PROPOSED BUSINESS PLAN

Business Name: Knit & Clip Haven

Location: Purok 1, Pantoc, Gabaldon, Nueva Ecija
Name of Owner: Sophia G. Rayo
Introduction:
Knit & Clip Haven is a registered business engaged in the production and crafting of a variety of
handmade crochet hair accessories, owned by Sophia G. Rayo
Business goals are as follows:
a. The operation started on April, 2024.

b. The location could be reached by: Knit & Clip Haven's location along the highway of Purok 1,
Pantoc, Gabaldon, Nueva Ecija, makes it easily reachable for customers, whether they are
traveling by motorized transport or walking.

c. The business could be expanded by: As the business gains more recognition in the hair
accessories market, the plans include adding new products such as crocheted scarves, keychains,
and home decor. Furthermore, the business could expand by establishing an online storefront to
reach customers beyond Gabaldon, collaborating with local boutiques to display products, and
hosting workshops to teach customers crochet skills and techniques

The Business
1.Description of the Business
Knit & Clip Haven is engaged in the distribution of a variety of handmade crochet hair
accessories. It also manages the creation and crafting of these pieces, prioritizing quality, innovative
designs, and personalized experiences for the individuals of Gabaldon.

2. Product/Service
The product offerings include a variety of crochet headbands, hair clips, scrunchies, and hair ties.
These products come in different colors and styles to cater to a wide range of tastes and preferences.
3. Market
Knit & Clip Haven will distribute its products primarily through its own physical store, where
customers can explore the full range of offerings in person. The business will also cater to a broader
audience by offering its products in the secondary market through an online store. The clients belong to a
middle to high socio-economic level, appreciating the craftsmanship and unique designs that crochet
offers. Clients purchase these handmade crochet hair accessories for the following reasons:

• Unique designs: The accessories offer distinct and artistic patterns that stand out.
• Durability: High-quality materials and craftsmanship ensure long-lasting products.
• Customization: Clients can often request personalized or custom-made designs to match their
preferences.
• Fashionable appeal: The accessories are stylish and on-trend, complementing various outfits and
occasions.
• Eco-friendly and Sustainable: Crochet products can be seen as eco-friendly options, as they are
often made with natural fibers and support small businesses and artisans.

4. Location of the Business

The business is located at Purok 1, Pantoc, Gabaldon, Nueva Ecija. It can easily be reached by
customers traveling by motorized transport or walking, as it is situated along the highway for convenient
access.

5. Competitors are as follows:

Ariane is a larger competitor in the hair accessories crochet business with high production capacity and a
wide distribution network. This allows them to supply various retail channels and handle large orders,
resulting in strong sales driven by their established brand reputation and a diverse range of products.
Their collection include different design of hair clip, headband, and also keychain, appealing to a broad
customer base and sustaining steady sales.
Yarn by em operates similarly to Ariane in terms of production capacity, but it offers a smaller range of
products.
XOXOstich is one of the shops with limited product offerings in hair accessories crochet. Being an
ordinary crochet shop, it serves a niche market and is limited to a smaller number of customers.

6.
Name of Product Competitors’ Price
Plumeria Hair Clip 89 XOXOstich
Puff Flower Hair Clip 50 Yarn by em
Tulip Headband 95
Sunflower Scrunchie 55
Ariane
Scrunchie 55
Sunflower Hair Tie 55
The current price of Crochet Headband, Hair Clip, Scrunchie and Hair Tie is ₱60.00, ₱63.00, ₱63.00 and
₱63.00 . It is derived from the following factors:

Crochet Headband
Production Cost
2 Yarn- 25 pesos each( 50 pesos)
Labor- 25 pesos
Total Production cost = ₱75

Marked up Cost
Mark up percentage is 20%

Price= Total production cost + (Total production cost × Mark up percentage)

Price= ₱75 + ( ₱75×0.20)

Price= ₱90.00

Crochet Hair Clip

Production Cost
Yarn- 25 pesos
Clip – 10 pesos
Labor- 25 pesos
Total Production cost = ₱60

Marked up Cost
Mark up percentage is 5%

Price= Total production cost + (Total production cost × Mark up percentage)

Price= ₱60 + ( ₱60×0.05)

Price= ₱63.00

Crochet Scrunchie
Production Cost
Yarn- 25 pesos
Elastic Band – 10 pesos
Labor- 25 pesos
Total Production cost = ₱60
Marked up Cost
Mark up percentage is 5%

Price= Total production cost + (Total production cost × Mark up percentage)

Price= ₱60 + ( ₱60×0.05)

Price= ₱63.00

Crochet Hair Tie

Production Cost
Yarn- 25 pesos
Elastic band- 10 pesos
Labor- 25 pesos
Total Production cost = ₱60

Marked up Cost
Mark up percentage is 5%

Price= Total production cost + (Total production cost × Mark up percentage)

Price= ₱60 + ( ₱60×0.05)

Price= ₱63.00

7. Marketing strategies
The product will be distributed in the following manner:

• Online sales through various online platforms and marketplaces to reach a global audience and
facilitate convenient shopping experiences for customers.
• Direct selling in Pantoc, Gabaldon, Nueva Ecija.
• Participation in craft fairs and artisan markets.
• Direct marketing on social media channels.

8. Management:
The group is composed of the following :

Sophia G. Rayo: the Owner and Shop Manager of the handmade crochet hair accessories
business. She manages the shop's daily operations, including inventory management and customer
service. Also takes charge of designing hair accessories and stays in touch with customers to understand
their preferences. Have proficiency in crochet techniques, creativity, and effective time management.
Aim Shine G. Palaming: the Marketing and Sales Coordinator, creating and implementing
marketing strategies for the shop. She handles the shop's social media presence and promotes products
online, as well as managing in-store and online sales. Have strong communication skills, proficiency in
digital marketing, creativity in developing promotional campaigns, and the ability to analyze customer
preferences and market trends.

9. Personnel
The needed are the following:

Crochet Designer and Production Lead (3 positions): Skilled in designing and crafting unique hair
accessories using crochet techniques. Responsibilities include creating high-quality products, overseeing
quality control, and coordinating with other artisans during production. Qualifications include advanced
crochet skills, creativity, attention to detail, and experience in managing production processes.
Marketing and Sales Coordinator: involves in developing and implementing marketing strategies to
promote the business and increase sales. They handle customer relationships, manage sales channels, and
work to grow the customer base. Qualifications include strong communication skills, experience with
social media and digital marketing, ability to analyze customer preferences and market trends, and
proficiency in sales strategies and customer relationship management.

10. Sources and application of funding:

Secure financial assistance from
Personal Savings: Using personal savings as an initial source of funding to kickstart my business and
cover initial costs. It may provide immediate capital without any additional obligations.
Loans: Loans from banks and credit unions can provide substantial capital for major expenses like
inventory and equipment.
Partnerships: Forming strategic partnerships with other businesses or organizations can provide financial
support or resources in exchange for collaboration or joint ventures.