STI COLLEGE (KORONADAL)

TECH CONNECT

Business Plan Development

Presented to the Faculty of STI College Koronadal

Sta. Lucia St. Brgy. Zone 3 Koronadal City

February 26 2024
Technopreneurship
BSIT 202B

STI College Koronadal

TEMPLADO, LAWRENCE BLAKE

SUMALPONG, ANDRE IAN
TIUHUAN, AERON KIRCK
LAENO, YLTHON

Koronadal City

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Page

Title Page i
Certification iii
Table of Contents iii
Executive Summary v
[Link] and Management Background
I.1 Background of the study 1
I.2 Business Profile
I.2.1 Vision Statement 2
I.2.2 Mission Statement 2
I.2.3 Core Values 2
I.2.4 Name of the Company 2
I.2.5 Contact Information 3
I.2.6 General Business Information 3
I.3 Organizational Chart and Management Team 4
1.2.1 Organizational Chart 4
1.2.2 Management Team 5
II. Production and Operation
II.1Product / Service Description 6
II.2Product / Service Development Flowchart 7
II.3Technology Consideration 8
II.4Major Start-Up Needs 9
II.5Business Operating Workflow 1
III. Market Dimensions
III.1 Market Analysis
III.1.1 Market Research 1
III.1.2 Market Size, Growth rate, and Trends 1
III.2 Micro and Macro Environmental Analysis
3.2.1 Customer Analysis 1
3.2.2 Competitors Analysis 1
3.2.3 PESTLE Analysis 1
3.2.4. SWOT Analysis 1
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3.3 Marketing Strategies

3.3.1 Unique Selling Proposition and Value Proposition 2
3.3.2 Pricing Strategy 2
3.3.3 Distribution Strategy 2
3.3.4 Advertising and Promotional Strategy 2
IV. Financial Plan
4.1 Capital Contribution 2
4.2 Capital Expenditures (Start-Up Capital) 2
4.3 Operating Expenditures 3
4.4 Income Statement 3
4.5 Payback Period 3
4.6Return on Investment 3
[Link]
5.1 Management Schedule and other management activities.

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EXECUTIVE SUMMARY
Tech Connect is a dynamic technology company focused on
creating innovative smart devices designed to enhance the daily lives of
consumers. Our flagship product, the Tech Connect Smart Device, offers
cutting-edge features that integrate seamlessly into modern lifestyles,
providing convenience, connectivity, and advanced functionality.
Operating within the consumer electronics industry, Tech Connect
specializes in the development and distribution of smart devices. Our
product stands out with its intuitive design, user-friendly interface, and
state-of-the-art technology, making it a must-have for tech-savvy
consumers and households looking to streamline their daily activities.

Tech Connect is a privately-owned company founded by a group of

seasoned tech entrepreneurs and investors. The initial capital investment
in Tech Connect amounts to ₱5,000,000.00 which covers product
development, marketing, distribution, and initial operational expenses.
Tech Connect's headquarters is strategically at 30th Street corner 11th
Avenue St, Taguig City, Philippines – a hub for technology innovation and
business growth. This location provides access to a vibrant tech
community, skilled workforce, and excellent infrastructure that will
facilitate our growth and operational efficiency.

The start-up amount of Tech Connect is ₱5,000,000.00. This funding

supports the launch of our smart device encompassing research and
development, manufacturing, marketing campaigns, distribution
channels, and setting up our operational base. Our target market includes
tech enthusiasts, early adopters, professionals seeking convenience, and
households aiming to integrate smart technology into their daily routines.
The Tech Connect Smart Device is tailored to meet the needs of a wide

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demographic – from young adults to middle-aged consumers, particularly

those residing in urban areas.

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Mission Statement:

At Tech Connect, we are committed to delivering innovative

and reliable technological solutions that empower businesses and
individuals alike. Founded in 2024 and based in Taguig City, our
team, led by Manager Andrei Ian Sumalpong, is dedicated to
bridging the gap between technology and people. With a core team
of four passionate employees, we strive to provide exceptional
service, foster continuous innovation, and uphold our commitment
to sustainability and social responsibility. Our mission is to ensure
that our solutions are accessible, efficient, and enhance the quality
of life for all of our clients as we drive towards progress and
connectivity in an ever-evolving digital world.

