Feasibility Studies for Bookstore and Coffee Shop

CHAPTER I

The Project and Its Background

This chapter provides all necessary information on the company’s background and nature of business. This includes the company name, location, nature of the business, historical background, mission, vision and core values statement, company objectives and feasibility criteria. Company Name During ancient times, leaves are used as a writing instrument in the form of “papyrus” which provides the knowledge and ideas that built the early civilization of mankind. It is an instrument which made people survive and improve their everyday life, and also, to help exist the world today.

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It became our inspiration in putting up a bookstore, the idea of which is to provide information, knowledge, and ideas that will help in supplementing the complex thinking of every person. The Leaflets Bookstore is then formed because of the said conceptualized idea and inspiration. Just like a leaf that produce food for a tree, Leaflets Bookstore will also serve as an instrument in educating people and equip them with knowledge that will help them in forming their own idea of life. Location “A good location is as important as the product”.

Strategically located in Northridge Congressional Avenue Quezon City, Metro Manila with the size of 237 square meters. More than adequate parking space. Reasonably priced per square meter. Rental Payments as well as additional payments shall be stated within the leasing terms including registration of utilities and amenities. Nature of the Business Leaflets Bookstore’s goal is to serve our customers with resources with that will enrich their minds and improve their skills. It also aims to provide them with the most efficient way of book shopping.

The bookstore will offer a large variety of books including published and second-hand/used books. It shall also offer a “book bank service” which will provide used books for rent intended mainly for those customers who cannot afford to buy the books for sale and for those who want to “stop, sit and read”. A mini-cafe will also be established providing snacks and drinks that will make our customers’ reading experience more enjoyable. Historical Background An idea to enrich every mind by gathering and providing reading materials created our will to pursue a bookstore business.

We know that by giving such service, this generation will have their minds filled with necessary information and knowledge. A generation with a good readership will create a responsible generation. Also, a bookstore that is filled only by books and other reading materials makes it plain and regular. We taught that by providing other services more people will come and will be encourage to read. With these little ideas, Leaflets Bookstore came to be. Mission, Vision and Core Values Statement Mission:

Leaflets Bookstore aims to provide wide variety of books and other reading materials with prices fair enough for the youth and middle-class households. Our purpose is to give the best services a bookstore can have with a very relaxing ambience suitable for reading moods complemented by light meals and hot-and-cold drinks through our mini-cafe. Vision: Leaflets Bookstore endeavor to become the most innovative in providing wide variety of books; offering the best place for reading that will give satisfaction to our valued customers. And to be able to extend our services to other parts of the country who are in need of our offerings.

Core Values: Quality, integrity and service are the utmost concern of Leaflets bookstore. We aim to provide our customers with books of good quality and give them excellent service. Company Objectives: 1) To gain an identifiable market share by 35% in the first 2 years of operation. 2) To increase the company’s profit margin by 10% per year. 3) To gain the company’s overall return-on-investment before its 10th year of operations. 4) To reach out to class A-B and C customers through extensive promotional tools and services. Feasibility Criteria Innovation.

All innovation begins with creative ideas. We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second. Originality. An original work is one not received from others nor one copied based on the work of others. Accessibility. Accessibility is a general term used to describe the degree to which a product (e. g. , device, service, environment) is accessible by as many people as possible.

The products that we offer must be accessible to our market at all times Creativity. Creativity is typically used to refer to the act of producing new ideas, approaches or actions, while innovation is the process of both generating and applying such creative ideas in some specific context.

CHAPTER II

Management Aspect

This chapter contains information on the company’s management aspect. It includes the pre-operating period, form of business organization, management control, financing, liabilities of the owner and personnel requirements.

Form of Business Organization

Leaflets bookstore is organized by people who bind themselves through the aid of a written legal agreement to contribute their resources to create a common fund and later divide the profit based on the portion of contribution to the fund. It is advantageous for the businessmen to form a partnership because the unlimited liability of the partners make it attractive from the point of view of the creditors to extend loans beyond the capacity of the partnership to pay.

