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SOFTWOODS
Softwoods
A Business Plan
In Partial Fulfillment of the Requirements in Business Correspondence
Gieanne Prudence G. Venculado
III BSA Meekness
December 16, 2020
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SOFTWOODS
TABLE OF CONTENTS
Executive Summary…………………………………………………………………3
Company Overview…………………………………………………………………5
Products and Services……………………………………………………………….7
Market Analysis…………………………………………………………………......8
Strategy and Implementation………………………………………………………..10
Management Team…………………………………………………………………..11
Financial Plan………………………………………………………………………..12
Appendices…………………………………………………………………………..17
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SOFTWOODS
EXECUTIVE SUMMARY
Softwoods brings three (3) years of experience in manufacturing and retailing furniture
products with the commitment to produce quality products and implement positive change.
Softwoods has a quality system designed for the home, office and school spaces, with the emphasis
on ensuring consistent product quality and continuous improvement. This innovative approach
enables them to significantly increase efficiency, adapting latest technology and remain
competitive in today’s ever-changing marketplace.
A. Company Overview
Softwoods offers suitable and selectable options of high quality and durable furniture. In
line with their tagline: “your imagination, our creation”, they assure to provide and create the
furniture that their client’s desire. With regards to every amount paid, their product’s quality and
affordability will be met.
Mission
We are committed to provide better standard and give value for money. We strive to offer
high quality products and mainly focus on durability, Continuous improvement in technology and
designs. We have a high concern in developing skills and knowledge in woodworking to our
industry employees.
Vision
Softwoods is the most preferred manufacturer and retailer of furniture; with the highest
user base that provides world class quality at affordable prices.
Goals and Objectives
•
•
•
•
•
Maintaining the highest quality and be a leading manufacturer in the industry.
Provide employment opportunities and to develop skills and knowledge in
woodworking to our employees.
To maintain technological leadership through continues effort to update product
technology and manufacturing method.
To maintain employment and safeguard the interest of labors.
To exploit and utilize the plenty availability of raw material efficiently and
effectively.
Core Values
Responsibility, quality and passion are the key to achieve a sense of fulfillment each day.
SOFTWOODS
B. Products and Services
Softwoods’ products are classified under the following three (3) main categories:
1. Home furniture
2. Office furniture
3. School furniture
At Softwoods, they believe that quality and safety matter the most. They take the safety of
our customers very seriously, which is why they choose products which are composed of highquality materials that are assembled and designed by their very own team. They offer collections
that fit any personality through the emphasis that wood works in different ways.
C. Market Analysis
Softwoods directly or indirectly competes with all furniture providers nearby our store that
offer upscale and quality furniture. Competition will come from specialty furniture stores and
furniture chain stores. Direct competition will come from companies offering locally manufactured
furnishings and décor similar to Softwoods.
Majority of the residents are economically active (15 to 64 years old), in which they are
considered as potential clients that may need to renovate and design their home, school, and office
spaces. These group of people will most likely be beneficial to the business’ offerings.
D. Strategy and Implementation
An ever-growing change in technology should be complied with in order to compromise
with the clients. Softwoods created a professionally built website (www.softwoods.com.ph) that
will allow the clients to browse the product offerings. advanced feature where the client can upload
a neat picture of their place and apply the products they want to purchase. Through this, they can
visualize the place virtually with attached furniture they desire. The item can be delivered doorto-door once placed and paid. Through deliveries, the safety of the furniture and clients are
ensured.
E. Management Team
In order to launch the store, Softwoods need to hire the following personnel:
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SOFTWOODS
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•
•
•
•
•
•
•
Marketing manager (1)
Manufacturing manager (1)
Logistics manager (1)
Marketing staff (2 to start)
Manufacturing staff (4 to start)
Logistics staff (2 to start)
Finance staff (1 to start)
Operational staff (1 to start)
F. Financial Plan
Below are the initial financial goals for the company:
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•
•
Obtain an operating line of credit from a financial institution.
Finance growth through retained earnings.
Operate on a 25-30% gross margin.
The projected revenues for the first year is to exceed Php 5,000,000, incurring a loss of at
least 2.5%. The business will show an increase in profits of at least 3% to 5% for the next two (2)
years, with projected revenues of Php 10,500,000.
The start-up funding of Php 10,000,000 will be invested by the owner. The goal is to fund the
growth of the business from its earnings.
COMPANY OVERVIEW
Softwoods located at Mabical, Floridablanca, Pampanga, Philippines, is a new, furniture
manufacturing and retail store focusing on home, school and office furnishings and décor. Our
products will be primarily from local manufacturers, highlighting the talent and high design sense
of area businesses and craftspeople.
Softwoods was founded by Gieanne Prudence G. Venculado. While the founder has got
interested in the furniture business for some time, it was in June 2017 that she decided to launch
SOFTWOODS
Softwoods. Specifically, during her childhood, Ms. Venculado lived in a house mostly occupied
by wood-based furniture. As she grew up, she saw a furniture store in Metro Manila, an
independently-owned furniture store that enjoyed tremendous success by focusing on locally-made
products. After that, she fully understood that a similar business would enjoy significant success
in his hometown.
Specifically, the customer demographics and competitive situations in Metro Manila and
Pampanga were so similar that she knew it would work. Furthermore, after surveying the local
population, this theory was proven.
After surveying the local customer base, Ms. Venculado incorporated Softwoods as GP
Corporation on June 2017.
Company’s legal structure and ownership
Softwoods is under the GP Corporation. A corporate structure is perhaps the most
advantageous way to start a business because the corporation exists as a separate entity. In general,
a corporation is created when it is incorporated by a group of shareholders who have ownership of
the corporation, represented by their holding of common stock, to pursue a common goal. A
corporation's goals can be for-profit or not, as with charities. However, the vast majority of
corporations aim to provide a return for its shareholders. Shareholders, as owners of a percentage
of the corporation, are only responsible for the payment of their shares to the company's treasury
upon issuance.
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SOFTWOODS
PRODUCT AND SERVICES
Below is Softwoods product list. As stated, all items are classified under the following
three (3) main categories:
1. Home furniture
2. Office furniture
3. School furniture
HOME
OFFICE
SCHOOL

