Feasibility Study of Setting Up A Martials Arts Studio in Atimonan Quezon Cyrene Dela Cruz 2015
Feasibility Study of Setting Up A Martials Arts Studio in Atimonan Quezon Cyrene Dela Cruz 2015
Feasibility Study of Setting Up A Martials Arts Studio in Atimonan Quezon Cyrene Dela Cruz 2015
CHAPTER I
THE PROBLEM AND ITS SETTING
A. INTRODUCTION
Today, there are said to be as many Filipino fighting styles as there are islands in
the Philippines. Filipino martial arts refer to ancient and newer fighting methods devised
in the Philippines, the most popular of which is known as Arnis that is originated by the
Filipinos. Some of the other familiar Filipino martial arts practices are karate and
taekwondo.
The researcher believed that the Martial Arts is one of the most beneficial life
style activity we can do to improve the quality of our life, and to maintain that quality for
the rest of our life. Martial arts are also a sport for a lifetime. A lot of sports young people
play in high school are over after high school days, except for a few selected
athletes. When they are out of high school they are through playing volleyball, basketball,
football, baseball, and some other sports unlike Martial Arts which can be done for a
lifetime.
Based on the web, Atimonan is the second largest municipality in District IV,
Province of Quezon. It consists of 42 barangays. Since most of Atimonanin’s are health
conscious, the researcher sees an opportunity in establishing martial arts studio. Aside
from these reasons the researcher is interested on how things are done inside the martial
arts studio. Also there is no existing academy that offers a variety of services that is why
the researcher wants to pursue the study.
Martial arts may help develop sportsmanship and through systematic practice in
martial arts a person’s physical fitness may be boosted as the whole body is exercised.
Training also has benefits for mental health, contributing to self-esteem, self-control,
emotional and spiritual well-being.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 2
B. SWOT ANALYSIS
Strengths
- The proposed martial arts studio will focus on community awareness by teaching
self-defense for all ages.
- The proposed martial arts studio has an ability to teach all ages about different
types of martial arts and to explore the abilities of learning them.
- Martial arts business has family friendly environment and is great for the whole
family.
- The proposed martial arts studio will provide counselling to individual who have
been previously attacked.
Weaknesses
Opportunities
Threats
- The target customers will just exercise at home instead of going to martial arts
studio.
The study aims to discuss the Feasibility Study of Setting up A Martial Arts Studio in
Atimonan, Quezon. Specifically the researcher wanted to determine the following aspects
of the business feasibility study:
To the businessmen/ entrepreneurs seeking for the underlying reasons the way
things are done in school of martial arts, this will give valuable business
information to those who want to engage in this kind of venture for it illustrates
specific procedures on how to open up a school for martial arts
To the future researchers, this study will give them an idea or pattern on how to
conduct or prepare a similar research topic
To BSBA students, this feasibility study will enrich their knowledge about the
proposed business
To the readers, this study will provide them skills and thoughts about martial
arts
To the researcher, this undertaking will allow her to learn the different aspects
of business and to support her intention of setting up this kind of business in the
future
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 4
The proposed martial arts studio is dedicated to help everybody become the best
that they can truly be. This may be a place to exercise and improve one’s ability to
focus through hard work and commitment to become a stronger person, physically
and most important of all mentally. The training methods of the proposed
business will get everyone fit and will be accepting whether teens, 20’s, 30’s, 40’s
or even 50’s.A total of 100 respondents are randomly selected for the study from the
Barangay Poblacion, Zones I, II, III, IV, Barangay Angeles, Barangay Caridad Ibaba and
Barangay Tagbakin, Atimonan, Quezon.
Number of
Target Market Respondents
Brgy. Zone I Poblacion 15
Brgy. Zone II Poblacion 14
Brgy. Zone III Poblacion 7
Brgy. Zone IV Poblacion 12
Brgy. Angeles 9
Brgy. Caridad Ibaba 21
Brgy. Tagbakin 22
Total 100
The scope of the study will be at the town of Atimonan, Quezon specifically C.O.
Reyes corner Dona Aurora St. Brgy. Zone I Poblacion.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 5
F. CONCEPTUAL FRAMEWORK
Assessment of
– Market profile Marketing Plan
(Age, Sex, Needs, Wants)
Assessment of
- Equipment and Technical and
process needed Feasibility Operational Plan
(Materials and Location) Study
Of
Setting Up
A
Martial
Assessment of
Arts
- Appropriate
Studio
business structure Organization Manpower
In
and manpower Plan
Atimonan,
resources
Quezon
(Manpower resources needed)
Assessment of
- Capital requirements Financial Plan
and profitability
analysis
Assessment of
- social community Social or Community
contribution of the Contribution
proposed business
G. DEFINITION OF TERMS 1, 2
The researcher defined and illustrated some of the terms used in this study to
better understand the proposed martial arts studio business.
Academy-is a specialized school, often one devoted to one subject or discipline. It is also
describe as the world of higher learning.
1
https://www.wikipedia.org/ retrieved on March 2, 2016
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 7
Martial Arts-are any of several arts of combat and self-defense that are widely practiced
as sport. There are armed and unarmed varieties, most based on traditional fighting
methods used in East Asia.
Martial Arts Gi- refers to a uniform worn in the practice of martial arts.
Physical Fitness-is an important part of life. It is an indicator which shows whether you
have the ability to perform and enjoy day to day physical activities with ease.
CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
The 60′s
People started becoming interested in all things Asian. A few hippy types and a
lot of soldiers returning from duty in Japan came back with something no one had
ever seen before: Karate. Well they came back with a lot of other martial arts, but
since the only one that got press was Karate, a lot of different styles just called
themselves Karate. This included martial arts from China and Korea. This is what
they call pride in martial art. No McDojoing at all.
The 70′s
Some people had heard of “Martial arts” but now everyone had heard of Bruce
Lee. His movies had plots! The fighting looked like someone might be able to pull
some of it off in real life! People went nuts. No matter what martial arts school they
studied at, they would be assured that they would learn to do that Bruce Lee stuff.
Since, there still weren’t a lot of martial artists with true credential, so they had a lot
Source2: http://www.sagacombat.com/blog/trends-of-martial-arts/
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 9
places opening and adapting titles and style names that really sounded more like they
had been stolen from one of Bruce Lee’s movies than anything else.
The 80′s
The Ninja Turtles are basically the Teenage Mutant Ninja Turtles. Everyone
watched those movies and decided they wanted to learn to be ninjas. And really who
can blame them? Suddenly every martial art school was teaching weapons.
Sometimes it was the weapons based in their respective martial art, but other times
you had karate schools teaching sword, and everyone else teaching nunchucks.
The 90′s
Well the Ninja thing stuck around for a while, but then things started to re-gear
into Mixed Martial Arts (MMA), or as they like call it, learning to fight Ultimate
Fighting Championship (UFC). Where do they train UFC? The awesome thing about
it was once again, most of the schools jumping on the band wagon had never fought
anything like this before. It’s pretty easy, teach what you normally teach and tag the
word MMA onto it. Most favourite is MMA Fitness! No cage, no bags, no contact,
but heck why not.
The present
Now there’s an Internet. Even if there is no school in town, people are aware that
there is an art called Brazilian JiuJitsu. A quick google search will tell the difference
between Shotokan Karate and Shaolin Kung Fu. There are really no secret
techniques; everyone can find step by step instruction to nearly anything online as
martial arts instructors rush to put their knowledge on YouTube for free. Don’t want
to do a combat sport? Check their website and watch videos of their classes’ people
can compare and get what they want.