1.2 Organizational Chart and Management Team

1.2.1 Organizational Chart

MANAGER

Chief Technology Product

Marketing Officer
Officer Development
Officer

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Figure 1. Organizational Chart

1.2.2 Management Team

Position Duties and Responsibilities

Manager The Manager is tasked with offering strategic guidance,

aligning the company's vision with its values, and
overseeing various aspects including corporate
governance, operations, stakeholder engagement,
financial performance, and cultivating a positive
company culture.

Chief Technology Officer The role of the Tech Connect Chief Technology Officer
(CTO) entails shaping and implementing the company's
technology vision and strategy, directing product
development, and offering technical guidance to
engineering teams. Collaborating with other executives
is crucial to ensure technology initiatives align with
business objectives and foster growth.

Marketing Officer The Marketing Officer at Tech Connect is responsible for

formulating and implementing marketing strategies
aimed at enhancing brand visibility, acquiring and
engaging customers. This role encompasses brand
management, market research, campaign development,
and performance evaluation. Collaboration with various
teams ensures alignment of marketing activities with
overarching business goals, resulting in measurable
outcomes.

Product Development The Product Development Officer at Tech Connect is

Officer tasked with spearheading the creation and oversight of
the company's product range. This involves defining
product strategies, managing the entire development
process, and coordinating with different departments for
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effective product launches. Gathering and analyzing

customer feedback informs decision-making, driving
enhancements and innovation.

Table 1. Management Team

II. Production and Operation Aspect

2.1 Detailed Product

Tech Connect offers a comprehensive suite of technology solutions

designed to empower businesses and individuals.

Product Aspect: Tech Connect's product portfolio may include

various offerings depending on its specific focus. Here are some
examples:

Software Solutions: Develop and license innovative software applications

that address specific industry needs or improve general productivity.

Hardware Products: Design and manufacture cutting-edge hardware

devices that integrate seamlessly with existing technologies.

Product Features: Regardless of the specific product category, Tech

Connect prioritizes user experience and functionality. Products will likely
possess some of the following features:

Intuitive User Interface: User-friendly design that simplifies user

interaction and streamlines the learning curve.

Advanced Functionality: Powerful features that address the core needs

of the target market.

Scalability and Customization: Products that can adapt to the specific

needs and growth of individual users or businesses.

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Security and Reliability: Robust security protocols and reliable

performance to ensure data protection and uninterrupted operation.

Service Aspect: Tech Connect understands the importance of ongoing

support to maximize customer satisfaction.

2.2 Product and Service Development Flowchart

Figure 2. Product Development Flowchart

Tech Connect operates under a well-defined product and service

development flowchart. The process begins with brainstorming sessions
to generate innovative ideas and identify emerging trends within the
target market. These insights guide subsequent research efforts, where
user needs and market demands are thoroughly
investigated to shape the development of new products or services.

Next comes prototyping, a crucial phase where quick design

iterations are created, refined, and reviewed. This iterative approach
ensures that the prototypes align with user expectations and project
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objectives. Following successful prototyping, the design phase

commences which involves the meticulous crafting of the final product
or service offering. This is followed by implementation which involves
the rigorous testing to identify and address any potential issues, and
final adjustments before the official launch. The commitment to
continuous improvement through an iterative process guarantees that
Tech Connect's offerings meet the highest quality standards and deliver
exceptional value to its customers.

Service Development Flowchart

Tech Connect's service development thrives on a data-driven,

iterative approach. It starts with in-depth market research to identify
customer pain points and opportunities within the tech landscape. This
research fuels brainstorming sessions where teams generate creative
solutions and service concepts. The most promising ideas are then
refined through user interviews and surveys to gauge potential
customer interest and ensure the service addresses real needs.

Following this feedback loop, the development phase kicks in. Here, a
detailed service blueprint is created which outlines the key features,
functionalities, and delivery methods. Prototypes are then built to test
the user experience and gather further feedback. This iterative
prototyping and testing cycle helps refine the service until it provides a
smooth and valuable experience for the target customer. Finally, after
rigorous testing and optimization, the service is officially launched with
a comprehensive marketing and support plan to ensure successful
adoption and customer satisfaction. This customer-centric approach
guarantees Tech Connect's services remain relevant, user-friendly, and
deliver genuine value in the ever-evolving tech industry.

