AB iProTech

COMPUTER REPAIR
CENTER
Business Proposal
IT-116 SYSTEM INTEGRATION AND ARCHITECTURE 1

ABOCADO, BEA M.
BS INFOTECH-3B/Student

Mr. GINEO B. JUEGO

Instructor 1 1
AB iProTech Computer Repair Center provide both
software and hardware consulting/repair to small
business as well as personal PC and laptops.

SERVICES SPECIALIZED;
✓ Virus and Spyware Removal
✓ Operating System Installation
✓ Broken Laptop Recovery
✓ Hard Disk Drive Recovery
✓ Home and Office Networking Installation
✓ Printer Reset
✓ Update and Maintenance Laptop & PC

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 Table of Content
I. Executive Summary…………………………………………………………..….. [5]
a. Business objective
b. Mission statement
c. Guiding principles
d. Key to success
II. Company Description …………………………………………………….…….. [6]
a. Ownership
b. Legal form
c. System architecture and data flow diagram
d. Location and facilities
III. Product ………………………………………………………………................. [10]
a. Products/services description
b. Competitive comparison
c. Product/service sourcing
d. Inventory management
e. Warehousing and fulfillment
f. Future products/service
IV. Market Analysis……………………………………………………….................[11]
a. Industry analysis
1. Market size
2. Industry participants
3. Main competitions
4. Market segment
b. Market test
c. Target market segment strategy
1. Market needs
2. Market trends
3. Market growth
4. Return investment
V. Marketing Strategy and Implementation………………………………..……. [12]
a. SWOT analysis
1. Strength
2. Weakness
3. Opportunities
4. Threats
b. Strategy pyramid
c. Unique selling proposition (usp)
d. Competitive edge
e. Marketing strategy and positioning
1. Positioning statement
2. Pricing strategy
3. Promotion and advertising strategy
4. Website
5. Marketing program
f. Sales strategy
1. Sales forecast
2. Sales program
g. Legal
h. Milestone

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 i. Exit strategy
VI. Organization and Management ……………………….………………... [18]
a. Organization structure
b. Management team
c. Management team gaps
d. Personnel plan
e. Board of directors
VII. Financial Plan ………………………………………………….………….[21]
a. Important assumptions
b. Start-up cost
c. Source and use of funds
d. Break even analysis
e. Projection
1. Projected profit and loss
2. Projected cash flow
3. Projected balance sheet
f. Business ratios

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1.0 Executive Summary
AB iProTech a new start up business locate to North Centro Sipocot. It offers a
comprehensive computer repair service for residential, personal and small business
to address their computer needs. AB iProTech services include software installation,
virus and malware removal, software and hardware upgrades, system maintenance,
printer repair and reset and online/remote support to computer. We allow customer
to get a highly recommended computer repair services in town.

1.1 Business Objectives

AB iProTech signify the small business PC users and other personal pc users
like teacher and students who encountering computer difficulties. The goal of AB
iProTech a computer repair business are the following;

a. To produce a high standard for on-site computer repair service

available to the community with lost cost.
b. To generate essential IT market provider so that AB iProTech is a
common name.
c. Provide constant growth in sales from the start-up of business to the
future.
d. Lastly, to get customer satisfaction with high percentage to our
costumer to get again the services we provide.
1.2 Mission Statement

AB iProTech a computer repair shop has a mission to set a high standard for
onsite computer aid through employees fully equip in term of computer repair
knowledge and experience and also give a quick response to customer needs. Our
costumer will always receive a fair and full attention and best recommendation at
very affordable price.

Our customer will receive high standard and trusted quality of customer
services in community. We make sure that the employees we hire the one who has a
pleasant personality, equip to solve any computer related problems and also hard
working in doing his/her job. Our employees will receive extensive training and
seminar in computer related, they get a fair pay, benefits and incentives to use their
own good judgment to solve customer problems. We are also aiming to the top 1
repair shop in municipality of Sipocot.

