University of Southeastern Philippines

INSTITUTE OF COMPUTING
Obrero, Davao City






BUSINESS PLAN
N-HandsIT: Online Yearbook








Proponents:


Rosemie Nuez
Chris Romarate
Ma. Ann Kristine Tomada
Charmaine Dayanan
Marren Joy Pequiro
Dolorosa Mancera
Basith Jumat
EXECUTIVE SUMMARY

People want to keep records of highlighting events commemorating their past years in
school. They need to capture moments within their stay and note their achievements in these
respective organizations. People can be very busy and if too much time goes by between these
photos and events, these moments are lost forever. This is why yearbooks are created and
published to make compilations of photos of the students who graduated and all the related
events in the campus. This document is all about the making of an online yearbook company
named N-HandsIT.

This document is about N-HandsITs plan on how to start and generate business
explaining the process on how the business will flow and who are the prospective partners or
allies of the company. The first chapter describes the services offered by N-HandsIT and its
objectives, scope, and assumed location. The business will focus on educational institutions
establishing itself as a competitive online yearbook company that offers packages in photo shots,
digital layouting and editing, and web designing in electronic yearbooks. The following chapters
show the estimated startup capital, expenses or cost and its revenue and profits including the
services description, the competitors, and the future services. The marketing and strategy pricing
which includes different packages offered to the customer is also tackled in this document. The
revenue model is also shown explaining the flow of the ins and outs of the money.

The last part of the document states the personnel salary and its estimated increase every
year. The estimated number of clients and costumer as well as the loss and profit of the business
and the estimated breakeven point is also shown. It shows and explains the estimated time on
when the company will be free of debt and how much is the estimated profit in a year. This
document explains the management expertise in dealing with corporate decision makers and how
the partner's reputation will be the cornerstone of the company success.

Chapter 1
INTRODUCTION

In every school, making a yearbook is significant as it serves as a remembrance as well as
material evidence that a person has graduated. Employers sometimes require applicants to show
yearbooks aside from diplomas and other pertinent documents for proof purposes as yearbooks
are more difficult to fake than diplomas. In most schools, making yearbooks is done
traditionally. As technology evolves, things are changed and enhanced to make life easier and
better. Having the yearbook online enhances the traditional way of developing and keeping
yearbooks before. Today, there are only a few online yearbooks in the Internet that suggest
different template designs, and offer services such as viewing of different batch of graduate
classes in a specified school.
The idea of making the hardbound yearbook into a digital spot creates the company N-
HandsIT. N-HandsIT will be an online yearbook company in the local market which offers
designing and publishing school yearbooks aside from services in processing the hardcopy
yearbook if the client still wants to have it. H-HandsIT will focus on educational institutions
from primary up to tertiary even to vocational institutions. N-HandsIT offers packages in
photoshooting, digital layouting and editing, and web designing electronic yearbook.
N-HandsIT will be based in Davao City, owned and operated by a group of Davaoeo
IT investors and operators. The initial office will be installed in Bo. Obrero, Davao City as its
main office.

Objectives
Customize online year book to the individual needs of each client.
Provide follow up services to each client.
Gross margin will be higher than 55% in 1 year.

Mission
N-HandsITs will be recognized as the most progressive enterprise pioneering in the online
yearbook business. N-HandsITs offers customers efficient and secured online hosting service of
essential information. It will foster future innovation in the field of web-based yearbook
publishing.

Keys to Success
Anticipate client needs
Use software solutions for these needs
Product quality and customer satisfaction. Everything we sell is guaranteed, so the
product has to do what we promise and well.
The right management team, with strong foundations in marketing, management, finance,
product development and technical skills. Enough working capital to survive in the
working-capital-intensive retail channel.


Chapter 2
COMPANY SUMMARY

Start-up Summary
The total start-up requirements are broken down and itemized as follows:
Start-up current assets include:

























Amount in Peso (P)
I. Business Registration
a. DTI Business Name 500
b. Mayors Permit for New Enterprise 700
c. Annual Registration Fee 500
SUB TOTAL 1,700

II. Human Resources
a. Photographer 8,000
b. Editor in Chief 12,000
c. Managing Editor 12,000
d. Graphics Editor 12,500
e. Web Layout Artist1 12,500
f. Web Layout Artist2 12,500
g. Programmer 12,500
SUB TOTAL 82,000

III. Real Estate
a. Office Rental 20,000
SUB TOTAL 20,000

IV. Utilities
a. Electricity 1,500
b. Water 300
c. Telecommunication
- Landline 700
- Internet 2,000
d. Office supplies/equipments
- Computer units 175,000
- Software 2,000
- Camera studio props/gadgets/others 39,350
- Camera (DSLR) 35,000
- Electric Sign 500
SUB TOTAL 256,350
TOTAL 360,050
Start-up funding is summarized as follows:








