I.	Introduction

Do you know a relative, a neighbor, a friend, a classmate, or in plain sense, a person who have not got acquainted with a computer or a smartphone yet? Probably none. According to an article featured in CNN Philippines just recently, forty million Filipinos currently own a smartphone. In addition, they think it will double to ninety million in 2021. Personal computer ownership on the other hand is difficult to gauge as less statistical facts are available but according to a study way back in 2005, 4.4 percent of the total number of families owns one and it also says it is still constantly expanding. According to another recent figure, close to forty-five million Filipinos are constant internet users.

It is completely undeniable that computers and smartphones play an important role in the lives of Filipinos. Have you imagined getting the day-off without opening your Facebook account at least once? For sure you will experience some sort of unexplained void from within – an anxiety. Can you handle a challenge wherein someone will replace your updated smartphone for a week with a phone having the specifications comparable to the legendary Nokia 3310? You cannot handle it. Today’s people will certainly bore to death as it will restrict them from today’s essential which includes their favorite games and surfing the internet.

Life has never been easy because of these technological marvels. Imagine shopping for clothes or furniture at the comfort of your own home. Imagine taking to your loved ones across the globe in real-time. Imagine getting all the information you need from food preparation to school related items with a few taps on your gadget’s screen.

We cannot tell if President Duterte will succeed in his war with prohibited drugs or the United States will finally settle their decades-long dispute with the Russian Federation but it is indisputable that computers, smartphones, the internet and the demand for software will continue to rise in years to come. Therefore, it is completely logical to start a business related to those industries as the demand or the opportunity to prosper is promising.

a.	Names and address of business

The planned business will be named The Good Software Incorporated and the partnership’s proposed location is Block 2, Lot 81, Krova Compound situated in Barangay Kalawaan in Pasig City.

b.	Name(s) and address(es) of principals

Name:		Mycar Angelo P. Chu
Address:	Block 2, Lot 81, Axis Road, Krova Compound, Kalawaan, Pasig City
Contact #:	63-905-601-9063
Email:		angelomycar@gmail.com

Name:		Darwin P. Chu
Address:	Block 2, Lot 81, Axis Road, Kalawaan, Pasig City
Contact #:	63-905-918-9608
Email:		darwinchu@gmail.com

Name:		Sheryl Andag
Address:	Nagpayong, Pasig City
Contact #:	09304982170
Email:		andagsheryl@gmail.com

Name:		Francis Pangan
Address:	San Lorenzo Ruiz, Taytay, Rizal
Contact #:	63-907-821-0910
Email:		francis.pangan01@gmail.com

Name:		Justinne Zubieto
Address:	509 M. Diaz St. Pineda Pasig City
Contact #:	09099399944
Email:		Tatin_Boss@gmail.com

Name:		Gerald Samar
Address:	Lifehomes, Pasig City
Contact #:	099835598334
Email:		Gerald.Samar3@gmail.com

Name:		Remmeul Relucio
Address:	Dilang, Pasig City
Contact #:	N/A
Email:		remmeuel_eweng@gmail.com

Name:		Emmanuel Gatchalian
Address:	Maybunga, Pasig City
Contact #:	09273620899
Email:		emman_gatchalian@yahoo.com

Name:		Geflee Bondoc
Address:	Pineda, Pasig City
Contact #:	N/A
Email:		gefleebondoc@gmail.com

Name:		Charmaine Hamor
Address:	Block 51, Lot 11, San Lorenzo Ruiz, Taytay, Rizal
Contact #:	09274927967
Email:		mainehamor@yahoo.com

Name:		Err Julius Ysagun
Address:	104 F. Manalo Street, Calzada, Tipas, Taguig City
Contact #:	09327295420
Email:		julzysagun@gmail.com

Name:		Karl Salamanca
Address: 	509 M. Diaz St. Pineda Pasig City
Contact #:	09274928867
Email:		carl_salamanca@yahoo.com

c.	Nature of business

The proposed business is inclined to the IT industry.

The planned business, to be named “The Good Software”, aims to provide software solutions to potential customers.

