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Table of Contents

Introductory Page Page

A. Name and Address of Business 4

B. Name and Addresses of Principals 4
C. Nature of Business 5
D. Statement of Financial needed 5
E. Statement of Confidentiality of Report 5

Executive Summary

A. Industry Analysis 7
B. Future outlook and trends 7
C. Analysis of Competitors 7
D. Market Segmentation 8
E. Industry and Market Forecasts 8

Description of Venture

A. Products 8
B. Services 9
C. Size of Business 9
D. Office equipment and personnel 9
E. Background of Entrepreneurs 9

Production Plan

A. Manufacturing Process 9
B. Physical plant 2

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 C. Machinery and equipment 3
D. Names of suppliers of raw materials 3

Operations Plans

A. Description of Company’s Operation 3

B. Flow of orders for goods and/or services 3
C. Technology utilization 3

Marketing Plan

A. Pricing 3
B. Distribution 12
C. Promotion 12
D. Product Forecasts 12
E. Controls 13

Organizational Plan

A. Form of Ownership 13
B. Identification of partners or principal shareholders 14
C. Authority of principals 14
D. Management team background 15
E. Roles and responsibilities or members of organization 15

Assessment of Risk

A. Evaluate weakness(es) of business 18

B. New Technologies 19
C. Contingency Plans 19

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Financial Plan

A. Assumptions 20
B. Pro forma income statement 20
C. Cash flow projections 20
D. Pro forma balance sheet 21
E. Break-even analysis 21
F. Sources and applications of funds 22

Appendix

A. Letters 23
B. Market research data 23
C. Price lists from suppliers 25
D. Photos 26
E. Floor Plan 26
F. Company Logo 28
G. Survey Questionnaire 28

Introductory Page

A. Name and Address of Business

Colored and Shaped Face Mask

Main: Diho Phase 1 Diamond Street Buhangin Davao City

B. Name and Addresses of Principals

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 Herbie L. Gonzales
Blk 15 Lot 18 Diho Phase 1 Diamond Street Buhangin Davao City

Patricia Glaire Eborda

Greenland Ph1 CountryHomes Davao City

Erick Lorenz B. Quinte

Blk 3 Lot 4Green Orchard Village Cabantian Davao City

Richard Jaff T. Culanag

Zone 4, St Jude, Buhangin, Davao city

C. Nature of Business

Colored and Shaped Face Mask is a corporation type of business made up of 4

shareholders. This business distributes Colored Face Mask all over Davao.

D. Statement of financing needed

Our company requires a significant amount to be successful and operational. We

believe that this business has a high market potential because it is desired by millions of
people. The majority of such financial investments would be used to purchase needed
equipment and other resources, such as equipment for manufacturing the product,
materials for manufacturing the product, and so on. Our estimated investment is in the
range of 400 thousand pesos.

E. Statement of Confidentiality of Report

This business plan's overall information, data, and drawings are strictly
confidential and private. They are provided with the understanding that they will be held
confidentially and privately and will not be disclosed to third parties without Herbie L.

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Gonzales' prior written consent.

II. Executive Summary

The goal of this business plan is to raise ₱400,000 for the development of
Colored and Shaped Face Masks while demonstrating the expected financials and
operations over the next two years. The Colored Face Mask (The Company) is a
Davao-based corporation that will sell facemasks to people in its target market via
mobile sales. Herbie L. Gonzales founded the company.

Product and Services

The primary source of revenue for the company will be the sale and distribution of
facemasks through the Company's sales agents who will operate throughout Davao,
specifically Diho Phase 1 Diamond Street Buhangin Davao City due to our target
market. The company will focus on creating safe and clean colored facemasks.

The Financing

We are seeking to raise ₱400,000 based upon the equal sharing of the
shareholders. This business plan assumes that the business will receive a 10-year loan
with a 9% fixed interest rate. The financing will be used for the following:
-Equipment’s needed to make the facemask for faster production.
-Financing for the first six months of operation.
-Capital to purchase the materials needed in making the facemask and etc.

Mission Statement

Management’s mission is to provide the Davao Area(and other areas where the
Company expands, specifically in Public Areas) with safe and clean facemasks served
on a mobile basis.

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 Management Team

We believe that we will be able to bring the business's operations to a probability

within the first year of operation. Because of the information and data gleaned from our
research.

