1.

INTRODUCTION

1.1 THE BUSINESS CONCEPT AND BUSINESS MODEL

Over the years, a dog has been proven to be the mans bestfriend. Through
thick and thin, a dog is always there for his master. A dog is loyal and faithful
to its owner or master regardless of the latters attitude. Dogs are there to
protect us and make us happy at the same time. Sometimes, one of the
bravest things a dog can do is to die for his master. This time, it would be
appropriate to give back to them. Its not only the humans who deserve to be
recognized in the society but also our dogs.

Furry Paws Boutique is the answer to the seemingly unending desire for a
fashionable and quality dog clothing in the province. It will be a locally
positioned dog boutique here in Tagbilaran City, Bohol. This will be the first
ever dog boutique to be established in the province. It would be good news
for many dog owners out there who want their pets to be groomed with class
and unique style. Dog clothing for all we know is somewhat a silent trend
today because a lot of people are looking for some physically established
shops where various dog apparel choices are provided but the only
available are the online suppliers like those advertised on Facebook. It is
silent in the way that people want these products yet they cant have them
because of lack of availability within the province. It may be a threat to start
one considering it will eventually be the first ever dog boutique. The main
concept here is a dog boutique, named Furry Paws Boutique in which the
term furry paws is closely associated with dogs provision of best quality dog
apparel. It is unique because first of all we manufacture them with our own
hands so we dont have to purchase from any suppliers. Shipment costs and
order delays will be avoided. The business model to be employed for this one
of a kind boutique is the Manufacturer Model which in itself is self-
explanatory.

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 1.2 THE BUSINESS GOALS, VISION, MISSION, OBJECTIVES AND
PERFORMANCE TARGET

Furry Paws Boutique is established as an answer to the needs of the dog

community. Heretofore are the goals, vision, mission, objectives and
performance targets of our boutique:

Mission

Furry Paws boutique aims to serve the fashion needs of the dog community.

Vision

- Furry Paws Boutique wants to be the first ever dog boutique in the
province of Bohol
- We strive to provide excellent service to our customers
- To be the leading store in the pet clothing industry

Goals/Objectives:

- To produce quality clothing for dogs

- To sell affordable but classy clothes for dogs of all breeds
- To provide good advices to customers regarding fashion for their pet
dogs.
- To allow customers to state their specifications for the style of the dog
apparel they want to avail

Performance Target

Furry Paws Boutique wants to have a target of at least 7.14% increase in its
sales. Employees must be trained well in dealing with customers and the

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 business must be able to have patron customers in order that company value
will also increase. Key indicators or measurements of performance would be
the following.
o Quantity of clothing sold (in units)
o Amount of sales
o Amount of cash inflows
o Number of customer complaints so that we can better improve our
performance

1.3 JUSTIFICATION

The booming population of dogs has created a great advantage in the

clothing industry. Aside from quality clothing that would be given to them, we
are also to offer something new that other dog clothing boutiques havent
offered. It will answer the question, What makes our product and service
unique or one of a kind?. When it comes to product we offer quality and
affordable ones and even customized ones. In terms of service we offer
something that is highly convenient. With the help of an IT expert particularly
my cousin, Furry Paws Boutique will surely be the first one to use a virtual
fitting software installed in a computer. In the Products/Service Offering
section of this business plan (Page 20), the software is thoroughly discussed.
In addition to the details found there, the said software will only be detecting
dogs. For the dogs to stay in the platform, Furry Paws Boutique will be giving
a free dog treat for each dog as the owner or the saleslady holds the dog in
place although a lot of dogs are trained nowadays. The dog owner can
instruct specifications to the computer operator. The computer will have 2
screens with the other one facing the operator and the other facing the dog
owner and his dog in order that the customer holding his/her dog can see the
virtual fitting of the dog. Furry Paws Boutique is sure to create a memorable
and unique experience for you and your dog. This will eventually be the
biggest trend in the industry.

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 2. Executive Summary

Introduction
Furry Paws Boutique is the first ever dog boutique to be established in
Tagbilaran City, Bohol which will contribute to the growth of the dog clothing
industry here in the Philippines. This may not seem new to all people but we
cannot hide the fact that there are only a few businesses who are engaged in
such and there is a growing demand due also to the increase in the population of
dog owners. Furry Paws Boutique is solely owned by Angelika Trasadas but the
idea of coming up with such business came from her younger sister for they both
have and love dogs. This boutique serves to answer the clothing needs of the
dog community through a physically established business within the province. It
is to be under the Manufacturing Business Model.

