Executive Summary

Henry Hardware Stores, Inc., located in San Rafael Lane, Poblacion, Abra

de Ilog-Occidental Mindoro, is a regular hardware store. We were able to

lease a facility that is large enough (a facility of 4,000 square feet) to fit into

the design of the form of regular hardware store we plan to launch and the

facility is located in a corner piece along a major road near one of Abra de

Ilog's largest residential estates, Occidental Mindoro.

Henry Hardware Stores, Inc. will retail items from various suppliers in the

Philippines and abroad, such as hardware, equipment, plumbing and

electrical supplies, lawn, garden and farm supplies, paint and lumber and

other construction materials. In and around Abra de Ilog-Occidental Mindoro,

we are expected to serve a large range of customers.

We are aware that there are many large and small hardware store chains

around Abra de Ilog-Occidental Mindoro, which is why we invested time and

money undertaking a detailed feasibility study and market survey to be well

placed to compete favorably with all our rivals.

For our customers, we have an online service alternative, and our outlet is

well protected with multiple option payments. Henry Hardware Stores, Inc. will

ensure that first class care is provided to all our customers if they visit our

shop.

We have a program that allows us to manage a one-on-one relationship

with our customers, no matter how big our customer base can grow. We will

ensure that we include our clients in the collection of brands that will be in our

store and also when making those business decisions that directly impact

them.
 Henry Hardware Stores, Inc. will show its commitment to sustainability at

all times, both personally and as a corporation, by actively engaging in our

communities and, where possible, incorporating sustainable business

practices.

By addressing the needs of our consumers specifically and absolutely

while they patronize our goods, we will ensure that we keep ourselves

accountable to the highest standards. Henry Hardware Stores, Inc. is a family

company owned by Henry L. Banaag Jr. and members of his immediate

family.

Henry L. Banaag Jr. is currently in his third year of a Bachelor of Science

in Accountancy degree. Although the company is starting out in Abra de Ilog-

Occidental Mindoro with only one outlet, there is a proposal to open other

outlets in major cities in the Philippines.

Our Product Offering

Henry Hardware Stores, Inc. serves a wide variety of customers in the

hardware store industry and, of course, makes money, which is why we would

go all the way to make a wide range of hardware and other related items

available from top manufacturing brands in the Philippines and other countries

around the world.

Our product offerings are listed below;

 Retailing hardware

 Retailing tools and equipment

 Retailing plumbing fixtures and fittings

 Retailing electrical supplies

 Retailing paint and supplies

 Retailing garden products and equipment

Our Mission and Vision Statement

 In Abra de Ilog, Occidental Mindoro and other main cities in the

Philippines, our vision is to become one of the leading brands in the

hardware store industry.

 Our goal is to create a world-class hardware store company that will make

a wide range of hardware and other related items available to residents of

Abra de Ilog-Occidental Mindoro and other main cities in the Philippines at

affordable prices from top manufacturing brands, where we plan to open

hardware chains.

Our Business Structure

Henry Hardware Stores, Inc. does not plan to start a hardware retail store

business like the normal street corner business; our aim is to create a regular

retail store outlet in Abra de Ilog-Occidental Mindoro to start a hardware retail

store business.

Despite the fact that, like other firms, our equipment retail store trade

might not be as big as Pro Hardware, but it will ensure that we put the right

systems in place to sustain the kind of growth we are developing.

We will ensure that we employ trained, real, customer-centric individuals

who are prepared to work to help us create a profitable company that will

benefit all stakeholders.

As a matter of fact, all our senior management staff will be supported with

a profit-sharing agreement and it will be dependent on their success for a

period of ten years or more. In view of that, to fill the following positions, we

have agreed to employ trained and capable hands;

 Chief Executive Officer (Owner)

 Store Manager

 Human Resources and Amin Manager

 Merchandize Manager

 Sales and Marketing Manager

 Information Technologist

 Accountants / Cashiers (Owner)

 Sales Agents / Customer Services Executive

 Cleaners

Job Roles and Responsibilities

Chief Executive Officer – CEO:

 Grows the efficacy of management by hiring, recruiting, directing, training,

coaching, counseling, and disciplining managers; communicating

principles, plans, and goals; assigning accountability; organizing,

recording, and assessing work outcomes; creating incentives; creating an

environment for providing knowledge and opinions; providing

opportunities for education.

