Rattanlux Artisan Bags: Business Plan
Rattanlux Artisan Bags: Business Plan
Rattanlux Artisan Bags: Business Plan
Business Plan
Submitted by:
Hembrador, Gabrielle
De Austria, Aaron John
Rossel, Kate Marie
Table of Contents
Title Page
I. Introduction 1
II. Business Production 2
Nature of the Product 2
Company Name 3
Product Description and Features 3
Type of Organizational Structure 4
III. Manufacturing Process 8
Production Process 8
Finish Product 11
IV. Marketing Process 12
Country 12
Target Market
Pricing 12
Promotion 13
Distribution 15
V. Financial Plan 18
Statement in Changes of Owner's Equity 18
Schedule of Initial Project Cost 19
Income Statement 22
Balance Sheet 23
VI. References 24
CHAPTER I
INTRODUCTION
The Philippines is a major Asian producer of quality rattan products. Rattan working is a
traditional occupation of the Filipinos. There are more than 4 million people in the country who
are dependent on the rattan sector for their livelihood or additional cash income. The Philippine
rattan industry is a major exporter of high-quality rattan products to different countries. They are
now making significant entrance into the international market (Pabuayon, 2018).
The proponents will concentrate on the effective ways of establishing a successful rattan
business which is named as Rattanlux Artisan Bags. The basic details of the business such as
company name, company logo, products’ profile, organizational structure will be determined.
The manufacturing process of Rattanlux Artisan Bags will be identified to further study the flow
of this business. After knowing the business’s characteristics and manufacturing processes, the
proponents will determine the marketing strategies to promote the new business and acquire
more customers. Lastly, financial plan will show the required capital, projected income and
The purpose of this paper is to establish a new business with its best marketing strategies
to attract customers. The documentation of well thought ideas, combined with an effective
strategy, and carefully planned projections will markedly improve the chances of long-term
survival and growth of Rattanlux Artisan bags. This will serve as a key point of reference for
investors, partners, employees and management to measure progress against objectives. Creating
the business plan helps the proponents to analyze the competition. All companies have
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competition in the form of either direct or indirect competitors, and it is critical to understand the
contributes to employment and income generation of people who have few other livelihood
options. It also regains the part of life for Filipinos who, over the years, have developed social
relationships linked to the rattan production-to-consumption system. This will help in improving
the economy of our country. Selling rattan products to other countries will make our fellowmen
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CHAPTER II
BUSINESS DESCRIPTION
Rattan grows wild in the natural forests. Rattan is a family of climbing palms found in
tropical regions. There are different types of rattan palms, such as high or low climbers, single
stemmed or clustered rattan species. Some have very short and underground stems. it grows like
a vine, with the stem measuring 2-5 centimeters in diameter. The stems are covered with spikes
that function as hooks to climb vegetation so it can access the best sunlight. Several rattan
Rattan sheaths have spines for protection, as do 'whips,' which are also spine-covered.
These play an important role in rattan's growth over trees and other plants in the rainforest.
Rattan is an appealing resource because it is easier to harvest and transport than timber, and it
grows faster than trees. There are many things to do in Rattan because it is light, durable and
Food: The inner core as well as the shoot of some of the rattan species is edible.
Handicraft: Handicraft, besides furniture, provides the main income of the rattan industry.
Rattan bags have long been used not only for storage but also a status symbol among
indigenous groups of women in the country. The knowledge of weaving with this vine has been
passed down through the generations, and purchasing a rattan bag from the Philippines helps to
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not only keep those traditions alive, but support the local communities. This is the chosen
product of the business to make people in the other countries love one of our native products.
COMPANY NAME
Rattanlux Artisan bag Enterprise, as proposed by the proponents, will be the name of the
company. Rattanlux Artisan was chosen as the name of their company because its symbolisms
match their vision and personalities. The Rattanlux Artisan bags are an exquisite blend of old
traditions and vintage modern fashion design that will add an artisanal elegance touch to your
style. Furthermore, Rattanlux Artisan enterprise is targeting people who love to see their
fashionable even in their beach "hassle-free fashionable," which is why the proponents chose
Having a lighter shade of red, which employs darker pink in the logo can retain a sense of
energy and cheer blended with a perception of soothing calm. Using a circle in a logo can
suggest community, friendship, love, relationships and unity (Christie, 2021). But the circle in
this logo are curvy, which symbolizes that there are rocky roads in growth of this business but
the relationship with the customers will still remain and continuous. There is also a drawing of
simple rattan bag in color white. This drawing portrays what are the products of this business.