Martial arts, the new trend in the fitness industry, were the hot topic at the fourth
Reebok Innovasia fitness convention at Manggala Wanabhakti Fitness expert Fred
Hoffman of France said during a media conference that martial arts entered the
fitness industry in the early 1990s.
Source3: http://www.accessmylibrary.com/article-1G1-61624274/martial-arts-trends-fitness.html
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 10
Hoffman -- who was visiting Jakarta with colleagues Jannie Classen and Ruth
Croeser of South Africa and Lexi Williams of Australia -- said the combination of
fitness activities and martial arts was important for people's daily lives.
"By having the combined movements, they will be flexible, strong, have balance and
their minds will be focused. They will move and react quickly."
Also during the convention, Williams introduced a new program called step
rotation fitness, and Croeser and Classen gave aerobics demonstrations which were
inspired by African tribal movements.
Ruby Sjahbana, Reebok Indonesia division manager, said the convention was
helpful for local fitness instructors as it gave them the opportunity to catch up on new
fitness trends from around the world, including the incorporation of martial arts, yoga
and dance in fitness activities.
Source4: http://www.europeword.com/blog/europe/european-martial-arts/
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 11
Source5: http://www.fmapulse.com/content/filipino-martial-arts-fma-growth-industry
6
: http://lloydirvin.org/
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 12
marketing strategies, Lloyd Irvin continues to enjoy helping businesses and individuals
succeed.
Experience
- Owner at Emory Marketing Systems LLC
- Present | Maryland
Education
- Bowie State University
- Business Administration
Concentration: Marketing
Activities: Track, Football, Omega Psi Phi
Interests & Activities
- Marketing, Internet Marketing, Direct Response Marketing, Mixed Martial Arts,
Brazilian Jiu Jitsu, Martial Arts, Coaching, Consulting, Business Management
Source7: http://www.filipinofightingartsintl.com/Filipino-Fighting-Arts/Certified-Instructors/jay-
deleon_bio.html
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 14
by Bob Wall's World Black Belt, Inc. as a response to the Sept. 11 tragedy, and trains
flight attendants and other cabin crew members in self-defense.
He was born and raised in Manila, Philippines; he went to the prestigious Jesuit
schools of Ateneo de Manila in Loyola Heights, Quezon City for his grade school and
high school education. He graduated with two Bachelor Degrees in Accounting and in
Political Science from the De La Salle University in Manila, and passed the C.P.A. Board
exams in the Philippines soon after graduation.
After a short work stint in the Philippines as a junior executive for Mead
Johnson, Philippines (the American pharmaceutical giant), and as a road construction
executive in a family corporation in Cotabato, Mindanao, he immigrated to the United
States.
Jay de Leon started his martial arts training as a child in the Philippines,
continuing through his early years in the United States. He has black belts or instructor
ranking in several traditional and modern martial arts styles and disciplines, including
shorin-ryu, Parker kenpo, Filipino Martial Arts (arnis, eskrima and kali), Mixed Martial
Arts, and others.
e-books as well as countless articles published in his own websites as well as other
websites.
He divides his time between the United States and Philippines. He is engaged in
business, martial arts, politics, and volunteer work, and pursues many intellectual, social
and recreational activities that intrigue, interest and fascinate him.
The first marketing initiative is to meet with the local School Administrators and
introduce it to the community. The "Show and Tell" plan is introduced and when
accepted lends the approach to meet the children in the classroom. The "Show and
Tell" is organized in different segments. The first time the instructor addresses the
children he/she will be in full Martial Art Uniform. Most children are thoroughly
impressed and fascinated as they enter the room. Upon asking them if they would
like to have a uniform and take Taekwondo, it immediately attracts their attention.
This is where the instructor immediately reaches out and begins to teach the students
the meaning of discipline.
Source8:http://www.bplans.com/martial_arts_school_business_plan/strategy_and_implementation_summar
y_fc.cfm#.UfHI7qyJs3s
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 16
CHAPTER III
METHODS OF RESEARCH AND PROCEDURE
A. METHOD OF RESEARCH USED
The study used the descriptive method of research to determine the Feasibility
Study of Setting up A Martial Arts Studio in Atimonan, Quezon. This method helped the
researcher to gather more information based on the data she will gather in order to have a
better understanding about the research.
In addition, the researcher undertook a feasibility study which covers marketing
feasibility, technical and operational feasibility, organizational and manpower feasibility,
and financial feasibility. The researcher also analyzed the contribution to the community
and the corporate social responsibility of the proposed martial arts studio business. The
researcher prepared a three-year sales and financial projection for the proposed business.
The interview was conducted last January 13, 2014. The data gathered are used to
improve the study.
Please refer to Appendix A for the Interview Guide.
B.2.2. Observation
This aims to determine the behaviour of students and instructor inside and
outside of the martial arts practice, the types of training and practices offered and
how their whole building is properly laid-out. The researcher conducted the
observation in the same establishment last January 18, 2014.
Please refer to Appendix B for the Observation Guide.
B.2.3. Questionnaire
This aims to know the needs, feelings and attitude of the possible target
markets and also to know if the proposed business is possible to the researchers
target place through the responses of a large number of respondents.
The researcher used the stratified random sampling from Brgy. Zone I, Zone II,
Zone III, Zone IV, Angeles, Caridad Ibaba and Tagbakin Atimonan, Quezon.
Please refer to Appendix C for the Questionnaire.
SAMPLING DESIGN
The population of the study consisted of seven Barangays. The table
displayed the actual number of persons per Barangay. The number of respondents
will be chosen to get the sampling design; the researcher used the given formula.
The size of study population in this study is composed of 25,208 from
Brgy. Zone I, Zone II, Zone III, Zone IV, Angeles, Caridad Ibaba and
Tagbakin Atimonan, Quezon.
Computation:
Formula
n= N/(1+Ne2)
Where:
n= Sample Respondents
N= Size of Study
e= Margin of Error
2
n= 25208/ 1 + (25208) (0.05)
n= 25208 / 1 + (25208) (0.0025)
n= 25208 / 1 + 63.2
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 18
n= 25208 / 64.2
n= 393
The researcher limited her study to 100 respondents considering the amount of
time allocated for the study and to lessen the cost incurred in the study.
PERCENTAGE
SELECTED BARANGAYS POPULATION RESPONDENTS
DISTRIBUTION
Brgy. Zone I Poblacion 3708 15% 15
Brgy. Zone II Poblacion 3458 14% 14
Brgy. Zone III Poblacion 1786 7% 7
Brgy. Zone IV Poblacion 3145 12% 12
Brgy. Angeles 2258 9% 9
Brgy. CaridadIbaba 5186 21% 21
Brgy. Tagbakin 5667 22% 22
Total 25208 100% 100
Formula:
WM= 5f+4f+3f+2f+1f
TF
Where:
WM= Weighted Mean
F= Frequency Responses
TF= Total Frequency
Table 2 : The scale below was used to interpret the total weighted mean.
