Business Plan of SOLIT KTV Restobar (West Visayas State University) PDF

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BUSINESS PLAN##########3 rd floor The Grid, Mandurriao, San Rafael, Iloilo City, 5000 February 23, 2021 Prepared by: Riza Deslate Catmon St. Tiza, Roxas City, 5800 rizacalapardo@gmail(036) 6 200 747/ 0915067519 Kenn Airie Española Brgy. Lisub Barbaza, Antique, 5706 09366722134 kennairie@gmail Pacy M...

Description

BUSINESS PLAN

3rd floor The Grid, Mandurriao, San Rafael, Iloilo City, 5000 February 23, 2021 Prepared by: Riza Deslate Catmon St. Tiza, Roxas City, 5800 (036) 6 200 747/ 0915067519 [email protected] Kenn Airie Española Brgy. Lisub Barbaza, Antique, 5706 09366722134 [email protected] Pacy Maurenne Escora Cordova Norte, Tigbauan Iloilo 039636643778 [email protected] Joel Patrick Flores Gaub Cabatuan, Iloilo 09317656432 [email protected] Stephanie Cordero San Dionisio, Iloilo 09997923968 [email protected]

TABLE OF CONTENTS

EXECUTIVE SUMMARY

1

INTRODUCTION Description about the Owners

4

Products and Services

4

Objectives of the Venture/Project

6

Long Term Aim of the Business

6

Target Market

7

Business Target

8

Total Market Valuation

9

Target Revenue

9

Market Trends

9

Profile of Competitors

10

Competitive Advantage

11

Benefits to Clients

11

MARKETING STRATEGIES/SALE Sales Strategies

12

Pricing

12

Marketing and Communication Strategy

13

ORGANIZATION AND MANAGEMENT PLAN Management Organizational Chart

14

Staffing and Training Plan

14

Operations

15

FINANCIAL MANAGEMENT/ANALYSIS Start-up Cost

16

Profit and Loss Account

18

Balance Sheet

19

Cash Flow

20

APPENDICES

EXECUTIVE SUMMARY SOlit KTV BAR will bring a unique setting and stands as the highly interactive entertainment yet competitive business equipped with several other entertainment facilities located in3rd floor The Grid, Mandurriao, San Rafael, Iloilo City. It is a gathering place that will provide a cozy environment partnered with good quality of foods/snacks, alcoholic and non-alcoholic beverages and a variety of foods to customers in its target market which specifically suitable for socializing and networking. SOlit will cater to the office workers, tourists as well as the local patrons coming home from work for some relaxation after a stressful and tiring day. The purpose of this business plan is to raise at least P5,000,000 for the growth of the business while showcasing the expected financials and operations over the next three years. The vision and mission, together with the objectives and strategies, express the Company’s business concept. Together, this will ensure the continued positive development of the company’s leading market position in the business industry. The business strategies show how the management team will attract every customer by providing their truest effort as well as how competitive they are just to serve the customers only the best that will value the money they’ve spent. The management has many unique and trendy ideas that the customers will surely put their butt in for the multiple next time. SOlit! will accomplish the said business through a marketing campaign, reliance on signage, and primarily by word of mouth. The site was primarily selected because of its location, the local demographics surroundings, the site, and reasonable rental rates. The business is obliged to follow the laws regarding the proper usage of alcoholic drinks and designed to meet both health and safety standards as recommended by the government. The company will also execute strict policies regarding the underage customers that visit during school hours

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Top of the list on our Marketing Plan is to make our KTV or Karaoke Bar stand-out and be known. Our unique selling proposition is that we have a collection of almost all genres of music to ensure that no matter what your age is, you can never be left out when you experience our Karaoke service. We also have snacks and drinks available so that it is not your body and soul that will be fulfilled but also your hungry tummies. The parts of our marketing plan that we will adopt are; 

Open our karaoke bar in a grand style with a party for all to attract customers.

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Introduce our KTV bar through social media and all possible brochures and fliers.