2.3 Technology Consideration

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Tech Connect needs to consider several key technology factors to

ensure their smart devices are successful. Firstly, security and user
privacy are paramount. Tech Connect's devices will likely collect user
data, so robust security measures are essential to protect this
information from breaches. Additionally, clear and transparent user
privacy policies are crucial to build trust with their target market.
Secondly, compatibility and interconnectivity are important. Tech
Connect's devices should seamlessly integrate with existing smart
home systems and other popular technologies. This ensures a smooth
user experience and encourages wider adoption. Finally, scalability and
future-proofing are crucial considerations. Tech Connect's technology
infrastructure should be able to handle increasing user bases and
integrate new features and functionalities as technology evolves. By
addressing these key technology considerations, Tech Connect can
ensure their devices are secure, user-friendly, and adaptable, laying the
foundation for long-term success.

2.4 Major Start-Up Needs

Tech Connect requires addressing several major needs. Firstly,

securing a sufficient funding that amounts to ₱5,000,000.00 is critical. This
could involve the founders' contributions and attracting investors
through venture capital, angel investors, or crowd funding campaigns.
Funds will be needed for product development, marketing, and
operational costs to establish Tech Connect in the market. Secondly,
building a strong and competent team is essential. Tech Connect needs
personnel with expertise in technology development, business
management, marketing, and potentially even sustainability or
education fields depending on their specific product focus. A skilled
team will drive innovation, manage operations efficiently, and navigate
the challenges of a growing start-up. Finally, establishing a clear
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competitive advantage is crucial. Tech Connect needs to differentiate

themselves from existing smart device companies by offering unique
features, targeting a specific niche market, or focusing on unbeatable
sustainability practices. By addressing these major start-up needs –
funding, team building, and competitive differentiation, Tech Connect
can set a strong foundation for success and carve out a niche in the
evolving smart technology landscape. Lastly, the primary start-up
requirements for Tech Connect includes facilities, operational
equipment, furnishings, and technological aspects. For facilities, the
company needs a dedicated office workspace with essential amenities
including workstations, meeting rooms, and utilities. Operational
equipment involves computers, servers, networking devices, and
software licenses necessary for developing and maintaining the Smart
Solutions product. Additionally, furnishings such as desks, office chairs,
cabinets, and printers with ink are essential to create a comfortable and
productive environment for employees.

Office Equipment Cost Quantity Cost Unit to

Unit Needed be Produced

Computer ₱15,000.0 4 ₱60,000.00

0

Office Chairs ₱1,200.00 4 ₱4,800.00

Desks ₱1,490.00 4 ₱5,960.00

Cabinet ₱2,000.00 2 ₱4,000.00

Printer and Ink ₱5,495.00 1 ₱5,495.00

Total ₱80,255.00

Table 2. Office equipment

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This table shows a precise and comprehensive overview of the

necessary office equipment, detailing the cost per unit, the quantity
needed, and the total cost for each item. The overall expense to fully
equip the office with essential items amounts to ₱80,255.00 which
ensures that the workspace is properly established for operations.

2.5 Business Operating Workflow

Figure 3. Workflow Diagram

Product development is the engine of innovation. This process starts

with in-depth market research to understand customer needs and
market trends. Based on this research, Tech Connect conceptualizes
and builds prototypes to test and refine their ideas. Once a concept is
chosen, rigorous engineering and development brings the product to
life, followed by thorough quality assurance and testing to ensure a
polished final product.

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Figure 4. Process workflow diagram

The purchasing process focuses on creating a smooth and efficient

customer experience. When a customer initiates a purchase, the
system verifies their information and checks if the desired product is in
stock. With confirmation, the order is processed, picked, and packaged
in the warehouse before being shipped with clear communication to the
customer. Upon delivery, customers can register their devices and
access valuable resources, ensuring a positive post-purchase
experience.

Figure 5. Operational workflow diagram

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Operational workflow ties everything together. It is a continuous

cycle where product development informs marketing and sales efforts.
Targeted marketing campaigns attract customers while efficient sales
channels handle orders. Manufacturing and fulfillment ensure smooth
production and delivery while customer support and feedback play a
crucial role. This team provides technical assistance and gathers
valuable customer insights that feed back into the product
development cycle, ensuring Tech Connect's offerings continuously
evolve to meet customer needs. By establishing and refining these well-
defined workflows, Tech Connect can bridge the gap between
innovation and customer satisfaction, laying the foundation for long-
term success.

III. Market Analysis

The technology industry is rapidly evolving, with significant growth

driven by advancements in artificial intelligence, cloud computing,
cybersecurity, and the Internet of Things (IoT). The global technology
market is expected to continue expanding, offering substantial
opportunities for innovative companies like Tech Connect
3.1 Market Analysis

3.1.1 Market Research

Segmentation Tech Connect involves segmenting the market based on

factors such as industry verticals, company size, and
geographical locations. This segmentation allows Tech
Connect to tailor its products and services to meet the unique
needs of each group of customers.

