CHAPTER I

PROJECT
SUMMARY

A. INTRODUCTION
This Feasibility Study evaluates the technical and financial feasibility of
putting up a business like a Jewelry store. In planning and putting up a
business is not easy as you think, you need to study the different aspects
like how can a business succeed and who are the competitors, and what
are strategies we need to succeed.
In this chapter, the group presents the highlights, descriptive definition,
long- range objectives, feasibility criteria, history and basic conclusions of
studying the business viability of ARC Jewelry Store.
B. HISTORY AND BACKGROUND OF THE STUDY
The ARC Jewelry Store, which is to be located in the Sta. Lucia East Grand
Mall in Marcos Highway cor. Felix Avenue, San Isidro, Cainta, Rizal, is a
new business. ARC Jewelry Store offers a great selection of gemstone
jewelry in various designs, colors and sizes. Our jewelry will include
bracelets, necklaces, earrings and rings.

All of the pieces will be

designed and created by the owner. The store will stock a wide selection
of jewelry and will offer a service to make custom pieces for shoppers
while they wait or shop in the mall.
through this mall store.

All sales for the business will be

Before the start of business operations the

owner plans to hire a sales representative to handle customer interaction

and some marketing.
The purpose of this business plan is to develop a blueprint of the
company's vision and strategy and then use this plan to as a guide to
develop and grow the business. This business plan will also be used to
align the various elements of the company to create a coherent system
of sustainable customer satisfaction and profitability.
The ARC Jewelry Store will focus on primary market, men and women.
We will concentrate our marketing efforts on professional men and
women, as well as those who like to dress up when going out for the

evening. ARC Jewelry Store will sell to these customers by suggesting

color

combinations

and

styles

for

various

outfits

and

occasions

demonstrating our knowledge of fashion design and customer service

targeted at individual shoppers.
In this industry trends are in our favor. Gemstones are popular because of
their unique natural colors and features; they are affordable yet ideally
suited for business attire and both informal and informal occasions.
Gemstones complement and can dress up any outfit on a woman.
C. AMONG THE PROPOSED BUSINESS, WHY IS IT CHOSEN? WHAT IS
THE REASON FOR CHOOSING BUSINESS?
The project came about the thought of a business partnership between
the group members originating from a fast food chain up to the Jewelry
Store. Thinking of what business to put up that suit inside the Sta. Lucia
Grand East Mall is really the main thing. A fast-food chain may be viable
in the location however a lot of competitors are already operating inside
the mall so the group though of a different business where in the target
audience could focus their attention into; and that is a Jewelry Store.
Jewelry store are seen to be good business since there are less
competition. This kind of

business does not require much effort for the

customers and the business owners as well. For the business owners,
hiring few employees that would manage the business is just the only
task to do. Employees will be needed for selling the jewelry. Thus, the
group thought of this kind of business for practicability and demand from
the target audience. It will be a good help for meeting the customers
expectations through satisfying their wants.
D. COMPANY VISION
The corporate vision of the ARC Jewelry Store is to be the Brand of
Philippines, Sparkling the World. This is also our core brand value. The
company always puts forth maximum effort to reach its goal of becoming
a globally recognized and desired brand, and as one of the Philippines
most renowned brands in the luxury industry, the ARC Jewelry commits to
crafting the finest jewelry for customers to further establish its reputation
in the local and international market.
E. COMNPANY MISSION

The ARC Jewelry Store's mission is to design, make and sell high quality
fashionable jewelry designed primarily around gemstones.

The ARC

Jewelry Store will offer an exceptional level of customer service and

personalized

fashion

recommendations

tailored

to

the

individual

customer. We exist to attract and maintain customers through our unique

combination of designs, quality, and customer service and fashion
recommendations.
F. COMPANY OBJECTIVES
The primary objectives of the business plan for The ARC Jewelry Store are
below:
To create a product-based store whose goal is to exceed customer's
expectations in design styles, quality and customer service.
To develop a sustainable merchandising unit that sells gemstones and
customized jewelry to meet the needs of the professional and outgoing
woman.
To increase the number of products sold by 20% each year.
To introduce a minimum of three new designs weekly.
G. NATURE OF BUSINESS
Jewelry industry is a strong and energetic business. Also, what makes it
more appealing to the market is the fact that this steadfast industry
continues to grow and succeed. The demographic trends toward an even
greater dwelling segment of the population forecast continued success.
The biggest threat for the business is the competition. Considering that
the business site is inside a mall, it is possible that other businessmen
would think of putting up the same business and hence, the market will
be more segmented and it yields a smaller target market for the jewelry
shop. However in the long- run, the business will not just dominate the
whole mall but will also extend to other places like the nearby mall near
the Cainta, Rizal and probably other areas like Rizal province or Metro
Manila area.
H. LOCATION
The store will be located in Sta. Lucia East Grand Mall in Marcos Highway
cor. Felix Avenue, San Isidro, Cainta, Rizal.

