“MCV Automotive Services”

Presented to
Enrique T. Yuchengco School of Business Management
Mapua University – Makati City

A Business Plan presented to

Prof. Conrado Hernandez
Mapua Institute of Technology

In partial fulfillment
Of the requirements in
Business Plan 2 - ENT111

Submitted By:
Siapno, Jesus Generoso IV A.

January 21, 2019

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TABLE OF CONTENTS

TITLE PAGE………………………………………………………………………1
TABLE OF CONTENTS…………………………………………………………2-3
ABSTRACT……………………………………………………………………….4
CHAPTER 1: INTRODUCTION…………………………………………………5-13
Name of the Enterprise……………………………………………………5
Trademark………………………………………………………………….5
Services…………………………………………………………………….6
Location…………………………………………………………………….6
Descriptive Definition of the Project……………………………………..7
Business Model…………………………………………………………….8
Long term Objectives……………………………………………………..11
Mission / Vision……………………………………………………………11
Highlights of the Project…………………………………………………..12
Success Factor…………………………………………………………….12
Feasibility Criteria………………………………………………………….13
CHAPTER 2: ENVIRONMENTAL ANALYSIS…………………………………13-15
Socio-cultural Factors……………………………………………………..13
Technological Factors……………………………………………………..14
Economic Factor…………………………………………………………..14
Political / Government Factors……………………………………………15
CHAPTER 3: INDUSTRY ANALYSIS……………………………………………15-29
Industry Overview…………………………………………………………..15
Competitive Review…………………………………………………………19
Philippine Competitiveness………………………………………………..25
Porters Five Forces…………………………………………………………26

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CHAPTER 4: MARKETING STUDY……………………………………………29-35
Research Designs and Methodology……………………………………29
Observation Insights………………………………………………………31
Service Description………………………………………………………..32
Supply…………………………………………………………………..32
Price Study……………………………………………………………..33
Demand…………………………………………………………………33
Demand – Supply Analysis…………………………………………..35
CHAPTER 5: TECHNICAL STUDY…………………………………………….35-46
Service Processes…………………………………………………………35
Equipment and Facilities…………………………………………………..37
Operations / Productions…………………………………………………..44
Capital Expenditures……………………………………………………….45
CHAPTER 6: MANAGEMENT STUDY…………………………………………46-50
Organization Plan………………………………………………………….46
Strategies and Programs………………………………………………….47
Other Strategies……………………………………………………………49
CHAPTER 7: FINANCIAL STUDIES……………………………………………51-54
Major Financial Assumptions……………………………………………..51
Income Statement…………………………………………………………52
Cash Flows…………………………………………………………………53
Balance Sheet……………………………………………………………..53
Financial Analysis………………………………………………………….54
REFERENCES……………………………………………………………………..54

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ABSTRACT
The purpose of this business plan is to identify and analyze if my proposed business will
be feasible and money generating.

The problem we decided to tackle is the lack of workers, work quality, trust, and
motivation for workers in the service department of a car dealership, in this case, ISUZU
Alabang.

We devised a plan to search and gather formidable workers to provide for the
dealership, we could then asses them in the ways and ideals that we and the dealership
want for them like work ethics and, rules and regulation. After assessing them we will go
on to train them using the latest equipment’s in hand, in order to improve their quality p

We observed and will tackle on different competitors in the industry especially those
near our location, in order to achieve this, we will focus secondarily on out marketing
program and primarily on our work ethics, to show people that we are the best service
provider in the area.

The estimated annual sales for four years will be positive throughout the year, expecting
an estimated 6% increase in revenues daily and annually. After our huge investment in
2017, we will make sure to raise our revenues to more than 6% in the succeeding
years.

Projected Net Expense after Tax will gradually increase due to the rental, maintenance,
taxes and licenses for the new land we purchased. NOLCO account will remain empty
for the following years. Net expense will only increase more and more through the years
but at a steady rate where the company can handle it even after taxes.

Return on Investment is still currently being discussed by partners, after managing the
huge debt in 2017 and investing a large amount for land in 2018, the five-year projection
period won’t be enough to show when we will have a Return on Investment. But studies
show our Investment length is 4.81 years with an ROI of 1.59% which will be 0.33%
every year.

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I. INTRODUCTION

A. Name of the Enterprise

The name of my proposed business is MCV Automotive Services. MCV

Automotive Services is a service business located at 365 J. Aguilar Ave.,
Casimiro Village Pamplona Tres, Las Pinas City. We have chosen the name
“MCV Automotive Services “, because it represents the initials of my co-
owner and partner who handled registering the permits for our business. We
specialize in painting and repairs. The business aims to provide customers
high quality products and services at an affordable price, and a comfortable
and accessible place to go to for quick repairs and checkups.

MCV Automotive Services is a service business that mainly focuses on

providing workers for automotive companies. There is a need for this because
I think outsourcing workers for hard labor inside an automotive company
lessens the burden in their field cause in the end all they’ll manage is the
payments and they could focus much more on their sales since me and my
provided workers will keep track of the quality of work and maintain
productivity. I will be targeting automotive companies who is having a hard
time managing sales and productivity so that they could focus more on their
sales.

B. Trademark

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 This is MCV Automotive Services brand logo. I’ve thought about this design to
keep it simple, we don’t have to make it stand out that much or make it poppy
for the younger generation since we would mostly cater to middle aged men
who are more simplistic and straightforward.

C. Services

 Primary products / services

Since the proposed business is an Outsourcing business mainly man
power, the company’s main service is to provide automotive companies
with excellent workers for their body shops. Our trained workers can offer
different services which consist of repairs from engine repairs or interior
repairs to dents, scratches, and major accidents. We also provide
repainting or color change, we provide per customers with a wide variety
of choices that would suite the customers taste. We also provide and
perform basic checkups like change oil and rustproofing. We also provide
the simplest of services like carwash and buffing.

D. Location

 Main Office
365 J. Aguilar Ave., Casimiro Village Pamplona Tres, Las Pinas City. This
is where our main office is located so we can also manage our sister
company.

(leave Picture)

 Base of Operations
1780 Alabang–Zapote Road, Ayala Alabang, Muntinlupa, 1780 Metro
Manila. As of now, there are eight secondary competitors near our

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 location. As far as I know there are no primary competitors who serve the
same kind of service we do in the area.

E. Descriptive Definition of the Project

MCV Automotive Services is a service business that mainly focuses on

providing workers for automotive companies. There is a need for this because
I think outsourcing workers for hard labor inside an automotive company
lessens the burden in their field cause in the end all they’ll manage is the
payments and they could focus much more on their sales since me and my
provided workers will keep track of the quality of work and maintain
productivity. I will be targeting automotive companies who is having a hard
time managing sales and productivity so that they could focus more on their
sales. Competition is weak since we will be working with an automotive
company, so we won’t consider body shops as a strong competitor for my
business.