Dining table

Desk

School chair

Dining chair

Office chair

Student’s desk

Living room chair

Filing cabinet

School table

Couch

Bookcase

Teacher’s desk

Coffee table

Sofa

Classroom storage

Shelves

Meeting table and

Book carts

Cabinetry

Bed

Bed-side table

Stools
chairs
The store will feature a display of a specific manufacturer’s work in our front area of our
store, along with information about the “story” of that furniture. In any cases where the client is
undecided as to what furniture design will suit their place, an interior design will be present to
suggest. Transactions will be completed by skilled sales people on the floor of the store, who will
offer a high level of customer service. Delivery of large items will be offered to customers. To
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SOFTWOODS
develop an ongoing customer relationship, free repairs for damages covered by the warranty life
will be provided.
MARKET ANALYSIS
Industry Analysis
Softwoods directly or indirectly competes with all furniture providers nearby our store that
offer upscale and quality furniture. Competition will come from specialty furniture stores and
furniture chain stores. Direct competition will come from companies offering locally manufactured
furnishings and décor similar to Softwoods.
Customer Analysis
Softwoods will serve the residents of Mabical, Floridablanca, Pampanga and the
immediately surrounding areas.
AGE GROUP
14 and below
15 to 64
65 and above
4%
30%
66%
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SOFTWOODS
Mabical is a barangay in the municipality of Floridablanca, in the province of Pampanga.
Its population as determined by the 2015 Census was 3,171. This represented 2.53% of the total
population of Floridablanca. Combining age groups together, those aged 14 and below, consisting
of the young dependent population which include infants/babies, children and young
adolescents/teenagers, make up an aggregate of 30.43% (965). Those aged 15 up to 64, roughly,
the economically active population and actual or potential members of the work force, constitute
a total of 65.66% (2,082). Finally, old dependent population consisting of the senior citizens, those
aged 65 and over, total 3.91% (124) in all. Majority of the residents are economically active, in
which they are considered as potential clients that may need to renovate and design their home,
school, and office spaces. These group of people will most likely be beneficial to business’
offerings.
SWOT Analysis
STRENGTH
Strong management
Quality control system
Knowledgeable employees
High quality equipment
Reliable customer service
Professional built website
WEAKNESS
Resource limitation
Inventory cost
OPPORTUNITIES
Few competitors
Nearby access to municipal road
Change in client's preference
Advancement of technology
THREATS
Regulatory and environment changes
Natural disasters
Fluctuating prices of raw material
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SOFTWOODS
STRATEGY AND IMPLEMENTATION
Competitive Edge
Softwoods is critical in choosing its workforce. In order to create signature quality of their
furniture, qualified applicant must undergo a carpentry course. The said course will be free and
taught by their experience superior; in which they were also able to acquire before starting the
business. Through Softwood’s internal strategy, it will lessen the cost and further errors in the
process of production. The quality of care received by the employees will be reflected through
Softwood’s output.
Sales strategy
Softwoods’ sales strategy is to make themselves known through mailings, print advertising,
social media, and personal contact to interior designers who are primarily involved with the
design/construction of commercial development a furniture. Moreover, having a showroom will
be a sales tool itself. A showroom will give the exposure to the general public, new arrivals to the
