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EXECUTIVE SUMMARY
Nature of the Business

Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing it. It also portrays in a clearly understood visual manner, what people of different cultures and styles want socially. Fashion, through times, has gone through so many rapid changes and bizarre extremes that it has examples of nearly every kind of clothing function.

HASHTAG Fashion Store will be a start-up retail men's, women's, and children's clothing store specializing in unique clothing. This business will be a casual urban wear traditional clothing store which will be run by the owners, _____ and _____. It was named after a famous phrases or keymarks used in social networks in internet, inspired by the growing number of hashtag users, fashion sense is increasingly dominant in every person and has been a priority from all walks of life.

The proliferation of cable television, mobile data traffic, and the Internet has created a world where a fashion statement in every place will be within reach in a matter of days. The influence of telecommunication system has increased young customers' expectations and demands for products that represent their own fashion sense.

This clothing store business plan details how HASHTAG Fashion Store will offer customers the youth-oriented products and clothing that are popular , fashionable and affordable clothing line but creates a sense of fashion in every individual to define their personality.

This business is currently owned by 2 proprietors who are professional and both career driven people who ventures into another worlds of challenges through organizing this business.

The target customer is men, women and children ages 15 and above who listens to alternative music, participates in sports like badminton, tennis, driving, and looks toward alternative clothing trends in large urban areas for inspiration especially the professionals who want to try a difference in their individuality in terms of fashion culture. HASHTAG will provide the distinctive clothing products that are just ahead of the fashion curve but maintains the sense of decency and simplicity. MISSION

HASHTAG to offer distinctive youth-oriented fashion and products to its target customers, while building an accessible store with an excellent vendor relationship that will facilitate quick shipment of orders, and where young people will always find something new by providing them best qualitative stuff and unique designs keeping in view their comforts and excellence

VISION HASHTAG envisions to be a:

OBJECTIVES: 1. Provide specialty surfing stores with top quality active-wear products 2. Develop and manufacture new products and create brand awareness 3. Develop and expand a sales force locally. 4. Reach sales of Php700,000 by the end of our first year in business, and reach sales above Php50,000 monthly 5. Sponsor local community sports events

6. Develop products that will attract our buyers and sell to consumers. 7. Develop a solid e-commerce market and to maximize our profit margin.

Keys to Success 1. Seek out feedback from our customers (kids, teens and young adults) to develop a successful clothing line that meets their needs and tastes 2. Develop a niche market for unique apparel (bags, perfumes and shoes) 3. Maximize profits by selling through the Internet 4. Maintain low overhead costs by monitoring and scheduling production 5. Implement a successful marketing campaign to inform the existing clientele and the public of our new image 6. Build brand image and brand equity through marketing

Entrepreneur's Competencies and Qualifications The HASHTAGs competitive advantage is offering product lines that make a statement but won't leave you broke. The brands are not expensive and distinctive enough to satisfy the ever changing taste of our target customers.

Since the proprietors earned an MBA Degree and a competitive character, a clear sense of values and beliefs underpin the creative and business decisions that they make to direct them in successful business venture.

HASHTAG offers products that are just ahead of the curve and so affordable that our customers will return to the store often to check out what's new.

Another competitive factor is that products for this age group are part of a lifestyle statement. We want to represent their style and life choices. We believe that we will create a loyal customer base that will see HASHTAG as part of their lives.

Business Contributions to the Local and National Economy HASHTAG will be an asset to the local and national economy with significance in generating products valuable for the com forts and luxurious living of the people of a particular country. Our store plays a vital role in the growth of the national income as well as raising the per capita income of the people through employing manpower, investment, diversity in the products sold and the contribution to the Gross National Product based upon the total number of products sold and available in HASHTAG. The more products and services available the higher the GNP.

