Organization and Management

De La Salle University - Manila

First term, A.Y. 2018-2019

Cutterz Ph
Mainsteam Approach - Business proposal

Submitted by:
Valdez, Jazehl Joy G.

I. Background

Grab, Waze, MiCab, Angkas and a whole lot other more services that offers a variety of
convenient services to lessen the hassle and time hindrance of traffic in the Philippines — which
is considered as the outmost irritation of our country. As what Mr. Rj Ledesma said,
“entrepreneurship is all about your irritation.” An answer to an irritation leads to inspiration,
— and thus, the idea for this proposal began.

Cutterz Ph came from the idea of wasting your time for having to wait in line for hours.
Imagine having to renew your license — you wake up early, then you get stuck in traffic and
then you arrive only to witness a massive line of people also waiting to renew their license.
Aggravating, right? Its time consuming and bothersome. Thus, we have proposed Cutterz Ph, a
service app that would allow people to hire someone to wait in line for them.

But why this type of service? As a person alone, I have encountered several experiences
where I would wake up early just to buy limited edition shoes. I have friends who sleeps in the
waiting areas for concert tickets and meet and greets for their favourite Korean and International
groups. Accordingly, I also have family members who would pay amounts for money to fixers in
order to shorten their line when renewing government ID’s. Thus, this irritation came into mind
and I decided to put up Cutterz Ph in order to fix this problem.

It is a type of service that is new to the eyes of the consumers, and thus making it
susceptible for great opportunities. Furthermore, it will be great investment for anytime soon, the
business might fluctuate and/or bloom high.

II. Product/Service

• Its main service would be offering a service to wait in line in exchange of monetary payment.
Whether it be for concert tickets, limited edition variants, transportation lines, product releases,
restaurants and anything that you could ever name.

• Cutterz Ph would also provide an extension for online services. As for example — limited
edition products that are only released online at a specific time (e.g. make ups, shoes)
• Cutterz Ph would provide its employees with proper training and development to ensure a
more proffesional experience.

Steps to book a service:

1. Download the application through any mobile device and create your own account with your
complete name and contact numbers.
2. Provide a time, date, place and specific product or request.
3. Wait for a confirmation.

III. Concept

The concept of this service came from the irritation of having to wait. It is a service that
would satisfy the need of the customers who lacks enough time and patience. Hence, it will also
benefit other businesses for it will help them to gain more sales/revenue because we are helping
these people to buy their products.

IV. Target Market

The target market of Cutterz Ph would be quite narrow as what it aims to be.

• It would possibly cater to the middle up to the upper social class.

• Cutterz Ph would most likely provide services for people who are lazy, who does not have
enough time or just simply finicky.
• It is a great option especially for those people who are very busy to simply fall in line
• It is also for private companies who does not have enough man power to sacrifice one
employee to waste their time falling in line for long hours.

V. Market Analysis

From research, there are no existing competitors who offers the exact same service of
Cutterz Ph as of the moment. It may be the pioneering service app that offers this kind of service
in the market here in the Philippines which would make it a good business to invest into.

Aside from having no competitors, it will also be a good idea to offer the service only in
Metro Manila for the mean time. Just like with ride hailing apps such as GrabPh who only offers
services inside Metro Manila — since the essence of Cutterz Ph is all about having to fall in line
for services that are very much crowded and hard to get into, these places or properties would
most likely exist in the metro. Thus, if the business becomes a big hit — then the opportunity for
expansion might began.

VI. Management Practices

• Incentives will be given to Cutterz' who have been able to incur services above their minimum
quota
• There will be casual training and development every now and then to ensure that every Cutterz
follows a certain practice.
• Respect will highly be implemented and would take necessary actions if some Cutterz does not
abide by the rules and regulations of the company.
• Feedbacks from customer will be highly monitored in order to ensure how all Cutterz’ are
doing their job.

VII. Business Development Strategy

Strengths

• A pioneering service application in the country that provides a waiting service.

• Its very easy to use especially that it can be accessed through any mobile devices.
• The employees are professionals and highly trained
• Payments can be made on hand and online.

