Bautista, Maria Eloisa M. Bia, Joecet M. Buquel, Angelo C. Fajardo, Marie Nicole M. Gulmatico, Angel Rose D. Gutierrez, Mark Anthony V. Ilagan, Patricia C. Pascual, Neil Harold P. Prado, Karl Euwin D. Siling, Zyrrine Angelie M.
The feasibility study of establishing Creatox: Creative studio bpx at University Belt Sampaloc, Manila
- Feasibility Study: (BSBA major in Marketing Management) - Pamantasan ng Lungsod ng Maynila, 2023
Executive Summary a. Business Description The proposed business is a multipurpose studio business. It is a service-based business created to solve the usual problems faced by most students in universities and high schools. This will serve the market by providing studios that can be rented to use as a space or studio to do their personal and academic requirements, such as photo shoots, role-play presentations, filming, dance practices, etc. The business also provides equipment that can be rented along with the studio. The business establishment will consist of a lobby/waiting area, cashier counter, storage room, restrooms, and four (4) studios. The service process of the business will consist of four (4) steps. First, customers will choose what service they will avail in our business, either renting a studio with equipment or without. Second, the customer will book the schedule they want or will pick on the available dates and times. Customers can book their schedule via Facebook/Messenger or phone call/text. Third, the customer will settle their payment by providing a 50% down payment for their reservation and sending proof of receipt. Lastly, they can go to the reserved date and time to use the rented studio by using the receipt as proof of reservation, and the balance payment will be settled after utilizing the studio. The business will operate from 8:00 am 10:00 pm every day from Tuesday to Sunday every week, and Monday will be the day off for all business personnel. Business personnel will be available to assist customers by teaching them how to use and operate every piece of equipment they will use. Still, their tasks and responsibilities are limited only to their classification as employees, which are listed as their Job Responsibilities. b. Market Analysis As a critical aspect in defining the feasibility of a business idea, market analysis determines the future demand for the service provided by the business that will be served to the target market. The market size of the proposed business is the total population of the thirteen (13) Universities and (2) High schools inside the area of the university belt in Sampaloc, Manila, and professionals and other individuals who need the service offered by the business. The proposed business is under Service Industry in the sector of Asset Rental. In terms of competitors, the proposed business has three (3) existing competitors in the market, which include two (2) direct competitors and one (1) indirect competitor. Regardless of gender, the primary target market of the business is all college and high school students ranging from 14-25 years old, and professionals and other individuals ranging from 26-43 years old as the secondary market with income levels of poor, lower income but not poor, and lower-middle-income earner ranges from less than P10,957-P43,828. Based on survey results, 97.4% of respondents will support and avail of the services offered by the proposed business, which was used as the basis of the projected demand for the business in the market. In terms of projected annual sales, the proposed business will get 25% of the total market share in the first year of operations because of its demand in the market and the inconsistent growth and projected sales of its competitors. The market has a supply gap of 26,730 customers and 23% of it will be total target market of the proposed business for the year of 2023. c. Marketing Feasibility In this aspect, it tackles the geographical location of the proposed business and its competitors, the services offered by the business personnel, the pricing strategy used to determine the service rates, the branding and positioning of the proposed business, and its unique selling proposition. The business location is at the center of the university belt in Sampaloc, Manila, which makes it accessible to every target customer, and its competitors are inside and nearly outside of the said area. The proposed business promised to provide enough services needed by the customers, such as High-quality service, Affordability of the service rates, User-friendly equipment and tools, Professionalism towards customers, and a Customer-centric environment of services given to the customers. To create a unique brand recall among consumers, the "Creatlox" name was created. "Creatiox stands for "Creative Studio Box" which means consumers can execute their creative ideas for their projects in the studio, and box meaning, creating activities in a "room". The tagline of the business is "Create what you imagine" which encourages customers to exhibit their creative Imagination by the help of the offered studio and equipment of the business. Creatiox will be differentiated from its competitors by providing space and complete equipment for people to make their ideas a reality and their creativity limitless. d. Technical Feasibility This section of the paper details