Targeting Tech connect target audience within each segment. This

involves identifying the ideal customer profile based on

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criteria such as industry, company size, budget, and

technological requirements. Understanding the target
audience allows Tech Connect to develop targeted marketing
campaigns and messaging that resonate with potential
customers.

Positioning Tech Connect within the competitive landscape. This includes

conducting a competitive analysis to identify both direct and
indirect competitors offering similar technology solutions or
services. By evaluating competitors' strengths, weaknesses,
market positioning, and pricing strategies, Tech Connect can
identify opportunities to differentiate itself and carve out a
unique position in the market.

Table 3. Market Research

By applying the STP strategy, Tech Connect can effectively

identify and prioritize market segments, define its target audience,
and position itself as a leading provider of technology solutions
tailored to the specific needs of its customers. This strategic approach
allows Tech Connect to focus its resources on the most promising
opportunities and differentiate itself from competitors in the market.

3.1.2 Market Size, Growth Rate, and Trends

Market Size

The technology industry that Tech Connect is entering is vast and

rapidly expanding. Specifically, the global cloud computing market is
projected to reach approximately $832.1 billion by 2025, up from
$371.4 billion in 2020. In the United States alone, the cloud computing
market is a significant portion of this total, with North America being
the largest regional market. Meanwhile, the global cybersecurity
market, crucial for safeguarding data and systems, is expected to grow
from $173 billion in 2023 to $270 billion by 2026. Domestically, the U.S.
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cybersecurity market represents a substantial share of this growth,

driven by stringent regulatory requirements and high adoption rates of
security technologies. Additionally, the global IT services market, which
encompasses a wide range of support and maintenance services, was
valued at about $1.2 trillion in 2021 and is projected to reach $1.4
trillion by 2025 with the U.S. market being a major contributor. The
custom software development market, integral to creating tailored
solutions for businesses, is estimated to grow from $126 billion in 2020
to $208 billion by 2027, with a significant portion of this demand
coming from U.S. businesses seeking specialized software solutions.

Growth Rate
The technology sector as a whole is experiencing robust growth,
driven by the increasing digital transformation across various
industries. The global cloud computing market, for instance, is growing
at a compound annual growth rate (CAGR) of 17.5%, reflecting its
significant expansion, with the U.S. market experiencing similar growth
dynamics. The global cybersecurity market is also seeing a substantial
CAGR of 10.9% from 2021 to 2026, highlighting the rising need for
security solutions, and the U.S. market is at the forefront of this growth.
The IT services market globally is growing at a steady CAGR of 6.5%,
with the U.S. market being a significant driver. Similarly, the custom
software development market is projected to grow at a CAGR of 7.9%
from 2020 to 2027, demonstrating the ongoing demand for specialized
software solutions, particularly in the U.S.

Trends

Several key trends are shaping the landscape of these markets,

providing numerous opportunities for Tech Connect. There is an
increased adoption of cloud solutions as businesses seek scalable, cost-
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efficient, and flexible IT infrastructure. This trend is further supported

by the growing prevalence of hybrid and multi-cloud strategies. The
demand for cybersecurity is also on the rise, driven by the increasing
frequency and sophistication of cyber threats along with stricter
regulatory requirements. Additionally, the shift to remote work has
accelerated the need for remote collaboration tools, IT support, and
secure remote access solutions.
3.2 Micro and Macro Environmental Analysis

3.2.1 Customer Analysis

Identify the target demographic for Tech Connect's smart device,

considering factors such as age, income level, lifestyle, and tech-
savviness. Potential customers may include tech enthusiasts, early
adopters, professionals seeking convenience, and households looking
to streamline their daily activities Tech Connect primarily targets small
to medium-sized enterprises (SMEs), startups, and individual
consumers who require advanced, reliable, and scalable technology
solutions. These target customers span several key industries
including healthcare, finance, education, and retail – each with distinct
needs and pain points that Tech Connect aims to address.

