s

Sikad Skateshop

Feasibility Study

Presented to The faculty of Business Administration Program

By;

Chatto , Christin May

Diamante,Mary Joy
Dimanahan, Richard
Dugenio, Novemar
Escalera, Gelly Jane

March 2019
 Approval Sheet

The Feasibility Study entitled Sikad Skateshop prepared and submitted by, Christin May

Chatto, Mary Joy Diamante, Richard Dimanahan, Novemar Dugenio, Jane Escalera, in

partial fulfillment the requirements in FM-E4 ( Feasibility Study) has been examined and

is recommended for oral examination, acceptance and approval

PAQUITO P. PASIA JR, MM

Instructor

______________________________________________________________________

PANEL OF EXAMINERS

Accepted and approved after the presentation of the study with a grade of

PANELIST 1

Chairperson

PANELIST 2 PANELIST 3

Member Member
 Acknowledgment

The completion of this feasibility study was made possible through the encouragement

and assistance of some persons who have given their time and solicited advice to this

study:

To our panelists namely Susan S. Cruz, PhD, Mary Richelle L. Boholano, DM, Lorribelle

R. Ocenar, PhD, we would like to express our profound gratitude and deep regards for

their pearls of wisdom with us during the course of our research.

Mr. Paquito P. Pasia Jr. MM, our instructor, for his patience and guidance,

encouragement and for sharing his expertise in writing this feasibility study;

To or dear respondents, the most of them are skaters sincerest gratitude for the time they

spent in answering our questionnaires.

To our relatives thank you for the moral support; also to our friends, who always there for

us.

Most of all to OUR LORD JESUS CHRIST, for his abundant graces and blessings

showered unto the family of researchers.

 Executive Summary

Looks Barbershop is an ordinary barbershop that can accommodate any race or

group of people that offers today’s progressive gentlemen a haven where they can sit

back and relax and experience the unique service and gentleman’s club atmosphere.

Look Barbershop is aimed at an exclusive market and discerning customer base,

and will add tremendous value to our community while offering a combination of unique

services not currently offered by any competitor in the greater area. We intend to be

profitable by increasing our client base through becoming a highly sought after

destination.

Our goal, beyond becoming a profitable business, becoming a trusted destination

whereby the clients in our area can come to refresh their minds and bodies, replenish

their energies, and network with their colleagues and friends.

 Table of Contents

Cover Page Page

Title page i

Approval Sheet ii

Acknowledgement iii

Executive Summary iv

Table of Contents v

List of Tables vi

List of Figures vii

List of Schedules viii

CHAPTER

1 Marketing Aspect 1

Service Description 1

Target Market 1

Area of Coverage 2
 Customer 3

Demand and Supply Analysis 4

Total Potential Demand 4

Supply Analysis 5

Pricing Structure 8

Projected Sales

Marketing Program/Strategies 9

Practices of Competitors 11

Own Marketing Program/Strategies 11

2 Technical Aspect 11

Technical Requirement 13

Government Requirement 14

Service Process 15

Service Schedule 16

Labor Requirement 17

Supply Requirement 17

Raw Materials Requirements 17

 Location 17

Layout 18

Waste Disposal System 19

Quality Control Requirement 21

Production Cost 22

3 Organizational and Management Aspects 23

Legal Form of Business 23

Organization Structure 24

Qualification of Officer 25

Office Equipment 25

Gantt Chart of Activities 26

4 Financial Aspect 27

Total Project Cost 28

Source of Financing 29

Financial Assumptions 29

Projected Financial Statement 29

Projected Balance Sheet 29

 Projected Income Statement 30

Projected Cash Flow 29

Financial Analysis 30

Break Even Point 31

Payback Period 31

Profitability Ratio 32

ROI 32

Gross Profit Ratio 32

Net Income to Sales Ratio

Liquidity Ratio

Current Ratio

Quick Ratio

Solvency Ratio

Debt Total Asset Ratio

Equity Total Asset Ratio

Schedules

5 Socio-Economic Aspect 32
Customer 32

Community 33

Employment 33

Environment 34

Government 34
 List of Figures

Table Page

1 Service Process 15

2 Location 17

3 Layout 18

4 Organizational Structure 24
 Chapter 1

Marketing Aspect

This chapter will focus on the marketability of our service and thus refining

the decision on why we chose this kind of service which is Barbershop. Marketing aspects

