BEYOND THE WALLS: A FEASIBILITY STUDY ON STUDIO RENTAL SPACE IN

FOSTERING CREATIVITY AND COMFORT AT JARO, ILOILO CITY.

A Feasibility Study to be Presented to

The Faculty of

College of Business and Management

West Visayas State University

Luna St., La Paz, Iloilo City

In Partial Fulfillment

of the Requirements in for the Course BA 208

(Feasibility Study)

SANTOCILDES, ALYANAH MEIR M.

SILVA, SHAYNA L.

TAVARRO, KRISTELLE ANDREA T.

VALLO, MEIZY JEAN T.

DECEMBER 2024

i
 APPROVAL SHEET

This feasibility study entitled “Beyond The Walls: A Feasibility Study on

Studio Rental Spaces in Fostering Creativity and Comfort at Jaro, Iloilo, City”

prepared and submitted by ALYANAH MEIR M. SANTOCILDES, SHAYNA L.

SILVA, KRISTELLE ANDREA T. TAVARRO and MEIZY JEAN T. VALLO, in

partial fulfillment of the requirements for the degree of Bachelor of Science in

Business Administration Major in Financial Management, has been examined

and recommended for Oral Defense.

________________________________

MS. MIA S. GUARTILLA, CPA

Subject Teacher

PANEL OF EXAMINERS

_____________________________

DR. CHRISTINE P. GAMBA, CPA

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_____________________________

MR. REX F. DAGDAG, CPA

_____________________________

MR. NICHOL JOHN RAYMUNDO

Accepted and approved in the partial fulfillment of the requirement for the

degree of Bachelor of Science in Business Administration Major in Financial

Management.

Date of Oral Defense: December 5, 2024

iii
 Acknowledgement

The study’s accomplishment was made possible through the valuable

contributions of different people. As a result, the researchers would like to extend their

heartfelt gratitude and sincere appreciation to these key individuals who contributed to

the success of this study:

To Ms. Mia S. Guartilla, CPA, the researcher’s subject teacher, for sharing her

knowledge and for her active guidance, and her perseverance in making sure our study

was conducted appropriately.

To Mrs. Jocelyn Genesila, MMBM, CPA, for allotting her time and expertise in

our feasibility study.

To Jan Irish T. Tumasis, the researchers’ friend, who willingly gave her time and

expertise in arts, whose valuable talent had made a huge difference in the completion of

this study, bringing out our creative visions come to life.

To Charls Darwin Barcelona, the researchers’ friend, who willingly answered all

our inquiries and extended his reach by consulting an Electrical Engineer to ensure that

the information being relayed to us are accurate.

To Frency Shania T. Gentelizo, the researchers’ friend, for sharing her

knowledge and whose valuable insights and advice have been instrumental in the

endeavors of this study.

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 To the Silva and Santocildes Family, for taking us, the researchers, in their

homes, providing us roof and food during the finalization of the paper. Your kindness

and generosity have truly contributed to the success of this study.

To the researchers’ family, for allowing us, the researchers, to dedicate our time

in conducting the study. Your immense understanding, love, care, and support have truly

made a huge part in the completion of this study.

To all our respondents, the people inside and outside of Jaro, Iloilo City, who

actively and willingly allotted their time in answering our survey.

To Sir David Jaleco, Ms. Annabelle Javil, and Sir Jhun Mark Hasan-gas, for their

invaluable participation and insights as the interviewees for the views and opinions of the

community.

To the handler of the Javellana Building, located at the Jaro Plaza, for her

eagerness in answering our inquiries about our location.

And above all, to the ALMIGHTY GOD, for gracing us, the researchers, the

knowledge, consistency, good health, perseverance, and strength, and whose spiritual

guidance enabled the completion of this study.

To GOD be the Highest Glory!

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 ABSTRACT

Beyond the Walls Studio, a cutting-edge rental facility intended to serve the growing

artistic community nestled at the heart of Plaza Rizal St., Jardeleza, Iloilo City. The goal

of this creative endeavor is to meet the growing need for open-concept, specialized

workspaces that meet the requirements of creative people like artists and performers.

The studio aims to promote artistic expression, teamwork, and community involvement

by offering a committed and motivating space. The studio will provide a range of

services, such as workshop space, event hosting, and dance classes. Beyond the Walls

hopes to reach a broader spectrum of customers by broadening its services including

independent artists and groups looking for distinctive locations for workshops, seminars,

cultural events and school performance activities. The studio's concept has been well

received by the local community, as evidenced by the astounding 92.1% approval rating

which shows a high degree of support and expectation. In addition to its primary purpose

as a rental facility, this comprehensive strategy aims to position Beyond the Walls Studio

as a dynamic cultural hub, fostering community engagement and artistic innovation

through a variety of programs and partnerships. The study looks at the studio's possible

effects on the neighborhood and evaluates how it can promote comfort, creativity, and

economic development. With reasonable prices and cozy setting it is a desirable choice

for a range of activities, with a predicted Return on Investment (ROI) of 141.54% and

through effective marketing tactics and leveraging market prospects, Beyond the Walls

Studio has the potential to develop into a flourishing artist hub and a major contributor to

Jaro, Iloilo City's cultural scene.

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 TABLE OF CONTENTS

Page

TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT iv

ABSTRACT vi

List of Tables xii

List of Figures xiv

Chapter

1 Introduction to the Study 1

Description of the Project 1

Vision 2

Mission 2

Objectives 2

Project Location 2

Organization and Administration 3

Time Duration 5

Business Activities 7

Business Logo 8

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2 Market Feasibility 9

Industry Description 9

1.1 Size, Scope and Nature of the Studio Rental 10

1.2 Size, Scope and Nature of the Service 10

1.3. Market Segments 11

1.3.1 Life-cycle of the Industry 11

1.3.2 Future direction of the Proposed Business 13

1.4 Market Trends 14

Industry Competitiveness 15

2. 1 Competitors 16

2.2 Price Competitiveness of Service 17

2.3 SWOT Analysis 19

2.4 Factors Affecting the Proposed Business 22

2.5 Competitive Efficiency Plan 24

Market Potential 27

3.1 Demand and Usage Trends Analysis 29

3.2 Segmented Market Opportunities 32

3.3 Potential Share of the Market 33

Demand and Sales Analysis 34

Marketing Strategies 41

3 Technical Feasibility 43

Production Process and Flowchart 43

1.1 Production Schedule 44

1.2 Production Process 45

viii
 1.3 Flowchart of the Production Process 46

Location and Facility Needs 46

2.1 Proposed Location of the Business 46

a. Accessibility 46

b. Environmental Impact and Regulatory Requirements 47

c. Views and Opinions of the Community 48

2.2 Vicinity Map 49

2.3 Size and Type of Production Facilities 51

a. Cost of Rent 51

b. Dimensions 52

c. Blueprint 53

d. Equipment/Furnitures/Fixtures and Prices 54

Suitability of Production Technology 56

3.1 Providers and Suppliers 56

3.2 Competitiveness of Technology and Equipment 58

3.3 Limitations or Constraints of Technology 59

and Equipment

Raw Materials 61

4.1 Estimate of Raw Materials and Inventory Needed 61

4.2 Current Trend and Future Availability 62

4 Organizational Feasibility 64

Business Structure 64

1.1 Business Form 64

1.2 Manpower 65

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 1.3 Governance, Lines of Authority and Decision-Making 65

Structure

Organizational Structure 67

2.1 Organizational Chart 67

Business Policies 69

A. Quality Standards 69

B. Safety Measures 70

C. Operating Policies 71

D. Liability Policies 72

E. Waste Management 73

F. Reward System on Employees 74

G. Legal Requirements 74

5 Financial Feasibility 76

Capital Requirements 76

Discussion how the capital needs could be met 77

Income and Cost Analysis 77

3.1 Assumptions of the Proposed Business 77

Return On Investment 86

Payback Period 87

Net Present Value 88

Liquidity Ratio 88

Solvency Ratio 89

Interpretation 90

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 6 Conclusion 93

Results and Findings 93

Conclusion 94

Appendices 95

References 105

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 List of Tables

Table Page

1 Timetable of Beyond the Walls 5

2 Price Competitiveness 17

3 SWOT Analysis 19

4 Action Plan 24

5 Assumptions of Demand and Sales Projections for Space Only 34

6 Assumptions of Demand and Sales Projections for Dance Class Only 36

7 Assumptions of Demand and Sales Projections for Events Place Only 38

8 Estimated Demand for Each Business Activity 40

9 Distribution System and Service Cost 41

10 Production Schedule of Beyond the Walls Studio 43

11 List of the equipment, furniture and fixtures, and other 54

needed facilities for the operation of Beyond the Walls

12 Estimate of Raw Materials and Inventory of the Beyond the Walls 62

13 Organizational Structure of Beyond the Walls Studio 68

Staff with their corresponding Salaries

14 Start Up Cost of Beyond the Walls Studio 76

15 Income Statement 79

16 Balance Sheet (in pesos) 80

17 Statement of Changes in Equity (in pesos) 83

xii
18 Statement of Cash Flow 85

19 Return on Investment 86

20 Payback 87

21 Net Present Value 88

22 Liquidity Ratio 88

23 Solvency Ratio 89

xiii
 List of Figures

Figures Page

1 Business logo 8

2 Flowchart of the production process 45

3 Vicinity map 50

4 Beyond the Walls Studio blueprint 53

5 Beyond the Walls Studio organizational chart 67

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 Chapter 1

Introduction

Description of the Project

The studio rental space, a haven for artists seeking a creative workspace, is

situated in the vibrant Jaro district of Iloilo City, the center of culture and dubbed as a city

within a city. The project primarily aims to meet the increasing demand for specialized

open-space that can serve the particular requirements of artists, especially dancers,

learners, and aspiring professionals, in pursuing their passions and contributing to the

vibrant cultural landscape of Iloilo City.The rental spaces in Iloilo City are for office

spaces, where the city covered 30% of the total provincial office deals back in 2021

(Colliers, 2021). While it indicates a reasonable supply of these spaces, they are

deemed generic in nature and are not applicable to certain demands. Investigating the

feasibility of this project, it looks into the present condition of the market, particularly the

availability and need for studio rentals. It assesses the proposed business' financial

sustainability by taking into consideration variables including projected income,

operational expenditures, and initial investment costs. Along with weighing the studio

rentals and how they foster creativity and comfort, it also assesses the probable impacts

on the local artistic scene. In addition, by offering flexible rental options and amenities

tailored to the specific needs of artists, the proposed studio rental space targets to

provide a conducive environment for creative expression and collaboration. The studio

will explore various business opportunities by offering places for workshop sites, events

and hosting dance classes. Beyond catering to professionals, the studio will also be a

1
great asset for students looking for a convenient and dedicated workspace. Therefore,

by conducting this study, it demonstrates the financial feasibility of the project and

highlights its potential to cultivate innovation and economic development in the region.

Vision

To become the most sought-after studio rental space in Iloilo City.

Mission

To establish a network of affordable and convenient space that supports the

growth and development of the local arts scene.

Objectives

This project aims to explore the feasibility of establishing a studio rental space in

the district of Jaro, Iloilo City with the following objectives:

1. To provide flexible rental facilities for various creative activities.

2. To foster creativity and comfort in the workspace.

3. To promote indoor, healthy options to creative groups and individuals .

4. To establish a studio that supports local artists and performers.

5. To aid the problem of performers in seeking out convenient space for practicing.

6. To expand services to institutional and community-based clients.

Project Location

The Plaza Rizal St., Jardeleza, Jaro, Iloilo City, provides an ideal location for the

proposed studio rental space. As it experiences a 21st economic boom, with new real

estates, hospitals, banks, and retail developers opening in the area it also offers a

2
stimulating environment for artists. Its strategic location near the historic Jaro Cathedral,

along with ample parking, proximity to various amenities and at the side of the main

road, ensures easy access and a thriving community. This prime location will not only

draw local artists but also visitors, contributing to the city's economic growth.

Organization and Administration

Beyond the Walls: A Feasibility Study on Studio Rental Space in Fostering

Creativity and Comfort at Jaro, Iloilo City, will be a limited partnership type of

organization. In this specific partnership, the organizational structure is designed to

ensure efficient operations and effective management. The business falls under the

limited partnership type because the partners involve one general partner and three

limited partners who will be actively involved in the management of the business and will

share the financial responsibilities. Thus, a partnership allows decision-making to be

shared, and individual expenses are small. The profits and losses that the business

generates will be divided by a 40:20:20:20 ratio to ensure fairness and that each partner

benefits mutually, with regards to their individual contributions to the business. The key

positions within the partnership are:

Chief Executive Officer (CEO): The CEO serves as the highest-ranking

executive within the partnership. Its primary responsibility is to provide overall strategic

direction and leadership. The CEO's duties include:

● Developing and implementing the company's long-term vision and goals

● Overseeing the operations of all departments and ensuring their alignment with

the company's objectives

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 ● Representing the partnership in external dealings and negotiations

● Making major strategic decisions and resolving conflicts

Head of Operations: The Head of Operations & Administration is responsible for

the day-to-day management of the partnership's operations. The duties include:

● Ensuring the smooth functioning of all administrative tasks, such as human

resources, facilities management, and procurement

● Overseeing the implementation of operational policies and procedures

● Managing the partnership's physical assets and resources

● Coordinating with other departments to ensure efficient workflow

Head of Marketing: The Head of Marketing & Advertising is responsible for

promoting the partnership's products or services and building brand awareness. The

duties include:

● Developing and implementing marketing strategies and campaigns

● Managing partnership's advertising and public relations efforts

● Conducting market research and analysis

● Analyzing customer data to identify trends and opportunities

Head of Finance: The Head of Accounting & Finance is responsible for

managing the partnership's financial affairs. The duties include:

● Preparing financial statements, including income statements, balance sheets,

and cash flow statements

● Overseeing the accounting and bookkeeping functions

● Managing the partnership's tax obligations

4
 ● Developing financial forecasts and budgets

Time Duration

The studio rental space needs a comprehensive feasibility study to ensure

viability and success of operations. Therefore, the business partners embraced the

following timeline and key factors to ensure streamlined actions outlined below:

Activities Predecessor Start Date Finish Date Duration

Activity

A .Conduct Feasibility None

Study

Planning and August 2024 September 3 weeks

Preparation 2024

Market Research and September September 7 days

Analysis 2024 2024

B. Financial Planning A
and Analysis

Develop Budgetary Plan September October 2024 2 months

and Capital loan 2024
requirements

Formulate Financial September October 2024 7 days

Forecasting 2024

C. Extensive Planning B October 2024 December 2024 3 months

and Research

D. Development and C
Construction

Compliance of Legal December January 2025 1 month

and Regulatory 2024
Requirements

Acquisition of rental
space.

5
Outsourcing of Interior
Designer and General
Contractor

Renovation January 4, April 4, 2025 4 months

Implementation 2025

E. Operation and D
Management

Marketing and April 5, 2025 May 1, 2025 1 month

Promotion
● Booking &
Scheduling
● Maintenance

Soft Launch of Studio May 2, 2025 May 9, 2025 7 days

Grand Opening: Studio May 10, 2025 May 10, 2025 1 day

Studio Operation May 11, 2025 December 31, 8 months

2025

F. Operation and E
Management

Hiring of staff December, January 1, 2026 1 month

2025

Studio Operation January 2026 December 2029 4 Years

Table 1: Timetable of Beyond the Walls: A Feasibility Study on Studio Rental

Space in

Fostering Creativity and Comfort at Jaro, Iloilo City.

In table 1, the proposed business project outlines a sequential timeline of

activities, organized into distinct phases. Commencing with a preliminary feasibility

study, the project will transition into market research and financial analysis that will start

on the date of August 2024, and will finish by September 2024, with extensive planning

and research until December 2024. Following these preparatory stages, construction

and development will be undertaken, culminating in the launch of operations, which will

6
begin in December 2024, and shall be in construction for four (4) months until May 2025.

Subsequent phases encompass marketing, promotion, and ongoing

management, with the grand opening marking a significant milestone in June 2025.

Thus, the project's timeline is designed to optimize resource allocation and

ensure timely completion of each phase, thereby maximizing the potential for

business success.