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Figure 1.1 Company logo
Our Rattanlux Artisan Bags are high-quality vintage-style rattan bags that are entirely
handmade and lovingly crafted. Our natural hand-woven rattan bags come in a convenient size
that measures approximately (19cm) x (14cm) x (7cm), nevertheless it comes in two colors
(Black and White) for a chic and elegant look, and it is large enough to hold all of your other
essentials.
Its dainty and unique design will allow you to be more attractive and charming among
people, and this luxurious vintage rattan bag is designed with a wooden top handle and chain
shoulder strap, which makes the entire bag look richer and full of three-dimensional sense.
Aside from its luxurious vintage design, a rattan bag is an excellent travel companion in
a variety of ways. When shaped as a cross body bag, it is convenient enough for any excursion,
from the city to the countryside. Slide your phone, wallet, passport, and any other necessities
inside, and you're ready for a night out, a long flight, or a stroll on the beach.
That's not it! Our rattan bags are also environmentally friendly/protective because they
can be recycled without harming our bodies and contribute to the reduction of waste and toxic
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Rattanlux Artisan Bags is a sole proprietor business which is owned by one person only –
Mr. Aaron John De Austria. This business uses internet and online media to promote, buy and
sell various products and services. The proponent chooses to engage solely as it allows him and
the business to access the market with ease. He will change the management process when he
A business’ success is firmly established if it is well managed by the manager with the
cooperation of the employees. The business has been divided into the labor and operations
through its personnel. Their duties and responsibilities are listed below the chart.
1. Keeping employees motivated, resolving conflicts and making hard decisions for the
employees.
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2. Being in charge for hiring new employees and being a good judge of character that
will help ensure the right people will be hired to maintain an efficient and motivated
team.
3. Ability to solve problems that may come up during a typical work day.
4. Develop business strategies to raise our customers’ pool, expand store traffic and
optimize profitability
5. Meet sales goals by training, motivating, mentoring and providing feedback to staff
7. Conduct personnel performance appraisals to assess training needs and build career
paths
8. Deal with all issues that arise from staff or customers (complaints, grievances etc)
1. Analyze and determine potential markets for services and factors affecting product
demand.
2. Measure, forecast and track marketing and sales trends, analyze collected data.
media
5. Prepare content for the publication of marketing material and oversee distribution
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Position: Production staff
1. Establishes internal controls and guidelines for accounting transactions and budget
preparation.
5. Following health and safety standards and maintaining a clean workstation and
production floor.
10. Analyzing all operations and forwarding suggestions for improvement to the
Manager.
There will be four hired workers in the company which will be divided as cashier, checker
and two sales staffs. Here are their duties and responsibilities.
Position: Cashier
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1. Take customer orders at the counter, receive payments and present change to
customers
2. Manage the register, including all credit card and cash operations
3. Ensure a balance of the register at the end of the shift or working period
4. Check bills to see if the correct amount has been displayed and print them out
8. Sort, count and wrap currency and coins and arrange for them to be deposited to the
bank
Position: Checker
2. Checking that the assembly or production line adheres to standards and procedures
5. Monitoring the use of equipment to ensure it is safe and discard any that do not meet
requirements
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Duties and Responsibilities:
care.
The procured raw materials for production and packaging are processed to manufacture
the final product. These raw materials underwent several processes to arrive at the end product.
The raw materials are necessary in order for the enterprise to produce the product. Rattanlux
PRODUCTION PROCESS
The production process of rattan bags consists of six steps will be shown and discussed
below:
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The Procurement of
Raw Materials
Product Making
Quality Assurance
The Packaging
The proponents procure their raw material rattan at Luzon Rattan Industries (Lri) located
Makati City. G/F LRI Business Plaza, 210 N. Garcia Street. And the other materials the
proponents procure in small-time suppliers within Divisoria, Manila. There will be a one week
advance for the request of supplies needed to make sure the workers will not run out of the raw
materials.
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The Pattern Making and Measuring of Rattan
The workers need to make patterns for the designs of rattan bags. Each pattern should
Product Making
After finalizing the patterns for the designs of the bags, the workers will now start on
making rattan bags. The products are hand-woven one by one by an artisan to preserve the
Quality Assurance
The finish products will be checked by another worker. This is to ensure the there will be
no defective products served to the customers. The weaving faults present in the bag will be
repaired manually. All of the products should fall on the right standards and quality of the
business.
