BUSINESS PLAN

by Alisbo, Ecija, Julian, Mannag and Oldico

Executive Summary
Blueprint Stationeries addresses the educational supply needs of the
students and teachers of Saint Marys University and the communities
around the university belt. It will provide an easy access to high quality and
economical materials for it will be located just inside the university campus
specifically between Hantson and D buildings.
Products
Blue Print Stationeries will sell eco-friendly school supplies that are made
from recycled materials and non-toxic alternatives. The products will be
ordered from a reliable supplier. Blue Print Stationeries will sell recycled
paper ranging from various types of notebooks, papers (worksheets,
intermediate paper, bond paper, drawing papers, etc.), pens and pencils,
calculators, rulers and others school supplies.
Customers
Blue Print Stationeries has identified three market segments. The first market
is composed of the university students with an e. The second group is
composed of the teaching and non-teaching staff of the university. The last
category is assorted customers with a 7% growth rate and 5,000 possible
customers.
Competitive

Edge

Blue Print Stationeries will offer a complete range of school supplies in order
to become a one-stop shopping place for supply needs. Blue Print
Stationeries will offer an unprecedented level of customer attention. It

recognizes that shopping must be the the most trouble free, pleasant
experience if it expects to form long-term relationships with customers.
Management
Blue Print Stationeries will be led by Charlemagne Alisbo. Charlie received his
undergraduate degree from the University of the Philippines. Charlie worked
for Samsung Electronics as the Regional Sales Manager for the Government
Agency Unit. While working at Samsung, Charlie received his Executive MBA.
Blue Print Stationeries is supported by a proven business model, carefully
identified market segments, and a top notch management team. Blue Print
Stationeries has forecasted sales for year two of $818,000, rising to
$1,004,000 in year three. We will become profitable in the second year.

1.1 Objectives

To become the premier source of environmentally-friendly school

supplies.

To offer Blue Print Stationeries supplies that cost no more than a 10%
price premium, often at the same price as non "green" supplies.

Quickly grow in size and become a profitable business within the first
two years.
1.2 Mission
It is Blue Print Stationeries' mission to become a leading vendor of
environmentally-friendly

school

supplies

not

just

in

the.

Blue

Print

Stationeries will become a market leader offering a wide, price competitive

selection with the finest customer service.

1.3 Keys to Success

Offer environmentally-friendly school supplies at competitive prices.

Secure large contracts with corporations and government agencies.

Ensure fiscal efficiency through strict financial controls.

2.1 Start-up Summary
Blue Print Stationeries will incur the following start-up expenses:

Shelving units for display (4)

Glass counter (1)

Cash register machine (1)

-10,000

Long table for counter (1)

-5,000

Chairs (3)

Ceiling Fan (2)

-1,500

Shelving units for storage (2)

-10,000

Pre-operating Expenses
-2,025
Transportation Expenses (Fare to Municipals office, DTI and BIR)
-60.00
BIR Registration (annually)
500.00
Mayors Business Permit (annually)
1,250.00
DTIs Permit (5 years)
215.00
Start-up Inventory
-80,000

-20,000
-6,000

-1,500

Start-up funds will be supported predominantly through an initial capital of

P100, 000.00 by Charlie. In addition, Charlie will obtain a P80, 000. 00 loan
from a local bank to be used in the purchase of start-up inventory.

Start Up Plan
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Assets

Loan

Capital

Expenses

Market Analysis Summary

Blueprint believes that it faces a market with many opportunities and
significant demand. Blueprint's three main customer segments will be
students, faculty, and others which is a "catch all" category.
The school supply industry operates with several different large distributors
such as the Pandayan Book Shop and many small ones like the Blue House.
Within the school supplies industry there exists a niche of environmentallyfriendly companies that Blueprint competes against.
4.1 Market Segmentation
Blueprint has identified three customer segments that it will go after:

Students: This customer group is composed of Marians that reached

more than 6,000 in numbers as of June 2014. They are composed of
students from the schools of Accountancy, Business, Public
Administration and Governance, Engineering and Architecture, Health
Sciences, Arts and Sciences, Information Technology and Education.

These customers are interested in the purchase of educational supplies

that are of high quality, cheap and accessible.

Faculty: The instructors also use different educational supplies. With

the complete package and wider range of choices for supply needs
that the Blueprint offers, this will be an advantage for the teachers in
the university.

Other: This is composed of the outside buyers.

