, high-quality earrings for ladies of
all generations. The most recent "I Am Born" Birthstone Collection has gemstone
earrings that are hued to match the birthstone for the given month. The company
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offers cleaning and maintenance services for the earrings for the first year after
the item is purchased.
2.5 The Enterprise Strategy and the Enterprise Delivery
The company is mainly focused on advertising the products through the top
social media platforms in the country. Using influencers is the topmost option. Its
affordability and quality are what makes the products have an edge among the
competitors in the business.
2.6 Financial Forecasts and Expected Return
In the financial forecast, the company will gain less profit than loss in the first
year but the company will become 30% profitable by the second year. The heavy
startup expenses create the loss for the first year.
2.7 Environmental and Regulatory Compliances
The company is compliant with all legal, commercial, and regulatory
requirements, allowing the business to fully operate. Through the intricate
technical and safety-related legislation as well as environmental laws around the
world, Ella Accesorios ensured that the products the business is offering is safe
and compliant.
2.8 Capital Structure and Financial Offering
Ella Accesorios has 50,000,000 in assets and 20,000,000 in liabilities. The
company equity is 30,000,000. The company capital structure is therefore such
that for 2,000 pesos of debt, and Ella Accesorios makes 3,000 of equity.
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Section 3. BUSINESS PROPONENTS
The proponents of Ella Accesorios are composed of six professional
entrepreneurs. A well-organized process from organizers and institutions, as well
as an entrepreneur's financial needs, are required for a business to function
properly. With the help of the demand for products and new products in this
entrepreneurial world, we would undoubtedly seek to have an appealing market
placed in the area in Cebu City.
The capitalists, corporate board members, or financial institutions would be the
resource mobilizers and financial boosters in the company.
PROPONENTS
Honey Shen O. Buladaco Niña Shiel L. Magallon
Sitio Landing, Catarman, Liloan Sitio Paglaum, Calamba, Cebu City
0920 602 7814 0942 936 2482
[email protected] [email protected] PROFESSIONAL SUMMARY
Business owner (Entrepreneur)
A business owner who graduated Graduated in Bachelor of Science
Bachelor of Science in Legal Business Administration, Major in
Management in Stanford University. Marketing and Advertising from Asian
She is currently a law student in De College in Technology. Niña Shiel has
La Salle University – Manila. She has managed a lot of businesses and
managed various businesses and investments here in Cebu. Niña Shiel's
investments nationwide. vision is to offer quality products
and services to the community.
JOB DESCRIPTION
Manages the company’s overall
operations. Delegates and directs Financial accounting and reporting,
agendas, drives profitability, manages cost accounting and management,
company organizational structure, accounting and control, taxation and
strategy, and communicates with the accounting information systems.
board.
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Honey Shen Buladaco is the Chief Executive Officer (CEO) and the highest level of
authority in the company. She is in charge of everything and is the driving force behind
the company's success.
Shawn Garcia is the Chief Marketing Officer (CMO)─a corporate leader responsible
for marketing efforts in an organization. He is in charge of the marketing strategy, which
frequently involves the sales plan, as well as its implementation.
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Niña Shiel Magallon is a Chief Financial Officer (CFO)─a senior executive responsible
for managing the financial actions of a company. She is in charge of the company’s
finances. She also develops budgeting and funding plans.
Avery Davis is a Chief Operating Officer (COO)─a senior executive in charge of a
company’s day-to-day administrative and operational functions. She is also in charge of
the company’s complicated operating aspects.
Howard Ong is the Chief Technology Officer (CTO), the executive in charge of an
organization’s technological requirements as well as its research and development
(R&D). He is in charge of overseeing the organization’s technical aspects to ensure that
they are in line with the company’s growth goals.
Sacha Dubois is the HR Specialist. She is responsible for monitoring all Human
Resource functions. She, together with her team, prepare compensation and benefit
packages, set up company policies, maintain updated employee records and ensure a
healthy workplace by providing HR procedures.
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Section 4. TARGET CUSTOMERS AND MAIN VALUE PROPOSITION
4.1 Target Market
4.1.1 Local Residence & Workers
Local residences and workers will greatly benefit from the delivery system
since the company offers a door-to-door service. Products will be
delivered at the customers’ doorstep–at their comfort.