Products/Services
The boutique is created in order to serve the fashion needs of the dog community
and also to instill satisfaction towards dog owners. The Furry Paws Boutique
sells all types of clothing ranging from shirts, skirts, polo, dresses and even
costumes which fits different occasions and holidays. Prices range from Php 200
for the smallest sizes pertaining to the new born puppies to Php 600+ for
extremely large dogs. Customized dresses and other clothing items are also
catered by the boutique in which prices would vary and are negotiable. In terms
of shoes and accessories, they would still remain as future plans for additional
capital would be needed.

Financial Plan
The starting capital is estimated to be 1,500,000 in which the details of the costs
are shown in the last section of this business plan. Sales are expected to
increase along with expenses due to increase in production. 7.14% is the target

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 increase in sales based on our 3-year projections/forecast which are in the
Financial forecast section.

Entrepreneurial Strategies

Radio advertising would be the ultimate marketing strategy alongside with the
power of mouth or personal marketing. In addition, flyers will be given to
customers who can also show these flyers to their friends so they would be
aware that our business is existing.

Primary Target Market

Dog owners and lovers, regardless of age are its primary target market. Females
are usually more hooked to fashion than boys. Purchasing power of the people
also is a factor in their buying decisions.

Market Analysis

Opportunities involve the increase in dog ownership, higher income and great
marketing theme is the great affection between the owner and his/her dog.
Threats are of course, the competitors who are providing the same products
through online such as the BarkBuy Philippines and PetLovers Closet and which
have already established themselves in the industry and have gained loyal
customers. Sales forecast, financial position projections and financial statements
are to be illustrated in the later pages. In terms of its distribution, shipment of our
products to places outside the province would be part of our future plans for we
are still to establish trust from our customers

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 3. Financial Forecasts and Expected Returns, Risks and Contingencies
Furry Paws Boutique will have a starting cash of 1,500,000 with the following details of cost for the month of January.
With regards to the per unit cost of our products a table is shown in below.

Figure 1-1

Dog Clothing Size Type Cost Per Unit Selling Price/Unit (in
(in Php) Php)
XXX-small (newborn blouse, polos, skirts, 150 300
puppies) shirts
XX-small, X-small blouse, polo, skirts, 250 400
shirts
Small (10-12) blouse, polo, skirts, 350 500
shirts
Medium (14-16) blouse, polo, skirts, 400 550
shirts
Large (18-20) blouse, polo, skirts, 450 600
shirts
X-large (22-24), blouse, polo, skirts, 500 650
XX-large (26-30) shirts
XXX-large (33-36) blouse, polo, skirts, 550 700-up
shirts

*Note: Special items fit for holidays vary in prices which may be more than Php 600. Customized clothings prices
will also vary depending on the type, amount of design and type of material employed in such apparel. Example of
customized apparel are dresses with printed texts/designs, superhero costumes and etc. according to customer
specifications.

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 Figure 1-2

2016 MONTHLY CASH FLOW PROJECTIONS

TOTA
JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC.
L
Cash
561,25 597,00 609,00 644,75
Balance, 1,500,000 551,500 543,000 520,750 563,000 605,250 583,250 690,750
0 0 0 0
Beg.
CASH
RECEIPTS:
213,75 190,00 213,75 190,00 2,660,0
Cash sales 237,500 237,500 213,750 261,250 261,250 190,000 190,000
0 0 0 0
261,250
00
CASH PAID
OUT:
240,00
Rental 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
0
252,00
Salaries 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000
0
Light 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

Advertising 10,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 65,000
Purchase of
40,000 - - - - - - - - - - - 40,000
Equipment
Purchase of
Furniture & 20,000 - - - - - - - - - - - 20,000
Fixtures
Payment of
165,00
Accounts 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 -
0
Payable
Designing 350,00
350,000 - - - - - - - - - - -
Costs 0
Registration
15,000 - 15,000
& Licensing
Cost of
102,00 102,00 102,00 2,040,0
Goods 680,000 170,000 170,000 153,000 153,000 136,000 136,000
0 0 0
68,000 68,000
00
Manufacture