Section I MARKETING PLAN FORMAT

1. The Product HASHTAG offers a variety of clothing lines for men, women and children above 15 years of age. The first year of the business will sell clothing lines until the second year wherein the proprietor will add additional and unique apparel such as bags, perfumes and shoes. These products are locally made and few will be imported which costs cheaper than the other clothing stores in the town. Product Features Your Product/Service
HASHTAG Fashion Store Dresses Blouses Skirts Shorts T-Shirts Jackets Jeans Pants

Competitors Product
Competitors Dresses Blouses Shorts T-Shirts Jackets Jeans Shoes Bags

Plus Size Maternity Teens Tops Shoes Perfumes Bags

Perfumes Imported Goods

2. Location of Business HASHTAG will be located at Mabini St., Pinamalayan, Oriental Mindoro. The store is approximately 210 square meters. It contains two dressing rooms. Parking space is available in front of the store with additional spaces in the rear for overflow. The are a variety of businesses in the area that include Natasha Store, Mercury Drugstore, Papercyle, Cyclehaus Motors, computer shops, Colleges and schools, boutiques, and Banks such as PNB and Rural Bank of Gloria. The establishment is near to the center of the town, which has an easy access to all the needs of the people. This variety of business creates a constant flow of traffic during most business hours. List of Market Areas and Size of Market Area
Mabini St., Pinamalayan, Or. Mdo

Size
210 sq. meters

Population
46,ooo households (85,000 Banking,

Sectors
Retail and fashion store, Computers services

individuals) Education sectors Other groups. working professional

The HASHTAG are trying to hold customers year-round, and many specialty shops who focus on one line of clothing lines are also looking to bring in products that will keep customer loyalty from season to season.

3. Demand The increase in the number of independent specialty stores in Pinamalayan is booming and HASHTAG provides an opportunity to introduce a new, fresh clothing line. Within the larger professional and younger generation market is our target marke. These discerning customers want comfortable quality clothing for both working and non-working days as well as everyday street wear.

Retail stores are the growing "gourmet" market and are represented by large clothing companies like Bench, Penshoppe, Levis, Jag, Guess, Cinderella, Marithe Francois Girbaud, UCB, etc. wherein these cant be easily afforded and bought by a larger number of customers due to a relatively expensive prices of each product and we as retail clothing store are willing to pay a bit lesser for quality products, and attempt to distinguish ourselves by being a family store that attracts men, women, teens and their parent. Below is the projected demand of a certain population based on the study conducted before the business was established. The numbers are based on the

countrys consumption of fiber and clothing in the year 2010 which is 5-10% of their

Population x Per Capita Consumption = Projected Demand Average Household Income : Php30,000 No. of Household in Pinamalayan: 46,000 Per Household Consumption: Php2,400/month 8% of the Household Income is spent in clothing. Projected Demand: Php110,400,000.00/month

The Consumer Spending patterns states that the average amount spent on clothing per household showed that due to the high prices of commodities, the amount spend on clothing is lessened up to 8% per Household Income. Customers and client becomes more wise in purchasing clothes and they would rather buy the cheaper but

high quality products than the expensive ones. Retailing has experienced more changes during the past decade than it did in the preceding generations.

4. Target Market Share (%) Target market share is estimated to at least 27% of the population within the town suburbs. Our market research shows that these are discerning customers that gravitate towards better fashion and clothing. Furthermore, a lot of college students and working professionals consider retail clothing stores more convenient and practical without the necessity to pay high an expensive charges. For us, this will provide a unique possibility for building a loyal client base which is estimated to 27% annually, and is expected to increase by 5% yearly.

5. Projected Sales. The peaks for HASHTAG are the months of February to March, May to June and September to December where sales rise as high as 38% for the month of December due to a large number of occasions such as Valentines Day, Graduation, Christmas and New Year and the opening of school. The valleys for this business are April, January, July to August where sales are down as far as 13%. We project sales to grow by 15 to 20% percent in 2013, a year after its establishment, and reaching maximum production capacity and sales in 2014 for 35%. The company will begin by utilizing its extensive contacts with several major distribution companies to leverage contracts through direct sales methods. Projected Sales
Product Dresses Blouses Skirts Shorts Year 1 (15%) 525000 330000 112500 120000 Year 2 (35%) 708,750 445,500 151,875 162,000