4.1.2 Social Media shoppers
Marketing of products will mostly be made online through social media
platforms since people nowadays have spent most of their hours in those
applications.
4.1.3 Female Students
High-quality yet budget-friendly products are offered especially to students
who have limited resources as they are still depending on their
allowances.
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4.2 Main Value Proposition
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Ella Accesorios offers discounts and coupons for loyal customers and discounted
prices for bulk orders. Accessories are made from fine metal and coated with
non-tarnish gold which makes it hypo-allergenic. A wide selection of accessories
that come with different concepts and trendy designs that anyone can wear in
every occasion and in various outfits. Given that these products are high-quality,
the price ranges are still relatively low. This is how the brand will conquer high-
end and well-established accessory companies.
Section 5. MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, AND
MACRO-ENVIRONMENTAL FACTORS
The Entrepreneurs defined the market demand and supply of the business
venture by comparing and analyzing the resources used and profits generated
during the sale of the company's products, which include Pearl Earrings, Gold
Earrings, and Diamond Earrings. Specifically, the company formulated the
following references:
The products can generate more income when events such as
acquaintance parties, school events, debuts, weddings, and such are
nearing.
The business attracted more customers when more options were added
compared to when the business only had the pearl earrings to offer.
Revenues were lesser during Mondays and Tuesdays and higher during
Thursdays, Fridays, and weekends. The rhythm has been observed and
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the most common factors affecting it are the “day off” of most individuals
and the date of parties and events.
Since the business is located in the heart of the city, the pool of
competitors is vast. However, here are the top competitors of Ella
Accesorios:
o N.Cat
N.CAT was created to reflect a chic and sassy woman who
knows how to love herself with a never-ending passion,
striving for new fashion trends with high-quality products.
The downside of this brand is its price─ their products’ prices
are the highest among the three brands that will be
mentioned as top competitors of Ella Accesorios.
o Broadway Gems
Broadway Gems is the leading fashion accessories brand in
the Philippines that offers a wide selection of trendy
accessories for every occasion. Their products are
affordable but not for the lower class. Similar products are
offered in some shops at a lower price in which the lower
class can afford.
o Aizilym Enterprises
The enterprise has been known for how many years for their
cheap prices which led them to having regular customers
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that are both city-based and customers coming from distant
cities and municipalities. However, customer service needs
to be improved. The shop as well does not have a good
atmosphere as it is too hot and compressed.
There are various local and international suppliers such as XUPING,
N.CAT, KALIN INC. Their distinctions are stated below.
o XUPING
XUPING manufactures the cheapest jewelries in the country.
It is capable of creating expensive-looking classic items with
a relatively low cost and selling price.
o N.CAT
N.CAT is known for their non-tarnish and stainless-steel
products. Although the brand’s products are sold at a quite
higher price than the other manufacturers, they can assure
long-lasting jewelries that’ll be worth the price a customer is
paying.
o KALIN INC.
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KALIN INC. is the average-priced jewelry maker. Their
products are sold in a not-so-high prices and not-so-low
prices. The quality of their products certainly reflects the
prices.
The Information Age has brought out distribution methods available for all
kinds of consumers from the different social classes. The effectiveness of
the channels of distribution are tested during the soft opening of Ella
Accesorios.
o Direct Sales
Products and services are sold directly to customers through
the company's own store and website. This distribution
channel is cost-effective and has a greater control over
customer experience.
o Retailers
One of the most well-liked and efficient distribution channels
is a retailer. Putting things in physical stores, online stores,
or both is possible when collaborating with retailers. Product
contact, increased product recognition, a variety of
promotion techniques, and a larger audience are some
advantages of having a retailer.
o Independent Distributor
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Independent distributors are representatives who deliver
goods to merchants. Typically, distributors serve as a link in
the marketing supply chain. Utilizing an independent
distributor has advantages such as established networks,
easier storage, and increased job performance.
o Reseller
Resellers and distributors are nearly identical, but the
difference is that they supply clients directly rather than
retailers. Resellers typically operate online stores in contrast
to wholesalers who buy and store things. On every sale, they
earn a commission from the price. Then resellers arrange for
the items to be shipped straight to the customer. Cost-
effectiveness and increased product visibility go hand in
hand with this strategy.
o Wholesaler
Bulk purchases and sales are made by wholesalers.
