Executive Summary

Introduction

RMKM ENTERPRISE is a fine art business and full-service custom lighting fixtures. The cornerstone
of RMKM Enterprise’s undertaking is high-quality custom lighting. The company is unique in its field
in that it offers sophisticated lamps out of recycled materials. RMKM Enterprise is founded on a
dedication to offer the province of Bohol the most innovative, trend-setting designs and a finished
product of perfect quality at unmatched speeds.

The Company

RMKM Enterprise is partnership that is owned and operated by partners Rebecca, Mary Rose, Kate and
Melward. The knowledge, expertise, and contacts that the partners have accumulated during their
college years have led them to found RMKM Enterprise.

Products

As mentioned above, RMKM Enterprise's primary focus will be on customized generation of lamps,
which is expected to generate roughly 100% of its monthly income.

Financial Outlook

The demand for artwork and custom lighting is strong: 42% of consumers report that they are likely to
make an art or lighting purchase in the upcoming year. Additionally, industry analyses predict a 4-6%
growth in custom lighting sales for 2020. Given this, RMKM Enterprise is confident that it can enter
and establish itself in the market successfully. Financial projections are positive, and the
company expects to generate healthy sustainable income and gross margin over the year.

Objectives

RMKM Enterprise has three major goals:

1. Establish consumer awareness of both product and company through marketing. This can be
accomplished by advertising through social media, specifically on Facebook and Instagram.

2. Focus primarily on customized lamps, emphasizing leading-edge and high-end design. To do this,
the company will monitor changing design and lamp feature trends.

3. To proffer finished lamps that will satisfy customer needs and wants.

Mission

RMKM Enterprise is founded on a dedication to offer the province the most innovative, trend-setting
designs and a finished product of perfect quality at unmatched speeds.

To this end, the company takes pride in two things:

1. Eye-catching, unique lamp designs.

2. The highest quality craftsmanship and an ongoing commitment to excellence.

Keys to Success

RMKM Enterprise has two key factors that are integral to success:

1. Quality Craftsmanship - Because customized lighting is aesthetic in nature, the finished product
must be of perfect quality.

2. Innovation and Creativity - Custom lighting implies uniqueness, and the customer expects a one-
of-a-kind product.

Company Summary
RMKM Enterprise is a new enterprise servicing the province of Bohol which offers uniqe lamps. The
enterprise will offer sophisticated and excellent quality products for home and office use. The items
will serve as lamps not just for the mentioned places but for every desired place. These items are just
small in size but light in a beautiful manner. Yarn-wrapped lighted and painted jars are offered at very
affordable prices
 Start-up Summary

The start-up costs for this company can be broken into two major categories:

1. Materials – All of the necessary jars to be used are recycled items . Yarns, lights and spray paints
are to be purchased.

2. Working Capital - Working capital will be needed for day-to-day operations which includes the
operating expenses.

Market Analysis Summary

The business continues to be both challenging and interesting. Within the larger category of wall
décor, lamps have historically commanded a substantial portion of the market, with roughly 70% of
wall décor items consisting of lamps.

Who Buys Lamps

In 2018, 44% of Filipino households made of lamp purchases. These can be broken down into four
categories: Twinke bulb, Halogen Lamp, Solar Lamp and Kandeel.

# Pieces
Amount Spent
% of Households Purchased
- (Median –
Purchased Last Year (Median –
Average)
Average)

Twinke
29% 3 - 10 P150-P300
Lamp

Halogen
26% 3-7 P200-P450
lamp

Fit-me
19% 2-9 P100-P350
lamp

Kandeel 14% 1-2 P400-P700

 Consumers aged 35-54 were significantly more likely to make multiple purchases, while
younger buyers, aged 18-24 were more likely to make singular purchases.
Important Considerations:

Market Segmentation

RMKM Enterprise is positioned to serve three types of customers:

1. Local Consumers - Local consumers are the standard, walk-in customer. These customers live
nearby and therefore, share the demographics of the local area. These customers are
primarily interested in decorating their home or office, and will represent a majority of RMKM
Enterprise’s customers, especially with respect to custom lighting.

2. Internet Consumers - Internet consumers are worldwide, and include anyone with access to
the Internet. These customers typically have the same motives as local consumers, but have
chosen to use the Internet to make their purchase.