Range Descriptive Analysis
4.20-4.99 Strongly Agree Most Preferred
3.40-4.19 Agree Preferred
2.60-3.39 Undecided Somewhat Preferred
1.80-2.59 Disagree Least Preferred
1.00-1.79 Strongly Disagree Not Preferred
The weighted mean is used in determining the attitudes and perception of the market
toward the proposed business.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 20
CHAPTER IV
ANALYSIS, PRESENTATION AND INTERPRETATION OF
DATA
This chapter presents the analysis and interpretation of information gathered by the
researcher from the respondents through survey, interview and observation. The data gathered
were tabulated and computed to get the percentage and weighted mean to rank the data from
the responses.
Table 1.1 and Figure 1.1 show that 52% of the respondents are 16-25 years
old, 17% of them are below 15 years old. There are 14 % from the age group
26-35, 10% are more than 45 years old and the remaining 7% belongs to 36-
45 years old. Therefore the potential markets for a martial arts business are
those who are 16-25 years old.
Table 1.2 and Figure 1.2 show that the respondents had an equal
distributions pertaining to gender.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 22
Single 80 80%
Married 19 19%
Widow 1 1%
Table 1.3 and Figure 1.3 show that 80% of the respondents are single, 19%
are married and only 1% is widow.
Percentage
Occupation No. Of Responses Distribution
Student 64 64%
Farmer 1 1%
Fisherman 1 1%
Driver 1 1%
Laborer 2 2%
Nurse 0 0%
Doctor 0 0%
Teacher 4 4%
Office Worker 1 1%
Government Worker 4 4%
Vendor 2 2%
Others 20 20%
Total 100 100%
Table 1.4 and Figure 1.4 show that 64% of the respondents are students,
20% of them do not have works and some are housekeepers. 4% are
government workers and teachers. About 2% are both vendor and laborer.
Only 1% of them are farmer, fisherman, driver and office worker.
Table 1.5 and Figure 1.5 show that 38% of the respondents have monthly
family income of Php10000 and above while 20% are up to Php4000-5999.
About 19% has an income of below Php4000, 12% are up to Php6000-7999
and the remaining 11% of them has Php8000-9999 family income per month.
Table 2.1 Services the Respondents look for in a Martial Arts Studio and How
Much they are willing to spend
Figure 2.1 Services the Respondents look for in a Martial Arts Studio
Table 2.1 and Figure 2.1 show that most of the respondents look for Karate
lesson having the highest 56 response, followed by Tae Kwon Do with 36
response. There are 25 responses to Arnis, 20 to Kickboxing. Next on the rank
is Kung Fu with the response of 18, followed by Wushu of its 17 response. 16
of them want Boxing lesson and 12 responses to both Wrestling and Judo.
A.3. Attitude and Perception of the Market toward the Martial Arts
Studio
Table 3.1 Respondents Response Pertaining to their Attitude toward the Martial Arts
Studio
MARKET Descriptive
SA A U D SD WM Rank
ATTITUDE Analysis
1. I go to martial arts
studio to get fit. 31 32 33 34 35 4.93 SA 1
2. I go to martial arts
studio to exercise. 37 38 39 40 41 4.05 A 6
3. I go to martial arts
studio to learn the
most effective form of
self-defense. 49 50 51 52 53 4.31 SA 2
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 27
4. I go to martial arts
studio to meet
qualified instructor. 34 35 36 37 38 3.88 A 8.5
5. I go to martial arts
studio to experience
the lesson. 36 37 38 39 40 4.12 A 5
6. I go to martial arts
studio to meet new
friends. 29 30 31 32 33 3.88 A 8.5
7. I go to martial arts
studio to defend
myself and loved
ones. 48 49 50 51 52 4.18 A 4
8. I go to martial arts
studioto increase
concentration and
focus. 37 38 39 40 41 3.96 A 7
9. I go to martial arts
studio to develop self-
confidence. 39 40 41 42 43 4.22 SA 3
10. I go to martial arts
studiowhen I have
nothing to do. 19 20 21 22 23 3.27 U 10
This table shows the market attitude toward going to a martial arts studio. The
respondents strongly agree to the following attributes:
I go to martial arts studioto get fit. It has a weighted mean of 4.93, rank 1.
I go to martial arts studio to defend myself and loved ones. The weighted
mean is 4.18, rank 4.
I go to martial arts studioto exercise. With the weighted mean of 4.05, rank
6.
Table 3.2 Respondents Response to the Characteristic of the Services they look for a
Martial Arts Studio
CHARACTERISTIC Descriptive
MP P SP LP NP WM Rank
S OF SERVICES Analysis
1. Affordable tuition
fee 48 44 7 0 1 4.38 MP 3
2. With qualified
instructors 49 39 9 3 0 4.35 MP 5
3. Offering free
introductory class 43 41 13 2 1 4.23 MP 6
4. Gives free uniform 56 31 10 2 1 4.39 MP 2
5. Provides self-
defense seminar 44 34 15 6 1 4.14 P 8
6. Have actual martial
arts exercise 56 33 9 1 1 4.42 MP 1
7. Has variety of
martial arts practices 45 33 16 5 1 4.16 P 7
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 29
8. Sponsor
competition 42 30 21 3 4 4.03 P 10
9. Gives high quality
of lecture 55 31 9 5 0 4.36 MP 4
10. Conducts private
lessons 45 28 19 4 4 4.06 P 9
This table shows the characteristics of the place that the market looks for in a
martial arts studio. The markets most preferred characteristics are:
Have actual martial arts exercise. With a weighted mean of 4.42, rank 1.
Gives free uniform. It has a weighted mean of 4.39, rank 2.
Affordable tuition fee. The weighted mean is 4.38, rank 3.
Gives high quality of lecture. The weighted mean is 4.36, rank 4.
With qualified instructors. It has a weighted mean of 4.35, rank 5.
Offering free introductory class. With a weighted mean of 4.23, rank 6.
Table 3.3 Respondents Response to the Characteristics of the Place they look for a
Martial Arts Studio
CHARACTERISTICS Descriptive
MP P SP LP NP WM Rank
OF THE PLACE Analysis
1. Spacious 56 33 10 0 1 4.43 MP 3
2. With friendly staff 45 42 9 4 0 4.28 MP 7
3. Well-lighted 46 37 11 5 1 4.22 MP 8
4. Air-conditioned 35 29 18 10 8 3.73 P 10
5. Secured location 56 20 15 4 5 4.18 P 9
6. Has shower room 58 27 9 6 0 4.37 MP 4
7. Has lockers 57 24 13 4 2 4.33 MP 6
8. Has drinking
72 20 5 2 1 4.60 MP 1.5
station
9. With good
56 27 13 3 1 4.34 MP 5
ambiance
10. Clean and
74 18 3 4 1 4.60 MP 1.5
comfortable
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 30
The table shows that the respondents most preferred these characteristics of
place in a martial arts studio:
Clean and comfortable. With a weighted mean also of 4.60, rank 1.5.
The martial arts school must have shower room where it has a weighted
mean of 4.37, rank 4.
The market also wants the school to have lockers. The weighted mean is
4.33, rank 6.
No. Of Percentage
Competitors
Responses Distribution
I call martial arts instructor 14 14%
College and Universities offering 27 27%
martial arts lesson
Philippine Karatedo League(PKL) 35 35%
Atimonan, Quezon
Hard Body Gym Lopez, Quezon 5 5%
Lucena City 14 14%
Others 5 5%
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 31
Table 4.1 and Figure 4.1 show that 35% of the respondents go to Philippine
Karatedo League (PKL) Atimonan, Quezon, 27 % of them go to College and
Universities offering martial arts lesson. About 14% goes to Lucena City
with the same percentage as to those who calls a martial arts instructor. There
are 5% respondents who are going to Hard Body Gym Lopez, Quezon. And
5% specifies their response to other places.
