BUSINESS PLAN
FOR
“BANQUERIGO VEHICLE FOR RENT AND GENERAL REPAIR SERVICE CENTER, INC.”
INTRODUCTION
As you may notice, this is not the usual business plan format you used to know. I chose to construct a modified business plan in more practical way and as basic as possible. I own a Repair and Maintenance Shop in General Santos City which fixes all kinds of electronic appliances, vehicles, and provide other services such as welding jobs and other technical services. This business is doing great for the last five (5) years and my customers are many individuals. Some became my regular customers and it’s doing fine. But I wanted more for my Shop. I’m not contented anymore with just individuals as my customers. I plan to compete to the next level. I aim to provide to new types of customers other than individuals. I’ll be serving Government Agencies and Private Companies and make them as my Regular Customers soon. The problem that holds me back is the Funding. I don’t have the resources. Let me tell you that for the past years in my business operation, I only have DTI and Barangay Business Clearance as Business Permits. I failed to get Mayor’s Business Permit and B.I.R. Registration. Yes, that’s right! I don’t issue Official Receipts (O.R.) because of the Funding problem. What’s the advantage of having Official Receipt (O.R.)? The advantage is, if I have Official Receipt (O.R.), I can extend my services to Government Agencies (such as Hall of Justice, DENR, LGU, etc.) and to Private Companies (Fastfood Chains, Hospitals, Trucking Companies, and other private companies). These types of customers do not entertain Repair Shops that do not issue Official Receipt (O.R.). There are lots of Government Agencies and Private Companies who came to my shop before but they were asking for Official Receipt (O.R.) because if I have, they will give the maintenance works to my Repair Shop. Aside from Repair and Maintenance Shop, I am also involved in Vehicle Rental activities. I rent out Motorcycle, Tricycle, Top-down, and four-wheeled vehicle.
Lately, I decided to look for Investors to join me in a Joint Venture. I am an Entrepreneur but I also like Investing activities like Real Estate. In this Business Plan I shall share to you the business idea I came up with. I hope you’ll be interested.
OBJECTIVE
The business I want to present to you is related to Real Estate Investing. We are going to accept Mortgaged (Sangla) Real Properties (such as Commercial Space, Boarding House or Apartment, etc.) which are voluntarily mortgaged (isinangla) by their owners for Zero (0) percent interest rate but, in return, we will gain the right to use and manage the property and as well as the right to receive rental income from these properties. The appraisal rate will be at least 3% monthly return.
THE PLAN
The Plan is to make my Repair Shop and Vehicle Rental Business into a Regular Corporation for the purpose of making it as the Holding Company for all of our Real Estate Investments. I already made an application for Registration of my Company to the Securities and Exchange Commission (SEC) as One Person Corporation (OPC) stated in the Section 116 of Republic Act 11232 or known as the Revised Corporation Code. The name of the Company in my application was “BANQUERIGO VEHICLE FOR RENT AND GENERAL REPAIR SERVICE CENTER, OPC” and the Certificate of Registration will arrive soon.
My Plan is to gather twenty (20) Investors who are willing to participate in this Joint Venture by investing at least One Hundred Thousand Pesos (P100,000) per head. The projected paid-up Capital is estimated to be Two Million Pesos (P2,000,000). After gathering the desired funds, I shall convert right away my One Person Corporation (OPC) to a regular Corporation which consists of twenty (20) shareholders. After converting, the 20 Shareholders will be having a Shareholders’ meeting as stated in the Law to elect the Board of Directors and Officers of the Corporation, as well as the By-laws or the rule that we will follow inside the company and everything in the meeting will be recorded in the minutes of meeting by the elected Secretary. In the meeting, we shall discuss everything. Then, right after, we will proceed by processing the Mayor’s Business Permit and B.I.R. Registration to obtain ATP for our Official Receipt (O.R.) issuance.
The main objective of our Company is to Invest in Real Estate by accepting Mortgaged Real Properties (such as Commercial Space, Boarding House or Apartment, etc.) and charging Zero (0) percent interest but, in return, we will gain the usufruct or the right to use and manage the property and the right to receive rental income.
As you may recall, our Company has secondary objective. The Repair Services feature of our company is just a secondary purpose but still quite profitable. My Repair Shop has loyal customers already and because our Company can issue an Official Receipt (O.R.), we can add the Government Agencies and Private Companies to our Regular Customers soon. This feature of the company can make active income to our company significantly. The Vehicle Rental feature of our Company can also make passive income that will play a major role in our operation. It can produce passive income in hourly or daily basis and almost 5% return every month. That is very high return indeed. The positive point in this business is the maintenance expenses of the vehicle inventory will not be a problem because we have our own Repair Shop on our hands. This Vehicle for Rent feature is a very important for survival in the long run.
