BUSINESS PLAN

TEAM MEMBERS:

JULIE CORTEL
REXCELLE TERNE
ANGEL ROSE DOLOR
JOSHUA LEE FLARES
JONNA KIM OLIVEROS
RECEL BALINGCONGAN
CHRISTINE JADE DIAZ
DIANNA ROSE ALINGAYAO

Team Leader Contact Number

+639388426971
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Table of Contents

Executive Summary

CHAPTER I-Introduction
Background 1
Vision 2
Mission 2
Goal 2

CHAPTER II-Management
Form of Business Organization 3
Organizational Structure 3

CHAPTER III-Marketing
SWOT Analysis 6
7P’s of Marketing 6
Target Market 8

CHAPTER IV-Production
Machineries and Equipment 9
Materials 9
Steps in Tote Bag Making 9

CHAPTER V-Finance
Project Cost 10
Expected Income Per Day 10
Projected Statement of Comprehensive Income 11
Projected Statement of Changes in Owner’s Equity 12
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Projected Statement of Cash Flow 12

Projected Statement of Financial Position 13

CHAPTER VI-Future Plan

Conclusions and Recommendations 14

List of Tables:
Table 1:SWOT Analysis 6
Table 2:Projected Cost 10
Table 3:Projected Cost Per Color
10 Table 4:Cost of Bag 2GO (Tote Bag)
10
Table 5:Projected Cost Daily 11

List of Figures:
Figure 1:Organizational Chart 3
Figure 2:List of Machineries and Equipment 9
Figure 3:List of Materials 9
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Executive Summary

‘Bag 2GO’ is a bag selling business in Roxas Avenue,

Roxas City. The product is tote bag which is in demand in
this generation, trendy and fashionable which attracts the
customers.

The target customers are the students of Hercor College

Riverside, as well as the people around the Roxas Avenue,
Roxas City. They can buy the product for only 50 pesos. As
the business major target customers are the students of
RCSPC, satisfied because of the quality, texture, color,
design and durability of the tote bag.

In addition, word of mouth communication or customer

referrals will be a great help for promotional aspects,
they can promote the business in several ways such as
telling their friends, family and relatives that the
product is good and has a great satisfaction and acceptable
in making tote bag.
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Chapter I
Introduction

Background

The owner is inspired to put up this business because

the owner loves bags that easy to carry around in any kind

of events like shopping and even in school. The owner came

up with the idea of making a different style and color of

tote bags so that the customers can choose what style or

color they prefer to buy. One of the most important thing

in creating this kind of business is that it should be

clean and neat yet affordable. The owner wants to prove

that she and her members will give a good service and

satisfaction as well as to bring a big smile and love to

customers. Additionally, to attain the desired profit in

the business. The owner believes that the business will

become successful and famous in the local industry.

Bag 2GO is a type of business who sells tote bag, The

name ‘Bag 2GO’ is deeply rooted for this business because

when there are customers who are willing to buy our

product, there are already a finish product where the

customers are allowed to choose from. The Business is owned

by Dianna Rose Alingayao. This is a sole proprietorship

organization in Roxas Avenue, Roxas City, Capiz.

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Bag 2GO provides satisfaction and benefits that will

suits in today’s generation, it is a trendy bag that

usually teenagers
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used now a days because aside from it is usable in any

occasion, pricing if this kind of bag is much affordable

compare to other typical bags that students use.

Vision

This business aims to make our business a successful one in

a local market for us to know if we should make our
business bigger or not.

Mission

 To serve out customer a good quality of tote bags.

 To provide affordable but quality product
 To provide our customer an enjoyment in using our
product

Goal

The goal of this business is to provide them a good service

with satisfaction and eco-friendly product that will be
beneficial for their daily needs and also be an option to
help reduce waste.
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Chapter II

Management

Form of Business Organization

The management includes forms of Ownership where in the

owner and its staffs function will discuss.

Organizational Structure

Figure 1:Organizational Chart

WORKER 1
MANAGER
OWNER WORKER 2

WORKER 3
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Human Resources Needed

OWNER
The owner is the one who control everything including the

supervising/managing of income, handling the employees and

the also the one who approved all the suggestions of

workers.

MANAGER

Managers are responsible for achieving the goals and

objectives of an organization through managing its

resources (human, financial, and operational). Managerial

duties include, but are not limited to leading the team,

setting objectives, analyzing performance, making

decisions, and reviewing.

WORKER

Worker is the one who has the control in the

workplace, it is the one who’s responsible in preparing the

tools and making the product. Without the worker, business

cannot make profit.

Cashier – Responsible for receiving payment by cash.

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Sewing worker- Responsible for setting up and maintaining

their machines, selecting the appropriate thread, needles,

and stitching patterns, and guiding the fabric through the

machine.

Cutting worker- responsible for securing and cutting a

fabric.

The business will get the necessary resources needed in

supermarket.

Policies and regulation are the rules created by an

organization to control its behavior and can aid in the

development and success of the firm. The following are the

management policies and guidelines.

•Workplace safety

•Flexible working policy

•Maintain the cleanliness

•No smoking policy

•No gadget while working

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Chapter III

MARKETING

SWOT Analysis

Table 1:SWOT Analysis

S W
Strengths Weaknesses

Affordable Durability
Quality of Product Not Comfortable
Current fashion trend Design
Eco-friendly Fabric

O T
Opportunity Threats

School Competitors
Plaza Low Marketing Strategy
Online Inflation
Recyclable

7Ps of Marketing

Product
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BAG 2GO sells tote bags. It is a type of bag business

that will acceptable and satisfy to the target customers.

The purpose of tote bag, It can be used for work, school,

shopping, as a travel bag or even as a

beach bag.

