D.

VIVO ACCOUNTING SERVICES

BENROSI V BUILDING, 9746 KAMAGONG ST., MAKATI
7005 9252 / 09158288685 / dvivoaccounting.com

DV BUSINESS SOLUTIONS FRANCHISE

Ideal Candidate to Franchise?

You’re an accountant, IT staff, BPO Team Leader, industrial engineer, doctor, dentist, entrepreneur or
consultant in any field currently helping the entity you are working for and helping people for several
years, maybe even longer. Clients admire your strong sales background, excellent customer service,
solid work ethic and reputation for integrity. Given all of these hardwork and perseverance you still
haven’t received the rewards and benefits that you deserve. You want to change your life and achieve
financial freedom, but it isn’t happening. You want to enter a business of your own but doesn’t know
how. People might offer you several opportunities like franchises in food, fuel, or in any trading
industry but you think that it is not your field of expertise or your line of interest, this DV BUSINESS
SOLUTIONS FRANCHISE might be the best opportunity of your life!

INITIAL INVESTMENT

DV BUSINESS SOLUTIONS Franchising Opportunity

Franchising Fee ₱ 100,000.00

Leasehold Improvements 100,000.00
Office Furniture and Computer Equipment 50,000.00
Operating Capital 298,000.00
Total Capital ₱ 548,000.00

Breakdown of Operating Capital: 5

mo. rent x ₱ 20,000.00 100,000.00
2 mo. Light, Water, Internet x ₱10,000.00 20,000.00
2 mo. 2 Accountants’ salaries x ₱20,000.00 80,000.00
2 mo. 2 Admin Assistants’ salaries x ₱12,000.00 48,000.00
2 mo. Staff Training (₱5,000.00 x 4 staff) 40,000.00
2 mo. miscellaneous x ₱5,000.00 10,000.00
Total ₱ 298,000.00

Monthly Expenses
₱ 30,000.00
Rent, light, water, internet
2 Accountants’ salaries 40,000.00
2 Admin Assistants’ salaries 24,000.00
Staff Training 20,000.00
Miscellaneous 5,000.00
 Total ₱ 119,000.00

Break-even Point (Revenue per Month) No 125,000.00

Royalty Fee!
Advertising Fee: 2% of the total monthly gross revenue Franchise Fee:
P100,000 only!
Revenue Projection for the first year of Operation

Very Achievable Target :To achieve payback period within 12 months upon commencement
of operations
 Franchise with Ongoing Training & Support

We want you to succeed as a new franchisee, so we’ll make sure you receive the training and
support necessary to do so.

DV BUSINESS SOLUTIONS management will provide franchisees with a week- long

initial training at the designated Franchised Business Office , or another designated
location, starting about two to four weeks before your scheduled business opening. Early
instruction covers administrative, operational, sales and marketing details and includes a
generous amount of on-the-job training to familiarize you, and the admin assistants and
the accounting supervisor and accounting manager, with our services.

Onsite Training

Our tax preparation franchise opportunities include further training that involves one to two
weeks of onsite instruction provided by an experienced DV BUSINESS SOLUTIONS
representative at your location.

Occasionally, training may involve a job shadowing, or ride along, during a client visit made
by a current tax professional. Commencement of operations is contingent upon the franchisee
successfully completing Phase I training, and continued operations depends upon the
subsequent completion of Phase II training. Franchisees may need to return to corporate
headquarters for additional instructional programs at a later date.

We’ll train you to become qualified DV BUSINESS SOLUTIONS franchisees and guide your
continued success through support programs designed to keep you and your employees current
and connected.

Ongoing Support
 Marketing Support — DV BUSINESS SOLUTIONS will coordinate
development
Field supportofmayadvertising materials and
include a once-annual strategies
on-site toa benefit
visit by all franchise
management network
team member to
members. We’ll also supply franchisees with consumer marketing plans and materials
ensure that operations, territory management and franchise agreement compliance are in
useful
order.at the local or regional level.
 Site Selection — You’ll be given parameters for site selection and final approval
Examples
will of our
come from us.support programs
As franchisor, weare:
may further help franchisees with lease negotiations and
build-out process management.
 DV ACCOUNTING FRANCHISE

 Purchasing — DV BUSINESS SOLUTIONS or its affiliate will negotiate quantity discounts on

behalf of all franchisees, passing along some or all of these savings. This includes items like business supplies,
marketing materials and other essential items for operating a DV BUSINESS SOLUTIONS location.
 Accounting/Audit/Legal — This department, responsible for the financial and legal oversight
of franchisees, reports directly to the administration. Though franchisees may choose to do their own tax
preparation, we’ll provide support and guidance on how to managebooks.
 Ongoing Research and Development — DV BUSINESS SOLUTIONS management is
committed to researching franchise operations methods and techniques on an ongoing basis so that we may
encourage
unit-level profitability. We’ll keep track of any tax code changes to ensure best practices are in place for
operational innovations, ongoing training and support.
 Franchise Sales and Overall Program Oversight — As sales goals are met and the franchise
network expands, DV BUSINESS SOLUTIONS expects to hire additional support personnel as needed. Our
management team will work with Accurate Franchising to run the franchise company and manage the new
work that accompanies its growth.