I. REASON WHY THE LOCATION WAS CHOSEN

Sta. Lucia East Grand Mall is owned by Sta. Lucia Realty & Development Inc.
and is one of the largest shopping malls in the Province of Rizal. The mall
is situated along Marcos Highway cor. Felix Avenue (formerly Imelda
Avenue), located at the boundaries between barangay San Isidro, in
Cainta, Rizal and Barangay San Roque in Marikina.
The mall caters the areas of Cainta, Pasig City, Antipolo City, and
Marikina City with the estimated population of 1,000,000 residents.

J. DESCRIPTIVE DEFINITION OF THE STUDY

We choose jewelry business as our sources of income to us. That may
lead us to become successful in our major goal in life to promote to the
customer that they are our priority. In this kind of business to give them a
good service and a warmth welcome, to make them enjoyed and relaxed
while they are inside and to appreciate our service that will visit and buy
jewelry from our store. To become popular to the customers our service
and the jewelry store.
K. MARKETING STUDY

For the business to succeed, it should be given time and effort. The
proponent of a jewelry business such as rings, necklace, etc. must
possess the needed creativity so as to be able to provide quality service
to its customers. The satisfaction of the needs and wants of its customers
or target market must be the main objective of the proposed business.
In every project feasibility, marketing aspect is considered the most
important because it requires discreet analysis of the business total
demand and supply. This chapter will discuss the demand analysis,
supply analysis, market size, market trends, market analysis, marketing
program and SWOT Analysis.
L. TECHNICAL STUDY
This study discusses about the processes of production and activities of
ARC Jewelry Store. It states also the equipment and supplies used in
business and other aspects regarding bringing the raw materials into a
finished product ready for trade. Store layout, and size are all presented
for the purpose of identifying the business operation. Also, product
specifications, the product processes using flowchart, the list of
machinery,

tools,

and

equipment

are

enumerated

with

their

corresponding costs, the raw materials and fund sources are also cited.
M. ORGANIZATIONAL AND MANAGEMENT STUDY
This study discusses about what form of ownership we have in our
business together with the organizational chart of the company. It states
also the duties and responsibilities of the staff and their job description.
The management proposals are all presented for the purpose of business
operation guidelines. The employee benefits are also included in this
study.
N. FINANCIAL STUDY
This study discusses about sales forecast of the business it also states
the financial plan we need before we operate our business. In financial
plan, we outline what are the important assumptions in our business,

how much is the start-up cost to setup the business and also who are the
sources of funds and how to use it.

CHAPTER II
MARKETING
ASPECT

I.

MARKET ANALYSIS
The ARC Jewelry Store is specifically targeting women in the Sta. Lucia Grand
East Mall. Women and men in the workplace, as well as women and men
that are sociable in the evenings (i.e., events, parties, etc.) are the primary
focus for the ARC Jewelry Store's high fashion gemstone products. We chose
this area as it is situated in Marcos Highway cor. Felix Avenue, San Isidro,
Cainta, Rizal. Also, Sta. Lucia Grand East Mall serves as one of the nations
most affluent and densely populated areas.
Women can appreciate how easy it can be to change their look with jewelry
without the expense of purchasing a whole new outfit.

II.

MARKET SIZE
There are about 250 firms in the country that are engaged in the jewelry
industry, employing a pool of more than 100,000 workers.

Small and

medium-scale jewelry enterprises hold about 50 percent of the industry,

while the top 10 largest jewelry chains and manufacturers hold less than 25
percent.
a. Industry Participants
Major participants include Karat World, Unisilver, Oro China and many
more.
Competitors:
Karat World - Fine jewelry for the Working Woman of today! Everyday
Jewelry with a wide assortment of Diamond and Gold Engagement and

Wedding Rings.
Goldenhills Jewelry - offers a large selection of fine jewelry made

of gold and set with diamonds, pearls, and other semi-precious

stones.
Unisilver - fuses fashion polished 925 sterling silver, it caters to men, women
and teenagers who love and breathe fashion and are in tune with the latest

trends.
Aurum by Tambunting this owned by Tambunting Pawnshop and

offers different kinds of jewelry

b. Market Segments
The Sta. Lucia Grand Mall caters the Cainta area, Marikina City area, Pasig area, and
Antipolo Area. It encompasses roughly about 1,000,000 residents earning an average
P12,000 per month.

III.

MARKET TRENDS
One of the most trendy and fashionable types of jewelry on the market is

gemstone jewelry. Gemstone jewelry is made in various designs, colors, and

styles with a design, which contains one or more beautiful gemstones as a
focal point. While various types of gemstone jewelry are popular, there are
different gemstone jewelry trends each year. One year it may be considered
extremely fashionable to wear ruby earrings while the next year rubies may
be out.
The latest red carpet fashion trend is pear shaped, gemstones drop
earrings. Tacori is at the front line of style. These earrings are versatile and
can go from a day to night, from jeans and ballet flats, to a sexy little black
dress.
Amethyst is another popular gemstone especially in the fall. It is a great
accessory to any ring or necklace.

Considered to be a precious stone,

amethyst ranges in shades from lavender to an intense, deep purple.

 Another trendy gemstone is the moonstone, a gorgeous, translucent

gemstone in shades of

peace, blue, pink, and white.

Moonstone jewelry

continues to be all the rage.