The Packaging
The products will be shipped with a bubble film wrapped on every bag. These items will
The bags will be promoted through the integrated marketing communication. The
proponents will use different social media sites, create an own website and posters to promote
the products. Every customer that the business will acquire will be advised about the schedule of
shipping the products. The products will be distributed through the cargo ships of the country.
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FINISH PRODUCT
In modern society, rattan bags have become popular since they are versatile. t is a simple
bag that serves best for various occasions. Rattan bags are made with palm tree natural materials
which endures different frictions and therefore can be used for a long time. They are designed
with buttons to help you access your items quickly and pack delicate items. Get your Rattanlux
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CHAPTER IV
MARKETING PROCESS
COUNTRY
Rattanlux Artisan bags are available at our warehouse in Tondo, Manila. The location is
very convenient, and the proponents who decide to export the country can see that there are no
competitors within our products. Maldives, because our main marketing is a beach destination,
and we all know Maldives has a lot of 27 Instagrammable beaches. And the Maldives in the early
twenty-first century, there has been a global push to phase out lightweight plastic bags.
Customers have traditionally been given free single-use plastic shopping bags made of low-
density polyethylene (LDPE) plastic. Specifically, our products because Rattanlux Artisan bags
are eco-friendly.
Maldives have been our countries part for very long time. Most of the products exported
to them are food products. Our country has already good reputation for the Maldives. Making a
new deal with them regarding the rattan bags will expand the good relationship of the two
TARGET MARKET
Maldives has 20 regions which have an average or 27,000 per region. The target market
of this business is the Millennials in Maldives. These are the people who are born between 1981-
1996 (Beresford, 2022). Their current ages are 26-41 years old. The consumers in this group have
an above average per-capita income. They are generally keen online shoppers. As a rule, they
tend to be conspicuous consumers with high expenditure on watches, jewelry, bags and sporting
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goods. They are environmentally aware and look for quality and innovation in a product.
Maldivian Millennials are the perfect target for this business because they love leisure things like
bags.
PRICING
The rattan bags will be sold in 2,000 for Philippine peso or 600 in Maldivian Rufiyaa.
Every 1 Rufiyaa is equals to 3.33 Pesos. The price of the products is expensive but will surely
have a high quality. The customers will realize that the money they spent for buying our rattan
bags are all worth it. The price range of bags from Maldives converted into pesos is from 1,500
to 20,000. There Rattanlux bags will be recognized as an affordable bag in their country. The
bags that fall into price range of 2,000 are the Maldivian Tote bags (Ubuy, 2022). The
proponents will use their marketing skills to promote that Rattanlux bags are more fashionable
PROMOTION
Integrated Marketing Communication or IMC will be used as a strategy for this new
exporting business. It is an approach to promote a message through multiple strategies that work
together. It can be done through multiple media such as print, television, web and social
networks. This strategy has been proven to be reliable because fusing modern and traditional
marketing guarantees that the proponents can communicate to any parts of the world (Lake,
2019).
The proponents of Rattanlux Artisan bags believe that in this generation also in our
situation because of COVID19 and the new variant of virus called OMICRONS, the best
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promotional instrument is the social media platform. Nowadays everyone is hooked in the most
famous and most convenient communication instruments such as the social networking site. That
is why owners are taking the advantage of this generation by putting their skills and knowledge
to use. The business will create an account to Facebook and Instagram. They will also have their
own website to cater all the customers even those who are not using social media sites. Rattanlux
Artisan bags also planned to use posters and leaflets to increase product publicity as soon as the
situation was safe and secure. The owner will communicate to one of their sellers in Maldives to
post their leaflets and posters to attract more customers. It will help the resellers in Maldives to
be more profitable. The sample for our marketing strategies will be shown below:
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Instagram of Rattanlux Artisan bags
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Poster for Rattanlux Artisan Bags
DISTRIBUTION
be implied to create a profit. The business will use Business to Consumer Strategy (B2C) and
Business to Business to Consumer (B2B2C) Strategy. B2C is a strategy where businesses selling
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services and products to customers directly. The customers who directly bought from us through
the website or social sites will be catered through this strategy. Their ordered will prepared to
ship immediately. On the other hand, B2B2C strategy involves a business forming a partnership
with another business to sell their end product to a customer (Pherrus, 2021). Rattanflux Artisan
Bags will negotiate with the resellers from Maldives and these resellers will sell it to our target
customers, the Maldivians. These strategies will be shown in the figure below.
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The shipment process of these two strategies will be freight forwarding. A freight
forwarder is a company that arranges product transportation for the cargo of other businesses.