Weaknesses

• It might not be able to penetrate the Philippine market easily for it is kind of extravagant and
costly.
• Cancellations may be hard to settle if the Cutterz employee is already on the spot.
• Communications between the customer and the Cutterz may be hard.

VIII. ROLES OF TEAM MEMBERS

• Valdez, Jazehl Joy - CEO

• Ang, Stephanie Dianne - Internal Auditor
• Gomez, Ken - EVP Public Relations
• Lim, Geoffrey - EVP Human Relations Social Development and Training
• Malamug, Jose Rafael - EVP - Human Relations Internal
• Piamonte, Clarissa - EVP Marketing
• Sebe, Hana - EVP Finance
• Teckney, Presentacion - EVP Publicity

Core team members

• Team leaders - they will be the executive board leading the company. Thus, they will be the
one to ensure that the operations are going smoothly.
• Managers - They will be handling the employees hand in hand and they will be the one to
produce feedbacks for the betterment of the company and employees.
• Employees/Cutterz- They will be the one to actively carry out the hands-on tasks of Cutterz
Ph.
IX. Operations

Resources needed:
Since it is a service business, it would most likely not require any raw materials and any
production costs.

• Capital - Php 30,960 (atleast, to cover up the expenses)

a capital invested by the owner to initially fund the business to start. Can be made in
forms of loans, bank financing or cash.
• Staffs - Php 16,800 (first month)
initially, any business should start with hiring employees to deliver the services. May be
a relative, family member or colleague.
• Business registrations/permit - Php 4,000
Any business should first have legal essentials. In order to ensure that the business will
pay its taxes and will not infringe other businesses.
• Mobile app developer - Php 20,000
Cutterz Ph will be needed a technology developer in order to create the mobile app that
will be used for booking services.
• Marketing Strategy - Php 7,000
Since we are a start-up business, a good marketing team will be needed in order to
penetrate the market.

X. Projected Timeline

INCOME STATEMENT

UNIT COST MONTH 1 MONTH 2 MONTH 3

Service rendered 60 100 200

Service Revenue 350 21,000 35,000 70,000

Variable Costs 280 16,800 28,000 56,000

(breakdown below)

Contribution Margin 70 4,200 7,000 14,000

Fixed Costs 9,000 9,000 5,000 5,000

Income before tax (4,800) 2,000 9,000

Income tax (240) 100 450

Net income (4,560) 1,900 8,550

Profit margin (after tax) -22% 5% 12%

Variable costs

Direct Labor 280 16,800 28,000 56,000

 INCOME STATEMENT

Fixed Costs

Marketing costs 2,000

Administration expenses 2,000 2,000 2,000

Travel and development 2,000 2,000 2,000

costs

Internet marketing costs 3,000 1,000 1,000

Total Fixed costs 9,000 5,000 5,000

The projected Income statement above is made with the lowest amounts/revenue as
possible to avoid over calculating the amounts. I also made it that way in order to avoid
expectations and also to promote proper handling of money and expenses.

For the first month, it is expected that the venture will normally have a net loss or a low
net income for it is only starting. Thus, for the succeeding months, it is expected the the business
will somehow grow slowly and make larger profits.

XI. Contingency Plans

• Regular reporting and meetings - the employees, along with the managers and other higher
officers should conduct regular meetings in order to have an idea regarding on the problems
that the hands-on employees have been encountering. It will also serve as an outlet where they
would plan and seek for new ideas and solutions.
• Training and development - there will be trainings to be held in order to measure the
capabilities of the employees and help them on what they need to improve on. It will also be a
great team building exercise at the same time.
• Customer service - Cutterz Ph will be providing a customer service hotline/email to allow
feedbacks and to recognize the concerns of the customers.
• Public relations - along with customer service, in case of any negative feedback or backlash —
a public relations committee shall be able to handle these cases to protect the company’s
reputation.
• Changes in the business environment - competitors cannot be avoided, and so the company
shall be able to prepare for these aggressive competitors. There will be stronger marketing
ideas and promos/discounts will also be given occasionally to promote the business.