T-Shirts Jackets Jeans Pants Plus Size blouses Maternity Teens Tops Shoes Perfumes Bag Pouch bags

160000 455000 600000 562500 150000 150000 450000 375000 496000 75000 117500 50000

216,000 614,250 810,000 759,375 202,500 202,500 607,500 506,250 669,600 101,250 158,625 67,500

a. Selling Price/Unit Price

Product Dresses Blouses Skirts Shorts T-Shirts Jackets Jeans Pants Plus Size blouses Maternity Teens Tops Shoes Perfumes Bag Pouch bags Ave. Price Rate (Php) 350.00 220.00 150.00 60.00 80.00 350.00 400.00 375.00 300.00 300.00 180.00 150.00 320.00 150.00 235.oo 100.00

b. Quantity of Sales/Sales Volume

Product Dresses Blouses Skirts Shorts T-Shirts Jackets Jeans Pants Plus Size blouses Maternity Teens Tops Shoes Perfumes Bag Pouch bags Quantity of Sales/Sales Volume (pcs) Annually 1500 1500 750 2000 2000 1300 1500 1500 500 500 2500 2500 1550 500 500 500

Total Sales

Year 1 TOTAL PROJECTED Sales 4,728,500

Year 2 6,383,475

6. Proposed Marketing Strategy. HASHTAG have strong marketing backgrounds and recognize the significance of effective marketing. We expect our strategy to draw consumers into HASHTAG

Fashion Store from the very beginning. Our marketing message, logo and slogans will revolve around the idea of new Fashion generation as revolutionaries and trend setters.

a. Product Strategy HASHTAG is a retail clothing store specializing in unique clothing. We encourage customers to be experimental with new clothing styles. Our mission is to understand what our customers needs and hopes are after buying clothing. Our inventory control system will tell us when to buy replacement inventory, what to buy, what not to buy, and how much to buy. Suppliers will be independent craftspeople, import sources, distributors, and manufacturers. We have established a list of possible suppliers and requested quotes, prices, available discounts, and delivery terms. We have also asked them for customer references. We will also try and establish accounts with these suppliers prior to opening our store. We will develop a monthly newsletter and coordinate with regular customers, giving us an opportunity to reach more directly to our customers.

b. Distribution Strategy Choose the proper publication Have a goal for our advertisement Involve the audience Inform the buyer Headline and illustrations grab attention Give them something Always be specific Make our offer a good one Be creative in our media choicessuch as unusual avenues likefax newsletters, small kiosks, fax-on-demand, publicity stunts, online marketing, anything unusual to reach our target market Small classified ads

 Track our results Keep all our customers/prospects in a database and stay in touch with them regularly Gradually increase the size of our ad and tract the results Advertise regularly and consistently Evaluate our efforts

c. Promotion Strategy HASHTAG will try out our promotion on a small portion of our target audience before we roll out the promotion to the rest of the target market. Our tests will include variation on our basic offer, on the text or composition of our message, and on our presentation. The benefits from testing will provide to us early feedback on the response rates and margins used in our break-even calculations for that particular promotion. The budget will be based on the cost method which theorizes that an advertiser cant afford to spend more than he or she has. We will increase this amount for our grand opening. Customer loyalty is much more important to HASHTAG than customer satisfaction. We will serve our customers so well they will brag about HASHTAG to others. This will keep them loyal, and also provide a continual flow of customers. We will maintain our customers happiness by using our Self-Evaluation Program.

d. Pricing Strategy Cost - Plus method. Material + Labor + Overhead + Mark-up(%) = Selling Price (P)
Product Dresses Blouses Skirts Shorts T-Shirts Jackets Jeans Pants Plus Size blouses Maternity Teens Tops Shoes Perfumes Bag Pouch bags Material/Capital 200 125.5 85.5 34.5 45.5 200 228.5 214.5 171.5 171.5 103 85.5 183 85.6 134.5 57 Labor 25% 30.00 18.83 12.83 5.18 6.83 30.00 34.28 32.18 25.73 25.73 15.45 12.83 27.45 12.84 20.18 8.55 Overhead 25% 50.00 31.38 21.38 8.63 11.38 50.00 57.13 53.63 42.88 42.88 25.75 21.38 45.75 21.40 33.63 14.25 Markup (30%) 70.00 43.93 29.93 12.08 15.93 70.00 79.98 75.08 60.03 60.03 36.05 29.93 64.05 29.96 47.08 19.95 Ave. Price Rate (Php) 350.00 220.00 150.00 60.00 80.00 350.00 400.00 375.00 300.00 300.00 180.00 150.00 320.00 150.00 235.oo 100.00

