BUSINESS PROPOSAL

CultureCrate

I. Executive Summary
CultureCrate is an innovative, trendy, and easy to access product that is available
through online ordering. It aims to bring the experience of cultures around the world
into your doorstep. Available in many sizes, it is jam-packed with delicious food, unique
souvenirs and other paraphernalia that is engineered to be both informative and
entertaining. Each item on the box is rigorously hand-picked by our researchers and we
ensure that no part of the box is wasted.

Into more in-depth operations, it has been decided that CultureCrate will be a corporate
led by five shareholders. It will be stationed in the United Arab Emirates, in a small
office and a warehouse. It will be capable of supplying thousands of interested
customers around the world through our website. In order to properly establish
CultureCrate, we shall be signing a business loan from ADCB. We will also be hiring a
marketing team that will handle commercials and use social media to increase
customer activity.

We desire to turn this proposal into a reality and we believe that this business is of
timely design and is capable of rearing into a fast-paced competitive environment.

II. Mission, Goals and Objectives

A. Mission
1. Provide a taste of cultures from around the world, especially to those who long
for a little adventure in their lives.
2. Give excellent customer service by making each box interesting, punctually
delivering the package in the best condition, and collaborating with patrons in
constructing the next CultureCrate.
B. Goals
1. Establish the business in a smooth and professional manner.
2. Set up a main office in UAE and a storage warehouse to facilitate incoming and
outgoing orders.
3. Design a suitable, secure and lightweight website that focuses on swift customer
service.
4. Build a large enough staff that can manufacture each box from scratch to finish
with the highest accuracy and quality.
 C. Development of the Business
1. After setting up CultureCrate, we shall start off with producing 10 boxes. These
five boxes will be sent to famous personalities and review sites, such as
YouTubers or blogs. Our advertising will be set into full force – releasing
commercials in TV, cinemas, internet, and public hotspots.
2. After gathering our first 100 orders in the Middle East, we will gauge interest
and customer satisfaction.
3. With enough interest garnered from the public, ideally, we will deliver to at
least fifty thousand (50,000) households at the end of our first year.
4. As we continue to establish ourselves, we will expand into neighboring
countries, or in countries with sufficient demands for our product.
III. Organization
A. Business Structure
1. The business is managed by a partnership of five members; each member will
take an equal share of the profits, and pay tax accordingly.
B. Management
1. Chief Executive Officer (CEO) – John Vincent E. Malvar
2. Chief Operating Officer (COO) – Benjamin Arnold T. Santiago
3. Chief Marketing Officer – Jim Alrhei P. Tec
4. Chief Financial Officer (CFO) – Ronan Immanuel G. Viernes
Chief Customer Service Officer (CCSO) – Bea Elaine A. Cabantog
C. Business Philosophy
a. Our first priority is to provide a product with which consumers will be
completely satisfied with.
b. We believe that every business has a responsibility to keep in their city.
Therefore, we will guarantee that we comply with environmental laws in all
operations.
c. We desire to make a professional setting where productivity is always high.
d. We pride ourselves on our ability to deliver our product on time, and without
fail. We will select only the most delicious or unique snacks that each country
has to offer, to provide our customers with the most exciting experience that
we can give.
D. Personnel
 Executive Officers
1. Chief Executive Officer (50,000 AED/month) – in charge of administrating or
managing the business; utilizes the information presented to him/her and
develops high-level strategies; making major corporate decisions; managing
the overall resources and operations of a company
2. Chief Operating Officer (40,000 AED/month) – responsible for the daily
operation of the company; routinely reports to the CEO; responsible for the
design, development, operation and improvement of the systems that create
and develop product; ensures that the business operations are efficient and
effective
 3. Chief Financial Officer (38,000 AED/month) – responsible for overseeing the
financial activities of an entire company; oversees the accounting and finance
departments and ensuring financial reports are accurate and completed on
time
4.Chief Customer Service Officer (38,000 AED/month) – responsible for ensuring
the company’s highest standard of customer service; ensure that the needs of
customers are being satisfied; processes all issues and comments given by
customers and recommends solutions to improve the product.