is considered as the important area, because it describes market situation where the

service can be identified through demand analysis. It will also determine the opportunities

and threats, the target market, market trend, competitive advantage, source of income,

marketing strategy and marketing sales, the competition and the marketing program

which refers to the service, price, place and promotional.

Here you will follow us on our study of the potential market that we will have and

our means of marketing the said service, differing from any types of near competitors.

You will also be capable to know the projected sales of the said products of both in volume

and in peso.

Service Description

Basically a Barbershop is a place where people go to cut their hair and of course

it is the working place of a barber. A Barber is a person whose livelihood is mainly to cut,

dress, groom, style and shave men’s and boy’s hair and some cases ladies/girls who

keep low cut. It is also a place where people go to socialize with other folks in the

neighborhood and also to engage in trendy discussion in the community or country as the

case maybe; before now all those whose business is to take care of people’s hair are
called barber’s but in recent time, the term in only used for people who handles male hair.

Barbershops have long been an enjoyable gathering place for men and boys in search of

quality haircut. Since our business is about a service we now offer different services like,

for Hair: we cut and style: traditional straight razor shaves, and hot towels. The service

that we provide to our customer has a quality in terms of having a good barber and also

it is affordable for every individual.

Target Market

Look Barbershop is in business to service a wide range of customers in Sta.Ana

Avenue, Davao City. As a matter of fact, we are well positioned and equipped to handle

only regular customers like, student and residence near the location. Before choosing a

location for our Look Barbershop, we conducted our feasibility studies and market survey

and we were able to identify those who will benefit greatly from our service offering.

Basically, those who will benefit from our service offering are adults especially male, as

well as children this type of folks cut across various sectors of the economy. Our target

customers can be classified into different groups.

As a matter of fact, those who need the services barber cuts across people of all

walks of lives, ages, cultures, race, religion, and tribes. The fact that we are going to open

our doors to a wide range of customers does not in any way stop us from abiding by the

rules and regulations governing barbershop (The Look Barbershop) industry in Davao

City. Our staffs are well trained to effectively service our customers and give them value

for their monies.

Area of Coverage

The plan or the establishment will be in the streets of corner Sta.ana avenue

Davao City in front of San Pedro College of Davao, we choose this area because it is

accessible to our target market specifically the students and the residence near the area.

And it is also own by Mr. Villanueva our college classmates and close friends, it is

advantage for us to have friends like Mr. Villanueva in order to lessen our rent expense.

This area is particularly near to where all customers live because it is easy for them to

locate the area.

The said area of coverage has more to offer and we will explain a bit more

information about the location of our business, and why we landed on this particular area.

The area is also home to many near iconic spot, one more reason why we choose this

location is for the accessibility of our target market

Table1. Consumer/Customer:
Target Market Total Total Total Percentage Total
Population Person that person that Potential
Surveyed Responded Market
HCDC 2,397 100 40/100 40% 958

SPC 2,800 100 55/100 55% 1,540

RESIDENCES
1,153 50 26/50 52% 599

TOTAL 2,022

3,097*55%

= 1,083
 The total population of our target market is 15,876 based on our research, it

includes the population of Holy Cross of Davao College which has 5,993 total of their

student, since our main market are male, we calculate the average population of each

market into 40% for men and 60% for women. The averages population of male students

of HCDC is 2,397. Same processed are made to the other target market. The total of

population of students in San Pedro college is 7,000 in the average of 2,800 males

students residence market has a total of number of population 2,883 with the average of

1,153 males residence. To sum up all the average of men we got 6,350 male as our main

target market.

