Whats missing?

Every home needs.....

Resources
According to a study the forest land of
Calbayog has an area of 6,327.91
hectares. Happy Valley and Seven
Hills are remote areas with
barangays producing forest products
like rattan, cogon, nito and other
kinds of wood products . These are
adequate supply of raw materials for
producing furniture and export
oriented products.

Economic Benefit
Furniture

is one of the priority export products given assistance

and support by the government. Export has grown at an annual
average of 11 percent in the last ten years. In fact, it has made
significant inroads in the highly competitive export market.
Developments in the industry have also seen the increase in the
number of production infrastructures and highly skilled craftsmen
and manpower supporting the surging growth of the industry.
Filipino craftsmen learned quickly not only the art of masonry but
also intricate carvings and adornments on doors and other church
furnishing
Later developments saw more downstream value-added
activities. With continuous production improvement and product
development, the furniture makers were soon able to export
complete furniture pieces which attracted the attention of the
international market.

Exporting
Major

raw materials for production include rattan poles

and splits, lumber, metal bars or rods and fossilized stone
and horn. Other inputs include fittings and finishing
materials.
Rattan poles used by the industry are either sourced
locally or imported.
In previous years, the traditional suppliers included
Vietnam, Malaysia and Myanmar. Imported rattan poles
are mostly those with a diameter of 2 cm or more.
Filipino furniture firms have likewise expanded their
capabilities to include production of contract furniture.
They have started to be recognized as a preferred source
of furniture for hotels, restaurants, offices and other public
institutions.

Objectives
1.

To recognize the craftsmanship of calbayognons

throughout the nation.

2.

To meet customers satisfaction.

3.

To create more employment opportunities for

the local calbayognons.

4.

To contribute economically to the community in

developing a progressive city for the future
generations.

CHAPTER 2

USINESS PROFIL

Business Name
The

registered name of the project

shall be Handy Woodworks Furniture
in Calbayog City to which the
proponents deeply dedicate their
knowledge and skills to succeed in
the study of the proposed project.

Business type
The

proposed project shall operate

on a partnership form of ownership.

Business Location
The

project location is at Maharlika

Highway, Calbayog City which is
accessible to all forms of
land
transportation, thereby facilitating
the delivery and transport of both
raw materials and finished products.

Business office
The

office will also be found at the

business address where all
transactions will be conducted
between the management and the
customers.

Affinity to Regional or
Sectoral Studies
This

project is also in conformity with

the self-sufficiency programs being
launched by the local government
units. Through this business
endeavor, the proponents will be
able to contribute to the livelihood
development programs of the city
and the region as a whole.

Project Potential and

Proponents
The

proposed project is of great value to the

agri-business sector of the City. There are few
wood furniture makers in some barangays whose
production could meet the demands by the
public and whose designs are no of good quality.
The Proponents of the business are Vanessa Jean
Sepeda, Ma. Jessa Jacala, Renalyn Abenir,
Stephanie May Guiret, Haide Contrata, and they
hope to put into use their managerial knowledge
and skills learned in schools and can be of
financial help to their respective families.

Chapter 3

Market Aspect

Industry Profile
Furniture

is one of the most

important entities in a home. A home
without furniture is incomplete.
Home furniture usually includes
sleeping beds, tables, dining set,
sala set and so on.Having new
furniture can make all the difference
to your home.

Table II
Excessive

Adequate

Inadequate

Custom-made

0%

80%

20%

Ready-made

20%

80%

0%

Table III
Furniture

store

in

Calbayog City

Calutan

Marketing

Percentage

of

Reason Given

respondents

50%

Inc.

Quality,

Design

and Price

Home Style

10%

Quality

Our Home

10%

Quality

Five star

10%

Quality and Price

E and B Marketing

20%

Quality

and

Design
Tigley
Depot

Furniture

20%

Originality,
quality and price

Preferred furniture

ready made; 20%

custom made; 80%

Mostly used Furniture

metal; 10%
plastic; 10%

wood; 80%

Chart Title
14,000
12,000
10,000
8,000
In thousands

6,000
4,000
2,000
0

handy woodworks
calutan inc.
tigley furniture depot

Promotion Distribution
Program
Products

promotions will be made by

means of advertisement such as broadcast
media (radio), newspaper ads, online
advertising bill boards and picture catalog
of the products on magazines. And also
the key to marketing, no matter what the
budget, is to gain exposure to your target
demographic. Once you find out how to
have a presence where your audience
hangs out, you can easily go from there.

Product Conceptualization
Development
The

production of wood furniture will

be based according to the expertise
of the carpenters and the desired
design of the customer. We shall
accept any order requested by the
customer as long as it is in the
carpenters field of knowledge.

