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Business Proposal for University Shop, Inc.

ONE PAGE BUSINESS PLAN OF UNIVERSITY SHOP (U-‐SHOP) ................................................................................................... 2 INTRODUCTION .............................................................................................................................................................................................. 3 ADVANTAGE FOR YOU… EARLY INVESTORS .............................................................................................................................. 4

SAMPLE CUSTOMER PROFILE .................................................................................................................................................................. 5 CURRENTLY: CLASSPRINTS on its 5th Year… ..................................................................................................................................... 6 CURRENTLY: EXCLUSIVE SOUVENIR STORES OF OTHER UNIVERSITIES ............................................................................ 7 GOING FORWARD: GREAT ACTIVE & COMPLEMENTING MANAGEMENT TEAM ............................................................. 8 GOING FORWARD: ORGANIZATION STRUCTURE ........................................................................................................................... 9 GOING FORWARD: PRODUCT OFFERINGS .......................................................................................................................................... 9 GOING FORWARD: REVENUE STREAM ............................................................................................................................................. 12 GOING FORWARD: ONE SAMPLE STRATEGY i.e. WEBSHOP ................................................................................................... 13 GOING FORWARD: INVESTMENT NEEDED ..................................................................................................................................... 14 GOING FORWARD: PROFIT & INTEREST on YOUR INVESTMENT ........................................................................................ 15 PROSPECTIVE SPACES .............................................................................................................................................................................. 16


ONE PAGE BUSINESS PLAN OF UNIVERSITY SHOP (U-‐SHOP) This page gives a one-‐page snapshot for the Business Plan of the U-‐SHOP and the Business Enterprise that will be anchored on it. The proposal attached presents the unique opportunity for this business to serve the market as timely and wanted. And thus shows its feasibility and profitability. Investment options are available for qualified parties.

Become the #1 PERSONALIZED MERCHANDISING PROVIDER in the region within 5 years, with its dlagship showcase shop in the University of the Philippines. Supported by an international network of suppliers to provide the goods and an army of "AVON sales-‐ladies" and afCiliated franchisees to sell the goods.

One Stop Center for all personalized printing needs in Asia.

Generate P4,000,000-‐P5,000,000 in total revenue in 2015. Achieve a 10-‐20% prodit stream after taxes and establish a dinancial track record. Partner with 100 UP afdiliates i.e. admin ofdices, student organizations, alumni. Partner with key suppliers and providers. Establish an Active & Complementary Management & Advisory Team. Provide dividends on the 2nd-‐3rd year and offer ROI on the 4th-‐5th year.

Become nationally known as the "one-‐stop-‐shop" resource center of UP Diliman. Use network, personal contacts to create opportunites of "afdiliate-‐partnerships". Use 5 years track-‐record of ClassPrints with UP, suppliers, et. al. Create products & programs for others to sell that serve their fundraising needs. Exit strategy: sell to major retail chain or networking business in 5 years or hire a professional management team.

Setup ofdice, Recruit, Develop branding and marketing plan by 1/30. Develop "Adiiliate Program" + WebShop. Contract with Suppliers & KEY PARTNERS. Complete invitation letter and dissemination to all UP afdilaites. Complete dirst shop by 2/28.

VISION

MISSION

OBJECTIVES


INTRODUCTION The three basic need of every human being are food, shelter, and clothing. In Asia, the food and real estate business are cornered by large multinationals already, except personalized Clothings, or what we refer to us “PERSONALIZED MERCHANDIZING”. Personalized Clothing, which is combined with every human’s desire to personalize or stamp his or her identity on what he or she wears, is a unique opportunity to establish a business network which can grow beyond the physical borders of its office or shop, or even country. The availability of technology, its proper application, and an effective branding and marketing program will allow all of these to be fused as one business entity, at the least set-‐up cost possible. The business proposal and the budget includes the set-‐up and operation cost for one year of the WHOLE BUSINESS NETWORK, now referred to as the “CENTER”. This CENTER, will have its anchor on a physical “Souvenir Shop” to be located inside the University of the Philippines, Diliman Campus. This will also be utilized as a marketing tool as the physical shop will be used as a showcase of the CENTER. Nonetheless it must be emphasized that the whole business idea targets beyond the walls of the U-‐Shop as it will be supplemented by a WebShop and the army of “Avon Sales-‐ladies” and “Affiliated Franchisees”. (The revenue projections from each of the green circles below will be independent of each other, but the combination of them will only complement the income-‐generating powers of each i.e. Total is larger than sum of its parts. Details of revenue flows & strategies for each can be made available for committed investors.)