The freight forwarder generally assumes responsibility for products until they reach their
destinations, depending on the trade and transport terms agreed. The freight forwarder of
Rattanlux Artisan Bags is the DHL. They are a world recognized logistics company providing
the best express logistics services in over 220 countries. DHL’s presence in Metro Manila is also
known for its reliable parcel delivery. They have multiple service centers in Mega Manila.
DHL’s services are also made more efficient through their website. The employees can track the
shipments, get an instant quotation, and contact a DHL agent to discuss a business partnership
for the Rattanlux Artisan Bags (Dewinta, 2020). The proponents agreed that the money would be
transferred via bank e-payments. This will require customers to pay half of the purchase price as
a down payment, and if it is ready to ship, they will be required to pay the remaining amount.
Furthermore, we may offer them with COD given by the previously stated freight forwarding,
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CHAPTER V
FINANCIAL PLAN
Financing of the business project will be coming from the pocket of the owner and loan
to achieve the needed Php 5,000,000 capital (see Table: Statement of Changes in Owners’
Equity). Moreover, the next table below will also show the schedule of initial project cost of the
RattanLux Artisan Bags. This will provide an estimation of investment cost required by the
project. This will also present a detailed schedule of fixed assets, pre-operating expense and
working capital to be incurred in starting a business. This capital outlay plan is important
because it will be the basis for the business preparation. The initial project cost might be
expensive for a start-up business, but the proponents believe that their restaurant will hit their
success easily since bags is a necessity on any occasion and events that will surely hit success in
the future as the Covid 19 cases slows down and gatherings are now permitted subject to
limitations.
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Rattanlux Artisan Bags
Schedule of Initial Project Cost
(In Philippine Peso)
UNI
FIXED ASSETS T UNIT COST TOTAL
Machineries and Equipment
Computer 2 20,990.00 41,980.00
Printer 1 3,450.00 3,450.00
Telephone 2 1,250.00 2,500.00
Indirect Materials
Fire Extinguisher 1 1,000.00 1,000.00
Lights and Bulbs 4 500.00 2,000.00
Air Conditioners 2 13,990.00 27,980.00
TOTAL 78,910.00
Leasehold Improvement
Paint, Lightings and Construction Materials 500,000.00 500,000.00
TOTAL 500,000.00
TOTAL FIXED ASSETS 607,310.00
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15.0
Documentary Stamp- Rent 0
15.0
Documentary Stamp- Certificate of Registration 0
50.0
Fire Safety Fee 0
Other Document Expense 1,920.00
TOTAL 5,000.00
Advertising Expense
Digital Advertisement 8,000.00
Leaflets or Flyers 2,000.00
TOTAL 10,000.00
UNI
WORKING CAPITAL T UNIT COST TOTAL
Inventories
Rattan Peel (10pcs per strip) 5,000 150.00 750,000.00
Braided Cord 500 100.00 50,000.00
Beads and other Crafts 500 50.00 25,000.00
Leather and etc. 500 500.00 250,000.00
TOTAL 1,075,000.00
Prepaid Supplies
Sanitary Supplies
300.0
15
Garbage Bag (pack) 20.00 0
175.0
5
Cleaning Rug (kg) 35.00 0
60.0
2
Dustpan 30.00 0
120.0
2
Broom 60.00 0
500.0
2
Mop 250.00 0
350.0
2
Trash Bin 175.00 0
200.0
2
Trash Can (drum) 100.00 0
TOTAL 1,705.00
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Packaging Supplies
Boxes 1,000 200.00 200,000.00
Paper Bags(per pack) 500 100.00 50,000.00
Logo Sticker Paper (per page) 500 25.00 12,500.00
Ink for Printer 50 200.00 10,000.00
TOTAL 272,500.00
Office Supplies
250.0
5
Record Book 50.00 0
700.0
50
Needle and Thread 14.00 0
75.0
5
Pen (2 packs- 5pcs each) 15.00 0
250.0
10
Scissors 25.00 0
Official Receipt 50 25.00 1,250.00
TOTAL 2,525.00
TOTAL 276,730.00
Rent
Rent Deposit (2 months deposit, 1 mo. Advance) 3 15,000.00 45,000.00
TOTAL 45,000.00
Total Working Capital 1,420,230.00
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For the income statement and balance sheet, the following are the major assumptions and
accounting policies that will serve as guide in the preparation of the three- year production and
preparation of financial statements.
1. Sales. It is assumed that the projected sales revenue from 2023- 2025 will increase by 5%
every year and the average price of the products sold will remain Php 2,000 on the first 3
years of its operation.
