CHAPTER I

PROJECT SUMMARY

This chapter presents the project itself, the feasibility criteria, descriptive

definition of the project, the long range objective of the project, history and basic

conclusions of the project.

A. Name of the Enterprise

MUEBLES Repair and Restoration Services is a service-oriented business

aiming to deliver exceptional furniture repair and restoration services. The

business will cater furniture like table, chair, sofa and cabinet. The name was

coined from the word “MUEBLES” which is the Filipino word for furniture. Our

mission is to bring your furniture back to its original beauty.

B. Location of the Business

The proponents chose to construct its firm at Poblacion Barangay 9, Lipa

City, Batangas. Considerations like proximity to the target market, accessibility of

transportation, environmental concerns and other utilities have been considered

for the selection of the location.

This project will occupy a total of 126 square meters of land in order to

accommodate all the machines and equipment that will be required in the

process and more importantly, for the workers to operate easily.

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C. Descriptive Definition of the Project

Renbel Furniture and Appliance Center is a business with affordable

furniture like sofa, cabinet, steel bed, dining table and many more. The

proponents want to generate more income in a way that will satisfy the needs of

customers, as well as to provide better quality of the furniture they want to be

repaired. The researchers come up with an idea of adding a furniture repair firm.

Restoration is more of an art form than simply reattaching broken pieces

and renewing colors and hues. When a tree is cut and milled to be made into

furniture it is given a second purpose. A piece is created by a craftsman to

provide many years of service, often staying in the same family for generations.

In our furniture repair service, we take great pride in bringing furniture back to its

beautiful beginnings and therefore take several steps to ensure quality end-

results.

MUEBLES Repair and Restoration Services offered services like leather

and fabric re-upholstery, furniture repair, part replacement, furniture

refinishing/polishing, metal furniture repair and stain removal.

To determine the historical and projected demand of the business, this

project requires actual data wherein the researchers have to conduct series of

interview and observation in the business.

D. Projects Long-Range Objectives

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 The primary goal of every business is to earn profit and to provide top

quality products and services, more so, to satisfy the needs of the clients and

customers effectively and efficiently should be accounted for. Meeting or

satisfying the customer’s expectation results to customer loyalty and thus making

the furniture shop the most successful furniture repair firm. Hence, the

proponent’s long-range objectives are to:

 To provide the local market an affordable furniture repair and restoration

service

 To maintain long-term relationships with customers by gaining their trust

and confidence.

 To increase the profitability of the business by expanding services to

prospective customers.

 To provide employment due to increasing demand and innovation

 To expand the business for bigger opportunity

E. Feasibility Criteria

In order to determine the feasibility of a project, there are some important

factors to be considered such as potential market of the services and products,

the profitability of the services and products and the availability of the raw

materials required in the operation of the services and products.

The proponents carefully analyzed the various aspects of the study;

market, the technicality, socio-economic and management feasibility to

determine if the proposed project is feasible.

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 The following are the most important criteria by which almost every

subject is being measured:

1. Business Capital

It is how much cash is needed to start the business and keep it

running until it is self-sustaining. It is the most important tool for a putting up a

business. Initial capital needed to the operation of the business is Php

2,835,227.39. Capital will be used to buy materials, tools and equipment used in

repair and restoration of furniture and for the establishment of business’ building.

The proponents will look for investors who will shoulder the total initial investment

needed to start the business. MUEBLES Repair and Restoration Services will

regain their investment in 3.85 years or 3 years and 10 months.

2. Potential Market of the Service

Homeowners choose the brand, design and style of each furniture piece

because they want to perfectly match it with their entire home décor. However, at

some point the furniture will reach its end, but not all can afford replacing it with

new pieces. So instead of buying new furniture, availing service that will cater the

specific need will help lengthen the life of furniture.

3. Profitability of the Service

The proponents will evaluate if the service is profitable and marketable.

There is limited number of services which offer repair and restoration services for

furniture. Demand for such services is constantly increasing. It is assumed that

the business will be profitable.

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4. Availability of Materials and Supplies

Since it a service-oriented business, materials include upholstery

materials, tools and equipment which will be all bought as initial investments for

the business. These materials, tools and equipment also include wood, glass,

paint, welding machine and sewing machine. Supplies will be bought from

different sources

5. Location

The shop will be located in Poblacion Barangay 9, Lipa City, Batangas due

to its proximity to the target market, low land cost, and environmental concerns.

Electricity, water supply and communication services are also available in the

area.

6. Socio-economic

The business does not only aim to earn profits but also provide

employment to the people of City of Lipa. With the taxes it will pay, it will be able

to help in the community projects of the government. In addition, it will implement

waste management so that people and environment will be free from hazards of

pollutions. The business will ensure the welfare and health of the residents in the

immediate vicinity of the shop.