Percentage
Willingness to go No. Of Responses
Distribution
Yes 30 30%
Maybe 55 55%
No 15 15%
Total 100 100%
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 32
Table 5.1 and Figure 5.1 show that 55% of the respondents are not sure if
they will go to a new martial arts studio while 30% of them are willing to go
to the proposed business. And the remaining 15% are not willing.
Percentage
Frequency No. Of Responses
Distribution
Daily 8 8%
Weekly 59 59%
Monthly 15 15%
Yearly 4 4%
Whenever needed 14 14%
Total 100 100%
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 33
Table 5.2 and Figure 5.2 show that 59% of the respondents will go to the
proposed business weekly 15% will go monthly. About 14% of them will go
to a new martial arts studio whenever needed. There are 8% who wants to go
daily. And only 4% will go yearly.
A.5.3. Respondents Response on How Much Time They will Spend to a New
Martial Arts Studio
Table 5.3 Respondents Response on How Much Time They will Spend to a
New Martial Arts Studio
Percentage
Time No. of Responses
Distribution
less than 1 hour 28 28%
1-2 hours 42 42%
3-4 hours 25 25%
more than 4 hours 5 5%
Total 100 100%
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 34
Figure 5.3 Respondents Response on How Much Time They will Spend to a
New Martial Arts Studio
Table 5.3 and Figure 5.3 show that 42% of the respondents want to spend 1-
2 hours in martial arts studio, 28% of them wants to take martial arts lesson
in less than 1 hour. There are 25% who are willing to spend time in a martial
arts studio for 3-4 hours. And 5% wants more than 4 hours.
Percentage
Preferred Day No. of Responses
Distribution
Monday to Sunday 5 5%
Monday to Saturday 17 17%
Monday to Friday 13 13%
Saturday and Sunday 65 65%
Total 100 100%
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 35
Table 5.4 and Figure 5.4 show that most of the respondents’ preferred days
of practicing martial arts is every Saturdays and Sundays with the response
of 65%. 17% of them want to attend from Monday to Saturday. There are
13% of those who want to practice from Monday to Friday. And only 5%
prefer from Monday to Sunday.
Percentage
Preferred Time No. of Responses
Distribution
7AM-9AM 27 27%
10AM - 12AM 12 12%
1PM - 3PM 21 21%
4PM - 6PM 24 24%
7PM - 9PM 16 16%
Total 100 100%
Table 5.5 and Figure 5.5 show that the respondents prefer to attend martial arts
classes from 7AM to 9AM with 27% while 24% of them want to attend from 4PM
to 6PM. There are 21% of the respondents who wants to attend at 1PM to 3PM.
About 16% prefers to go from 7PM to 9PM. And the remaining 12% will attend
from 10AM to 12AM.
A. Personal Data
B. Business Profile
The owner with his strong desire in sports started to learn and study Karate
when he was in high school. After he has learned the different techniques, he
began to pass-on the knowledge in the year 1994. At first he only rents any
available space for his Karate skills but later on August 2013 he rented a
permanent place owned by his friend.
His target markets are people from Atimonan, Quezon specifically in the
town. Any interested person who wants to learn the services offered can enrol
and enter the school. His present trainees are students from St. Louie Kids World
Center, Atimonan Central School (ACS), Our Lady of the Angels Academy
(OLAA), Leon Guinto Memorial College (LGMC), Atimonan National
Comprehensive High School (ANCHS) and some Atimonanins who are college
students in Lucban, Quezon.
The school offers Karate and aerobic dance but the schools focus is Karate
and most students are enrolled in it. PKL markets their service through
tarpaulins.
The school operating days are every Saturdays and Sundays. In the
morning is 9:00 to 11:00 while afternoon session is at 2:00 to 4:00. The morning
session is for children from five to twelve years old and afternoon sessions are
for trainees which are thirteen years old and above.
misunderstanding after every competition because if they lose, they always think
that they have been cheated. And to prevent this case, the rules and regulations
are then clearly explained.
Safety first.
Trainees must be in proper attire. If there are new comers they are allowed
to wear any comfortable clothes.
Before the training starts it is important that they do bow to those who are
higher in position or higher in rank.
During training the students are not allowed to talk to other trainees unless
the instructor is talking to them.
Without any important reason the students are not allowed to absent.
During Karate competition the rule “block before punch” is done because
if the first move is punch it means that the first player started the fight and
not the opponent.
Mr. Diaz wanted to have a newly graduate of black belt martial arts that he
can employ in his martial arts business so that the studio will have another
instructor and he thinks that having black belt martial arts graduates will help in
attracting the market of his martial arts studio. If that happen his martial arts
business will have more trainees in the future.
Mr. Diaz advised that if the researcher will set up martial arts business, she
must assure that the instructors are qualified and she must always have to
remember the rule “safety first” for it is very important.
C. RESULTS OF OBSERVATION
Attendance
FOR GIRLS
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 40
The trainees before the training starts change their clothes in the dressing room.
As a part of preparation, girls tie their hair. After their attendance, they were called for
blockings; they bow to those who rank higher than them especially to the instructor.
The position/ranking from lowest to highest is (white belt, yellow, orange, blue,
brown, and black belt).
To see their movements, they are blocked alternately in front of the mirror. They
also make excuses while at training if they will go to the comfort room or other
matter. Drinking water is done during break time and dismissal.
The trainer before he starts checks the attendance. He ask the students for prayer
and warm up before the actual training. He gives break time after the first one hour of
the two hours session. He is very much focused at the trainees’ movements and facial
expression.
Philippine Karatedo League (PKL) offers Karate and aerobic dance. The trainees
engage in Karate are mostly five to twenty years old. In aerobic dance, most students
are twenty years old and above and most are married.
Building Lay-outs
COMFORT
ROOM L
A
R
G
E
M
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 41
DRESSING
ROOM
-GIRLS
DRESSING
ROOM
-BOYS Entrance
Figure 6.1 Building Lay-out of Philippine Karatedo League (PKL) Atimonan, Quezon
Equipments Used
The equipments used in their martial arts studio are the following:
1. kicking pad
2. focus mitt
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 42
3. punching bag
ENTRANCE
6 2
CHANGING CHANGING
OF CLOTHES OF CLOTHES
PROCESS OF
THE PEOPLE
IN A MARTIAL
ARTS STUDIO
5 3
DRINK ATTENDANCE
WATER
4
PRAYER AND
WARM UP
This figure show the process of the people in entering a martial arts studio, first step
is signing and checking of attendance. Second, is doing such prayer and warm up and
third is to drink water. After the training is done they change their clothes again. The
process is repeated every time they were attending the lesson.
CHAPTER V
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 44
MARKET FEASIBILITY
A. INDUSTRY DESCRIPTION AND COMPETITIVENESS
The proposed business will be located in the town of Atimonan, Quezon. Today,
martial arts business in Atimonan is in its growth stage. It is a significant industry.
Hundreds of millions of people worldwide practice some form of martial art. The
nature of industry of martial arts in the town is stable because there is only one
existing competitor.