BUDGET ALLOCATION
The Budget will be allocated as follows and it will be explained in detail below:
Account | Amount Allocated | |
A | REAL ESTATE FUND | P1,000,000 |
B | Repair Services Equipment | 100,000 |
C | Vehicle Rental Inventory | 250,000 |
D | Principal Office | 500,000 |
E | Cash on Hand Account | 150,000 |
TOTAL | P2,000,000 |
Note: The Fund Allocation might change depending on the Budget.
A.Real Estate Fund. Since it is the main objective of our business operation, it has the majority of allocation of 50% of the total fund. The One Million Pesos (P1,000,000) fund will be used to acquire mortgaged real properties which are intended in renting out.
B.Repair Services Equipment. This fund will be used for Equipment and Tools for Repair Services.
C.Vehicle Rental Inventory. This fund is for purchasing vehicles (motorcycle, tricycle, car, truck, etc.) and its accessories (sidecar and other vehicle accessories), either for cash or installment, which are intended to be rented out to customers in an hourly or daily basis.
D.Principal Office. Our Company’s principal office will be in my current repair shop at Arradaza St., Brgy. Lagao, General Santos City. The status of my Shop is I am just renting here for three thousand pesos (P3,000) for five (5) straight years. But the owner has an offer to me, that is, he is asking me to look for persons who will accept his commercial space as mortgage. He wants to pawn (sangla) his commercial lot for Three Hundred Thousand Pesos (P300,000) because he needs money. So I propose that we will accept his commercial lot as our 1st Real Estate Investment so that we won’t be needed to pay monthly rental expense for our principal office anymore. The commercial lot has an area of 150 square meters and it earns at least 3% per month. It is actually a good deal. After we accept it as mortgage, we will allocate another Two Hundred Thousand Pesos (P200,000) for Office Building Construction for our main office to look good. The building will have three (3) office spaces with rolling doors. When it’s done, we will occupy one of the spaces and rent out the other two (2) spaces to earn monthly rental income. The Two Hundred Thousand Pesos (P200,000) fund for Office Building Construction will be refundable upon redemption as the land owner already agreed. If you wish to see the location site of the commercial lot where my shop is currently located, please do contact me so that I can tour you here.
E.Cash On Hand Account. This will be the Cash Fund to be used in daily operation of our business.
PLAN AFTER FORMATION
If you will elect me as the CEO of the company on the first board meeting, I shall execute this post-formation plan immediately:
CONCLUSION
This Company we are going to build is a service provider company which provides repair & maintenance and vehicle rental services to the customers. This business model is proven by yours truly. I’ve been involved in this business for a long time. I’ve been planning for expansion in other cities in the Philippines and extend the Services, not just individual customers, but also to Government Agencies and Private Companies. The problem that holds me back is the Funding Problem. That’s where you come as investors. Providing Repair Services and Vehicle Rental Business is really good. But this nature is just for show or a cover for our main objective. The main objective of our Company will be the Real Estate Investment by accepting mortgaged commercial properties and apartments to earn passive income of at least 3% every month. 3% return compounded every month is actually very high return.
Our Company which renders services will serve as a Holding Company of all our Real Estate Investments. I know it sounds confusing for a beginner but this is actually happening in the Business World today. The famous example of a company that the purpose is just for Holding purposes is the BERKSHIRE HATHAWAY of the legendary Investor Warren Buffett. The Berkshire Hathaway is Textile Production Company. That was supposed to be its main operation. But it’s Revenue or Income doesn’t come from its Textile Production but from its Investments in Subsidiaries and Associates. That was brilliant. Another famous company that acts as Holding Company is the MCDONALD. The McDonald was supposed to be a fast food restaurant but it was a surprise that it is actually not. The main operation is in food industry but about 90% of their revenue or income doesn’t come from its food business. McDonald is actually a REAL ESTATE BUSINESS. This kind of Business Model is BRILLIANT. They operate in food industry but their main objective is actually Real Estate Investment and we are going to do the same thing. We will build our own version of McDonald business model.
Here in the Philippines, the famous holding company is SM PRIME HOLDINGS INCORPORATED. Its purpose written their Articles of Incorporation is to act as a Holding Company. Smart Businessmen are building companies to act as Holding Company only. That’s a fact and that’s what exactly what we are going to do.
I am an avid fan of Robert Kiyosaki and Warren Buffett. If you happen to admire these persons, we are sitting on the same boat. Thank you for your time for reading this modified business plan. I hope you like it. I’m expecting to meet you soon.
Prepared by: Mark Anthony S. Banquerigo
09480034889
banquerigoservices@gmail.com
Start Date: 28 August 2020
End Date: 31 December 2020
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