Expansion Plan

As time passes, the Company will continue to expand its presence throughout
Davao City by distributing our product to large and small markets, Chinatowns, and
other public places with a high population density. Furthermore, by consistently
servicing the routes planned by Management, the company will build a strong repeat
customer base over time. In our third year of operation, we intend to acquire a large
market that will thoroughly distribute our product within the city's selected section. It
should also be noted that after the fourth year of operation, Management may acquire
several additional small markets in order to significantly increase the business's
revenues.

III. Industry Analysis

A. Future outlook and trends

The presumed development of the industry's business will be measured using

data from surveys and polls, as well as forecasting methods. Products will be constantly
scrutinized to ensure that they always meet customer demands, as this will be the key
to our success. Our product will ultimately benefit us because only a few companies
provide the kind of product that we do. Our future product and service developments will
be guided by customer feedback.

B. Analysis of Competitors

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 And since we provide health care services, we will compete with all types of
health care businesses; we will not limit our competition to "health care vendors on
sidewalks." Given that we are a small part of a large market, we will only begin to
penetrate a small niche and gradually expand.

C. Market segmentation

Of course, all and any customers will be accommodated, but our main target
market will be elders ages 45-80 and up, as our product will be distributed in public and
crowded areas. This is our target market because they are accustomed to our products
and services. They must wear face masks when going outside or engaging in public or
crowded areas due to their weakened health and immune system, which allows viruses
and diseases to spread easily.

D. Industry and market forecasts

For our market forecast, we will make an educated guess as to how well we will
fare. Projections will be based on our own data, which will show how many markets
have a high demand for our product. We will conduct market research because the
business that we have done has already been done in other countries, and the data that
they have gathered will be applicable to us as well. However, additional data collection
will take place. Following that, we will create a chart depicting our projected market
growth. Following that, we will conduct a reality check to determine whether our forecast
is accurate.

IV. Description of Venture

A. Products

Ordinary Facemask-usually used by everyone

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 Shaped Facemask-used by some people who wants unique facemask

Colored Facemask-used by children due to colors

B. Services

Commitment- utmost dedication and willingness to give the customers safe and
clean product.

Mobility of business- our products are available anytime and anywhere.

C. Size of Business

A large-sized business-the size of a company building.

D. Office equipment and Personnel

Worker

Sales Agents

HealthCare Specialist

Computer/Laptop

E. Background of Entrepreneurs

Innovators

Optimists

Investigative

Enterprising

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V. Production Plan

A. Manufacturing Process

We begin by creating the facemask. Every step is completed as quickly and

easily as possible. We will use the necessary equipment and machines to make and/or
customize the facemasks. Following the production of the facemask, we will test to see
if the facemasks are clean and safe, and they will be checked by our healthcare
specialist. If the facemask has already been tested and checked, we will distribute the
product.

B. Physical Plant

The "Production Plant" will be our physical plant because it is the only facility
where the majority of our operations will take place. We will also rely on our suppliers
for the materials and resources required to keep our business running. Cotton sheets,
silken fabric, and other colors are examples. Future plans and developments will include
the major purchase of a Big Physical Store establishment for facility management.

C. Machinery and Equipment

The main machinery and equipment of our business will be the “mask making
machine” since it itself is a big component for our business for it to be successful. Other
major equipment includes the machine for sanitizing, minor equipment would be the
cotton sheets.

D. Names of Suppliers of Raw Materials

We have not yet established a supplier for all the resources that we will need for
our business, but we will make appointments and meetings with the local businesses
that can provide us with the raw materials that we need. For example, Thimbleberry

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Modiste Supplies shop, located at Argaco 4 Bldg, J.P Laurel Ave, Poblacion District,
Davao City, Davao del Sur.

VI. Operations Plan

A. Description of Company’s Operations

Our primary goal is to provide clean and safe facemasks to the general public in
the Davao Area, particularly in public and crowded places. Our company will operate by
having sales agents distribute our product in various markets. We then intend to make a
significant number of sales by selling wholesale or retail of our products, as well as
distribute our product through public markets. Also, we check our resources to ensure
that we have enough resources to produce our product on a monthly basis, and we
check our equipment and machinery on a weekly basis.

