University of Eastern Philippines

BUSINESS PROPOSAL

UEP Builders Hardware Store

UEP ZONE II, CATARMAN NORTHERN SAMAR
09457056748

TABLE OF CONTENTS

I. Introduction
A. Background of the business
B. Benefits to the community
C. The Business Goals
A. Vision and Mission
B. Objectives
II. Executive summary
A. Marketing plan
B. Production plan
C. Organization and management plan
D. Financial plan
E. Financial statement
F. Critical analyses
G. Social significance
Background of the business
UEP Builders hardware store is a retail business that sells products/tools used in
construction and home improvement. These can include building materials, fasteners, power
tools, hinges, locks, keys, plumbing supplies, cleaning supplies, electrical supplies, tools,
paint, housewares, garden products, and lawn products. This business was put together by the
owner because of his background in the engineering field, with the knowledge that the owner
had, using it as an inspiration to build a business. Furthermore, there are no hardware stores
present in the area making this the first-ever to open, helping the business to thrive.
Buyers buy vital products and equipment for homes and businesses. Customers
efficiently can buy products that improve lives and boost productivity. It’s usually where
contractors and homeowners turn to whenever they need to either purchase materials,
hardware tools, and finishes for their home or analyze a home problem that requires an
immediate solution. As the world continues to adapt and develop, the need for hardware
materials used in infrastructural development is becoming more on-demand.
This business, a sole proprietorship, needs workers that will help in providing all the
needs and suggestions for the business to grow and become stable. A hardware store is a
profitable business and is a good idea for aspiring entrepreneurs to establish.

Benefits to the community

Having a hardware store in the community is of great importance it holds and
organizes the tools, values, and knowledge that bind a community and define a
worldview. There’s a material and social sensibility embodied in the store, its staff,
and its service, and reflected in the diverse clientele. And the hardware store is a vital
social infrastructure, integrating the civic and commercial spheres. Particularly in
small towns hardware stores can function as social spaces where the working class
congregates and consolidates and negotiates cultural differences.

Business Goals: Vision and Mission

I. EXECUTIVE SUMMARY
UEP Builders Hardware store is a new retail shop which is going to be established in
UEP Zone II, Catarman N. Samar, a sole proprietorship owned by Mathematics Major. The
store will sell tools, construction equipment, paint, plumbing materials, electric supplies, and
even hardware finishes and interiors for your home. As our community grows and expands,
the need for materials found in hardware stores rises and the demand increases. And so, UEP
Builders hardware store will offer affordable prices to the local market since its target market
is in the nearby vicinity and the location of the store is easy to find and access.
UEP Builders Hardware store will be operated by its partnership. The store will have
a total of two employees. It will sell its products in the local market. Customers will buy our
products because we will provide free advice on the use of all of our products and will also
furnish a full refund warranty.
A. Marketing Plan
UEP Builders Hardware store will operate in the local market. There are a lot of potential
customers in this market area due to the fact that our community has a lot of room to flourish
because it is still growing. This business will also target construction companies that will
need supply. The location would be in UEP Zone II, along the national highway because of
its accessibility and can attract potential customers that will drive through it. We have zero
competitors at present. The store will sell tools, construction equipment, paint, plumbing
materials, electric supplies, and even hardware finishes and interiors for your home.
With social media as a trend, it is easy and convenient to promote the business using the
said platform. Allowing us to attract more customers. The price of the products will vary
depending on the brand but it is within the acceptable range.
B. Production Plan
Since a hardware store sells many kinds of products. A production plan must be built. In
getting the supplies to sell, I must have a trustworthy supplier to get my products. In order to
provide good quality service to a wide range of clients and of course to make profits, which is
why we will go all the way to make available a wide range of hardware and other related
products from top manufacturing brands. In order to start this business, a fixed capital of Php.
2,000,000 will be used through the owner’s savings. Ensuring that the people for the job are
qualified, honest, customer centric, and ready to work to help build a prosperous business that
will benefit all the stakeholders. Minimum wage salary will be given to the workers.
The workers will also be given a holiday and have bonuses for their services. For the
maintenance and the repairs of the store. Hiring a specialist in order to avoid unfortunate
events and damages. The safety of the customers and the workers is of priority.
C. Organization and Management Plan
This business is a sole proprietorship managed by the owner and with the help of its
trustworthy personnel. The structure of the organization is headed by the owner and its
employees. The owner’s qualification in building this business is its background in the field of
engineering. Before operating the business, pre-operating activities will be taken place. This
will include visiting the location, regulatory costs and marketing research. The major
equipment involved in the business are counters and shelving, a computer, cellphone, a paint
mixing machine, and a truck. An estimated amount of Php 18,000 will be administered in the
administrative expense.