The major competitor in the said town is the Philippine Karatedo League (PKL)
owned and managed by the instructor itself Mr. Mario Sherwin Diaz. The
establishment is located near of the town center that is less crowded to avoid
destruction to the trainees. They intend to attract the market through the use of
tarpaulins and offering a free training. The proposed business will compete directly
against them by offering the top services and putting the top characteristics of
services and place that the market looks for in a martial arts studio base on the
survey. Through this offers, the researcher expects that this kind of business will be
patronized by the target market.
The potential customers of the proposed business are residents in the town of
Atimonan. Based on the conducted survey of the researcher they are mostly students
and are 25 years old and below. The new martial arts school will be using flyers,
tarpaulins, radio advertisement at Radyo Natin Atimonan, social networking sites and
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 45
will tie up with schools on Physical Education subject to attract the market. The
school itself will serve as a channel of distribution.
C. ACCESS TO SUPPLY
The proposed martial arts studio will source its supply from these local suppliers:
Martial arts have played a crucial role in the introduction of safety rules because
they oversee martial arts in similar way. The government registry cost of the
business will affect the entry to the martial arts industry.
There are government requirement in setting up this kind of business and the
proposed martial arts studio will need the following business permits:
Mayors Permit
Sanitary Permit
BIR
Tax clearance
Business Plate
Garbage Fee
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 46
The proposed target markets are residents in the town of Atimonan Barangays
Zone I, Zone II, Zone III, Zone IV and the three nearby Barangays Angeles, Caridad
Ibaba and Tagbakin specifically the students’ ages 25 years old and below.
The proposed martial arts studio will offer different types of services such as
Karate, Tae Kwon Do, Arnis and Kickboxing. It will hire qualified instructors,
conduct an actual martial arts exercise and will offer free introductory class in the
first two days of attending the practice for a high quality of lecture. The proposed
services are in affordable tuition fee. A training fee of Php300.00 per month will be
favorable to the customers with two hours practice in every two days of a week
which is Saturdays and Sundays.
The establishment will be clean and comfortable, has drinking station, spacious,
has shower room andwith good ambiance based on the market response from the
distributed survey. It will also have a locker room.
The target market of the proposed business is people in selected Barangays from
the town of Atimonan and the three nearby Barangays namely Brgy. Angeles,
Caridad Ibaba and Tagbakin. The target market’s total population is 25,208 (Source:
DILG Statistics from the Municipality of Atimonan, Quezon) in which 52% of it is
of ages from 16-25, while 17% ranges from below 15 years of age. As per family
income, 38% of the respondents earn Php10000.00 and above per month while those
with Php4000-5999, comprises the other 20%.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 47
30% of the respondents are willing to go to the proposed business based on the
result of the survey. The researcher makes an assumption that 10% of the 30%
respondent will patronize the proposed martial arts school. The researcher assumed
that 10% is a reasonable estimate for it is the lower percentage share than Philippine
Karatedo League (PKL), which is the major competitor of the proposed business.
MARKET BASE
The seasonality of the business in every months of the year is stated below with
its reasons why.
The researcher determines the number of market potential through multiplying the market
base with the estimated percentage of the business seasonality as shown below.
No. of Potential
Seasonality Market Base % of the Business
Market
Lean 756 15% 113
Average 756 30% 227
Peak 756 50% 378
JANUARY = Lean
Karate 56 41% 46 300.00 13,800.00
Taek wondo 36 26% 30 300.00 9,000.00
Arnis 25 18% 20 300.00 6,000.00
Kickboxing 20 15% 17 300.00 5,100.00
FEBRUARY = Lean
Karate 56 41% 46 300.00 13,800.00
tae kwon do 36 26% 30 300.00 9,000.00
Arnis 25 18% 20 300.00 6,000.00
Kickboxing 20 15% 17 300.00 5,100.00
MARCH = Average
Karate 56 41% 93 300.00 27,900.00
tae kwon do 36 26% 59 300.00 17,700.00
Arnis 25 18% 41 300.00 12,300.00
Kickboxing 20 15% 34 300.00 10,200.00
APRIL = Peak
Karate 56 41% 155 300.00 46,500.00
tae kwon do 36 26% 98 300.00 29,400.00
Arnis 25 18% 68 300.00 20,400.00
Kickboxing 20 15% 57 300.00 17,100.00
MAY = Peak
Karate 56 41% 155 300.00 46,500.00
tae kwon do 36 26% 98 300.00 29,400.00
Arnis 25 18% 68 300.00 20,400.00
Kickboxing 20 15% 57 300.00 17,100.00
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 49
The business sales for year 2 will increase by 10% from the sales in Year 1 due
to the awareness of the presence of the proposed martial arts studio.
In Year 3, the researcher assumes that the sales will further increase by 15% due
to the loyal customers that the entrepreneur will develop.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 51
CHAPTER VI
TECHNICAL AND OPERATIONAL FEASIBILITY
A. SERVICES DESCRIPTION
The proposed martial arts studio will offer the services with the average price of
Php300.00 per month. The services to offer are:
Karate
Tae Kwon Do
Arnis
Kickboxing
The proposed business will offer a free introductory class for two days. Based on
the survey, the target market of the proposed martial arts studio prefers to have the
following attributes:
Spacious
B. PLANT LOCATION
C
QUEZON ST. O
R
R I
CHURCH E
Z
Y
PLAZA E A
S L
TARGET PLACE
S S
T
DONA AURORA ST. T
The proposed martial arts studio will be located at C.O. Reyes corner Dona
Aurora St. Brgy. Zone I Poblacion Atimonan, Quezon.
The location is appropriate because it is a less crowded place that will avoid
destruction to both trainees and instructor practicing martial arts. Also, it is
near the center of the Poblacion.
CUSTOMER PRACTICE/TRAINING
The customers will enter the martial arts studio for inquiry or for attending the
training.
They will pay for the service they want and those who are already students will
sign in the log book.
The cashier, if the customers are paid, will allow the customer to acquire the
service.
The process shows the replenishment of the equipments used in the martial arts
studio when it is broken or damage.
The manager/owner will then bring the equipments to the martial arts studio.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 54
TRAINING AREA 1
TRAINING AREA 2
This shows the floor layout of the proposed martial arts studio. The layout
is based on the behavioural observation conducted by the researcher to both
trainees and instructor.
The size of the establishment is decided as 100 square meters to fit the
space needed in the operation.
The proposed martial arts studio will have the following schedule:
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 55
TRAINING AREA 1
NO. OF
TIME SESSION SET TRAINER
STUDENTS
8AM-10AM Karate 16 1 instructor 1
10AM-12PM Karate 15 2 instructor 1
12PM-1PM LUNCHBREAK
1PM-3PM Karate 15 3 instructor 1
3PM-5PM Kickboxing 17 1 instructor 1
TRAINING AREA 2
NO. OF
TIME SESSION SET TRAINER
STUDENTS
8AM-10AM tae kwon do 15 1 instructor 2
10AM-12PM tae kwon do 15 2 instructor 2
12PM-1PM LUNCHBREAK
1PM-3PM Arnis 10 1 instructor 2
3PM-5PM Arnis 10 2 instructor 2
During average and peak seasons the proposed martial arts studio will be
operating from Monday to Friday to fit the number of students to the size of each
training area.
