ARELLANO UNIVERSITY – JOSE ABAD SANTOS

SCHOOL OF BUSINESS AND ADMINISTRATION

A Business Plan in Partial Fulfillment for the Subject

MM 37 – Entrepreneurial Management
Mon – Tue 10:30 AM – 12:00 PM

Submitted by:
Alegre, Danmar S.

Submitted to:
Ms. Tonne Crizelle N. Agulto

May 2023
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 ARELLANO UNIVERSITY – JOSE ABAD SANTOS
SCHOOL OF BUSINESS AND ADMINISTRATION

TABLE OF CONTENTS

Cover Page ……………………………………………………………………………………………………………………….. 1

Table of Contents ………………………………………………………………………………………………………………
2

Business Aspect ……………………………………………………………………………………………………………. 3

Name of the business ………………………………………………………………………………………………………..
3
Logo and Tag-line Description ……………………………………………………………………………………………
3
Store location / Website description ………………………………………………………………………………….
4
Product Description …………………………………………………………………………………………………………..
5
Mission Statement …………………………………………………………………………………………………………….
5
Vision Statement ……………………………………………………………………………………………………………….
5
Objectives ………………………………………………………………………………………………………………………….
6
Mode of financing and investment …………………………………………………………………………………….
6
Pre-operating expenses ……………………………………………………………………………………………………..
7
Gantt Chart ………………………………………………………………………………………………………………………..
9

Organization & Management Aspect …………………………………………………………………………...

10
Organizational Chart ………………………………………………………………………………………………………..
10
List of Manpower …………………………………………………………………………………………………………….
10
Hiring process ………………………………………………………………………………………………………………….
11
Rules & Regulations …………………………………………………………………………………………………………
15

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 ARELLANO UNIVERSITY – JOSE ABAD SANTOS
SCHOOL OF BUSINESS AND ADMINISTRATION

Marketing aspect …………………………………………………………………………………………………………

16
Market description …………………………………………………………………………………………………………. 16
SWOT Analysis …………………………………………………………………………………………………………………
16
Marketing program (4Ps) …………………………………………………………………………………………………
17

Technical aspect …………………………………………………………………………………………………………..

19
Product flow ……………………………………………………………………………………………………………………
19
Manufacturing/ Service/ Retail Process ………………………………………………………………………….. 19
Purchasing process …………………………………………………………………………………………………………. 19
Payment options ……………………………………………………………………………………………………………..
20
Delivery procedure …………………………………………………………………………………………………………. 20

Business Aspect

Name of the business

The name of the business is DSA – GSTORE. The name is unique as it composes of

the initials of the Owner’s Name (Danmar S. Alegre) and Guitar Store with the initial G on

it. The name has no basis of inspiration, but with the passion the owner has on playing

instruments, that is the main of the naming the business as is.

Logo and Tag-line Description

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 ARELLANO UNIVERSITY – JOSE ABAD SANTOS
SCHOOL OF BUSINESS AND ADMINISTRATION

Here is the official Logo of the business and the tagline is: “Music Never Dies,

RakEnRollTayo!”. The logo is simple, a guitar, the company name and activity and tagline

are placed as well. The color, which is monochromatic black, is the color for people who

love rock music. It will be lighted on the store display.

Store location / Website description

The store shall then be located at Blk 10, Lot 8, Kalayaan Village, Brgy. 201 Zn. 20,

Pasay City, 1300. The reason for putting the store on a house that is to be renovated

because of the following: It is near the schools (Kalayaan Elementary and National High

School), near the Barangay and Police Stations, near the church (Our Lady of the Most

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SCHOOL OF BUSINESS AND ADMINISTRATION

Blessed Sacrament Parish) and near the park as a lot of people are going in specially in the

afternoon.

A Facebook, Instagram, and TikTok page will be created before the start of

operations and will do initial posting before the said month as there are possible inquiries

and will cater the Brick and Click Approach. Online Selling Platforms (Lazada, Shopee, etc.)

will be penetrated once agreements have been made with the partners/investors.

Product Description

The business will cater both product/services. To expand this, in terms of products,

the business will sell Guitars (2 from partners Cort and Fender, and Lumanog guitars

created by our guitar maker from Cebu), Accessories such as Strings (Elixir, D’Addario,

Fender, and Alice) which can be sold per piece or set, straps, cases, capos, tuning pegs,

saddles, picks (all sizes), wires, tuners for electric and electric-acoustic guitars, Marshall

speakers, batteries, and other supplementary equipment for guitar setup/repair.

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SCHOOL OF BUSINESS AND ADMINISTRATION

In terms of services, the business acquires guitar creation (Lumanog), guitar repairs

and adjustments and a learning center for those who wanted to study and play guitar. The

fees are dependent on the sessions, what repairs to be made and the type of guitar will be

purchased.