3. Local Business & Organizations - Although this group represents the smallest segment of
RMKM Enterprise’s market, these customers typically make larger purchases.
Target Market Segment Strategy
Because a 100% of RMKM Enterprise’s income is generated through selling lamps, the target
market segment will be the local consumer. Individual walk-in consumers are the only segment
reasonably able to make custom lighting purchases.

Within the broad category of local consumers, there are further obvious distinctions that can be
made: gender, age, education, income, and others; however, the most important subsection of local
consumers are the homeowners. Homeowners are the logical focus for three reasons: homeowners
typically earn more than their counterparts, homeowners typically have more wall space to
decorate, and homeowners are more likely to remodel their current home, which generally creates a
need for new or unique and affordable lamps.

Strategy and Implementation Summary

The primary focus for RMKM Enterprise is to establish and differentiate itself in the marketplace.
This can be accomplished through advertising within the community that the company will serve,
and by striving to build a positive reputation, particularly with regard to fast lamp completion time
and friendly, creative customer service.

Competitive Edge

Innovation and advancement is key to any business, including the art of making lamps.
Unfortunately, businesses in the art market have been resistant to change and modernization.

The primary advantage of RMKM Enterprise will be its very affordable selling price, its eye-
catching, trendy design and functionality of the product. Even though the lamps are made without
any applied new technology, it still stands firm with its superior and excellent quality and design.

Marketing Strategy

The marketing strategy of RMKM Enterprise rest on two main principles:

1. Satisfied customers are the most effective form of marketing. When a customer feels they can
rely on for RMKM Enterprise creative design, perfect quality, and fast, friendly service they are
eager to share that confidence with friends and family.

2. Because repeat customers represent a large portion of the business, it is essential that RMKM
Enterprise builds a strong customer base early on. To do this, the company plans to offer sales
promotions on custom lighting to encourage new customers, advertising such promotions in
social media.

Sales Strategy

Pricing for Artwork

Art is priced by a keystone markup. The selling price for each lamp will be 69% above its unit cost.

Management Summary
At present, RMKM Enterprise will be managed by its four partners. They will be responsible for the
entirety of tasks associated with operating the lamp business, including assisting customers,
designing and creating lamps, purchasing materials, and human resources. At the start of the
business operations, the enterprise will employ one personnel to assist Partner, Melward in the
creation of lamps. As the enterprise grows and the demand for the products increase by 50% above
the normal demand, more employees will be hired.

Personnel Plan

Given the small business nature of RMKM Enterprise, this personnel plan is intended serve as a
guide to staffing, although staffing decisions must ultimately be based on business need.

RMKM Enterprise’s personnel plan can be summarized as follows:

 Two employees will serve as full-time sales and design associates. Both will be primarily
responsible for the creation of lamps and assisting customers with questions and purchases,
including custom lighting design.
 PERSONNEL PLAN

FY 2020 FY 2021 FY 2022

1 Sales and Design Associate P48,000 48,000 48,000

TOTAL PEOPLE 1 1 1

Total Payroll P48,000 P48,000 P48,000

Financial Plan
RMKM Enterprise will secure the money for the start-up costs from personal savings of partners;
Rebecca, Mary Rose and Kate. They are the enterprise’s capitalist partners. On the other hand,
Melward, an industrial partner, will contribute his labor, skills and expertise in creating lamps out
of recycled materials.

The company also expects to be able to increase consumer awareness and its customer base to
maintain a healthy level of growth over the next months. This will be made possible through
advertising, as well as through word-of-mouth recommendations.

Finally, RMKM Enterprise will minimize costs by using its small business, personal nature to build
and maintain an enthusiastic, dependable, and flexible workforce.
Projections

Start-up Funding

At this time, Ms. Rebecca Lumanas has purchased the necessary materials for the business
operations to start.

Petty cash fund will be needed for miscellanous expenses.