 Responsible for price setting and signing of company agreements

 Accountable for giving direction to the company

 Constructs, interconnects, and executes the vision, mission, and overall

direction of the organization, i.e. leading the development and execution

of the strategy of the overall organization.

 Accountable on behalf of the organization for signing checks and

documents

 Evaluates the organization's performance

 Admin and HR Manager

 Responsible for supervising the organization's smooth operation of HR

and administrative activities

 Maintains office supplies by inventory control; placement and expeditation

of orders; evaluation of new items.

 Ensures equipment service by meeting specifications for preventive

maintenance; calling for repairs.

 Defines work positions for recruiting and interview process management.

 Carries out employee induction for members of the new team.

 Responsible for employee preparation, appraisal and evaluation.

 Accountable for coordinating travel, meetings and appointments.

 Supervises the smooth operation of everyday business operations in the

workplace.

Store Manager:

 Responsible for the supervision of routine tasks in the shop.

 Guarantees that correct hardware and other associated goods records are

maintained and that products do not run out of the warehouse.

 Ensures that the store facility is in top shape and that items are organized

correctly and easy to find.

 Interfaces with providers from third parties.

 Controls inventory of hardware distribution and supply chain.

 Supervises the staff on the sales floor for hardware.

 Merchandise Manager

 Manages supplier partnerships, market tours, and the continued

education and growth of the purchasing teams of the organizations

 Helps to ensure consistent hardware, equipment, plumbing and electrical

supplies, lawn, garden and farm supplies, paint and sundries, and lumber

and other construction materials et al are purchased and retailed at good

prices from various suppliers to ensure that we make good profit

 Accountable for sales preparation, inventory tracking, merchandise

selection, and distributor writing and pricing orders.

 Sales and Marketing Manager

 Manages external analysis and coordinates all internal information

sources to maintain the best clients in companies and draw new ones.

 Model demographic data and analyze the volumes of transactional data

produced by buying customers

 Identifies, prioritizes and reaches new partners and opportunities for

business et al.

 Identifies prospects for growth; follows up on leads and connections for

development; participates in project structuring and financing; ensures

completion of development projects.

 Responsible for tracking implementation, fighting for the interests of the

consumer and engaging with customers

 Creates, introduces and assesses new strategies to increase revenues

 Record all interaction with the customer and data

 Represents the organisation in strategic meetings

 Allows the company to improve revenue and growth

 Information Technologist

 Maintains the website of the organisation

 Manages the eCommerce component of the company

 Responsible for the organization's computer program and hardware

installation and maintenance

 Controls information logistics and supply chain, web servers, software for

e-commerce and POS (point of sale) systems

 Controls CCTVV of the company

 Handles all other tasks relevant to technology and IT.

Accountant/Cashier:

 Responsible for preparing the organization's accounting reports, budgets

and financial statements

 Offers financial analysis, development budgets and accounting reports to

management; analyzes financial viability for the most challenging projects

proposed; performs market research to predict patterns and business

conditions.

 In charge of the study of financial forecasts and risks.

 Performs cash management, accounting for general ledgers and financial

statements

 Responsible for the development and maintenance of financial systems

and policies

 Responsible for handling payrolls

 Maintains consistency with tax laws

 Manages all corporate financial transactions

 Serve as the organization's internal auditor

 Client Service Executive

 Ensures that all customer communications (e-mail, walk-in center, SMS or

telephone) give consumers the highest degree of personalized customer

 service experience.

 Uses any opportunity to create consumer interest in the company's goods

and services through contact with customers on the phone.

 Regularly keeps up-to-date on any new information on the products,

advertising campaigns, etc. of the organizations to ensure that consumers

receive reliable and useful information while making inquiries.