The combined personal liability of the partners also offers a better proprietorship. Since more than one person participates in the business, closer supervision of all its activities will be attained. All partners directly involve in the management of the business and each has specific tasks and responsibilities to perform. The partnership will be composed of three (3) partners. It is a general partnership. All three partners are general-industrial partners who will contribute money and property as their capital.

Management Control

The firm will establish two major positions that will handle the firm’s operation. A General Manager, who is a major shareholder in the partnership, entitled to establish the company policies and is responsible for supervising the company’s direction and growth; and the Operations Manager, who is also a general partner, entitled to supervise all of the company’s existing systems and is responsible for executing the general manager’s policies and instructions in line with the company’s direction. To facilitate all financial records of the business an accountant will be hired.

Our day to day cash and credit transactions will be taken care of by the cashiers. Sales Representatives will be hired to assist our valued customers. The organizational structure systems and design id formulated by the firm to allocate system operations and responsibility to every designated part of the organization. Making it possible to maintain the company’s organizational unity in its working capabilities.

Financing

The business will have an initial capital of P30,000,000. This excludes the personal assets of the partners which will later be used in case of insolvency.

The capital will cover the financing from the pre-operating period up to the start of the normal operation. This includes the acquisition of the book supplies, furniture and fixtures, cash registers, utensils etc. This also covers the rental fees, advertising and promotional fees, operational expenses and other miscellaneous expenses.

Business Relations

Leaflets will maintain good mutual affairs with its suppliers—Book City, a used book supplier, Rex Publishing, Goodwill Bookstore, CLC Philippines and Anvil Publishing which will provide us with various types of published books that we will sell and Convenient Distribution Incorporated, Del Monte Philippines and Nestle Philippines for our food products. We will also keep a cordial relationship with our customers especially to those who provide us with used books through buy-and-sell transactions.

Business Secret

Bookstores are very common nowadays and as a newbie in the market, Leaflets has to have an edge among its competitors. We offer a book bank service in which the customers can rent some of our books. We put value to our customers. We keep our prices as affordable as possible and we make sure that our products are available all the time.

Liabilities of the Owner

Each partner contributed to the capital in order to sustain the needs of the partnership.

In case the possibility of loss or if bankruptcy occurs, the partners are obliged to either contribute their own personal assets in order to comply with the demand of the creditor, accept a new partner or dissolve the business.

Legal Requirements

Before the start of the business operation, legal requirements are to be sought.

Screening, interview and examination will be conducted upon submission of application forms.

Employment Procedures:

1. Qualified applicanres:eas clease training areas cleas all the timeinaryn the customers with their needs. an instrument in educts will be notified within the day during the application process and scheduling of training.
2. Physical and medical examination, NBI clearance, SSS number and 2x2 pictures should be submitted within one week.
3. Newly hired employees shall undergo an orientation.
4. A contract is to be signed by the employees upon fulfillment of the conditions.

Training Procedures:

1. Trainees are required to wear proper uniform during training.
2. One week training period will be given to the trainees.
3. They are given a one-hour break during trainings.
4. They are expected to arrive 30 minutes before their shifts.
5. Trainees caught doing unlawful activities such as smoking and sleeping is subject to immediate disciplinary action.
6. Trainees are expected to keep the training areas clean all the time.

Rules and Regulations:

1. All employees are expected to wear complete uniforms and observe proper hygiene.
2. Employees are expected to arrive an hour before their respective time of duty.
3. Visitors are not allowed during working hours.
4. Employees must consult the supervisor in charge in case of customer complaints.
5. Cellular phones/ Telephone calls are strictly prohibited during working hours except in case of emergency.
6. All employees covered by this agreement shall strictly observe and adhere to faithfully comply with the company rules and regulations.
7. No covered employees shall be discharged, suspended or otherwise subjected to disciplinary action without being informed of the act or violation.