B. Flow of Orders for Goods and Service/s

The primary source of revenue for our facemask business will be sales and
distribution of facemasks from our production plant, which will supply the Davao Area.
Our facemask company will specialize in supplying and distributing clean and safe
facemasks based on healthcare utilities, such as:
-Ordinary Facemask
-Colored Facemask
-Shaped Facemask
-Other types of Facemask will be added upon expansion

C. Technology Utilization

Our facemask business may create a website to make it easier to order facemask
supplies and to easily locate our facemask physical store, we will use a web app for
GPS to locate our physical store. We acquire a digital list of facemasks for customers to

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easily pick and choose what they want to buy so that they can easily pick and choose
what they want to buy.

VII. Marketing Plan

A. Pricing

Pricing will be determined by the results of the survey, and adjustments will be
made to ensure that our product is not overpriced. Also, we will base our price on the
established market price, such as retail markets that sell facemasks, so the price of our
facemask per box, for example, would be in the range of 80 to 150php.

B. Distribution

Our distribution strategy will play a significant role in our business. We will be able
to gain various sales by gathering wholesalers and retailers and will have an advantage
over our competitors due to our strategies. We believe that this provides us with a better
opportunity because we can distribute our product to both large and small markets. A
good example would be that we can supply and provide all public and crowded places
because our target market is mostly people between the ages of 45 and 80, so we
would distribute our product to those people who really need to wear facemasks due to
their weak health system.

C. Promotion

Basically, our "facemask" will be promoted to the public if it is used by influencers

and receives a lot of positive feedback from people who purchased our product. It will
spread easily to different people as a result of the influencers' reviews and comments.
We will also use social networking sites such as Facebook and Instagram to promote
our company. We'd also look into promotional video platforms.

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 D. Product Forecasts

For our product forecast, we will first conduct a test run on our business
operations to determine how many we can produce in a day, allowing us to determine
our production rate. Then we would make short-term future projections on how much
mane we could do in a week or a month. We will continue to collect sales-related data in
order to make better future forecasts. However, this will all depend on how successful
our business is, so the number of buyers and orders will vary, but hopefully will be
sufficient to use for forecasting.

E. Controls

Our marketing plan's controls are essentially the tools used to determine how the
plan's actual performance compares to the business's projections. Any changes made
here are based on an analysis of the marketing controls. The first is buyer feedback,
which we must monitor by using polls or surveys to determine what buyers truly want
and do not want so that we can make the necessary changes to ensure customer
satisfaction. The second factor is target market sales; the importance of this is whether
we are getting our target sales with the current target market that we have; if they do not
coincide, something is wrong, and we should use the current sales data and try for a
different target market. Following that is budgeting, where we should be cautious and
keep an organized list of where we spend our money. Controlling our expenses is
critical for us to stay on track and determine whether to keep the business running.
Finally, market share is important because it tells us where we stand in the market.
Knowing what our potential may be and how we can maximize it. Our main goals will
always be to make continuous progress and gain a larger market share.

VII. Organizational Plan

A. Form of Ownership

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 We have a partnership form of ownership because there are four of us who want
to run the business. We will have our partnership agreement contract signed by each of
us, which will show the proper allocation of losses and profits, management, and
business operations.

B. Identification of Partners of Principal Shareholders

Herbie L. Gonzales
Blk 15 Lot 18 Diho Phase 1, Diamond Street Buhangin Davao City
09279470596
[email protected]

Patricia Glaire Eborda

Greenland ph1 Country Homes Davao city
09396498045
@[email protected]

Erick Lorenz B. Quinte,

BLK 3 LOT 4 GREEN ORCHARD VILLAGE CABANTIAN DAVAO CITY,
09165140915,
[email protected]

Richard Jaff T. Culanag

Zone 4, St Jude, Buhangin, Davao city
09953692563
[email protected]

C. Authority of Principals

Herbie L. Gonzales, the General Manager, is in charge of the entire company and
its operations. Unlike other specific by-department managers, the General Manager is in

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charge of everything. Most commonly, the term general manager refers to any
executive who is in charge of both the revenue and cost components of a company's
income statement. This means that the General Manager is in charge of most or all of
the firm's marketing and sales functions, as well as the day-to-day operations.
Frequently, the General Manager is also in charge of leading and coordinating the
company's strategic planning functions. He will make the final decision. He will be in
charge of the company's security.