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 MCV Automotive Services will be operating in Muntinlupa City. It will offer
residents and visitors a place to entrust your finances and vehicles with, since
we can arrange a set of services at your given budget and give our utmost
concern and care with your finances or insurance if you feel troubled with
having your car repaired.

F. Business Model

(fill up)

 Value Chain Analysis

Firm’s primary activities

Worker Worker Technical Search for a Provide
Scouting Evaluation and Ethical possible Worker
training Client
Cost drivers
Workers Determining Keeping up Bidding for After
living far whether they with Trends possible provision and
from the need lowest cost Consulting
area additional work
training
Link between activities
1. Skilled workers don’t necessarily mean well trained in the current
technological advancements.
2. Evaluation to determine if a worker is hardworking and trustworthy.
3. Train workers for so they main gain more knowledge and provide
the best possible service.
4. Maintain contact with firm for reports and consultancy regarding
business matters.

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 Supply Chain Analysis

ISUZU GENUINE PARTS

Everything that we will offer will go through and will be provided by Isuzu
Genuine Parts to be sure that everything we offer and install in your car
won’t compromise quality and performance.

 Rationale of the Study

My father has been in the Automotive industry way before I was born after
working for Several companies local and abroad he decided to settle down
and start his own autobody shop during this time there were only a handful
of clients and a lot of workers to give salaries to and there are cases
where people have betrayed us laundered money from his business and
took off, so managing a body shop fully isn’t an easy task to handle you
have a lot to factor in and for one person to manage all that will prove to
be too much, we were losing money at a fast rate instead of earning it,
eventually he came up with the idea to outsource his trusted workers to
companies he worked for so that he has someone to share the workload
with while assuring that his workers won’t do anything to tarnish their
reputations since there would be major repercussions in case they do
something bad. The problem with starting your own body shop is trusting
the people you work with though

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 this can be tested through time but as a business man time is gold and
time wasted is money wasted, the capital needed to make this work is too
heavy for a sole proprietor and he must do everything from scratch, even
provide his own equipment. These problems and more can be solved
through our business, workers will have more pride in them because
instead of working at a regular auto body shop, they carry the name of a
trusted brand in the industry with them this can motivate them to do a
better job, pay will be shouldered by our partner company through
commission in every vehicle we send out, equipment’s and supplies will
be provided though not all but rest assured all the heavy equipment will be
provided. Since I’ve had my fair share of work there both as a tinman and
a manager it has contributed to me by getting to know how our workers
live on a daily basis I was blessed enough to be immersed in their
experiences both in life and at work so I could cater to their needs better
without milking the company too much of their assets

 Competitive Advantage

Our primary competitive advantage against other manpower outsourcers

are. Through the connections built by my father from all the years he
worked for automotive companies, in the world we live in connections are
important and it can get you places, without connections with people I’m
sure we would have a hard time achieving our goal. Trust and deep
connection with not just our managers and supervisors but also our
workers, remember without them the business will stop running they are
the gears that make the business run, neglecting and ignoring them will
only lead you to your demise as an owner and a person, you have to
understand their daily struggles, how they work, what they need to
improve on, and if they respect you as their boss.

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G. Long-term Objectives

MCV Automotive Services objective is to provide the best possible service in

terms of caring for you and your vehicle for our old and new consumers, we
would also like to look for opportunities to train our workers a lot more to
prepare for the fast-growing technical advances in the automobile industry but
also maintain basic training.

 To establish a name trusted for its quality performance and be well

trusted in our customer service.
 Acquire a full-scale market that covers a general intake of the product
line.
 To gain customers that would trust us.

H. Mission / Vision Statement

 Mission:
MCV Automotive Services is committed to provide Highly trained and trust
worthy workers for businesses so that our customers would be confident
that the workers we provide will give their maximum output and quality
compared to possible threats and competitors. MCV Automotive Services
is also committed to provide proper training and pay to our employees
while providing stable return to its shareholder as well as giving the
consuming public the satisfaction.

 Vision:
We aim to be the standard reference for outsourcing quality automotive
workers to our stakeholders. To be recognized as the leading and best
producer and trainers for quality workers.

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I. Highlights of the Project

MCV Automotive Services is determined to become the go to repair shop for

residents and visitors alike, a place where you can be sure that the services
you’ve availed are done to your care with the utmost care and done by high
quality and trusted workers, no additional or hidden charges will be added
without your consent to make sure that you’re financially comfortable with
what you’ve availed according to your budget. The establishment also
provides magazines and an entertainment area along with coffee and water
for waiting customers.

Our goal is to be the body shop of choice for the local community, business
workers, and visitors by providing better and quality service than any of our
competitors in the area according to your budget.

J. Success Factors

MCV Automotive Services has identified several key factors which will be
instrumental in the success of the company.

 Very few people now have the ability to repair their own automobiles.
 The demand for automotive repairs remains strong in any economic
climate.
 Many people that drive older vehicles have a strong demand for these
services on an ongoing basis.
 The barriers to entry for starting a new automotive repair shop are
moderate as startup costs.
 The gross margins generated from automotive mechanic services are
very high as this is a labor focused business.
 Ongoing development of new locations.

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  Banks and financial institutions love to provide these companies with
large amounts of capital in order to expand their businesses.
 Highly predictable and economically secure nature of their revenues.

K. Feasibility Criteria

 ROI
Return on investments is very essential in every business. This would
show if our study would be profitable. Our minimum return on
investment must be 50% by the end of the first year of operation.
 Demand
The demand is also an important instrument. If there is no demand, of
course the business would not profit. Based from what we have
researched, the demand for automotive repair is still and increasing,
and there are demands in the south area that we can cater to
 Affordability
Price is a huge factor for people. People always want things that are
affordable. Although the prices of the services we offer vary from what
the customer needs or wants but the financial capabilities of the
customer also affect what we can do.

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II. ENVIRONMENTAL ANALYSIS

A. Socio Cultural Factors

Socio cultural factors are factors that are outside, and like all the other
factors, businesses have little control over these. Examples are
demographics and lifestyle. Demography is the study of population.
Demographics can be a huge factor to any business. Entrepreneurs must do
a lot of research regarding the demographics on the area where they are
planning to set up their business. This is included in market research.
Through research, they would find out how many workers are available for
hiring. They must also look for the population structure of the area, from age
groups to monthly income. Therefore, studying the demographics in a certain
area is essential when someone is planning on putting up a business there,
because people from different age groups have different preferences or
tastes, and there can greatly affect the demand for product. Another thing is
their lifestyle. People’s lifestyles are dynamic, Trends and people’s tastes are
always changing from time to time, their attitudes and beliefs also change,
what may be acceptable could be different in the following years. This is a
huge factor that a business must keep an eye on because this determines
their buying attitude. Services must adapt quickly to these kinds of situations
cause if services lack involvement and differentiation customers will go and
find new services that would cater to their wants or needs.