 Accounts and Finance

1. Head Accountant (35,000 AED/month) – creates records of the purchases
and sales of the business, creates the balance sheet and profit and loss
account, calculates the wages and salaries of the employees, organizing the
collection of Income Tax, reports to the CFO or CEO
 Logistics
1. Head of Logistics (35,000 AED/month) – in charge of organizing and planning
logistical routes and methods; organizing production with manufacturers;
organizing shipping for snacks and assorted items
2. Storage Manager (25,000 AED/month) – in charge of utilizing computers to
take and record inventory and organizing stock within the warehouses
3. Warehouse Workers (4) (5,000 AED per month) – prepare and complete
deliveries, operate within the warehouse, report discrepancies to supervisors
 Research
1. Chief Research Officer (38,000 AED/month) – organizing research efforts,
presenting results to the CEO, COO or CFO, in charge of research of product
content; responsible for assembling a cohesive list of food and assorted items
to include in each CultureCrate
2. Research Assistants (5) (7,500 AED/month) – research products [snacks and
assorted items] overseas and determine if they are to be included; identify
trends that may affect the product
 Human Resources
1. Chief Human Resources Officer (38,000 AED/month) – oversees all aspects of
HR management; organization of team efforts; plans training of recruits and
employees; reports any developments to the CEO
2. Human Resource Specialist (25,000 AED/month) – responsible for
interviewing and screening potential candidates for available positions; develop
company policies; interact with employees and communicate concerns and
complaints to the appropriate personnel; give an overview of employee
relations to supervisors and high ranking executives
 Public Relations
1. Public Relations Officer (30,000 AED/month) – interact with the public
personally through interviews or through the use of social media; maintain and
enhance the image of the business; work with marketing to create public
 campaigns; communicate the comments and concerns of consumers to the
executive officers
 Marketing
1. Chief Marketing Officer (38,000 AED/month) – responsible for the commercial
strategy of the business; leads sales management, product development,
marketing communications [advertising and promotions] pricing, market
research; reports to the CEO
2. Marketing Associates (2) (10,000 AED/month) – develop marketing campaigns,
analyze market trends to determine the viability of current and future products
and services; liaising with media organizations and advertising agencies
 Packaging
1. Packaging Engineer (30,000 AED/month) – works with marketing to create a
durable and attractive container that suits the product’s needs; creates a new
attractive design for every monthly iteration of CultureCrate
 Auxiliary Workers
1. Janitors (4) (2,000 AED/month)
2. Maintenance (2) (2,500 AED/month)
 Customer Service
1. Customer Service Representatives (5) (2,500 AED/month)

E. Operating Control
The business workflow starts with the five executive officers. They shall be discussing the
overall operations of this business. Afterwards, the accounts and finance shall be keeping
records of all monetary transactions, starting from the bank loan to all consequent
payments.

Next, the research team will be conceptualizing the box for the month by gathering
information from social media and other platforms. Afterwards, they will send the data to
the packaging engineering, who will devise how the box will look like and how the items
can be fitted into the container.

The logistics team shall start contacting potential suppliers and/or start manufacturing
items specified for the box. After all items on the box is available, it will be gathered by an
assembly line, packaged, and sent to the courier company. The whole process takes 25 days
to complete and 5 days is added for shipping the CultureCrate every 5th of every month.
 IV. The Marketing Plan
A. The Product
1. CultureCrate is a visually appealing box containing snacks, food, oddities, and
souvenirs from countries all over the world, delivered monthly to our customers’
doorstep.
2. We will operate on a subscription-based basis, offering plans of subscribing for
one month, three months, six months, and one year.

Month/s Original Price Discount After Discount

1 210 0% 210
3 630 1.75% 619
6 1260 2.50% 1229
12 2520 3.50% 2432

3. We include all extra costs (shipping and delivery) within the total cost.
4. Though loosely related businesses exist, our business is the first to bring the
different tastes and cultures directly to your home.
5. Customers are able to opt-out of their subscription plans at the end of the
duration.
B. Customer Analysis
1. Our main demographics are those who wish to experience a small taste of other
cultures, but do not wish to spend a large sum of money to do so. Therefore,
our customers are male and female of all ethnicities, from the ages of 18 to 60.
2. As a box subscription company, we do not have a large group of competitors.
However, there are some that offer services such as food or toys. We can safely
say that our advantage is that we offer wholesome product and experience and
that our price is cheaper compared to other companies, which sell at a
minimum of 300 to 400 dirhams per box.
C. Market Potential
1. For our first month, we will limit our deliveries to UAE and neighboring
countries. These are the populations with the most interest in our and product,
and possesses the highest amount of disposable income.
D. Location
1. We will operate out of an office in Al Qusais, with our warehouses located in
Sharjah. These locations ensure short travelling time, resulting in efficiency.
E. Price/Quality Relationship
1. Each CultureCrate averages around 100 AED to produce; the cost of shipping
and manufacturing. We only select the most exciting and interesting snacks we
discover from each country. We would never compromise the health of our
customers by choosing a snack that does not live up to our standards.
F. Promotional Strategies
1. The product is packaged in a differently designed box each month, themed to
the country for that particular month. It will be made from different materials,
 usually wood, plastic or metal, delivering a final product that is both visually
appealing and durable.
G. Public Relations
1. Our public relations officer will utilize social media to create a tight-knit
community around CultureCrate. We will encourage our customers to share
their experiences with one another, greatly enhancing each individual’s
customer. We will offer refunds and compensation, and go out of our way to
help make each and every customer’s overall experience better.