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Ensure that we have a wide range of a source of snacks and beverages.

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Make use of attractive handbills to create awareness and also give direction to our KTV bar

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Delivering consistent best customer service to make sure that our KTV bar isn't just good upon opening but has consistent proper karaoke service experience. The business was founded by Riza Deslate together with her co-partners Pacy Maurene Escora,

Kenn Airie Española, Joel Patrick Flores, and Stephanie Cordero. The success of the said business is in its owner who is committed to making the operation a successful one. Employees have been selected carefully and share the same views as the owners, which is to keep the customers happy and satisfied. The group venture with this business idea, not just to generate profits but also to provide a trusted, relaxing, and comfortable setting where every member of the society can have the best time of their lives. They also wanted to use their socialite structure and managing skills for a fruitful purpose. SOlit! KTV x BAR plans to generate a profit within the first 24 months of operations and repayment of all financial obligations within the first three years of operations. 2

Sales are expected to reach at least P20,000,000.00 by the end of the initial 3 years. SOlit KTV x BAR is acquiring total funding of P5,000,000.00 to launch its proposed KTV Bar. The capital will be used for funding capital expenditures (purchasing of kitchen and room equipment, furniture and fixtures, etc.) manpower costs, marketing expenses, and working capital.

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I.

INTRODUCTION

Description about the Owners SOlit! KTV Bar stands as a highly interactive entertainment yet competitive corporation equipped with several other entertainment facilities located on the 3rd floor The Grid, Mandurriao, San Rafael, Iloilo City, a gathering place that will provide a cozy environment which specifically suitable for socializing and networking. As an entrepreneur, people primarily think that a business is just for the sake of earning revenues. However, the integral factor in achieving success is to manage one that is closest to our hearts. The business was founded by Riza Deslate together with her co-partners Pacy Maurene Escora, Kenn Airie Española, Joel Patrick Flores, and Stephanie Cordero. All of them are successful in their career fields. Equally visionary founders, these men, and women followed a similar path: they started small, took risks, and eventually expanded their knowledge of creating a business. The owners are very close friends even before their college days and, KTV had always been our go-to place whenever we crave fun and excitement. A KTV Bar / Karaoke Bar is a form of interactive entertainment in which amateur singers can sing along with recorded music. Therefore, they decided to form their very own to share those euphoric experiences with other people. It will strengthen the bond of the group of customers and also fulfill their satisfaction. Products and Services This KTV Bar will borrow some features from a famous bar located in Metro Manila, Philippines. However, it will still retain its originality, with the products and services that it will offer. First, the KTV Bar will have varying styles and tastes. The region, ethnic background, and class of customers are the basis of the diversity of Solit!'s tastes and styles. Some of the products that will be on 4

offer are Asian and American dishes, beverages, alcoholic drinks, seafood, desserts, snacks, and other foods from different cultures worldwide. However, SOlit! will prioritize Iloilo-originated cuisine to serve the local population in the Province of Iloilo, as well as other cities in Western Visayas. Take-out and food delivery services will also be offered by this restaurant whenever customers have their dishes in the KTV Bar. The basis of this will be, solely, for the comfort and entertainment of the customers. There are 10 soundproofed rooms located throughout the venue for a private party and karaoke use. There are three types of rooms: Mini, Standard, and Jumbo. 5 Mini rooms comfortably fit 4 to 5 adults. The 3 Standard rooms can hold 15 to 20 adults. 2 Jumbo rooms cater to 70 to 100 adults. We will make sure to install the lighting that will be comfortable and appropriate nightlife throughout the venue, including the bar, the private room stage, and rooms. Rates are good for 4 hours and inclusive of tax. For more than 4hours, an additional consumable rate will apply. Open daily from 10 AM till 12 midnight. Outside food and drinks are prohibited. Our topmost priority is to promote multiple language karaoke. Therefore, we prepared an extensive amount of Asian-based songs in our library that the customers will enjoy. The languages include English, Chinese, Korean, Vietnamese, Thai, Japanese, and other languages. A total of 100,000 songs in multiple languages.