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d

Payment of
- - - - - - - - - - - 21,100 21,100
Income Tax
168,00 168,00 168,00 134,00 3,268,1
Subtotal 1,176,000
236,000 236,000 219,000 219,000 202,000 202,000
0 0 0 0
140,100
00
Withdrawal 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120000
Total cash 178,00 178,00 178,00 144,00 3,388,1
1,186,000 246,000 246,000 229,000 229,000 212,000 212,000 150,100
paid out 0 0 0 0 00
Increase(de
(728,10
crease) in (948,500) (8,500) (22,250) 42,250 42,250 (22,000) (22,000) 35,750 12,000 35,750 46,000 111,150
0)
cash
Cash on
597,00 609,00 644,75 690,75
hand, end of 551,500 543,000 520,750 563,000 605,250 583,250 561,250
0 0 0 0
771,900
month

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 Figure 1-3
PROJECTED STATEMENT OF CASH FLOWS (3 YEARS)

2016 2017 2018

CASH FLOW FROM:
Operating activities
Cash sales 2,660,000 2,850,000 3,040,000
Advertising (65,000) (60,000) (54,000)
Rental (240,000) (240,000) (240,000)
Light (60,000) (63,600) (66,000)
Salaries and wages (252,000) (252,000) (252,000)
Payment of Accounts Payable (165,000) (176,000) (187,000)
Payment of Income Tax (21,100) (35,350) (48,700)
Registration and Licensing Costs (15,000) - -
Designing Costs (350,000) - -
Cost of Goods Manufactured (2,040,000) (2,006,000) (2,108,000)
Net cash provided by(used in) operating activities ( 548,100) 17,050 35,350

Investing Activities
Purchase of Equipment (40,000) - -
Purchase of Furniture and Fixtures (20,000) - -
Net cash provided by(used in) investing activities ( 60,000) - -

Financing Activities
Withdrawal by the owner (120,000) (120,000) (120,000)
Net cash provided by(used in) financing activities ( 120,000) ( 120,000) ( 120,000)

Cash balance beg. 1,500,000 771,900 668,950

Add: Net increase(decrease) (728,100) (102,950) (84,650)
Cash balance, end. 771,900 668,950 584,300

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 Figure 1-4

PROJECTED INCOME STATEMENT (3 YEARS)

REVENUE 2016 2017 2018

Sales 2,660,000 2,850,000 3,040,000

Less: Cost of Goods Sold

Finished Goods Inventory, Beg. 680,000 136,000 102,000

Add: Cost of Goods Manufactured 1,360,000 2,006,000 2,108,000

Total Goods Available for Sale 2,040,000 2,142,000 2,210,000

Less: Finished Goods, End 136,000 102,000 34,000

Cost of Goods Sold 1,904,000 2,040,000 2,176,000

Gross Profit(Loss) 756,000 810,000 864,000

Less: Expenses

Depreciation (6,000) (6,000) (6,000)

Light (60,000) (60,600) (61,200)

Rental (240,000) (240,000) (240,000)

Salaries & Wages (252,000) (252,000) (252,000)

Advertising Expenses (65,000) (60,000) (60,000)

TOTAL EXPENSES 623,000 618,600 619,200

NET INCOME before INCOME TAX 133,000 191,400 244,800

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 Less: Income Tax 21,100 35,350 48,700

NET INCOME 111,900 202,020 196,100

Figure 1-5

3-YEAR SALES FORECAST

3,100,000

3,000,000

2,900,000

2,800,000 Sales
2,700,000

2,600,000

2,500,000

2,400,000
2016 2017 2018

Note: There is an increase of 7.14% in the sales from 2016 to 2017 and then from 2017 to 2018 which could
possibly mean that many people are hooked into our products.