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1.3 Guiding Principle

AB iProTech computer repair shop commit to values such as affordable price,

ethicality delivery of their services, pleasant personality and manner of employees
and owner must and comfortable place and secure maintenance customer computer.

1.4 Keys to Success

AB iProTech needs to meet the following keys to be able to achieve the

success.

1. Establish a unique brand identity (business name and logo) and also
embrace the digital advancement to have a strong asset in business
market.
2. Develop customer and business relationship to repeat customers to get
services offers.
3. Getting the job done to solve customer problem in sure, safe and fast way
in offering 100% guarantee.
4. Employees and owners give the best services that customers need with
pleasant manner.
5. Offers discount to customer.
6. Consider the market trends.
7. Hire a fully equip employees that has specialization and undergo training
in solving software and hardware repair and maintenance.
2.0 Company Description

AB iProTech computer repair and maintenance located in North Centro,

Sipocot Camarines Sur. We provide computer and technical consulting like repairs,
training networking and upgrade services to small business who use computer to
operate their business like SOCIO, Tom Eloy and 101. Public and private
organization and offices that use computer in their operation.

AB iProTech computer repair shop will be owned and managed by Bea

Abocado, a computer science and maintenance and repair professional.

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2.1 Ownership

AB iProTech computer repair owned and managed by Bea Abocado. She

graduated degree in BS INFOTECH from CBSUA university with a specialization of
computer maintenance and repair. There are some types of ownership such as
single proprietorship, partnership, company and corporation. Through of this the
most suitable form of ownership of the AB iProTech is a single proprietorship.

All assets of business are owned by proprietor and all debts of the business are
his\her debts and they must pay them from personal resources, it means that the
owner has unlimited liability. The main advantage of single proprietorship is easy to
start up, relatively less regulation, full control over the business, easy to continue or
discontinue the business operation. All the profits of the business will take by the
owner.

A single proprietorship is not corporation; it does not pay corporate taxes, but
rather the person who organized the business pay self-employment taxes on the
profits made, making accounting is much simple for the owner.

2.2 Legal Form

AB iProTech will register to various legal form to a newbie business. The

business needs to comply with all the legal documentary papers that will make the
business legal, binding and lawful. Those papers will protect the entire business
jurisdiction before, during and after business exist. The documentary papers need
for compliance when starting-up a business are;

a. Barangay Permits

AB iProTech is need to comply with this permit since it’s is new business.
It’s essential to secure barangay clearance for recognition in the community
especially that the business is planned to set up around the area.

b. Department of Trade and Industry (DTI) Registration

This is the branch of government that deals with the registration of the
BTR or Business Trade Name this will be the protection for business name.
Once it’s done, AB iProTech get the Certificate of Business Name Registration.

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 c. Mayor’s Business Permit

Get acknowledgement to local government that business put-up to a new

or old business should have this permit that will allowing them to start business
around their municipality. The office of the Mayor requires to pay for the local
business taxes and for compliances with the Bureau of Fire Protection, building
permits and other applicable permit such as DENR for environment compliance.

d. Bureau of Internal Revenue (BIR) Registration

This is the office where the Tax Identification Number (TIN) available
both individual and corporation business.

e. SSS, PAG-IBIG and PHILHEALTH

Since, AB iProTech will hire employees so need to register the business

into these three agencies so to comply with the labor laws. This will make sure
that the shop will pay for own and employees receives the appropriate benefits
according to the law.

2.3 System Architecture and Data Flow Diagram

a. System Architecture
A system architecture is
representation of a system in which there
is a mapping of functionality into
hardware and software components. A
mapping of the software and hardware
architecture and human interaction with
those components. Its conceptual model
that describes the behavior of multiple
components and systems like multiple software application, network devices,
hardware and even other machinery system.

The relationship of the different components of the whole system includes

the user, mobile, internet, web interface, owner and database. The database will
serve as the stored and retrieved data from the user and owner use mobile phone
and laptop. Users use mobile phone while the owner will access the system

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 through laptop to respond the queries of the user. The internet will link to the laptop
and mobile phone.

b. Data Flow Diagram

Data flow diagrams show the

interactions between a system and
other actors (external factors) with
which the system is designed to
interface. It can be helpful in
understanding the context which the
system will be part of. It also show a system, as a whole and its inputs and outputs
from/to external factors.