Company Locations and Facilities
N-HandsIT will open in a 100 square-meter office space and studio at Obrero, Davao
City with enough free parking for walk-in clients. This location is ideal for it is near by the
downtown area in the City of Davao and easily accessed for clients transacting via offline. The
space will be leased at P 10,000 a month with cost-of-living adjustments made annually.
Exterior facilities:
electric signage and wide display window visible to passing traffic and people
Interior facilities:
couches for waiting
counter area for customer service
samples of templates and albums to choose from
computer unit where customers can browse sample online yearbooks
utility area with camera/photo gadgets and props for studio shoots
working area for design and layout productions with high-end computers

Company Ownership
N-HandsITs is a corporation which is owned and operated by a group of Davaoeo IT
investors and operators and has a seven-man team which primarily runs the business. The group
is composed of BS Information Technology graduates who have developed full understanding in
the cycle of web-based program and electronic commerce. As of this manuscript, it has not been
chartered yet and is still considering alternatives of legal formation.
Planned Investment Amount in Peso (P)
Planned investment

Investor 1 100,000
Investor 2 100,000
Investor 3 100,000
Loan 60,050
Total Planned Investment 360,050
Total Capital 360,050
Chapter 3
SERVICES

Service Description
N-HandsIT is an Internet service which will provide an alternative to customers in
designing and publishing yearbooks in print. It will work as an online catalogue of yearbook
templates in which the customer can choose to have a basis of the theme or layout of his/her
yearbook. N-HandsIT can also offer and arrange photo shoot packages with its customers. N-
HandsIT can also arrange deals with the clients who prefer to create their yearbook by
themselves and just host the softcopies online.

Competitive Comparison
N-HandsIT considers itself to be a player in the web industry. What will make it stand
out are:
N-HandsIT will be providing products and services in an efficient and secured way
available;
customers will get the products and services online in a shorter period of time compared
to a printed yearbook;
N-HandsIT offers a relatively low-cost advantage to its business clients since resources
are online;
N-HandsIT is recommendable over bulky and risky hardbound and printed medium of
yearbooks.

Technology
N-HandsIT will use and maintain high-end capacity of tools and equipments. These
include:
complete email facilities on the Internet for working with its customers through email
delivery of queries and information;
Internet sites to host the school profile pages and photos;
sufficient computer units loaded with appropriate image-manipulating software
applications which will be used as tools for designing and layouting;
digital camera for in-house photography shooting;
security maintenance and backups of image files and other essential information in the
event of database server crash or failure and theft

Future Services
N-HandsIT will broaden its services by expanding into wider coverage in locations such
as the in the Luzon, Visayas, and Mindanao regions, and other Asian countries. This will
also include upgrading its strategies in dealing with its customers (i.e. payment schemes,
package deals, etc)
Studying on the part of upgrading the coverage of our yearbook service into a full-blown
school directories of alumni where registered users can give updates to his/her profile
even after years of publishing and advertising
Chapter 4
MARKET ANALYSIS STRATEGY

N-HandsIT will be focusing on educational institutions thus our important group of
potential customer are graduating batches of students.

Market Segmentation
Our most important market segment is the educational institutions in the local. These
companies will be calling on N-HandsIT to provide them with the online yearbook layouting and
publishing services.

Target Market Segment
The N-HandsITs target market segment focuses on the educational institutions such as in
kindergarten schools, elementary or primary schools, high schools, and university and colleges.

Competitors
The main competitors for N-HandsIT are the printing press companies which are the
usual clientele of the schools in dealing with the yearbook projects but these competitors can also
be the business partners of N-HandsIT when clients prefer hard copies aside from electronic
copies of their yearbooks.
The edge of N-HandsIT from the printing press companies is that it is no longer needed
to spend resources for the printouts of the yearbooks. Printed yearbooks are also hassle and risky
since they can be lost, destroyed by insects, fire and water hazards. N-HandsIT offers unlimited
viewing of the profiles, photos and any other related information anytime anywhere.

Business Participants









N-HandsIT is linked with established business partnerships which evolved from the
printing press industry, photography studios aside from its major clients which are the
universities, colleges, secondary or high schools, primary or elementary schools, kindergarten
and daycare centers, as well as vocational and career institutions.