B. Technological Factors

Technology nowadays is growing and improving at a rapid rate becoming

more complex and advanced by the minute. These technologies can also be
a huge factor to most businesses. One technological factor that I could
identify was the improvement of cars. In our case, since my business is an
auto body shop, we must be updated with the latest technologies and provide
our workers the most current possible training they could have due to rapid
advancements in automobile technology, from the engines to the interior now

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 with self-driving cars. Aside from various technologies that we need in the
business, we also need to be updated with the indirect technologies like the
office supplies.

C. Economic Factors

Various economic factors that could affect our business include employment,
the economy tends to follow a business cycle of economic booms followed by
periods of stagnation or decline. During boom periods, jobs tend to be
plentiful, since companies need workers to keep up with demand. When
unemployment is low, consumer spending tends to be high because most
people have income to spend, which is good for businesses and helps drive
growth. When un employment is high, consumer spending tends to be low
because unemployed people don’t have excess income to spend. Inflation is
the rate at which prices in the economy are increasing. Consumer confidence
is an economic indicator that measures overall consumer optimism about the
state of the economy.

D. Political / Government Factors

There are a lot of political and legal factors that could affect one’s business.
These can either be for the good or the bad of the company. In our case, we
can only identify two factors which are: taxes and the permits required in
starting up our business venture. The first factor is tax. These are fees that
are charged by the government. It can be on a product, income, or an activity.
These are considered an economic factor because taxes can affect any
company’s profit. Setting the taxes too high can make businesses less
profitable since less people would like to buy their products. It can discourage
other people from doing business. The second factor that can affect our
business is the permits necessary for setting up our venture. Since our
business is a coffee shop, this factor can have a minimal effect on our part.
The partners would only have to comply with certain requirements like DTI,
BFAD, BMBE, Mayor’s permit, sanitary permit, BIR, and other business
permits.

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III. INDUSTRY ANALYSIS

A. Industry Overview

The global automotive aftermarket industry is expected to reach $722.8 billion

by 2020. Today’s consumers are keeping their vehicles longer and are more
aware of the importance of preventive maintenance and scheduled servicing
to maximize the lifetime value of their vehicles. This rising demand for
aftermarket parts and services is spurring new growth and revenue
opportunities for a wide range of businesses operating in the automotive
aftermarket industry.

The typical car on the road in the U.S. is a record-high 11.5 years old,
according to a new IHS Automotive survey. However, while cars on the road
may be aging, consumers are continuing to purchase new vehicles. In 2015,
U.S. car sales hit a record high. Auto makers sold 17.5 million cars and light
trucks, a 5.7% over the previous year.

Although Americans may be buying newer vehicles, don’t let these numbers
fool you into thinking the aftermarket is stagnant or declining. Older vehicles
are simply lasting longer. According to a 2015 article by USA Today, “The
number of vehicles on the road that are at least 25 years old is about 14
million. That’s up from about 8 million in 2002. Those are vehicles made in
1990 or earlier. Meanwhile, the number of vehicles that are 16 to 24 years old
is 44 million. That’s up from 26 million in 2002, according to IHS.”

Trends and Statistics:

 The average age of the U.S. vehicle fleet has increased 17% in the last
ten years.

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  The average length of vehicle ownership for new and used vehicles
has increased 60% in the last ten years.
 75% of aftermarket auto repair is performed by independent auto
repair shops, while 25% of the business lives with dealerships
 There’s a trend toward large franchise auto repair businesses, which
have smaller shops rolling up into them. That’s a good opportunity for
profitable businesses on the service/seller-side.
 The aftermarket world is going online, and the marketplace is
changing. Parts are being sold online, service is being sold online.

Opportunities for the Aftermarket

In research conducted by the NPD Group, key trends in the auto care market
were evaluated. Aftermarket opportunities for drivers of aging vehicles
included maintenance such as the following:

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Drivers of newer cars are looking for appearance products:

Currently, repair shops dominate most major repair-oriented services:

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B. Competitive Review

a. Definition of primary and secondary competitors

Primary Competition:

• The primary or the direct competition of the MCV Automotive

Services in the automotive service industry, are Fast Q
Alabang, Roadstar Enterprises Alabang, and Carpro Auto
Center, Inc. These businesses are considered as the direct
competitors of MCV Automotive Services due to their service
business type and their high quality of services offered.

Secondary Competition:

• The secondary and indirect competition of the MCV

Automotive Services in the automotive service industry, are
Carmax Philippines, Riteserv Diesel Center, Bridgestone
Tire Center, and Dubshop Automotive. These shops are
more of a car accessory shop rather than a service center
wherein you get your car heavily repaired. They offer all
kinds of accessories some that we also offer but we are not

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 focused on this market, this does not mean that we’ll let
them take in possible customers.

b. Review of the Competitors

Fast Q Alabang

Fast Q Alabang is having mixed opinions regarding their customer

service, despite being known as a quality auto care shop, but this
isn’t stopping them from gaining more and more customer
especially by word of mouth. They have a low-price range for a
subpar quality of service, they also have their own parking which
makes it convenient for those who will inquire and a very clean and
accommodating lounge for those who must wait. Therefore, Fast Q
Alabang is considered as a direct competitor of MCV Automotive
Services.

• Sales

o The Fast Q’s main revenue comes from its good

quality of service and the comfortableness that is their
business setting concept.
o Having an established name from their own brand
power that the consumers are currently liking.

• Market Share

o the target market of Fast Q is also same as ours.

o Attracts everyone due to their low-price range,
promos, and discounts.

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• Positioning

o Fast Q positions in the market as a low-cost service

center that does not sacrifice quality.

• Promotion Strategies

o Advertising
o Fast Q uses mainly the word of mouth from the initial
customers they had. By capturing their loyalty,
seemingly the consumers share valuable thoughts
from their experience from the business.
o Runs an active social media advertisement through
their Facebook page.

• Sales Promotion

o Fast Q provides their customers regular promos and

discounts.

• Service quality Strategies

o The staff greets every customer with a friendly and

locality vibe.
o Provides Quality products and uses Quality tools and
machines.