This table illustrates the materials needed for the renovation of the proposed
martial arts studio as well as its cost. The researcher asked for the help of Mr.
Ernesto Laude, a mason carpenter to specify the materials needed for the
renovation.
Based on the quantity and unit cost of the materials needed, the renovation
has an estimated total cost of Php147, 995.00
D.3.2. Cost of Wiring
Table 1.2 shows the estimated quantity and amount of wirings for renovation. To
get the unit cost, the researcher canvassed at NEU ACME Enterprise. The estimated
total cost of wirings needed for renovation is Php9, 021.00.
The table shows that renovation of the proposed business needs two mason
carpenter, two laborer and one electrician. The total cost of labor for renovation
is Php40, 500.00.
This table shows that the total renovation cost of the proposed martial arts
studio is Php197, 516.00 from materials, wirings and labor cost.
For three (3) years, the yearly depreciation expense for renovation cost is
Php65, 838.67. To make it consistent with the financial projection, the depreciation
schedule is within three years.
mirror 150x120
8 400.00 3, 200.00
ceiling fan
4 500.00 2, 000.00
mats
32 200.00 6, 400.00
body armour
6 655.00 3, 930.00
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 59
Total
Unit Cost
Machines, Equipments and Fixtures Quantity Cost
(in Php)
(in Php)
headgear
4 495.00 1, 980.00
2 585.00 1, 170.00
smash board
2 1500.00 3, 000.00
target pad
2 1, 480.00 2, 960.00
2 495.00 990.00
groin guards
2 285.00 570.00
arnisheadguard
2 495.00 990.00
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 60
Total
Unit Cost
Machines, Equipments and Fixtures Quantity Cost
(in Php)
(in Php)
arnis gloves (pair)
2 295.00 590.00
focus mitt
2 1, 500.00 3, 000.00
2 395.00 790.00
punching bag
1 2, 000.00 2, 000.00
1 9, 190.00 9, 190.00
Total Martial Arts Training Machines, Equipments and Fixtures 44, 730.00
Amount
Summary of Machines, Equipments and Fixtures
(in Php)
Office Machines, Equipments and Fixtures Cost 12, 315.00
Martial Arts Training Machines, Equipments and Fixtures Cost 44, 730.00
Total Cost of Machines, Equipments and Fixtures 57, 045.00
The table shows that the total cost of machines, equipments and fixtures needed
in the operation of the proposed martial arts studio is Php57, 045.00. It includes the
machines, equipments and fixtures used in the office of the owner as well as in the
training area.
Table 2.4 Depreciation Schedule of Machines, Equipments and Fixtures over 3 Years
The table shows that the depreciation expense per year is Php19, 015.00 for
machines, equipments and fixtures used in the business operation.
The table shows the operating expenses of the proposed martial arts studio. The
total operating expense is Php75, 200.00. The following are the assumptions to the
operating expense of the proposed business:
Rental Expense
Electricity
Water
The water to be used in the comfort room and shower room will be
sourced at Atimonan Water District. It will cost Php285.00 per month.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 62
Drinking Water
The business operation of the proposed business will need drinking water
for the customer twice a week. The total cost for the drinking water is
Php240.00 per month.
The fee for telephone and internet is based on GTSI system but the
researcher estimated it not higher than Php1, 000.00 per month.
The proposed business will expense for flyers, tarpaulins and radio
advertisement to promote the business. It will cost an estimated Php500.00
monthly.
Transportation Expense
For repair and maintenance, an estimated Php6, 000.00 per year is enough to
supply and change the damaged equipments.
Miscellaneous Expense
The proposed business venture will have the following arrangements in disposing
waste and somehow help the environment:
The proposed business will have two trash cans separating biodegradable to
non-biodegradable waste.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 63
To save energy, the electricity of the proposed business will be plugged out
or turned off if not in use.
The water way of the proposed business will be properly organized and
connected to the canal.
The proposed business will not always be using electric lights if sunlight is
enough to fill the area during day time.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 64
CHAPTER VII
MANPOWER AND ORGANIZATIONAL FEASIBILITY
Amount
Permits Frequency of Payment
(in Php)
Barangay Clearance (Zone I) 100.00 During start-up and annually renew
BIR Permit 1000.00 During start-up and annually renew
DTI Permit 500.00 During start-up and annually renew
Mayor's Permit 500.00 During start-up and annually renew
Sanitary Inspection Fee 350.00 During start-up and annually renew
Health Certificate 30.00 During start-up and annually renew
Tax Clearance 50.00 During start-up and annually renew
Certification Fee 50.00 During start-up and annually renew
Building Inspection Fee 120.00 During start-up and annually renew
Electrical Inspection Fee 200.00 During start-up and annually renew
Plumbing Inspection Fee 60.00 During start-up and annually renew
Business Plate 80.00 During start-up
Sticker 10.00 During start-up and annually renew
Garbage Fee 400.00 During start-up and annually renew
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 65
MANAGER/CASHIER
This figure shows the organizational structure of the proposed martial arts
studio. It demonstrates that instructors and helper will report directly to the
manager/ cashier. It also illustrates the authority and decision-making process in
the proposed business.
Manager X X X X X
Instructor 1 X X X X X
Instructor 2 X X X X X
Helper X X X X X
Table 3.1 illustrates the reporting days of each employee in the studio. All of
them will be there every Saturday and Sunday. The colored boxes represent
their working days.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 67
AM PM
Job Title
7- 8- 9- 10- 11- 12- 1- 2- 3- 4- 5-
8 9 10 11 12 1 2 3 4 5 6
Manager B B B
Instructor 1 B B B
Instructor 2 B B B
Helper
Table 4 illustrates the amount of salaries and benefits of the employees employed in
the proposed martial arts studio. The instructors will be paid Php100.00 per hour. The
monthly expense for salaries and benefits is Php18, 700.00 and the annual is
computed as Php224, 400.00
Some of the most significant principles that the researcher would like to instill in
the proposed business are:
Respect
Martial arts are more than a way to attack someone or defend one’s self. It
teaches the consequences of actions. Even for kids whose brains are still
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 68
growing, martial arts classes provides an excellent environment for them to learn
self-respect, respect for others and self-discipline. Students have to respect their
instructor, or they would not be able to learn from him or her. They have to
respect themselves in order to have the confidence to train properly.
Honor
Modesty
Self-control
This is important inside and outside the martial arts studio, whether
conducting oneself in free sparring or in one’s personal affairs. A loss of self-
control in free sparring can prove disastrous to both student and/or opponent. An
inability to live and work within one’s capability or sphere is also a lack of self-
control.
Integrity
Sportsmanship
An aspiration that a sport or activity will be enjoyed for its own sake, with
proper consideration for fairness, ethics, respect and a sense of fellowship with
one’s competitors. A sore loser refers to one who does not take defeat well,
whereas a good sport means being a “good winner” as well as being a ‘good
loser’.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 69
For the Manager- The researcher will allow him/her to attend management or
leadership development training with regards to martial arts business. Also,
to participate in distance learning like internet training to learn Professional
Blogging and Internet Marketing for it will greatly help the business to
success.
For the Employees- The business will give them uniform to use in every session
for free for them to feel their belongingness. Also, it will sponsor a travel or
observation tours to some martial arts event in Manila to improve their
productivity.
The business proponent is a type of person who cannot stop wondering what the
competition is up to. She is action oriented and future focused individual for she is
highly motivated to set herself apart from the competition. Adversity motivated her to
work hard.