Demographic Global Market Domestic Local Market

Segmentation Market

Age 15-25 18-30 20-35

Education level High School College University

Income level Middle income Middle to High Middle to High

Geographic Urban & Urban Urban

Location Suburban

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Table 4. Customer Analysis

3.2.2 Competitor Analysis

Tech Connect operates in a fiercely competitive market with

established players like Microsoft, Google, and Amazon dominating
with their extensive resources, comprehensive product portfolios, and
strong brand recognition, particularly in providing end-to-end
technology solutions for large-scale enterprises and government
contracts. Specialized firms such as Palo Alto Networks and Salesforce
offer deep expertise in niche areas like cybersecurity and cloud-based
CRM solutions, although their focus on specific markets might limit
their ability to provide comprehensive solutions and could be cost-
prohibitive for smaller businesses. Meanwhile, local IT service
providers offer personalized service, regional market knowledge, and
flexibility but may lack the scale and resources of larger competitors,
focusing primarily on SMEs within specific regions.

Direct Competitors

Criteria Microsoft Google Amazon

Market Global Global Global

Presence

Platform Focus Microsoft Google Cloud Amazon web

Azure Platform services

User High High Medium

Engagement

Pricing Model Pay-as-you go Pay-as-you go Pay-as-you go

Table 5. Direct Competitors

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Indirect Competitors

Criteria Telecommunic Cloud-Based Traditional

ation SaaS Hardware
Companies Providers Providers

Market Global Global Global

Presence

Platform AT&T Microsoft 365 Lenovo

Focus

User Base Smart cities Students Individual

Consumers

Revenue Advertising Subscription Product Sales

Model fees

Table 6. Indirect Competitors

3.2.3 PESTLE Analysis

Firms frequently use the PESTLE analysis to gain a deep

understanding of what external factors influence trends. It also aids in
forecasting potential future events. PESTLE is an acronym for Political,
Economic, Social, Technological, Legal, and Environmental.

Political

The government regulations on data privacy and security may

impact the development and marketing of Tech Connect's smart
devices, while government initiatives promoting innovation and
technology adoption could provide opportunities for growth.
Economic

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Economic factors such as consumer purchasing power and

market demand will influence the pricing and sales of Tech Connect's
smart devices, while global economic conditions may affect supply
chain costs and international expansion efforts.
Social

Changing consumer preferences and lifestyle trends towards

connected devices and smart home technology create opportunities
for Tech Connect's smart devices, while concerns about data privacy
and digital inclusion may pose challenges.

Technological

Rapid advancements in technology, such as IoT, AI, and edge

computing, enable Tech Connect to develop innovative features and
improve the performance of its smart devices, while staying abreast of
emerging trends is essential to remain competitive.

Legal

Compliance with regulations related to product safety, data

protection, and intellectual property rights is crucial for Tech
Connect's smart devices, while legal disputes over patents and
intellectual property may arise from competitors or partners.
Environmental

Efforts to reduce the environmental footprint of smart devices

through energy efficiency and sustainable materials align with
consumer preferences for eco-friendly products, while adherence to
environmental regulations and responsible manufacturing practices is
essential for Tech Connect's reputation and sustainability goals.

3.2.4 SWOT Analysis

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SWOT is an acronym for Strength, Weakness, Opportunities, and

Threats analysis. SWOT strategies fall into four categories:

Strength Weaknesses

 Innovative Technology  High Development costs

 High Quality design  Short product lifecycles

 Comprehensive Ecosystem

Opportunities Threats

 Partnership and  Intense Competition

collaborations
 Privacy and Security
 Customization and concerns
personalization

Table 7. SWOT Analysis

Tech Connect's smart device division boasts several strengths that

position it well in the competitive landscape of the IoT market. The
division offers an easy-to-use platform, featuring intuitive interfaces and
seamless integration with existing smart home ecosystems. Additionally,
Tech Connect's smart devices are known for their user-friendly design,
enhancing accessibility and appeal to a wide range of consumers.
Furthermore, the division benefits from a wide market reach, reaching
consumers globally through various distribution channels and
partnerships. However, there are areas of weaknesses that require
attention. The division's heavy reliance on technology may pose
challenges, such as potential technical issues and the need for consistent
software updates. Moreover, limited brand recognition may hinder
consumer trust and adoption rates, particularly in competitive markets.
Additionally, pricing challenges may deter budget-conscious consumers
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from purchasing Tech Connect's smart devices.

Despite these weaknesses, Tech Connect's smart device division
has opportunities to capitalize on. The increasing demand for smart home
technology presents a significant growth opportunity, allowing Tech
Connect to expand its product offerings and reach new markets.
Furthermore, potential partnerships with other organizations can enhance
brand visibility and market presence. Advancements in technology, such
as AI and IoT, offer opportunities to enhance the functionality and
features of Tech Connect's smart devices. Additionally, collaborations with
industry leaders can lead to the development of innovative new features
or services

In conclusion, while Tech Connect's smart device division boasts

innovative technology, user-friendly design, and strong brand reputation,
it faces challenges such as high pricing, limited compatibility, connectivity
dependencies, and security concerns. By addressing these weaknesses
and capitalizing on its strengths, Tech Connect can position itself for
continued growth and success in the competitive smart device market.

