BUSINESS PLAN OF A START-UP

OCTA TECHNOLOGIES

Submitter to:
DR. AMEER ABDUL BASIT
GROUP MEMBERS

• Bilal Ahmad Mughal – 17136191

• Muhammad Saad – 17136147
• Muneeb Hussain – 17136045
• Abdul Mateen – 17136102
• Huma Irshad – 17136107
 EXECUTIVE SUMMARY

• Summarizes the whole business plan, section by section.

• 1. Industry Analysis 6. Design and Development Plan
• 2. Company Description 7. Operations Plan
• 3. Market Analysis 8. Management Team and Structure
• 4. Economics of the Business 9. Overall Schedule
• 5.Marketing Plan 10. Financial Projections
• 11. Appendices
 THE ECONOMICS OF THE BUSINESS

Revenue Drivers & Profit Margin:

• Selling of silicon chips is the only revenue driver.

• Cost of manufacturing the silicon wafer (3-inch) is 9300 Rs and its selling price will
be 10,600 Rs.

• The contribution/profit margin per piece will be 1300 Rs.

THE ECONOMICS OF THE BUSINESS

Fixed Costs:
Type of cost Amount (PKR)

Rent of 75,000
property
Salaries 3,00,000

Depreciation 83,500
(per month)

Internet Bill 3,500

Total 4,62,000
THE ECONOMICS OF THE BUSINESS
Variable Costs:
Type of cost Amount (PKR)

Cost of manufacturing 65,10,000

Transportation Cost 50,000

Maintenance Cost 30,000

Bunny Suits and Safety 50,000

Equipment
Electricity Bill 1,20,000

Gas Bill 80,000

Total 68,40,000
THE ECONOMICS OF THE BUSINESS
Startup Costs:
Type of cost Amount (PKR)
Equipment 1,00,00,000
Air tightness of building 6,00,000
Rent Security for building 1,50,000
Research and Development 8,00,000
Registration of the company 41,200
Total 1,15,91,200
 THE ECONOMICS OF THE BUSINESS

Break-even Analysis:
• The per month total cost would be 73,02,000.
• The break-even quantity to cover these costs will be 689 units.
• The break-even quantity of the year will be 8267 units.
FINANCIAL PROJECTIONS
Total Money Needed:
Type of Expense Amount (PKR)
Equipment 1,00,00,000
Rent 1,50,000
Airtightness and Precaution 6,00,000
Research and Development 8,00,000
Registration of the company 41,200
Running Finance 18,00,000
Total 1,33,91,200
 FINANCIAL PROJECTIONS
Sources of Raising Funds:
• Each founding member will contribute 6 Lacs making it a total of 30 Lacs.
• For the remaining amount, incubator (Plan 9) will be preferred.
Individual investment Rs
• Angel Investors. 6,00,000
Total investment of the Rs
founding members 30,00,000
Investment from Rs
incubators/investors 1,03,91,200
 FINANCIAL PROJECTIONS
Assumptions Sheet (1/2):
 Semiconductor industry is expected to grow more than double in next 10 years.
 The growth rate of this industry will be 8.4% in 2021.
 We will manufacture 700 silicon wafers per month in first year, 750 per month in second year and 8000 in 3rd
year.
 We will manufacture only one type of silicon wafer (3 inches).
 Cost of one wafer will be 9500 Rs and its selling price will be 10600 in 1st year, 10700 in 2nd year and 10800 in
3rd year.
 Operators will work on multiple machines.
 More equipment will be bought after 2 years.
 5% income tax will be applied.
 FINANCIAL PROJECTIONS
Assumptions Sheet (2/2):
 Very little competition in the industry.
 The selling will be done on cash basis only.
 Suppliers will be paid after 2 weeks.
 There will be no stock at the end of the month.
 We will always have a backup of raw materials of worth 2,00,000 in first 2 years and 2,50,000 in
3rd year.
 All expenses will be paid at the end of the month.
 All of the retained earnings will be kept in business.
FINANCIAL PROJECTIONS
Pro forma Income Statement:
FINANCIAL PROJECTIONS
Pro forma Balance Sheet:
FINANCIAL PROJECTIONS
Ratio Analysis
 OPERATIONS PLAN
General Approach to Operations:
Back-end activities (1/2):
• Main raw materials are silica sand and carbon.
• Silicon ingot of mono crystalline structure.
• Wafer scribing
• Polishing, fabrication through photolithography, ion implantation and
etching process.
• Testing and packing
 OPERATIONS PLAN
General Approach to Operations:
Back-end activities (2/2):
• Reliable Suppliers
• Employees, Cleaning staff and Security Guard
• Hire an expert/engineer for R&D.