2. Cost of Goods Sold. It is assumed that the cost per unit is 50% of the Sales from 2023- 2025
as the raw materials will be bought from wholesale price. Moreover, the cost of good sold
will include the variable cost which is assumed to be 5 percent of the cost of goods sold. The
variable cost includes manual labor and utilities used in making the products offered by
Rattanlux Artisan Bags.
3. Salary Expense. Salary expense is computed by having Php 400 as the salary per day of the
5 employees, multiplied to 26 days in a month (having 4 day-offs in a month) and multiplied
again to 12 months, giving us Php 624,000 salary expense for 5 employees. (Php 624,000 =
400 x 5 employees x 26 days in a month x 12 months)
4. Transportation Expense / Exportation Cost. Transportation Expense is assumed to be Php
15,000 per 20 kilogram shipped bags via DHL courier. One bag is assumed to be 0.3
kilogram; therefore 20 kg shipped products will consist of 67 bags. Hence, 2000 bags divided
by 67 bags per batch is equal to 30 batch. 30 batch multiplied by Php 15,000 is Php 450,000.
5. Interest Expense. Loan of 2,000,000 has an interest of 3.5% payable for 3 years.
6. Cash and Cash Equivalents. The total cash balance should be maintained through a petty
cash which will be kept on-hand for normal business operation and the amount will be Php
10,000.
7. Accounts Receivable. The business shall not allow Accounts Receivable at the moment
since the business is still on the process of having its return on investments.
8. Accumulated Depreciation.
Machineries and Equipment. The face value of machineries and equipment is decreased by
Php 15,782 every year (depreciation cost, life span 5 years)
Furniture and Fixture- The face value of furniture and fixtures is decreased by Php 15,782
every year (depreciation cost, life span 5 years)
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Leasehold Improvement. The face value of leasehold improvement is decreased by Php
50,000 every year (depreciation cost, life span 10 years)
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Rattanlux Artisan Bags
Projected Statements of Financial Performance (Income Statement)
For the Years Ended Decemeber 31, 2023-2025
(In Philippine Peso)
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Rattanlux Artisan Bags
Projected Statements of Financial Performance (Income Statement)
For the Years Ended Decemeber 31, 2023-2025
(In Maldivian Rufiyaa)
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Rattanlux Artisan Bags
Projected Statements of Financial Position (Balance Sheet)
For the Years Ended Decemeber 31, 2023-2025
(In Philippine Peso)
Assets Pre-Operating 2023 2024 2025
Current Assets
Cash and Cash Equivalents 952,460.00 10,000.00 10,000.00 10,000.00
Inventories 1,075,000.00 10,000.00 10,000.00 10,000.00
Supplies 276,730.00 2,000.00 2,000.00 2,000.00
Prepaid Expense (Exportation) 2,000,000.00 1,250,000.00 800,000.00 350,000.00
Prepaid Utility Expense 2,500.00 - - -
Rent Deposit 45,000.00 45,000.00 45,000.00 45,000.00
Other Current Assets
Advertisement Materials 10,000.00 - - -
Training Cost (Intagible Asset) 21,000.00 21,000.00 21,000.00 21,000.00
Registration Documents 5,000.00 5,000.00 5,000.00 5,000.00
Feasibility Study 5,000.00 - - -
Total Current Assets 4,392,690.00 1,343,000.00 893,000.00 443,000.00
Noncurrent Assets
Machineries and Equipment 78,910.00 63,128.00 47,346.00 31,564.00
Furniture and Fixtures 28,400.00 22,720.00 17,040.00 11,360.00
Leasehold Improvement 500,000.00 450,000.00 300,000.00 350,000.00
Total Noncurrent Assets 607,310.00 535,848.00 364,386.00 392,924.00
5,000,000.0
Total Assets 0 1,878,848.00 1,257,386.00 835,924.00
Liabilities
Loan's Payable 2,000,000.00 1,333,334.00 666,668.00 -
2,000,000.0
Total Liablilities 0 1,333,334.00 666,668.00 -
Owner's Equity
De Austria, Capital 3,000,000.00 63,507.33
Personal Withdrawals (32,152.67) (81,948.67)
Business Profit 577,666.67 672,666.67 772,416.67
3,000,000.0
Total Owner's Equity 0 545,514.00 590,718.00 835,924.00
Total Liabilities and Owner's 5,000,000.0
Equity 0 1,878,848.00 1,257,386.00 835,924.00
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CHAPTER VI
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