There are 250 Respondents that we surveyed for each target market, and there

are 40 respondents who respond our survey for HCDC which give us a good result for

our business. While on the SPC there are 55 respondents who responds the survey and

Residences has 26 respondents who responds also the survey all them are giving a good

result to our proposal business.

And we come up a good total of average that leads us to have a good potential

market. Since, the business is for everyone most especially for men we can

accommodate a person who wants to avail our service. That’s why the team decides that

55% of the total individuals who wants to avail and will be catered resulting to 1,083

Potential Consumers.
Demand and Supply

Table 2 Total Potential Demand:

Total Consump Number of Percenta Potential Total Total
Potentia tion per persons who ge out of Consumer Demand Demand
l Month wants to 237 multiplied out per per
Custom avail the of 81 Week Month
er Service

Once a 86/121 71% 1,083*.71*1 769 3,706

Month
1,083 Twice a 35/121 29% 1,083*.29*2 628 2,512
Month
Total 100% 1,397 6,218
Demand

In determining the potential demand of Look Barbershop, the business proponents

prepare surveyed questionnaire and conducted a survey to the target market. Potential

Demand reflects the willingness of all consumers within a given market to avail our service

.The Look Barbershop giving service widgets in a certain market has a certain Percentage

of market total sales volume. The team spend a thousands of money to help ourselves

on how to predict or forecast a Potential Demand.

The team forecast Potential Demand because it fluctuates and has an unstable

nature. If every business knew exactly how many people would avail the service, the need

to forecast the Potential Demand would evaporate. Our goal remains forecasting future

potential Demand. This becomes more difficult for us when we trying to forecast new
services and the market potential for our services. Whether forecasting potential demand

using clean, accurate, and relevant data.

The table shows the potential demand of service consumption with availing the

service by once a month and twice a month in order to know the capability of the customer

to avail the service. The total demand of consumption of marketers in different places like

Holy Cross of Davao College, San Pedro College, and the Residence of Sta. Ana Avenue

who avail our services for once a month are 3,706 and for twice a month are 2,512 with

a total demand of 6,218.

Table 3 Utilities Expense:

Expenses Monthly Annually

Electricity expenses ₱1,500 ₱18,000

Water expenses ₱250 ₱3,000

Rent expenses ₱5,000 ₱60,000

Total expenses ₱6,750 ₱87,000

The table above shows the utilities expenses of the business that includes the

electricity expenses, water expenses, and rent expenses this implies to measure the

amounts used and then prepare the billing, a business utilities expenses amount used

during the period.

 Table 4 Service Competition:
No. of customers per No. of customers per
Competitors
week month
A 209 836

B 188 752

C 145 580

Total 542 2,168

The table shows the number of customers who avail their services per week and

per month. The competitor A has a total number of 209 customers per week and a total

number of 836 per month, while the competitor B has a total number of 188 customers

per week and a total number of 752 per month, and the competitor C has a total number

of 542 customers per week and a total number 580 per month.

Our competitors has own strength and weaknesses, the competitor A has three

services a including the hair cutting and shaving, in addition of their service is Bare waxing

for men, while the competitor B has also three services in different from competitor A,

which also include hair cutting and shaving, in in addition of their service is hair cutting

with color.

And the competitor C has four services including also the hair cutting and shaving,

in addition of their service are scalp treatment and balm treatment. Their services is

almost the same in our service provided to our customers, the important thing is even we

don’t have there some services like coloring the hair, bare waxing, scalp treatment and
etc. we can still provide the needs our market. This information is based on an interview

with the barber of each business competitor.

Demand and Service Competition

D/S Gap = Demand – Service Competition

=6,218 - 2,168

= 256*.80

=1,215 people who avail the service of regular cut and cut with style per

month.

= 303 people who avail the service regular cut and cut with style per week.