Working Days and Hours of Work:

1. The established regular days of operation shall be seven (7) days a week from 9am to 9pm equal to twelve (12) hours a day (a total of eighty-four (84) hours a week).
2. The company shall prescribe its regular or official work day, working time, work shift and rest day of employees.
3. The regular or official work day, working time, work shift and rest day of any employee may be changed or modified by the company from time to time upon notification to the employees concerned depending on their circumstances or when the operation of the company requires.

Leave of Absence with Pay:

1. Vacation leave
2. Sick leave Maternity leave
3. Paternity leave
4. Educational leave

Overtime Pay:

Employees who, due to the necessities of the operations, may be required by the company to render the necessary overtime work during the regular work days, rest days, and legal holidays, especially during the store sessions such as school openings, Christmas, etc shall be entitled to the payment of overtime pay in accordance with the law.

For the purpose of the overtime pay, the legal holidays shall include the of:

1. New Year’s Day
2. Araw ng Kagitingan
3. Labor Day
4. Independence Day
5. National Heroes Day
6. All Souls’ Day
7. Bonifacio Day
8. Christmas Day

Non-working holidays:

1. 1. Holy Wednesday
2. 2. Maundy Thursday
3. 3. Good Friday
4. 4. Black Saturday
5. 5. December 31 (New Year’s Eve)
6. 6. All Saints’ Day
7. 7. December 24 (Christmas Eve)

Bonuses: 13th Month Pay The company shall give 13th month pay to employees who have completed at least 1 year of continuous and satisfactory service with amount equivalent to his/her monthly basic pay and shall be given on the 15th of December.

CHAPTER III

MARKETING ASPECT

This chapter contains information on the company’s marketing aspect. It includes the supply and demand data, prices and the marketing programs to be used to promote the business.

Demand

YC = a + bx a = ? y / n b = ? xy / ? x2 x = years as measured from the middle year(s) n = number of past years covered Y (Demand) = Total population x % Primary target market x % tryers x % users x frequency of purchase A survey was conducted for the purpose of identifying the potential market share of Leaflets bookstore. It is composed of 250 respondents, mostly students and young professionals belonging to the class A-B and C of the market.

• Ninety-four percent (94%) of Filipino adults can read (Simple words at least).
• Ninety-percent (90%) of Filipino adults have read books, while 68% have read non-school books.
• Twenty-two percent (22%) of Filipino adults read nonschool books at least weekly, while another 22% read nonschool books only a few times a year. •
• Ninety-one percent (91%) of those who read non-schoolbooks do so to get information or gain additional knowledge, while 9% do so for enjoyment of amusement.
• Seventeen percent (17%) of Filipino adults, in the past year, read only one non-schoolbook, while 14% read at least ten non-school books.
• Filipino adults from ages 18-24 read more non-school books, with five books as average, compared to older ones, in the past year.
• Fifteen percent (15%) of Filipino adults bought at least one non-schoolbook for personal reading in the past year.
• Forty-two percent (42%) of Filipino adults do not know if a public library exists in their locale.
• Seventy-six percent (76%) of those who read non-school books do not borrow from libraries.
• Only 4% of Filipinos have home libraries.
• Fifty-eight percent (58%) of those who bought non-school books for personal reading spent at most P 200 in the past year. Fifty-seven percent (57%) of Filipino adults prefer to read non-school books in Tagalog, 30% prefer English, and 13% prefer Cebuano.
• Romance/love stories (26%) and the Bible (38%) are the most popular non-school books read by Filipino adults. The National Book Development Board commissioned the Social Weather Stations to conduct a survey on the reading attitudes and preferences of Filipinos.

This is the most comprehensive study on book readership in the country. The survey was conducted from March 10 to 25, 2003 with 1,200 respondents composed of 300 voting-age adults from every study area: National Capital Region, Balance Luzon (areas within Luzon but outside NCR), Visayas, and Mindanao.