Rutilated Quartz is made from needles of the mineral known as rutile which
is embedded in crystal quartz. Rutilated Quartz is known to ease depression.
Gemstones of this type are often found in various types of jewelry from
necklaces to bracelets.
Chandelier earrings are becoming increasingly popular. These earrings are
an exotic, Indian inspired design and appeals to women all over the world.
Anyone would feel absolutely radiant when wearing this type of jewelry.
Big, bold, and colorful jewelry is among the gemstone jewelry trends.
Black jewelry with large gemstones is very popular amongst various
IV.

individuals today.
TARGET MARKET

ARC Jewelry Store is targeting women and men in the Cainta area, Marikina
City area, Pasig area, and Antipolo Area . This is a sophisticated community and

there is no doubt that the community is the centerpiece of stylish shopping.

In addition, since women are the primary end consumers of jewelry, it's
natural for our ARC Jewelry Store to spend most of its marketing resources
targeting this largest market.

V.

MARKET NEEDS
The jewelry we will market will meet the needs of woman who are looking to
dress up their outfit with quality gemstone jewelry. And also for the men
who loves jewelry as there accessories. The jewelry will be suitable for both
formal and informal events.

VI.

UNIQUE FEATURES OF THE SERVICES

ARC Jewelry Store offers customer to customized piece designed for them
onsite. And in terms of services, we offer 3 hours time frame to finish the
customized jewelry.

VII.

DEMAND AND SUPPLY ANALYSIS

a. DEMAND ANALYSIS
A total of 300 respondents took part on the survey conducted by the
proponents of this business. After gathering and recording all the data, it
shows that 75% of the respondents belong to the age bracket of 18-23
years old. The result also shows that 65% of the respondents are female

while 35% are male. About 85% are single while the other 15% are
married.
With regards to their monthly income, most of the respondents belongs
to the income bracket of P10,000-15,000. This also indicates that most of
them are young generation who comprise about 90% of the sample size.
About 65% of the respondents are willing to spend up 10% of their
income for jewelry products mostly for women, while 15% are still
undecided to spend their income in buying jewelry products and 20% of it
dont want to spend their income for jewelry.
Among the products and services offered by ARC Jewelry Store, the
respondents also consider the price and what kind of the jewelry as the
main factors in buying jewelry.
b. SUPPLY ANALYSIS
Based on the data gathered from the survey of jewelry store in
Philippines, it shows that about 250 firms in the country are engaged in
the jewelry industry. Most of the sellers of jewelry give priority in
providing

quality

service,

affordable

process

and

good

advertising/production in order to stay competitive in the service market.

VIII.

MARKETING STRATEGY
The ARC Jewelry Store will provide high quality gemstone jewelry to men and
women. Other jewelry retailers have lagged in this particular market by not
concentrating on providing a large variety of colors, sizes and designs. We
intend to leverage our expertise, product offering and marketing strategy to
increase our customer base while driving sales and profit.

IX.

SWOT ANALYSIS
The SWOT analysis provides us with an opportunity to examine the internal
strengths and weaknesses the ARC Jewelry Store must address.

It also

allows us to examine the opportunities presented to The ARC Jewelry Store

as well as potential threats.
A. Strengths
Strong relationships with suppliers that offer credit arrangements,
flexibility, and response to special requirements.
Excellent and knowledgeable staff, offering personalized customer
service. The ARC jewelry sets itself apart from the competition by
providing customized jewelry designs while the customer waits.

 Great retail space with an attractive, inviting atmosphere.

The owner keeps overhead low by purchasing directly from local
suppliers and self-creating the majority of the merchandise.
B. Weaknesses
Access to additional operating capital.
Revenues in the industry are cyclical; the majority of revenues are
earned during the fourth quarter and 25% are earned in the month of
December.
Owners are climbing the retail experience curve.
C. Opportunities
Increase in higher income of target market.
Addition of other jewelry related products and services.
D. Threats
Local and emerging competitors.
Shoplifting.
Sales tied to economic growth.
X.

4Ps of MARKETING
A. PRODUCT
The ARC Jewelry Store will specifically carry gemstone jewelry that is
designed for the professional and sociable man and woman. Our selection
will range in various colors, sizes and styles to meet the unique needs of
the everyday man and woman. Here are the lists of product offered by
ARC Jewelry Store.
CORPORATE TOKEN
DIAMOND JEWELRY
ENGAGEMENT RINGS
GOLD JEWELRY
SILVER JEWELRY
PEARL JEWELRY
PINS, MEDAL NAMEPLATE
SCHOOL RINGS
WEDDING RINGS
FRIENDSHIP RINGS
EARRING
PENDANT
NECKLACE
B. PRICE
The ARC Jewelry Store will use a dynamic pricing model. All jewelry will
be clearly marked with prices - - however, our pricing policy will allow for
some flexibility.

In order to increase sales revenues, our sales

representatives will be authorized to offer a maximum predetermined

discount to extend to their customers.

This incentive will provide the

customer the perception of extra value and a bargain purchase.

Since we are operating from a shop and not an online store we will need
to maintain somewhat reasonable and affordable prices. Some items will
sell as low as P200, but most of the products will be priced from P200 to
P20,000. There are a few pieces that will sell for P20,000 to P100,000.
C. PROMOTION
Our primary promotion and advertising strategy will be word-of-mouth.
1. WEBSITE
Due to the nature of this business being a mall shop there are no
plans to develop a website during the initial startup of the business.
We will develop a website after the first six to twelve months which
will be an informational site and will not list our products.