Mission Statement

To bring enthusiasm and encouragement to everyone in terms of music and show

the love for it.

Vision Statement

To continue building a better environment everyday through music for people

through our lives.

Objectives

Short-term Objectives

 To be able to establish a learning environment of music starting in the barangay.

 Creating partnerships with other guitar brands.

 Initiate an event in the barangay which can influence a lot of people to have fun

through music

Long-term Objectives

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SCHOOL OF BUSINESS AND ADMINISTRATION

 Profit Maximization and ROI can be achieved in 6 years.

 Sponsorships from events (Muziklaban, Battle of the Bands and Concerts).

 Expansion of business line by adding products (pianos) and services (music school).

Mode of financing and investment

Please see table for the initial capital and investment, including those who will be

investing in the business, as they can be considered as partners.

Investor Name Amount of Investment

Danmar S. Alegre (owner) ₱ 2,500,000.00
Eliakim Ingente ₱ 500,000.00
Michael Salvador ₱ 300,000.00
Irine Darsje ₱ 200,000.00
Total Investment ₱ 3,500,000.00

Pre-operating expenses

Here are the pre-operating expenses following the Gantt Chart and all expenses are

deemed recorded from the initial investment down to the final cash remaining for the

month. Please take note that there are one-time charges and shall not be present on the

recurring months. In addition, there is no prepaid rent as the house and lot has been

purchased already, and the excise tax for 4 years has been settled.

Pre - Operating Expenses Amount

Construction (renovation) Expenses ₱ 350,000.00
Equipment ₱ 153,897.00
Furniture and Fixtures ₱ 152,800.00
Utilities ₱ 25,683.00
Supplies - Contract based - with repair ₱ 1,500,000.00
Permits and Licenses ₱ 4,200.00

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 ARELLANO UNIVERSITY – JOSE ABAD SANTOS
SCHOOL OF BUSINESS AND ADMINISTRATION

Classroom expenses (books, board, etc.) ₱ 21,200.00

Prepaid Salaries ₱ 153,400.00
Statutory Deductions Expenses ₱ 24,000.00
Total Expenses ₱ 2,385,180.00

Please see breakdown for utilities, salaries and equipment purchases. There is no

breakdown for furniture and fixtures as there are changes to the prices of the laborers,

which is included as they will work under contracts.

Equipment Purchase Amount

Laptop ₱ 48,999.00
Credit Card terminal (Maya Inclusive) ₱ 12,500.00
POS terminal ₱ 42,399.00
Desktop - backup ₱ 49,999.00
Total ₱ 153,897.00

Utilities Amount
Electricity ₱ 12,435.00
Water ₱ 2,300.00
WIFI - PLDT ₱ 5,698.00
WIFI - Converge ₱ 5,250.00
Total ₱ 25,683.00

Position Per Month Per Day SSS PhilHealth Pag-Ibig Tax

Cashier ₱ 15,600.00 ₱ 600.00 Y Y Y N
Sales person ₱ 15,600.00 ₱ 600.00 Y Y Y N
trainer/recruiter ₱ 22,100.00 ₱ 850.00 Y Y Y Y
Accounting ₱ 36,400.00 ₱ 1,400.00 Y Y Y Y
Advertising ₱ 15,600.00 ₱ 600.00 Y Y Y N
Guitar Maker ₱ 22,100.00 ₱ 850.00 Y Y Y Y
Music Teacher ₱ 26,000.00 ₱ 1,000.00 Y Y Y Y

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SCHOOL OF BUSINESS AND ADMINISTRATION

Here is the remaining amount that is considered cash for the period before the

official operation starts on September 2023.

DSA GSTORE
Statement of Owner's Equity
End of Month May 2023

Description Amount
DSA, Capital (Investments) ₱ 3,500,000.00
Less: Operating Expenses ₱ 2,385,180.00
DSA, Ending Cash ₱ 1,114,820.00

This is actual Ending Cash for May as the owner will be looking for more partners

and investors. Once this has been finalized, the updated Pre-Operating Expenses will be

recorded and in turn will start the operations.

Gantt Chart

Here is the roundabout schedule of the activities that were done from planning to

the anticipated store opening.