Business Activities

This project aims to widen its market opportunities with the following:

Workshop Site. Gives artists a place to develop their self-confidence, on-stage

presence, acting abilities, and a space they can work in their own accord.
● Dance Workshop

● Personal Space

Hosting Classes. Provides a platform for performers to express themselves and

learn about different dance techniques and styles.

● Zumba

● Dance Class

Events Place. Offers a comfortable, convenient, and safe space, making it

possible for people to hold successful and unforgettable events.

● Birthday

● Gender Reveals

● Christening

● Intimate Celebrations

7
Business Logo

Figure 1. Logo

The letter "B" stands for a transcending of limits. It implies an attitude that

transcends boundaries, promoting inquiry, creativity, and boundless thought. The idea of

"walls" is reinterpreted with the slab of black wall and "B" for beyond. The physical areas

that promote comfort, creativity, and productivity are referred to as "walls" in this context.

8
 Chapter 2

Market Feasibility

This chapter presents the market feasibility of the proposed business Beyond

the Walls: Studio Rental Space at Jaro, Iloilo City. The following parts offer abstract

information regarding the studio industry description, competitiveness, market potential

as well as the categorized demand and sales analysis with the business’ corresponding

marketing strategies.

In this chapter the following market analysis and competitiveness were discussed

to give light on the proposed business’ market feasibility. (1) Industry Description, (2)

Industry Competitiveness, (3) Market Potential, (4) Demand and Sales Analysis, and (5)

Marketing Strategies.

Industry Description

Studio rentals are rooms that typically consist of a single, open-plan area. They

are often smaller and more affordable, making them popular among students, young

professionals, and individuals, offering a budget-friendly space option that caters to the

needs of a diverse range of individuals and serves as any space for how the customer

wants it to be.

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 1.1 Size, Scope and Nature of the Studio Rental

According to the 2020 census, Jaro has a population of 130,700 people, making

it the most populous district of Iloilo City. With the significant number of populations in

town, the number of studio spaces offered are sufficient to meet the demand of a

significant portion of the local population. Although it is not directly involved in providing

food or lodging services as traditional hotels or resorts, studio rentals still offer

accommodation options for individuals, making them a part of the broader hospitality

sector. The studio rental offers a space for workshops, dance practices, and events

room to the local market with high focus on students and young professionals who are in

need of space to practice their craft or to hold events.

1.2 Size, Scope and Nature of the Service

Studios are characterized by their small size; a compact and an affordable space

option. The studio rentals offer a variety of services, excellent training facilities, a clean

and comfortable environment, and workshops. The business aims to make a profit by

renting out studio spaces. And by providing outstanding customer services, the business

aims to attract and retain customers, students and young professionals in particular. The

studio will initially focus on the following services:

● Workshop Site

● Hosting Dance Class

● Events Place

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 1.3. Market Segments

The studio space rentals will be located in Jaro, Iloilo City, near the Jaro Church

and near the other establishments, like the Robinsons Jaro Mall, SaveMore, Banks, and

nearby schools and universities like St. Roberts International School College, Colegio de

San Jose, Central Philippine University and one ride from Iloilo National High School and

West Visayas State University. Also, according to the growing need for available spaces

to foster creativity, the studio will focus on two segments of customers:

· Segment 1 – students aging 15-22 years old

· Segment 2 – young professionals aging 23 years old and above

The studio space rentals target customers who are looking for a place that can

cater their needs towards achieving a specific outcome in their craft. The large student

population from nearby universities and colleges would be a primary target market

together with the young, working professionals seeking affordable and convenient places

that can hold professional events. Unexpectedly, middle-aged individuals who are active

in the health and fitness scene also represent a minor target market.

1.3.1 Life-cycle of the Industry

Studio rentals are generally affordable making them attractive to individuals with

limited budgets. The open-plan layout of studios maximizes space efficiency, allowing for

a more conducive experience. Studio rentals appeal to a wide range of individuals,

including students and young professionals.

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 Emerging

If people realize that studio rentals are good for creative activities and events, the

demand will rise. This could lead to higher rental prices, especially if there aren't many

more studios available. In order to generate income, the business can offer extra

services or amenities. But as the market gets bigger, new businesses might also start

offering studio rentals. To stay competitive, the existing studios will need to improve

offerings, lower the prices, or provide better customer service. The establishment of

studio rental spaces in Jaro, Iloilo City, appears to be a promising emerging market. This

business can capitalize on the growth potential by analyzing market dynamics and

addressing challenges.

Peak

When the number of available studio rentals exceeds the demand, the market

may be reaching its peak. If occupancy rates remain constant for a long period of time, it

could indicate that the market has reached a plateau. And if rental rates start to decline,

it may be a sign that the demand is weakening or that the competition is getting stronger.

As competition increases and demand stabilizes, profit margins may start to flatten or

decline. The management may need to strengthen their marketing efforts and offer more

competitive pricing to attract more customers, as retaining existing customers will be

crucial as new customer acquisition becomes more challenging. Thus, careful cost

management becomes essential to maintaining profitability in a competitive environment.

While growth may slow down, the business can still achieve profitability and

sustainability by adapting their strategies to the changing market conditions.

Mature

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 If the number of available studio rentals significantly exceeds the demand, if

there are consistent occupancy rates for a long time even during peak seasons, and if

rental prices are declining due to increased competition or decreased demand, it could

be a sign of a mature market. As competition intensifies and market growth slows, profit

margins may decline. Thus, management should implement marketing strategies, offer

additional products or services, or provide more competitive pricing to attract customers.

1.3.2 Future direction of the Proposed Business

By staying informed about market trends, adapting to changing circumstances,

and focusing on providing exceptional value to customers, studio rental businesses in

Jaro, Iloilo City can position themselves for long-term success.

Market Trends and Opportunities

As Jaro, Iloilo City continues to grow and develop, the demand for

affordable spaces is likely to increase. And with the proliferation of various online

platforms such as Facebook, Instagram, and X (formerly called twitter), the shaping of

the market will continue, and make it easier for potential customers to find the place and

book accommodations.

Future Direction for Studio Rental Businesses

Given the growing popularity of studio rentals especially among students and

young professionals, the future direction of the market in Jaro, Iloilo City appears

promising. The management needs to consider offering additional amenities and

services to differentiate the studio space rentals, such as garments and other equipment

for future projects, or community events such as seminars by partnering with the Local

13
Government Unit, and embrace technology to improve efficiency, enhance customer

experience, and attract a wider audience. Also, incorporate sustainable practices into the

operations to appeal to environmentally conscious customers and explore partnerships

with other businesses or organizations to create synergies and expand their reach.

1.4 Market Trends

In launching a new Studio Rental Space , effective promotion is one way to

attract customers and ensure a successful start. With the growing demand for studio

rental spaces in Jaro, Iloilo City, here are some of the market trends to consider:

Social Media Platforms. Facebook, Instagram, Twitter, and Tiktok are the

frequently used applications in the Philippines. With its reach, online promotion will be a

lot easier. All these social media platforms will contain the business’ information such as

the location, services offered, and opening hours with regularly posted photos and

videos. They will also serve as means to communicate with the customers.

Video Tour. This allows customers, especially hours away from Jaro, Iloilo City

who wanted to inquire, an overview of the rental units, to give them an idea of the size

and capacity of the space. In doing this, the company should hire an expert in this field.

Word of Mouth. Iloilo City has knit and diverse dance community. By fostering

good connections and ethically showcasing care to the community, loyal and new

customers can be guaranteed. Collaborative opportunities will be high and a vast

network can be established.

14
Industry Competitiveness

Jaro, a vibrant district in Iloilo City, has witnessed significant growth in recent

years, making it an attractive location for various businesses, and this includes studio

rental spaces. This analysis will delve into the market dynamics, opportunities, and

potential challenges to support the proposed business venture.

Competitive Landscape. Although there are various open places to conduct

artistic activities, and with the existence of a traditional rental market in the city of Iloilo,

the availability of studio-specific, and enclosed open-spaces may be limited. And the

demand for private studio rentals may still be significant, especially among individuals

who prefer their own space. This presents an opportunity to cater to a niche market and

offer other products or services.

Economic Factors. Iloilo City's economy has been steadily growing, driven by

factors such as tourism, manufacturing, and services. This economic growth can lead to

increased demand for studio rentals. And with Jaro Iloilo City being the center district of

Iloilo City, this makes it a desirable and convenient location for students and

professionals seeking budget-friendly rental space options.

Potential Challenges. Understanding local property taxes and regulations is

crucial for operating a studio rental business. And over time, the demand for studio

rentals may fluctuate depending on factors such as the academic calendar and tourist

seasons. But while public places like the plaza offer a realistic and free option, it may not

provide the privacy and services that studio rentals offer. And with the growing student

15
population, rising number of professionals, and the increasing popularity of remote work

create a favorable environment for this type of business.

2. 1 Competitors

The competition is analyzed based on Porter’s five forces analysis which

is a marketing tool that identifies and analyzes the business’ existing competitors within

Iloilo City. It is important to examine the various competitors in order to know the empty

gap to penetrate the market.

The following are the direct competitors:

● The Movement Space

Location: West Timawa St., ICAG, Jaro, Iloilo City, Philippines

Description: Dance Studio has been in the market since February 4

2019, that pays for instructors with fixed and commission based. Regular classes

are also fixed while the owner's friends are commissioned. The first rental space

in Iloilo that offered aerial, barre, and sculpt classes. Place has regular dance

class every week which maintains their profit.

Prices: Dance classes ranging from ₱400 - ₱3,800, Private coached

sessions- ₱800, Walk-ins ranging from ₱400 - ₱450, One week unlimited access

to all classes for first timers- ₱1,000, Studio rental for 1 hour for three persons-

₱600.

● PCD School of Performing Arts

Location: VALIANT Bldg., Mabini St. Brgy. Liberation, Iloilo City,

Philippines

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 Description: Dance Studio has been in the market since April 5, 2012.

Offers an open rental space, primary to intermediate ballet, contemporary street dance

classes. The school is well-awarded and is highly regarded as one of the top performing

art schools in iloilo

Prices: Rental space per hour without AC-₱350, rental space per hour

with AC-₱450

2.2 Price Competitiveness of Service

Indicated are the following competitors with their corresponding price range in contrast to

Beyond the Walls Studio.

Competitor Location Year Services Price per Target Comparison to

Establ Rental (₱) Market Beyond the Walls
ished Studio

The West 2019 Dance ₱400- Dance Generally lower prices

Movement Timawa St., classes, ₱3,800 enthusiasts, for classes; however,
Space ICAG, Jaro, coaching Persons in private sessions are
Iloilo City sessions, the Artistic slightly higher than
Open Space Scene the upper range of
Beyond the Walls.

PCD VALIANT 2012 Open rental ₱300 - Dance and More affordable
School of Bldg., space, ballet, ₱400 art students, hourly rental prices,
Performing Mabini St. contemporar fitness but primarily for
Arts Brgy. y street groups classes rather than
Liberation, dance multi-purpose events.
Iloilo City classes

Table 2: Price Competitive of Beyond the Walls: A Feasibility Study on Studio Rental

Space in Fostering Creativity and Comfort at Jaro, Iloilo City.

Table 2 outlines a price competitiveness analysis for "Beyond the Walls,"

presenting a comparison with key competitors in the studio rental market within Iloilo City.

17
This analysis encompasses the location, year established, services offered, price per

rental, target market, and a comparative evaluation of each competitor's positioning

relative to Beyond the Walls Studio.

The first competitor, The Movement Space, situated West Timawa St., ICAG, Jaro

Iloilo, City operational since 2022, offers a variety of dance classes, and other fitness and

recreational space for rental. Prices range from ₱800 - ₱3,000, the price for rent is only

600 pesos for 1 hour for 3 pax. This studio targets dancers aged four and above, ranging

from beginners to advanced practitioners. Although it presents a lower cost per service

and specializes in dance classes, its limited space for non-dance-related events may

restrict its market reach. In contrast, Beyond the Walls Studio can offer a broader range

of services, making it more attractive to a diverse clientele and it offers as low as 500

pesos for 1 hour that can accommodate 15 pax.

Finally, PCD School of Performing Arts, founded on April 5, 2012, situated at

VALIANT Bldg., Mabini St. Brgy. Liberation, Iloilo City, Philippines. The studio specializes

in open rental space, offering primary to intermediate ballet, contemporary, and street

dance classes.he rental space is priced at ₱300 per hour without air conditioning and

₱400 per hour with air conditioning. The primary target market includes dance and as well

as fitness groups. With its low rental rates, PCD School of Performing Arts can attract

budget-conscious clients, which may pose a competitive challenge to Beyond the Walls

Studio in the realm of affordability for class rentals. While it provides lower pricing, its focus

on niche markets may limit its flexibility in service offerings compared to the versatile

options available at Beyond the Walls Studio.

18
 2.3 SWOT Analysis

The Beyond the Walls Studio adopted the SWOT analysis as a strategic planning

tool used to identify the business' Strengths, Weaknesses, Opportunities, and Threats.

Strengths Weaknesses

Location Competition

Affordability Seasonal Fluctuations

Growing Demand Limited finance

Low Maintenance Few permanent customers

Flexibility

Opportunities Threats

Niche Market Economic Downturn

Value-Added Services Regulatory Changes

Technology Integration Natural Disasters

New and current competitors

Table 3: SWOT Analysis of Beyond the Walls: A Feasibility Study on Studio

Rental Space in Fostering Creativity and Comfort at Jaro, Iloilo City.

Strengths

The first internal factor is represented by the strengths of the company. The

studio rental spaces will have a strategic location being placed beside the Jaro Church

and near the establishments and educational institutions where there is a high density of

people flocking, especially young ones. Because Jaro is popular for budget-conscious

renters in Iloilo City, its affordability, coupled with its proximity to the city center, makes it

19
an attractive choice for those looking for a cheaper area. Next is the growing demand.

With a thriving educational landscape, Iloilo attracts a large number of students from

both within and outside the city. Studio rentals offer a convenient and affordable space

option for these students, providing them with a private space to do academic activities.

And as Iloilo City continues to develop economically, it's drawing more professionals to

the area, making these studio rentals a great workplace. Low Maintenance. Since studio

rentals are small spaces, they require less maintenance and cleaning compared to

larger units, reducing overhead costs for renters. And lastly, the strength is flexibility. As

discussed in Chapter 1, business activities and studio rentals offer a high degree of

flexibility that can be a significant advantage for many customers.

Weaknesses

Economic downturns can impact the rental market, leading to increased

competition and lower rental rates. Although there is not much established business in

town, studio rentals often compete with public places where it is free. Another thing is

that the demand for studio rentals may fluctuate depending on factors, particularly the

academic calendar, where students have a summer break of two months. A decline in

demand for studio rentals in areas near educational institutions as students return home

or travel will be felt. With limited finance, it can be a challenge for individuals or

customers who are seeking studio rentals alone, as studio rentals in desirable locations

can be expensive, making it difficult for individuals with limited financial resources to

afford them. And lastly, the weaknesses are the few permanent customers. A limited

number of permanent customers can be a significant weakness for studio rental

businesses. This can lead to high vacancy rates that can reduce rental income and

increase operating costs, the need to continuously attract new customers that can

20
increase marketing expenses, and relying on an increase of new customers that can

make income less predictable and more vulnerable to market fluctuations.

Opportunities

First on the opportunities is the niche market. By identifying and targeting specific

niche markets, studio rental spaces can differentiate themselves from competitors in

order to attract a customer and achieve sustainable growth. Another one is value-added

services. By offering other value-added services, studio rental spaces can enhance the

overall customer experience, gain a wider range of customers, and increase their

satisfaction and loyalty. And lastly, the technology integration. Utilizing technology to

streamline operations, such as online booking and property management software, can

improve the efficiency of the business. By embracing technology, studio rental

businesses can enhance their operations, improve their customer satisfaction, and stay

competitive in the fast, evolving market.