the list of equipment, office supplies, furniture and fixture, and supplies that will help the business to function well, together with their costs. A Process flow chart that will give customers a step-by-step guide on how to avail and reserve their desired schedule is also included in this section. Additionally, this section of the paper elaborates on the production process that gave researchers the notion to launch the business on July 1, 2023, formally; this also includes the specific month for capitalization, redesigning, and purchasing of the equipment. The section also consists of the business's facilities and the room layout. It stresses the visual depiction of the business layout and its imperial measurements to add more information and a sense of realism to the project. The personnel uniforms and appropriate work clothing design are also covered in this paper section. e. Management Feasibility Creatiox is a partnership form of business ownership. Each of the ten (10) partners contributes to every aspect of the business, whether it is in the condition of funds, assets, employment, or skill. In exchange, each partner shares in the revenue and losses of the company. It is a general partnership in which the partners share profits, liabilities, and management responsibilities equally. Furthermore, Creatiox has three (3) types of partners: silent, active, and secret, all of whom contribute capital to the business. The company will strictly follow and fulfill all legal requirements to establish the business. Creatiox will register with the Securities and Exchange Commission, the Department of Labor and Employment (DOLE), the Bureau of Internal Revenue (BIR), the City of Manila (for a mayor's permit or municipal license), and the barangay in which the business is located. Creatiox's employees will consistently put their expert knowledge and efforts into the business to keep the company's promise of providing space and equipment for students, professionals, and non-professionals. The owner/Manager, Supervisor, Creative Staff, and Technical Staff will be personnel of the business. From Tuesday to Sunday, beginning at 8:00 am until 10:00 pm, the company's daily operations will be 14 hours. Creatiox's employees will work two (2) shifts, from 7:00 am to 3:00 pm. When the Owner or Manager is in charge, along with one a creative staff, and the second from 3:00 pm to 11:00 pm, the supervisor will be in order, along with a technical staff. The business will require policies to guide its employees in their jobs so they can adequately fulfill their obligations and responsibilities. It also has rules and regulations that must be followed by its employees and customers for everyone's safety. Management will take legal action if any policy, rules, or regulations are violated. f. Financial Feasibility Regarding sources of financing or funding for the proposed business, all the proponents will be the source of capitalization. Creatiox will be funded through Equity Capital, wherein all the business partners will contribute to the business's capital and exchange for equity or a portion of ownership right in the business. All the computed values in Profitability ratios, Liquidity ratios, Efficiency Ratios, and Leverage ratios are above the average, indicating a positive result in the business's operations. Additionally, all the values computed and listed in all the financial statements, information, and data will reflect and boil down in the results of the Return-on-Investment part of the economic analysis. The payback period of the capital invested in the business is two (2) years and nine (9) months, which shows a good result for the business. Because it is earlier than four (4) years, and all the other significant indicator of a good business idea shows above-average results, such as the Net Present Value, Profitability Index, and Intermal Rate of Retum of the proposed business. In conclusion, the proposed business will be feasible to establish and operate in the market. g. Socio-Economic Feasibility This chapter discusses the benefits of Creatiox and how they will affect the government, economy, and society. It emphasized business's importance to society and its Contribution to the government and economy. This should be considered by the business to receive positive feedback from the community. A company's impact on people and society should be felt alongside its financial motive. By paying the necessary taxes, Creatiox will diligently and responsibly contribute to its commitment to the government to improve the community. It will also help the government to lessen the country's unemployment rate by providing employment opportunities that allow individuals to Improve their living standards. Creatiox can help drive economic growth by delivering creative studio innovation that provides valuable services to its customers. Creatiox also creates jobs, which improves the economic health of the communities. Furthermore, it supports the growth of the country's creative and cultural activities, which generate economic activity. Creatiox will benefit our society by providing students, professionals, and non-professionals with space and equipment. The company will encourage its customers to express their ideas and creativity. Furthermore, it will aid in producing higher-qua