Table 5 Competitor analysis:

Competitor Advantage Disadvantage Pricing
A Bare waxing High cost for their 360
expenses.
B Hair cutting with Giving a low quality 450
color of treatment.
C Scalp and Balm Low quality of 280
treatment product given to
their customer.

The table above is shows of how we observe to our competitors, as you can they
have different advantage and disadvantage and also have different means of services
like the competitor A, one of their service is bare waxing and it’s too expensive to their
market instead if they buy local product and it can cause danger to their customer
because of harmful chemicals. While the competitor B is almost the same to the
competitor A they can also buy local brand of hair coloring product that can be also
harmful to their customer. And the competitor C as well.

Table 6 Pricing Structure:

Hair Style Price

Cut with style ₱50

Regular Cut ₱40

The table above shows the different prices of each different hairstyle. Based on

our survey the average rate of hair cutting is ₱40 to ₱60 and most of our respondents

responds that they much willing to avail the service if the rate of our services is ₱40 to

₱50 that’s why the team decided to make it the said rate. It could be also an advantage

for our business to have an affordable barbing to everyone.

Since the goal of our business is to provide an affordable and accessible service

for every individual. Most of our target market is students and some are residence of the

area, students don’t have enough money to go to salon or any expensive barbershop the

most important for them is to look good and comfortable of their hairs style which provided

in our services offer that’s why we decided give them a lower price of haircutting which is

₱40. The residence of the area also wants to have an affordable barbershop and has a

standard quality of services. The more affordable and quality the services, the more

customers come to the business.

 Table 7 Capital Contribution:
Contributor Amount of Capital

Ms. Chatto ₱40,000

Ms. Diamante ₱40,000

Mr. Dimanahan ₱40,000

Mr. Dugenio ₱40,000

Ms. Escalera ₱40,000

Total Capital ₱200,000

A capital contribution is a contribution of capital, in the form of money or property,

to a business by an owner, partner, or shareholder. Since our business is a partnership,

we obliged to contribute each of us amounted of ₱40,000 with the total of ₱200,000 which

is our capital to build the business.

Table 8 Projected Sales:

GAP Price Month Year

1,215

Cut with style- 595 customers ₱50 ₱29,750 ₱357,000

Regular cut- 620 customers ₱40 ₱24,800 ₱297,600

total ₱54,550 ₱654,600

Projected sales:
In this area it will predict the expected amount of revenue that the Looks

Barbershop will earn in the future, it will help the business to determine whether the sales
is going down or upward. The table shows how to get the projected sales per month and

per year.

To get the projected sales per month, you have to multiply the average customers

and price of the service and then you multiply it into four weeks in order to get the

projected monthly revenue. We come up these computation by our own perspective and

discussion how to calculate each amount which can determined the projected sales per

month and per year.

Marketing Program

Practices of Competitor

The competitor’s way of promoting their shop is through by flyers and online

advertising only, they used that kind of selling techniques to boost their shops popularly.

Online advertising is one of the most effective way to promote the business and also a

great advantage to everybody because it’s free and aside from that it can easily invite

many people and they can post they shop on how it looks like and etc.

And some competitors used celebrity picture posted on their shop with the good

hair style. Most of the markets nowadays are influence by celebrities and famous artist,

that’s why the customer think that they are good barber because they assume that they

can copy the hair style of the celebrity. These are the strategies of our competitors with a

great effort that put them into action to invite people to check out there shop and to avail

their service offer that can boost their income and sales.
Own Marketing Program/Strategies

If we were promoting our business which is “Look Barbershop”, since our main

target market are students and student are more likely to have different gadget and more

influence of social media and internet. The first thing we do is to establish our business

brand though it’s a small, doesn’t mean we don’t have a brand. The personality and values

of our brand represents by using lively colors that trend to the millennial people, the décor

and looks of our shop must be catchy and the looks of our employees dress are more

pleasant than what they expect and the ambiance of the shop must be great than other

shop. And we posted a picture online with a great style of the shop.