START-UP FUNDING

Start-up Expenses to Fund P500.00

Start-up Assets to Fund 800.00

TOTAL FUNDING REQUIRED P1,300.00

Assets

Non-cash Assets from Start-up P800.00

Cash Requirements from Start-up 500.00

Additional Cash Raised 100.00

Cash Balance on Starting Date 400.00

TOTAL ASSETS P1,800.00

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 0

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

TOTAL LIABILITIES P0

Capital

Lumanas, Capital P600.00

Felecio, Capital P600.00

Bernales, Capital P600.00

TOTAL CAPITAL P1,800.00

 TOTAL CAPITAL AND LIABILITIES P1,800.00

Important Assumptions

RMKM Enterprise makes several important financial assumptions in this plan:

1. Assume access to capital to support our financial plan.

2. Assume financial progress based on realistic sales to minimum sales against highest expenses.

3. Assume a steady economy, without major recession that would greatly affet our expected sales.

Appendix

SA LES FORECA ST

SEP OCT NOV DEC JA N FEB MA R A PR MA Y JUN JUL A UG

Sale s

Twink e 0 P 3,750 4,500 7,500 3,500 4,500 4,000 3,750 3,750 3,500 2,250 2,500 3,150
Lam p %

Halogen 0 3,750 4,500 7,500 3,500 4,500 4,000 3,750 3,750 3,500 2,250 2,500 3,150
lam p %

Fit-m e 0 400 420 500 650 475 400 380 375 365 $350 $360 $375
Lam p %

Kandeel 0 3,000 3,100 3,200 3,100 3,000 3,500 3,600 3,400 3,900 4,000 5,000 5,100
%

TOTA L P10,90 P12,52 P18,70 P10,75 P12,47 P11,90 P11,48 P11,27 P11,26 P8,85 P10,36 P11,77
SA LES 0 0 0 0 5 0 0 5 5 0 0 5

Dire ct C ost Se p O ct Nov De c Jan Fe b Mar Apr May Jun Jul Aug
of Sale s

Mate rials P 1,250 1,700 1,500 1,100 1,700 1,400 1,250 1,250 1,100 1,350 1,500 1,700

Lighting 200 200 200 200 200 200 200 200 200 200 200 200
Supplies
and
Maintenanc
e

Subtotal P1,450 P1,900 P1,700 P1,300 P1,900 P1,600 P1,450 P1,450 P1,300 P1,55 P1,700 P1,900
Dire ct C ost 0
of Sale s

PERSONNEL PLAN

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

Sales 0% P4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
and
Design
Associate
no. 1

TOTAL 1 1 1 1 1 1 1 1 1 1 1 1
PEOPLE

PRO FORMA PROFIT A ND LOSS

SEP OCT NOV DEC JA N FEB MA R A PR MA Y JUN JUL A UG

Sales P 1 0 ,900 P12,520 P18,700 P10,750 P12,475 P11,900 P11,480 P11,275 P 1 1 ,265 P8,850 P10,360 P11,775

D irec t C ost of Sales P1,450 P1,900 P1,700 P1,300 P1,900 P1,600 P1,450 P1,450 P1,300 P1,550 P1,700 P1,900

G ros s P rofit P 9 ,4 50 P 1 0 ,620 P 1 7 ,000 P 9 ,4 50 P 1 0 ,575 P 1 0 ,300 P 1 0 ,030 P 9 ,8 25 P 9 ,9 65 P 7 ,3 00 P 8 ,6 60 P 9 ,8 75

G ros s P rofit M argin 8 6 .7 0% 8 4 .8 2% 9 0 .9 1% 8 7 .9 1% 8 4 .7 7% 8 6 .5 5% 8 7 .3 7% 8 7 .1 4% 8 8 .4 6% 8 2 .4 9% 8 3 .5 9% 8 3 .8 6%

E xpens es

P ayroll P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00 P 4 ,0 00

M arketing/Promotion P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00 P 8 00

T otal O perating P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00 P 4 ,8 00
E xpens es

P rofit Before T axes P 4 ,6 50 P 5 ,8 20 P 1 2 ,200 P 4 ,6 50 P 5 ,7 75 P 5 ,5 00 P 5 ,2 30 P 5 ,0 25 P 5 ,1 65 P 2 ,5 00 P 3 ,8 60 P 6 ,9 75

I nc ome T ax P 4 65 P 5 82 P 1 ,2 20 P 4 65 P 5 77.5 P 5 50 P 5 23 P 5 02.5 P 5 16.5 P 2 50 P 3 86 P 6 97.5

N et P rofit P 4 ,1 85 P 5 ,2 38 P 1 0 ,980 P 4 ,1 85 P 5 ,197.5 P 4 ,9 50 P 4 ,7 07 P 4 ,522.5 P 4 ,648.5 P 2 ,2 50 P 3 ,4 74 P 6 ,277.5