3.3 Marketing Strategies

The 8Ps of marketing is an enlarged framework that builds on the classic

4Ps (Product, Price, Place, and Promotion). It contains additional
components such as People, Process, Physical Evidence, and Positioning,
resulting in a more holistic approach to marketing strategy formulation.
Each "P" indicates a vital area of marketing that organizations should
consider to effectively reach their target audience, generate value, and
gain a competitive advantage in the market.

Product

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Market research for Tech Connect involves analyzing customer

needs, preferences, and pain points to develop innovative technology
solutions that address specific challenges faced by businesses and
individuals. This includes researching trends in cloud computing,
cybersecurity, AI, and other relevant technologies to ensure Tech
Connect's products meet market demands and offer competitive
advantages.

Price

Pricing strategies involve analyzing competitors' pricing models,

customer willingness to pay, and value perceptions to determine optimal
pricing strategies for Tech Connect's products and services. This includes
conducting pricing experiments, surveys, and market analysis to set
pricing tiers, discounts, and promotional offers that maximize profitability
and customer satisfaction.
Place

Focused distribution channels involve identifying the most effective

channels to reach target customers and deliver Tech Connect's products
and services. This includes researching online platforms, IT marketplaces,
partnerships with technology vendors, and direct sales channels to
optimize distribution strategies and expand market reach.

Promotion

Tech Connect’s promotion strategies involve analyzing customer

communication preferences, media consumption habits, and industry-
specific marketing trends to develop targeted marketing campaigns for
Tech Connect's products and services. This includes researching social
media platforms, content marketing strategies, and printed medias to
increase brand awareness and drive customer engagement.

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Process

Focused process optimization involves analyzing customer

experiences, feedback, and pain points throughout the customer journey
to identify areas for improvement and streamline Tech Connect's internal
processes. This includes researching customer onboarding, support
services, product delivery, and post-sales processes to enhance overall
customer satisfaction and loyalty.

People

Tech Connect’s researching customer demographics, preferences,

and behavior involves analyzing customer segmentation data, purchasing
patterns, and feedback to develop personalized marketing strategies and
customer experiences for Tech Connect's target audience. This includes
researching customer personas, buyer motivations, and psychographic
profiles to tailor messaging, branding, and customer

Positioning

Tech Connect’s positioning involves analyzing competitors'

positioning strategies, market trends, and customer perceptions to
differentiate Tech Connect's brand and establish a unique value
proposition. This includes researching customer perceptions of Tech
Connect's brand, strengths, and weaknesses to refine positioning
strategies and strengthen brand equity in the marketplace.

Physical Evidence

Tech Connect’s physical evidence involves analyzing customer

touchpoints, brand assets, and tangible elements of Tech Connect's
products and services to enhance overall brand perception and customer
experience. This includes researching website design, packaging, user

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interfaces, and physical locations to ensure consistency, usability, and

professionalism across all customer interactions.

By integrating these 8Ps into its marketing strategy, Tech Connect

aims to create a cohesive and effective marketing approach that drives
brand awareness, customer engagement, and business growth in the
competitive technology sector.

3.3.1 Unique Selling Proposition and Value Proposition

The Unique Selling Proposition (USP) and Value Proposition for Tech
Connect offer personalized technology solutions tailored to the specific
needs of each client, combining cutting-edge innovation with attentive
customer service to empower businesses and individuals to thrive in
the digital age hence why it offers customizable technology solutions
designed to fit your needs perfectly. From cloud computing and
cybersecurity to AI-driven insights and personalized support, Tech
Connect helps harness the power of technology to achieve objectives
efficiently and effectively. With Tech Connect, it offers a cutting-edge
technology and a trusted partnership that is committed to your
success.