area, and construction professionals. Softwoods also ensured to have a professional interior
designer in their physical store that will help the clients by suggesting the best furniture that will
suit the place described.
An ever-growing change in technology should be complied with in order to compromise
with the clients. Softwoods created a professionally built website (www.softwoods.com.ph) that
will allow the clients to browse the product offerings. Also, it has an advanced feature where the
client can upload a neat picture of their place and apply the products they want to purchase.
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SOFTWOODS
Through this, they can visualize the place virtually with attached furniture they desire. The item
can be delivered door-to-door once placed and paid. Through deliveries, the safety of the furniture
and clients are ensured.
In line with valuing customer relation and satisfaction, Softwoods’ furniture comes with 3months warranty of repair, may it be on-call or picked up to be repaired at the warehouse.
MANAGEMENT TEAM
CEO
CORPORATE
ATTORNEY
VICE PRESIDENT OF
MARKETING
MARKETING
RESEARCH
SPECIALIST
MARKETING STAFF
VICE PRESIDENT OF
MANUFACTURING
QUALITY CONTROL
ENGINEER
ADVESTISING
SPECIALIST
MARKETING
MANAGER
ASSITANT
SECRETARY
MANUFACTURING
MANAGER
MANUFACTURING
STAFF
LOGISTICS
MANAGER
LOGISTICS STAFF
VICE PRESIDENT OF
FINANCE
VICE PRESIDENT OF
HUMAN RESOURCE
INTERNAL
AUDITOR
COST
ACCOUNTANT
HUMAN RESOURCE
MANAGER
OPERATIONAL
STAFF
FINANCE STAFF
The organizational chart of Softwoods is specific. As a manufacturing and retail business,
they require more manpower in order to fulfill the task efficiently. The higher positions are
occupied, while the production staffs are still vacant. In order to qualify, there should be experience
for the manager positions and willingness to learn for the staff positions.
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SOFTWOODS
Hiring Plan
In order to launch the store, Softwoods need to hire the following personnel:
•
Marketing manager (1)
•
Manufacturing manager (1)
•
Logistics manager (1)
•
Marketing staff (2 to start)
•
Manufacturing staff (4 to start)
•
Logistics staff (2 to start)
•
Finance staff (1 to start)
•
Operational staff (1 to start)
FINANCIAL PLAN
Below are the initial financial goals for the company:
•
Obtain an operating line of credit from a financial institution.
•
Finance growth through retained earnings.
•
Operate on a 25-30% gross margin.
The projected revenues for the first year is to exceed Php 5,000,000, incurring a loss of at
least 2.5%. The business will show an increase in profits of at least 3% to 5% for the next two (2)
years, with projected revenues of Php 10,500,000.
The start-up funding of Php 10,000,000 will be invested by the owner. The goal is to fund
the growth of the business from its earnings. The financial plan contains these essential factors:
•
•
A growth rate in sales of 48% for the year 2021 and 20% for 2021.
Average sales per month of Php 420,000 in the first year, Php 870,000 the second, and
Php 950,000 in the third year.
SOFTWOODS
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Continue to fund the growth of the business from the revenues it generates.
Financial risks
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Unexpected change in variable costs compared to the previous one.
Entrance of new competitor that will reduce the potential to generate more sales.
Switching to different source of suppliers due to scarcity of raw materials.
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SOFTWOODS
APPENDICES
Company Logo
Sales Promotion
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Products (Home Furniture)
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SOFTWOODS
Products (Office Furniture)
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SOFTWOODS
Products (School Furniture)