All of this is also influence by who are the target market is. We will also focus our

efforts and resource towards advertising on facebook, instagram, twitter and we also give

flyers for those walk in customers. By doing this strategy we can have less expenses for

our advertisement because online advertising is free yet it’s also most effective way to

promote our business.

Table 9 Marketing Expenses:

Expenses Amount per month Amount per year

Uniform of the ₱1,200

employee
Flyers ₱500 ₱6,000
Internet ₱399 ₱4,788
Total ₱11,988
 Marketing expense is an important consideration for all businesses because

marketing is a primary business function that creates a customer for the business. As we

propose this business we need to invest in marketing to increase revenue and accelerate

growth of the business. We ensure that we spend money to best effect.

That’s why the team decided to market our service through internet by posting our

area, design of the shop and important information of the services we offer. The flyers are

also made to promote the services offer of the said business. Uniform of the employees

are include the promotional activity of the business in order to have expose the

appropriate attire of the employee and catchy to the customer.

Chapter 2

The Technical aspect is the discussion of basic operation flow of the business.

The technical aspect is one of the essential of this business this factor respond s to the

technicalities and basic structure of the proposed business. This includes the

equipment, materials, structure plan and also the source of the supplies used in the

proposed business. Business plan, promotion strategies, utilities, facilities, lay out

design and location includes this chapter.

It is also discusses how the services are provided, when these service are to be

provided, how much will it cost to provide the services, where to provide the services

and what equipment to be used. Technical aspects helps us to determine the technical

requirements of our business.

Technical Requirements:

In operating this business, first we came up with the idea on how to manage and

establish the business which is the barbershop in Davao City. The first requirement that

we comply is the mission and vision of the business, because without developing a

mission, vision and value to assist in developing a strategy, an organization cannot

identify, distinguish or explain itself. It is important for an organization because it defines

the business services and customer. Logo and tag lines that will serve as trade mark of

the business.

The supplies and equipment needed for the operation like, razor, scissor,

cleaning brushes, mirrors, hair cutting capes, hair comb, water spray, powder, sterilizing

solution for razor and barber chair. The location of our business in front of San Pedro

College beside the cafeteria, the area of the business is much accessible and

convenient to our target market.

Government Requirements:

In establishing the business we must follow the requirement of the government to

make sure that the business qualifies and keeps it from refined or otherwise penalize for

doing business without proper registration and licensing.

Barangay clearance - This is one of the documents that is in demand in transacting with

government offices and before you can get a mayor’s permit.

Mayor’s permit – also known as Business permit issued by the government agencies

that allow individuals or companies to conduct a business within the government’s

geographical jurisdiction. It is the authorization to start a business issued by the local

government.

Tax Registration Number - Its required under the authority of the internal revenue code

to make, render or file return, statement or documents, shall be supplied with or

assigned at taxpayer identification number (TIN) to be indicated in the return, statement

or document to be filed with Bureau of Internal Revenue, for the proper identification for

tax purposes.

Department of trade and Industry (DTI) Business Name (BN) Registration Certificate-

Obtaining a registration certificate from DTI is also important. This certificate authorizes

you to use your trading name for any business related operation. It also secure your

name from being used by someone else.

Security and Exchange Commission (SEC) – If your business involves two or more

persons and have an agreement to contribute time, money, or property, your business

falls under the corporation or partnership category.

Insurance for the employee:

Table 10 Legal Expenses:

Contribution amount Annual Contribution
Expenses
per Month
Business Permit ₱6,000
Social Security System(SSS) ₱880
Phil-Health ₱200
 The insurance is a form of risk management primarily used to hedge against the

risk of potential financial loss. The insurance has been useful to the business society

also and the uncertainty of business losses is reduced. It is also important because both

human life and business environment are characterized by risk and uncertainty.