3.3.2 Pricing Strategy

MODEL FEATURES Year 1 Year 2 Year 3

Basic Essential ₱2,000.00 ₱2,800.00 ₱4,200.00

features,
standard
functionality

Standar Enhanced ₱3,575.00 ₱5,005.00 ₱7,507.00

features,

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d advanced
functionality

Premiu Premium ₱8,240.00 ₱11,536.00 ₱17,304.00

m features, top-
tier
functionality

Table 8. Pricing Strategy

In this table, Tech Connect offers three models of its smart device,
each with different features and corresponding prices. The Basic model
provides essential features with standard functionality at a price of
₱2,000.00. The Standard model offers enhanced features and advanced
functionality at a price of ₱3,575.00. Finally, the Premium model includes
premium features with top-tier functionality and is priced at ₱8,240.00.
This pricing strategy allows customers to choose a model that best fits
their needs and budget, offering flexibility while maintaining competitive
pricing in the market.

3.3.3 Distribution Strategy

Figure 6. Distribution Flow Diagram

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The business distribution flow diagram illustrates the step-by-step

journey of Tech Connect's smart devices from manufacturing to the end-
users. Beginning at the manufacturing facility, where devices are
produced and packaged, they then undergo quality control checks to
ensure adherence to Tech Connect's standards. Subsequently, the
devices are transferred to the distribution center for storage and
management before being dispatched. At this center, warehouses
equipped with inventory tracking systems facilitate efficient stock
management. Upon receiving orders from various channels, including
retail, online sales, and direct sales teams, the devices are processed
accordingly. Retail distribution channels enable the devices to reach
physical stores for purchase by consumers, while online sales provide an
additional avenue for direct purchase through Tech Connect's e-
commerce platform.
Finally, post-purchase, Tech Connect offers after-sales support services
which ensure customer satisfaction through assistance with installation,
troubleshooting, and warranty issues. This comprehensive distribution
flow ensures a seamless and efficient journey for Tech Connect's smart
devices from production to the hands of the end-users while prioritizing
quality control and customer satisfaction throughout the process.

3.3.4 Advertising and Promotional Strategy

Media Type Objective Details Cost (Per

Year)
Social Media Increase brand Run social ₱0.00
Campaign awareness and media posts on
engagement platforms like
Facebook,
Instagram, and
Twitter to reach
a wider
audience
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 STI COLLEGE (KORONADAL)

interested in
smart devices.
Online ads Drive traffic to Invest in Google ₱504.75
website AdWords and
display
advertising to
drive traffic to
Tech Connect's
website, where
customers can
learn more and
make
purchases.
Tarpaulin Increase brand Post printed ₱2,000.00
awareness and tarpaulins to
engagement market
products.
Flyers Increase brand Advertise ₱1,500.00
awareness and product through
engagement giving out flyers
to potential
customers.
Total Costs ₱4,004.75
Table 9. Marketing Strategy
The objective of social media is to increase brand awareness by
posting our product on popular platforms like Facebook, Instagram, and
Twitter and reach a broader audience interested in smart devices and
smart solutions.
Online to drive traffic to Tech Connect's website, investment is
made in Google AdWords and display advertising, directing potential
customers to find more information and make purchases, with an annual
cost of ₱504.75.
Printed media target specific demographics interested in smart
technology, this is achieved through advertising in tarpaulins and flyers,
leveraging traditional print media channels, with an annual cost of ₱3,500.

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The total annual expenditure for Tech Connect's advertising and

promotional strategy for the smart device amounts to ₱4,004.75. This
investment is strategically allocated across various channels to maximize
reach, engagement, and ROI while effectively promoting the smart device
in the competitive market landscape.

IV. Financial Plan

This section is dedicated to outlining the financial framework that
supports the Tech Connect Smart Devices project. Within this chapter, we
will meticulously detail the budgetary allocations, revenue projections,
cost analyses, and financial strategies essential for the successful
implementation and sustainability of our venture.
4.1 Capital Contribution
NAME CONTRIBUTION % OF SHARES
Andrei Ian Sumalpong ₱2,000,000.00 40%
Aeron Kirck Tiuhuan ₱1,000,000.00 20%
Lawrence Blake ₱1,000,000.00 20%
Templado
Ylthon Laeno ₱1,000,000.00 20%
TOTAL ₱5,000,000.00 100%
Table 10. Capital Contribution

This table shows the capital contributions from different individuals

for the Tech Connect Smart Devices project. Andrei Ian Sumalpong
contributed ₱2,000,000.00, which represents 40% of the total shares.
Aeron Kirck Tiuhuan, Lawrence Blake Templado, and Ylthon Laeno each
contributed ₱1,000,000.00 amounting to 20% total shares for each.
4.2 Capital Expenditures (Start-Up Capital)

START-UP ASSETS AMOUNT

Manufacturing Equipment ₱46,050.00

Office Equipment ₱80,255.00

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 STI COLLEGE (KORONADAL)

Intellectual Property ₱2,592.00

Software Licenses ₱51,699.00

Initial Inventory ₱180,596.00

Cash ₱4,638,808.00

TOTAL START-UP ASSETS ₱5,000,000.00

Table 11. Start-up Capital

This table outlines the initial expenses, also known as start-up
capital, required to launch the Tech Connect Smart Devices project. The
total amount of start-up assets, which includes all these expenses, sums
up to ₱5,000,000.00. This represents the initial investment required to
kickstart the project.