 Find out the needs of the consumer, suggest, pick and help locate the

right products, identify the advantages and benefits of a product.

 Make recommendations and promote product purchases

 Provides details on warranties, production requirements, merchandise

care and maintenance, and distribution options

 Purchases of bags or containers

Cleaners:

 Responsible at all times for washing all the items and the store building.

 Guarantees that stocks of toiletries and equipment do not run out.

 Deals with any other responsibility delegated by the store manager.

SWOT Analysis

Our aim of starting only one outlet in our hardware retail store in Abra de

Ilog-Occidental Mindoro is to test the company for a period of 3 to 5 years to

see whether we can spend more cash, grow the company and then open

other outlets across major cities in Occidental Mindoro and key cities in the

Philippines.

We are well aware that there are many hardware retail stores all over and

even in the same place where we plan to locate ours, which is why we are

following the proper process of setting up a business.

 We know that we will be able to position our company to optimize our

strength, exploit the opportunities that will be open to us, minimize our risks

and be prepared to meet our threats if a proper SWOT analysis is performed

for our company.

To help us perform a comprehensive SWOT analysis and to help us

develop a business model that will help us meet our business goals and

objectives, Henry Hardware Stores, Inc. used the services of a business

analyst with retail bias. Below is the description for Henry Hardware Stores,

Inc. of the SWOT study carried out;

Strength:

Some of our main strengths are the ability to manage stock on hand, an

experienced workforce and a loyal customer base. Our location, our business

model, various payment options, a wide variety of hardware and other related

items from different manufacturing brands and our excellent customer service

culture will certainly count as a plus for Henry Hardware Stores, Inc.

Weakness:

The fact that we are a new hardware retail store outlet in Abra de Ilog-

Occidental Mindoro is a big limitation that can count against us and we do not

have the financial capacity to compete with multi-million dollar hardware retail

store outlets like other companies when it comes to retailing at rock bottom

prices.

Opportunities:

Occidental Mindoro provides us with endless opportunities to market our

hardware and other related items to a large number of people because we are

going to run our hardware retail store in a corner part property along a major
road near one of the largest residential estates in Abra de Ilog.

We have been able to perform comprehensive feasibility studies and

consumer surveys, and when they visit our hardware store stores, we know

what our future customers will be looking for.

Threat:

One of the major challenges we are likely to face, just like every other

business, is the economic downturn. The arrival of a new hardware store in

the same place where ours is located is another challenge that will possibly

face us. Unfavorable government policies can, therefore, also pose a threat to

companies such as ours.

MARKET ANALYSIS

 Market Trends

Recent developments in the hardware industry indicate that both industry

sales and profit growth have been marginally dampened by external

competition. Hardware stores have changed business models to cope with

increased external competition and online retailers and bigger home

improvement stores will continue to challenge them. Experts predict that the

hardware store industry is expected to benefit from rising global economic

conditions in 2020.

In the last 20 years, the landscape of hardware retail stores has seen

immense changes; it has evolved from smaller shops to a more integrated

and far-reaching venture. The advent of the franchise and online store makes

it possible for a hardware retailer to expand well beyond the regions where his

physical store is situated to a wider market.

Our Target Market

 Those who patronize hardware stores cut with the financial capital of all

genders over 18 years, and who own an apartment or office/company are also

all encompassing the target market for the hardware store business. In

essence, it is not possible to limit your target market to only a group of people,

but to all those who live in and around our shop.

In view of that, our hardware retail store has been placed to serve the

residents of San Rafael Lane, Poblacion, Abra de Ilog-Occidental Mindoro

and every other location where our hardware retail stores will be located.

Our market analysis and feasibility studies have been conducted and we

have ideas about what our target market will expect from us. We are in the

business of supplying to the following classes of individuals and corporate

organizations a large range of hardware and other related products;

 Owners, developers and contractors of real estate

 The Government (Public works department)

 Schools (High Schools, Colleges and Universities)

 Hotels

 Sport Installations

 Individuals and families

Competitive Advantage

A close analysis of the hardware store industry shows that over the last

decade, the market has become even more highly competitive. As a matter of

fact, if you have to succeed in this business, you must be extremely

innovative, customer-centric and constructive.