Threats

As this business primarily targets students and young professionals, a decline in

the local economy or a decrease in employment rates could lead to a decrease in

demand for studio rentals. Apparently, if there are regulatory changes, such as changes

in laws or property taxes, this will greatly affect the profitability of the business. Another

threat to the studio rental spaces is the natural disasters. Natural disasters, such as

typhoons, can pose risks to the property and can potentially disrupt rental income. Next

for the threat are the new and current competitors. With the studio rental market being

highly competitive, with new competitors constantly emerging, these competitors can

pose a significant threat to the established businesses.

21
2.4 Factors Affecting the Proposed Business (PEST Analysis)

PEST analysis is a strategic planning tool used to identify external factors that

can affect a business. PEST stands for political-legal, economic, socio-cultural, and

technological factors. This part of the bachelor thesis will deal with the current market

situation, which may directly or indirectly affect the establishment of a studio rental

space.

Political-legal factors

The most important legislative factors in the context of a business plan include

regulations that affect business in general and the operation of the studio rental spaces.

Furthermore, the growth of the minimum wage and decrease of the inflation rate can be

considered as a tool for further development, as people who earn more spend more. The

Philippines has generally maintained political stability in recent years, which can be

conducive to business growth. National policies related to taxation, labor, and economic

development can have a significant impact on businesses. On the other hand, the tax on

rental income in the Philippines, including Jaro, Iloilo City, is generally based on the

income tax rates outlined by the Bureau of Internal Revenue (BIR). These rates are

progressive, meaning that the higher your income, the higher the tax rate. The local

government in Iloilo City plays a crucial role in shaping the business environment

through policies, regulations, and infrastructure development. Understanding and

addressing local issues, such as traffic congestion or infrastructure limitations, can be

important for businesses operating in the area. The political environment in Jaro, Iloilo

City, is generally conducive to business activity. However, the business should stay

22
informed about political developments at both the national and local levels and be

prepared to adjust their marketing strategies.

Economic Factors

This factor plays a significant role in shaping the demand and pricing of studio

rental spaces in Jaro, Iloilo City. A growing local job market, particularly in sectors such

as IT, BPO, and manufacturing, can increase demand for studio rentals, especially

among young professionals. And with the high unemployment rate in town, it can lead to

decreased demand for studio rentals as potential customers may struggle to afford the

rent. Investments in infrastructure, such as transportation and utilities, can make Jaro,

Iloilo City, more attractive to customers. But with the increasing demand for studio

spaces and redevelopment projects in town, this can lead to increased property values

and higher rental rates for studio rentals. Another economic factor to consider is the

rising inflation, which can increase the cost of living, including rental prices, putting

pressure on customer's budgets.

Socio-economic Factors

Jaro, Iloilo City, is surrounded by university students and young professionals.

This factor plays a significant role in shaping the demand for and characteristics of

studio rental spaces in the vibrant town of Jaro. The location of studio rental spaces is

just right beside the Jaro Church, where there are schools in the area, making it quick for

people to be aware of the business. Moreover, Robinsons Jaro Mall, Banks, SaveMore,

numerous food stalls, and the St. Roberts International School College are in short

proximity. With the growing number of young professionals in Iloilo City, this can

increase the demand for a modern, convenient studio rental space for professional use.

23
The relatively affordable cost of living in Jaro can make studio rentals a more accessible

option for many people.

Technological Factors

With the rapid emergence of technology in this modern world, it has become a

standard within the industry. As a result of this, the customers can enjoy and may also

extend their stay in the studio. Therefore, the studio space shall include new

technologies, which can be a modernization and improvement of equipment such as

speakers and microphones. Moreover, it is essential for the studio to have a Wi-Fi

connection so that the customers can surf the internet or take a photo or video from their

stay in the studio and post it on social media platforms, which can also help promote the

business. Given that the location of the studio space is just beside the Jaro church with

the national highway in front of it, it makes transportation easy and accessible for

everyone. This in turn also acts as a competitive advantage.

2.5 Competitive Efficiency Plan

Businesses must constantly adapt and evolve to stay competitive, and for

Beyond the Walls Studio, it will continue to provide exceptional services and deliver an

outstanding customer experience. Here outlines the following action plan key strategies

to ensure the long-term competitiveness of the proposed business.

Goal: To sustain the competitiveness of the Beyond the Walls Studio Space Rental.

Action Step(s) Person(s) Timeline: Needed Evaluation

Responsible: Start/End Resources

Continuous Head of May 2025 - Customer Conduct periodic

Improvement and Operation and December Feedback, evaluation, seek
Adaptation Administration 2029 Market customer feedback

24
 Research, & and stay updated
Internal on industry trends.
Assessments

Strengthen Head of May 2025 - Digital Marketing Enhance online

Marketing and Marketing and December Tools, Creative presence, create
Branding Advertising 2029 Assets, & high-quality
Marketing content, and
Expertise utilize local
marketing
channels.

Enhance CEO and May 2025 - Financial, Upgrade

Amenities and Organization December Human & equipment,
Facilities Heads 2029 Material improve the
Resources studio's
infrastructure, and
create a positive
atmosphere.

Foster Community Head of May 2025 - Event Planning Organize events

and Network Operation & December & Management and workshops,
Administration 2029 Tools, collaborate with
and Head of Communication local arts
Marketing & Platforms, & organizations,
Advertising Community implement referral
Building programs.
Activities

Expand Services Organization December Financial & Explore new

and Offerings Heads 2029 Human services,
Resources and collaborate with
Strategic local businesses,
Partnerships and identify
potential new
markets.

Pricing and Head of January Market Conduct market

Revenue Accounting 2025 - May Research Data, research on
Management and Finance 2025 Financial Data studio’s pricing,
and Pricing explore revenue
Tools streams, and
implement cost-
saving measures.

Sustainability and Organization May 2025 - Dedicated Adopt

Social Heads December Personnel, environmentally
Responsibility 2029 Financial friendly practices
Resources, and and Support local

25
 Partnerships & initiatives.
Collaboration
Table 4: Action Plan Table of Beyond the Walls: A Feasibility Study on Studio

Rental Space in Fostering Creativity and Comfort at Jaro, Iloilo City.

In table 4, the proposed business project outlines an organized action plan

specified into distinct action steps to sustain the competitiveness of the business. Here,

continuous improvement and adaptation will be adopted to ensure the business remains

relevant and responsive to market conditions. Strengthening of marketing and branding

to maximize a strong brand identity and help attract new customers. Also, to enhance

amenities and facilities to create an enjoyable experience and healthy space. Fostering

community and networking to build a strong sense of community and networking

opportunities. Expand services and offerings to diversify the business’ offerings,

increase revenue, and reduce reliance on a single service. Moreover, enhancing the

pricing and revenue management to have effective pricing strategies that ensure

profitability. And exemplifying sustainability and social responsibility to demonstrate the

business' values and attract socially conscious clients, which can then contribute to a

positive community. The various steps are to be done with their respective needed

resources and evaluations. The timeline is set to start from the grand opening of the

studio, while others are six (6) months from the opening and will continue until 2027.

Market Potential

Beyond the Walls Studio will provide affordable studio rental services by

providing well-equipped and accessible space at competitive rates, highlighting its

potential to cater to a diverse range of clientele. With this, the service is set to be sold by

26
utilizing a combination of traditional and digital marketing channels and creating

platforms for reservations.

The following are the various marketing channels:

● Social Media. Online platforms such as Facebook, Instagram, Youtube and

Tiktok will be established to showcase the studio’s creative atmosphere together

with its amenities and features. Contents like behind-the-scenes videos, reels,

time-lapse creations and artists' interviews will be shared to attract potential

clients.

● Online Advertising. By creating online advertising campaigns through social

media it can reach specific demographics and interests, such as students, artists

and other creative professionals.

● Public Relations. Building relationships with local media outlets and influencers

in the arts and creative industries to generate publicity and increase brand

awareness.

● Word-of-Mouth. Encourage clients to refer the studio to their friends and

colleagues. It is a powerful network to tap potential clients.

● Partnerships. Collaborating with local art schools, universities and creative

organizations will provide opportunities for cross promotion.

To streamline the reservation process and provide convenience for clients,

Beyond the Walls Studio will offer the following booking options:

● Digital and Online Reservations. A user-friendly online booking system will be

employed by the creation of various social media platforms, allowing clients to

27
 view available dates, select their preferred studio space capacity and make

reservations.

● Physical Reservations. A designated area in the studio will be set for in-person

reservations, providing a convenient option for those who prefer to book in

person. A dedicated phone line will be available for clients to call, inquire and

make reservations.

Through digital and online reservations clients can easily book while

they're on the go or at home. A user-friendly online booking system will be

employed through social media platforms. Physical reservations will also be

catered through the designated receiving area at the studio. Providing ease of

service to those who want to visit and book. For big reservations a cancellation

notice will be conveyed before completing the reservation process. This will avoid

any misunderstandings in the future. Through this approach Beyond the Walls

Studio Rental ensures flexibility and convenience to accommodate a wider range

of preferences

● Rates and Fees

Beyond the Walls offers three distinct services tailored to different needs:

Studio rental for either 15 pax, 25 pax, and 50 pax; Dance classes for beginners

street style class, house class, and zumba; and Event space rentals. Studio

rentals are fixed at the hourly rate for 15 pax it is 300 per hour, for 25 pax it is

500 per hour, and for 50 pax it is 1,000 per. Division boards will be placed for the

15 pax and 25 pax. This will maximize the space capabilities and can cater to

more clients. Dance classes are fixed at the price per head. Beginners Streetsyle

class and house class will last up to two hours and will cost 250 while the Zumba

session will last up to one hour and will cost 100. Event Space Rentals will only

28
 have a maximum capacity of 50 people and have an hourly rate of 1,000.

Additional services are also offered rented per event. For speaker and two

microphones it will cost 500, for projector it will cost 200, and for chairs and

tables it will cost 3,000. Negotiations for amenities and services can be done but

not in prices.

3.1 Demand and Usage Trends Analysis

Iloilo City is one of the most highly urbanized cities in the Philippines, ranking 5th

in innovation with the 2024 Cities and Municipalities Index. With this, the city's

investments grew by 65% in 2022, and the number of new businesses grew by 26.71%

since the pandemic. Herewith, Jaro, the lone congressional district, is one of the major

commercial areas in Iloilo City. It is home to numerous government agencies and

cultural landmarks and is centered around various colleges such as St. Roberts

International College, Central Philippine University, and Colegio de San Jose . Also, Jaro

is home to Jaro National High School. State Universities include West Visayas State

University and Iloilo Science and Technology University, while it is also near Iloilo

National High School. Considering the city’s unique characteristics and evolving needs

of its residents and businesses, factors influencing the demand on studio spaces are

due to the city’s economic growth, where sectors on IT-BPO, tourism, and manufacturing

drive demand for studio spaces for purposes like creative space and event venues.

The survey questionnaire's distribution of the responses from one hundred

(100%) randomly chosen respondents supports the findings of Beyond the Walls: A

Feasibility Study. The results show that the respondents comprised (78%) ages 18-22

years old, (12%) respondents were 23-27 years old, (5%) are ages 28-32 years old, and

(5%) are ages 33 and above. The respondents classified by gender were (57%) male,

29
(43%) female with their occupation, (81%) students, (11%) working, (5%) non-working,

and (3%) prefer not to disclose. The location consisted of (30%) respondents residing

within Jaro, Iloilo City, (22%) outside Jaro, (43%) from outside Iloilo City, and (5%) from

outside Iloilo. The respondents' interests vary from artistic scene (36%), business

activities (9%), community activities (22%), and event activities that comprised (33%)

responses.

Moreover, as the study aims to know the awareness of respondents on the

availability of an open-space studio rental in Jaro, Iloilo City, it showed that 30 (30%) of

respondents answered “yes” while 70 (70%) of the respondents answered “no.”

Significantly, the responses are deemed an advantage according to their interests and

preferences with regards to having a studio space in Jaro, Iloilo City that caters to their

specific needs; 88% answered “yes” and only 12% of the respondents answered “no.”.

With these, the respondents prefer to have their own space for activities and other

agendas, accumulating (94%) “yes” and (6%) “no” responses. Respondents also prefer

to rent a space for practice purposes, with a staggering (84%) of “yes” responses and

(16%) “no” responses. Also, gathering (91%) “yes” with only (9%) “no” when asked if

they prefer to have a space that can accommodate 15-50 people.

Additionally, the respondents indicated the factors influencing their decision to

rent the studio space: the price (11.9%), location (9.9%), and all of the above, including

price, location, amenities, and space, comprised 79 (78.2%) of the total responses. The

preferred hourly rental budget of respondents are (64%) for below 350 pesos per hour,

(30%) for 350-450 pesos per hour, only (4%) chose 450-550 pesos per hour, and (2%)

above 550 pesos per hour. Considering the features or amenities, (7%) air conditioning,

(1%) toilet and bath, and (3%) speakers and for air conditioning, toilet and bath, wi-fi,

and speakers, responses totaled (88%) for all of the above. The primary usage of the

30
studio space comprises (5%) workshop space, (25% open room), (32% creative

workspace), (37%) personal space, and (1%) chosen others. The specific location of the

studio space according to the responses was (57%) near the plaza, (32%) near colleges,

(6%) far from the plaza, and (1%) others. Also, with regards to the expected security

measures, (9.9%) expects for the studio to have a CCTV, (1%) for security personnel,

and (1%) an emergency exit, while the CCTV, fire safety equipment, security personnel,

and emergency exit comprised all of the above which gathered (88.1%) of the total

expected security measures. Respondents provided the data of the usage time of the

studio, which is once a month (31%), twice and more a month (48%), every trimester

(14%), and quarterly (7%).

The researchers assume the viability of the proposed business model, for

according to the 100 randomly selected respondents, there are interested in an open-

space studio rental at Jaro, Iloilo City, with 92.1 (93.9%) responding “yes” while only 6

(6.1%) responded “"no.” Correspondingly, respondents are also willing to pay an

additional fee for extra services offered by the studio space, with the majority of 89.1

(89.1%) responding “yes” and 10.9 (10.9%) responding “no.”

Furthermore, the studio shall have a steady pace of operations every December and

summer time for recitals, christmas parties and culminating activities, and October for

school occasions. Thus, the following data shows the viability of the proposed business,

revealing a significant market demand and indicating a strong potential for profitability

with the confirmed possible customer positive responses.

3.2 Segmented Market Opportunities

Beyond the Walls Studio Rental Space strategic location is at the heart of

Jaro, Iloilo City, near numerous establishments including fast food chains, supermarkets,

31
banks, Robinsons Jaro Mall, and many more, which presents several opportunities to

target specific niche markets.

The following are the potential niche market:

Local Residents and Tourists. Arranging workshops and community

events to interact with residents and provide short-term rentals to visitors at an

affordable price.

Students and Educators. Establishing an academic-oriented studio that

offers spaces for students to do their projects and other group activities. Also,

hosting workshops and seminars in partnership with local schools and colleges.

Creative Professionals. Catering to various creative fields like

production, fashion design, dance, music, and art, the specialized studio can be

maximized. As well as organizing networking events and meetups to connect

creative professionals in the area.

Hobbyists and Enthusiasts. Providing space for hobby clubs and

organizations to meet and engage in their activities. Also, offering workshops and

classes on various interests, like dancing.

Event Planners and Organizers. Offering a venue for small-scale events

like parties and product launches, as well as partnering with event planners to

provide additional services like catering, decorations, and technical support.

32
 Fitness and Wellness Enthusiasts. Renting out the space to fitness

instructors for classes and partnering with fitness professionals to offer

workshops and retreats.

3.3 Potential Share of the Market

Iloilo City, as an economic hub of the Philippines, has witnessed an

increase in demand for studio spaces. This is attributed to factors such as the growing

creative industry, which the city’s artistic scene thrives in, leading to a higher demand for

spaces for artists, photographers, and designers. Also, as one of the most urbanized

cities in the country, it has risen to startups and other entrepreneurial endeavors. With

the boom of e-commerce, this created a need for dedicated space for product

photography, packaging, and operations. According to the Philippine Statistics Authority,

at the 2022 Economic Performance of Provinces and Highly Urbanized Cities outside the

National Capital Region in Terms of Per Capita GDP, Iloilo City ranked 4th with 306,444

pesos per capita GDP as of 2022, contributing 15.2% share to the region. Moreover, the

city’s population increased up to 499,754; Jaro, the congressional district of Iloilo City,

has a population of 130,700 as of 2022. By industry, the city’s economy rose at 52%,

with other services at 41%; also, new businesses grew by 36.71%. Previously, in the first

quarter of 2024, the average gross rental yield stood at 5.19% but has increased to an

average gross rental yield in the Philippines, standing at 5.36% in 2024 (Shubina, 2024).

