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Feasibility Study of

Establishing
“Heel2Toe”
in Cabanatuan City
BUSINESS CONCEPT
Shoes have become an important part of our everyday lives. Shoes
were originally designed to protect our feet from cold weather, sharp
objects, and uncomfortable surfaces.
High heeled shoes are now becoming a staple item in the fashion
industry today. Women who choose to wear high heels often recognize
the short term consequences in the forms of pain and damage to the skin
on their feet.
The solution and design of this shoes maintains stability and style that
allows adjustment on your current high heel shoe from high heel position
to a flat position by simply removing the heel.
BUSINESS CONCEPT

The proposed business venture is a shoe retail store that sells


shoes with detachable heels. The convertible heels that are not
available in the city of Cabanatuan will serve as the trademark
of the business. Thus, the shoe store’ trade name shall be
“Heel2Toe.” It will be established at SM City Cabanatuan along
Maharlika Highway, H. Concepcion, Cabanatuan City
TAG LINE

“Make Walking
Extraordinary”
PRODUCTS:
JUHARI SKI

STILLETTOS PHP 1,699.00


HEELS

ISABELLE SLING BACK

PHP 1,600.00

ASHY STILETTO PUMPS

PHP 1,690.00
AGACY

PHP 1,670.00

OLIVIA

PHP 1,800.00
PRADASE

KITTEN PHP 1,650.00


HEELS

PATENT KATE

PHP 1,895.00

FREYA CLASSIC COURT HEELS

PHP 1,860.00
LARISSE KITS

PHP 1,795.00

SPENCER

PHP 1,670.00
HANNIE SLING BACK

WEDGE PHP 1,600.00


HEELS

PAMSY LARITTE

PHP 1,580.00

JOANEE KIN

PHP 1,999.00
ZANDY

PHP 1,750.00

CAMERON

PHP 1,599.00
BLOCK HEELED SANDALS

PLATFORM PHP 1,800.00


HEELS

POINTED PUMPS

PHP 1,900.00

ALEXANDRA HEELS

PHP 1,900.00
METAL CUFF

PHP 1,820.00

AVERY

PHP 1,799.00
LHESSEY MROTH

CONE PHP 1,780.00


HEELS

FOCHINY

PHP 1,870.00

LANDVIND

PHP 1,650.00
IMPLUSSY FLASH
PHP 1,699.00

LYST

PHP 1,800.00
DUANEE BOOTS

STACKED PHP 1,950.00


HEELS

LOVE STRAPPY

PHP 1,540.00

PHANEY STRAPPY

PHP 1,790.00
CHESKA ELS

PHP 1,995.00

ANDRA

PHP 1,899.00
MARKETING STRATEGY

POSTER

FACEBOOK AND INSTAGRAM PAGE


DEMAND ANALYSIS

Year Population Population Potential Effective Total Demand by


Age Demand Demand Demand Frequency
18-45

2020 2,073,905 539,215 490,686 76,743 76,743 84,418

2021 2,114,968 549,892 500,402 78,263 78,263 86,089

2022 2,156,844 560,779 510,309 79,813 79,813 87,794

2023 2,119,550 571,883 520,414 81,393 81,393 89,532

2024 2,243,102 583,206 530,717 83,005 83,005 91,305


SUPPLY SCHEDULE
Competitors Number of Operational Total

Customers Days

per day

CLN 44 360 15,840

Primadonna 50 360 18,000

Sofab! 31 360 11,160

Melissa 24 360 8,640

Gibi 25 360 9,000

Total 174 62,640


SUPPLY AND DEMAND ANALYSIS
Year Demand Supply Gap Market Value Market Share
Share Percentage
2020 84,418 62,640 21,778 5,662 26%

2021 86,089 63,880 22,209 5,774 26%

2022 87,794 65,145 22,649 5,889 26%

2023 89,532 66,435 23,097 6,005 26%

2024 91,305 67,750 23,555 6,124 26%


FLOOR PLAN
STORE PERSPECTIVE
SHOE MAKING PROCESS

Pattern Making Tracing Cutting

Lasting Assembling Sewing

Sole Making Finishing


 Pattern Making - in this process, the pattern of the shoes is made. To make a new shoe
pattern step by step, the last is needed to be taped so the shell can be pulled from the shoe
pattern.
 Upper Making - the top part of the shoe or the "upper" is made. We use different skins of
leather. The work is divided in stages.
 Lasting and Making - the completed uppers are moulded into a shape of foot with the help
of a "Last". Last is a plastic shape that simulates the foot shape. It is later removed from the
finished shoe to be used further in making other shoes. It is only a temporary attachment.
 Sole Making - a moulded sole, which is a black rubber, is attached to the leather and both
are stitched together.
 Finishing Department and the Shoe Room - the finishing of a shoe depends on the material
used for making it. For shoe room operation, a plastic tissue is fitted into shoe which covers
the shoes inside the box.
TYPE OF BUSINESS

The proposed business shall adopt the sole proprietorship


form of business organization wherein only a single person
invests his capital in the venture and manages the business on
his own. This form of business organization is chosen because
of the following reasons:
 Itis easier and inexpensive to organize as compared to other
forms of business ownership.
 Fewer requirements are needed for the sole proprietorship.
 Sole proprietorship is least regulated by the government over
other forms of businesses.
 The sole proprietor receives all income generated by the
business to keep or reinvest.
 The owner has complete control over the business, as well as
in decision-making.
ORGANIZATION STRUCTURE
MANAGER/
OWNER