Marketing Strategy
N-HandsIT uses the following marketing strategy:
Visit schools and present proposal
Offer free trials/samples (online)
Offer discounts for larger packages and to regular customers
Online and print advertisements (including leaflets, flyers)
Chapter 5
STRATEGY AND IMPLEMENTATION SUMMARY

Pricing Strategy
Our prices are competitive with other yearbook service provider. But quality service is
delivered affordably. Online inquiries and arrangements are free of service and are delivered
through mail, however, if there includes financial deals under formal conditions, agreeable
substance shall be discussed personally. Initial fee will be collected once the deal has been
agreed.
N-HandsIT has more or less the following yearbook custom-designed yearbook
programs:
Press-ready:
Yearbook Package A Saddle stitch binding
-full color soft cover (inside printing optional)
-48 pages full color/full bleeding printing
-yearbook design templates
Yearbook Package B Full Color Softcover Yearbooks
-full color soft cover (inside printing optional)
-50 pages color or B/W full-bleed printing
-yearbook design templates
-dedicated yearbook advisor/support representative
Yearbook Package C Full Color Hardcover Yearbooks
-range of hard cover styles and binding types
-50 pages color or B/W full-bleed printing
-yearbook design templates
-dedicated yearbook advisor/support representative
Virtual package Yearbook online publishing
-school /organization hosted site
-access to online secured account
-10 pages (can be enhanced)

Programs by N-HandsIT:
Yearbook Package A + Virtual Package = P 700.00
Yearbook Package B + Virtual Package = P 720.00 (B&W), P 940.00 (colored)
Yearbook Package C + Virtual Package = P 1,316.00 (B&W) + P 1,598.00 (colored)

N-HandsIT covers expenses that are needed to process the package orders to business
partners which are the printing press shops since there is no printing press equipment housed in
the workplace. This is the basis why N-HandsIT adds up a little higher compared to the
competitors charge in packages B and C (mid-range values). The services will include offline
and online support to the customer. The minimum worth of virtual hosting of a school yearbook
site is P100.00 which includes online support and secure acquisition of yearbook user accounts
for the host site.

Competitor
Package
A
Package
B
Package C
Virtual Yearbook
Package
www.entourageyearbooks.com


P 608.65
B&W:
P 611.00
Colored:
P 838.95
B&W:
P 1,316.00
Colored:
P 1,598.00


N-HandsIT


P 600.00
B&W:
P 620.00
Colored:
P 840.00
B&W:
P 1,320.00
Colored:
P 1,600.00
P 100.00
Sales Strategy

The diagram above shows the payment process of the business. First, N-HandsIT will
look for a school that will serves as the client of the company. Next, when the client wants to
avail our services, the client will then sign a contract, which includes choosing what package
they like to avail. After sometime they will give the partial payment while N-HandsIT will
communicate with some allies for the production of hard copy yearbook, parallel to that was the
making of their online yearbook by the personnel of N-HandsIT. When everything is set, N-
HandsIT will then deliver the product to the client then thats the time the client will give the full
payment to N-HandsIT.

Milestones

Start Date End Date
Business plan 02/28/11 03/31/11
Office location 03/31/11 04/30/11
Office equipments 03/31/11 04/30/11
Licensing 03/31/11 04/15/11
Web Page design 03/31/11 04/30/11
Brochures/catalogues 04/15/11 04/30/11
School Visit1 02/28/11 03/31/11
School Visit2 05/31/11 06/30/11
School Visit3 09/30/11 10/31/11

The figure and table above show the things to be done by the personnel of the company
from the start of the operation. As shown, the making of business plan will consume around 1
month same with finding and transferring to the office location and buying of office equipments
and also making web page design. The Licensing is assumed to consumed 15 days and also for
the making of brochure. The school visit will be done 3 times a year, during March, July, and
October to propose to them the services the company offers.

Strategic Alliances
Possible strategic allies are established printing press companies such as Tesoros
Printing Press, DCT Printshop (now ImageWorld), Holy Cross Printing Press, and Photo Studios
like Lito Sy Studio, and New Jersy Studio.


Chapter 6
MANAGEMENT SUMMARY

N-HandsIT initial team depends on the founders, with a little background in graphic
editorial, sales and marketing plus a consulting help as we grow in to a big company.

Organizational Structure
In the beginning, N-HandsIT shall have 5-8 personnel:
One project leader;
Two web programmers;
One graphic artist and photographer, and;
Two sales and marketing personnel;

Management Team
N-HandsIT requires a very highly experience and expertise personnel in making online
year book. Project leader should update regularly each individual who is under in his team. He
should identify the mitigate risks and resolve the issues and must also coordinate efforts for
completing activities in plan. All positions under the project leader must unite in order to finish
the project. The initial personnel plan in still tentative.

Rosemie Nuez will serve as the managing editor, also serve as Chief Financial Officer and lead
the development of appropriate financing strategies;
Chris Romarate will serve as the photographer, will also lead the marketing strategies;
Ma. Ann Kristine Tomada will serve as the graphics editor, also assist the marketing strategies;
Charmaine Dayanan will serve as editor in chief, will also lead the business plan development;
Marren Joy Pequiro will serve as web layout artist, will also assist in the financial projections;
Dolorosa Mancera will serve as web layout artist, also will assist the financial projections;
Basith Jumat will serve as the programmer, also serve as Principal System Architect. He brings
an excellent mix of hardware and software skills to the organization.