The sample size has an error margin of +/-3% for the entire Philippines and +/-6% for every study area. Of the total respondents, 63. 6% are from rural areas, while 36. 4% from urban. Of the total respondents, 7. 7% belong to classes ABC, 67. 4% class D, and 24. 8% class

Significant Findings of the Book Readership

Survey Readership of the 7 -17 years old age group Nationwide, 60% of the households surveyed have family members aged 7-17. Of these households, 35% have at least one member of the 7-17 age group who reads non-schoolbooks. Of the total family members aged 7-17, only 26% read non-schoolbooks, but most of those who read non-schoolbooks read at least weekly.

Readership of non-schoolbooks among members aged 7-17 tends to be higher among females, classes ABC, those with a library at home, and those whose household heads have high education. The most popular non-schoolbooks read by the 7-17 age group are the Bible (22%) and romance novelettes (22%). Readership of Filipino Adults The good news is 94% of Filipino adults can read (simple words at least). 90% have read books at least some time in their lives. 68% have read nonschoolbooks. For those who read, 91% read to gain knowledge while 9% read for enjoyment. Accessibility of Bookstores and Libraries The survey reveals that many of the respondents (42%) are not aware if a library exists in their locale. 0% say that bookstores are not within walking distance from their residence, and 18% do not know if there is a bookstore in their locale. Data gathered from the National Library show that there are only 511 municipal libraries out of 1,496 municipalities, and 49 provincial libraries out of 80 provinces. Adult readership of non-schoolbooks tends to be higher among:

• those with high levels of education,
• those who attended private rather than public schools,
• those from upper socio-economic levels,
• those with higher personal monthly income,
• those from urban rather than rural areas,
• those younger in age,
• those who are not married,
• those who have libraries in their homes and offices,
• those living nearer to bookstores and public libraries, and
• those whose social networks (kith and kin) also like to read.

While Filipino adults generally recognize the value of reading books, many (43%) can let a whole year pass without reading a single non-schoolbook. On the other hand, 15% read 2-3 non-school books, and 14% read at least 10 non-school books. Books are read more for gaining knowledge and information, and thus perhaps book reading is considered something to do when the need arises. Watching TV, movies and videotapes, listening to the radio, and going to malls seem much more fun to do. Perhaps parents, educators, publishers, and advertisers ought to do more to portray book reading as fun to do too.

Filipino adults generally find books to be good gifts, and although considered costly, a book is not regarded as a luxury item but a necessity. The survey shows that readership of non-schoolbooks is higher among Filipino adults from the upper socio-economic classes who have reached high levels of education and attended private schools, are younger, either single or without a partner, and live in the urban areas. Moreover those who live near libraries and bookstores read more often. The Bible (38%) and romance novels (26%) are the most commonly read books by adult readers. The highest percentages of Bible-readers are from Mindanao (51%), class E (43%), females (42%), and 45 and above years old (49%).

The highest percentages of romance novel readers are from Balance Luzon (27%) and Visayas (27%), class E (28%), females (37%) and 18-24 years old (46%). After the Bible and romance novels, females like to read about cooking (11%), while males read about politics (10%). Manner of Acquiring Non-Schoolbooks Allowing for multiple answers, the following are the means through which Filipino adults who read non-schoolbooks acquire them: borrowing from other people (52%), receiving books as gifts (40%), borrowing from libraries (24%), renting (18%), and buying (15%). Majority of respondents from all study areas and all socio-economic classes do not borrow from libraries. Buying Non-Schoolbooks

The percentage of those who bought non-schoolbooks for personal reading in the past year increases with social class, educational attainment, and personal monthly income. 58% of Filipino adults who bought non-schoolbooks in the past year spent only a maximum of P200. 16% spent more than P1,000. Among classes ABC, 38% spent more than P 1,000.

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