The

website

and

will

have

our

location,

fashion

related

articles

announcements of new products.

2. PRINTS ADS

Advertisement on the local leading newspaper and magazines

will be utilized to further aggressive campaign of the business
to penetrate the market.
3. LEAFLETS

To be used in introducing and informing the public about the

existence of the business ARC JEWELRY SHOP which includes
the location map and the services offered.
D. PLACE

The ARC Jewelry Store will be located in 2 nd floor near Watson of Sta.
Lucia Grand East Mall. It easy recognize because of the unique store
faade and by the store logo.

XI.

MARKETING PROGRAM
Our marketing program will primarily consist of our highly visible and
centrally located kiosk in the Sta. Lucia Grand East Mall location.

1. DISCOUNTS
ARC Jewelry will offer 10% discounts in cash basis. And also will
offer discounts for seasonal occasion.
2. CREDIT CARD and DEBIT CARD PAYMENTS
ARC Jewelry will offer credit cards and debit cards by modes of
payment.
3. SALES STRATEGY
Because ARC Jewelry Store is a new business, we understand
that we will have to prove our Company's worth to customers to

earn their business. As equally important, we need to sell both

the Company and products.
We will approach sales

from

salesperson-customer

relationship basis. All sales representatives will be trained and

encouraged to assist customers in a personal and engaging
manner.

By gathering key customer information and seeking

design feedback on our products will assist us in the following

ways:
Targeting our marketing efforts more effectively.
Developing product offers that will increase sales.
Training and developing sales representatives in order to
effectively service the customer.
Increasing awareness of our ARC Jewelry Store within the
jewelry retail consumer marketplace.
Developing future sales opportunities that allow for continued
growth of the business.

CHAPTER III
TECHNICAL
ASPECT

A.

LOCATION
The proposed business site will be operated at 2 nd floor near Watson of
Sta. Lucia Grand East Mall, Marcos Highway Cor. Felix Avenue, San Isidro, Cainta,
Rizal.

We have seen that the place will be suitable for putting up a

business because there are lots of shoppers at the mall. It is also

accessible since it is along the road.
Figure1. Watson of Sta. Lucia Grand East Mall

B.

GANTT CHART
The chart below states the activities for making a business
establishment before the normal operation will take place.
TABLE1. Gantt chart

C.

STORE LAYOUT AND SIZE

FIGURE 2: STORE LAYOUT
Figure 2: Product Sample

D.

PRODUCT
The ARC Jewelry Store will specifically carry gemstone jewelry that is
designed for the professional and sociable man and woman. Our
selection will range in various colors, sizes and styles to meet the
unique needs of the everyday man and woman. Management will rely

on customer feedback and sales reports to eliminate or introduce

particular sizes, colors and styles.
E.

PRODUCT DESCRIPTION
Our ARC jewelry store will carry wide selection gemstone jewelry with
various styles and price ranges. Each piece of jewelry will focus on
designs which accent and bring focus on the gemstones in that piece.
The jewelry will be designed for casual, business and formal
occasions. We will offer gemstone jewelry that includes necklaces,
rings, bracelets, and earrings.
Customers can purchase premade jewelry or request a customized
piece designed for them onsite.

F.

PRODUCT SOURCING
Raw jewelry making supplies will be sourced from locally. The owner
of the business has contacts in these suppliers for purchasing quality
gemstones and supplies not only at wholesale prices, but also
providing credit arrangements and flexibility in payment terms. This
in turn provides some flexibility in the owners day to cash flow
requirements. Orders of supplies which are small in size and weight
will be air shipped. All products and supplies will be stored at the
owners residence. While custom designs will be made on site while
the customer waits, the standard selection of premade designs will be
made at the owners residence.

G.

LIST OF STORE EQUIPMENT AND SUPPLIES WITH

CORRESPONDING COST
MATERIALS
EQUIPMENT
COMPUTER
FURNITURES &
FIXTURES
OFFICE CHAIR
FILING CABINET
OFFICE TABLE
PRINTER
DISPLAY CABINET
OFFICE SUPPLIES
BALLPEN
PENCIL
FOLDERS

QTY.
2

UNIT COST
15,000

TOTAL COST
30,000

3
5
3
1
4

650
1,225
450
3450
1,225

1,950
6,125
1,350
3,450
4,900

1 box
1 box
10
1 box

100
100
5
25

100
100
50
25

PAPER CLIP
STAPLER
STAPLE WIRE
BOND PAPER
SCISSOR
ENVELOPE
SCOTCH TAPE
TAPE DISPENSER
RECORD BOOK
PUNCHER
SHARPENER
ERASER
CORRECTION FLUID
SIGNAGE
FIRE EXTINGUSER
H.