7. Marketing Budget The marketing of HASHTAG follows the conventional marketing pattern which is dependent the product mix (designs and sizes), as well as the promotional strategy. Furthermore, the owners have to marketing techniques like: usage of print media, event arrangement, word of mouth, radio, business cards, cross promote with other stores.

Moreover, in order to keep abreast with the emerging trends and client tastes, surveys regarding customer satisfaction/needs should be a regular feature of this project Marketing Budget Account Title Advertisement Promotion Commission Distribution Year1 5,000 5,000 5,000 7,000 Year2 5,000` 5,000` 8,000` 8,000` Year3 6,000 6,000 10,000 10,000

--------------------------------------------------------------------------------------------------Total Marketing Cost 22,000 26,000 32,000

Section II PRODUCTION PLAN

1. Production Process The initial process starts from the designing phase. Various patterns of clothing and the fashions in vogue, which also relate to the tastes of the concerned clientele, are ordered from various manufacturers in coming from Manila and other nearby cities.

2. Raw Materials and Supplies Since HASHTAG is a retail fashion store, all materials or products to be sold are pre-ordered or bought in the suppliers contacted before the opening of the shop.

3.

Fixed Assets Required

Item Computer Printer Telephone Unit Price 17,000 3,500 1,500 Quantity 1 1 1 Sub-Total (P) 17000 3500 1500

Display cabinets Long chairs Stool chairs Aircondition Grand Total (P)

5,000 1,750 350 6,000

5 2 5 1

25000 3500 1750 6000 58,250.00

4. Fixed Assets Fixed assets are the same as the fixed assets required.

5. Maintenance and Spare Parts (if applicable) Maintenance and spare parts needed are the bondpaper, ink refills, electric and water facilities is also provides. Electric Consumption 7,000/month (84,000annually) Water Consumption 300/month (36,000annually) Phone - 1200/month (36,000 annually) Bondpaper,ink, - 1500/month (180,000 annually)

6. Factory Location and Layout Factory location is located along Mabini St., Pinamalayan, Or. Mindoro near the most of the private establishments in the town.

7. Cost of Labor
Employee Cashier Assistant Utility Aide Philhealth 150 150 150 SSS 150 150 150 Salary 8,000 7,500 6,000 TOTAL (monthly) 8300 7800 6300

8. Factory Overhead Expenses

Indirect Direct

P 14,100 8,300

--------------------------------------------------Grand Total P 22,400

9. Production Cost Per Unit

Raw materials Direct labor Overhead expenses

P 2,125,60 318.84 531.40

-----------------------------------------------------Total P4,888.8

Section III ORGANIZATION AND MANAGEMENT PLAN

1. Form of Business HASHTAG is co-owned by _________ and ________ . Our business operates within the retail industry and is classified - women's clothing stores. The owners experiences in fashion industry and MBA degree persuaded the owners to push through with this retail store. The business operates 6 times a week, from Monday to Saturday. 2. Business Name HASHTAG is a famous code used by a certain social networks which facilitates information dissemination. This was inspired by the idea and originally this is

represented by a symbol #. We chose this name because of the proliferation of fashion sense of women, men and young generation that leads to their uniqueness and individuality when it comes to fashion and clothing.

3. Capability Profile

The market of the boutiques is highly competitive; therefore if the entrepreneur is not well responsive to the tastes and response of the clientele as well as the fashions in vogue he/she may not be able to capitalize the opportunity properly. As our company grows and our boutique earns a positive reputation, several opportunities will open to us. And we are considering some options already. Should we choose to remain a small local boutique, we will develop and grow our company by increasing existing clothing lines and expanding our selection to include additional products such as swim wear, lingerie, or sportswear. Within five years, we will assess the potential for franchising our stores in select locations.