DV Accounting is a consulting firm engaging with End to End Business Registration, Management Advisory,
Accounting and Tax Compliance services, owned and run by Danhilson Vivo, CPA with Main Office in Makati. In
order to help Filipino Micro Small Medium Enterprises (MSMEs) which comprises more than 95% of Philippine
Economy. This Franchise Proposal has been created in line with the mission to help Develop Visionaries that will
boost Philippine Economy and improve the lives of Filipinos. This business plan organizes the strategy and tactics for
the business expansion and set objectives for growth over the next three years.

The business will offer clients bookkeeping services with the oversight of a CPA at a price they can afford. To do
this involves hiring undergraduate student bookkeepers and a graduate student manager, keeping fixed costs as low
as possible, and continuing to define the expertise of DV Accounting.

Objectives

DV Accounting seeks to launch a Franchise Opportunity for qualified candidates. DV Accounting has set the

following objectives for every Franchised Businesses:

 To launch the services slowly, beginning with four staff:

One (1) Accounting Manager (Shared Service - will be assigned at DV Main Office) One (1)
Accounting Supervisor (To be deployed to the Franchised Business Office) Two (2) Admin
Staff (To be deployed to the Franchised Business Office)
  To achieve payback period within 12 months upon commencement of operations.

Mission

DV Accounting seeks to provide a full suite of tax and management accounting services for small
businesses in the Philippines, allowing business owners to not only save money over in- house
accounting and ensure their compliance with tax laws, but to make valuable management decisions from
their numbers.

Keys to Success

The keys to success for the accounting business include:

 Building trust with clients

 Maintaining up-to-date CPA certification and education on accounting practices and laws
 Going beyond saving clients money to proposing how they can increase their revenues
 Legal and ethical practices when it comes to transparency, reporting, and saving taxes

Company Summary

DV Accounting is a consulting firm engaging with End to End Business Registration, Management Advisory,
Accounting and Tax Compliance services, owned and run by Danhilson Vivo, CPA with Main Office in
Makati. Currently the firm has offices in Manila, Muntinlupa, Caloocan, Batangas, and Pangasinan.

Company Ownership

Danhilson Vivo is the founder and 100% owner of DV Accounting (D. Vivo Accounting Services), a sole
proprietorship firm.

Company’s Recent Performance

DV Accounting has grown significantly in past years to PHP4,000,000 - PHP6,000,000 in total annual
revenue, but has had difficulty taking on expanding to Revenue District Offices outside Metro Manila due to
proximity limits. Majority of MSMEs prefer to deal with consultant near the area even if they are not really
qualified to do Accounting, Tax Compliance and Consulting Services. Client retention has been a positive
factor, with 95% of 2021 clients repeating service in 2022.

Current services offered by DV Accounting include:

Business Registration:

 DTI Registration
 SEC Registration (One Person Corporation/Regular Corporation)
 Business Permit
 BIR Registration
 Printing of Invoices/Receipts
 PCAB
 PHILGEPS
 FDA
  Trademark, Patent and Copyright
 HALAL Certification
 Business Closure

Accounting Services:

 Accounts Payable Management

 Accounts Receivable Management
 Bank Reconciliation
 Financial Statements Preparation

Tax Compliance:

 Monthly and Quarterly Tax Returns and their related attachments as applicable
 Annual Income Tax Return
 SSS, PHILHEALTH, PAGIBIG Monthly Contribution
 Estate Tax
 Donor’s Tax
 Title Transfer

Corporate Secretarial Services:

 Drafting of Board Resolution

 Preparing GIS

Audit Services:

 Audited Financial Statements for BIR and SEC Compliance Purposes

 Internal Audit

Recruitment Services:

 Manpower provision
 End to End Recruitment Process

Market Analysis Summary

The small business accounting market consists of practically every small business in the Philippines. As
businesses grow larger than one person sole proprietorship, they generally require expert help with at least their
tax preparation, and often with additional bookkeeping and accounting services. Even many non-employer sole
proprietorship will use accounting help at some point. While some small businesses hire bookkeepers or
accountants directly, many successfully outsource these types of services.
 The accounting service market as a whole includes the following:

 Big Partnership Firms: The "Big Four" (PricewaterhouseCoopers, Ernst & Young, Deloitte, and
KPMG) and their competitors
 Small Partnership Firms
 Individual Practitioners