1
10 boxes
4 reams
1
20
4
1
5
1
1
5
2
2
2

30
5
120
20
5
15
50
75
65
10
10
50
30
1,000
TOTAL

30
50
480
20
100
60
50
375
65
10
50
100
60
2,000
51,500

INVENTORY MANAGEMENT
In order to run the store successfully approximately P1,000,000 in
inventory is required. This inventory will be stored at the owners
residence. The owner will utilize bins to store and organize jewelry
supplies. Final jewelry products will be kept at the kiosk. Since this is
a small business with limited inventory, all inventories will be
managed in a spreadsheet.

I.

STORE SCHEDULE
ARC Jewelry Store will operate from 10am to 9pm. It will start
selling at the moment the mall opens. The employees should be
present one hour before the opening of the store for the arrangement
and preparation.

J.

SELLING PROCESS
These steps are meant to act a guideline in the selling process of ARC
Jewelry Shop, as each sales approach will probably have to be
customized to fit the situation and the customer.
Step 1: Be Prepared
The purpose of being prepared is to provide you, the salesperson, with
pertinent information needed to increase your confidence in the
selling process. Being prepared also means knowing your product and
being able to answer any questions that pertain to it.
Step 2: Opening the Sale
The first essential key to selling is to develop sensitivity to your
potential customer, and that is not always a simple task.

Step 3: Probing
Once the customer is put at ease, feels comfortable and has
developed some trust in you, your next step is to determine the
customers' wants, needs and desires. This is done with the use of
effective probing questions.
Step 4: The Demonstration
There are two major objectives to be accomplished during the
demonstration:
*Establish the worth or value of the product...the benefit derived from
the purchase.
*Generating desire...the need to own the merchandise.
In other words, cause the customer to say, "I'll take it" before you
have to ask, "Will you buy it?" If you listened carefully to the
customers' responses in probing, you'll have several good points to
use in the demonstration.
Step 5: Trial Close
A trial close is when the customer is not quite ready to make a
decision, and you have to nudge them a little. Ask them which color
they would prefer, or what size suits them best. Point out the different
accessories or add-ons you also sell which may make the product
more desirable
Step 6: Objections
Step 7: Closing the Sale
Closing the sale makes you a true salesperson. This is where you
actually ask the customer to buy. One of biggest mistakes made by
new crafts entrepreneurs is failure to ask for the order. Asking the
customer to buy can be very difficult for most first-time salespeople
perhaps because it is the one question that by its nature demands a
yes or no answer.
Step 8: Confirmation and Payment
This step eliminates buyers' remorse and returns, and increases
repeat business.
Thank the customer for their order or purchase and if possible use the
customer's name (get it off cheque, credit card, etc.), this will help to
establish a more personal relationship.
K.

Waste Disposal Management

The waste from the store place will be identified as biodegradable.
These wastes will be disposed thru the collection of mall garbage.
Non-biodegradable wastes will be recycled or sold to junkshops.

CHATER IV
ORGANIZATIONAL
AND

MANAGEMENT
ASPECT

A. FORM OF OWNERSHIP
The form of business is partnership. The name of the business firm is ARC
JEWELRY STORE. The proponents choose the form of partnership because of
the following reasons.
Advantages:

As compared to a sole proprietorship, a greater amount of capital can be

accumulated in a partnership because of the numbers of person involved.

Better management will result in a partnership because of the concerted

efforts and abilities of the partners.

As compared to the corporation, a partnership is supplier and less

expensive to organize, there being only few legal requirements.

The partnerships unlimited liability will serve as protection for the

partnership creditors thus the letter will not be discourage to extent
financial assistance.

Disadvantages:

Any personal rifts, deaths, withdrawal or incapacity of a partner may

dissolve the partnership

Equal profit sharing despite unequal attention of time given by partners.

Because of numbers of person involved, conflicts and disagreement may

arise and may easily affect the operation and success of the business.

B. ORGANIZATIONAL CHART AND STRUCTURE

Since ARC Jewelry Store is a small business, it will be managed by industrial
partner and will have two sales representatives.

OWNER
Manager
Sales
Representat
ive

Sales
Representat
ive

C. EMPLOYEES
A. JOB TITILE:

MANAGER

JOB DESCRIPTION:
The jewelry store manager also plans and prepares work schedules for
jewelry store
personnel, assigns employees to specific duty requirements
of the store, prepares and
directs
personnel
with
appropriate
merchandise, and provides performance review. He/she
is
also
responsible for storing display as well as advertising copy, performing sales
work
such as taking inventory, recollecting cash with sales receipts, and
maintaining operating records such as records of store transactions. The
jewelry store manager also orders merchandise and stock as needed; and
ensures personnel comply with established store
security level, as well
as sales and record keeping procedures and practices.
DUTIES AND RESPONSIBILITIES:
Duties of a jewelry store manager include assisting and managing the
daily operations and activities of the jewelry store, as well as supervising
employees with their daily work requirements.
QUALIFICATION:
3 to 5 years experience in a Management role preferably within a
customer service environment.
Graduate of any four years course
Male or female
Strong verbal and written communication and interpersonal skills;
attention to detail and accuracy in work; and time management and
organizational skills.
Ability to maintain professionalism at all times when representing the
company and management to the public and company associates.
Required to pass thorough background check and drug screen.
SALARY SCHEDULE:
The salary of a manager is P 20,000 per month.
B. JOB TITILE:

SALES REPRESENTATIVE

JOB DESCRIPTION:
Under direction from the Store Manager, the Sales Representative is
responsible for building sales volume, establishing and maintaining

customer relationships, creating effective teamwork among associates.