Our rooms are well-equipped with the following: 

Widescreen LED monitors



High power mixer/amplifier



Up to date song selections



Qwerty keyboard remote control

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Wifi internet connectivity

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Service call buttons 5

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Projector screen

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Wireless microphone

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Common Lounge Area

Objectives of the Venture/Project 

To become the most visited KTV bar in the Iloilo City



To offer one of the Best KTV experience services that can value our customers' spendings.

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To make SOlit! a place to make feel that karaoke lovers are most welcomed and feel relaxed and at home.

Long Term Aim of the Business Our long-term goal is to conduct our business in a professional but easygoing manner emphasizing the people's desire and reach their dream to relax and enjoy the unique and rare service we provide to our customers.

II.

OPERATING PLAN SOlit! KTV Bar will need approximately 200 sqm. This area will include operating space, KTV rooms, and a reception area. The operating space will consist of a freezer, oven, counter, and serving area, food warmers and ambient display cases, cold beverage display, and a restroom. It will be located on high-traffic commuter routes and close to shopping facilities to catch customers going to or from work, while they are out for lunch, or on a shopping expedition. The business will operate from Monday through Sunday. SOlit! KTV Bar is a Philippine-based corporation that will provide a spacious yet cozy environment partnered with good quality foods/snacks, alcoholic and non-alcoholic beverages, and more to customers in its target market. The company will also execute strict policies 6

regarding the underage customers that come during school hours. SOlit! is a business that is established to be a pacesetter when it comes to how a karaoke or KTV bar should be managed. The company is obliged to follow the laws regarding the proper usage of alcoholic drinks and designed to meet both health and safety standards as recommended by the government. We have a skillful and accountable team of dedicated workforce that has a goal and a principle to ensure our customer's satisfaction and is willing to give the best customer service at all times. A team that could make SOlit! 's beloved customers have their quality karaoke moments and would make them come back for another fun experience. Its management team will attract every customer by providing their truest effort as well as how competitive they are just to serve the customers only the best that will value the money they’ve spent. The management has many unique and trendy ideas that the customers will surely put their butt in next time. Our business aims to make profits but at the same time to give our customers the best service and experience that value for the money they spend. We will make sure that SOlit! isn't just a common karaoke bar but also a place where people can truly feel and enjoy their best Karaoke bonding. And just like the name of our business, SOlit! their time and money are worth their KTV experience. III.

Marketing Plan

Target Market As we starting to build our business, we conducted a market survey and feasibility studies. We are certain that there is a wide range of people who would patronize our karaoke bar regularly. Because of that, we have created strategies that will enable us to reach out to various groups of people who are likely going to become loyal customers of our services.

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First will be TEENAGERS (College students) who are looking for fun and relieve stress with friends. These individuals aged 18 above will find our karaoke bar as the perfect place for socialization where they can also enjoy the musical nights. The second target will be the CHILDREN around aged 8 to 17 years old where they can play with their peers by our service offerings. We can guarantee the safety of the children to the parents that our business is filled with securities to assure their safety in our lounges. Trust is one of the keys we can offer to our beloved customers. We will provide a safe and clean environment where children and teens can play with toys, have delicious meals and spend time with their friends playing the productive game. The third category will be the TOURIST, people from out of town/country. Every customer is welcome and can enjoy our services. We can offer them a room to stay and enjoy as they want. We can serve them a meal and different high-class drinks to vibe with music. They can also socialize with others to gain friends and connections. The last category will be the ELDERLY people who just want to kill their time or have chats with other people of their age. They can enjoy drinks as they want and will enjoy our bar as they will feel young ones again. Business Target 

To become the most visited karaoke



To balance the initial cost of the startup with earned profits by the end of the first year



To add more services and facilities for the customers 8

Target Market Valuation The following table demonstrates the total market value of SOlit! KTVxBAR: Business Property (Rent)