Price

The price of this product is 50 pesos

only which is so affordable for every customer.

Place

The location of the business is at Hercor College

Riverside in Roxas Avenue, Roxas City, Capiz, Philippines.

Promotion

This product will be promoted using Social Media page

( Facebook or Instagram) for a quick and effective tote bag

selling process.
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People

The target market for this product are teenager, young

adults and middle adults.

Packaging

Instead of expensive packaging, a tag is enough. Catchy and

quickly determine what this product is

Positioning

This product is made using a sewing

machine. Unused pants and other types of fabric can be used

to make a tote bag. The key aspects of Bag 2GO are

providing good service for customers satisfaction because

of the quality, texture and price. Among all types of bags,

the tote bags can also be an option because tote bags can

fit almost anything.

Value Proposition

Tote bag is ideal for this target market segment since

it can hold a lot more than a traditional purse. Tote bags

can be used for a variety of purposes and by a variety of

people. They are perfect for carrying items around, whether

at the grocery store, on a day trip, school and etc. Tote

bags are easier to carry and much more discreet. In terms

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of quality and price, very satisfied and acceptable for

customers.

Target Market

The target market of this business Bag 2GO is not just

the students and teachers of Hercor College Riverside, but

anyone who can saw this product in its facebook page can

buy also.
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Chapter IV

Figure 2: List of Machineries and Equipment

Description Feature Brand Supplier Price

Sewing machine TMMK Shopee 4,000

Scissor Lazada 30

Tape measure Shopee 50

Figure 3: List of Materials

Description Supplier Price
Cloth Shopee 80

Needle Shopee 50

Thread Shopee 50

Steps in Tote bag making:

1.Cut the fabric

2.Fold and stitch the fabric
3.Pin the bottom and side edges together in both corners
4.Beggin sewing tote bag
5.Add straps in tote bag
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Chapter V

Finance

Projected Cost
Table 2:
Tools and Equipment Price Total
Sewing Machine 4,000
Scissor 30
Tape measure 50 4,080
Operating Activities
Product Supplies
Needle 50
Sewing Thread 50
Fabric Cloth 80
Transportation Expense 40
Utilities Expense 50 270
Total Projected Cost 4,350

Source of Financing
Borrowings 4,080
Initial Investment 270
Total 4,350

Projected Cost Per Color

Table 3:
Color Cost per bag Projected Projected
volume/Average Cost
No. Product
Bright Color 36 5 pieces 180
Dark Color 36 6 pieces 216
Pastel Color 36 8 pieces 288
Plain 36 4 pieces 144
Total 828

Cost of Bag 2GO ( Tote Bag )

Table 4:
Product Quantity Unit Price Total
Needle Complete set 50 50
Fabric Cloth 1 meter 80 80
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Sewing Thread Complete set 50 50

(1000 meters)
Total 180

Solution
Cost per bag of Bag 2GO = Total Amount of Product
Unit Produce
= 180
5 pcs
= 36.00 per bag
Daily Projected Cost = Cost per pcs x Volume
= 34.00 x 5
= 170

Table 5:

Color Cost Mark – in Selling Volume Total

39% Price
Bright 36 14 50 5 250
Color
Dark 36 14 50 6 300
Color
Pastel 36 14 50 8 400
Color
Plain 36 15 50 4 200
Total 1,150

Bag 2GO
Projected Statement of comprehensive Income
For 10 Days Period
In Pesos

Revenue. 1,150
Expenses
Supplies Expense 180
Transportation Expense 40
Utilities Expense 50
Total Expense 270
Net Income 880
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Bag 2GO
Prepared Statement of Changes In Owner's Equity
For 10 Days Period
In Pesos

Owner's Capital Beginning -

Add: Investment 270
Less: Owner's Drawing 600
Net Capital 330
ADD : Net Income 880
Owner's Capital Ending 1,210

Bag 2GO
Projected Statement of Cash Flows
For 10 Days Period
In Pesos

Cash flow from Operating Activities

Collections 1,150
Payment of Supplies Expense
180
Payment of Transportation Expense
40
Payment of Utilities Expense
50
Net cash from Operating Activities
880

Cash flow from Investing Activities

Acquisition of Equipment
0
Net cash from Investing Activities
0

Cash flow from Financing Activities

Owner’s Investment 270
Owner's Withdrawal 600
Net cash from Financing Activities
330

Net Change in Cash 1,210

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Cash, Beginning
0
Cash, Ending 1,210

Bag 2GO
Projected Statement of Financial Position
For 10 Days Period
In Pesos

ASSETS
Cash 1,210
Tools and Equipment 4,080
Total Assets
5,290

LIABILITIES AND OWNER'S EQUITY

Notes Payable 4,080
Owner's Capital 1,210
Total Liabilities and Owner's Equity. 5,290
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Chapter VI

Future Plan

Conclusion

There are a number of benefits to using tote bags as your

everyday commuting accessory. Not only do they offer more

mobility, they are easier to carry, and much more discreet.

Another benefit of using tote bags over other types of bags

is affordable pricing. These bags will not demand to put a

lot of money to buy them even with custom designs. These

bags can easily be bought for a small amount and then keep

them in use for a long time. Bag 2GO will provide the best

tote bag that will satisfy to the target customers, and

perfectly can be used for a variety purposes.

Recommendations
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Business Bg2Go wants to pursue in making tote bag with

better improvement. Adding a design that will catch their

attention and the quality of the fabric that is comfortable

to look at and to offer “Tela Mo, Tahi Ko” repair for more

value and not heavy on the pocket.

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Sources:

https://parklandmfg.com/the-many-benefits-of-tote-bags/

https://amplifyxl.com/target-market-for-tote-bags/