• Pricing Strategies

o Fast Q offers a seasonal discount on their prices

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Roadstar Enterprises Alabang

Roadstar Enterprises Alabang is a goods and service

establishment in Alabang that offers Car Accessories, Automotive
Tint Installation, Tire and Magwheel Supply, 4-Wheel Alignment,
Under chassis Repair, Car Audio and Video, Accessories.

• Sales

o the business gains their revenue mainly on their

quality accessories and customer service.

• Market Share

o Grabbing the middle and upper-class enthusiasts with

in the area.
o Captures the target market through their strong
customer service and products.

• Positioning

o Positions as a provider of excellent customer service.

• Promotion Strategies

o Advertising
o the business strongly provides the marketing for their
business in their Facebook page.
o Sales Promotion
o Roadstar Enterprise provides their customers a
regular promotion that gives discounts.

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 o Regularly introduces new products.

• Service quality Strategies

o Customer centered staffs, but lacks in numbers,

giving them a negative service time quality.

• Pricing Strategies

o Roadstar Enterprise offers a seasonal discount on

their prices.
o the business prices their products according to their
specialized product.

Carpro Auto Center, Inc.

Carpro Auto Center, Inc. is a service business within Alabang. The

business main attraction is their discounts on their engine oil and oil
filters. The business directly competes with MCV Automotive
Services because it serves a similar purpose to ours.

• Sales

o Carpro strongly gets their revenue on their product

promotions.
o Having an established name from their own brand
power that the consumers are currently liking.

• Market Share

o Targets majority of the middle to lower class.

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 • Positioning

o Caprpo positions their business as a place to get

cheap and affordable parts primarily those related to
oil.

• Promotion Strategies

o Advertising
o the business strongly provides the marketing for their
business in their Facebook page.
o Word of mouth
o Sales Promotion
o Bundle promos that offer free labor charge in change
oil when you buy their products.

• Product/Service quality Strategies

o The staffs in charge are not that approachable and

doesn’t seem like interested.
o Quality products but some customers are complaining
that it costs more than others.

• Pricing Strategies

o Prices depend on the brand of car.

C. Philippine Competitiveness

The Philippine automotive manufacturing industry covers the assembly,

importation/distribution, rebuilding of motor vehicles, and the manufacturing of

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automotive parts and components. It consists of highly diverse sectors such
as metal, electrical, plastic, rubber, and composite materials. It is also
characterized by heterogeneous firms with a few large, foreign-owned and
modern firms (Toyota, Mitsubishi, Honda, Nissan and Isuzu) operating side by
side with many small underdeveloped firms.

The industry players are serviced by the following industry associations: the
Philippine Automotive Federation, Inc. (PAFI), the industry’s largest umbrella
organization and recognized as the industry’s voice in international forums
such as the ASEAN Automotive Federation and the APEC Auto Dialogue; the
Chamber of Automotive Manufacturers in the Philippines (CAMPI), whose
members include a core of manufacturers and second tier
importers/distributors; and the Philippine Automotive Competitiveness
Council, Inc. (PACCI), composed of four brands whose domestic operations
account for 90% of vehicles manufactured in the Philippines and the Motor
Vehicle Parts Manufacturers Association of the Philippines (MVPMAP).

There are currently fifteen vehicle manufacturers with operating plants in the
country, seven of which are equipped with electro-deposition painting
systems. There are a total of 272 parts and components manufacturers in the
country. The industry has an annual capacity of 250,000 units, all vehicle
types included, produced by plants rated as compliant with global standards
and certified by the International Standards Organization (ISO). In 2011, the
automotive industry generated production valued at P368-billion equal to 4%
share in GDP.

In 2013, the industry estimates that it has directly employed 8,000 workers in
automotive manufacturing, whereas approximately 68,000 jobs have been
generated in auto parts manufacturing. An estimated 340,000 are employed
in auto-supporting industries.

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 With this growing number of possibilities regarding automotive manufacturing,
it is also an important factor to consider that the Automotive service industry
will be booming, you can see these everywhere from small scale body shops
to the after care services provided by each dealership available nationwide
with the rapidly growing number of cars being purchased and brought in our
country and the unending cycle of cars breaking down and inevitable
accidents aftercare and repair services for the automotive industry will die.

D. Porters Five Forces

Competition in the Industry:

Outsourcing manpower for huge companies is still a huge industry in the

Philippines even though most workers are putting a stop to it (ENDO). The
concept of contracting workers for a period of time with the possibility of being
terminated due to certain reasons like failure to comply with promised
standard or quality of work is a very risk concept since we are running a type
of service and as we know most services are intangible once it’s been done
or rendered it can’t be returned or replaced but the industry I’m in involves
automotive services and aftercare. It’s tough to bring out the best quality you
can provide because not all workers will put as much effort into their jobs thus
affecting quality, training them technically and ethically is also important, and
with a lot of small to large scale manpower services it all lies in who can
provide the best quality of service at the lowest cost for the dealerships.
Without considering outsourcing automotive manpower we already have the
problem of tough competition like there body shops popping up and around
the metro. How will we get the dealerships approval to provide our workers if
the market would rather have their cars fixed in a body shop rather than a
dealership. So, the competition in this environment doesn’t only rely on one
industry but two outsourcing manpower, and automotive services. To keep

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our status in this industry we must keep on improving by giving the best
quality of service to our partnered dealership and to the customers.

Potential of New Entrants:

As I have said there are a lot of new factors that may affect our business
which are different potential competition from new dealerships that may end
up having a bid on who to take as their source of manpower to different
aspiring contractors since getting a license isn’t hard as long as you have the
drive and money, lastly the growing business of casa’s and small body and
paint shops since to be honest they offer a lot more variety and originality to
their work meanwhile a dealerships body and repair area only caters to
making your car as good as new. With more people getting interested with
cars and buying cars, it can be seen in the streets that people love
customizing their own vehicles from public utility vehicles to private cars. The
growing love of car customization and the growing need of repairs be it old
models or unprecedented accidents are important factors that will affect the
industry and with these needs rising the potential for new entrants is very
high.

Power of Suppliers:

Technically we supply workers for firms we can determine and dictate who
and where we want to cater to if only our company were that big and reliable
since were not, we rely on connections and biddings for our work. But what
about our own supplies and workers? Where do we get our supplies, parts we
need for repairs, and the workers we provide? We scout reliable and trained
workers through connections in this line of industry knowing the right people
is needed without connections you won’t get anywhere. Since we are working
for Isuzu general motors Alabang all the parts we need for repairs will be
provided by them to ensure safety and quality for the supplies wed get clerks

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to go to our site and demonstrate their products and evaluate their efficiency
after careful analysis only then will we decide if the product is worth buying.