The company will aid businesses with their transition from the traditional approach to partial automation or it will aid them in penetrating the online retail industry.

d.	Statement of financial needed



II.	Executive Summary

III.	Industry Analysis

a.	Future Outlook and Trends

CNN Philippines posted a statistical report stating that there are currently forty million Filipino smart phone users. On the other hand, Statista, an online statistics portal based in Germany, rolled-out figures that says that there are currently nearly twenty-eight million Filipino smartphones owners. The values these two sources are projecting may have a huge difference but one thing is common between these two – their complete report states that the year-to-year increase in ownership is very significant and there is no sign of slowing down in sight or at least within five years’ time.

Filipinos hooked to the internet is currently pegged somewhere near the fifty-eight million mark according to Statista. The figure will continue to increase and is supposed to hypothetically reach the seventy-eight million level in five years’ time (2021).

E-Commerce is slowly picking up steam in the Philippines as more and more Filipinos are getting used to the idea of shopping or buying things online. For Filipinos who do engage in online purchases, fifty-three percent still go for the cash route, thirty-six percent uses their credit cards while ten percent go for bank transfers to make purchases. This presents a big opportunity for entrepreneurs planning on offering their products and services online through their own e-Stores or other online marketplaces. The rise of social media and other interactive channels make it easier for businesses to create brand awareness, considering the fact that over eighty-five percent of online Filipinos do watch videos of the brands, products, or services they are contemplating to purchase online.

Social media ranks among the top online activities for many online Filipinos, with at least thirty-nine percent checking social media networks first before doing any other online activities. The success of digital marketing in the Philippines also rides in the phenomenal success of social media in the country, with at least sixty-four percent of online Filipinos relying on information from social media channels influencing their purchase decisions. The use of social media marketing presents a tremendous opportunity for digital marketing in the Philippines as a whole, focusing on developing brand awareness by connecting or interacting with potential customers. Developing this connection and rapport with online users is crucial to influencing the buying patterns of online Filipinos as eighty-nine percent do read what other people post or comment about a particular brand, product or service.

b.	Analysis of Competitors

Accenture PLC is a global professional services company and provides consulting services in digital, technology and operations. It has been incorporated in Dublin, Ireland, since 1 September 2009. It is the world's largest consulting firm as measured by revenues and is a Fortune Global 500 company. As of 2015, the company reported net revenues of thirty-one billion dollars, with more than three hundred seventy-three employees serving clients in more than two hundred cities in one hundred and twenty countries. In 2015, Accenture had about one hundred and thirty thousand employees in India, more than in any other country, about forty-eight thousand in the US, and about fifty thousand in the Philippines. Accenture's current clients include ninety-four of the Fortune Global 100 and more than eighty percent of the Fortune Global 500.


Figure 1 - Accenture's growth in terms of revenue for the past six years.

Accenture’s growth may have been a rollercoaster ride as seen on Figure 1 but nevertheless the business is still very profitable. The company may have gotten only 3.3 percent increase in 2015 (vs 2014’s revenue) but that amounted to one billion dollars in terms of revenue. The company’s overall income in 2015 reached thirty-one billion dollars. In totality, the company is worth over seventy-one billion dollars according to Forbes.

c.	Market Segmentation

The business aims to offer its services primarily to micro and small enterprises here in the Philippines. These are companies with assets of up to fifteen million pesos.

The transactions shall never be limited to Philippine market in its entirety. The proposed business will be open to foreign entities. Transactions can be accomplished through teleconference and payment through Paypal.

d.	Industry and Market forecast

According to the research consultancy IDC, the global information technology (IT) industry market, encompassing hardware, software, services, and telecommunications, is expected to reach $3.8 trillion in 2016, up from $3.7 trillion the previous year.
Here in the Philippines, the Information Technology and Business Process Management (IT-BPM) industry has grown to be the second largest source of dollar income for the Philippine economy, according to the Information Technology and Business Process Association of the Philippines (IBPAP). In 2015, the industry generated 1.2 million direct jobs and US$ 22 billion in revenues.

In addition, the Bangko Sentral ng Pilipinas (BSP) also revealed that “should current growth rates continue, the IT-BPM industry will overtake Overseas Filipino Worker (OFW) remittances by 2017”, proving that Filipinos do not need to leave the country to provide for their families with millions of BPO jobs available in the Philippines.