With the surge in both GDP and population, it indicates a positive economic outlook that

supports increased demand for commercial spaces like studios. Furthermore, a survey

was conducted and sent to 100 randomly selected individuals comprising both students,

professionals and artistic enthusiasts who willingly participated in the survey. The results

showed that out of 100 respondents, 92.1 (93.9%) of the total respondents answered

33
 “yes” indicating the willingness to rent out an-open studio space at Jaro, Iloilo City. Also,

extra services offered by the business gain a positive nod of 81.9% further implicating a

forward-looking future for the studio. Additionally, with the following results the

acceptability rate of the studio is at 92.1% which is determined by dividing the total

number of yes (92.1) responses from the total number of respondents (100) indicating a

strong support for the studios potential and concept.

VI. Demand and Sales Analysis

Table 5: Assumptions of Demand and Sales Projections for Space Only.

Busin Maxi Price Expe Expect Num Expe Expec Project Projected Growth Assumptio
ess mum for cted ed ber cted ted ed Annual Rate ns
Activit Cap Rent Num numbe of dema Monthl Annual Revenue (₱) (%)
y acity al per ber r of Divis nd y Rentals
hour of sessio ion per Dema
(airco Hour ns per spac week nd
n) s per day es (Renta
(₱) day used ls)

15 ₱300 2 2 3 4/7 96 1152 ₱691,200 5 High

pax hour sessio demand
For s ns due to the
Space growing
Only 25 ₱500 3 1 2 5/7 40 480 ₱720,000 5 interest in
pax hour sessio personal
s n space in
Jaro, Iloilo
City.
50 ₱1,0 4 1 1 3/7 12 144 ₱576,000 5
pax 00 hour sessio
s n

148 1776 ₱1,987,200

TOTAL

Table 5 provides a comprehensive overview of the average assumptions that

drive the demand and sales projections for the proposed studio rental business in Jaro,

Iloilo City. The table breaks down various factors affecting the demand for its annual

34
service. The space-only service is assessed based on the maximum capacity, price per

rent (air conditioning), expected number of hours per day, number of divisions on spaces

used, expected demand per week, expected monthly demand (rental), projected annual

rentals, projected annual revenue, estimated growth rates, and assumptions. The

expected annual rental is presented through the number of divisions the spaces can be

used per day. When classified according to the capacity of 15 persons with the rental

price of 300 pesos, it can occupy 3 spaces simultaneously with the expected 4 hours

duration of their rent. This is in line with the expected demand of 4 times a week and

generating a monthly demand of 96 occupancies. Therefore, projecting an annual rental

of 1,152 times with a projected revenue of 691,200 pesos. But, when classified

according to the capacity of 25 persons with the rental price of 500 pesos, it can occupy

2 spaces simultaneously with the expected 2 hours duration of their rent for half the day.

With this, the expected demand of 5 times a week generated a monthly demand of 40

occupancies. Therefore, projecting an annual rental of 480 times with a projected

revenue of 480,000 pesos. And when classified according to the capacity of 50 persons

with the rental price of 1,000 pesos, only 1 space can be occupied with an expected 4-

hour duration of their rent for the day. The expected demand of 3 times a week

generated a monthly demand of 192 occupancies in a year with a projected revenue of

576,000 pesos. Thus, all in all accumulated a projected revenue of 1,747,000 pesos,

indicating the growth of the business.

35
 Table 6: Assumptions of Demand and Sales Projections for Dance Class Only.

Business Capa Price Calculat Expec Expect Projec Projected Assumptions

Activity city per ed ted ed ted Annual
particip Number dema Monthl Annua Revenue
ant of nd per y l (₱)
Hours week Deman sessio
per d n
Session
Dance class

Beginner 25 ₱250 2 hours 3/7 12 144 ₱900,000 Moderately

s high demand
Streetstyl due to the
e Class growing
interest in
House ₱250 2 hours 2/7 8 96 ₱600,000 health and
Class recreational
activities in
Zumba ₱200 1 hour 2/7 8 96 ₱480,00 Jaro, Iloilo
Session City

TOTAL ₱1,980,000

Table 6 details the assumption based on the expected factors influencing the

demand and sales projection for Dance Class Hosting only. It is assessed through

maximum capacity, price per participant, calculated number of hours per session,

expected demand per week, expected monthly demand, projected annual sessions,

projected annual revenue, assumption, and the total projected revenue for the three

projected classes. For assumptions sake the median of the maximum capacity is taken

as the projected number of participants. Based on research, a beginners streetstyle

class takes an allotted time of 2 hours per session and is expected to be in demand 3

times per week. With that the expected monthly demand is 12. The projected annual

rental is 144 based from the product of the expected demand per week (3) to the

number of weeks in a month and then multiplied by the months in a year which results to

144. This will yield a projected annual revenue of ₱900,000. Hosting House dance

36
classes are expected to be in demand 2 times per week, resulting in an expected

monthly demand of 8 sessions. This leads to a projection of 96 annual sessions and

having ₱600,000 in projected annual revenue. Lastly, Zumba sessions will have a

calculated price per participant of ₱200 for an hour session. The expected demand is 2

sessions per week, leading to the expected monthly demand of 8 sessions. This results

in a projected annual demand of 96 sessions and the projected revenue of Zumba

session a total of ₱480,000

37
 Table 7: Assumptions of Demand and Sales Projections for Events Place Only.

Business Maxi Price Expect Expect Expecte Proje Projected Assumptions

Activity mum per ed ed d cted Annual
Capa hour Numbe deman Monthly Annu Revenue
city (aircon r of d per Deman al (₱)
) Hours week d Rent
(₱) per day (Rental als
s)

15-50 ₱1,000 4 hours 1/7 4 48 ₱192,000 Jaro is

pax increasingly
Event becoming a
Space destination
Rentals for corporate
events,
birthdays,
and private
Additional Services functions.

Speaker 15-50 ₱500 Per 1/7 4 48 ₱24,000

and pax event
Micropho
nes

Projector ₱200 Per 1/7 4 48 ₱9,600

event

Chairs ₱3,000 Per 1/7 4 48 ₱144,000

and event
Tables
₱369,600
TOTAL

Table 7 outlines the Assumptions of Demand and Sales Projections for Events

Place Only. The Event Space Rentals are charged at a fixed rate of ₱1,000 per hour

regardless of the amount of people as long as they are within 50 pax. The expected

number of hours the event would last is 4 hours and only expected to occur once per

week.This results in an expected monthly demand of 4 rentals and an annual demand of

38
48 rentals. As a result the projected annual revenue for Event space rentals amounts to

192,000. Additional services are catered to address expected equipment needs for event

rentals. Renting of speaker and microphones, projectors, and chairs and table are

included in the demand sales projections to fit the functionality of an events place. For

rental of speakers and microphones, the rental fee remains fixed at ₱500 per event. For

the projector, the rental fee is 200, and for the chairs and tables, the rental fee is 3,000.

These fees apply regardless of the specific number of participants as long as they don’t

exceed 50. The expected weekly demand is 1 rental per week, resulting in an expected

monthly demand of 4 rentals and an annual projection of 48 sessions. The projected

annual revenue from speakers and microphones rentals is ₱24,000, from projector

rentals is ₱9,600, and from chair and table rentals is ₱144,000. The total projected

annual revenue for additional services amounts to ₱369,600

The price per rental for each business activity reflects the cost customers are

willing to pay for using the space, varying according to the nature of the service

provided. Higher-priced services, such as event space rentals, are targeted at specific

clients requiring larger and more exclusive venues, while lower-priced services, such as

hosting dance classes, cater to regular and community-based clients. The projected

annual rentals are derived by multiplying the expected monthly demand by twelve

months, giving an estimate of how frequently each space will be rented within a year.

Finally, this is calculated by multiplying the projected annual rentals by the price per

rental. This figure indicates the potential revenue generated from each business activity.

39
 Table 8: Estimated Demand for Each Business Activity

Business Capacity Target Market Estimated Estimated

Activity Monthly Yearly
Demand Demand

Workshop 15-50 pax Artists, actors, 96 1152

Spaces performers,
(Space only) students

Dance Class 25 pax Dancers, 12 144

Hosting dance schools,
performers

Events Place 15-50 pax Event 4 48

organizers,
companies

Table 8 provides an estimate of the potential demand for each of the studio’s core

business activities, including workshop site rentals, dance classes, and events venue. The

demand is calculated monthly and annually based on different target markets and

capacities of each service. The Workshop Spaces are further divided into three categories

based on the number of participants it can accommodate, ranging from 15 to 50 people,

reflecting the varying sizes of workshops and events that the space will cater to. For

instance, the 15-pax Workshop Spaces are projected to be in high demand with 96

monthly rentals, while larger spaces accommodating up to 50 people are expected to be

rented less frequently, with only one monthly rentals. The Dance Class Hosting service,

which can accommodate up to 25 participants, is estimated to have 8-12 sessions per

month, reflecting its popularity among the local dance community. The Events Place

services are also expected to have a lower demand, with four monthly rentals,

respectively. This estimation is based on market research, target audience behavior, and

pricing strategies. The data presented highlights the potential number of customs.

40
Marketing Strategies

In this part, various marketing strategies with its corresponding costs are

indicated to project the possible customers, distributions system, service costs, and

other marketing platforms to be used in the marketing feasibility of Beyond the Walls: A

Feasibility Study on Studio Rental Space in Fostering Creativity and Comfort at Jaro,

Iloilo City.

5. Distribution and Marketing Cost

Customers can access rental services through the following channels:

Distribution System Service Cost (in Pesos) Per Trimester

Social Media Platform 3,000

Local Partnerships 3,500

On-Site Promotion 3,000

Total 28,500
Table 9: Distribution System and Service Cost of Beyond the Walls: A Feasibility

Study on Studio Rental Space in Fostering Creativity and Comfort at Jaro, Iloilo City.

Social Media Platforms. Engagement on platforms like Facebook, Instagram,

and Twitter will help reach potential customers. The cost for creating promotional content

and advertisements is approximately ₱3,000.

Local Partnerships. Collaborations with local businesses, event planners, and

art organizations will enhance visibility. Costs related to partnership development, such

as networking events or sponsorships, could range from ₱3,500.

41
 On-site Promotion. Promotional materials, such as brochures, flyers, and

signage, will be distributed in schools, strategic locations within Jaro and surrounding

areas. The production and distribution costs are estimated at ₱3,000.

The overall cost for maintaining the distribution system is projected to be ₱9,500.

42
 Chapter 3

Technical Feasibility

This chapter presents the technical feasibility of the proposed business Beyond

the Walls: Studio Rental Space at Jaro, Iloilo City. The following parts evaluate whether

the project can be implemented with existing or readily available technology, skills, and

resources.

In this chapter the following technical analysis and competitiveness were

discussed to give light on the proposed business technical feasibility . (1) Production

Process and Flowchart, (2) Location and Facility Needs , (3) Suitability of Production

Technology, and (4) Raw Materials.

Production Process and Flowchart

1.1 Production Schedule

Month Objective

December Compliance with Building Codes and Permit

Acquisition of rental space

Outsourcing and contracting of Interior

Designer and Contractor

January Renovation Implementation

February Structural modifications: Foundation, Walls,

Plumbing, Electricity, Beams, Roof, and
Floors

43
 March Finishings: Painting, Flooring, Lighting
Fixtures, Mirror, Doors, and Windows.

April Design: Touch-ups, Concept layout,

Lighting configuration, Technical
coordination, and Equipment set-up
Quality inspection and Safety standards
check

May Opening of Beyond the Walls Studio Rental

Space

Table 10: Production Schedule of Beyond the Walls Studio

1.2 Production Process

The proposed production process highlights three key factors: the acquisition of

studio space, hiring of the Interior Designer and Contractor, and the renovation

implementation. The acquisition will be done in the first month of the year 2025 and is

estimated to have a one month negotiation process and contract signing. The Interior

Designer is required to, but not limited to: Initial design consultation, layouting and space

planning, selection of materials, finishes, and furnishings, concept development, design

revisions and oversight during implementation. The Contractor is required to, but not

limited to: Project planning and coordination, structural modifications, hiring of

subcontractors, ensuring timeline, quality control, and oversight during implementation.

The proposed renovation duration is six months after having a conference with the

Interior Designer and Contractor.

The renovation process which will start in March and is assumed to end in

August of the year 2025 will start with the compliance of local regulation permits.

Building Permit, Electrical Permit, Plumbing Permit, Mechanical Permit, Fire Safety

Evaluation Clearance, Zoning Clearance, Environmental Compliance Certificate,

Barangay Clearance, and Signage Permit are needed and will be complied along with

44
the initial plan on the first month of renovation. The Foundation, Walls, Plumbing, and

Electricity are the core components that needed to be done foremost. Once the core

components are done renovations on the Beams, Roof, and Floors are followed through.

To give the space the aesthetic and functional feeling Furnishings should be thoroughly.

Placing wall textures, painting, flooring, lighting, mirrors, doors, and windows should be

in accordance with the design layout to achieve optimal outcome. Touch-ups and design

placements will be done in the month of July to obtain practical, sustainable, and

creative goals for the studio rental. Lastly, in the month of August Safety standards

would be checked alongside Quality Inspection if the renovation reached not only

practicality and functional purposes but also aesthetically pleasing and aligns with the

studio’s vision.

1.3 Flowchart of the Production Process

Figure 2: Beyond the Walls Studio Production Process

45
 The following production process is applied for an efficient flow of the renovation

and design project of Beyond the Walls. It begins with the creation of an optimal

budgetary plan, followed by hiring of the interior designer and contractor to create the

initial project plan. Once the design is created, it will undergo an approval phase; if it is

not approved by the key personnel it will be resubmitted and revised until approved.

After the approval the production moves forward with implementing the project's tasks.

Throughout the execution stage, renovation progress will be monitored by key

personnels. Finally, a quality and safety inspection of the space will ensure that the

project meets the required standards before completion. This structured approach

emphasizes efficiency, continuous monitoring, and quality assurance to achieve desired

outcome.

Location and Facility Needs

2.1 Proposed Location of the Business

a. Accessibility

The proposed business, "Beyond the Walls: A Studio Rental Service," will be

situated in Jaro, Iloilo City. This location is justified based on its strategic advantages in

terms of market access, raw material availability, transportation networks, labor supply,

and production inputs.

Market Access. Jaro, Iloilo City, is a vibrant district with a growing population of

students, artists, performers, and event organizers. The proximity to educational

institutions, art communities, and cultural hubs provides a steady demand for studio

rental services. This diverse target market ensures that the studio will cater to various

customer segments, including dance classes, workshops, events, and exhibitions.

46
 Raw Materials. While the studio rental business does not rely heavily on

traditional raw materials, it requires high-quality furniture, sound systems, lighting

equipment, and decor items to cater to different events. These materials are easily

sourced from local suppliers within Iloilo City, ensuring both availability and competitive

pricing.

Transportation. Jaro is well-connected by major roads and public transportation

networks, allowing easy access for customers and suppliers. The availability of public

transport systems like jeepneys and taxis also ensures convenience for clients traveling

to and from the studio.

Labor. The area provides access to a skilled labor pool, including instructors,

event coordinators, technical staff for sound and lighting, and maintenance personnel.

The presence of universities and training centers in Iloilo ensures the availability of part-

time and full-time workers, especially those with expertise in the creative and cultural

sectors.

Production Inputs. Key production inputs, such as audio-visual equipment and

maintenance 17, are readily available from local distributors. The strategic location within

the city ensures cost efficiency in acquiring these inputs.

b. Environmental Impact and Regulatory Requirements

The proposed business aims to operate in an environmentally conscious manner

by using energy-efficient equipment and sustainable materials in the studio design.