Power of Customers:

Our client base will depend on the number of people that own Isuzu branded
cars since most of what Isuzu provides are trucks, a huge part of our client
base would be heavy duty workers like construction services, garbage
disposal, and many more based on my observation these type of clients
would very much prefer to keep their trucks with them for more than 10 years
bumps and bends won’t matter as long as the engine is working but in cases
where there are technical defects they would prefer to fix it on their own with
their limited abilities or get it fixed at a nearby body shop rather that to bring it
back to the dealership and have it fixed, so these type of clients can’t be
relied on too much for repairs since the only time they do come is if there are
major damages like a wreckage or for oil changes and checkups. Other
clients would be SUV owners which will go back on a regular basis for their oil
change and checkups since most automobile companies recommend that to
prevent the engines from failing.

Threat of Substitutes:

For now, we heavily rely on connections to keep our business running so

possible threats right now are. When Isuzu Alabang decides to change the
president, in a case where they do change we are at risk of being cut off if he
sees us as a liability to the dealership we could be substituted for an
outsourcing company who could offer better services for a much cheaper cost
or they could just handle everything on their own including manpower in
repairs without the need for outsourcing workers. Technological
advancements may also be a threat since the time may come when

28
manpower is no longer a necessity maybe in the near future cars can self-
repair or machines will handle repairs better and finish on time.

29
IV. MARKETING STUDY

A. Research Designs and Methodology

Since the business I’m proposing already has two working sites, I have
decided to use site observations as my form of research method.

Observation can used as a Qualitative technique for on-site, in-context or

role-play option. And as a Quantitative technique which can either involve
counting the number of times a specific phenomenon occurs, or the coding of
observational data in order to translate it into numbers

Observation is a systematic data collection approach. Researchers use all of

their senses to examine people in natural settings or naturally occurring
situations.

Observation of a field setting involves:

 prolonged engagement in a setting or social situation

 clearly expressed, self-conscious notations of how observing is done
 methodical and tactical improvisation in order to develop a full
understanding of the setting of interest
 imparting attention in ways that is in some sense 'standardized'
 recording one's observations

There are a variety of reasons for collecting observational data. Some of

these reasons include:

 When the nature of the research question to be answered is focused

on answering a how or what-type question

30
  When the topic is relatively unexplored, and little is known to explain
the behavior of people in a particular setting
 When understanding the meaning of a setting in a detailed way is
valuable
 When it is important to study a phenomenon in its natural setting
 When self-report data (asking people what they do) is likely to be
different from actual behavior (what people actually do). One example
of this seen in the difference between self-reported versus observed
preventive service delivery in health care settings.
 When implementing an intervention in a natural setting, observation
may be used in conjunction with other quantitative data collection
techniques. Observational data can help researchers evaluate the
fidelity of an intervention across settings and identify when 'stasis' has
been achieved.

Fieldnotes

Participant observers may use multiple methods to gather data. One primary
approach involves writing fieldnotes. There are several guides for learning
how to prepare fieldnotes.

Researchers may be interested in creating or using a template to guide a

researchers' observations.

 Templates or observational coding sheets can be useful when data is

collected by inexperienced observers
 Templates or observational coding sheets should only be developed
after observation in the field that is not inhibited by such a template
 Theories and concepts can be driven by templates and result in
focused data collection

31
  Templates can deflect attention from unnamed categories, unimagined
and unanticipated activities that can be very important to
understanding a phenomenon and a setting

Benefits

Immersion and prolonged involvement in a setting can lead to the

development of rapport and foster free and open speaking with members.

Observation fosters an in depth and rich understanding of a phenomenon,

situation and/or setting and the behavior of the participants in that setting.

Observation is an essential part of gaining an understanding of naturalistic

settings and its members' ways of seeing.

Observation can provide the foundation for theory and hypothesis

development.

B. Observation Insights

Based on my observation my father has never marketed his business

publicly, the only form of marketing he has ever done is through word of
mouth by consulting his old workmates from the automotive industry to come
and give his manpower services a try for their dealerships, so our only market
was his connection base, and I think that’s why our business only caters to
two dealerships. For our business to have more opportunities me and my
manager decided to establish a company office or another branch were we
can cater to more customers, not bound by our dealership with Isuzu which
forces us to provide services only to their clients, this cost us a lot but in our
first year of operations we earned more than what we expected.

32
 The fluctuation in sales of our partnered dealership affects our business,
more sales for them equals to more clients for us and vice versa, which
means that our target market is mainly consisted of Isuzu’s clients and we
don’t have much of a choice because the parts we can avail and order are
only from Isuzu General Parts which won’t work for other car brands, although
there are times where we cater to different vehicles only by demands from
people working in Isuzu. once again, we have no other form of marketing for
our service other than word of mouth and recommendations.

Our marketing efforts are minimal since we must stay loyal to our partnered
dealership. A way to increase our market and cater to more dealerships is
through recommendations, another way is to look for and go directly to the
dealerships that may need our services, market our services through trials so
we can showcase the quality of our workers.

C. Service Description

The business offers different types of services like tinsmithing, buffing,

painting, rustproofing, and car washing. We can cater to the specific need of
our customers or if the damage is severe, we will cater to assessments once
we’ve sorted it out with our client’s insurance company and with our client’s
approval and consent.

a. Supply
One of the most critical and time-consuming aspects of a service
business is always managing the task of maintaining enough amounts
of raw materials and components. Product supply is based on
inventory stock levels, open purchase orders, lead times and
components required.

33
 Supply is the total amount of a good or service available for purchase,
along with demand, one of the two key determinants of price.

Year Projected Estimated % of Supply Projected

Number of Supply Per Increase Supply
Potential Individual
Service Clients
2017 43,387 6 0% 260,322
2018 44,272 6 2% 270,945
2019 46,043 6 4% 287,308
2020 48,806 6 6% 310,406
2021 52,710 6 8% 364,561

b. Price Study

Based on visiting different autobody shops, I have observed that the

prices vary depending on what the body shop specializes in and the
estimates or assessment of damages to your car.

c. Demand

Demand is the amount of a particular economic good or service that a

consumer or group of consumers will want to purchase at a given
price.

Demand for a good or service is determined by many different factors

other than price, such as the price of substitute goods and
complementary goods. In extreme cases, demand may be completely
unrelated to price, or nearly infinite at a given price. Along with supply,
demand is one of the two key determinants of the market price.