The Sales Representative is not only the product filter subject matter
expert, but also ensures a professional selling environment through the
development of sales professionals.
DUTIES AND RESPONSIBILITIES:
Recommend products to customers, based on customers' needs and
interests.
Answer customers' questions about products, prices, availability,
product uses, and credit terms.
Provide customers with product samples and catalogs.
Contact regular and prospective customers to demonstrate products,
explain product features, and solicit orders.
Estimate or quote prices, credit or contract terms, warranties, and
delivery dates.
QUALIFICATION:
Customer Service Skills: The customer is always right. You will need to
be able speak in a friendly way to customers and potential customers,
listening to their needs and helping communicate options for them.
Communication Skills: You will need to speak to customers about a
product's different features, and answer any questions they might
have.
Flexibility: You might have to work long hours, nights or weekends.
Persistence: Not every customer is going to be a sale. Being able to
bounce back if you lose a sale will be key for this job.
Graduate of any four years course.
18 28 years old.
Male or female.
SALARY SCHEDULE:
The salaries of Sales Representative are P 15,000 per month.
D. Management Proposal
A good rapport between management and the employees is a secret of a
successful business.
Standardized hiring procedure
Standardized hiring procedure is

implemented

to

guarantee

the

management that the vacant positions are aware only to the most worthy

applicants.
Recruitments
The management will recruit individuals through advertising for all the
vacant positions in need of occupants.
Screening

Through screening of applicants should be made. Aspiring employees will

get through the following stages.
a.) Submission of Resume
All applicants are required to provide a resume with 2x2 photo.
Qualified applicants will then be called for an examination
b.) Written examination
This is given by the management to test the applicants intellectual
capacity, capability, and knowledge about the position desired.
c.) Initial Interview
In

this

stage,

necessarily existing at the

the

management

often

asks

questions

not

applicant resume.

d.) Final Interview

The aspiring individuals will a chance to prove themselves to the
management that they are worthy of the position they are applying for.
e.) Submission of requirements
After passing the final interview, the management requires the
qualified candidates to submit NBI Clearance, medical certificates, police
clearance, residential certificate, tax identification number, and SSS
number. Failure to submit and comply requirements in due time is a sure
ball to declination. The strict parameter is intended to assure the workers
disciplines.

Hiring and placement

The applicant is now employed at this stage. And based on his qualification, he
is now placed on the appropriate position.

Orientation

The newly hired employees are oriented about the policies, rules and regulation
of the company. They are introduced to their superior and co-workers.

On the Job Training

The newly hired personnel will be trained within his actual working environment.
Through this, he will be familiar with the duties and responsibilities attached to
him. This is usually last up to 2 weeks.
E. Employee Benefits
Overtime
For work rendered beyond 8 hours of regular working days, an additional

25% of the regular per hour wage will be paid.

Holiday/Rest Day
Regular holiday 100% of the regular hourly rate is added to daily salary.
Special Holiday/Rest Day 30% of the regular hourly rate is added to the

daily salary.
13th Month Pay
Staffs of ARC Jewelry Store are entitled to a 13 th month pay, which is
equivalent to one month of the basic salary provided that an employee
worked at the business for at least one year. This is given no later than
20th of December. If employee resigned or contact has ended within the
year, the 13th month pay will be given to him/her through his/her quit

claim.
Pag-Ibig
Pag-ibig offers o its member the following benefits: housing programs,
savings, and multi-purpose load program. Membership to Pag-Ibig is

voluntary if monthly basic rate is less than P4,000.00.

SSS
ARC Jewelry Store will pay the employer share to SSS contribution, while
employers share shall be deducted from their monthly salaries.

Leaves
Service Incentive Leave

Service Incentive Leave Pay is the benefit of employees to avail of leave

with pay for 5 days provided she has rendered service for at least one

year.
Solo Parents' Leave
Persons who fall under the definition of solo parents and who have
rendered service of at least one year are entitled to 7 working days of

leave to attend to their parental duties.

Maternity Leave
A female member of the Social Security System (SSS) who has paid at
least 3 monthly contributions in the twelve-month period immediately
preceding the semester of her childbirth or miscarriage shall be paid a
daily maternity benefit equivalent to 100% of her average daily salary.
The benefit is for 60 days for normal delivery and 78 days for caesarian

delivery for the first four deliveries and miscarriages.

Paternity Leave
The law provides for paternity leave of 7 days with full pay to all married
male employees in the private and public sectors. It is only available for
the first four (4) deliveries of

the legitimate spouse with whom the

employee is cohabiting.
Leaves under RA 9262
Women victims of violence provided under R.A. 9262 of the Anti-Violence
against Women and their Children Act are entitled to a paid leave of

absence from work up to 10 days.

Leaves under RA 9710
The Magna Carta of Women introduced a 2 month leave for women with
full pay based on gross monthly compensation, for women employees
who undergo surgery caused by gynecological disorders, provided that
they have rendered continuous aggregate employment service of at least

six (6) months for the last twelve (12) months

F. ORGANZATIONAL POLICIES
Working day and time
Monday to Sunday
10:00 am -9:00 pm
Payment of salaries/wages

Payment of salary/wages will be on the 5th and 20nd day of every

month.