As martial arts practitioners are increasing, particularly the youth, the researcher
sees her business as one of the martial arts studio producing hundred great fighters in
the province.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 70
CHAPTER VIII
FINANCIAL FEASIBILITY
The proposed martial arts studio will need the following fixed capital
investments:
Table 2.1Fixed Capital Requirements
Amount
Particulars Reference
(in Php)
Renovation Cost 197, 516.00 Chapter VI, Table 1.4, Page 56
Machines, Equipments and
Fixtures 57, 045.00 Chapter VI, Table 2.3, Page 57
Total 254, 561.00
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 71
The following are the depreciation expenses over three years for the
required fixed capital investment:
The following working capital is needed for the proposed martial arts
studio:
Table 3Working Capital
The proposed martial arts studio will need a capital of Php411, 021.00 to
start-up the business.
B. FINANCIAL PROJECTION
Amount
Particulars References
(in Php)
Projected Revenue 600, 000.00 Chapter V, Table 6.3, Page 47
LESS:
Operating Expenses
Salaries and Benefits 224, 400.00 Chapter VII, Table 4, Page 66
Rental Expense 36, 000.00 Chapter VI, Table 3, Page 60
Electricity 6, 000.00 Chapter VI, Table 3, Page 60
Water 3, 420.00 Chapter VI, Table 3, Page 60
Drinking Water 2, 880.00 Chapter VI, Table 3, Page 60
Telephone and Internet Fees 12, 000.00 Chapter VI, Table 3, Page 60
Advertisements and Promotions 6, 000.00 Chapter VI, Table 3, Page 60
Transportation Expense 500.00 Chapter VI, Table 3, Page 60
Repair and Maintenance 6, 000.00 Chapter VI, Table 3, Page 60
Miscellaneous Expense 2, 400.00 Chapter VI, Table 3, Page 60
Pre-Operating Expenses 3, 410.00 Chapter VIII, Table 1.1, Page 69
Total Operating Expense 303, 010.00
Depreciation Expenses
Renovation Cost 65, 838.67 Chapter VI, Table1.5, Page 56
Machines, Equipments and Fixtures 19, 015.00 Chapter VI, Table 2.4, Page 59
Total Depreciation Expense 84, 853.67
Total Operating Expenses before Tax 387, 863.67
Income (Loss) before Tax 212, 136.33
Less: Tax (10%) Business Tax 21, 213.63
Income (Loss) after Tax 190, 922.70
On the first year financial projection, the business will generate a profit of Php190,
922.70.
Salaries of personnel comprised 74% of the total operating expenses, which is the
biggest contributor to the business yearly expenses.
Rental expense of Php 36,000 per year, is the next biggest expense item of the
proposed Martial Arts Study, comprising 12% of the total expenses
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 74
Amount
Particulars References
(in Php)
Projected Revenue 660,000.00 Chapter V, Table 6.3, Page 47
LESS:
Operating Expenses
Salaries and Benefits 224, 400.00 Chapter VII, Table 4, Page 66
Rental Expense 36, 000.00 Chapter VI, Table 3, Page 60
Electricity 6, 000.00 Chapter VI, Table 3, Page 60
Water 3, 420.00 Chapter VI, Table 3, Page 60
Drinking Water 2, 880.00 Chapter VI, Table 3, Page 60
Telephone and Internet Fees 12, 000.00 Chapter VI, Table 3, Page 60
Advertisements and Promotions 6, 000.00 Chapter VI, Table 3, Page 60
Transportation Expense 500.00 Chapter VI, Table 3, Page 60
Repair and Maintenance 6, 000.00 Chapter VI, Table 3, Page 60
Miscellaneous Expense 2, 400.00 Chapter VI, Table 3, Page 60
Pre-Operating Expenses 3, 410.00 Chapter VIII, Table 1.1, Page 69
Total Operating Expense 303, 010.00
Depreciation Expenses
Renovation Cost 65, 838.67 Chapter VI, Table1.5, Page 56
Machines, Equipments and Fixtures 19, 015.00 Chapter VI, Table 2.4, Page 59
Total Depreciation Expense 84, 853.67
Total Operating Expenses before Tax 387, 863.67
Income (Loss) before Tax 272, 136.33
Less: Tax (10%) Business Tax 27, 213.63
Income (Loss) after Tax 244, 922.70
On Year 2 of the business operation, it will have Php244, 922.70 for total revenue.
This only shows business improvement from sales on Year 1.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 75
Amount
Particulars References
(in Php)
Projected Revenue 759,000.00 Chapter V, Table 6.3, Page 47
LESS:
Operating Expenses
Salaries and Benefits 224, 400.00 Chapter VII, Table 4, Page 66
Rental Expense 36, 000.00 Chapter VI, Table 3, Page 60
Electricity 6, 000.00 Chapter VI, Table 3, Page 60
Water 3, 420.00 Chapter VI, Table 3, Page 60
Drinking Water 2, 880.00 Chapter VI, Table 3, Page 60
Telephone and Internet Fees 12, 000.00 Chapter VI, Table 3, Page 60
Advertisements and Promotions 6, 000.00 Chapter VI, Table 3, Page 60
Transportation Expense 500.00 Chapter VI, Table 3, Page 60
Repair and Maintenance 6, 000.00 Chapter VI, Table 3, Page 60
Miscellaneous Expense 2, 400.00 Chapter VI, Table 3, Page 60
Pre-Operating Expenses 3, 410.00 Chapter VIII, Table 1.1, Page 69
Total Operating Expense 303, 010.00
Depreciation Expenses
Renovation Cost 65, 838.67 Chapter VI, Table1.5, Page 56
Machines, Equipments and Fixtures 19, 015.00 Chapter VI, Table 2.4, Page 59
Total Depreciation Expense 84, 853.67
Total Operating Expenses before Tax 387, 863.67
Income (Loss) before Tax 371, 136.33
Less: Tax (10%) Business Tax 37, 113.63
Income (Loss) after Tax 334, 022.70
On the third year of the operation, the business will generate total revenue of
Php334, 022.70 more than the sales on Year 2 due to the loyal customers of the
proposed business.
The proposed revenue on Year 1 is Php190, 922.70. It will increase 10% sales on
Year 2 that leads to have Php244, 922.70 due to the market awareness of the
presence of the martial arts studio. In year 3, the sales will further increase by 15%
because of the loyal customers that the entrepreneur will develop. It will generate
total revenue of Php334, 022.70.
The researcher assumed that there will be no increase in the business operating cost
such as salaries and benefits, rental, electricity and other expenses.
Salaries and benefits amounting to Php224, 400.00 yearly comprises the highest
74% of the total operating expenses before tax.
On the first year of the operation, the proposed martial arts studio will
generate Php2.36 sales for every Php1.00 investment.
On Year 2, the proposed business will generate Php3.89 sales for every
Php1.00 investment. The increase in turnover of operating asset came from
the 10% in total revenue in Year 2.
On Year 3, the business will generate Php8.94 sales for every Php1.00
remaining investment in the total operating assets. The increase in turnover
of operating assets came from the 15% increase in total revenue in the third
year operation of the proposed business.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 77
For an overall analysis, the proposed business sales generation ability is very
good and is enough to cover the investment of the operating asset of the
business.