34
 Innumerable factors and circumstances could affect a consumer’s
willingness or ability to acquire services. Some of the most common
factors are:
1. Price vs. Quality effect – buyers will be more willing to pay if
they believe that a higher price signals higher quality
2. Unique value effect – if the buyer values the unique attributes of
your product then they will be more willing to make a purchase.
In a nutshell they value your product above others in the
marketplace
3. Expenditure effect – Buyers are less willing to buy an item the
higher the total expenditure, both in pounds and pence terms
and as a percentage of their income and/or budget.
4. The effect of customer characteristics – Several pricing studies
have found that customer characteristics may influence WTP.
These differences in WTP may depend on demographic,
psychographic, or behavioral characteristics. The demographic
variables include age, sex, race, income, marital status,
education, and geographical location as well as psychographic
variables such as activities, interests, opinions and life-style.
5. Environmental effect – Macro environmental factors such as the
overall state of the economy could influence customer
willingness to pay. For example, in a down turn in the economy
the customer’s willingness to pay may be lower as compared to
a period when the economy is booming.

The demand for services will be determined through the patronage of our
clients in Isuzu. Available data to compute for potential clients is
gathered from Isuzu Alabang.

35
 Projected Demand

Year Projected Average % of Demand Projected

Number of annual no. of Increase Demand
Potential service
Service Clients rendered
2017 43,387 6 0% 260,322
2018 44,272 6 2% 270,945
2019 46,043 6 4% 287,308
2020 48,806 6 6% 310,406
2021 52,710 6 8% 364,561

d. Demand – Supply Analysis

It is necessary to identify the difference between the projected demand
and the projected supply to be able to determine the market share of
MCV Automotive Services. Since my business only receives parts
when ordered our supply is as stable as our demand. We don’t stock-
up on supplies like paint unless needed.

36
V. TECHNICAL STUDY

A. Service Processes

The type of service model we have is the Job Shop Operations model, A job
shop is a type of manufacturing process in which small batches of a variety of
custom products are made. In the job shop process flow, most of the products
produced require a unique set-up and sequencing of process steps. Job
shops are usually businesses that perform custom parts manufacturing for
other businesses. However, examples of job shops include a wide range of
businesses—a machine tool shop, a machining center, a paint shop, a
commercial printing shop, and other manufacturers that make custom
products in small lot sizes. These businesses deal in customization and
relatively small production runs, not volume and standardization.

In the job shop, similar equipment or functions are grouped together, such as
all drill presses in one area and grinding machines in another in a process
layout. The layout is designed to minimize material handling, cost, and work
in process inventories. Job shops use general purpose equipment rather than
specialty, dedicated product-specific equipment. Digital numerically controlled
equipment is often used to give job shops the flexibility to change set-ups on
the various machines very quickly. Because economies of scale are usually
not a part of a job shop's competitive edge, they compete on factors other
than price. They compete on quality, speed of product delivery,
customization, and new product introduction.

37
 Body Shop Repair Process:

Step 1: Select and schedule Repair Options

Step 2: Drop off your Vehicle
Step 3: Vehicle Pre-Wash
Step 4: Vehicle Disassembly
Step 5: Assess Structural Damage
Step 6: Color Matching Paint
Step 7: Approval from Insurance Provider
Step 8 Order and Receive parts for repair
Step 9: Guarantee repair time
Step 10: Repair Body of Vehicle
Step 11: Apply Seam Sealer and Corrosion Protection
Step 12: Prepare Vehicle for Paint
Step 13: Apply Base Coat and Clear Coat
Step 14: Reassemble Vehicle and Quality Control
Step 15: Schedule Pick-up Detail and Inspection

B. Equipment and Facilities

PICTURE DESCRIPTION
Paint stock room  Stock room for paints

 Color cards and formulas

provided inside.

38
Rustproofing Section  Rustproofing is the prevention or
delay of rusting of iron and steel
objects, or the permanent
protection against corrosion.

 Typically, the protection is

achieved by a process of surface
finishing or treatment.
Carwash Section  a facility used to clean the
exterior and, in some cases, the
interior of motor vehicles.

Painting Section  painters are required to mix and

apply undercoats and clear coats
as well as refinish plastic
substrates.

 Car painting involves cleaning

and preparing panels for paint
applications

 They perform the prepping and

painting of objects on steel body
panels. In addition, they remove
surface paint defects on
automotive parts.

39
  they perform a color tinting to a
blendable match. Car painters
use a variety of equipment
including sanders, blow guns,
painting tools, spray guns, and
polishers.

Buffing Section  A process that literally removes a

small layer of paint from a car's
finish, exposing a fresher layer of
paint underneath.

 This process restores the car's

original luster and will improve
the car's overall appearance.

Locker Rooms  Where our workers keep their

personal stuff including their
packed lunch.
 Work attire is left here every day.

40
Supply Stock Room  Where all the parts we ordered
and received are stored.

 Where excess materials are

stored for future use.

B/P Job Control  Handing out work to Vehicle

Technicians to ensure smooth
running of the workshop.

 ensuring all incoming work is

planned then managing the time
and resource.

 The Workshop Controller

assigns technicians to tasks
ensuring productivity is
maximized and that deadlines
are adhered to.

Tinsmith Section  Performing Mensuration and

Calculation
 Reading, Interpreting, and
Applying engineering
manuals/specifications
 Moving and Positioning Vehicle
 Applying Appropriate
Sealant/Adhesive

41
  Performing Shop Maintenance
 Welding and Brazing Automotive
Body Shell
 Performing Tinsmith Operation
Scrap Area  Area for severely damaged and
leftover parts.

Jack Stand  a device for lifting heavy objects,

especially one for raising the
axle of a motor vehicle off the
ground so that a wheel can be
changed, or the underside
inspected.

Welding Machine  Device that provides an electric

current to joint materials, usually
metals or thermoplastics, by

42
 causing coalescence (most often
by melting small parts of them).

Spray Gun  a device resembling a gun which

is used to spray a liquid such as
paint or pesticide under
pressure.

Air Compressor  An air compressor is a device

that converts power into potential
energy stored in pressurized air

43
Car Buffer  An equipment used to remove a
small layer of paint from a car's
finish, exposing a fresher layer of
paint underneath. This process
restores the car's original luster
and will improve the car's overall
appearance.

Wrench  a tool used for gripping and turning

nuts, bolts, pipes, etc.

Screwdriver  a tool with a flattened, cross-

shaped, or star-shaped tip that
fits into the head of a screw to
turn it.

44
Paint Mixing Machine  used to pre-mix paint before
using to avoid chunks of paint
from mixing into the formula

UV Curing Lamp  used in the printing industry, is a

photochemical process in which
high-intensity ultraviolet light is
used to instantly cure or dry inks.

45
C. Operations / Productions

 Raw Materials and Supplies

MCV Automotive Services will have a per order inventory of materials

and supplies, the excess will be stored in the area so we can meet on
the spot needs and demands of our clients.