This diagram shows on the user and owner interact within the application and
web interface of the system. The database is cloud-based, this will allow every
transaction or data automatically save or stored in database over the web. The
customer placed an order, owner managed the products, rider accepts the order and
deliver to customer and manager overview and manage it in the system.

User can login to the system as their user details, and can place an order to
purchase while the system gives the order information, product information and the
customer information. The owner will put his/her service details and owner’s details
to the system while the system gives the owner information, order information of the
user, the services information and the sale information. The manager can input the
service details, user details and owner details to the system, while system output
gives the sale information, user information, service information.

2.4 Location and Facilities

AB iProTech will renting a space along Hi-way near to school and
government. The two hundred (200) meters radius requirements as provided in the
existing zoning code and other applicable rules and regulation wherein computer
repair school and other similar establishment and places of amusements should be
put up or constructed in estimated two hundred (200) meters away from church,
schools, hospitals and other government offices shall be strictly complied with.

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3.0 Products
3.1 Product/Service Description
AB iProTech computer repair will offer computer repairing, software
installation, virus and malware removal, software and hardware upgrades, system
maintenance, printer repair and reset; and online/remote support to computer. As pc
repair and client demands grow, the shop will offer software developments the
business. At the first day of repair shop will offer onsite and consulting service so
that customers will not need to take time for visiting the shop out of their busy days
to bring their computer into the shop. Much of the diagnose equipment will be
portable and will remove a pc to shop only when the problem requires more detail
diagnose or repair.

AB iProTech offer extended maintenance contracts, so that the customer will

deal with technical support and repair need as a single line-item expenses, rather
than plan up for expected crashes and problems with rainy day found they never
use. Maintenance contract will go through with high grows income for the business,
and it will bring great satisfaction to customer.

3.2 Competitive Comparison

Based on survey and observation, found in the computer repairing and
maintenance there w2ill have two or more competitors. In municipality of Sipocot
there’s a lot of competitors present like PC HUB, RicSum Repair Shop and many
more.
3.3 Product /Service Sourcing
AB iProTech will have agreements with several computer trading electronics
equipment and machine suppliers.
3.4 Inventory Management
AB iProTech will use inventory management system to easily the store and
display the earning profit, equipment uses and schedule for pickup of already repair
computer and laptop.
3.5 Warehousing and Fulfillment

AB iProTech will have its own warehouse for storing old and new machines,
equipment and for storing of customer defective computer and laptops.

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3.6 Future Product/Services

AB iProTech future services aside from onsite consulting we plan for the
future to have an online consultation as far engaging to digital trend in the market
and also rich out those people who can’t go to our shop. We also hire more
professional technician to software and hardware to make an easily to solve
costumer problem. We can accommodate increase number of customer visiting our
shop.

4.0 Market Analysis

4.1 Industry Analysis

The Philippines was one of the innovate country in some aspect the
technology was emerging and contributed a lot like school, government offices,
hospitals and more. However, in the industry if technology important make sure the
usability of both software and hardware, if it is on the state of serious issues like
malfunction, infected of viruses and malware may be the devices like computer and
laptop all files store their it can crash it all. So, the market provides a computer
related solution, they have computer training, computer maintenance and repair. In
Sipocot the number of computer users, computer training center, school offer ICT,
computer repair and other related activities are present and continuously increase
from time to time.

4.1.1 Market Size

The municipality of Sipocot has a lot of students, teachers and employed

workers that based their work on computer/laptop and some small business where
use computer to operate their business. The number of populations of student
from public and private provide a huge impact to business since they use
computers and laptop as their learning materials, to government office use it to
keep the confidential data and to business use it for business transaction. Sipocot
one of the most comfortable towns for startup business.