1, 260,000

Leasehold Improvement

500,000

All forms of depreciaton

390,000

Total Market Value

1, 370,000

Target Revenue The following table demonstrates the annual sales forecast of SOlit! KTVxBAR for the next three years: Annual Sales Forecast Mini Room Standard Room Jumbo Room Alcoholic Drinks Non-alcoholic beverages Foods/Meals Seafoods Gross Margin

Year 1 1,980,000 1,808,000 1,584,900 3,105,050 613,070 1,700,900 985,500 11,777,420

Year 2 3,124,000 2, 070,875 2,270,050 3,990,000 708,900 2,052,650 1,430,000 15,646,475

Year 3 4,550,000 3,050,000 2,670,000 4,190,000 1,350,890 2,827,700 2,700,550 21,339,140

Market Trend Japan started to bloom the karaoke bars but later on, they spread in entire Asia and then in the whole country. Now there are thousands of karaoke bars within the Philippines. Even though the karaoke bars industry has long existed in Iloilo, it is starting to come back into fashion. Innovative music genre and sound system technology have increased demand over the last five years. A close observation of the trends in the industry shows that patrons of karaoke bars have 9

increased dramatically among Filipinos’ youths in recent years because of the social atmosphere it creates and because many young adults believe karaoke bars can give them pleasure they will get by attending expensive musical concerts. To remain open, many karaoke bars started selling food or beverages. A host of karaoke bars have begun to incorporate a larger variety of alcoholic drinks and food choices as part of their product offerings. It is obvious that adding these product offerings help in creating an alternate source of income even if they struggle to attract people who are only interested in being entertained. And we are offering all these kinds of stuff to make our customer entertain and enjoy into fullest as they are the reason of our business. Profile of Competitors Although we have tough competition, we have entered the market with several competitive aspects. We are not ignoring the fact that our competitors such as malls, big restaurants, and clubs can overwhelm us and steal our future customers by their products and service that they are offering. Malls can offer everything a customer needs yet the beverages and meals they offered are way too expensive and the cost of traveling to buy such items and the energy of customers spent waiting gives them a great disadvantage compared to us. It applied as well to the big restaurants and clubs out there. Customers will choose the provided offers that they feel most comfortable, affordable, and convenient location. Being located near to our primary target – college students, children, tourists and elderly will enjoy the advantage of having no local competition in the densely populated, mixed-age area with good public transportation making it conveniently accessible for our customers.

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Our prices are reasonable. We have many activities as well as lounges for those who are shy to sing songs. Our biggest competitive advantage lies in the safe and fine environment maintained by our responsible staff. Competitive Advantage We are aware that competition exists in the karaoke industry. Part of the competitive edge we will be bringing to the market is the fact that we already have a loyal customer base, our ability to quickly adopt new technology in the industry, and we aware that we must adhere to licensing requirements. We are confident that we operate a standard karaoke bar in a perfect location. We have a dedicated and customer-centric workforce that is willing to go the extra mile to give our customers full value for their money and time. Also due to intense competition, we realize the need for differentiation and strongly believe that combining a bar with a classy and entertaining atmosphere is the key to its success and improve meals and beverages that suited for the category of our target market Lastly, the member of our business are fully committed to their responsibilities that they will help our business to thrive on top and help deliver our set goals and achieve all our aims and objectives. BENEFITS TO CLIENTS Our business will ensure that we create the buzz that will make the public know about us and what we do.

SOlit! provides a quality karaoke experience that will really make a mark on our

customers' hearts and that will make them come back for more. Our unique business proposition is that we have all the things you expect in a standard KTV bar; from what our business could offer and our undeniable quality customer service. 11

Teenagers will be considering this as home as they start enjoying our business as the home that they looking for: A comfortable place to relieve stress, a homemaking more memories, and an unforgettable experience. For children, assure that they are safe with us. They won’t feel bored at all as we can entertain them with games and services suited for their age. For the elderly and tourists, drinks and party thing that makes their blood burst into enjoyment. We can offer a different kind of...