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 Figure 1-6

PROJECTED BALANCE SHEET (3 YEARS)

For the Year Ended 2016 2017 2018

Assets
Current Assets:
Cash on Hand 771,900 668,950 584,300
Finished Goods Inventory, Ending 136,000 102,000 34,000
Total Current Assets 945,700 770, 950 618,300

Non-current Assets:
Store Furniture & Fixtures(10 yrs) 20,000 20,000 20,000
Less: Acc. Depreciation-F&F (2,000) (4,000) (6,000)
Store Equipment(2 Sewing Machines, ceiling fans) 40,000 40,000 40,000
Less: Acc. Depreciation-SE(10 yrs) (4,000) (8,000) (12,000)
Total Noncurrent Assets 54,000 48,000 42,000
TOTAL ASSETS 999,700 770,998 660,300

Liabilities - -
Accounts Payable 165,000 176,000 187,000

Owners Equity
E. Piscos, Ending Capital 834,700 594,998 473,300

TOTAL LIABILITIES AND OWNERS EQUITY 999,700 460,055 660,300

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 4. THE BUSINESS PROPONENTS: CAPABILITIES AND CONTRIBUTIONS

Furry Paws Boutique is originally the idea of the owners sister namely, Angelu
Trasadas. Every new business needs the cash and competency contributions of
the proponents. The financial backers would be the owner herself exploiting her
savings. The sources of intellectual capital are the owner, the employees,
specifically the two seamstresses, a cashier and a saleslady. The manager
would be the owner itself. The owner, herself, has a background on business
management and is emotionally mature to handle adversities. The
seamstresses/dressmakers are those who are highly skilled especially in adding
style and design to the doggy outfits. The cashier and saleslady are with good
personalities so that they can entertain the customers well and those who also
are good with dogs.

5. TARGETED CUSTOMERS

The primary target market of Furry Paws Boutique are the dog owners especially
those from Tagbilaran City where the establishment is located. Since it will be the
first ever dog boutique both in the city and province, it can somehow take
advantage of the large market.

a. Customer Profile
Age Customers, regardless of age as long as they are dog owners and
dog lovers. Usually kids and middle-aged adults love to see their dogs
in cute outfits.

Gender Females usually are into fashion. Based on March 2016

survey by the National Statistics Office, there were more men than
women with a sex ratio of 103 men in every 100 women. However, this
is not much of a significant difference.

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 Income In terms of purchasing power, the elite class are sure to avail
of these dog products. This boutique also caters the needs of many
dog owners in a way that it offers cheap but affordable products that
would surely make their dogs wag their tails. With a price range of Php
200-Php 600 (Php 600 and up for special outfits), one could surely buy
more than what their dogs need.

Residence The boutique is highly accessible especially to the

Tagbilaran residents who are dog owners. The other municipalities can
still avail of these products when they get to visit the boutique same as
when they visit a mall.

b. Main Value Proposition

The Furry Paws Boutique is the best place for styling your pooch at its
best at a low cost. The aforementioned statement is the reason why
people should avail the products of our boutique.

6. THE MARKET-INDUSTRY DYNAMICS

Furry Paws Boutique is the first ever dog boutique to be established in the
province of Bohol although there are existing businesses which cater the needs
of the animals like pet clinics and pet shops. However there are already online
businesses such as the Petlovers Closet engaged in the same line of businesses
which is also a potential competitor in the dog clothing industry. Therefore, Furry
Paws Boutique is said to be the leading store in dog clothing industry by having
the pioneering physically established shop in the city.

The Pet Industry nowadays is now a booming industry because of the stricter
laws which are strongly implemented protecting animals most especially the ones
we call as mans best friend which are the dogs. Within the industry, the pet food
industry is the leading and the least is the pet grooming industry which involves

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 the dog clothing providers/suppliers and etc. Animals, like human beings,
deserve the same attention, love and care. Therefore, clothing and shoes are
made available to them also to contribute to their attractiveness.

In terms of opportunities and threats in relation to this industry, there are a lot to
mention. The strong bond between a man and a pet dog is always a major
marketing theme for the continuance of the industry. Increase in pet ownership
specifically of dogs is one great opportunity to take advantage on and also the
increase of income of the people. With a higher income, people will be able to
satisfy not just their needs but also their wants and one of those wants is to dress
up their doggies. However the greatest opportunity for Furry Paws Boutique
would be its position in the industry as the pioneer in making and selling dog
clothing. One major threat would be the decrease in income and dog ownership
and as well as the entrance of new businesses to join the industry.