On the first year of the operation, the proposed martial arts studio will
generate Php1.46 in sales for every Php1.00 investment in total equity.
On Year 2, the proposed business will produce Php1.61 in sales for every
Php1.00 investment in equity. The increase in sales to equity ratio came from
the10% increase in total revenue in second year operation
On the third year of the operation, it will generate Php1.85 in sales for every
Php1.00 investment in total equity. The increase came from the 15% on
sakes and revenue of the proposed business.
The overall sales generation capability of the proposed martial arts studio is
very good from year one to year three. The investment in equity has been
fully covered by the business.
On the first year of the business operation, it will have Php0.35 income for
every Php1.00 sales.
On the second year of the business operation, the operating income to sales
improved to Php0.41.
On the third year, the proposed business will have a Php0.49 income for
every Php1.00 sales
Overall, the income generates and improved from first year to third year of
the operation.
On Year 1 of the business operation, the return is Php0.83 for every Php1.00
investment in operating assets.
Overall, the return on operating assets of the business is good because the
business generates an increase of an operating income per year.
On the first year, the proposed business can only yield an operating income
of Php0.52 for every Php1.00 on stockholders equity.
On the second year, the business will yield an operating income of Php0.66
for every Php1.00 on stockholders equity.
On the third year, the business will gain Php0.76 for every Php1.00 on
stockholders equity.
CHAPTER IX
CONTRIBUTION TO COMMUNITY/ CORPORATE
SOCIAL RESPONSIBILITY
The researcher will provide headgears and body pads for sparring or for
activities with risk of falling.
For the use of equipments, the researcher will ensure that safety gears are fit
properly and well maintained.
Mats and floors in the training area will be guaranteed safe to play on.
The researcher will post all the services offered by the martial arts studio.
Rules and regulations when in training will be posted in each training area.
They will be given freedom to choose what kind of service they want to
enrol.
The martial arts studio will work actively in the community through fund
raising. The researcher will keep back Php2.00 in every Php300.00 sale of
the business for local charity on health.
The proposed business will be holding seminars and will be taking action
through demonstrations to raise awareness on some important issues such as
psychological and physical health issues as well as issues on violence.
Sponsors will be the different business owners in Atimonan, Quezon. The
researcher will get its participants from different schools in Atimonan.
The proposed business will give an extra job opportunity to those who have
knowledge teaching martial arts.
The business owner will give her employees proper wages and benefits.
The proposed business will provide funds to some special programs such as
seminars for self-defense.
It will also provide training to the employees to help them enhance their
knowledge and skills.
The proposed Martial Arts Studio with a legal structure of sole proprietorship
will accountably pay the right and exact tax to the government. It will pay 10%
tax on its gross income. The tax paid will contribute to the revenue of the Local
Government of Atimonan, which will be used for further development of the
municipality.
It will also help in expanding the income of the barangay and the Local
Government of Atimonan.
The researcher will put a plant hanging outside the windows and in the
main entrance of the establishment.
During daytime, electric lights will be turned off when sunlight is enough
to fill the area for the purpose of saving the energy.
The researcher would like to instill the following core values in the proposed
business:
Respect- the researcher believes that the instructors that respect his/her
students will be respected by the students too.
Self-control- One must learn to control their temper, they must not injure
someone with their martial arts power unless it is for self-defense.
CHAPTER X
SUMMARY, CONCLUSION AND RECOMMENDATION
The study used the descriptive method of research, this method help the
researcher to gather more information based on the data she will gather in order
to have a better understanding about the research.
The researcher used the stratified random sampling to select randomly samples
from different sector of study population. She limited her study to 100
respondents considering the amount of time allocated for the study and to lessen
the cost incurred in the study
For the research instruments, the researcher makes use of the secondary data such
as library and e-library research. Also, she makes use of the primary data through
interview, observation and questionnaire from an individual person.
The proposed martial arts studio will offer different types of services such as
Karate, Tae Kwon Do, Arnis and Kickboxing. It will hire qualified instructors,
conduct an actual martial arts exercise and will offer free introductory class in the
first two days of attending the practice for a high quality of lecture. A training fee
is Php300.00 per month
The establishment will be clean and comfortable, has drinking station, spacious,
has shower room and with good ambiance based on the market response from the
distributed survey. It will also have a locker room.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 85
B. MARKET FEASIBILITY
The proposed target markets are residents in the town of Atimonan Barangays
Zone I, Zone II, Zone III, Zone IV and the three nearby Barangays Angeles,
Caridad Ibaba and Tagbakin specifically the students’ ages 25 years old and
below.
The major competitor in the said town is the Philippine Karatedo League (PKL)
owned and managed by the instructor itself Mr. Mario Sherwin Diaz. They intend
to attract the market through the use of tarpaulins and offering a free training.
The proposed martial arts studio will source its supply from these local suppliers:
The new martial arts school will be using flyers, tarpaulins, radio advertisement at
Radyo Natin Atimonan, social networking sites and will tie up with schools on
Physical Education subject to attract the market. The school itself will serve as a
channel of distribution.
On the second year, the researcher assumes that it will increase its sales up to 10%
which is Php660, 000.00.
The proposed location is at C.O. Reyes corner Dona Aurora St. Brgy. Zone I
Poblacion Atimonan, Quezon. The location is appropriate because it is a less
crowded place that will avoid destruction to both trainees and instructor practicing
martial arts. Also, it is near the center of the Poblacion.
The establishment consist of the training area and office area the size of the studio
has an area of 100 square meters. It will undergo renovation for 30 days, which
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 86
will cost Php197, 516.00. For three (3) years, the yearly depreciation expense for
renovation cost is Php65, 838.67.
The needed cost for machines, equipments and fixtures is Php57, 045.00 and the
depreciation expense per year is Php19, 015.00.
The proposed business will be open from 7:00 AM to 6:00 PM every Saturdays
and Sundays.
The management will allow the personnel to attend training and seminars with
regards to martial arts business and will give them uniform to use in every session
for free for them to feel their belongingness.
E. FINANCIAL FEASIBILITY
The proposed martial arts studio will need a capital of Php411, 021.00 to start-up
the business. This capital requirement will be sourced from the owner itself.
The proposed revenue on Year 1 is Php190, 922.70. It will increase 10% sales on
Year 2 that leads to have Php244, 922.70 due to the market awareness of the
presence of the martial arts studio. In year 3, the sales will further increase by 15%
because of the loyal customers that the entrepreneur will develop. It will generate
total revenue of Php334, 022.70.
The payback period of the proposed Martial Arts Studio in Atimonan, Quezon is
within two (2) years. The investor will have to wait three years before the payout
of the return on investment.
It will also have the social responsibility to the community which includes the
employment and proper wages, education and training, taxes to the government,
community development and its contribution to protect and preserve the
environment.
The researcher would instill the core values such as community involvement,
respect, honor, modesty, self-control, integrity and sportsmanship.
G. RECOMMENDATIONS
The Feasibility Study of Setting up A Martial Arts Studio in Atimonan, Quezon helps
the entrepreneurs to gain more knowledge on how to establish this kind of business.
Martial arts improve the ability to overcome physical or mental strain and to keep
going, while maintaining focus and attention. Based on the flow of study it is feasible to
set up a martial arts business in Atimonan, Quezon. For this reason, the author strongly
recommends to businessman and entrepreneurs to pursue setting up this business.