4.1.2 Industry Participation

AB iProTech provide high standard trusted quality and affordable computer

repair services. Since, the computer and laptop user were dominants today, the
shop has an important role to industry to provide computer related solutions. As

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far, the growing technological industry repair shop/center provide computer repair
services to earn profit, customer satisfaction and also make it available to
community in affordable price.

4.1.3 Main Competitors

There will be at least two main competitors for AB iProTech computer

repair shop are the following;

a. PC Hub Sipocot

They offer custom build computer sets and also repair all kinds of PC,
laptops and printers. There main shop located at Daet Camarines Norte but
they have branch located at #32 San Juan Avenue South Centro Sipocot also
they contact thru their Facebook page PC Hub Sipocot and message to
pchuhsipocot2023@gmail.com

b. FIXit Computer Repair Services

FIXit offer repair to desktop computer, laptop/printer, reformat desktop

and more. They can contact to 09464126556 and also visit their shop located
at 121 North Aurora Sipocot (Along Lupi Skates Terminal).

c. Daiki’s Computer Repair Shop

Daiki’s services offer repair and maintenance laptop/desktop/printer

repair, CCTV installation, Piso Wi-Fi/Piso Net installation. They can contact to
09928385484 or message to their Facebook page Daiki Repair Shop and also
customer can visit their shop located at Poblacion, Sipocot.

4.1.4 Market Segments

The existing computer service market will be extensive that categorizing its
rather difficult. The positional market will be broken down in two or more group
based on their need home pc user/laptop and business computer users and
government offices.

a. HOME PC USERS

The home pc and laptop user include generally between the ages of 30
and 70. Who are more comfortable with technology and willing to attempt

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 repairs and upgrades on their own, they generally use computers to do email,
play games, write letters and other purpose.

b. STUDENS and TEACHERS LAPTOP USERS

To educational aspects both student and teachers tends to use laptop

frequently due to a lot of activities, reports, presentation and projects that
need to present it printed or on the screen by that the usability of computer
was increase and they can’t avoid to experience computer malfunction like
lagging of OS, expiration and activation issue of office and more.

c. SMALL BUSINESS USERS

Those computer-based business will provide the high efficiency for

business revenue. The small business market will be defined as customer
within two or more computer or a network which they use for business
purpose at least 30% of time. The business use computer into minor usage
such as updating a business website, keeping record, generate receipts and
others.

4.2 Market Test

As newbie business we conducted feasibility study, survey and interview how
our business gets the customer attention to our business provide satisfaction to
costumers. We conduct dry run fir testing and foresee the market impact of our
business.
4.3 Target Market Segment Strategy

AB iProTech computer repair center specified target those home pc owners,

students and teachers, computer base small business in Sipocot and it neighboring
municipality. AB iProTech marketing strategy will be based in making the right
services available to the right target customer with ab affordable prices. We will
ensure our services prices takes customer budget into consideration and that these
people would highly appreciate the services we provide. One of our intentions will be
to target those innovative or proactive repair shop in municipality of Sipocot.

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 4.3.1 Market Needs

The municipality of Sipocot has a lot of computers base business-like

department store, drug store and more. To education purpose the student and
teacher were use computer and laptop efficiently, so that the market needs quick,
authentic, high standard quality of repair service in very affordable price for
computer repair solution.

4.3.2 Market Trends

The most obvious trend in the market is the increasing number of

technological devices in an IT firm. The computer and laptop have become a basic
necessity in business and education. Having a center for solving computer
malfunction very much necessary into one community not just earning
money/profit, getting customer satisfaction but to help people to have their usable
device, to improve and develop their individuality progress.

4.3.3 Market Growth

The market for services of AB iProTech computer repair center will growing
rapidly. Large municipality cater large population where user exist in different
devices. Sipocot support population that has many same needs and interest. The
student and teachers continue to grow as the public and private educational
institution and also for computer base business are one of the primaries gives high
profit to a business. The more customer the more customer satisfaction and profit
will increase as we expect.

4.3.4 Return of Investment

AB iProTech calculated amount or return on investment cost. We will use
analytics that serves aa benchmark for shaping marketing strategies for the future.