CHAPTER 5
FINANCIAL
ASPECT

A. SALES FORECAST
The following table and related charts show our present sales forecast.
Table 5.1 Annual Sales Forecast
Annual Sales Forecast Year 1
Year 2
Year 3 Year 4
Year 5
Sales
Store Revenues
4,320,000 5,670,000 8,280,000
8,670,000
8.950,000
Service and Repair 432,000
567,000
810,000
1,050,000
1,076,000
Total Sales
P4,752,000
6,237,000
P9,090,000
9,720,000
10,026,000
Cost of Sales
Jewelry and Supplies
864,000
1,134,000
1,620,000
1,850,000
1,945,000
Total Cost of Sales
864,000
1,134,000
1,620,000
1,850,000
1,945,000
B. FINANCIAL PLAN
Profit and Loss shows the profitability of the business, whereas, the Balance
Sheet shows the financial position of the ARC Jewelry Store. The Cash Flow
shows the status of cash received and cash paid over a specified period of time.
These documents are required to get financing for your venture.
Since we are entering a retail environment we will accept cash, checks, and all
major credit cards. We will select a check guaranty system to help reduce the
percentage of loss on bad checks.
1. Important Assumptions Profit and Loss Assumptions:
Estimated Average Sales Price per unit is 1,000
Average daily sale: 2.67 units Year 1
Average units sold monthly: 80 Year 1, 105 in Year 2 & 150 in Year 3
40% of revenues occur during 4th Quarter
25% of revenues occur during December

 Revenue increase in Year 2 assumes average daily sales of 3.5 units or

27.78% annual increase
Revenue increase in Year 3 assumes average daily sales of 5 units or
42.86% annual increase (Revenues will level off near year 3 and total assets
will remain static)
Service and Repair estimated Revenue: 10% gross sales (industry
average)
Cost of Goods Sold: 20% of gross revenues (compares higher than
industry peers @ 49.10%; mainly this is attributed to two factors: 1) low
cost associated with obtaining raw materials and finding from local + 2)
owner also constructs the final product, further reducing overhead expenses.
Advertising Expense: N/A; Tarpaulin will be visible in the mall + word of
mouth
Accounting: P18, 000 monthly bookkeeping + P27,000 for income tax
preparations
Bad Debts: Estimate 5%
Depreciation: 5 years useful life
Credit Card Fees: P11.25 per transaction plus 1.5%
Insurance: Estimate P18,000 annually
Miscellaneous: Estimate: 11,250 annually
Payroll Tax Assumptions: based on BIR Income Tax Rates
Permits and License: Estimate P5400 annually
Rent: P50,000 per month
Salaries: Manager 20,000 per month , Sales Representative 15,000
Balance Sheet Assumptions:
Start-Up Capital Items:
Shop + Display: P51,500
Beginning Inventory: P2,241,000 (which reflects industry averages and
compares in line with industry peers)
PC Based cash register P15,000 (no annual maintenance fees)
Assumes annual growth rate for total equity: 5% Year 2, and 7.5% Y3
2. START-UP COSTS
The cost to setup a store and prepare it for operation total P2,533,500.
Startup inventory will cost approximately P2,241,000. The bulk of the annual
expenses annual store rental and are estimated to be P2,034,000 or 64% of
total expenses.
Start-up costs will be financed through owner investment.
Table 5.2 Start-Up Costs
Start-Up Assets
Starting inventory
P2,241,000
Fixtures and Equipment
51,500
PC based cash register
15,000
Total Start-Up Assets
P2,307,500
Total Required Start-Up Costs
P2,307,500
3. SOURCE AND USE OF FUNDS

This startup will be completely financed by the owner of the business. The
startup funds will be used to purchase initial inventory, purchase the store
and display case, and a PC based cash register. Additionally the owner will
provide the necessary working capital requirements to fund day to day
operations for the initial year of operations. The owner has enough funding
to completely fund the business for the first 24 months without relying on
sales or other sources of funds. The funds are liquid and primarily in the
form of marketable securities.

Table 7.3 Source and Use of Funds

Source and Use of Funds
Sources of Funds
Owners' and other investments
P 4,171,580
Total Source of Funds
4,171,580
Use of Funds
Capital equipment
P
66,500
Opening inventory
2,241,000
Working capital
1,864,080
Total Use of Funds
P4,171,580
C. PROJECTIONS
There are three key projections needed for this section; Profit and Loss, Cash
Flow and Balance Sheet. For a start-up business we have to project figures for
all of the above financial statements, such statements are called pro forma
statements. The word pro forma means provided in advance.
1. Projected Profit and Loss
The Profit and Loss statement details the income and sales of ARC Jewelry
over a specified period.
Income
2015
2016
2017
2018
2019
Sales
4,752,000 6,237,000 9,090,000
9,720,000
10,026,000
Cost of Goods Sold
(864,000)
(1,134,000) (1,620,00)
(1,850,000)
(1,945,000)
Gross Profit
3,888,000 5,103,000 7,470,000
7,870,000
8,081,000
Expenses
Accounting / Legal
18,000
20,000
22,000
24,000
26,000
Bad Debts
20,000
25,000
27,000
29,000
30,000
Depreciation
12,555
25,110
37,665
50,220
62,775
Credit Card Fees
75,600
99,225
141,750
151,250
170,500
Insurance
18,000
18,360
18,900
18,950
19,500