Jun- Jul- Aug- Sep- Oct- Nov- Dec-

Activity
21 21 21 21 21 21 21
Conceptualization              
Research              
Looking for investors              
Location Search              
Canvassing of Supplies              
Canvassing of Manpower of Construction              
Canvassing of Equipment and Furniture              

Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep

Activity
22 22 22 22 22 22 22 22 -22
Inquired on events                  

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management
Preparation of Investment                  
Contract Signing with the
                 
location owner
Start of Construction                  
Building furniture                  
Layout Preparation                  
Painting                  
Finalization of construction                  
Purchase of Supplies and
                 
Equipment
Registration with DTI and
                 
Barangay
Looking for additional brand
                 
partners and investors
Hiring of Personnel and Training                  
Anticipated Start of Operations                  

Organizational & Management Aspect

Organizational Chart

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 ARELLANO UNIVERSITY – JOSE ABAD SANTOS
SCHOOL OF BUSINESS AND ADMINISTRATION

Here is the full organization chart for the business. The investors have also their

roles based on their field of specialty. They will also cater selling products, teaching those

who wanted to learn for additional help. Also, the owner will be backing up in all

departments so that it can be monitored. The departments are Finance, Marketing, HR and

Relations. Here are the details for the rest of the positions.

List of Manpower

1. Accounting – Key responsible for ensuring accounting data is accurate and invoices

are safely kept and recorded on a timely manner

2. Cashier – Key responsible for recording purchases and sales, inventory of products

3. Sales Person – Key responsible for assisting customers on the inquiries, also selling

and endorsing the products

4. Soc Med/Advertising – Key responsible for posting on Online platforms and can

create advertising for the products being sold and the company

5. Training and Recruitment – Key responsible for recruiting employees and providing

them training on the aspects of the business

6. Music Teacher – Key responsible for training the learners and the members of the

Marketing team.

7. Guitar Maker/Repair – Key responsible on repairs, and making guitars

Hiring process

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SCHOOL OF BUSINESS AND ADMINISTRATION

For the hiring process for each position, here are the complete procedures to be

done.

1. Resume submission online or personal.

2. Assessment through 2 interviews (Recruiter and Owner)

3. Directory update once hired

4. Contract Signing/Acceptance of Offer

5. Pre-Employment Requirements Submission

6. Training/Refresher

7. Feedback and Coaching – For regularization (6 months)

8. Regularization

Here is the list of qualifications per position which should be adequate towards to the

position the person is holding.

Accounting

 Fresh Graduate of any Business-Related Course/Undergraduate completed 2 years

of college

 Preferably with Accounting/Bookkeeping experience

 Can Adapt to situations that requires multitasking

 22 years old and above

 Must have sense in recording transactions and basic accounting principles

Cashier

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SCHOOL OF BUSINESS AND ADMINISTRATION

 18 years old and above

 High School/Senior High School graduate/Undergraduate/Fresh Graduate of any

course

 Preferably with experience in being a cashier

 Willing to be trained for sales

 Has a sense of customer service

Sales Person

 18 years old and above

 High School/Senior High School graduate/Undergraduate/Fresh Graduate of any

course

 Preferably with experience in being a sales clerk

 Willing to be trained for cashier and how the industry works for music

 Has a sense of customer service

Soc Med/Advertising

 18 years old and above

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SCHOOL OF BUSINESS AND ADMINISTRATION

 High School/Senior High School graduate/Undergraduate/Fresh Graduate of any

course

 Preferably has Knowledge in terms of Music and basic Guitar playing

 Knows Basics of Online Advertising

 Willing to be trained for Digital Marketing

Recruitment

 Undergraduate completed 2 years of College/Fresh College Graduate of Psychology

or Human Resources Management

 Understands the value of music

 Willing to expand to engagement activities

Music Teacher

 18 years old and above

 High School/Senior High School graduate/Undergraduate/Fresh Graduate of any

course

 Well-versed to music, especially guitar training

 Preferably been into a band or orchestra, choir and willing to teach students

Guitar Maker/Repairman

 18 years old and above

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SCHOOL OF BUSINESS AND ADMINISTRATION

 High School/Senior High School graduate/Undergraduate/Fresh Graduate of any

course

 Knows everything about guitars and how to repair them

 Vast Knowledge of music and can even play

 Preferably has experience making Lumanog guitars (in Cebu or other parts of the

Philippines)

 Has a sense of customer service

Rules & Regulations

 Communication – Everyone should be notified on absence, tardiness or other

emergencies. Everyone is open to feedback and recommendations.

 Respect – Everyone is treated fair and square, open culture and a fun environment.

 Law – All matters, contracts, and HR-related concerns are connected with the Labor

Code and the Code of Conduct.

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SCHOOL OF BUSINESS AND ADMINISTRATION

 Fraud and Negligence – Any instance of Fraud/Negligence will be investigated

before a sanction will be given. Justifications can be considered but a due process

will be done.

 Customer Treatment – Treat each customer the way they should be treated, which

is with respect. Failure will be subject to corrective actions. Exhibit patience.