5.0 Marketing Strategy and Implementation

AB iProTech computer repair shop will rendering to quick, authentic,
attractive, high quality and affordable repairing in town.
5.1 SWOT Analysis
5.1.1 Strength
AB iProTech computer repair center will provide high standard quality
of services because owner and employees well trained and

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 professional and experience on their profession as their business
needs. Although the cost of replacing a computer and laptop of our
customer can be equivalent to the repair income of our business.
5.1.2 Weaknesses
AB iProTech are constant competitors with other computer repair
services. Competitors can offer similar services, limited startup cost
and limited flexibility in pricing. The lack of marketing strategies,
undifferentiated, services in relation to competitors, location of AB
iProTech and damage reputation.
5.1.3 Opportunity
AB iProTech expand by hiring additional professional computer
technician that will technically operate in behalf of the business. Ability
to expand to computer repair shop with a lot of branches.
5.1.4 Threats
AB iProTech also facing threats like new competitors in the markets,
price wars with competitors, a competitor has new innovative services
and legal acquisition like taxation to business.
5.2 Strategy Pyramid
AB iProTech will do research for the business plan that will gather suggested
marketing strategies. These are especially suited to computer consulting/repair
center.

a. Budget Friendly
AB iProTech offers discount
and make the price customer
budget friendly since the
target of this business is
student and teachers.
b. Equip Personnel
AB iProTech will hires
professional and experience technician for software and hardware to
provide quick and trusted service for their computer.

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 c. Advertising
AB iProTech also use social media platform services like Tiktok,
YouTube and Facebook. We make a videos and capture images of
containing how our technician resolve computer problem.
d. Web Promotion
AB iProTech will use website to easily connect with another potential
customer.
e. Networking and Reference
AB iProTech will use existing contacts and customers to build a large
network of potential customer.
5.3 Unique Selling Proposition (USP)
AB iProTech deliver a premium computer repair services with costumer prices
affordability. AB iProTech service provide a quick, authentic and budget friendly. A
computer repair center is more advance and competitive than other computer repair
shop.
5.4 Competitive Edge
AB iProTech competitive edge is our positioning as a strategic computer
repair service present in Sipocot to our clients, who are clients more than
customers. We are building business based on long standing relationship with
satisfaction of customer feedbacks, we will simultaneously build friendly competition
to our competitors. The longer the relationship stand, the more we help our
customer to really understand what we offer to them and why they need it. The
delivery of customer services as end-to-end solution to their device problem that
makes significant impact on gaining commitment from the market. AB iProTech
believes in partnering and having mutual relation to our customers provide us an
increase revenue and positive feedback.

5.5 Marketing Strategy and Positioning

One secret element of our marketing strategy will differentiate from our
competitors. We intend to offer extremely reasonable and affordable price in
comparison to our competitors and also, we need to be able to sustain that. Market
penetration through lower prices shall be undertaken where need be, while premium
pricing tin the case of the upper end of the market.

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 5.5.1 Positioning Statement
AB iProTech will position itself as reliable computer software and hardware
solution provider and trusted services of our employees who makes sure business
work very well, customer is comfortable and conversant with the business. Unlike the
other business, we intend to know the customer when they visit our shop when they
needed, offering authentic technical support, services like resetting, repair and
installing.

5.5.2 Pricing Strategy

We must charge an appropriate for high-end, high-quality service and support
we offer. Our revenue has to match our cost structure, so that salaries we pay to our
employees will assure customer to get good services and support that balance to our
revenue charge. Our pricing strategy based in how customer pc damage the pricing
minimum for all services start 300.00 pesos at the first three months from our startup
of AB iProTech offer 20% discount to all services cater of our technician.

5.5.3 Promotion and Advertising Strategy

Our promotion strategy based on informing potential customer like student,
teachers, home pc user and computer based small business of our existence and
making the right information available to our target customer. AB iProTech intends to
utilize an aggressive promotional campaign to introduce our services to the market.
The intention will be taking advantage of some media platform in announcing
services and in the process of enforcing awareness of our services.