F. Highlights of the Project

Satisfying demand, customer’s expectation and gaining profit are the main

goals of almost all businesses and companies nowadays. Because the Renbel

Furniture and Appliance Center has the same goal, the management wanted to

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put its own furniture repair firm generate income and to provide repaired outputs

with higher quality.

1. History

The project came from the response of Renbel Furniture and Appliance

Center to the needs of its customers. Considering the fact that the business is

having some sort of problems, especially when their furniture had broken, the

proponents come up with the idea of building its own furniture repair firm.

Furniture repair and restoration service is a cost effective solution that will save

the customers the cost and trouble of replacement. Having a furniture repair firm

would help the business to generate additional incomes, and to provide excellent

service, so the management considers the idea of investing in the said project.

2. Project Time Table and Status

The proponents created a time table for the pre-operation activities; these

activities are established after gathering data, through interviews, with regard to

the proposed project.

1. Project Conceptualization and Identification

March 2018 to May 2018

2. Project Feasibility Study Preparation, Screening and

Evaluation

June 2018 to July 2018

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3. Registration of Business Name and Securing Necessary

Permits

August 2018 to September 2018

4. Acquisition of Land And Equipment

October 2018 to November 2018

5. Construction of Business Building

December 2018 to February 2019

6. Hiring and Training of Personnel

March 2019 to April 2019

7. Pre-Operation

May 2019 to June 2019

8. Start of Operation

July 2019

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 2018 2019
ACTIVITY
Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July
1. Project
Conceptualization
and Identification
2. Project Feasibility
Study Preparation,
Screening and
Evaluation
3. Registration of
Business Name and
Securing Necessary
Permits
4. Acquisition of
Land And Equipment
5. Construction of
Business Building
6. Hiring and
Training of Personnel
7. Pre-Operation
8. Start of Operation

Figure 1. Gantt chart

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 The Gantt chart shows the series of activities of MUEBLES Repair and

Restoration Services before it officially start its operation on July 2019. The

conceptualization and identification of the project would take three (3) months,

from March 2018 to May 2018. Project feasibility study preparation, screening

and evaluation would run for two (2) months from June to July 2018. From

August to September 2018, registration of business name and securing

necessary permits would be done which would take two (2) months. Then

acquisition of land and equipment would be good for two (2) months from

October to November 2018. After the acquisition of land and equipment,

construction of business building would take three (3) months from December

2018 to February 2019. From March to April 2019, hiring and training of

personnel will commence. Pre-operation period would take two (2) months from

May to June 2019. Start of business operation will start on July 2019.

3. Nature of the Industry

MUEBLES Repair and Restoration Services is a service-oriented

business. The furniture repair service take great pride in bringing furniture back

to its beautiful beginnings and therefore take several steps to ensure the

customers are pleasantly surprised with the end-results.

4. Mode of Financing

The business itself will provide for all the expenses and cost incurred on

this project. These include the construction of the facility, acquisition of the

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machine and equipment, hiring and training of the personnel, maintenance cost

and operation cost of the project.

5. Investment Cost

The proposed project will require an initial investment of Php 2,835,227.39

to finance all the expenses and preparation of the business operation. The

amount will cover fixed assets such as land, construction of building,

procurement of the equipment and wage for the workers. The proposed building

to be established will have a life span of 15 years.

G. Major Assumptions and Summary Findings

1. Market Feasibility

The present demand for furniture restoration service and prevailing market

prices are some factors to consider that will affect the market feasibility of the

service.

These factors that may affect the market like demand, supply and price.

Moreover, the number of customers and the quality of service can also affect the

demand.

2. Technical Feasibility

MUEBLES Repair and Restoration Services will offer the best service to

its customer. The business is armed with latest equipment and utilizes new

techniques/technologies in furniture restoration. It will be located at Poblacion

Barangay 9, Lipa City. In order to win loyal customers, the proponents will make

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sure that they give their customers quality service at reasonable prices. Different

services will be offered to the customers depending on their needs and wants.

Office hours start from eight in the morning (8:00 am) to five in the

afternoon (5:00 pm) and will run six (6) days a week. Services will depend on

customer needs.

3. Financial Feasibility

The financial aspect of the study for the project has a very important role

in determining and decision making of the business. The feasibility of the project

relies on the capability of the business enterprise to generate income and to

cover all the expenses of operation.

The proposed project will require an initial investment of Php 2,835,227.39

to finance all the expenses for the preparation of the business. The financial

expenses will be provided by the Renbel Furniture and Appliance Center itself.

4. Socio-Economic Feasibility

This proposed project aims to reduce the unemployment rate in the area.

The facility will generate job opportunities to the locals. Moreover, the

government will also benefit from this project in terms of taxes which can help to

finance the government for its activities and for the general welfare of the public.

5. Management Feasibility

The employees of the project will receive their appropriate salary

depending upon their position and all workers will be paid fairly with the

prescribed minimum salary per day as the lowest salary to be received by the

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workers. To promote and encourage good performance of the employees, the

business enterprise will provide incentives and benefits.

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