Additionally, a fire exit will be installed to ensure the safety of occupants during

emergencies, in compliance with local fire safety regulations. The business will also set

up three waste bins designated for biodegradable, non-biodegradable, and recyclable

47
waste to promote proper waste segregation and support environmental sustainability.

Furthermore, the business plans to install energy-efficient lighting and appliances to

reduce electricity consumption, contributing to a lower carbon footprint. Lastly, noise

control measures, such as soundproofing, will be employed not only to enhance the

studio's functionality but also to minimize any disturbance to nearby residents and

businesses. Given its minimal environmental footprint, the business is not expected to

generate significant waste or pollution. Moreover, to legally operate a studio rental

business in Jaro, Iloilo City, several regulatory requirements must be fulfilled to ensure

legal operation and community safety. The Unified Application Form serves as a

comprehensive document that consolidates various local permit applications, facilitating

efficient processing and adherence to local regulations. A Barangay Clearance is

necessary to confirm that the business is authorized to operate within the barangay,

ensuring compliance with local governance and community standards. A Fire Safety

Inspection Certificate from the Bureau of Fire Protection is crucial to ensure that the

premises meet fire safety standards, thereby protecting the business, its employees, and

the surrounding community from fire hazards. Registration with the Securities and

Exchange Commission (SEC) are required based on the business structure, ensuring

that the business operates under the legal framework applicable to its entity type.

c. Views and Opinions of the Community

Initial community feedback, derived from a survey with 100 respondents,

including artists, students, and event organizers, suggests a predominantly positive

reception toward the establishment of a creative space in Jaro. The majority of

respondents expressed enthusiasm regarding the proposed business with a positive

93.9% feedback perceiving it as a valuable addition to the community that would provide

48
accessible and affordable venues for practice, workshops, and exhibitions. Many

participants articulated a clear need for such a space to support their creative endeavors

and enhance collaborative opportunities among local talents. Furthermore, the feedback

underscores that the studio aligns with the cultural and artistic inclinations of the artistic

community here in Iloilo.

A one-on-one interview was conducted with esteemed choreographers in Iloilo

City. The questions posed to them were as follows: “How do you feel about Beyond the

Walls: A Feasibility Study on Studio Rental Space at Jaro, Iloilo City. As the project

primarily aims to meet the demand of a big enough space for artists especially dancers”

and “if implemented what do you think is the effect of having this business?” These

questions were created to gather deep insights on professional choreographers

regarding the potential benefits and implications of establishing a studio rental space. Sir

David Jaleco answered positively on both questions. He further emphasized the lack of

facilities Iloilo City has, with regards to big studio rentals. “This provides more

opportunities for bigger groups to rehearse which can provide them with enough mirrors

and speakers, and a space that is safe to be in”. Iloilo is a relatively safe city but

unknown factors that may arise from public spaces should not be taken lightly. He

finished the interview by supporting the cause and hopes to see it to be implemented in

Iloilo City soon.

Annabelle Javil, a student, dancer, and choreographer, believes that having

access to spacious studios, particularly for dance, is both a privilege and an opportunity.

These studios provide dancers with a space free of restrictions. Where the

choreographers can further enhance their creative artistry, giving the dancers a level up

when performing on stage. Ms. Javil’s insights on the impact of having the studio rental

space is divided. She observed that the space will either have a lot of customers which

49
can lead to overbooking or a few customers which lead to fewer sales. She noted that in

the dance community, peak demand typically occurs during holiday seasons, summer,

and school competition periods, such as the Private Schools Athletic Association

(PRISAA) and the Regional Association of State Universities and Colleges (RASUC).

Lastly, Jhun Mark Hasan-gas, also, a choreographer of a big dance group in

Iloilo felt very emotional and overjoyed at the same time, as this study,to him, implies

that the students reflected on the good impact this opportunity would give Iloilo. He

further stated that the Iloilo dance community gains more recognition, even attracting

international acclaim to the Philippines, with spaces like this and a demand for

workshops, Iloilo will surely be a place they'll want to visit. He reinforced his optimistic

viewpoint in response to the second question and concluded the interview by saying, “If

implemented, I will be very happy and proud.”

2.2 Vicinity Map

The business’ location is the key to a successful operation and overall growth. It

is important for any business to have a location that is very accessible and convenient

for customers. This section shows the location of the proposed business.

The location of the business will be at Plaza Rizal St., Jardeleza, Jaro, Iloilo City.

50
2.3 Size and Type of Production Facilities

a. Cost of Rent

Beyond the Walls Studio will adapt rental terms to access the space and provide

a conducive environment for performers, students and tenants who wish to rent a space

for their specific activities. With a rental cost of 40,000 pesos per month, inclusive of

plumbing and water, the studio offers a comfortable and affordable option for practices,

rehearsals, workshops, classes and events. A key feature of the space is the inclusion of

a comfort room, ensuring convenience for users. To accommodate a group of 15-50

students, dancers or guests in events, an estimated dimension of 204 square meters is

ideal, allowing ample space for movement and engagement. A contractor will be hired

by Beyond the Walls Studio to manage the studio's minor renovations together with an

interior designer who will concurrently employ the plan and carry out the interior design

scheme. They will enter into a formal commercial agreement to guarantee a seamless

process and the scope of work, deadlines, and terms of payment will all be specified in

this agreement. Assuming that the contractor and interior designer will share a 70:30

ratio on the cost of renovation of 500,000 pesos. Also, the contractor will be in charge of

acquiring the required tools and supplies with an electrician to handle electrical wiring

and electronic device installation of 46,000 pesos. A precise payment plan will be

specified in the contract to expedite the payment process and guarantee prompt

payment to the electrician, interior designer, and contractor. The studio owners hope to

reduce possible delays and increase the refurbishment process's efficiency by using this

methodical approach.

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 b. Dimensions

The Studio will comprise of various indoor amenities that would create a

functional space for the customers. The following spaces include a dimension of 5

meters by 8 meters for 15 persons which can accommodate 3 groups simultaneously,

two spaces for 25 persons which have a dimension of 7.9 meters by 8 meters, and the

overall dimension that can accommodate 50 persons is 15 meters by 8 meters. These

spaces are assessed to prioritize the needs of the groups that will rent the place. The

studio will also include a shared shower room, a toilet for men and women. Lockers will

be provided for those who want to leave their belongings outside the space as well as a

comfortable sitting area. The entrance will be an open concept which includes a

receiving area and a space for the security guard. The back part of the building has a fire

exit and a storage room allocated for equipment and other additional studio items.

52
c.

Figure 4.

53
 d. Equipment/Furnitures/Fixtures and Prices

Renovating studio space that caters to various needs of clients requires

the right

facilities for efficient and effective work. Below are the essential facilities to be

considered:

Qty Price (in Pesos) Total

Furnitures and Fixtures

Plastic Door 3 1,757 5,271

Door Lock 2 49 98
Door Knob 1 295 295
Faucet (La Fonza) 2 450 900
Mirror Wall 2 70 140
Toilet Bowl (with lid and flush) 2 3,999 7,998
Tissue Holder (LaFonza) 2 400 800
Hand Shower (Tatay) 1 295 295
Steel Hose (Tatay) 2 566 1,132

Total Furnitures and Fixtures 17 7,881 16,929

Tools and Equipments

Hammer 1 148 148

Pliers 1 156 156
Ladder 1 499 499
Screw Driver 1 310 310
Aircon with Ductwork (TCL) 4 14,000 56,000
Thermostat 1 2,304 2,304
Ceiling Loudspeaker (Honeywell L- 8 549 4,392
PCM06E)
Humidifier (Xiaomi Lite 2) 2 1,199 2,398
Industrial Fan (Asahi) 3 6,985 20,955
Water Dispenser (Union) 1 4,995 4,995
Mini Fridge 1 5,598 5,598
CCTV Cameras (Package 1 10,000 10,000
HIKVision) 2 436 872
Emergency Lighting 1 1,080 1,080
Fire Extinguisher (10 lbs) 6 350 2,100
Smoke Detector 1 35,640 35,640
Generator 2 1,200 2,400
Exhaust (Boston Bay) 1 31,992 31,992
Amplifier (Samson MXS3000) 2 4,589 9,178

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Wireless Microphone (JBL 2 2 1,112 2,224
system) 1 3,170 3,170
Microphone Stand (Samson MS45) 1 1,499 1,499
Projector 2 1200 (B1T1) 1,200
Projector Screen 30 82 2,460
Stand Fan 5 645 3,225
Monoblock Chairs 1 22,250 22,250
Folding Tables 1 6,300 6,300
Floor Polisher (Wilson)
Vacuum

Total Equipment 83 158,288 233,345

Supplies

Toilet Brush (Home Gallery) 4 219 876

Big Trash Can 3 668 2004
Small Trash Can 3 59 177
Garbage bag 72 roll 59 4,248
Toilet Cleaner (Tuff) 3.7 24 250 6,000
Insecticide (Target) 5 300 1,500
Floor Brush 1 59 59
Dust Pan 1 38 38
Feather Duster 1 95 95
Soft Broom 1 125 125
Wiper (Double-Sided Retractable) 2 140 280
Albatros 48 49 2,352
Cleaning Gloves 10 pack 102 1,020
Toilet Tissue 24 bulk 202 4,848
Handwash (Watsons) 52 199 10,384
Gauze Pad 1 pack 105 105
Medical Scissors 1 128 128
Band Aid 1 box 187 187
SalonPas 1 pack 110 110
Ointment 4 33 132
Betadine sachets 287 287
Cotton Balls 1 bottle 24 24
Cotton Buds 1 pack 11 11
Alcohol 1 pack 198 198
Bandage 1L 50 50
Medical Tape 1 pack 87 87
Manzanilla 1 tape 42 42
1 bottle

Total 268 3,826 35,367

55
Table 11: List of the equipment, furniture and fixtures, and other needed facilities for the

operation of Beyond the Walls: A Feasibility Study on Studio Rental Space in Fostering

Creativity and Comfort at Jaro, Iloilo City, and their prices.

Suitability of Production Technology

3.1 Providers and Suppliers

In every business operation, it is important to secure and have a good choice of

suppliers for equipment, furniture, fixtures and other raw materials to ensure the

company’s profitability, efficiency and overall success. The globalized market, centered

around a wide range of options to consider when it comes to materials for the business.

This includes local suppliers, national retailers and online marketplaces.

Local Suppliers, such as Imperial Appliance Plaza in Delgado Iloilo already

have a deep-rooted connection with the local community and offer quality products at

low prices. One of the primary advantages of local suppliers is their ability to provide

quick turnaround times and flexible payment terms. They offer a personalized approach

to customer service and source materials to the region's needs. Local Suppliers for glass

material and other maintenance materials are DEJ Glass in Tigbauan, Iloilo, and Iloilo

Supermart. Additionally, HIKVision CCTV Iloilo City and stores in YMCA Iloilo are for

equipment and other technologies and for interiors, Korean Blinds Iloilo. Also, by

supporting the local businesses it contributed to the economic vitality of the community.

This kind of supplier ensures long-term quality hardware than other appliances stores

that have high rates prices like Handyman Hardware.

National Retailers are those large-scale businesses that operate across the

country. Hardware stores, such as Citi Hardware in Oton, Iloilo and Dezine Depot at

Tanza St. Jaro, Iloilo City, Abenson Ayala Capitol in Bacolod, TGP Pharmacy and

56
Mercury Drug Store have established supply chains and distribution networks, which

ensures reliable delivery and high-end quality. They provide benefits like loyalty

programs and extended warranties. These types of suppliers have established

relationships with manufacturers and provide competitive prices compared to local

suppliers.

Online Marketplaces, such as e-commerce platforms offer a globe reach and

access to a wide variety of products at competitive prices.Materials for interiors are

sourced through Shopee and Lazada while equipment such as speakers, amplifiers and

others are sourced at Audiophile, 1200 Pres. Quirino Ave. Ext. Paco, Manila and JB

Music at Emerald Avenue, Ortigas Center, Pasig City Metro Manila. It is more

convenient and time-saving. They also offer rating features and reviews which can help

businesses evaluate the reputation of different suppliers. Thus, a vast selection of

products and services are ensured with quality turnout.

Additionally, the researchers chose to contact exclusive distributors and

providers (Lilibeth Tavarro) for personalized fixtures and furniture that is needed in the

interior and exterior of the studio space. Local suppliers can therefore provide

individualized service and assistance, while national shops offer a large selection of

high-quality goods and services. Because online marketplaces offer a wide range of

options and conveniences, local suppliers can provide individualized service and

support, while national businesses offer a wide assortment of high-quality goods and

services. Online marketplaces' ease of use and wide range of options. Evaluating

various factors, the researchers selected suppliers that catered to the specific needs of

the business to contribute to its overall success.

57
 3.2 Competitiveness of Technology and Equipment

The competitiveness of technology and equipment is a crucial factor in the

successful operation of the business. There is a diverse range of technology and

equipment available locally in the city, each with its own strengths a 20% and

weaknesses depending specifically on the brands. Equipment such as air conditioners is

highly competitive and consumes the greatest electricity at 46%, according to SolarNRG

Philippines. They are available in various brands and at different price points. Its

competitive advantage is centered around its cooling capacity and energy efficiency.

Inverter technology, on the other hand, improved the energy efficiency of air

conditioners. CCTV systems, fire safety equipment, and generators are all

advancements in technology driving innovation. The increasing demand for security

solutions has caused the surge of CCTV systems in various settings, especially in

commercial buildings . Fire safety equipment such as fire extinguishers and smoke

detectors is a mandatory requirement in many buildings and primarily in compliance with

the safety standards. Generators are essential for backup power in case of power

outages. Its competitiveness is influenced by fuel efficiency and portability, where diesel

generators are preferred for their reliability. Aside from ACs, industrial fans are also used

in various settings, including warehouses and restaurants, for factors such as airflow

capacity and durability that influence their competitiveness.

Moreover, floor polishers, vacuums, exhaust fans, and thermostats are highly

competitive due to their advancement, wherein they focus on durability and lead to more

powerful and efficient cleaning equipment, while airflow capacity is brought by exhaust

fans, and thermostats are popular smart home technology that can be connected to

other devices. Speakers, amplifiers, microphones, projectors, projector screens, and Wi-

Fi routers influenced sound quality and performance for achieving quality service inside

58
the studio. Also, humidifiers, water dispensers, and blinds. These products are less

competitive, with a smaller market size. However, factors such as quality, durability, and

aesthetics can influence their popularity. All things considered with the advancement of

the 21st century, the competitiveness of technology and equipment is due to factors

such as technological innovation, regulatory requirements, consumer preferences, and

economic conditions. The market being highly competitive, it is imperative to understand

the influence of these factors on business operations, therefore evaluate the

organization's decision-making in choosing technologies and equipment.

3.3 Limitations or Constraints of Technology and Equipment

The studio space rental business is reliant on advanced facilities and equipment

to function efficiently and safely. The essential components range from material to

sophisticated products, each playing an important role in the smooth operation of the

business. However, despite their substance, they are inclined with limitations and

constraints that may hinder the consistent production process. Identifying the limitations

and constraints of the following equipments and technologies namely: air conditioning,

CCTV, emergency lighting, fire safety equipment, generators, industrial fans, floor

polishers, vacuums, lights, speakers, exhaust systems, thermostats, humidifiers, water

dispensers, mini fridges, blinds, art display panels, amplifiers, microphones, projectors

and projector screens, Wi-Fi routers, fire extinguishers, and smoke detectors.

Air conditioning, while essential for comfort and productivity in the studio

environment, can be energy-intensive and contribute to greenhouse gas emissions.

Additionally improper maintenance or installation can lead to health problems due to

growth of mold and bacteria. Constraints include budget constraints, and local climate

conditions. CCTV Systems is limited in image quality in low-light conditions and potential

59
for data breaches, its constraints include the cost of installation and maintenance and its

privacy concerns. Emergency Lightingis limited in battery light and potential for

malfunctions. Constraints include regulatory requirements and maintenance costs. Fire

safety equipment, such as fire extinguishers and smoke detectors, requires regular

inspection and maintenance to ensure effectiveness. Constraints include its regulatory

compliance as well as budget. Generators, while providing backup power, can be noisy,

require regular maintenance, and may not be able to handle all power needs.