N et P rofit M argin 3 8 .9 4% 4 1 .8 4% 5 8 .7 2% 3 8 .9 3% 4 1 .6 6% 4 1 .6 0% 4 1 .0 0% 4 0 .1 1% 4 1 .2 6% 2 5 .4 2% 3 3 .5 3% 5 3 .3 1%
PRO FORMA BA LA NCE SHEET

SEP OCT NOV DEC JA N FEB MA R A PR MA Y JUN JUL A UG

A s sets Starting
Balances

C as h P 8 00 P 3 ,0 00 P 3 ,2 38 P 4 ,9 80 P 2 ,1 85 P 2 ,1 85 P 3 ,9 50 P 3 ,7 07 P 3 ,5 22.5 P 3 ,6 48.52 P 2 ,2 50 P 2 ,4 74 P 3 ,2 77.5

I nventory 1 ,0 0 0 3 ,1 8 5 2 ,0 0 0 8 ,0 0 0 4 ,0 0 0 4 ,0 0 0 3 ,0 0 0 3 ,0 0 0 3 ,0 0 0 3 ,0 0 0 2 ,0 0 0 3 ,0 0 0 5 ,0 0 0

TOTA L P1,800 P6,185 P7,238 P12,980 P6,185 P6,185 P6,950 P6,707 P6,522.5 P6,648.52 P4,250 P5,474 P8,277.5
A SSETS

L iabilities and Sep O ct N ov D ec J an Feb M ar A pr M ay J un J ul A ug

C apital

L iabilities

L iabilities P0 0 0 0 0 0 0 0 0 0 0 0 0

TOTA L P0 P0 P0 P0 P01 P0 P0 P0 P0 P0 P0 P0 P0
LIA BILITIES

P aid- in P 1 ,8 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00 P 2 ,0 00
C apital

Retained P 4 ,1 85 P 5 ,2 38 P 1 0 ,980 P 4 ,1 85 P 5 ,1 97.5 P 4 ,9 50 P 4 ,7 07 P 4 ,5 22.5 P 4 ,6 48.5 P 2 ,2 50 P 3 ,4 74 P 6 ,2 77.5

E arnings

TOTA L P1,800 P6,185 P7,238 P12,980 P6,185 P7,197.5 P6,950 P6,707 P6,522.5 P6,648.52 P4,250 P5,474 P8,277.5
CA PITA L

TOTA L P1,800 P6,185 P7,238 P12,980 P6,185 P6,185 P6,950 P6,707 P6,522.5 P6,648.52 P4,250 P5,474 P8,277.5
LIA BILITIES
A ND
CA PITA L
Technical and Production Plan
The production process in the generation of yarn-wrapped painted and lighted jars are as
follows:

Materials needed for the start-up:

20 empty jars
2 bottles of spray Paint
5 pcs.of yarn

Procedures:

• Submerge jar into water, I suggest filling the jar half way to reduce movement.
• Let jars sit for 3-5 minutes.
• Peal off the sticker if you used water it should slide right off.
• Make sure all the glue is off.
• Dry off jars completely.

• Cut long strings of yarn, enough to go around the jar multiple times.

• Wrap the yarn around the jar; make sure to leave the start open for tying off at the end. Be creative,
use different patterns to make each jar it’s own, or make a collection of the same.

• Once done wrapping, tie the end with the start to keep the pattern.

• Cut off the extra yarn from the knot.

• Lay down paper or newspaper for your painting area.

• If needed put blocks on the corners of the paper so they do not roll up.

• Turn the jars upside so the open side of the jar is on ground, this is so the paint does not get into the
inside of the jar

Space the jars out, at least a foot apart of each other. This is so you can fit the spray can in-between the
gaps and one jar doesn't get more paint than another.

 Use the spray paint to paint, keep the can around 6 inches away from the jar while spraying.
This is important to keep the paint from dripping
 Go over the whole jar and over the yarn, make sure to get in-between the yarn for the best
pattern
 Make sure to maintain a equal coat

 Cut the yarn at the end of the string by the knot for best results and easiest for removal.

*Be careful not to hit the jar with the scissors.

 Un-wrap the yarn from the jar.

*Make sure to go slow not pulling off any of the paint.