[Mind Racking Ideas, Inc.: A business plan]

• Main Authors: Ambat, Eric, Culla, Joe Louis, Custodio, Tristan Agustin, Domingo, Maricar, Garcia, Maricris, Hilario, Maria Odessa, Labos, Judith Ann Martha, Remulla, Jon Leonard Manzanilla
• Format: text
• Language: English
• Published: Animo Repository 2001
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12069
• Institution: De La Salle University

Executive Summary. The Mind Racking Ideas Incorporated is a corporation that is created to answer the demands of consumers. It is located at number 100, 13th Street New Manila. Racks are very practical anywhere you may be. They serve as storage spaces, organizers and may also serve as decorations in households. With this in mind the proprietors thought, designed, experimented and manufactured this particular type of product. The Hanging Rack. The Hanging Rack is a rack made of wood and cloth. Though it may look ordinary, there is actually a unique feature on it. It can be hung! Different from other racks which are restricted to rest on the floor, the product can be hung to actually save space while maintaining order in the office or home. The cloth may also be personalized according to taste, or to complement from the color of the living room or office. The primary market of this unique, attractive and practical rack is composed of households located in Posadas Village, Dona Rosario Bayview Subd., Dona Rosario Heights Bayview Subd. The total population of the primary market is 10,100. Three hundred seventy houses/condominiums were selected from these households through systematic random sampling. They were requested to answer our formulated questionnaire. Upon the completion of the survey, the data gathered were tallied and analyzed. The market acceptability rate of the Hanging Rack is 85% for the primary target market. 62% of the respondents found the product innovative, where 88% are willing to buy. Monthly potential demand was computed to be 507 units. Through the time and motion study, the members have concluded that the assembly line method would be the most effective method of production. The manufacturing process begins from the cutting of cloth, sewing them then putting them all together after the frame has been painted. Within one production day, an average of 23 units of products can be produced. Cycle time for the production of a single unit of product is 21 minutes. Production cost per unit ws computed to be P 198.18, while the selling price for every product would be P 359.00. A corporation type of business was chosen by the proponents since it has characteristics advantageous to our venture. The corporate name: Mind Racking Ideas, Inc. was chosen by the proponents since, as the name implies, the hanging rack is a product that has a great impact on anyone who sees it. It allows the consumer to personalize the design of the cloth. This corporation will last for ten months. The stockholders and the board of directors are the proponents themselves. Each one of them has duties and responsibilities to perform as well as rules and regulations to follow. The financial projections are indicated for the proponents to follow. The proponents will finance the business through the help of each members parents' through the allowances given by them which the proponents saved. The project cost required to finance the first month of operations is P 48,000. Budgets were prepared to estimate the amounts of expenses to be incurred by the company. Projected financial statements are also provided to show the expected income from the business and the assets of the corporation. The researchers therefore conclude based on gathered data that the project is found to be feasible based on the studies made. On the other hand, the members must still consider other factors that might affect the business operations in the future. The proponents have to be pro-active to whatever things that would come to pass and hope and strive to achieve success. As based on the financial plan, however, the return on investment that the firm would be able to generate is 224,78942%, with a break-even point of 254 units, or P 91,186.00 in peso sales.