The teams are obliged to get insurance to our employee in order to show them

that we invested not just their overall health, but their future. A solid employee benefits

packaged can help to attract and retain the skills because healthier employees mean

reduced healthcare cost to our team.

All business who have employees must register on the following Government

mandated permits.

SSS Employer’s Registrations- Business owners are obliged to register their employees

to SSS to ensure that these employees are covered with insurance benefits, such as

disability, sickness, maternity, death and others in accordance to republic act number

8282.

Phil Health Employer’s Registration- Business owners must register their employees to

PhilHealth, which covers health insurance.

Step by Step Procedure

The Needed Preparing the

The approach
Assessment equipment’s

Receiving the
Avail the service Payment’s payments

Figure1. Introducing and Availing Services Decision Making Process of the

Customers.

In this figure, it shows the stage and steps on how to introduce customers. The

first step is The Approach in which the employee will entertain the customer of what he

desires to avail in our service. The next step of the process is The Needed Assessment

in which the customer asks about the type of Cut he will need and how much does it cost.

This is also the step which the employee shows the nicest design of cut they have. The

third step, preparing the equipment this is the part where the barber prepares the needed

equipment in cutting the customers hair it usually takes about a minute or two.

The fourth step, Avail the service this is the part where the barber start to give the

said service, here the customers is only needed to relax and wait. The fifth step the

payments this is the part where the said service has been done and the customer is only

needed to pay to the cashier, the last step which is the receiving of payments is the part

where the cashier records the said availed service putting it into our record book.
Service Schedule:

Table 11 Service Schedule

Days Schedule

Monday to Saturday

Time Schedule

8:00am to 10:00pm

“LOOK BARBERSHOP”

- Plan the manpower needed.

The day before the operation. - Arrange all the equipment needed

- Clean the shop, mirror and barber

chair.

Figure.2 Service Schedule for daily operations

The table shows the service schedule of Look Barbershop. Our team decided to

operate according to the number of people in the area considering the time. The target

market are more like avail our services offers because of the time schedule that fit to their

available time. Every Monday’s to Saturday our shop will open start at 8:00am until

10:00pm, we don’t have Sunday schedule because it’s family day and rest day of our

employee. The purpose of this working schedule is to inform the market when we

supposed to operate, and proper scheduling ensures important task are covered at

appropriate times.
Labor Requirements:

The source of income of the business is our customers who availing our services

offer.

Owner/Manager – the one who responsible for planning, directing and overseeing the

operations and fiscal health of a business unit, division or an operating unit within an

organization.

Staff (Barber) – must be knowledgeable about barbing , and can provide professional

barbing services like cutting, trimming, and shaving to the valued customers.
 Location Lay-out:

Holy Cross of
San Pedro Hospital San Pedro College Davao College
Mang Inasal

Sta. Ana Avenue

Guzman St. Guerrero St.

Net Central
Residence Inn
Bookstore
Unlad
SHOP
LOOKS BARBER
Location lay-out

Our business location is located on the corner Guzman St. in front of the San Pedro

College Davao City, We landed in this spot for our close friend / classmate Mr. Villanueva

the owner of the place and it would be wise of us to take this opportunity to lower our rent

expenses , this location particularly is a best spot for the business for it is nearby Colleges

like the Holy Cross of Davao where the haircut inspection is very strict .

This kind of policy opens opportunity to our business and we want to take

advantage of it, the place is very accessible for people specially student because the

location of the land are near to place like Computer Shop where most of the student

spent their time playing hours of video games this student usually have taken for granted

when it comes to their Hair that they don’t seem to notice that it slowly getting longer and

when they do notice they usually want to find nearby barbershop for reason’s they want

to avoid the strict policy implemented by the school.

Us students had also experienced this type of crisis especially when you have

reach the maximum penalty of getting your identification card confiscated for so many

time and due to the strict policy, the school will make you volunteer to clean some specific

area in the school which creates more hustle to the student which leads them to cut their

hair in nearby barbershop to avoid this unnecessary inconveniences to their student life.