H. Advertising
1. Without a physical location to sell CultureCrates, we depend exclusively on
advertising and word of mouth to spread awareness of our product. We will
utilize traditional mediums such as newspaper and billboard advertisements,
and radio and television commercials. We will request larger businesses such as
Virgin Megastore to endorse us and advertise. We will create an online
presence by creating online ads, and by asking famous online personalities to
help endorse and advertise our product. We then measure the effectiveness of
each advertising method by asking our customers how they had heard of our
product.
2. Since advertising is essential to the success of our product, we must dedicate a
larger portion of our budget compared to that of others.
I. Customer Service
1. Customer Service Representatives handle calls on a toll-free line from
customers with complaints or comments. We believe that good customer
service is part of the customer’s experience with the product Therefore, bad
customer service is equal to a bad product.
 V. Financial Plan
A. Loan Application

Loan Application in AED (yearly)

Rent Utilities
Warehouse 75,000 50,000
Office 100,000 15,000
Insurance 19,000
License 15,000
Total Rent: 190,000
Total Utilities 65,000

Total Rent and Utilities 255,000.00

Equipment Cost of Single Unit No of Units Total
Share Capital Requirement 1,000 5 5000
Vehicle 50,000 2 100000
Furniture 500 30 15000
Office Equipment 1,500 24 36000
Factory Machineries 10,000 1 10000
Salaries
Total Capital in AED 12 months166,000.00

Position Salary(1 month) No. of People Total

CEO 50,000 1 50000
COO 40,000 1 40000
CFO 38,000 1 38000
CCSO 38,000 1 38000
Head Accountant 30,000 1 30000
Head of Logistics 35,000 1 35000
Storage Manager 15,000 1 15000
Warehouse Worker 10,000 4 40000
Chief Research Officer 35,000 1 35000
Research Assistant 25,000 5 125000
Chief Human Resources Officer 38,000 1 38000
Human Resource Specialist 20,000 1 20000
Public Relations Officer 30,000 1 30000
Chief Marketing Officer 38,000 1 38000
Marketing Associate 20,000 5 100000
Customer Service Representative 4,500 5 22500
Packaging Engineer 35,000 1 35000
Janitor 2,000 2 4000
Maintenance 2,500 2 5000

Total 738,500.00
Total yearly 8,862,000.00
B. Balance Sheet
CultureCrate
Balance Sheet(AED)
As of December 31,2016

Balance Sheet in AED End of the Year

Current Assets
Cash on hand and in bank 160,713,000.00
Accounts receivable 50,000,000
Inventory
Total Current Assets 210,713,000.00

Fixed Assets
Net Fixed Assets 166,000.00
Total Assets 210,879,000.00

Liabilities and Shareholders Equity

Liabilities
Short Term Liabilities 9,577,000.00
Accounts Payable 42,756,250
Total Current Liabilities 52,333,250.00
Long Term Liabilities 40,169,750.00
Total Liabilities 92,503,000.00

Shareholders Equity

Paid up Capital 421,000.00

Retained Earnings(Net Income) 117,955,000.00

Total Shareholders Equity 118,376,000.00

Total Liabilities and Shareholders Equity 210,879,000.00

 C. Breakeven Analysis

Monthly Payments Investment Returned ROI (Return of Investment)

1 947,205 x 12 11,366,460 AED 25%
2 947,205 x 12 22,732,920 AED 50%
3 947,205 x 12 34,099,380 AED 75%
4 947,205 x 12 45,465,840 AED 100%
In our first year of operations, our total expenses equal to 42,098,000 AED; loaned from the
bank. With an 8% interest, we need to return 45,465,840 AED.

Investments Price
Expenses 42,098,000 AED
Loan 45,465,840 AED

Total (Amount to Break-even) 87,563,840 AED

With annual profits of 58,375,540 AED, we can pay back the initial investment and all
expenses accrued during our first year of operation in 4 years and 6 months.

D. Income Projections
1. Monthly and Annual Income

Subscription Plan New Subscribers Revenue New Subscribers Revenue(Original Price)

Revenue(Final)
1 10,000 2100000 120000 25200000 25200000
3 5,000 3150000 60000 37800000 37138500
6 2,000 2520000 24000 30240000 29484000
12 2,500 6300000 30000 75600000 72954000
Total 19,500 14070000 234000 168840000 164776500
Total Net Revenue 160,713,000.00
 2.Monthly and Annual Expenses and Overall Income Statement

Income Statement In AED 1 Year (12 months)

Revenue
Gross Sales 164,776,500.00
Less Sales -4063500
Net Sales 160,713,000.00

Cost of Goods Sold

Purchases 23400000
Production 9360000
Cost of Goods Sold 32,760,000.00

Gross Sales Profit 127,953,000.00

E.
F. Expenses
G.
H. Operating Expenses Cost
I. Rent 255,000.00
J. Salaries/Wages 8,862,000.00
K. Marketing 355,000.00
L.
Operational Costs 360,000.00
Total Current Expenses 9,832,000.00
Operating Income 118,121,000.00

Capital 166,000.00
Total Expenses 42,758,000.00
Pre-tax Income 117,955,000.00

Tax 0
Net Income 117,955,000.00