Miscellaneous 11,250
11,115
11,475
11,500
11,575
Payroll Taxes
70,425
169,065
253,575
260,575
275,347
Permits and Licenses 5,400
5,580
5,715
6,000
6,000
Rent
600,000
660,000
720,000
780,000
840,000
Salaries
420,000
456,000
516,000
520,000
525,000
Utilities
132,000
137,000
140,000
143,000
147,000
Total Expenses
1,383,230 1,626,485 1,894,080 1,994,495
2,113,677
Net Profit
P 2,504,770
P 3,476,515
P 5,575,920
P5,875,505 P 5,967,303
2. PROJECTED BALANCE SHEET
The balance sheet provides instant picture of the business. It has two
sections; one is for assets and the other for liabilities and capital.
Pro Forma Balance Sheet

Pro Forma Balance Sheet Year 1

Year 2
Year 4
Year 5
Assets
Current Assets
Cash
361,125
379,170
407,610
415,840
Accounts Receivable
77,625
81,495
96, 795
105, 795
Inventory
2,241,000 2,353,050
2,529,540
2,779,215
Other Current Assets 43,875
46,080
49,709
50,150
Total Current Assets
2,723,625 2,859,795 3,074,310
3,351,000
Long Term Assets
Long Term Assets
65,500
70,000
90,000
92,000
Accumulated Depreciation 13,100
13,100
13,100
13,100
Total Long Term Assets
52,400
56,900
76,900
78,900
Total Assets
2,776,025 2,916,695 3,146,210
3,429,900

Year 3

410,750
87,615
2,678,836
49,545
3,236,090

85,000
13,100
71,900
3,312,990

Liabilities and Capital

Current Liabilities
Accounts Payable
518,490
545,805
586,755
591,450
Other Current Liabilities
339,750
356,760
383,490
387,490
Subtotal Current Liabilities 858,240
902,565
970,245
978,940
Long Term Liabilities
Total Liabilities
858,240
902,565
970,245
978,940
Paid In / Invested Capital
1,917,785 2,014,130 2,175,965
2,450,960
Total Capital
1,917,785 2,014,130 2,175,965
2,450,960
Total Liabilities and Capital
2,776,025 2,916,695
3,312,990 3,429,900

590,700
385,840
976,540

976,540
2,336,450
2,336,450
3,146,210

D. FINANCIAL RATIOS
Overall, the ARC Jewelry Store demonstrates sufficient liquidity, has no debt
obligations, and demonstrates favorably profit margins.
Liquidity and Leverage: The Jewelry Store Kiosk has adequate liquidity and
compares favorably with its peers based on its current ratios. In Year One, the
ARC Jewelry Store reports a current ratio of 3.17. The ARC Jewelry Stores
leverage and equity ratios will not compare with its peers. This is primarily
attributed to the fact that the owner will self-fund with no outside debt or
financial obligations.
Profitability: Profitability compares below its peers as evidenced by its Return
on Assets Ratio of 20.9% in Year One. Mitigating this average is the ARC Jewelry
Stores above average gross profit margin of 81.8% in Year. The owner is able
to achieve such margins with reductions in expenses associated with overhead
and by constructing the jewelry designs herself.
Activity: The average Inventory turnover is .70X times annually. The ARC
Jewelry Store is anticipated to turnover inventory .38X in Year One, .48X times
in Year Two and .64X in Year Three and compares to be in line with its peers.
Although slow to turn, this is a commonality of the Jewelry Store Industry with
merchandise inventories representing more than 50% of annual sales.
Table 7.6 Ratio Analysis
Ratio Analysis
Year 1
Year 2
Year 3
Year 5
Financial Ratios
Quick Ratio
0.51 0.51 0.51 0.51 0.51
Current Ratio
3.17 3.17 3.17 3.17 3.17
Current Liabilities to Net Worth 33.9%
33.9%
33.9%
33.9%

Year 4

33.9%

Current Liabilities to Inventory 38.4%

38.4%
38.4%
38.4%
38.4%
Total Liabilities to Net Worth
33.9%
33.9%
33.9%
33.9%
33.9%
Fixed Assets to Net Worth 2
26.6%
26.6%
26.6%
26.6%
26.6%
Inventory Turnover
0.4
0.5 0.6
0.7
0.8
Assets to Sales
71.5% 57.2%
43.0%
84.0%
76.05%
Sales to Working Capital 2.55 3.19 4.23 4.59
4.67
Accounts Payable to Sales
10.9%
8.8% 6.6% 7.0% 7.9%
Return on Sales
14.9%
16.0% 25.9%
26.8%
27.5%
Return on Assets
20.9%
28.0%
60.2%
63.7%
64%
Return on Equity
28.0%
37.5%
80.6%
56.5%64.2%