We are mindful of the strong competition and we are well prepared to

compete favorably in Abra de Ilog-Occidental Mindoro and throughout the

Philippines with other leading stores. Henry Hardware Stores, Inc. is

introducing a regular one-stop hardware store that will actually become the

favorite option of Abra de Ilog residents-Occidental Mindoro and every other

location where our stores will be opened.

One thing is certain; we will ensure at all times that we have a wide variety

of hardware and other related items available in our store from leading

manufacturers. Visiting our shop and not finding the sort of hardware they are

looking for would be challenging for customers. As a strategic advantage for

us, our outstanding customer service philosophy, online shop, numerous

payment options and highly secured facility would serve.

Finally, our workers will be well looked after, and their benefits plan will be

among the best in our business category, ensuring that they will be more than

happy to develop the company with us and help achieve our set targets and

all our goals and objectives. We'll also give freelance sales agents decent

working conditions and commissions that we'll hire from time to time.

SALES AND MARKETING STRATEGY

 Sources of Income

Henry Hardware Stores, Inc. is in the business of supplying a wide variety

of hardware and other related items to Occidental Mindoro residents of Abra

de Ilog. To maximize profit, we are in the hardware store industry and we will

go all the way out to ensure that we accomplish or achieve company goals

and objectives.

By selling the following products, Henry Hardware Stores, Inc. would generate

income;

 Hardware Retailing
 Instruments and supplies retailing

 Retailing fixtures and fittings for plumbing

 Electrical equipment retailing

 Paint and materials retailing

 Garden goods and supplies retailing

Sales Forecast

If your store is well stocked with different types of hardware and centrally

located when it comes to hardware retail stores, you will always draw cum

sales from consumers and that will certainly lead to an increase in revenue

generation for the company.

In Abra de Ilog-Occidental Mindoro, we are well placed to take on the

available market and we are very confident that we can achieve our set goal

of generating adequate revenue from the first six months of operation and

increasing the company and our customer base.

We were able to evaluate the hardware retail market objectively, assess

our prospects in the industry, and we were able to come up with the following

revenue prediction. The sales forecasts are based on field data collected and

some assumptions that are specific to start-ups in Abra de Ilog-Occidental

Mindoro.

Below are the revenue forecasts for Henry Hardware Stores, Inc. based

on the position of our company and other variables as it relates to startups in

the Philippines for hardware retail;

First Fiscal Year: 250,000

Second Fiscal Year: 450,000

Third Fiscal Year: 750,000

 This prediction was carried out on the basis of what can be accomplished

in the sector and with the presumption that there will be no substantial

economic meltdown and that there will be no big competitor in our market

room. Please notice that the projection above may be lower and could be

higher at the same time.

 Marketing Strategy and Sales Strategy

In order for us to enter the available market, we conducted a

comprehensive market study and feasibility studies before selecting a site for

Henry Hardware Stores, Inc. We have extensive statistics and information that

we have been able to use to organize our organization to attract the amount

of customers we want to attract each time.

To help us build marketing strategies that will help us achieve our

business goal of winning a greater percentage of the available market in Abra

de Ilog-Occidental Mindoro, we recruited experts who have a strong

understanding of the hardware retail industry.

In order to continue to be in business and expand, we must continue to

sell the hardware and other related items that are available in our shop, which

is why we will all go out to motivate or deliver to the sales and marketing

team. In short, the following sales and marketing strategy will be introduced

by Henry Hardware Stores, Inc. to win customers over;

 Open our shop with a party for all in a grand style.

 Launch our hardware store by sending introductory letters to people,

companies and other key stakeholders in Abra de Ilog-Occidental Mindoro

alongside our brochure.

 Ensure that at all times we have a large range of hardware and other
 related items from various brands.

 Use attractive hand bills to generate awareness and to give our store

direction as well.