According to the Philippine Daily Inquirer, the IT-BPO industry grew eighteen percent in 2014. Revenue reached US$ 18.4 billion. In 2015 it grew past the sixteen-percentile mark and is projected to grow from fifteen to seventeen percent for the fiscal year 2016.
The online retail industry or e-commerce in the Philippines is also expected to gain modest growth in the coming years. According to Statista, the whole Philippine e-commerce industry’s revenue reached eight hundred and five million dollars last 2015. By the end of 2016, it is projected to be worth one trillion and thirteen million dollars. In five years’ time (2021) it is projected to reach the two billion and three hundred forty-five-million-dollar mark.

IV.	Description of Venture

a.	Products

Products of the ventures are software (intangible products) that is customized in accordance to what the customer has specified.

Software are just secondary bi-products, the venture’s primary offering are services.

b.	Services

The venture offers customized software, software to allow them to market online, track inventories, lessen manpower, atomization, and etc.

The service solves a business problem using software, software that could improve their productivity.

c.	Size of business

The venture business will have 11 employees which of are the entrepreneurs themselves. The business fits the category of a micro enterprise.

These are justified accordingly to the Republic Act No. 9178 otherwise known as the Barangay Micro Business Enterprise (BMBE) Act of 2002, the present structure, by law, is as follows:

Micro	Up to P3,000,000
Small	P3,000,000 – 15,000,000
Medium	15,000,001 – 100,000,000
Large	Above P100,1000,000



d.	Office equipment personnel



e.	Background of entrepreneurs


V.	Product Plan

a.	Manufacturing process








Our costumer representatives Mrs. Sheryl Andag will meet with our target client and talk about what the firm offers and listen to what the clients wants from our service to help improve their business. Mrs. Sheryl will tell the customer if the service wanted is possible or not, if possible then the second phase of product shall begin.

The success of client requirements is followed by a general meeting by Mr. Mycar Chu to brainstorm what the client specification will be since the client requirements is an abstract form of what the client wants thus not being as clear as possible for the team.

After every question is answered, risk undertaking, setting goal, set calendar of activities, and have determined the features, Mr. Francis Pangan then proceeds to create the client specification for the whole programming team to follow. The client requirement is the single most important documents of the project as it is the basis of the software itself.

The programming team led by Mr. Mycar Chu is then to implement everything in the client requirements as carefully as possible and keeping in mind the possible scaling of the software, and making sure the maintenance will not be a nightmare. The lead programmer shall create modular software to easily distribute the work among the team, making it modular does not makes it easy to extend and maintain, making it modular and using great programming techniques makes it all possible. During the implementation the documents such as its flows and diagrams are created to make sure future developers can easily understand it to make maintenance and extensibility all possible.

After the implementation of the client requirements the next phase is testing which is led by Mr. Darwin Chu, his team is to be task the testing of the software to ensure its quality and fits exactly what’s in the client requirements. Reports from the team are to be given to the lead programmer Mr. Mycar Chu to evaluate whether something needs to be fix, update, or remove.

If the quality is met then proceed to its deployment for the client to use. If ever that something goes wrong a maintenance team is to be sent led by Mr. Gerald Samar to fix the issue as early as possible to prevent a possible loss for the client part as since the software becomes something important for the business to operate.


b.	Physical plant


c.	Machinery and equipment

We know the answer but we had to consider so many factors to help us understand how we choose the best possible equipment and machinery for our business because choosing and ordering the right machinery is of paramount importance. We learned that many SSI entrepreneurs (small scale industry) buys second-hand machines and equipment that leads to one of the major deficiencies in the small industry, which of the prevalence of outdated production method hinders the efficient operation, the root cause of buying second-hand machines is due to lack of investment funds and we learned in order to conquer this we have to buy equipment and machinery to the NSIC or the National Small Industries Corporation because their organization aims to provide machinery and equipment to small industrial units (like us for example), offering them a long repayment period with moderate rate of interest.