5.5.4 Website
AB iProTech will use website of schedule a consultation with one or more
computer/laptop user to get their assistance. Website help our business increase our
flexibility, control, branding awareness and credibility.

5.5.5 Marketing Program

AB iProTech computer repair center will also use marketing strategies to

increase the profit like advertising materials, persona selling, events and internet
marketing.

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 a. Advertising Materials

The fact the AB iProTech are new in the market we tend to undertake
extensive advertising of our name and services we offer. We use flyers,
brochure and other printed advertisement materials that will adequately expose
our business into the market.

b. Personal Selling

Word of mouth is critical way of promotion of our service, we will make

sure that once we gain customer, we never lose him/her. To gain that, we must
work establish and maintain relationship. Personal selling is a powerful form of
promotion due to the fact that is very flexible to customer, it enables us to get
the customer need to specific service, as well as we give concise details if
what service we offer.

c. Events

Some IT companies on the market dictates that the small business need
to promotes itself through participation in a trade show and exposition not only
increase brand awareness but also gain recognition to aa a no.1 innovative
and services quality in the market. Those events as a good opportunity for AB
iProTech network with various business and individuality.

d. Internet Marketing

AB iProTech services sell and promote over the internet its very cost
effective to reach large number of potential clients. We intend to make website
and Facebook page to easily for our customer to reach out us anywhere and
everywhere.

5.6 Sales Strategy

AB iProTech will receives money from the services provided combination to
sales commission, services fees, transaction charges and sale of hardware and
software, providing of transitionally based activities that provide opportunity to build
brand identity and loyalty that our marketing play important role to get high profit.

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 5.6.1 Sales Forecast

The sales forecast of AB iProTech monthly summary sale the annual sales
projection it should be noted that as we become established and known on the
market, we project sales to increase at faster rate than initial year.

5.6.2 Sales Program

Our sales will go through invest other materials use in repairing and also for
pay salary and benefits of our employees. We also pay to bills like electric and
water bill and also to rent to the space where our business resides.

5.7 Legal

AB iProTech will comply to those paper that will protect our rights, brands
and to legitimate repair services those legal requirements we assure that before we
fully start our business that those legal requirements like Mayors permit, barangay
permit, BIR and DTI registration, and also for the safety and insurance of our
employees we also comply for the agency like PhilHealth, SSS and PAG-IBIG.

5.8 Milestone

AB iProTech established a strategic roadmap plan to guide us through the

first year of operation and for future. Some specific milestone we plan to hit includes;

a. Hiring additional computer technician who has experience and professional

with NCII passer for computer related repair and maintenance.
b. Launching our online consulting and establishing strong social media
presence.
c. Providing excellent customer and offer repair services for computer and
laptop to build loyal customer.
d. Achieving a 20% market share in Sipocot within the first year of operation.
e. Reinvesting profit to funds the expansion of our business by opening two or
more repair shop in other municipalities.
5.9 Exit Strategy

All goods business strategies add section that lays to the benchmark used in
deciding to call it quit.

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6.0 Organization and Management

Our management team comprised with many years of experience in the long-
term care provider and software/hardware development. We have one manager and
two computer technicians (head and assistance).

6.1 Organization Structure

OWNER/MANAGER

Head Computer Assistance

Technician Computer
Technician

6.2 Management Team

AB iProTech management team consist of manager(owner), head
technician and assistance technician.
6.3 Management Team Gaps
a. Manager- A person who own the business that responsible for controlling or
administering all a part of a business. Ensures a safe, secure and legal work
environment. It also supervisor who control and directs the personnel and
activities inside and out of business. Achieving the firm goal through the
execution of four basic management function the planning, organizing,
leading and controlling.
b. Head Computer Technician – A person who responsible for maintaining
computer equipment and do everything from perform maintenance to
configure component and software and install routine and update to system
software.
c. Assistance Computer Technician – A person who provide technical
support to customers across wide ranges of hardware and software. It
responsible for installing new hardware, fixing broken parts of computer,
troubleshooting issues and implementing repairs and updates to computer
and laptop.