Class Prints #3

WebShop #4

U-‐SHOPs #5

Avon Sales-‐ladies &

Franchisees #6

Back Ofdice #1

Partners #2

CENTER


ADVANTAGE FOR YOU… EARLY INVESTORS • Business plan consists of clearly laid-‐out revenue stream for the next 3 years with conservative and ideal dividend-‐sharing schedule.

• A clear exit plan with scheduled ROI is also in place. • ClassPrints, one of the anchors of the CENTER has already been in business for 5 years.

• 7 years of working relationship Partners of Local Direct Suppliers i.e. suppliers who also own their own production factories.

• 7 years of working relationhip with other Distributors and Vendors in the Printing Business.

• A well-‐documented portfolio of successful orders made by famous VIPs. • Connection to Factories in Guangdong, China. • Has been awarded an exclusive contract via the Autonomous School to set-‐up a Souvenir Shop starting January 2015.

• Professional Board of Advisers including directors/professors in University of the Philippines Systems, Ateneo, and AIM.

• Management Team who also bought equity in the business. • CEO and VP with combine 10 years of experience in the Merchandizing Business.

• A set of local suppliers with over 50 years of experience and operate their own factories.

• Among the few certified printers by the University of the Philippines to print and sell UP-‐products globally.


SAMPLE CUSTOMER PROFILE

Communities UP

Ateneo Miriam

University Belt

Characteristics of Typical Customers

1. Professionals/officers with busy

schedules 2. Many friends and networks 3. Higher disposable incomes 4. Willing to spend for good quality

products 5. Technologically connected 6. Has Facebook 7. Don’t mind earning a commission

for referrals 8. Looking for additional passive

incomes

Opportunity for a BUSINESS to Service and to Cater to these “Higher-‐End”

Needs.

Students

Student Organizations

Professors

Administrators

School/Colleges Ofdices

University Ofdices

Alumni & Associations

Employees & Cooperatives

Outsiders/Guests/Foreigners


CURRENTLY: CLASSPRINTS on its 5th Year… Some Samples of Recent Portfolio

Resume • Added Value: “B2B” (Business-‐to-‐

Business). Helps others make money

• 5 Years in operation • Monthly Revenue:

P300,000 to P700,000 • Monthly Profits:

P30,000 to P150,000

No Marketing Budget!


CURRENTLY: EXCLUSIVE SOUVENIR STORES OF OTHER UNIVERSITIES

This picture is the A-‐Store, Ateneo’s exclusive souvenir shop. Harvard, Princeton, Hong Kong University and Tsinghua University. But it represents only one component of the whole business idea of the CENTER. PRODUCTS & SERVICES OFFERINGS

Souvenirs, Memorabilia, Apparels & Non-‐Apparels, Books (Required Readings, Best Sellers Et. al), Tickets, Laptops & Electronics, Services (Bulk Orders), Coffee Shop


GOING FORWARD: GREAT ACTIVE & COMPLEMENTING MANAGEMENT TEAM

Organization Owners/Presidents/Founders Strengths

ClassPrints Austin Ong CEO Rommel Miel VP Admin & Legal

Founder of ClassPrints and multi-‐awarded Philamlife investment agent. Experienced coordinator to train and motivate workforce. Expert in import-‐export of goods from China. Expert in Legal documentations and administrative tasks. Managing partner of ClassPrints for the past 2.5 years. With extensive network in the Legislative, Judicial, and Executive branches of government.

TsokoNUT Café, Marina Seafood & W.L. Foods

Charles Lim (Masters in Management) Finance Auditor

Expert in café & restaurant business, inventory management, and financial statements.

Moonleaf MilkTea Adrian Adriano VP Marketing & Products

Built a successful franchise from scratch in less than three years. Mastered the craft of marketing a lifestyle among the University students.