D. Financial Plan
Underlying Assumption
1. The price of the products may change due to economic factors.
2. Cash beginning balance will be provided in order to meet daily cash inflows.
3. All purchases and sales will be strictly on a cash basis only.
4. The product will be sold at a fixed price.
5. The owner will be the manager and treasurer of the business.
6. There will be one driver and one staff that will assist me in attending to the
customer’s needs.
7. The truck costing 600,000 will be depreciated over a 15-year useful life. The 90% of
depreciation expense will be allocated to Factory Overhead and 10% will be allocated
to selling expenses.
8. For simplicity purposes, assume that the tax rate will be 32%.

A. Projections will be made for a time period of 1 month only.

A. TOTAL INVESTMENTS

ORGANIZATION COST

CASH P 500,000
STORE SUPPLIES 550,000
TRUCK 600,000
LAND 40,000
OTHER EQUIPMENT 150,000
STORAGE P 400,000
TOTAL INVESTMENTS P 2,240,000

B. PROJECTED DAILY CASH OUTFLOW

PURCHASES@500 P 90,000
FREIGHT IN:
WAGES P 400
GASOLINE 1,000 1,400
FREIGHT OUT:
WAGES 400
GASOLINE 700 P 1,000
TOTAL DAILY CASH OUTFLOW P 92,400

C. PROJECTED DAILY CASH INFLOW

 SALES@500 P 110,000
TOTAL DAILY CASH INFLOW 110,000

D. STATEMENT OF FINANCIAL POSITION-BEGINNING

UEP Builders Hardware Store

ASSETS
Current Assets
Cash P 500,000 P 500,000
Non-current Assets
Land 40,000
Truck 600,000
Other Equipment 150,000
Storage Room 400,000 P 1,190,000
Total Assets
LIABILITIES AND OWNER’S EQUITY
LIABILITIES
Loans payable
Notes payable
OWNERS EQUITY
Mr. Alba’s Capital P 1,190,000
Total Liabilities and Owners Equity P 1,190,000

E. INCOME STATEMENT
 INCOME STATEMENT

REVENUES
Sales P 50,500
TOTAL SALES P 50,500
EXPENSES
Salary Expenses 1,000
Gasoline 500
Miscellaneous Expense P 7,000
TOTAL EXPENSES P 8,500

NET INCOME P 42,000

a. Return on Investment = Net Income/ Total Assets =42,000/2,240,000=0.01875 =

1.9%
b. Payback Period = Total Assets/Net income =2,240,000/42,000= 53.3 yrs.
c. Gross profit ratio = Gross Profit/Total Sales = 42,000/50,500 = 0.83 = 83%
d. Net Margin Ratio = Net Income/ total sales = 42,000/50,500 = 0.83 = 83%

H. FINANCIAL STATEMENT
The projected sale for 1 month is amounting to Php. 3,300,000 wherein the daily
projected sale is just 100 units at a price of PHP. 1,100 per product and a net income
becomes Php. 528,000 assuming 30 days of cash outflow.

I. CRITICAL ANALYSES
Risk is always present in any form of business. It is important to know the market and
make sure that the targeted number of equipment is sold. Knowing the risks that there will
be days where there will be supplies that will be delayed and not be able to maintain the
projected sale of 100 units per day.

J. SOCIAL SIGNIFICANCE
 The business offers opportunities to construction workers, homeowners, engineers,
and companies that are in need of our products. In order to have an efficient number of
supplies required for constructing buildings and deigning them. It will also offer possible
employment to the locale.