PRICING STRATEGY
Wood Furniture

Production Cost

Mark-up

Actual
Price

Sala set

P31,000

P1,500

P32,500

Dining set

P50,000

P1,000

P51,000

Bed set

P51,000

P2,000

P53,000

Book cabinet

P9,000

P1,000

P10,000

Television rack

P5,000

P1,500

P6,500

Office

P45,000

P2,000

P47,000

furniture

Selling

Sala Set

Price:
32,500

Dining set

Price:
51,000

Bed set

Price
53,000

Book
Cabinet

Price:
10,000

Television
rack

Price:
6,500

Office
furniture

Price:
47,000

OTHER CUSTOMIZED
PRODUCTS

OTHER CUSTOMIZED
PRODUCTS

Chapter 4

rganizational Aspe

Organizational Structure
General
Accounting
Manager

Chapter 5

Production Process

Flow chart

Raw Materials

Kamago
ng
(tiger
ebony
wood)

Yakal
(Shore
a
astylos
a)

Banuyo or
binayuyo
(black
currant
tree)

Gisok or
gisokgisok
(Hopea
philippine
nsis)

Lawaa
n or
lauan
(shorea
)

Narra
(Burmese
Rosewood or
Red
Sandalwood)

Toog
(Philippi
ne
rosewoo
d)

Dao tree
(New
Guinea
walnut or
Argus
pheasant
tree)

Other woods used

Marine

plywood (commonly used)

Hamorawon
Anislag

Equipments
Circular

Saw/Hand Saw used for

wood cutting
Table Planer/Hand Planer used for
flattening and dimensioning woods
Router used for wood carving
Hand Drill used for drilling sizes of
hole
Chisel used to cut and shape wood
Spray gun (with compressor)

Scrap sale
Fire

woods
Sawdust charcoal
Key chains
Plaque
Nameplate

Plant lay-out (interior)

Plant lay-out (exterior)

Chapter 6

Financial
Aspect

TOTAL PROJECT COST.

LAND

2,000, 000

BUILDING

800, 000

EQUIPMENTS

600, 000

WORKING CAPITAL
PRE-OPERATING COST
TOTAL

1,200, 000
300, 000
4,850, 000

Income Statement
2015

2016

2017

NET SALES

6, 000, 000

7, 800, 000

10, 080, 000

COST OF SALES

3, 600, 000

4, 680, 000

6, 184, 000

GROSS INCOME

2, 400, 000

3, 120, 000

3, 896, 000

OTHER INCOME

50, 000

150, 000

175, 000

Utilities

125, 000

150, 000

210, 000

Repair & Maintenance

130, 000

156, 000

219, 000

Administrative

360, 000

432, 000

605, 000

460, 000

552, 000

773, 000

Miscellaneous

75, 000

90, 000

126, 000

TOTAL

1, 150, 000

1, 380, 000

1, 933, 000

1, 300,000

1, 890, 000

EXPENSES:

Selling

&

Distribution

OPERATING

EXPENSE
NET INCOME

2, 138, 000

Statement of Financial
Position
2015

2016

2017

550,000

660,000

792,000

860,000

1,032,000

1,238,400

Inventory

300,000

420,000

504,000

Prepaid Expense

15,000

18,000

21,6000

Total Current Asset

1,725,000

2,130,000

2,556,000

Land

2,000,000

2,000,000

2,000,000

Building

800,000

667,000

457,000

Equipment

600,000

550,000

403,000

3,400,000

3,217,000

2,854,000

5,188,000

5,347,000

5,410,000

Cash

and

Cash

Equivalents
Accounts Receivable

Non-Current Assets

Total

Non-Current

Asset
Total Asset

Current
Liabilities
Accounts Payable

530,000

420,000

500,000

Accrued Expense

60,000

35,000

30,000

Warranty

50,000

42,000

30,000

640,000

497,000

560,000

4,850,000

4,850,000

4,850,000

5,188,000

5,347,000

5,410,000

Liabilities
Total

Current

Liabilities
Owners Equity
Capital
Total

Liabilities

and Owners Equity

STRENGTHS, WEAKNESSES,
OPPORTUNITIES, AND THREATS
(SWOT) ANALYSIS
SWOT
Strengths

Marketing

Durability

Uniqueness

Organization

Highly

operated

Loyal

business

An

excellent

Low

cost

Production
increase
without
investment
of

Financial
resources

production

management
team

Financial

Owner

skilled and

employees

Production

new

facilities

SWOT
Weaknesses

Time

consuming

Workers
causing

disaster

absenteeism.

Natural

Lack

offence
of

Lack

of

resources

interest

of

Deterioratio

their job.

of

Criminal

market

function
Opportunities

Technology

New

staff

and

Development

Investments

Boycott

of cities

expertise

Threats

Competitive
market

Conflict
interest

Labor
movement

of

Competitors

THANK YOU!