D. Management Team Background

E. Roles and Responsibilities of Members of Organization

Herbie Lee Gonzales

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 (General Manager)

Duties and Functions:

Implements all the plans adopted

Ensures that all partners of this business are functioning according to his Position
Description.

Checks and Approves payroll of the business partners.

Initiates periodic inventory of all properties

Ensures effective and efficient implementation of all business services

Maintain and updates records of all financial transactions of the business

Installs and implements effective internal control system especially those involving
financial matters

Conducts periodic evaluation of the business partner’s performance

Draws Cash Advance for salaries/wages/financial benefits of the business partners,

including the amount for the operation of the business.

Patricia Glaire Eborda

(Secretary and Office Aide)

Duties and Functions:

Receives and records all incoming/outgoing communications

Perform other duties which the Manager may direct from time to time

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 Maintains a logbook for all the attendance of the business partners

Assist the posting clerk and bookkeeper

Prepares/Encodes outgoing communications for signature of the Manager

Informs the Manager his schedule of activities of the day

Prepares payrolls and other documents for the settlement of record’s claim

Erick Lorenz Quinte

(Posting Clerk and Bookkeeper)

Duties and Responsibilities:

Update subsidiary ledgers

File cash Disbursement

Prepare billings and schedule of payments in all business outflows

Prepares payroll of the business partners

Maintains and updates individual ledger for all types of cash flows

Prepare cash receipts for payment and effect journal entries of approved payments

Post all transactions to the Book of Accounts

Prepare interim and year-end financial statements

Prepare and submit monthly reports to the business partners on the actual
expenditures against the budget

Richard Jaff Culanag

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(Purchaser, Production and Operation)

Duties and Responsibilities:

Assist the manager during monthly inventory of goods

Prepares report of daily cash receipts of sales and remits the same to the Posting
Clerk and Bookkeeper Officer

Issues Sales and Cash Invoices

Maintains orderliness and good warehousing

Purchase goods and services for the supplies and business operations and submit
liquidation report on time to the Bookkeeper

Prepare Purchase Orders for approval of the Manager

Follow-up payments on the business accounts

Performs other duties, which the Manager may direct from time to time

Acts as in-charge of the supplies warehouse as well as the photocopying machine

IX. Assessment of Risk

A. Evaluate weakness(es) of Business

Setting up a business, particularly in face masks, and competing in the market.

During a pandemic, the market should be well planned and should study the potential
risks that the business may face, as well as have helpful and productive solutions to
these issues. With all of the recorded research and feedback from the face masks
market consumers, entrepreneurs must evaluate the potential weaknesses that the
product may have:
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-Face masks can cause a false sense of security by not providing proper product
knowledge,
-it can also create a host of workplace hazards, and another cause OF weakness to the
business IS,
-if the product itself is not competitive to the recent market, knowing the growth of
competition in the market nowadays.

B. New Technologies

Setting up a business, particularly in face masks, and competing in the market.

It's difficult to imagine how businesses functioned prior to modern computing
technology. As a result, business technology risks are constantly growing and evolving.

-Creating a comprehensive risk management plan is the best way to protect against any
type of technology risk. This is a set of policies and practices that apply to a company's
networks, data, and devices It is critical to understand the new set of technologies when
starting a business because they may cause the company to lose a lot of money in the
future.

C. Contingency Plan

It is critical to develop a business contingency plan. When things are going well, it
is easy to forget to plan for bad times. However, if disaster strikes, you could lose
everything in an instant. We must always be prepared for the worst-case scenario,
which will allow us to easily address the issues that arise. As a result, research and
evaluation are also required in this plan. There are numerous issues that must be
addressed if the product is in high demand. We must ensure that we are well prepared
for potential supply shortages. Before this problem arises, we must maximize its
production if necessary. There is a method for making use of the production.
-Market study
-Consumer response
-Understanding the Product Inventory and Sales

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-and using Utilization Rate are the most helpful tools in creating Contingency Plan.