Front-end activities:
• Quality of the chip
• Distribution
OPERATIONS PLAN
Supply Chain
 BUSINESS LOCATION:

• We will take a building of one canal in Gujranwala. The location will be

Mor Aimanabad. We have chosen this place because it is at a side from the
city. Our business requires the least dust and pollution possible so it is a clear
area comparative to other places.
 FACILITIES AND EQUIPMENT

• Here is the complete list of our equipment and facilities:

• Manufacturing Machinery includes:
Furnace, scribing machine, polishing machine, dicing machine and probing machines.
• While manufacturing safety equipment will be needed which are:
Bunny Suits, goggles and gloves.
• Facilities are:
i. Air tight building
ii. Clean room
 COMPANY DESCRIPTION

• Our company name is OCTA Technologies (Private) Limited and our

business plan is to manufacture silicon chips for electronic devices, mainly
for smart phones, which are prepared by sand.
• Our company will be B2B (Business to business) as we are not selling
directly to the customers.
 COMPANY HISTORY

• We are class fellows in university and in our course the project is to develop
a business plan from scratch to end. After a brain storming session we
selected best 5 ideas among which were presented in the discussion out of
which one was selected by our instructor and that was the manufacturing of
silicon chips.
 MISSION STATEMENT

• Our Mission at OCTA Technologies is delivering finest technological

components with ingenuity, innovation and imagination.
 PRODUCTS AND SERVICES:

• Our company is manufacturing a single product which is silicon chip for mobiles which is
prepared by sand. The chip is built on the surface of the silicon wafer. The chip will be of
square shape and size 4 mm and the diameter of wafer will be 3 inches.
• The number of chips that can be place on the surface of wafer is calculated by this formula:
• N = π (R-√A)2 / A
• N = Number of chips per wafer
• R = Effective radius of the wafer
• A = Area of the chip
 CURRENT STATUS

• We are currently developing our business plan for this company. It is the
initial phase of planning and once it is done, the business will begin to
operate
 LEGAL STATUS AND OWNERSHIP:

• Currently, there is no legal status of our company but we will register it with
SECP in the future. We will register our company legally and select Private
Limited incorporation type for our company.
• As it is a startup and business may need more funds in future, so it will be
easier to raise funds with a private limited company.
 KEY PARTNERSHIPS:

• As we are producing silicon chips for another business, which are mobile
manufacturing companies. We will have an agreement with them and this
will be our main partnership because they are our primary clients.
• Another important partnership will be with our suppliers.
 MANAGEMENT STRUCTURE

• No of Employees = 10
• No of Department= 03
 MARKETING TEAM

• Bilal Mughal
• Abdul Mateen Rathore

To manage the promotion and maintain the positioning of our company.

 Their main focus is to attract more clients to buy from our company
 To raise the more understanding about our company through the formation of marketing campaign .
 OPERATION MANAGEMENT TEAM

Saad intizar
Muneeb Hussain
• To formulate the strategy and to implement these strategies in the company.

• They are responsible for

• managing activities
• production of our product,
• improving performance.
• operation process, approval of design, planning, controlling of company’s activities.
 HEAD OF FINANCIAL DEPARTMENT

Huma Awan
• She is responsible to
 Preparation of budget
Balance sheet,
Managing the records
Develop knowledge about the product and process of company.
Reconciling daily, weekly or monthly transactions.
 BOARD OF DIRECTORS

• Bilal Mughal
• Abdul Mateen Rathore
• Muneeb Mughal
• Saad Intizar
• Huma Awan
• To

 Supervise or evaluate the process

 Provide direction
 oversee the management of the company.
 BOARD OF ADVISOR

• Our board of advisors will have 2 members

• 1. Muhammad Tahir (Taxation Lawyer)

• 2. Muhammad Nadeem Mughal (CEO of H.R. Cookware and H.R.
Engineering)
 ORGANIZATIONAL CHART
board of
director s

operation finance marketing

team department team

promotion
formulating managing improve preparation managing
managemen
strategy activities performance of budget records
t

reconciling create brand

transactions awareness
 OVERALL SCHEDULE

• Start with research and Development

• Hire Engineer or Expert
• A Graphics Designer
• Funding
• Registration
• Production and Delivery
 OVERALL SCHEDULE
Activities Time frame
Research and development (10-15 days) until 20 March
2021
Virtual model of chip and wafer (2 days) 22 March 2021

Funding/ ordering the machinery/ (2 months) until 22 May 2021

registration through SECP
Arrival of machinery (within 1 month) 22 June
2021
Settlement of machinery (2-3 days) 25 June 2021

Production of chip and wafer (within 1 week) 1 July 2021

 
First sale of our chip (After a month) 1 August 2021
 MARKET ANALYSIS

• Industry: Semiconductor Industry

• Segmentation of semiconductors: Data processing
Networking &

• B2B/B2C
Communication

Data Processing

• Market selection: Demographic 13% 3%

32%
Industrial devices

13% Consumer Electronics

10% Automotive
29%
Military&civil aerospace
 COMPETITOR ANALYSIS

• Identify competitors: direct, indirect and future

• Competitive analysis Grid

NAME OCTA QUALCOMM EXYNOS Kirin

Price Low high medium medium

Functionality Medium high medium medium

Heating high Very high high high

 MARKETING PLAN

Marketing Strategy

• Set our marketing goal

• Conduct market research
• Analyze the research
• Identify our target companies
• Determine our budget
• Develop marketing strategy
• Implementation
• Feedback or check the result
 MARKETING PLAN

4p’s of Marketing
• Product
• Price
• Place
• Promotion
 SALES PROCESS

Prospecting Preparation
• Prospecting
• Preparation
• Approach Follow-up Approach

• Presentation
• Handling objections
• Closing Closing Presentation

• Follow-up Handling