Personnel Plan


During the first year of N-HandsIT it is assume that the company will have 7 working
staff. After a year, N-HandsIT will add 2 employees. During the third year since it is expected
that the company will extend its service outside the local city as it is also assumed that there will
be another employee added. The table also shows the wages of every personnel and as year
increases their respective salary also increases. The values shown were only tentative estimations
and are subject to change.
Personnel Year 1 Year 2 Year 3
Photographer1 P 96,000 P 120,000 P 144,000
Photographer2 P 120,000 P 144,000
Editor in Chief P 144,000 P 168,000 P 192,000
Managing Editor P 144,000 P 168,000 P 192,000
Graphics Editor 1 P 150,000 P 192,000 P 216,000
Graphics Editor 2 P 216,000
Web Layout Artist1 P 150,000 P 192,000 P 216,000
Web Layout Artist2 P 150,000 P 192,000 P 216,000
Web Layout Artist3 P 216,000
Programmer1 P 150,000 P 192,000 P 216,000
Programmer2 P 192,000 P 216,000
Programmer3 P 216,000
Total People 7 9 12
TOTAL PAYROLL P 984,000 P 1,536,000 P 2,400,000
Chapter 7
FINANCIAL PLAN

The following tables indicate N-HandsITs financial flow for the whole first year of the
company performance.


N-HandsIT will get the start up capital by having loans on the bank and investors. N-
HandsIT is expected to have remaining allotted to the stockholders of the company. The table
above shows the financial flow of N-HandsIT in a year, it states that in a year N-HandsIT will be
able to return the money that was used in start up capital (or the debts) from bank and investors.
N-HandsIT is expected to have remaining amount from the profit that was subtracted to the start
up capital and that amount will be allotted to the stockholders of the company.

Period Profit Cost Revenue
1 59,950 360,050 420,000
2 534,000 386,000 920,000
3 4,000 386,000 390,000
Year 1 597,950 1,132,050 1,730,000
Profit in a year(597,950) Start up capital(360,050) =
stock(237,900)
Investor 1 100,000
Investor 2 100,000
Investor 3 100,000
Loan 60,050
Start up Capital = P
360,050
Forecast

The sample clients and the corresponding number of students in each period is tentative
and just approximations. It is assumed that N-HandsIT will have the following number of clients
in a given period and when period of time increases, the number of clients also increases.


Period 1 March Period 2 April Period 3 October
Sample Clients(7) Students# Sample Clients(10) Students # Sample Clients(12) Students#
Sped Kinder 200 USEP 1500 UIC 200
Sped Elementary 200 Holy Cross 800 Holy Cross 350
Sped High School 100 San Pedro 800 San Pedro 350
DRANHS 1000 Brok 1000 UM 350
CityHigh 1500 Davao Doc 800 Brok 300
Mabini 700 AMA 300 Davao Doc 300
Prep skul 500 STI 300 AMA 200
Ateneo 800 STI 200
UM 800 Ateneo 300
UIC 700 JMC 100
7,800 PWC 100
P 780,000 Tecaro 100
Summer
Holy Cross 200
UM 200
San Pedro 200
Brok 200
Davao Doc 200
AMA 100
STI 100
Ateneo 200
1,400
4,200 140,000 3,900
TOTAL P 420,000 TOTAL P
920,000
TOTAL P 390,000

Key Financial Indicators











The chart indicates N-HandsITs key financial indicators for the first and second years. It
shows the major growth in sales and operating expenses.

Important Assumptions
N-HandsIT based the financial plan with estimates and assumptions. It is assumed that
the year is divided in 3 periods. Period 1 is during March, period 2 is during summer, and period
3 is during October. During these three (3) periods, N-HandsIT estimates the company costs and
revenue to get the estimated company profit and loss in a year.

Projected Profit and Loss
Period1 Period2 Period3 Year 1 Period1 Period2 Period3 Year 2
Cost 360,050 386,000 386,000 1,132,050 412,000 412,000 412,000 1,236,000
Revenue 420,000 920,000 390,000 1,730,000 482,000 960,000 420,000 1,862,000
Profit 59,950 534,000 4,000 597,950 70,000 548,000 8,000 626,000
Loss 96,500 0 0 0 0 0 0 0

Year1 Year2
Sales 1,730,000 1,862,000
Cost 1,132,050 1,236,000
Profit 597,950 626,000
Loan 360,050 0
Stock 237,900 863,900
0
500,000
1,000,000
1,500,000
2,000,000
Sales Cost Profit Loan Stock
Year1
Year2
Break-even Analysis

The diagram above shows that before period 1 ends the company will return back the
amount used during the start of the operation (debt) from the bank and investors. N-HansIT after
that time will not have loss and continuously enjoy its profit without debt.