UP University Student Council (USC)

Tin Bactol Marketing Assistant

Sixth-‐year student in UP Diliman. Officer in several organizations including the USC and a sorority. Expert in ‘door-‐to-‐door’ marketing.

UP Library Science JP Bernardo Head of Technology Services

Project head in the team that built the UP election registration system. Expert in systems analysis & design, IT, software & hardware. President of Kim Chiu, Regine Velasquez, and Carla Abellana’s Official Fan Clubs.

Nepo Mall Branding Head Consultant

Ryan Roberto Head of Designs & Standards

Cum laude in Visual Communication from UP Fine Arts. He was the Head Artist of JMC Advertising Work. He is currently the Brand Manager for Nepo Malls and all its subsidiaries.


GOING FORWARD: ORGANIZATION STRUCTURE

GOING FORWARD: PRODUCT OFFERINGS

1. T-‐shirts 2. Polo shirts 3. Jackets 4. Mugs 5. Keychains 6. ID Tags 7. Bagtags 8. Mugs 9. Caps (Sporty, Golf, Visors) 10. Bags (Travel, Backpacks, Office) 11. Umbrellas 12. Paper weights 13. Pens 14. Notebooks 15. USBs 16. Picture Frames

SPECIAL PRODUCTS 1. Planners 2. Discount Cards 3. Gift Certificates 4. Books 5. Uniforms 6. Medals & Commemorative Pins 7. Electronics/Laptops


GOING FORWARD: REVENUE STREAM

Revenue Stream (Total Sales) 1st Year Low End High End ClassPrints **(already in operation) 2,400,000 4,800,000 WebPortal 1,200,000 2,400,000 Outlet (Souvenir Shop) 1,200,000 2,400,000 Franchises 150,000 300,000

Total 4,950,000 9,900,000 2nd Year (50-‐20% growth) Low End High End ClassPrints **(already in operation) 3,600,000 5,760,000 WebPortal 1,560,000 2,880,000 Outlet (Souvenir Shop) 1,560,000 2,880,000 Franchises 195,000 360,000

Total 6,915,000 11,880,000 3nd Year (50-‐20% growth) Low End High End ClassPrints **(already in operation) 5,400,000 6,912,000 WebPortal 2,340,000 3,456,000 Outlet (Souvenir Shop) 2,340,000 3,456,000 Franchises 292,500 432,000

Total 10,372,500 14,256,000

Each of these circles represents INDEPENDENT REVENUE POINTS ₱₱₱

CENTER

Class Prints #3

Web Portal #4

Outlets #5

Franchises #6

Back Of`ice #1

Partners #2


GOING FORWARD: ONE SAMPLE STRATEGY i.e. WEBSHOP WebShop = Foundation of a Semi-‐Networking Pyramid Business Model

Strategy

1. The Website, or Webshop, will allow the Organization Client to set up “Shop” online once it makes a Purchase Order, where it can showcase its personalized items to its members, collect orders, pay and distribute the sold items. “Crowdsourcing without the hassle”.

2. In addition to sure order beyond the Shop, the opportunity to cross-‐sell is opens up. For example, from the logo an organization uses for their T-‐shirt order, the Webshop can be shown how the logo will look in a mug or keychain and have a voting system for its followers to “pre-‐order”. Ultimately, leading to a new order.

3. For every new customer from the initial Organization that places a PO and opens Shop on the WebShop, the organization/referrer will get a commission. Thus, every referrer will also make money from the business… thus the semi-‐networking pyramid business model. It is called “semi-‐networking” because unlike unsustainable networking schemes around, our system only rewards a commission on the first referral.