Some other ways to choose the right machinery and equipment is to seek advice of DIC (District Industries Centers), SISI (Small Industries Service Institute), and NSIC (National Small Industries Corporation). Our predicament is different from others, we do not sell tangible products nor create one, and we use computers and software to create our products and so our machinery and equipment as you call them may differ from us.

•	Computer

A computer is an electronic device for storing and processing data according to instructions given to it in a variable program. What is software without the computer? And what is a computer without software? Both coexist and dependent on each other, we use software to communicate with computers to help us compute and interpret data, it is one of the most important tools in a business as it holds valuable data for your company or even provide a business great automation that would take a human being twice his lifetime to achieve.

•	Windows 7

The team made a very crucial decision on picking what kind of operating system to use, but since windows 7 has been around the longest and is best known by everyone in the team thus Windows 7 is picked.

An Operating System is the heart and soul of the computer; it literally allows you to communicate to the software and allows the software to communicate to you, the end-user.



•	Visual Studio Community

An Integrated Development Environment used to ease the creation of software application is also a software application that provides comprehensive facilities to computer programmers for software development. It is usually consists of a source code editor, build automation tools and a debugger. It is in the heart of creation of software, the things it offers to the table is paramount importance, making the life of every developer easier than ever, plus it provides useful tools for creating things that are required for the documentation of the software.

“Free, fully-featured IDE for students, open-source and individual developers” – Microsoft

•	Github

A source code repository is a file archive and web hosting facility where a large amount of source code, for software or web page is kept, either publicly or privately. They are used to handle various version of the project, let say a build failed then they can easily restore the previous working version of that project. They also help developers submit patches of code in an organized fashion.

“GitHub is a web-based Git repository hosting service. It offers all of the distributed version control and source code management (SCM) functionality of Git as well as adding its own features.” – Wikipedia



•	SQL Server 2016

This is a database management system (DBMS) is a software application designed to manage a database (a large set structured data) and run operations on the data requested by numerous end-users.

In order to help us segregate the data from the process we’ve decided to use a database management system, this helps us separate the maintenance between the data and the process.



d.	Names of supplier of raw materials

Due to the nature of our business, we do not need raw materials to create our product, we only need office supplies.

National Book Store
(02) 888 8627
Danny Floro Bldg, C. Raymundo Ave, Pasig, 1606 Metro Manila

VI.	Operation Plan

a.	Description of company’s operation

b.	Flow orders for goods and/or services

c.	Technology utilization

VII.	Marketing Plan

a.	Pricing

The minimum price of software is P30,000 with 10 to 30 modules, and could go up if the modules exceeds it minimum of 30 modules. The training of the client’s employee to use the software is its own price of P250 per hour. The maintenance of the software however requires no fees but if additional features are required a minimum of P10,000 for an additional 1-10 modules, if the modules exceeds the 10 modules minimum then the price goes up as well.

b.	Distribution

The distribution of our products which are software, intended for private use of our customer is distributed using CDs which are directly handed to them by our customer representatives Mrs. Sheryl Andag.

Unlike shoes, bags, or pants that is sold in retail and with the intention of pleasing the majority of the customer our product is different as it is intended to solve a business needs and is customized for the customer’s vision of what it should look like. We will have no use of market outlets like in the market or malls.

c.	Promotion

The business will put up a portfolio website that will contain testimonials from our previous customers to show our credibility and reliability, details of our pricing, and the business’ contact for us to reach by the customer.

Also by harnessing the power of social media we will create fan page to further spread our presence, we will also use the word of mouth and ask customers or friends to refer us from possible clients.

d.	Product forecast

e.	Controls

VIII.	Organization Plan

a.	Form of ownership

b.	Identification of partners or principal shareholders

c.	Authority of principals

d.	Management-team background

e.	Roles and responsibilities of members of organization

IX.	Assessment of Risk

a.	Evaluating weakness of business

b.	New technologies

c.	Contingency plan

X.	Financial Plan

a.	Pro forma income statement

b.	Cash flow projections

c.	Pro forma balance sheet

d.	Break-even analysis

e.	Sources and applications funds

XI.	Appendix

a.	Letters

b.	Market and research data

c.	Lease of contacts

d.	Price lists form suppliers