 Utilities

Desks and tables – where most or all the paperwork needed will be
done

Phones – inbound and outbound communication.

File Cabinet – file storage especially inventory count and financial

computations.

Computer – send and receive emails, computerize information

gathered

 Maintenance

Brooms and water hoses will be used to clean the work area daily. A
broom and dustpan will be used to clean the office. Black garbage
bags will be used to dispose garbage including unused carboards,
boxes and leftover newspapers. Garbage pickup will be provided by
our partner dealership, these will be picked up daily before the
dealership closes.

46
 Making sure the place in good shape does not only involve its
cleanliness. It is also important to pay attention to those things that
need fixing like stripped of wall paint, dead light bulbs, cracked walls
and more. Taking care of these small problems will prevent them from
getting worse and will make the working environment more welcoming
to both the workers and our clients.

D. Capital Expenditures

Property and Equipment

Property, plant and equipment is stated at historical less accumulated
depreciation and any accumulated impairment losses. Historical cost includes
expenditure that is directly attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the manner
intended by management.

The company adds to the carrying amount of an item of property, plant and
equipment the cost of replacing parts of such an item when that cost is
incurred if the replacement part is expected to provide incremental future
benefits to the company. The carrying amount of the replaced part is
derecognized. All other repairs and maintenance are charged to profit or loss
during the period in which they are incurred.

Years
Office Equipment 5
Furniture and Fixture 5
Transportation 5
Leasehold impr. 5
Building 5

47
VI. MANAGEMENT STUDY

A. Organization Plan

MCV Automotive Services is owned by Marvin C. Viriña and Jesus Generoso

IV A. Siapno

The organization looks complicated, but it isn’t, our company will handle all
matters regarding the workers, we are required to report everything that
happens in our area occasionally and Isuzu will be tasking a financial
manager in our department to handle money matters like salaries, profit or
loss and monthly budget computations.

B. Strategies and Programs

 Strategic-Corporate

With the aim of the business to establish a name in the service

industry, the business aims to increase its capacity and productivity to
extend its operations to other automotive dealerships must be given
importance as early as now. We must establish good relations to our

48
 primary client and our customers and strengthen partnership with
suppliers.

 Sales and Marketing

MCV Automotive Services plans to provide the best tools for our
workers to provide maximum quality of service required by our partner
dealership. Our price will range on the percentage agreed upon this
will include the worker’s salary and our cut in the management and
consultancy part of our service. The people we provide will be highly
trained technically and ethically, maintain good relations between their
workers and our workers to ensure that no unethical work-related
concerns will occur. Our place is located in a tactical and easily
accessible location for workers and homeowners alike. We’ll promote
our brand and company through hard work and hopefully it will lead to
recommendations.

 Human Resource

Workers are reliable, friendly, courteous and helpful in order to

establish good work relations that will lead to better quality and
eventually customer loyalty. Trainings and seminars will also be one of
the highlights of our management. This kind of activities will surely
benefit our business since it involves in the improvement and
development of skills, leadership, and personality of our work force.

 Technology

MCV Automotive Services will be using the latest trends in business

and Tech industry to help us improve our services. This can also

49
 maximize the capacity of our operation by using the best tools for the
right job.

 Finance and Admin

Our company will be partnering with Isuzu Alabang to handle financial

matters, the Financial Manager that they will be providing will take part
and help us handle and monitor the cash flow with the use of a
computer. A checklist of supplies will be provided by me and my
manager to enable inventory control system to monitor the inventory of
our supplies that will include a physical count every week
 Operations

MCV Automotive Services will begin operations at 8am so that we can

start to work on pending jobs, polish our work, prepare our inventory,
and release the paperwork for finished repairs, we will be accepting
repairs and continue operations till 5pm. Since we have top quality
equipment’s and supplies, we can provide quick repairs and services
since it won’t be a problem for us. Focusing on giving the maximum
quality of service we can is our top priority along with the wellbeing of
our workers

C. Other Strategies

 Strategic-Corporate

MCV Automotive Services uses a strategy of total customer and

technical service. We are focusing on getting more dealerships to
partner with us so we can cater to a wider market while maintaining our
current and existing partnerships and customers. Establishing and

50
 building a loyal customer base is important since it will generate most
of our sales and provide free word of mouth marketing. The most
important element of our strategy is the delivery of quality services.

 Sales and Marketing

We’ll let the dealerships we partner with handle marketing by selling

more of their cars since the more cars they sell will result in more cars
we serve through repairs or oil checks. But in terms of marketing our
outsourcing business we will rely heavily on word of mouth and
recommendations from our partnered dealerships.

 Human Resources

To provide our partnered dealership and customers with the quality of

service they deserve, it is important to set up standard operating
procedures that all our workers must follow. But in order to guarantee
this, as a leader I have to lead by example I shouldn’t sit and do
paperwork all day I have to show them through example how it should
be to cater to your clients and how to handle their repairs with the
utmost care I have to show them by hand that I am a capable leader
and that I know what I’m doing.

 Technology

With the rapid development and release of new technological

advancements it is important for us to have the latest state of the art
technology in the shop in order to serve our clients better. This does
not necessarily mean we have to change everything just to cater to
these advancements since cars will last for more than 10 years for

51
 some, it is still important to stay true to our roots and never forget to
hone our skill both in the new and old technology we have

 Finance and Admin

An inventory record will be kept regularly. This will contain all the base
data we have gathered every week of the level of supply we have left
to avoid conflicts in availabilities of our services. All products received
and brought will be checked and invoiced according to the importance,
date received, and quantity received by our manager. After checking,
the delivery shall be stored and kept in their proper places to avoid
misplacing important pieces needed for assembling and repairs.

 Operations

We must assure that our customers are treated during their visit to our
business is also a critical element of the success of our operation by
allowing them to come and visit the site where we repair their cars so
they themselves can check that we are taking good care of their
property. The overall knowledge of my staff about what they’re working
on and the tools and inventory they’re using is a must. A
knowledgeable and customer service-oriented staff will make our
customers feel confident about how we run things.

52
VII. FINANCIAL STUDIES

A. Major Financial Assumptions

 Investments and Withdrawal
The owner will initially invest P500,000.00 in order to start the project,
then invest an additional P6,000,000.00 in the following year. And
P9975 more each following year.

 Sales Revenue
The company expects to have revenue at year:
2017 – P55,786.00 (P152.84 daily)
2018 – P652,237.00 (P1,786.95 daily)
2019 – P692,380.72 (P1,896.93 daily)
2020 – P738,493.28 (P2,023.27 daily)
2021 – P784,649.11 (P2,149.72 daily)
Assuming cash basis only.