 Place our signage/flexi banners around Abra de Ilog-Occidental Mindoro

at strategic locations

 Place our greeters to welcome prospective clients and direct them.

 Creating a loyalty package that will allow us to reward our daily clients.

 In order to build visibility for our hardware retail store, engage in

roadshows throughout our community.

 List our company and goods in yellow pages ads (local directories).

 Leverage to advertise our company on the internet.

 Participate in direct marketing and distribution

 Encourage the use of ads for Word of Mouth (referrals).

 Join local trade chambers and industries in networking and selling our

goods.

Publicity and Advertising Strategy

Given the fact that our hardware retail store is well positioned, we will

continue to improve the company's ads. To support our hardware retail store,

we are going to explore all possible means.

Henry Hardware Stores, Inc. has a long-term plan to open outlets in

different locations across Occidental Mindoro and major cities in the

Philippines, which is why we would purposefully develop our brand before

venturing out to be well accepted in Abra de Ilog-Occidental Mindoro.

As a matter of fact, our publicity and advertising strategy is not just to win

consumers over, but to communicate our brand effectively. Here are the

networks we plan to use to advertise and support Henry Hardware Stores,

Inc.;

 Place advertisements on newspapers, radio and TV stations depending

on the neighborhood.

 Encourage our loyal clients to use word of mouth ads.

 Use sites such as YouTube, Instagram, Facebook, Twitter, LinkedIn,

Snapchat, Google+ and other platforms on the internet and social media

to promote our business.

 Make sure our banners and billboards are placed in strategic locations all

around Abra de Ilog-Occidental Mindoro.

 Distribute our fliers and handbills in and around our community in the

target areas.

 Promote our hardware retail store company on our official website and

use tactics to help us get visitors to the site.

 Brand all our official cars and trucks and ensure that our branded shirt or

cap is worn at regular intervals by all our team members and leadership

staff.

Our Pricing Strategy

Pricing is one of the main factors that leverage hardware retail stores,

apart from efficiency, it is common for customers to go to locations where they

can get cheaper rates for hardware and other related items.

In view of that, our prices will adhere to what can be obtained in the
market, but we will ensure that our goods are sold marginally below the

average price of different hardware stores in the Philippines within the first 6

to 12 months. We have put in place business plans for a span of 6 months

that will help us run on low profits; it is a way to inspire people to buy into our

brand.

 Payment Options

All inclusive is the payment policy embraced by Henry Hardware Stores,

Inc. since we are very aware that various customers prefer different payment

options as it suits them, but at the same time we will ensure that we comply

with the Philippines' financial rules and regulations.

Here are the payment options that will be made available to its clients by

Henry Hardware Stores, Inc.;

 Payment by bank transfer

 Cash payment

 Payment by credit cards/Selling Point Machines (POS Machines)

 Payment by online bank transfer

 Payment through check

 Payment via mobile transfer of cash

 Payment via bank draft

In view of the above, we have chosen banking platforms that will allow our

customers to pay without any stress on their part for our hardware and other

related purchases. On our website, our bank account numbers and

advertising materials will be made available to consumers who may want to

deposit cash or move our goods online.

Startup Expenditure (Budget)

 We have been able to come up with a comprehensive budget from our

market survey and feasibility studies to achieve our goal of establishing a

regular hardware store in Abra de Ilog-Occidental Mindoro, and here are the

main areas where we will invest our start-up capital;

 The total company registration fee in the Philippines-750.

 3,300. Legal costs for the purchase of licenses and permits and

accounting facilities (software, P.O.S computers and other software).

 Publicity promotion costs of 3,500 for the grand opening of Henry

Hardware Stores, Inc. and flyer printing (2,000 flyers at 0.04 per copy) for

a total of 3,580.

 The expense of employing a company consultant is 2,500.

 Insurance (general liability, benefits for staff and property loss) coverage

at a net premium of 2,400.

 The expense of paying rent for 12 months at 1.76 per square foot, for a

total of 105,600.