4. Organizational Chart

OWNERS (Managers)

Cashier/Accountant

Assistant Personnel

Utility Aide

5. Key Personnel and Responsibilities OWNERS (Managers) = they will oversee the business operations and be the one to perform other functions such as accounting, monitoring of sales and orders, promotion and others to minimize cost and labor. They have the direct management and supervision of the store. Cashier/accountant during the daily operation of the business, the cashier/accountant will be responsible for the cash registry and sales inventory. Assistant Personnel responsible for the client support and provides for the needs of the costumers, assisting the cashier in sales and daily operations of the store. Utility Aide responsible for the maintenance and cleanliness of the store before and after operating hours.

6. Pre-operating activities Pre-operating expenses Business Plan Preparation (P) Registration with the DTI (P) Personnel Requirement (P) Loan Application (P) Total Pre-operating Expense (P) 10,000 15,000 5,000 0 30,000

Section IV FINANCIAL PLAN

1. Total Capital Requirements The total capital requirements costs an estimated amount of 500,000.oo. Our business will collect immediate payment from customers, so our cash flow statement will be substantially similar to our income statement. Our cash flow statement clearly demonstrates our ability to cover all bills.

2.

Financial Statements 1. Income Statement

Year 1 Income from Sales 4,728,500 Year 2 6,383,475

2. Cash Flow Statement

Year 1 Income from Sales (minus) Expenses Salary Electric Water Phone Store rent Bondpaper, ink NET INCOME 268,800 84,000 36,000 1,500 5,000 18,000 412,300 268,800 84,000 36,000 1,500 5,0000 18,000 412,300 4,728,500 Year 2 6,383,475

3. Balance Sheet Statement

Year 1 Income from Sales 4,728,500 Year 2 6,383,475 TOTAL 11,111,975

(minus) Expenses Salary Electric Water Phone Store rent Bondpaper, ink NET INCOME Accounts suppliers TOTAL Remaining inventories/supplies 472,300 362.300 312,300 150,000 262,300 100,000 payable for 268,800 84,000 36,000 1,500 5,000 18,000 412,300 100,000 268,800 84,000 36,000 1,500 5,0000 18,000 412,300 150,000

0 537,600 168,000 72,000 3,000 55,000 36,000 824,600 250,000

574,600

250,000 472,662

3. Financial Analysis Financial Ratio (Click here) Profitability Ratios

1) Return on Assets (ROA)

ROA =

Net Income Total Assets

412,300 58,250

ROA= 7.078%

2) Return on Equity (ROE)

ROE

Net Income Owner's Equity

412,300 500,000

ROE= .8246% 3) Net Profit Margin

Net Profit Margin = Net Income Sales 412,300 4,728,500

NPM = 0.871% Liquidity Ratio 1) Current Asset Ratio

Current Asset Ratio = Current Assets Current Liabilities 58,250 100,000

CAR = 0.5825

2) Quick Asset Ratio

Quick Ratio= Current Assets Inventories Current Liabilities 58,250- 250,000 250,0000

QAR = -.1917

Leverage Ratio 1) Debt Equity Ratio

Debt Equity Ratio= Debt or Liabilities 250,000 Total Assets 58,250

DER = 4.29% 2. Break-even Point The break-even point for this business is 30% only. 3. Investment Analysis The market of the fashion store is highly competitive; therefore if the entrepreneur is not well responsive to the tastes and response of the clientele as well as the fashions in vogue he/she may not be able to capitalize the opportunity properly and these may eventually lead to bankruptcy. 4. Supporting schedules

Our projections are based on the assumption that the economy, consumer spending habits and population growth will continue for the foreseeable future. We must also assume that our present and future suppliers will continue to sell inventory to us at prices that allow us to maintain our present margins. It is also important that we are able to hire reliable employees at reasonable wages.