X. Financial Plan

A. Assumptions

COVID-19 has resulted in a dramatic shortage of face masks, which is primarily

explained by an increase in demand. Because no single country can meet the increased
demand for masks, trade is essential. Export bans are harmful to countries lacking
manufacturing capacity, but they can also backfire on the country imposing them if they
need to import inputs, additional masks, or other essential goods. Tariffs or export
licenses can stymie trade while also raising prices. During the crisis, the smooth
operation of transportation infrastructure and logistics, particularly air cargo, is critical to
supporting the face masks value chain. More emphasis should also be placed on the
supply of key inputs.

B. Pro Forma Income Statement

Colored and Shaped Facemask

Pro Forma Income Statement
For the Year ended December 31, 2021

SALES  890 000.00 

LESS: COST OF SALES  156 522.00 
GROSS INCOME  733 478.00 
LESS: OPERATING EXPENSES  13 350.00 
NET INCOME BEFORE TAX  720 128.00 
LESS: 10% INCOME TAX  72 012.80 
NET INCOME  648 115.00 

C. Cash Flow Projections 

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Colored and Shaped Facemask 
Statement of Cash Flows 
For the Year ended December 31, 2021 

CASH FLOWS FROM OPERATING ACTIVITIES  86 412.00 

CASH FLOWS FROM INVESTING ACTIVITIES  (260 520.00) 
CASH FLOWS FROM FINANCING ACTIVITIES  400 000.00 
NET INCREASE/ DECREASE IN CASH  262 356.00 
CASH BALANCE AT THE END OF THE PERIOD  262 356.00 

D. Pro Forma Balance Sheet 

Colored and Shaped Facemask 
Balance Sheet 
For the Year ended December 31, 2021 

ASSETS  0 
TOTAL ASSETS  1 086 573.00 
LIABILITIES  0 
TOTAL LIABILITIES  0 
OWNER'S EQUITY  1 086 573.00 
TOTAL LIABILITIES & OWNER'S EQUITY  1 086 573.00 

E. Break-even Analysis 
Break-even Table 
 
VOLUME  TOTAL REVENUE  TOTAL COST  PROFIT 
20 000.00  890 000.00  1 018 678.00  (128 678.00) 
24 000.00  1 140 000.00  1 245 067.75  (105 067.75) 
28 000.00  1 390 000.00  1 466 784.25  (76 784.25) 
32 000.00  1 640 000.00  1 690 672.00  (50 672.00) 
38 567.75  1 892 486.00  1 892 486.00  (0.00) 
42 000.00  2 140 000.00  2 175 294.00  (35 294.00) 

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 48 000.00  2 390 000.00  2 438 625.00  (48 625.00) 

F + (V x Q) = P x Q 
F = Fixed Costs 
V = Variable costs per unit of output 
P = Selling price of each unit of output 
Q = Number of units of output 

F. Sources and Application of Funds 

The majority of our Facemask funds came from stakeholder investments totaling
₱400 000.00. Each stakeholder contributes ₱100,000.00. For example, this will be our
current funding, derived from financial savings, consistent income from work, and other
sources.
 

XI. Appendix

A. Letters

Contract of Lease

Alma R. Lee and Herbie L. Gonzales have signed a contract on this day in
October 2021. Lessor hereby leases the following prescribed premises, a 100 square
metered studio type office space with comfort room located at Blk15 Lot18 Diho Phase
1, Diamond Street Buhangin Davao City, Country of the Philippines, in consideration of
the rent to be paid and the covenants and conditions to be performed by the Lessee(s).

The lease will be for one year, from noon on October 13, 2013, to noon on
October 20, 2022. The Lessee agrees to pay ₱100,000 in rent for the Premises. This
sum will be paid in twelve (12) equal monthly installments of ₱8,300 on or before the
first day of each month during the lease term, after any applicable prorated rent is due

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in advance on or before the first day of each month during the lease term.

B. Market Research Data

Survey Graph

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 C. Price lists from suppliers

Cotton Sheets = 150

Silk Fabrics = 100

Anti-bacterial Agents =
200

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D. Photos

E. Floor Plan

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 F. Company Logo

G. Survey Questionnaire

Do you still need to wear facemask?

/ Yes
/ No

If yes, what types of face masks do you prefer to wear?

/ Ordinary Face Mask
/ Colored Face Mask
/ Shaped Face Mask

Have you tried wearing our face masks?

/ Yes
/ No

Does it feel comfortable to wear?

/ Yes
/ No

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