Marketing Aspect

Market description

The target markets for this business are the following: students, whose parents

have purchasing powers and they themselves can purchase, employees, church workers,

and other people whose hobby is entirely focused on music. Even the first timers are also a

target as they will be learning from the center that the store is servicing with.

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SWOT Analysis

Strengths Weaknesses
Only Guitar Store in the area, the nearest is Traffic going to the store location for non-
SM Bicutan/MOA which is far Pasay residents
Accessible to Guitar Enthusiasts in Pasay Since this is a start-up, only partnered with
and Paranaque 2 guitar brands
Focuses on Quality on all products,
partnered with 2 major brands and creating
Lumanog guitars
Only Guitar Store with a Music School and
 
major repair services
Opportunities Threats
Indirect Competition amongst Outlets
Expansion of instruments being sold (Lazer, D&D, JB Music, Lyric, etc.) based on
location
Expansion of Services and Learning New Entrants
Creation of Own Brand  
Expert guitar creation and repair services
 
outsourced in Cebu

Marketing program (4Ps)

Products/Services

The products to be sold are guitars (Cort, Fender and Lumanog), accessories and

speakers, all which have concerns for repairs and replacements and can be utilized. For

services, the business will cater guitar making, guitar repairs and guitar teaching/learning.

The products are original and supplied from the companies abroad and locally, and the

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SCHOOL OF BUSINESS AND ADMINISTRATION

makers are from Cebu. A teacher will be hired, and the owner and 1 investor can also teach

the students on playing guitar.

Price

In terms of prices, this will depend on the market standing of each accessory, guitar

and speaker. There will be a differentiation as the method is cost-based pricing, which will

hold a markup, a smaller percentage than those of the famous stores, but the quality is

original. Also, in terms of services, a standard fee will be made a layout and includes the

guitar lessons provided.

Place

The location of the business is a residential, turned business location, which is very

secure as it is near the barangay hall and police station. This location captures the school,

church, park and the residents. The place is conducive for everyone as there are a lot of

people going out to buy anything and can visit the store on its operating hours.

Promotion

Here is the list of the promotion strategies that the business will move into during

the first 3 months of operations. Please take note that there are exceptions and the

promotion will move along as time goes by and will depend on the profit earned on the

store.

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SCHOOL OF BUSINESS AND ADMINISTRATION

 Digital Marketing – Ads will be created and postings will be done online through

the social media platforms (Facebook, Instagram and TikTok). Understanding the

view of analytics, a trend file shall be initiated at first manually and see how many

viewed on the platforms.

 Traditional Advertising – Flyers will be distributed although the barangay (other

barangays as well), a tarpaulin to be presented to the store and influencing all

music enthusiasts through word of mouth.

 Events – The business will partner with companies who are holding music events,

so that they can buy products/services and at the same time, promote the store.

 Freebies – The business will also give away freebies for those who are to purchase

guitars in the store and the first 15 people to enroll in the guitar lessons.

 Guitar Lesson packages – The business will render lessons on rates that are friendly

and affordable to the learners and guardians/parents.

Technical Aspect

Product flow

The product flow that the business will follow is in accordance with the partners’

agreement through contracts. It will begin on the delivery of supplies coming from the

partners, arrangements inside the store, and presence of the personnel for selling.

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Manufacturing/ Service/ Retail Process

For manufacturing, since Lumanog guitars will be created, it will start on the

purchase of wood/lumber satisfied with guitar, specifically Mahogany wood, which is

perfect for guitars. Once delivery is done, the guitar maker will make the guitar and

present it to the store for viewing. In terms of services, the repairman will assess the

guitar, and following the procedure of recommending the parts needed, with the

agreement of the customer, and the payment comes on the last part. For the retail

process, the business, a display will be shown so that each customer can see and test the

guitar, accessories will be shown behind the cashier, and recommendations will be given

by the sales person. Once customer agrees, comes the payment and pickup.

Purchasing process

For the purchasing process, all inquiries can be done both personally and online

through the online platforms. The sales person will guide them on choosing the perfect

guitar/accessory for them to purchase, and once decided, payment comes through and

delivery/pickup will be done.

Payment options

The payment options that will be considered are as follows: Cash, GCash, PayMaya,

Credit Card, Debit Card and Online Bank transfer. These payment options are being used as

well by the famous stores and the business will be partnering with banks so that everything

is well tracked and recorded.

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SCHOOL OF BUSINESS AND ADMINISTRATION

Delivery procedure

The business will cater pick-up and delivery. Since there is still no partnership on

the Online Selling platforms, the business will deliver thru LalaMove, Moveit, and Grab.

Also, the investor can deliver if it is nearby and barangay wide.

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