Moreover, industrial fans, floor polishers, vacuums and other cleaning equipment

can be noisy and contribute to air pollution, energy consumption, and potential damage

to floors if not not used properly. Constraints include budget constraints, maintenance

requirements, and other regulatory considerations. Lights, speakers, and exhaust

systems can also be sources of noise and pollution, and their improper use can lead to

energy waste and discomfort. Thermostats and humidifiers, while essential for

maintaining comfortable indoor environments, can be sensitive and require frequent

adjustments. Water dispensers and mini fridges, while convenient, can be energy-

consuming and require regular cleaning and maintenance. Blinds, art display panels,

amplifiers, microphones, projectors, and projector screens can be damaged or

deteriorate over time, requiring replacement or repair. Wi-Fi routers can experience

interference and signal loss, affecting connectivity and performance. Fire extinguishers

and smoke detectors, if not used or maintained properly, may not be effective in

preventing or mitigating fires.

These essential facilities and equipment are indispensable in modern society,

they are not without their limitations and constraints. These limitations can range from

energy consumption and environmental impact to maintenance requirements and

performance issues. Understanding these limitations is crucial for effective planning,

60
maintenance, and use of these facilities and equipment. By addressing these

constraints, we can maximize the benefits of these essential components and ensure

their continued reliability and safety.

Raw Materials

4.1 Estimate of Raw Materials and Inventory Needed

Raw materials refer to the fundamental components required for the operation of

the proposed studio rental service. These materials, while not consumable in nature, are

essential to creating functional and versatile spaces suitable for various events,

workshops, and artistic activities. The following sections provide an overview of the

materials necessary for equipping the studio to meet the needs of its target market.

A detailed estimate of the raw materials and inventory required for the operation
of "Beyond the Walls: A Studio Rental Service" is presented on table form.

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 Raw Materials/Inventory Needed

Wall, Ceiling, Floor Restroom First Aid Kit Maintenance

● Cement ● Wire Hose ● Gauze Pad ● Small trash

● Hollow blocks ● Bulbs ● Medical can
● Sand and ● Tiles Scissors ● Big trash
gravel ● Grout ● Band Aid can
● Electrical ● Door ● Salonpas ● Tissue
wiring ● Door knob ● Ointment ● Liquid
● Steel bars ● Water closet ● Betadine hand soap
● Tie wire and toilet seat ● Cotton balls ● Toilet
● Vinyl Dance ● Sink ● Cotton buds brush
Floor ● Faucet ● Alcohol ● Toilet
● Paint ● Mirror ● Bandage cleaner
● Brush ● PVC pipes (Domex)
● Paint roller ● Water motor ● Floor
● Paint tray pump brush
● Luminaire ● Drum ● Dust pan
● Soundproof ● Exhaust fan ● Feather
panels ● Hand shower duster
● Tiles ● Steel hose ● Window
● Tiles adhesive ● Tissue holder wiper
● Aluminized ● Soap
Insulation dispenser
● Flooring/ ● Rack (for
Marley toiletries)
Flooring
● Softwood

Table 12. Estimate of Raw Materials and Inventory of Beyond the Walls Studio

4.2 Current Trend and Future Availability

The materials, equipment, and furniture listed for the proposed studio business

reflect modern trends in studio design and functionality, emphasizing both aesthetic

appeal and practicality. Currently, there is a notable shift towards energy-efficient and

environmentally sustainable materials in construction and furnishing, such as LED

lighting, aluminized insulation, and soundproof panels, which have become more readily

available due to increasing demand for eco-friendly building solutions. This trend is likely

62
to continue as environmental awareness grows and stricter regulations are implemented

globally.

In terms of equipment, there is also a rising preference for technologically

advanced systems, such as smart air-conditioning units with thermostats, Wi-Fi-enabled

CCTV cameras, and energy-efficient backup power generators. These innovations

provide greater convenience and efficiency, making them highly sought after in modern

business settings. Additionally, soundproofing materials and acoustical design are

gaining importance, especially in the context of creative spaces like studios, to ensure

optimal sound quality and noise management. As for furniture, multifunctional and

space-saving items, such as folding detachable tables, as well as minimalist design

elements, are increasingly popular, driven by the need for flexibility and adaptability in

shared spaces. The trend towards using sustainable and durable materials for flooring,

wall treatments, and other furnishings is also expected to persist, with an emphasis on

long-term utility and lower environmental impact.

In terms of future availability, most of these materials and equipment are

expected to remain accessible due to advancements in manufacturing technology and

increased market competition. However, global supply chain disruptions and fluctuations

in material costs may occasionally affect availability and pricing.

63
 Chapter 4

Organizational Feasibility

This chapter presents the organizational feasibility of the proposed business

Beyond the Walls: Studio Rental Space at Jaro, Iloilo City. The following parts present

the various persons needed for the operation of the business. In this chapter the

following organizational analysis was discussed to give light on the proposed business

organizational feasibility . (1) Business Structure (2) Organizational Structure, and (3)

Business Policies

Business Structure

1.1 Business Form

One of the forms for the proposed business structure is the Limited Partnership.

This type of business is owned by two or more partners. This type of business structure

provides various advantages to the partners: First, the limited liability. Limited partners

are only liable for the amount of money they invest in the business. Thus, they cannot be

sued as individuals, unless they make something that makes them legally liable. And

second, the flexibility in management. The general partner has significant control over

the business's operations. On the other hand, limited partners can be passive investors.

This structure can be beneficial for businesses that need both active management and

capital investment. This allows the general partner to choose whether the business will

64
be member-managed business or a manager-managed-business, depending on their

needs and preferences.

Thus, in establishing a studio rental space that fosters creativity and provides a

comfortable working environment, the Beyond the Walls is classified as a Limited

Partnership.

1.2 Manpower

Meeting the potential clients’ needs are crucial in establishing businesses. And

discussing the availability of manpower gives them an overview of how their

expectations and needs can be met. To online operations, a dedicated social media

team will handle online inquiries regarding availability, pricing, and services of the studio.

For walk-in customers, a front desk employee will be there, ready and available to assist

the customers. Maintenance crews will ensure that the studio will remain clean, and

even provide support as needed. Electrical engineers will maintain equipment

functionality. And security guards will oversee safety. All staff will have direct lines of

communication with supervisors to address customer concerns promptly and efficiently.

And to maintain this manpower, Beyond The Walls will foster strong relationships with

staff, offer competitive rates and flexible work arrangements, and invest in training

programs to attract and retain customers.

1.3 Governance, Lines of Authority and Decision Making Structure

With regards to the bookings, beyond the walls will utilize booking and scheduling

through various online platforms to minimize scheduling conflict and will send an

automated response confirming the booking. And in case of reservations, a mandatory

65
full payment for the rent is required, to avoid no-shows and last-minute cancellation.

With regards to security, the beyond the walls will install surveillance cameras to monitor

activities in the studio. There will be a list of dos and don’ts regarding the use of the

studio pasted on the wall outside together with their penalties, and the surveillance will

help determine unpleasant use of the studio. And to help maintain the cleanliness of the

studio, the CLAYGO policy will be implemented, except on business activities where the

studio is rented out for events.

Having clear lines of authority ensures smooth operations for businesses of all types.

In Beyond The Walls, the ones who have the utmost authority are the business owners.

They are the most responsible for various tasks. The CEO serves as the highest-ranking

executive within the partnership. Its primary responsibility is to provide overall strategic

direction and leadership. In cases of the day-to-day operations, client relations, and staff

management, the authority lies within the CEO. Next, in cases of the day-to-day

management of the partnership's operations, the authority lies in the Head of the

Operations and Administration. Then, in case of the responsibility in promoting the

partnership's products or services and building brand awareness, the authority lies within

the Head of Marketing. And lastly, in managing the partnership's financial affairs, the

authority lies within the Head of Accounting & Finance.

A decision-making structure defines the process and roles for making organizational

decisions, ensuring efficiency and effectiveness, especially in complex situations. The

core team, such as the CEO, the operations manager, marketing manager, and the

finance manager are needed in the decision-making. There will be meetings to discuss

ideas, challenges, and opportunities with an open and honest communication. During

the meeting, there will be brainstorming sessions to generate creative ideas for the

66
improvement of the studio. The core team will foster a culture of innovation and

experimentation and implement feedback forms and surveys to gather input from clients

and staff. They will also analyze the feedback to identify areas for improvement. In the

process of making the decision inside Beyond The Walls, the marketing manager will

see how to market the new improvement for the studio while the operations manager will

ensure that the entire operation will be smooth. The finance manager will oversee and

approve the budget, and the final decision will lie in the hands of the CEO, whether or

not improvements will be approved or not.

Organizational Structure

2.1 Organizational Chart

Table 13. Organizational Structure of Beyond the Walls Studio Partners and Staff

with their corresponding Salaries

67
 Position Number Required Salary

Chief Executive Officer 1 40% Profit Share

Head of Operations 1 20% Profit Share

Head of Marketing 1 20% Profit Share

Head of Finance 1 20% Profit Share

Operations

Maintenance Technician 1 500 per hour/ 3 hrs - per

month

Cleaning Staff 2 15,000 per month

Marketing and Advertising

Advertising Specialist 1 15,000 per month

Accounting and Finance

Bookkeeper 1 28,000 per month

Support Staff

Reception Personnel 1 15,000 per month

Guard 1 15,000 per month

68
Business Policies

A. Quality Standards

Beyond the Walls Studio Rentals is dedicated to delivering a comfortable and

welcoming space for all clients. The facility aims to create an environment that supports

the diverse needs of renters, whether they are dance groups, fitness instructors, or

artists. To maintain the highest quality, the studio spaces are meticulously cleaned daily,

including floors, mirrors, and all equipment, ensuring a spotless and hygienic

environment. Studios will be thoroughly cleaned before each booking. Regular deep

cleaning and equipment maintenance checks will occur weekly to ensure all spaces and

resources remain in top condition. Beyond the Walls also sources high-quality materials

for soundproofing to maintain acoustics within each studio, minimizing noise pollution

and creating a focused space conducive to concentration and creativity. Equipment will

be inspected and tested regularly to maintain performance standards. Staff will be

trained to assist clients professionally and courteously, addressing any issues promptly.

A suggestion box will be in place for clients to share their experiences and suggest

improvements. The studio room will be inspected after each session to ensure it’s in

good working order for the next user. Any damages will be documented, and repairs will

be prioritized to maintain studio quality. Detailed logs will be observed for every

equipment check, repair, and cleaning for accountability. Additionally, strict operational

guidelines are in place to ensure that all users understand the rules regarding equipment

and space usage. This set of quality standards reflect the studio’s commitment to

providing a reliable and high-standard experience for all clients. Overall, the quality

standards of Beyond the Walls Studio Rentals demonstrate a comprehensive

commitment to customers’ satisfaction, cleanliness, and functionality. These practices

69
reinforce the studio’s dedication to maintaining a welcoming, high-standard space that

consistently meets the needs of its customers.

B. Safety Measures

At Beyond the Walls Studio Rentals, safety is a fundamental priority, and

comprehensive measures have been implemented to ensure the well-being of both

customers and staff. These protocols address key areas of emergency preparedness,

occupancy management, hygiene, fire safety, equipment maintenance, and air quality,

creating a secure environment for all. The studio is committed to being fully prepared in

case of emergencies. Clear signage will be placed throughout the facility, marking

emergency exits, fire extinguishers, and first aid kit locations for easy visibility. First aid

kits, stocked with essentials as per DOH guidelines, will be available, and staff members

will undergo training in emergency evacuation procedures and basic first aid.

Additionally, the studio will carry liability insurance to protect both clients and staff from

potential accidents or injuries. To ensure proper crowd control, the studio room will have

a designated maximum occupancy limit, with advanced bookings required to manage

attendance effectively. To maintain a clean and hygienic environment, regular

disinfection will be carried out, particularly on high-touch surfaces like door handles and

equipment. Hand sanitizers will be readily available at all entry points and within studio

spaces to encourage cleanliness. Fire safety is also a key priority, with fire extinguishers

installed at visible locations throughout the premises. Smoke detectors will be installed

to ensure their functionality, while emergency lighting will be strategically placed along

evacuation routes to provide visibility in case of power outages. The facility will be

designed to minimize injury risks. Shock-absorbing dance flooring will be used to reduce

70
the likelihood of accidents, and securely installed soundproofing materials will prevent

any potential hazards from falling debris.

Regular inspections will be conducted on essential equipment, including sound

systems and air-conditioning units, to ensure they meet safety standards and function

properly. A licensed electrician will also perform routine checks on the studio’s wiring

and outlets to prevent electrical hazards. Furthermore, electrical equipment like

speakers and lighting fixtures will undergo frequent testing, and protective covers will be

installed on all outlets to avoid accidental contact. In addition to these safety protocols, a

visitor log will be maintained to track occupancy and enhance security. This serves as

both attendance documentation and a reminder of their role in upholding the studio’s

safety standards. Furthermore, Beyond the Walls will prioritize high air quality by

regularly cleaning or replacing ventilation filters to ensure a clean and breathable

atmosphere for everyone. Through a combination of thorough safety training, regular

inspections, and strict adherence to safety protocols, the facility ensures that safety

remains a top priority, allowing clients to focus on their activities without concern.

C. Operating Policies

Operating policies at Beyond the Walls Studio Rental will help generate efficient

management and smooth transactions.

● Studio Rules

To ensure the optimal use and preservation of our studio, we kindly request

adherence to the following guidelines:

Maximum Occupancy Policy: To maintain safety and comfort, strict adherence

to maximum occupancy limits is essential. Time Usage Policy: Any excessive use of

71
rental time may incur additional fees. Property Care Policy: We expect all users to treat

the studio and its equipment with care. Any damages may result in additional charges.

Large Group Cancellations Policy: For reservations of 50 or more guests,

cancellations must be made at least 7 days prior to the scheduled date. Smaller Group

Cancellations Policy: For reservations of 15-25 guests, cancellations must be made 1

day in advance for weekday bookings and 3 days in advance for weekend bookings.

Payment Policy: We accept cash payments only. For online reservations, a 50%

down payment via digital payment is required to secure the booking. The remaining 50%

must be settled before use of the studio.

Date Changes: Requests to change or move reservation dates will be assessed

based on availability. A 20% convenience fee of the total payment will be charged for

approved date changes.

Cleanliness Policy: We strictly enforce a "Clean as You Go" (CLAYGO) policy.

As food and beverages are permitted within the studio, it is imperative that users

maintain cleanliness throughout their rental period.

D. Liability Policies

Beyond the Walls Studio Rentals is a product of the unavailability demand

of large spaces in Iloilo City. Used for recreational, creative and wellness

activities. A clear and concise liability waiver will be signed upon using the studio

space. The liability waiver would contain clauses that state that the venue is not

responsible for any major injuries, or accidents that may occur to the individual

72
 while at the premise of the studio space. This liability policy is intended to

safeguard the business from any potential legal claims. Furthermore, a clause

will be included stipulating that the space and rental items must be properly

maintained at all times. Any damages incurred may result in additional charges.

● Marketing

Beyond the Walls Studio Rentals will apply an ethical marketing scheme.

That will promote and advertise services offered. Online marketing (Social Media

Platforms and content based marketing), Local Partnerships, Traditional

marketing (On-site promotion, fliers), and word-of-mouth. Opting for marketing

strategies that will work with a small budget but reach a multitude of audiences in

different target markets.

E. Waste Management

Beyond the Walls Studio Rentals is committed to sustainable and responsible

waste management. The facility will provide separate bins for biodegradable, non-

biodegradable, and recyclable waste in common areas, encouraging clients to dispose

of their waste properly. Recycling bins will be strategically placed throughout the studio

to promote responsible waste disposal. The studio will partner with local waste

management services to ensure that recyclables are processed correctly, supporting

community conservation efforts. Additionally, Beyond the Walls will implement energy-

efficient practices, such as using LED lighting and promoting mindful use of electricity

and water. These initiatives will help minimize the studio’s environmental impact and

demonstrate its commitment to corporate social responsibility.