Source : https://www.dti.gov.ph/resources/msme-statistics/

Market Segmentation

The market of small businesses in Philippines represents approximately more thant 95% of businesses in the
Philippines. It has been divided into three groups:

Non-employer firms/Professionals/Freelancers: Without employees, these firms do not have many of the
concerns of larger businesses. However, the owners must be vigilant to protect their own tax liability and sort
out how their personal and business tax returns intersect.
 Very small businesses: Made up of businesses that are designed to stay small and those which are growing
through a phase, these businesses require payroll services, bookkeeping, and tax preparation. They are
concerned about losing control, but can generally be convinced of using outsourced accounting and
bookkeeping with cost analysis. With the stakes higher, these businesses can make greater use of
management accounting services, especially as most cannot afford a dedicated inhouse accountant. Many do
not need a full-time accountant, but can make do with part-time help, which limits their hiring options.

Other small businesses: Many of these businesses will have some in-house financial management and
bookkeeping help. However, they may be able to save money by outsourcing these services, as they are not
generally core to what the business seeks to do. These businesses may be comfortable with their situation as a
cash producer for their owners or intent on growing or positioning themselves for sale.

Target Market Segment Strategy

DV Accounting will focus on the "very small business" target group for its bookkeeping services as this
group can make the most consistent use of part-time accountants. The type of accountants whom these
businesses would hire are generally unqualifed personnel. However, these businesses often do not have the
resources to provide proper oversight or training to their accountants, and will suffer from not having the
leverage to hire the cream of the crop. DV Accounting can provide the solution to these problems.

Service Business Analysis

The small business accounting industry consists of numerous independent accountants and bookkeepers
as well as many small firms. Larger firms tend to pursue medium and large business clients.

Accounting and bookkeeping services are purchased by owners and top managers of small businesses. They
will contact businesses by phone and generally meet in person (at the client's office) to interview and discuss
the prospect of working together.

For bookkeeping services, the business also must compete indirectly against the prospect of businesses hiring their
own part-time bookkeepers. This gives businesses the advantage of greater control and perhaps development of a
future full-time employee. If the hire works out, the cost can be lower for a business than an outside service.
However, this can lead to employees who are not as well-educated or experienced as bookkeepers through a
bookkeeping service who have worked with a range of businesses. Generally, the cost is lower in the long run with a
bookkeeping service, as training is done more systematically and supervisors are more regimented and experienced.

To choose between competitors, factors considered by clients include:

 Positive references (especially from known sources or other businesses in the same industry)
 CPA leadership (protects the businesses, even if work is being performed by non-CPAs)
 Price (often low on the list of considerations, as long as price is not exorbitantly high)
Web Plan Summary

The website for DV Accounting presents a simple, uncluttered look which holds a great deal of information
about services offered beneath its surface and beyond its homepage. The purpose of the website is to assure
clients and potential clients of the expertise of the company and then inspire them to call for a phone or in-
person consultation.

www.dvivoaccounting.com

Marketing Strategy

To market the Franchised Business, many of the current tactics will be maintained, but supplemented.

 Social Media
 Website
 Networking
 Flyer, Business Cards
 Partnership with Schools/Universities/BPLO/BIR to promote Tax Compliance
 Free Webinars

All of these marketing activities will be facilitated by DV Accounting.

The website and other social media platform will be expanded with additional information about best
practices of Accounting including NEW FRANCHISED BUSINESSES and Territories.
Development Requirements

The website/social media page redevelopment will require the marketing service provided by
DV Accounting to the Franchised Business tocreate new pages based on the template created
by DV Accounting.

Strategy and Implementation Summary

To promote the business to its target of businesses, DV Accounting will:

 Expand its Social Media and Web presence through social media and website
development and marketing
 Initiate a systematic client referral program to prospect within existing
clients andtheir contacts
 Use print ads in local business publications to target small business readers

Competitive Edge

DV Accounting will achieve a competitive edge among Chicago bookkeeping services due
to its combination of CPA oversight with lower-level, inexpensive labor. Clients will receive
the advantage of having a CPA review their books and propose additional advice when
appropriate, while not paying much more than they would to hire their own part-time
bookkeeper.

This is not an inimitable competitive edge, but the market in Chicago is large enough to
allow for the success of DV Accounting with this strategy. Large firms ignore the small
business market because they are better positioned to serve larger businesses. They are
unlikely to imitate this strategy as they will find it difficult to convince small businesses
that they can offer services which are affordable to them.

Marketing Strategy

DV Accounting will use the following marketing tactics to reach its target market of small
businesses with its new bookkeeping services:

 Website marketing (detailed in the Web plan section)

 Social Media Marketing
 Local Promotion
 Networking
 Partnership with Universities and Colleges to promote Tax Compliance

The marketing messages will focus on the economics of the decision to use outsourced
bookkeepers from DV Accounting and the advantage of CPA oversight.