Operations are made simpler and operational costs are
decreased by wholesale distribution. Utilizing wholesalers
has several advantages, such as affordable prices that draw
customers, efficiency, and connections and understanding of
the market.
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Macro Environmental Factors
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Section 6. PRODUCT OFFERINGS
Product Description
Ella Accesorios is chartered to offer earrings with great quality, elegance, and
trendy designs for every generation of women. The newest "I am Born”
Birthstone Collection offers gemstone earrings colored according to the month’s
birthstone. The company just answered prayers of almost all the boyfriends'
cause of headaches: choosing and picking out gifts for their loved ones. The
brand currently offers the following:
• Birthstone Earrings
• Pearl Earrings
• Solid Round Gold Earrings
The brand also caters cleaning or maintenance of the earrings, applicable during
the first year since the purchase of the item. The brand is also laying choices for
customers to whether put the earrings in a box or pouch, in whatever color they
like.
Evolution Strategy
Within the next few years, Ella Accesorios will expand the business. The
company will keep on marketing through social media platforms and will have
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social media influencers to market the products. To widen the reach of the
business, opening branches province-wide will be done in the first three years.
The company and its designers will formulate new designs per quarter and will
expand the collections, therefore not limiting to earrings.
As the products are being promoted by various influencers, the company
will gradually start to supply accessories nationwide.
The company will start to accept customized jewelry orders from
customers.
The company will invite entrepreneurs to invest.
Pricing Justification
Ella Accesorios wants nothing but high-quality products for the customers. The
brand’s manufacturers are using durable and safe materials in making
accessories. The products are priced wisely and economically.
Ella Accesorios will offer the following prices for its products:
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Section 7. ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM
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Section 8. FINANCIAL FORECAST AND EXPECTED RETURNS, RISKS, AND
CONTINGENCIES
Ella Accesorios makes some critical assumptions that will determine the potential for
future success. The following plan outlines the financial evolution of the organization.
The total capital investment of P20,000 and a P20,000 five-year credit arrangement
would be used to fund the company. The loan P150,000 will be repaid with cash flow
generated by operations. Furthermore, cash flow will be used to fund the growth of the
business. The organization will be permitted to continue growing after a five-year
transitional phase.
At such time, it is anticipated that a bank loan or equity capital will be obtained in
addition to retained earnings to finance the new initiative. The expected financial
statements were prepared using Generally Accepted Accounting Principles. They must
include some numbers that are based on Generally Accepted Accounting Principles
(GAAP), reasonable judgments and estimates.
The following sections outline important financial information.
8.1 Projected Contingencies
Financial issues cause many profitable firms to fail. Our top priority will therefore
be to have adequate cash on hand to cover our debt obligations and to cover any
unforeseen cash needs demands. Our projections show that our business will be
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able to produce positive cash flows and keep a sufficient amount of cash on
hand. We'll concentrate on building sufficient financial reserves for in addition to
normal cash inflows and outflows, contingencies. This could incorporate a credit
line with something that may be employed during slow sales periods in our bank.
Furthermore, in times of high debt levels, extra cash shouldn't be left sitting
around as intended. The management will investigate investing extra money in a
banking deposit account.
8.2 Projected Profit
We aim to break even in the first year of operating, with sales gradually
increasing. In the next 5 years, we'll be expanding and establishing our customer
base. The graph below shows the estimated percentage growth within (5) five
years of operations.
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8.3 Projected Risks
Ella Accesorios is crucial when it comes to analyzing risks inside and outside the
community that will affect the business operations deliberately. We have
discovered a couple of risks that might affect our business. These are the
following, grouped according to nature:
a.) Internal Risks (Inside the company)
Workers- in recruiting new employees, an interview will be
conducted. The process will be thorough to employ the best
employees for our company.
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Insufficient Cash- Not having sufficient cash on hand.
Implementation of strategies- As new generations arise, new trends
and strategies will be formulated.
b.) External Risks (Outside the company)
Delivery- Since we will only be using delivery apps in delivering our
items in the early years, delivery delays will be out of our control.
Suppliers- Delay of supply and quality control.