Shop Lay-out:
20 sq. meters
25 sq. meters

25 sq. meters

The illustration above shows the physical structure of our business which is Look

Barbershop. The area measures 20sqm20

tosq. meters
25sqm. Inside the shop as you open the door
the first thing who will greet you is our polite cashier at the left side of the door. The shop

has six barbers and six barber chairs which is very convenient for it can serve a wide

variety of customers and it can help to fasten the said service for it covers a handful of

customers, and if the said barbers are currently occupied there is a waiting area with our

comfortable couch where you can watch the television while waiting for your turn to avail

the service we offer.

Waste Disposal

As every basic waste management, our waste disposal would also start off with

proper waste segregation. From the recyclables to the compostable to residuals. This is

a good way to sort trashes that can still be useful or not.

There will be designated trash bins for the said kind of garbage. Trash bags will be

put on each bin for easy disposal. General waste is perhaps the most common type of

waste for barber shop, this could everything from clients hairs, used tissue or broken coat

hangers. We will make sure to not overfill our bin as this could be dangerous for the

people who collect it .For this type of waste, we should place in a black bin. The size of

the bin is dependent on how much waste is usually accumulated.

Human hair is considered as a waste material in most parts of the world and its

accumulation in waste streams causes many environmental problems. Thus having it

dispose properly it won’t just help our business to be neater and a pleasant place to cut

your hair but it can help the environment itself.

Quality Control
 The output of our service is the very key of this business proposal. Hence, we

would need people with sufficient knowledge and solid experience to check all of the

equipment. But we believe that aside from corrective actions, preventive measurements

are also necessary to avoid erroneous products. We also make sure that the people are

aware of everything that is happening and each individual hast at least an average idea

of how other task are done to make sure that the equipment has good quality and the

service is correctly done. This would prevent repetition of work and wasted resources and

efforts. This would also definitely result to delivering services and products accurately and

promptly.

Table 12 total production cost:

Service Daily Service Weekly Service Monthly Annually
description
Cut with style ₱50 ₱350 ₱1,400 ₱16,800
Regular ₱40 ₱280 ₱1,120 ₱13,440
Total ₱30,240

The tables above shows that a cut with style would cost ₱50 daily multiply it by 7

cause the week has seven days the result would be ₱350 and then multiply it by 4

cause a month has four weeks it would give us ₱1,400 and lastly multiply it by 12 cause

a year has twelve months the results would be ₱16,800 same process are made with

the regular cut add those up we will have ₱30,240 service cost per year.

Chapter3
 Organization and Management Aspect

This chapter tackles about the legal form of business which proves the legality of

our business and the basic consideration in forming the organization. The process of

organizing, planning, leading and controlling resources within an entity with the overall

aim of achieving its objectives. The organizational management of a business needs to

be able to make decisions and resolve issues in order to be both effective and beneficial.

This chapter also show the form of business organization, organizational structure,

personnel needed and job specifications and qualifications of the employees for the

operation of the business. Management aspect is one of the important aspect in

establishing a business. To achieve this management must be able to plan all activities

to become productive and competitive.

Personnel’s duties and responsibilities as well as the salary structures will be

discussed in this chapter. It also includes the pre-operating activities and the time table.

Legal Form of Business

When you start a small business, you have choices to make. One of the most

important is which organization form to take and each have their positives and negatives.

So, we chose to be a partnership in this business to improve our access to capital and

we as partners share in the profits and risks of the business.

More capacity is more invested people to spread out management duties and more

expertise will bring different experience and skills. We have knowledge about this
particular business as we formulate the plan and brainstorming until we met our needs

and wants as an owner of the business. We can share the responsibility of running our

business and this will allow us to make the most of our abilities rather than splitting the

management and taking an equal share of each business task and more brains that can

be picked for business ideas and for the solving of problems that the business encounters.