THE MICROMARKET

COMPETITION Furry Paws BarkBuy PetLovers Closet

Boutique Philippines
1. Competitive
Advantage
Product/Service Dog clothing Dog Dog clothing(pet
clothing(with costumes)
accessories)
Price(in Php) 200-600 350-550 599-up
Promotion Radio Online Online Advertising
advertising advertising
Location Tagbilaran City Online Online business
business
2. Strategies Word of mouth Online Online promotion,
and radio promotion, discounts for bulk
advertising, discounts for purchases
discounts for bulk
bulk purchases purchases
3. Technologies Sewing Use of Use of Internet,

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 equipment, Internet, sewing equipment
sewing
equipment
4. Weaknesses No online No Offers only pet
advertising, physically costumes(superhe
caters only those established ro, cartoon
within the business characters)
province
5. Strengths New in the Well-known Well-known,
province, no especially to shipping
patron TV
customers personalities

7. The Product/Service Offering

Furry Paws Boutique would be offering a wide range of clothing/apparel both for
the pups and dogs. It will be offering intricately designed dresses both for male
and female dogs. The type of clothing ranges from skirts and shorts to polos (for
males), blouses (for females) and simple T-shirts. Customer specifications as to
the designs and styles of the clothing are gladly accepted. Furry Paws Boutique
also offers special items which may vary in prices such as superhero costumes,
holiday attires, summer outfits and even gowns and formal dresses that will
increase the appeal of your dog whenever it is brought to special and formal
occasions. The products will be made by our hired seamstresses/dressmakers
and customers can have their dog outfits customized with little charges such as
for adding printed text or designs on their clothes. The clothing varies according
to dog sizes and in prices too. (See Figure 1-1). Various sizes for dogs are being
offered based on the Dog Clothing Size Chart illustrated below

Dog Clothing Sizes

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Accessories and shoes can also be offered but no standard prices are set yet because
it will depend on the kind of material used in the manufacture of these items.

Installation of Virtual Fitting Software

With the use of computers installed with such virtual fitting software, the services of our
boutique can be enhanced by providing greater convenience to our customers. The
dogs will be allowed to sit in a certain platform and then a live camera will be shooting
the dog and the dog owner can choose by swiping the touchscreen monitor of the
computer to view the available dresses in the inventory. Then, it will project the image of
the dog as if it really fitted the said clothing. For customized clothes, an IT expert and at
the same time a creative clothes designer will be hired to sketch in the computer the
desired dress of the dog owner and after that the dog will be able to fit the said dress
virtually. This eliminates the hassle of actual fitting of dresses which is time-consuming
and energy-consuming. The platform can also be rotated in order to see all angles of
the dog while fitting.

8. ENTREPRENEURIAL STRATEGIES, DELIVERY SYSTEM

Furry Paws Boutique will be employing vast marketing strategies through word of
mouth, radio advertising, flyers so that it can attract customers and convince
them. Starting for the first time, it will offer discounts for the first 20 customers

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 and to give them flyers so they can be aware of what are other clothing styles for
their dogs. Dogs are very welcome inside the place and they can fit whatever
dress they want to. Furry Paws Boutique is to find the right commercial space to
be rented, particularly not inside the mall because of the presence of dogs.

With regards to the distribution of its products, shipping to all other places outside
Tagbilaran is yet a future plan because the business has to prove itself to the
potential clients. As of now, it has to be visited in order to buy its products.

9. REGULATORY AND ENVIRONMENTAL COMPLIANCES

These are the list of requirements needed in order for the business to be
registered and be granted business permit from mayors office.
Certificate of Business Name Registration from the Department of Trade
and Industry (DTI)
Barangay Business clearance
Business permit from mayors office
Environmental Clearance
Business Tax Identification Number (TIN)

10. CAPITAL STRUCTURE AND RETURN TO INVESTORS

Furry Paws Boutique is to be organized as a sole proprietorship. It is a

manufacturing and at the same time a merchandising business. It will be
financed with the use of the owners own funds and savings. In consequence, all
returns of investment go to the owner. The starting capital would be 2,000,000 to
cover up the purchases of 2 sewing equipments, interior and exterior designing
costs of the boutique itself, 2 months deposit for advance rental, registration and
licensing costs and for its initial inventory of dog clothing which are made
beforehand for display in the boutique.

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 APPENDIX

Sketch of the Storefront View

Photos of the Product

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 Storefront Sketch

Sketched by: Angelu Trasadas

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 Sample Dog Clothing Items

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