WEBSHOP

#1 Organizations order

in Bulk

#2 Organizations' Members Sell to their Friends &

Families #3

Friends & Families ORDER for their

Companies/Alumni Group/Gifts


GOING FORWARD: INVESTMENT NEEDED Initial Start-‐up Expenses Unit Months

Fixed Cost Corporate Registration & Paid Up 200,000 1 200,000 WebShop Set-‐up 50,000 1 50,000 Mobile App Set-‐up 20,000 1 20,000 Branding and Logo Set-‐up 20,000 1 20,000 Marketing Budget Setup-‐up 150,000 1 150,000

Subtotal Fixed Cost 440,000 Operational Cost CEO (Part-‐time) 50,000 12 600,000 VP Admin & Finance 30,000 12 360,000 VP Marketing & Products 30,000 12 360,000 Shop Manager 20,000 12 240,000 Secretary (1) 15,000 12 180,000 Messenger/Boy (1) 10,000 12 120,000 Marketing Officers (2) 20,000 12 240,000 Honoraria for Advisers (P3000/quarter x4) 48,000 1 48,000 Consultants 100,000 1 100,000 Website maintenance 5,000 12 60,000 Marketing maintenance 5,000 12 60,000 Branding maintenance 5,000 12 60,000 Office Space (Back Office) 25,000 12 300,000 Office Supplies 5,000 12 60,000 Transportation 10,000 12 120,000 Communication 5,000 12 60,000 Shop Rent** (Possible this would be gotten free) 75,000 12 900,000

Subtotal Operation Cost 3,868,000 Inventory Products for sale (initial stock) 750,000 1 750,000 Start-‐up machines 250,000 1 250,000

Subtotal Inventory Cost 1,000,000 Subtotal Working Budget (based on only 1st year targets) 5,308,000

Additional Based on Performance Incentive Package (Performance Bonuses) 20,000 12 240,000 Contingency 200,000 1 200,000 CEO's Discretionary Fund (Hiring of Contractuals, Coordination, Etc.) 252,000

Subtotal Performance-‐Based Cost 692,000 Initial Working Capital: 50% of Shares Investors Can Buy-‐in 6,000,000

Owners Share (50%) 6,000,000 Initial Working Value of Business 12,000,000


GOING FORWARD: PROFIT & INTEREST on YOUR INVESTMENT Profit Margins Projections

Low End High End 1st Year 2nd Year 3rd Year 4th Year 5th Year 1st Year 2nd Year 3rd Year 4th Year 5th Year

Revenue 4,950,000 6,915,000 10,372,500 12965625 16,207,031 9,900,000 11,880,000 14,256,000 17,820,000 19,602,000 Operating Cost 5,560,000 6,116,000 6,727,600 7,400,360 8,140,396 5,560,000 6,116,000 6,727,600 7,400,360 8,140,396

Gross Income ** -‐610,000 799,000 3,644,900 5,565,265 8,066,635 4,340,000 5,764,000 7,528,400 10,419,640 11,461,604

**Before taxes, fixed set-‐up cost (P440,000), depreciation, and unforeseen expenses. Annual Operating Costs increases by 10%. 20 or 50% of net income will be distributed as dividends on the 2nd and 3rd year. Offer of ROI at 4th or 5th year.

SAMPLE DIVIDEND INTEREST DISTRIBUTION SCHEDULE For a P1.2 Million (10% Equity) Investment Assuming 20% & 50% dividend sharing Low End @ 20% High End @ 20% Initial Investment of 1,200,000 Interest

1,200,000 Interest

1st Year 0 0.00% 3.62% 86,800 7.23% 2nd Year 15,980 1.33% 5.47% 115,280 9.61% 3rd Year 72,898 6.07% 9.31% 150,568 12.55% 4th Year 111,305 9.28% 13.32% 208,393 17.37% 5th Year 161,332 13.44% 16.27% 229232.08 19.10% Selling Price @ P20 M 2,000,000 167% 208.33% 3000000 250% Total ROI in 5 Years 197% 315.86% Low End @ 50%

High End @ 50%

1st Year 0 0.00% 9.04% 217,000 18.08% 2nd Year 79900 6.66% 15.34% 288,200 24.02% 3rd Year 182245 15.19% 23.28% 376,420 31.37% 4th Year 278,263 23.18% 33.30% 520,982 43.41% 5th Year 403,331 33.61% 40.68% 573,080 47.75 Selling Price @ P20 M 2,000,000 167% 208.33% 3,000,000 250% Total ROI in 5 Years 245% 414.64%


PROSPECTIVE SPACES

E. Virata Hall, E. Jacinto Street, UP Campus, Diliman, Quezon City

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