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6.4 Personnel Plan
AB iProTech decide to hire qualified and competent hand to occupy the
following positions. Our employee’s salary depends on their capacity and relevance
with the work that time the minimum salary per repaired unit range between 300-
500 pesos. The position is render to the flow information from managers to
assistance technician in respected average salary.

Position Average Salary

Manager 45%
Head Computer Technician 30%
Assistance Computer Technician 25%
Total 100
6.5 Board of Directors

AB iProTech a small computer repair business cannot afford to have a board

of director position but all transaction and business operation oversee and manage
by manager the owner itself.

7.0 Financial Plans

The following will be comprised to financial plat for AB iProTech computer

repair center and it will be includes business equipment, cash flow projection,
perform balance sheet and break-even analysis.

7.1 Important Assumption

To get on the top computer repair shop in town AB iProTech the owner
provides cash and loan that will serve as an asset. Our conservative sales forecast
based on industry research to the local area, increasing through two to three years.
To achieve these goals, we will use aggressive advertising campaign and even after
moving to a leased space and hiring additional technician. The financial plan
depends on important assumptions.

From the beginning, we recognize that collection days are critical, but not a
factor we can influence easily. Interest rates, tax rates, and personnel burden are
based on conservative assumptions. Others include 30-day average collection days,
sales entirely on invoice basis, including a favorable deposit policy, expenses mainly

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on a net 30-day basis, 30 days on average for payment of invoices, and present-day
interest rates.

7.2 Start-Up Cost

AB iProTech computer repair center will use of 150,000 pesos for startup
capital, 50,000 pesos for advertising and other materials needed, the 30,000 pesos
will go through working capital and another 30,000 pesos for pay for salary and
40,000 pesos for other bills.

7.3 Source and Use of Funds

AB iProTech sources from personal saving and other properties 110,000

pesos savings and will take 20,000 loans.

The use of fund we go thru:

a. Legal requirements
b. Websites
c. Insurances
d. Advertisements (Print/online)
e. Repair tools and materials
f. Employees salary
g. Bills and rent
7.4 Break-Even Analysis

We don’t really expect to reach break-even until several months into the
business operation, as illustrated in the financials.

Break -Even Analysis

Monthly Revenue Break-Even P 47,662

Assumption:

Average Percent Variable Cost 50%

Estimated Monthly Fixed Cost P 23,000

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7.5 Projection

To get our AB iProTech business began, we provide cash, loan and

investment. We also seeking for short term loan to anchored with owners how
collateral and rapid to three years. For first three month our financial plan demand
limited to growth followed to higher sales even we employed another technician.

7.5.1 Projected Profit and Loss

The AB iProTech as we aim to establish a name for ourselves in the market

and staff members receive training in the delivery of our services, initial marketing
and training costs will be comparatively expensive. The creation of sales collateral,
advertising costs, and function costs will result in this. To ensure market
development, we will launch new marketing initiatives and expand those already in
place as our market share grows and money is made. But eventually, these
initiatives will start bringing in money for the company, which we will reinvest.

Our predicted Profit and Loss, with sales rising steadily from the first year
through the second and into the third. We believe operating at a profit in the first
year. Our gross margin should be higher than this prediction, and our cost of sales
should be significantly reduced.

7.5.2 Projected Cash Flow

On our first month out of 100% we are targeting 40% customer that will
maybe categories to our customer either students or teachers. And to our second
month estimated target will be 60% out of 100%. Lastly will on third month we are
highly targeting 80% customers.

7.5.3 Projected Balance Sheet

Our projected balance that displays the business total assets and how the asset
is financed either debt or equity. Our projected asset to three years was increase
and our liabilities total 300,000 and the equity 30% of the business operated very
well.

7.6 Business Ratios

AB iProTech total sales for the years was 150,000 pesos. After subtracting all
expenses, the net profit for the year turn to 300,000 pesos. To calculate profit

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margins, divided to net profit by total sales and multiply to percentage so the profit
margin would be 30% this result would give efficiency rate and ability manage cost
effectively the business in future.

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