Market Segmentation

Students
Faculty
Others

Strategy and Implementation Summary

Blueprint's goal of becoming a major vendor of environmentally-friendly
school supplies is an ambitious but achievable goal. Blueprint will
leverage its two part competitive edge to achieve this goal. The first edge is
an unbeatable selection of Blueprint supplies.
This all inclusive product catalog creates a compelling one stop shopping
venue. This wonderful product selection will be supported by a customercentric company culture. The marketing and sales strategies support these
two competitive edges.
The marketing strategy seeks to develop an awareness of Blueprint and its
ability to offer a wide selection of eco-friendly office products. All products
will be priced competitively, often at the same low price as non eco-friendly
products.

The sales strategy will use specially engineered economic incentives that
channel account manager behavior into the mode of ensuring, happy, longterm customers. This entire strategy is based on the company's philosophy
that it is far cheaper to maintain a current customer than it is to attract new
ones.
5.1 Competitive Edge
Blueprint competitive edge is two fold, a wide selection of school supplies
making it a one stop shopping place and a strong customer service oriented
organization where the customers are assigned a specific sales
agent/account manager to assist them.
By offering a strong product catalog, customers are able to place all of their
school supplies orders at one place instead of having to contact multiple
vendors each week or month, whatever the interval may be. Creating the
perception that all of the company's school supply needs can be met by one
company, Blueprint has a competitive edge.
The second edge is Blueprint's focus on customer service. The company
recognizes that if long-term sustainable growth is desired, the customers
must feel like that they are being offered the finest service. This will ensure
the building of a loyal customer base that will assist Blueprint in becoming a
sustainable operation.
5.2 Marketing Strategy
The marketing strategy will be based on a communication effort that
announces Blueprint's two competitive edges, their selection and customer
service. To be able to order all of an office's supply needs from one easy-towork-with vendor is a significant value. Backing up the extensive product
catalog with top rate customer service will retain customers.
Blueprint will undertake a marketing campaign that communicates its
competitive edge. The campaign will rely primarily on print advertising. The
media outlets to be used will be determined based on the readership levels
and targeted companies. The campaign will develop an awareness of
Blueprint to the targeted customers. The development of an awareness or
image of Blueprint is the first step in the implementation strategy, the
second step is the sales strategy detailed in the following section.
5.3 Sales Strategy
Blueprint's sales strategy will be based on the conversion of qualified sales
leads into paying customers. The key emphasis here is customer service.
Blueprint recognizes that customers desire that their needs are taken care of.

Additionally, customers want a seemless experience where their

expectations are managed. Blueprint will accomplish these lofty goals by
assigning a specific account manager/sales agent to each customer
(assigned by the customer type). The sales agent receives a commission not
just for the individual sale but also using a complex formula that takes into
account long-term customer satisfaction of the client.
Blueprint therefore has developed an economic incentive for its account
managers to develop long-term customers. This incentive based system is
key to the sales strategy because it creates an incentive for the sales agent
to take into account Blueprint's strategic survival, not just the agents shortterm compensation. In addition, long-term customers are more profitable
than new customers.
5.3.1 Sales Forecast
Blueprint adopted a conservative forecast for the business plan. These
conservative estimates will help ensure that the company does not face any
cash flow shortages within the first couple of years The sales forecast also
takes into account that Blueprint is a start-up organization and it will take
time to generate a level of sustainable sales. Sales will increase at a slow but
steady rate. Please see the three following table and charts for graphical
representation of the sales forecasts.
Sales
Papers
Writing materials
Others
(calculators,
rulers, etc.)
Total

Year 1
420, 300
175, 125
105, 075

Year 2
462, 330
192, 637.50
115, 582.50

700500

770, 550

Comparative Projected Income Statement

Year1

Year2

Sales

700500.00770550.00

Less: Cost of Sales

538846.15592730.77

Gross Profit from Sales

161653.85177819.23

Less: Expenses
Rent Expense

60000.00 60000.00

Salaries Expense

40000.00 40000.00

Utilities Expense

6000.00

Depreciation-Furnitures & Fixtures

Depreciation-Equipment
Net Income

6000.00

2125.00

575.00

2125.00

575.00

52953.85 69119.23

SALES FORECAST
90000
80000
70000
60000
50000
40000
30000
20000

Students
Faculty
Others

10000
0

PROJECTED CASH FLOWS (Year 1)

Capital investment
Proceeds of bank loan
Acquisition of store furniture and fixtures and equipment
000.00)
Purchase of initial inventory
Payment of pre-operating expenses
025.00)
Net Income-net of depreciation
52,953.85
Depreciation-Furniture and Fixtures
2,125.00
Depreciation-Equipment

P100, 000.00
80, 000.00
(54,
(80, 000.00)
(2,

575.00

Net Cash Flows

99, 628.85

ASSUMPTIONS:
Sales are expected to increase by 10% each subsequent year because
of anticipated increase of student population in the university. Goods are sold
at 30% above cost. The furniture and fixtures and equipment used in the
store are depreciated annually at 5% of its acquisition cost.