The business is fairly easy to manage, and decisions can be made quickly without a lot

of bureaucracy.

Organizational Chart

Owner/Manager/cashier

Staff/Barber

Figure3. Organizational Chart

The above figure shows the organizational chart of “Look Barbershop”. The

authority and responsibilities in decision making and implementation of rules are

centralized to the managers which also the owner and cashier of the business.

The authority starts from the partner/managers and directly associated to the

personnel under the lower level of organization.

Our team will consist of the owner and six employees. On the top floor, there will

be six barbers. It will be divided into two shifts which is the morning shift and the evening
shift. On the morning shift there are three barbers from 8:00 am to 4:00pm and for the

evening shift starts at 3:00pm to 11:00pm, each barbers will consume 8 hours per shift.

Table 13 Qualification and Responsibility of the employee/barbers:

position Qualification Responsibility Salary

-Financial -Can run the

Management business from
-Leadership hiring staff to none
Owner/Manager -Project arranging financing.
and cashier management and -Reviewing sales
planning reports and
- honesty and financials
integrity
-Does arm/hand -Assist customers
control and well
stability. -Good
-ability to stand for communication ₱8,000 per
long period of time. skills month plus 5%
Staff/barbers -has ability to grip - can give a great commission for
and manipulate service to the every client or
tools. customer. customers.
-has ability to grasp -must be
and manipulate consistent.
very small object.

Selection of personnel is very important in our business because of the service

and performance provided by the employee must be accurate and consistent. The

success of the organization depends upon the quality of personnel selected for job.

Proper selection of personnel reduces personnel problems in the business. The

qualification and responsibility given to the barbers are one the most effective way and

great guidance for their daily duties. Every personnel can have a personalize service like

talking to the customer it can be a good idea for barber because not only should the facility
be beautiful and the place should also include the attitudes of the personnel for the

betterment of the business.

Service Equipment

Table14 Machineries and Equipment:

Machineries and
Unit Cost Quantity Total
Equipment

Razor ₱550 6 ₱3,300

Scissors ₱140 6 ₱840

Barber chair ₱1,200 6 ₱7,200

Comb ₱10 6 ₱60

Hair cutting capes ₱50 6 ₱300

Mirrors ₱1,500 2 ₱3,000

Television ₱1,500 1 ₱1,500

Electicfun ₱850 2 ₱1,700

Hair brush ₱130 6 ₱780

Total ₱5,930 ₱18,680

This equipment is important in our business-like razors, scissors, barber chair,

comb, hair cutting capes, mirror and brush those are basic equipment needs of our barber

for their daily operation. Having a good quality of equipment and it also reflects the work

of the employee which is the great cutting and styling the hair of the customers. Quality
is critical to satisfying your customers and retaining their loyalty so they continue to return

to your barbershop with a smile in their face.

The television is also important in order to entertained the customer while waiting

for their turn, and also the electric fan that gives fresh air to the customer and avoid hot

feeling from the sun.

Gant chart:

Months

Activities 1 2 3 4 5 6 7 8

Preparation of the Feasibility Study

Find Location

Permit Process

Renovate Building

Installation of Power and Water

Purchase Furniture

Placing and Arranging the Tables

Hire Employees

Training Employees

Launching of Business

These are the specific activities in our business which is to scout the location first

within one month and second month followed up the requirements complying the

business permits needed in our business and it took 2 months to complete those

requirements. After we spotted the perfect location, we started to renovate the building
and it took 3 months to finish it. In the same month we are going to installation the power

and water supply and then we purchasing a furniture that our customers are comfortable

to seat while waiting. A head of month we are going to placing and arranging the table.

During the last month while the building is renovating, we started finding and hiring

employees to have their own positions once the building is done. After the entire building

was done renovated and the employees being hired, we purchased the needed

equipment for Look Barbershop business and arranged it inside to be ready and open our

business for the first time.