CASHIER

SALES PRODUCTION SALES


CLERK STAFF CLERK
FINANCIAL
ANALYSIS
NET PRESENT VALUE
Net Present Value (6%)
Period Cashflow PVF DCF

1st Year 373,057.53 0.9434 351,941.07

2nd Year 454,442.84 0.8900 404,452.51

3rd Year 508,998.52 0.8396 427,364.97

4th Year 555,414.39 0.7921 439,940.22

5th Year 614,563.60 0.7473 459,237.67

Total Discounted Cashflow 2,082,936.44

Project Cost 510,000.00

Net Present Value 1,572,936.44


RETURN ON INVESTMENT

Return on
Investment

1st Year 2nd Year 3rd Year 4th Year 5th Year Average

Net Income 350,179.71 431,565.02 486,120.70 532,536.57 591,685.78 478,417.56

Project Cost 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00

Return on
Investment 68.66% 84.62% 95.32% 104.42% 116.02% 93.81%
PAYBACK PERIOD

Payback Period
Cumulative Payback
Year Cashflow Cashflow Period

0 (510,000.00) (510,000.00) -

1 373,057.53 (136,942.47) 1.30

2 454,442.84 317,500.37 -

3 508,998.52 826,498.89 -

4 555,414.39 1,381,913.28 -

5 614,563.60 1,996,476.88 -

Total Payback Period 1.30


POTENTIAL PROBLEMS ENCOUNTERED
 UNSATISFIED COSTUMER
Some might like, and some might dislike the designs and the quality of the
products, but it is not bad for a starting business because there is always a room for
improvement in order to achieve and meet the standards and qualifications of
different types of customers.
 EMPLOYEES
Some of them are not well-trained on how to accept or treat the customers upon
entering the business venture. The employees as well as the customers are the heart
of the business; they are the ones intact inside the store that is why it is a must that
there is harmonious and peaceful ambiance inside the premises.
 INFLATION
the higher the inflation, the higher the expenses and higher expenses will lead
to increase in the price of the products served, and this will badly lead to loss of
customers.
POSSIBLE SOLUTIONS

 The products should be improved through selecting and purchasing


high-quality materials to meet the costumers’ desire, satisfaction,
and expectations.
 Conducting trainings and orientations may enhance the personality
of the employees.
 The business should be flexible and consider the things that will
retain their loyal customers.
SOCIO-ECONOMIC BENEFITS
The following are the contributions to society and the economy made by the
business upon establishment:
 It creates employment or job opportunities for the people of Cabanatuan City.
 It will assist in satisfying the pampering needs of the people of Cabanatuan
City particularly the heel owners.
 It will give the government additional income through permits and licenses.
 It will increase the sales of the local suppliers, because it is where all the
products and supplies that will be sold in the shop will be bought.
 It will serve as a framework for future entrepreneurs who wish to pursue a
similar line of business.
CONCLUSION

The business venture “Heel2Toe” is considered feasible since there is a


high demand for its proposed products. The net income after tax is Php
350,179.79. The project has a positive net present value which proves that
the proposed business is feasible and profitable. The payback period
which tells the length of time required to recover the amount of initial
investment, is at 1.30 years or approximately one year, three months, and
eighteen days. The target market includes the students and professional
women which are nearby and often go around the location of the business.
 Advertising is the major strategy that will be used to bring awareness
regarding the new business venture. Distributing flyers along the
vicinity will also be considered.
 The location of the business is technically feasible because it is located
at SM City Cabanatuan, H. Concepcion, along Maharlika Highway in
Cabanatuan City. Along this location, it is considered marketable
because it is just near the school and offices
 The proposed business will be opened from 10AM-9PM, Mondays to
Sundays.
 The proposed business is formed as a sole proprietorship that is
managed by one person with the advantage of freedom to make all the
decisions necessary to the business. Also, the operations will be simple,
manageable and it only requires minimum capital.
 The proposed business shall use the line function of organizational model because it
best suits the business. The manager/owner, being the one who has the power over
his employees and the one who makes decisions as he fit sees it.
 The business will have a beginning capital of PHP 510,000.
 The proposed business will have pure cash transactions only and the start-up capital
will come from the savings of the owner and no part of it will come from loans.
 The socio-economic benefits of the proposed venture are focused with the
community, government and the local suppliers.
 The store would provide additional income in the city through permits and licenses.
 The potential problems and the possible solutions are concerned with unsatisfied
customers, employees, and inflation.
RECOMMENDATION
Based on the understanding of summary of the different aspects and
conclusions stated, the following recommendations were drawn:
 That upon starting a business venture, proper planning and consolidation
must be done.
 That the quality of the products must be consistent in order to build
customer relationships, and more importantly to make them a loyal
customer.
 That there will be a continuous improvement of the products offered through
careful selection and purchasing high-quality and well-designed products
and incorporation of the trends in the shoe industry.
 That all the employees who will be hired for the business will undergo series
of trainings and orientations.
 In promotional activities, the business should consider the costs and
benefits that it would contribute in the profitability and marketability
of the products.
 Hiring of additional employees in the future should be considered in
order to give the customers the fastest kind of service.
 The owner must consider establishing his own factory in the long run
if the sale increases to the point that the current capacity could not
cater the growing needs of the customer.
DOCUMENTATION

“Mang Pando” owner of Pando Shoe Shop


(Shoes, sandals,and other leather crafting)
#299 E. Dela Paz, Sto. Nino, Marikina City, Philippines
SoFab! SM CITY CABANATUAN PRIMADONNA, SM CITY CABANATUAN
MELISSA, SM CITY GIBI, SM CITY CLN, SM CITY CABANATUAN CITY
CABANATUAN CABANATUAN

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