 The cost of shop remodeling (rack and shelf construction) is 20,000.

 Other start-up costs, including stationery (500) and telephone and service

deposits (2,500).

 Operational expense for the first 3 months (employee wages, bill

payments et al)-60,000

 The start-up inventory bill of 350,000

 The cost of counter area equipment: 9,500

 Store equipment costs (cash register, protection, ventilation, signage)-

13,750
 The purchase and installation cost of CCTVs: 10,000

 The cost of purchasing office furniture and appliances (computers,

printers, telephones, televisions, sound systems, tables and chairs, etc.) is

4,000.

 The price of launching a website: 600

 The price for our opening party: 7,000

 Miscellaneous: 10,000

To successfully set up a regular hardware retail store in Abra de Ilog-

Occidental Mindoro, we will need an estimate of 750,000.

Generating Funds/Startup Capital for Henry Hardware Stores, Inc.

Henry Hardware Stores, Inc. is a registered private corporation owned

and funded solely by Henry L. Banaag Jr. and members of his immediate

family. They do not wish to accept any external business partner, which is

why he has agreed to limit the start-up capital sourcing to three key sources.

These are the places that our start-up capital is intended to generate;

 Generate part of the start-up funds from private savings

 Outlet for family members and friends' soft loans

 Apply for loan from my Bank

We have been able to produce around 250,000 (200,000 personal

savings and 50,000 soft loans from family members) and we are in the final

stages of our bank securing a 500,000 loan facility. All papers and paperwork

have been signed and sent, the loan has been approved and the balance will

be credited to our account some time from now.

Sustainability and Expansion Strategy

The future of a company lies in the number of loyal clients they have, their
employees' skill and knowledge, their investment strategies and the structure

of the company. If a company lacks any of these variables, then it will not be

too long before the company closes the store.

One of our key goals of beginning Henry Hardware Stores, Inc. is to

create a company that can thrive from its own cash flow without injecting

external financing until the company is officially operating.

We know that one of the ways to gain acceptance and win over customers

is to sell our wide range of items such as hardware, instruments, plumbing

and electrical supplies, lawn, garden and farm supplies, paint and sundries,

and lumber and other building materials et al from various manufacturers

(brands) a little cheaper than what can be bought on the market.

Henry Hardware Stores, Inc. will ensure that the correct foundation,

structures and processes are placed in place to ensure the well-being of our

workers. The corporate culture of our company is built to propel our company

to greater heights and our workforce's preparation and retraining is at the top

burner.

We know that if this is put in place, we will be able to recruit and keep the

best hands we can get in the industry successfully; they will be more

committed to helping us develop our dream company.

Check List/Milestone

 Availability Search for company name: Completed

 Company Registration: Completed

 Corporate bank accounts opening: Completed

 Machines · Securing Point of Sales (POS): completed

 Mobile Money Accounts opening: completed

 Online payment systems opening: Completed

 Application and Tax Payer ID Obtaining: In Progress

 Business license and permit application: Completed

 Business Insurance Purchase: Completed

 Facility leasing and shop remodeling: In Progress

 Execution of feasibility studies: completed

 Capital generation from family members: completed

 Loan applications from the bank: In progress

 Business plan writing: Done

 Drafting of the Handbook for Employees: completed

 Contract papers and other related legal documents drafted: In progress

 Design of the logo of the company: completed

 Graphic design and advertising content printing: In progress

 Recruitment of employees: In Progress

 Buying the requisite furniture, racks, shelves, computers, electronic

equipment, office equipment and CCTV: In progress

 Official Company Website Creation: In Progress

 Creating visibility of the organization online and in the community: In

progress

 Arrangement for Health and Safety and Fire Safety (License): Protected

 Planning the opening party: In Progress

 Compilation of our product list available in our shop: Completed

 Establishing commercial ties with suppliers-hardware producers and

suppliers and other relevant products: In Progress

Henry
Hardware
Store
Business Plan

Henry
Hardware
Store
Business Plan
Submitted by: Henry L. Banaag Jr.