 Direct Service Cost

An expense that can be traced directly to (or identified with) a specific
cost center or cost object such as a department, process, or product.
Direct costs (such as for labor, material, fuel or power) vary with the
rate of output but are uniform for each unit of production and are
usually under the control and responsibility of the department
manager. As a general rule, most costs are fixed in the short run and
variable in the long run. Also called direct expense, on cost, variable
cost, or variable expense, they are grouped under variable cost.

 Fixed Assets
The company Invested in a lot worth P6,000,000.00 and expects to
purchase Office equipment’s amounting to P50,000.00 with a useful
life of 5 years, and Furnitures & Fixtures amounting to P35,500.00 with

53
 a useful life of 5 years. When the assets are fully depreciated, that will
be the time that they will purchase another Fixed Asset as a
replacement and dispose or sell the Fixed Assets if still applicable.

The method of depreciating the fixed asset is on a straight-line basis.

 Liability
Other than the current liability indicated for 2018, the company will not
incur any liability in the operation of his business.

 Expenses
The business rented a place with a monthly rate of P8,750.00 and is
expected not to change for the next four years. Taxes and Licenses of
P42,719.55

B. Income Statement
INCOME STATEMENT
Revenues 2017 2018 2019 2020 2021
Gross Revenue 55,786.00 652,237.00 692,380.72 738,493.28 784,649.11
Less: Allowance for Return - - - - -
Miscellaneous Income - - - - -
Direct Service Cost 93,800.00 467,640.00 511,004.50 544,373.01 577,772.86
Gross Profit (38,015.00) 184,596.00 181,376.22 194,120.27 206,876.25

Less: Operating Expenses

Depreciation 17,100.00 9,975.00 9,975.00 9,975.00 9,975.00
Rental 30,000.00 105,000.00 105,000.00 105,000.00 105,000.00
Taxes and Licenses 15,628.00 42,719.00 42,719.00 42,719.00 42,719.00
Total Expenses 62,728.00 157,695.00 157,695.00 157,695.00 157,695.00

Net Income per Books (100,742.76) 26,902.00 23,681.22 36,425.27 49,181.25

Add: Non-Deductible Expenses - - - - -
Less: Income-Sub Final Tax - - - - -
Income Before Income Tax (100,742.76) 26,902.00 23,681.22 36,425.27 49,181.25

Provision for Income Tax - - - - -

Net Income (100,742.76) 26,902.00 23,681.22 36,425.27 49,181.25
less: NOLCO (Net Opex Loss) - - - - -
Exemptions - - - - -
Total Comprehensive Income (100,742.76) 26,902.00 23,681.22 36,425.27 49,181.25

54
 C. Cash Flows

CASH FLOW
DIRECT 2017 2018 2019 2020 2021

Revenue 55,786.00 652,236.62 692,380.72 738,493.28 784,649.11

Direct Service Cost (93,800.00) (467,640.41) (511,004.50) (544,373.01) (577,772.86)
Rental (30,000.00) (105,000.00) (105,000.00) (105,000.00) (105,000.00)
Taxes and Licenses (15,628.00) (42,719.55) (42,719.55) (42,719.55) (42,719.55)
Creditable Tax - - - - -
Withholding Tax - 750.00 - - -
Total Cash Flow (83,642.00) 37,626.66 33,656.67 46,400.72 59,156.70

Beginning Cash 662,772.00 579,130.00 616,756.66 650,413.33 696,814.05

Ending Cash (Recom) 579,130.00 616,756.66 650,413.33 696,814.05 755,970.75

Ending Cash per FS 579,130.00 616,756.66 650,413.33 696,814.05 755,970.75
Difference - - - - -

*No financing and investing activities based on details of FS

*6,000,000 additional investment is based on the Lot's market value. There are no cash movement for this transaction.

D. Balance Sheet
BALANCE SHEET
2017 2018 2019 2020 2021
Assets
Cash Balance 579,130.00 616,757.00 650,413.33 696,814.05 755,970.75
Other Current Assets - - - - -
Total Current Assets 579,130.00 616,757.00 650,413.33 696,814.05 755,970.75

Property & Equipment - Net 17,100.00 7,125.00 7,125.00 7,125.00 7,125.00

Other Non-Current Assets - 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Total Non-Current Assets 17,100.00 6,007,125.00 6,007,125.00 6,007,125.00 6,007,125.00

Total Assets 596,230.00 6,623,882.00 6,657,538.33 6,703,939.05 6,763,095.75

Liabilities
Accounts Payable - Non Trade - 750.00 - - -
Total Current Liabilities - 750.00 - - -

Owner's Equity
Beg. Balance 196,973.00 596,230.00 6,623,882.11 6,657,538.33 6,703,939.05
Additional Investment 500,000.00 6,000,000.00 9,975.00 9,975.45 9,975.45
Less: Withdrawal - - - - -
Net Income/(Loss) (100,743.00) 26,902.00 23,681.22 36,425.27 49,181.25
Total Equity 596,230.00 6,623,132.00 6,657,538.33 6,703,939.05 6,763,095.75

TOTAL 596,230.00 6,623,882.00 6,657,538.33 6,703,939.05 6,703,939.05

55
 E. Financial Analysis

What’s stated in the income statement is that the business passed onto me
occurred huge losses, through the projected years the company has
accumulated a minimal projected income, though it may be small, it is good to
know that the company is now making money. My cash flow has little to no
movement due to adjustments in ownership. I am trying to minimize expenses
from occurring so we can pay back all our losses during the previous year.
Though it may not amount to much but a little increase in our financials is a
great heal rather than no increase at all.

References

 http://www.thefinanceresource.com/swot-analysis/automotive-repair-shop-swot-
analysis.aspx
 https://www.muntinlupacity.gov.ph/the-city/barangays/brgy-alabang/
 https://yourbusiness.azcentral.com/economic-factors-affecting-businesses-
4557.html
 https://www.v12data.com/blog/a-look-at-trends-and-statistics-in-the-automotive-
aftermarket-industry-2017/
 https://www.bworldonline.com/road-excellent-sales-services/
 https://www.pressreader.com/philippines/philippine-daily-
inquirer/20180930/283978948314903
 https://tallyfy.com/service-process/
 https://www.autotrainingcentre.com/blog/essential-equipment-auto-body-shop/
 http://www.qualres.org/HomeObse-3594.html
 https://www.inc.com/encyclopedia/job-shop.html
 https://www.skillscompetencescanada.com/en/skills/transportation/car-painting/
 https://pricingsociety.com/9-factors-that-affect-willingness-to-pay/

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