73
 F. Reward System on Employees

Happy employees drive a successful business. Implementing a reward system

not only credits the top performing employees but also enhances the morale of the

overall team. Beyond the Walls Studio Rental will apply two reward systems on

employees: an incentive program and spot awards. An incentive program will adopt a

commission system wherein a percentage of each space rental shall be given to the

employee. On the condition that the employee brings in a new customer from its own

triad of network. Spot awards are spontaneous rewards for employees who can

consistently maintain high standards of work and achieve notable success.

G. Legal Requirements

Beyond the Walls Studio Rental is a small business enterprise located in Jaro,

Iloilo City. Under the Philippine Business Registration there are numerous government

agencies that a new business must comply with to avoid any legal problems These

agencies include the Securities and Exchange Commission (SEC), Bureau of Internal

Revenue (BIR), and the local government unit for a mayor's permit or business license.

Due Diligence is practiced to meet legal requirements, ensuring the business is legally

established.

● Secure the Business Name with the Securities and Exchange Commission

(SEC)

For a business operating as a partnership, securing the business name

with the Securities and Exchange Commission (SEC) is a prerequisite for

meeting other regulatory requirements. Ensuring that the business name is

unique and legally established.

74
● Opening a Corporate Bank Account

A requirement from the Securities and Exchange Commission (SEC)

before a company can be officially incorporated.

● Register with the Securities and Exchange Commission

To be treated as a legal entity Beyond the Walls shall comply the

following requirements: Name Reservation and Payment Form, Notarized

Articles of Incorporation and By-laws, Treasurer’s Affidavit, and Bank Certificate

of Deposit for the status of the business to be fully recognized as legal. With this,

the enterprise can operate with a clear legal standing and avoid potential legal

issues.

● Register with the Bureau of Internal Revenue

The Bureau of Internal Revenue is the governing body of collecting due

tax. By registering with the BIR, Beyond the Walls will adhere to tax laws, obtain

Tax Identification Number, can dully issue official receipts and invoices,

contribute to the national development, and establish a reputable image to its

clients.

● Obtaining Business Permit

Beyond the Walls is located in the premises of Iloilo City. Obtaining the

business license in the city’s capitol will make the business legal to operate in the

city. This crucial step certifies that the business complied with all local regulations

75
 Chapter 5

Financial Feasibility

This chapter presents the financial feasibility of the proposed business Beyond

the Walls: Studio Rental Space at Jaro, Iloilo City. The following parts assess the

project's financial viability. In this chapter the following financial analysis and

competitiveness were discussed to give light on the proposed business financial

feasibility . (1) Capital Requirements, (2) Equity and Credit Needs, (3) Income and Cost

Analysis, and (4) Financial Analysis.

Capital Requirements

Provide an estimate of the total project costs needed to start the proposed

business.

Start Up Cost

Renovation Cost ₱500,000

Furniture and Fixtures ₱16,929

Tools, Equipment and Installation ₱279,345

Operating Capital
Business Permit ₱2,000
Salaries ₱360,000
Rent ₱1,440,000
Promotional Expenses ₱28,500
Utilities ₱120,000
Supplies ₱35,367

TOTAL ₱2,780,141
Table 14: Start Up Cost of Beyond the Walls Studio

76
Discussion how the capital needs could be met

A business partnership is formed with an initial capital contribution of 4,000,000.

Partner A contributes 40% of this amount, which equates to 1,600,000. Partners B, C,

and D each contribute 20%, resulting in contributions of 800,000 from each of them.

These initial investments form the foundation of the partnership's capital, with each

partner's contribution determining their ownership stake and potential share in profits

and losses.

Income and Cost Analysis

3.1 Assumptions of the Proposed Business

● Assuming that there is a 5% increase of service revenue for every year, a result of

building a solid credibility via high-quality service.

● The rent is fixed as per in connection with the contract agreement with the owner

of the building.

● Supplies are marked up to 5% annually, but medical supplies are bought every 2

years.

● Utilities will increase every year by 5%

● Salaries will increase every year by 5% and owners will make sure that it will be

paid before the end of every month.

● Furniture and fixtures with tools, equipment and installation has a useful life of 5

years.

77
● There will be a 90% profit distribution among the partners with a profit share of

40:20:20:20, respectively to which was also withdrawn with only 10% of the profit

to remain in the business.

● Based on the first hand information coming from the contractor, architect and

interior designer inquired by the researcher’s colleagues the renovation expense

was accumulated to 500,000 pesos.

78
 Table 16. Income Statement of Beyond the Walls.

Beyond The Walls Studio Rental Space

Projected Income Statement

2025 2026 2027 2028 2029

Revenue

Service 2,891,200 4,553,640 4,781,322 5,020,388.10 5,271,407.40

Revenue

Total 2,891,200 4,553,640 4,781,322 5,020,388.10 5,271,407.40

Operating Expenses

Renovation 500,000 - - - -
Expense

Business 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Permit Fee

Rent Expense 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000

Promotional 28,500.00 29,925.00 31,421.25 32,992.31 34,641.93

Expenses

Salaries 360,000.00 1,316,700.0 1,382,535.00 1,451,661.75 1,524,244.84

Expense

Supplies 35,367.00 35,706.30 38.992.12 39,366.20 42988.82

Expense

Utilities 120,000.00 189,000.00 198,450.00 208,372.50 218,791.13

Expense

Tax Expense 196,315.64 297,884.82 321,883.10 350,100.54 364,338.34

Depreciation 3,385.80 3,385.80 3,385.80 3,385.80 3,385.80

Expense - FF

Depreciation 55,869.00 55,869.00 55,869.00 55,869.00 55,869.00

Expense - TE
- Ins

Total 2,741,437.44 3,370,470.92 3,474,536.27 3,583,748.10 3,686,259.86

Expense

Net Profit 149,762.56 𝟏, 𝟏𝟖𝟑, 𝟏𝟔𝟗. 𝟎𝟖 1,306,785.73 1,436,640.00 1,585,147.65

79
 Table 17. Balance Sheet (in pesos) of Beyond the Walls.

Beyond The Walls Studio Rental Space

Projected Statement Of Financial Position

2025 2026

CURRENT ASSET CURRENT ASSET

Note Amount Note Amount

Cash 1 3,989,272.70 Cash 1 4,269,163.58

Total Current 3,989,272.70 Total Current 4,269,163.58

Asset Asset

NON CURRENT ASSET NON CURRENT ASSET

Property, Plant and 2 237,019.20 Property, Plant and 2 177,764.40

Equipment Equipment

Total Non Current 237,019.20 Total Non Current 177,764.40

Asset Asset

Total Asset 𝟒, 𝟐𝟐𝟔, 𝟐𝟗𝟏. 𝟗𝟎 Total Asset 𝟒, 𝟒𝟒𝟔, 𝟗𝟐𝟕. 𝟗𝟖

LIABILITIES AND PARTNER'S LIABILITIES AND PARTNER'S

CAPITAL CAPITAL

CURRENT LIABILITIES CURRENT LIABILITIES

Utilities payable 6 15,000.00 Utilities payable 6 15,750.00

Tax payable 7 196,315.64 Tax payable 7 297,884.82

Total Current 211,315.64 Total Current 313,634.82

Liabilities Liabilities

PARTNER'S CAPITAL PARTNER'S CAPITAL

Partner A, Capital 1,605,990.50 Partner A, Capital 1,653,317.27

Partner B, Capital 802,995.25 Partner B, Capital 826,658.63

Partner C, Capital 802,995.25 Partner C, Capital 826,658.63

Partner D, Capital 802,995.25 Partner D, Capital 826,658.63

Total Partners 4,014,976.26 Total Partners 4,133,293.16

Capital Capital

Total Liabilities Total Liabilities

and Partner's and Partner's

80
Capital 4,226,291.90 Capital 4,446,927.98

2027 2028

CURRENT ASSET CURRENT ASSET

Note Amount Note Amount

Cash 1 4,483,882.74 Cash 1 4,715,845.85

Total Current 4,483,882.74 Total Current 4,715,845.85

Asset Asset

NON CURRENT ASSET NON CURRENT ASSET

Property, Plant and 2 118,509.60 Property, Plant and 2 59,254.80

Equipment Equipment

Total Non Current 118,509.60 Total Non Current 59,254.80

Asset Asset

Total Asset 𝟒, 𝟔𝟎𝟐, 𝟑𝟗𝟐. 𝟑𝟒 Total Asset 𝟒, 𝟕𝟕𝟓, 𝟏𝟎𝟎. 𝟔𝟓

LIABILITIES AND PARTNER'S LIABILITIES AND PARTNER'S

CAPITAL CAPITAL

CURRENT LIABILITIES CURRENT LIABILITIES

Utilities payable 3 16,537.50 Utilities payable 3 17,364.38

Tax payable 3 321,883.10 Tax payable 3 350,100.54

Total Current 338,420.60 Total Current 367,464.92

Liabilities Liabilities

PARTNER'S CAPITAL PARTNER'S CAPITAL

Partner A, Capital 1,705,588.69 Partner A, Capital 1,763,054.29

Partner B, Capital 852,794.35 Partner B, Capital 881,527.15

Partner C, Capital 852,794.35 Partner C, Capital 881,527.15

Partner D, Capital 852,794.35 Partner D, Capital 881,527.15

Total Partners 4,263,971.74 Total Partners 4,407,635.74

Capital Capital

Total Liabilities Total Liabilities

and Partner's and Partner's
Capital 𝟒, 𝟔𝟎𝟐, 𝟑𝟗𝟐. 𝟑𝟒 Capital 𝟒, 𝟕𝟕𝟓, 𝟏𝟎𝟎. 𝟔𝟓

81
 2029

CURRENT ASSET

Note Amount

Cash 1 4,948,721.44

Total Current Asset 4,948,721.44

NON CURRENT ASSET

Property, Plant and 2 0

Equipment

Total Non Current 0

Asset

Total Asset 𝟒, 𝟗𝟒𝟖, 𝟕𝟐𝟏. 𝟒𝟒

LIABILITIES AND PARTNER'S CAPITAL

CURRENT LIABILITIES

Utilities payable 3 18,232.60

Tax payable 3 364,338.34

Total Current 382,570.94

Liabilities

PARTNER'S CAPITAL

Partner A, Capital 1,826,460.20

Partner B, Capital 913,230.10

Partner C, Capital 913,230.10

Partner D, Capital 913,230.10

Total Partners Capital 4,566,150.50

Total Liabilities and

Partner's Capital 𝟒, 𝟗𝟒𝟖, 𝟕𝟐𝟏. 𝟒𝟒

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 Table 18. Statement of Changes in Equity (in pesos) of Beyond the Walls.

Beyond The Walls Studio Rental Space

Projected Statement Of Partners Capital

2025

Ratio Beginning Balance Distribution of Profit Withdrawal Ending Balance

Partner A, Capital 40% 1,600,000.00 59,905.02 53,914.52 1,605,990.50

Partner B, Capital 20% 800,000.00 29,952.51 26,957.26 802,995.25

Partner C, Capital 20% 800,000.00 29,952.51 26,957.26 802,995.25

Partner D, Capital 20% 800,000.00 29,952.51 26,957.26 802,995.25

Total 4,000,000.00 149,762.56 134,786.30 𝟒, 𝟎𝟏𝟒, 𝟗𝟕𝟔. 𝟐𝟔

2026

Ratio Beginning Balance Distribution of Profit Withdrawal Ending Balance

Partner A, Capital 40% 1,605,990.50 473,267.63 425,940.87 1,653,317.27

Partner B, Capital 20% 802,995.25 236,633.82 212,970.43 826,658.63

Partner C, Capital 20% 802,995.25 236,633.82 212,970.43 826,658.63

Partner D, Capital 20% 802,995.25 236,633.82 212,970.43 826,658.63

Total 4,014,976.26 1,183,169.08 1,064,852.17 𝟒, 𝟏𝟑𝟑, 𝟐𝟗𝟑. 𝟏𝟔

2027

Ratio Beginning Balance Distribution of Profit Withdrawal Ending Balance

Partner A, Capital 40% 1,653,317.27 522,714.29 470,442.86 1,705,588.69

Partner B, Capital 20% 826,658.63 261,357.15 235,221.43 852,794.35

Partner C, Capital 20% 826,658.63 261,357.15 235,221.43 852,794.35

Partner D, Capital 20% 826,658.63 261,357.15 235,221.43 852,794.35

Total 4,133,293.16 1,306,785.73 1,176,107.16 𝟒, 𝟐𝟔𝟑, 𝟗𝟕𝟏. 𝟕𝟒

2028

Ratio Beginning Balance Distribution of Profit Withdrawal Ending Balance

Partner A, Capital 40% 1,705,588.69 574,656.00 517,190.40 1,763,054.29

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Partner B, Capital 20% 852,794.35 287,328.00 258,595.20 881,527.15

Partner C, Capital 20% 852,794.35 287,328.00 258,595.20 881,527.15

Partner D, Capital 20% 852,794.35 287,328.00 258,595.20 881,527.15

Total 4,263,971.74 1,436,640.00 1,292,976.00 𝟒, 𝟒𝟎𝟕, 𝟔𝟑𝟓. 𝟕𝟒

2029

Ratio Beginning Balance Distribution of Profit Withdrawal Ending Balance

Partner A, Capital 40% 1,763,054.29 634,059.06 570,653.15 1,826,460.20

Partner B, Capital 20% 881,527.15 317,029.53 285,326.58 913,230.10

Partner C, Capital 20% 881,527.15 317,029.53 285,326.58 913,230.10

Partner D, Capital 20% 881,527.15 317,029.53 285,326.58 913,230.10

Total 4,407,635.74 1,585,147.65 1,426,632.88 𝟒, 𝟓𝟔𝟔, 𝟏𝟓𝟎. 𝟓𝟎

84
 Beyond The Walls Studio Rental Space
Projected Cash Flow Statement

Particulars 2025 2026 2027 2028 2029

Cash Inflow

Beginning 3,989,272.70 4,269,163.58 4,483,882.74 4,715,845.85

Balance

Initial Investment 4,000,000.00

Service Revenue 2,891,200.00 4,553,640.00 4,781,322.00 5,020,388.10 5,271,407.51

Total Cash 6,891,200.00 8,542,912.70 9,050,485.58 9,504,270.84 9,987,253.36

Inflow

Cash
Outflow

Tools/Equip/Fix/I 296,274.00
ns

Renovation 500,000.00
expense

Rent Expense 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00

Salaries 360,000.00 1,316,700.00 1,382,535.00 1,451,661.75 1,524,244.84

Expense

Supplies 35,367.00 35,706.30 38,992.12 39,366.20 42,988.82

Expense

Utilities Expense 105,000.00 188,250.00 197,662.50 207,545.63 217,922.91

Promotional 28,500.00 29,925.00 31,421.25 32,992.31 34,641.93

Expense

Business permit 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Withdrawals 134,786.30 1,064,852.17 1,176,107.16 1,292,976.00 1,426,632.88

Tax Expense 196,315.64 297884.82 321,883.10 350,100.54

Total Cash
Outflow
2,901,927.30 4,273,749.11 4,566,602.85 4,788,424.99 5,038,531.92

85
 Net Cash 𝟑, 𝟗𝟖𝟗, 𝟐𝟕𝟐. 𝟕𝟎 𝟒, 𝟐𝟔𝟗, 𝟏𝟔𝟑. 𝟓𝟖 𝟒, 𝟒𝟖𝟑, 𝟖𝟖𝟐. 𝟕𝟒 𝟒, 𝟕𝟏𝟓, 𝟖𝟒𝟓. 𝟖𝟓 𝟒, 𝟗𝟒𝟖, 𝟕𝟐𝟏. 𝟒𝟒
Balance

Table 19. Cash Flow Statement (in pesos) of Beyond the Walls

a. Return On Investment

2025

Net Profit 149,762.56

Divide by: Initial Investment Cost 4,000,000

Total Return on Investment 3.74%

2026

Net Profit 1,183,169.08

Divide by: Initial Investment Cost 4,000,000

Total Return on Investment 29.58%

2027

Net Profit 1,306,785.73

Divide by: Initial Investment Cost 4,000,000

Total Return on Investment 32.67%

2028

Net Profit 1,436,640.00

Divide by: Initial Investment Cost 4,000,000

Total Return on Investment 35.92%

86
 2029

Net Profit 1,585,147.65

Divide by: Initial Investment Cost 4,000,000

Total Return on Investment 39.63%

Table 20: Return on Investment of Beyond the Walls.

b. Payback Period

DISCOUNTED PAYBACK PERIOD

PV of 1 at 10% PV of Cash Investment

(1+10)^-n Flow 10%

Year 0 (4,000,000.00)

Year 1 3,989,272.70 0.909 3,626,248.88 (373,751.12)

Year 2 4,269,163.58 0.826 3,526,329.12 3,152,578.00

Year 3 4,483,882.74 0.751 3,367,395.94 6,519,973.94

Year 4 4,715,845.85 0.683 3,220,922.72 9,740,896.65

Year 5 4,948,721.44 0.621 3,073,156.01 12,814,052.67

PAYBACK = 2 years + 375,751.12 / 3,526,329.12

PAYBACK = 2.10

Table 21: Payback Period of Beyond the Walls.