Competitors- having competitors is always a risk for a company.
Having competitors with the same offers and cheaper prices.
8.4 Projected Balance Sheet
We project a strong net worth increase and a robust financial position with
regards to liquidity. It is not predicted to have any difficulty in repaying our loan
commitments as long as we accomplish our stated objectives.
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The predicted balance sheet for the next (5) five years is shown below:
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Section 9. ENVIRONMENTAL AND REGULATORY COMPLIANCE
To officially open a business, owners must first comply all the documents, licenses, and
permits required by the National Government Unit (NGU) and Local Government Unit
(LGU). Here are the following permits and documents needed:
Bureau of Internal Revenue TIN
A tax identification number (TIN) issued by the Bureau of Internal
Revenue (BIR) is required in order to get all business licenses and
permits.
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DTI Business Name Registration Certificate
The company must get a registration certificate from the Department of Trade
and Industry (DTI) to be allowed to use the business' commercial name for any
purposes. The certificate is valid for five years. The business name needs to be
registered to the DTI to prevent unauthorized usage of the name.
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Mayor’s Permit/Business Permit
As per Section 5 of the Revised Omnibus Tax Ordinance of the City of Cebu:
“Any person desiring to engage in any business, trade, occupation or calling shall
first submit an application on a form prescribed for the purpose, to the City
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Mayor, for the corresponding permit. …the business permit is to ensure the
payment of the taxes and related fees to the city, as well as to regulate business
activities for security, sanitary, safety and propriety purposes.”
Section 10. CAPITAL STRUCTURE AND FINANCIAL OFFERING: RETURNS AND
BENEFITS TO INVESTORS, FINANCIERS, AND BUSINESS PARTNERS
Part (1) one, Capital structure is the particular combination of debt and equity used by a
company to finance its overall operations and growth. Equity capital arises from
ownership shares in a company and claims to its future cash flows and profits. Debt
comes in the form of bond issues or loans, while equity may come in the form of
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common stock, preferred stock, or retained earnings. Short-term debt is also considered
to be part of the capital structure.
Part (2) two, the Financial Offering is also known as a securities offering, investment
round, or funding round. A security offering, whether an IPO or otherwise, represents a
singular investment or funding round. To attract investors and convince the creditors to
achieve a proper distribution of cash.
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Capital Structure
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Financial Offering
Ella Accesorios' leading investors:
Investors Corresponding Amount of Investment
Honey Shen Buladaco 1, 500, 000. 00
Niña Shiel L. Magallon 1, 500, 000. 00
TOTAL 3, 000, 000. 00
The investors have been quite helpful in lessening capital costs, arranging loans,
and providing funds for investments, among other things. There are numerous
benefits and drawbacks to financial offerings.
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THE
BUSINESS
OWNERS
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CURRICULUM VITAE
Personal Data
Name: Honey Shen O. Buladaco
Date of Birth: July 23, 2005
Age: 17
Address: Landing, Catarman, Liloan, Cebu
Civil Status: Single
Religion: Roman Catholic
Citizenship: Filipino
Mobile Number: 0920 602 7814
Hobbies: Eating, Reading, and Sleeping
Interests: Novels, Law, Dogs
EDUCATIONAL BACKGROUND
Primary
2010-2014 Sta. Cruz Learning Center
2014-2017 Catarman Integrated School (Formerly Catarman Elementary School)
Secondary
2017-2021 Sta. Cruz Learning Center
2021-2023 Asian College of Technology – International Educational Foundation
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CURRICULUM VITAE
Personal Data
Name: Niña Shiel L. Magallon
Date of Birth: January 23, 2005
Age: 17
Address: Calamba, Cebu City
Civil Status: Single
Religion: Roman Catholic
Citizenship: Filipino
Mobile Number: 0942 936 2482
Hobbies: Singing, dancing, going out with family and friends, cooking and
listening to music
Interests: Online games and composing poems
EDUCATIONAL BACKGROUND
Primary
2010-2015 Evangelical Free Child Development Center Inc., Cebu City
2015-2017 Young Ladies Association Charity, Cebu City
Secondary
2017-2021 Abellana National School, Cebu City
2021-2023 Asian College of Technology – International Educational Foundation
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