87
c. Net Present Value

NET PRESENT VALUE

PV of 1 at 10% (1+10)^- PV of Cash Investment

n Flow 10%

Year 0 (4,000,000.00)

Year 1 3,989,272.70 0.909 3,626,248.88

Year 2 4,269,163.58 0.826 3,526,329.12

Year 3 4,483,882.74 0.751 3,367,395.94

Year 4 4,715,845.85 0.683 3,220,922.72

Year 5 4,948,721.44 0.621 3,073,156.01 16,814,052.67

Net Present Value 12,814,052.67

d. Liquidity Ratio

2025

Current Assets 3,989,273

Divide by: Current Liabilities 211,315.64

Current Ratio 18.88

2026

Current Assets 4,269,164

Divide by: Current Liabilities 313,634.82

Current Ratio 13.61

88
 2027

Current Assets 4,483,883

Divide by: Current Liabilities 338,420.60

Current Ratio 13.25

2028

Current Assets 4,715,846

Divide by: Current Liabilities 367,464.92

Current Ratio 12.83

2029

Current Assets 4,948,721

Divide by: Current Liabilities 382,570.94

Current Ratio 12.94

Table 22: Liquidity Ratio of Beyond the Walls.

e. Solvency Ratio

2025

Total Partner’s Capital 4,014,976

Divide by: Total Assets 4,226,291.90

Equity Ratio 0.95

2026

Total Partner’s Capital 4,133,293

Divide by: Total Assets 4,446,927.98

Equity Ratio 0.93

89
 2027

Total Partner’s Capital 4,263,972

Divide by: Total Assets 4,602,392.34

Equity Ratio 0.93

2028

Total Partner’s Capital 4,263,972

Divide by: Total Assets 4,602,392.34

Equity Ratio 0.93

2029

Total Partner’s Capital 4,407,636

Divide by: Total Assets 4,775,100.65

Equity Ratio 0.92

Table 23: Solvency Ratio of Beyond the Walls.

Interpretation

Following financial ratios, after an initial investment of $4,000,000, Beyond the

Walls Studio has demonstrated strong financial performance over the course of five

years. We may learn a lot about the studio's profitability and future growth trajectory by

examining the yearly Return on Investment (ROI) numbers. Year 1 (3.74% ROI): This

represents a solid return on investment, despite the initial ROI being modest. This might

be explained by the setup stage, when revenue generation and foundational costs were

still being developed. Year 2 (29.58% ROI): A notable increase in ROI is indicative of a

notable rise in profitability. This might be the result of things like successful project

executions, expanded clientele, or optimized operations. Year 3 (32.67% ROI): The

90
studio maintained its excellent financial performance, building on the achievements of

the previous year. This steady expansion points to a proven company plan and

successful tactics. Year 4 (35.92% ROI): The studio's capacity to sustain and grow its

profitability is demonstrated by this additional ROI growth. Strategic efforts like

broadening market reach or diversifying revenue sources may be to blame for this. Year

5 (46.52% ROI): The studio's outstanding financial performance is highlighted by the

highest ROI percentage during the five-year period. This can be the outcome of clever

initiatives, well-timed investments, or advantageous market circumstances.

Considering a 2.10-year discounted payback period, the project appears to be

relatively feasible financially. It proves that the project's projected cash inflows,

discounted by their present value, will cover the original investment in a manageable

amount of time. In general, a shorter payback period is preferable since it indicates a

quicker investment recovery and lower risk. Given the time value of money, this

suggests that it will take the enterprise roughly two years and one month to recoup its

initial expenditure. Taking into account the discounted time worth of money, the

computed Net Present worth (NPV) of 12,814,052 over a 5-year period shows a very

positive financial result for Beyond the Walls studio. When time value of money is taken

into account, a positive net present value (NPV) indicates that the project's anticipated

profits would greatly outweigh the original investment and any ensuing expenses. This

suggests a high possibility for financial gain and a solid return on investment.

Over the previous five years, Beyond the Walls Studio's liquidity, as indicated by

the current ratio, has been trending downward. The studio demonstrated a high ability to

satisfy its short-term obligations in Year 1 with a current ratio of 18.88. This was

supported by comparatively low current liabilities of 211,315.64 and significant current

assets of 3,989,273.

91
Nonetheless, the current ratio steadily decreased in the years that followed. After a

decline to 13.61 in Year 2, there were subsequent declines to 13.25 in Year 3, 12.83 in

Year 4, and 12.94 in Year 5. Although these measures continue to show a sound

liquidity position, the studio's capacity to sustain its financial stability is called into

question by the declining trend. This pattern could be caused by a number of things. An

increase in current liabilities, such as accumulated costs or short-term debt, could be

one reason. Another possibility is a decline in current assets, especially cash. The studio

may have made significant investments in long-term assets, which decreased its short-

term liquidity.

The studio has continuously maintained a high equity ratio, ranging from 0.92 to

0.95, across the five years under analysis. With 4,014,976 in total partner capital and

4,226,291 in total assets, the equity ratio was 0.95 in Year 1. This suggests that the

studio had relatively little debt because a sizable amount of its assets were financed by

equity. In the years that followed, the equity ratio stayed comparatively constant at 0.93.

This consistency suggests that the studio has continued to take a cautious financial

stance, giving equity funding precedence over debt. Because it lowers the risk of debt

obligations like interest payments and possible default, a larger equity ratio typically

indicates a stronger financial situation. The studio is well-positioned to withstand future

economic downturns and seize new opportunities because of its financial stability.

92
 Chapter 6

Study Conclusions

This chapter presents the results, findings and conclusions of the proposed

business Beyond the Walls: Studio Rental Space at Jaro, Iloilo City. The following parts

assess the project's feasibility.

Results and Findings

● The results of the survey gave a good turnout of 92.1% of respondents indicating

that they would be eager to rent studio space and use extra services, which is

very encouraging. This high degree of support demonstrates the studio's

potential and vision, pointing to a bright future for the enterprise.

● The 2.10-year discounted payback period suggests lesser risk because it shows

a comparatively speedy recovery of the initial investment. Furthermore, a

considerable potential for financial benefit and a solid return on investment are

shown by the significant positive Net Present Value (NPV) of 12,814,052 over

five years.

● Beyond the Walls Studio has demonstrated remarkable financial development,

with an overall return on investment (ROI) of over 141.54%. The studio's capacity

to produce sizable revenues and establish its place in the market is

demonstrated by this noteworthy return on investment.

● Beyond the Walls Studio current ratio declined during the course of the five

years, despite the company's good liquidity position. This raises the possibility of

93
 a reduction in short-term financial flexibility, necessitating close watch over

current assets and liabilities to make sure the studio can pay its bills on time.

● Beyond the Walls Studio has continuously shown solid solvency, as indicated by

its high equity ratio. Due to its financial stability, the studio is well-positioned to

handle any future economic difficulties and seize expansion chances.

Conclusion

1. Based on the strong positive response with a significant 92.1% of respondents

expressing interest in renting studio space and paying additional services,

Beyond the Walls studio appears to be highly feasible.

2. Based on positive data from the payback period and net present value, the

project's 2.10-year discounted payback period and $12.8 million NPV indicate

low risk and high potential returns which Beyond the Walls studio appears to be

financially feasible.

3. Based on the strong financial performance indicated by the high ROI of over

141.54%, Beyond the Walls Studio appears to be highly feasible as well.

4. Even while the decreasing current ratio is concerning, Beyond the Walls Studio

continues to look like a feasible business endeavor, as the studio continues to

retain a good liquidity position.

5. Based on the strong financial position indicated by the high equity ratio, Beyond

the Walls Studio still appears to be feasible.

94
 Appendices

SURVEY FORM
Demographics

Category Frequency Percentage (%)

Entire Group 100 100

Age

18-22 years old 78 78

23-27 years old 12 12

28-32 years old 5 5

33 and above 5 5

Gender

Male 57 57

Female 43 43

Non-Binary 0 0

Prefer not to say 0 0

Occupation

Student 81 81

Working 11 11

Non-Working 5 5

Prefer not to say 3 3

Location

Within Jaro, Iloilo City 30 30

Outside Jaro, Iloilo City 22 22

Outside Iloilo City 43 43

Outside Iloilo (e.g., Aklan, Guimaras etc.) 5 5

95
 Artistic Scene 36 36

Business Activities 9 9

Community Activities 22 22

Event Activities 33 33

Awareness on Studio Rental Spaces

Your Preferences

96
Your Thoughts

97
 Assumptions

Projected Sales

for Space only

15 pax 25 pax 50 pax TOTAL
estimated annual demand 1,152.00 480.00 144.00
estimated annual sales 300.00 500.00 1,000.00
estimated hours per rental 2.00 3.00 4.00
691,200.00 720,000.00 576,000.00 1,987,200.00

for Dance Class only

BSC House class ZUMBA TOTAL
estimated annual demand 144.00 96.00 96.00
estimated annual sales 250.00 250.00 200.00
estimated number of
participants 25.00 25.00 25.00
900,000.00 600,000.00 480,000.00 1,980,000.00

98
 For Events only
AS:
Speaker
and AS: Chairs
Rental only microphone AS: Projector and tables TOTAL
estimated annual demand 48 48 48 48
Price per rental 1,000.00 500.00 200.00 3,000.00
estimated hours/session per
event 4.00 1.00 1.00 1.00
192,000.00 24,000.00 9,600.00 144,000.00 369,600.00

Total Revenue for Space Total Revenue for Dance Total Revenue for TOTAL ANNUAL
only Class only Events only REVENUE

1,987,200.00 1,980,000.00 369,600.00 4,336,800

REVENUE 5% mark up per year

YEAR 1 4,336,800*⅔ = 2891200
YEAR 2 4553640
YEAR 3 4781322
YEAR 4 5020388.10
YEAR 5 5271407.51

99
I. Depreciation Expense

DEPRECIATION EXPENSE
FIXTURES
1ST 2ND 3RD 4TH 5TH
1054.2 2108.4 3162.6 4,216.80 5271
19.6 39.2 58.8 78.40 98
59 118 177 236.00 295
180 360 540 720.00 900
28 56 84 112.00 140
1599.6 3199.2 4798.8 6,398.40 7998
160 320 480 640.00 800

59 118 177 236.00 295

226.4 452.8 679.2 905.60 1132
3385.8 6771.6 10157.4 13,543.20 16929

100
 EQUIPMENTS
1ST 2ND 3RD 4TH 5TH
11,200 22,400 33,600 44,800.00 56,000
460.8 921.6 1382.4 1,843.20 2304
878.4 1,756.80 2,635.20 3,513.60 4392
479.6 959.2 1,438.80 1,918.40 2398
4191 8,382 12,573 16,764.00 20955
999 1998 2997 3,996.00 4995
1119.6 2239.2 3358.8 4,478.40 5598
2000 4,000 6,000 8,000.00 10,000
174.4 348.8 523.2 697.60 872
216 432 648 864.00 1080
420 840 1260 1,680.00 2100
7128 14256 21384 28,512.00 35640
480 960 1440 1,920.00 2400
6398.4 12,796.80 19195.2 25,593.60 31992
1835.6 3671.2 5506.8 7,342.40 9178
444.8 889.6 1334.4 1,779.20 2224
634 1268 1902 2,536.00 3170
299.8 599.6 899.4 1,199.20 1499
240 480 720 960.00 1200
492 984 1476 1,968.00 2460
645 1290 1935 2,580.00 3225
4450 8,900 13,350 17,800.00 22,250
1,260 2,520 3,780 5,040.00 6,300
46,446.40 92,892.80 139,339.20 185,785.60 232,232.00
TOOLS

1ST 2ND 3RD 4TH 5TH

29.6 59.2 88.8 118.40 148
31.2 62.4 93.6 124.80 156
99.8 199.6 299.4 399.20 499
62 124 186 248.00 310
222.6 445.2 667.8 890.40 1113
EQUIPMENT & TOOLS
46,669.00 93,338.00 140,007.00 186,676.00 233,345.00

101
 Tools & Equipment and Installation
9,200.00 18,400.00 27,600.00 36,800.00 46,000.00
46,669.00 93,338.00 140,007.00 186,676.00 233,345.00
55,869.00 111,738.00 167,607.00 223,476.00 279,345.00

PROMOTIONAL 5% mark up per year

YEAR 1 28,500.00
SUPPLIES 5% mark up per year
YEAR 2 29,925.00
YEAR 1 35,367.00
YEAR 3 31,421.25
YEAR 2 35706.3
YEAR 4 32,992.31
YEAR 3 38992.12
YEAR 5 34,641.93
YEAR 4 39366.2
YEAR 5 42988.82
Purchase of medical supplies happens every 2 UTILITIES 5% mark up per year
years YEAR 1 180,000.00
YEAR 2 189,000.00
YEAR 3 198,450.00
YEAR 4 208,372.50
YEAR 5 218,791.13

102
Note 3- LIABILITIES:

● Utilities payable are calculated from deducting the last payment of the month,
which is 15,000 PHP from the total annual payment, which is 180,000 PHP. This
liability is forwarded on the next operating year with a 5% markup.

● The utilities expenses for the first year are counted for 7 months only, which adds
up to 105,000 PHP as the Beyond the Walls will operate for 8 months only. The
last monthly utility, which is 15,000 PHP, is a liability for the first year and is
forwarded to the next accounting period.

● Tax payables are forwarded on the operating next year because it is due on
every 15th day of the 4th month, and the Beyond the Walls are not yet operating
during that time.

Note 4 - SALARIES

● Annual salaries are computed by adding the monthly salaries of all the
employees, which adds up to and it is subject to a 5% mark up every year.

● In the first operating year of Beyond the Walls, the number of employees was
only three. One security guard, one cleaning staff, and one receptionist. Thus,
the annual salary for the first year is 360,000 PHP computed as 15,000PHP x 3
(staff) x 8 (operating months).

● In the second year of the operation, Beyond the Walls added additional staff and
their monthly salaries accumulated to 1,316,700 PHP.

Note 5- SUPPLIES

● Annual supplies are calculated by adding all the amount of the supplies to be
used in a year with a 5% markup annually.

103
104
 References

Philippines Business Registration. (n.d.). Company Registration.

Philippinesbusinessregistration.com.

https://philippinesbusinessregistration.com/company-

registration/requirements/?fbclid=IwZXh0bgNhZW0CMTEAAR1YD9DR2SHzdwD3Ra9D

f0hwKDTrkdGFtIH9F5Zk1ba0BXxFgw1w790IX_c_aem_JYZSpZfbxnhPWvx7lJk6MA

Philippine Statistics Authority. (2022). Economic Performance of Provinces. Psa.gov.ph.

https://psa.gov.ph/content/2022-economic-performance-provinces-and-highly-urbanized-

cities-outside-national-capital

Daily Guardian. (2024). Iloilo City Ranked 5th. Dailyguardian.com

https://dailyguardian.com.ph/iloilo-still-top-city-outside-ncr-but-drops-to-5th-in-2024-

rankings/#:~:text=In%202024%2C%20Iloilo%20City%20emerged,Everyone%20worked

%20so%20hard

105