START-UP EXPENDITURES YEARLY

Prototyping ₱5,869.00

Engineering ₱400,000.00

Campaign Development ₱4,004.75

Permits and Licenses ₱84,000.00

Salaries and Wages ₱327,600.00

Rent & Utilities ₱68,570.00

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 STI COLLEGE (KORONADAL)

Operating Expense ₱694,550.00

START-UP EXPENDITURE ₱1,584,593.75

TOTAL START-UP CAPITAL ₱3,415,406.25

Table 12. Tech Connect Start-up Expenditures

This table presents the start-up expenditures for a business

venture, broken down by individual expenses and summarized totals. The
table outlines the initial costs associated with launching the business,
covering various aspects such as prototyping, engineering, marketing,
permits, salaries, and rent/utilities. The total start-up expenditure is less
than the total start-up capital, leaving room for additional investment or
contingency planning.

OPERATING EXPENDITURES AMOUNT

Materials ₱46,050.00

Labor ₱1,560.00

Production Overhead ₱47,610.00

Rent and Utilities ₱68,570.00

Office Supplies and Equipment ₱90,355.00

General Overhead ₱158,905.00

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 STI COLLEGE (KORONADAL)

Personnel Costs (Customer ₱1,350.00

Support)

Support Infrastructure ₱1,560.00

R&D Personnel ₱2,910.00

R&D Materials and Equipment ₱136,385.00

R&D Collaboration ₱139,295.00

TOTAL OPERATING EXPENSE ₱694,550.00

Table 13. Operating Expenditures

This table provides a breakdown of the operating expenditures for

the Tech Connect Smart Devices project. This breakdown provides
insights into how our business allocates its resources across different
operational areas, including production, administration, research and
development, and customer support.

LICENSE AND PERMIT AMOUNT

NTC Licensing ₱7,500.00

Business License ₱25,000.00

DTI Permit ₱2,000.00

Sales Tax Permit ₱5,000.00

Zoning Permit ₱1,000.00

Manufacturing Permit ₱8,000.00

Environmental Permits ₱6,000.00

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 STI COLLEGE (KORONADAL)

Product Safety Certification ₱5,000.00

Engineering Certification ₱2,000.00

Software Licensing ₱20,000.00

Safety Clearance ₱1,000.00

Sign Permit ₱1,500.00

TOTAL ₱84,000.00

Table 14. License and Permit Expense

This table presents a breakdown of expenses related to licenses and

permits for the business, along with their corresponding amounts. This
breakdown shows the various regulatory requirements and associated
costs that the business has incurred to operate legally and in compliance
with relevant regulations and standards.

MARKETING EXPENSE AMOUNT

Social Media Campaign ₱0.00

Online Ads ₱504.75

Tarpaulin (20pcs) ₱2,000.00

Flyers (100pcs) ₱1,500.00

TOTAL ₱4,004.75

Table 15. Marketing Expense

This table appears to detail the expenses incurred in various

marketing activities. the company allocated resources towards online
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advertising, as well as traditional marketing materials such as tarpaulins

and flyers.

2024 2025 2026

Prototyping ₱5,869.00 ₱6,749.35 ₱7,896.73

Engineering ₱400,000.00 ₱460,000.00 ₱538,200.00

Materials ₱46,050.00 ₱52, 957.00 ₱61,959.00

Campaign ₱4,004.75 ₱4,605.46 ₱5,388.38

Development

Salaries and ₱327,600.00 ₱376,740.00 ₱440,785.00

Wages

Rent and ₱68,570.00 ₱78,855.00 ₱92,260.00

Utilities

Tax rate 10% 10% 10%

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TOTAL ₱937,303.25 ₱1,077,897.0 ₱1,261,138.0

0 0

Table 16. Product Cost Yearly

This table outlines the yearly cost associated with various aspects of
product development and operation over a three-year period. This shows
all the expenses for each year, resulting in a total expenditure of
₱937,303.25 in 2024, ₱1,077,897.00 in 2025, and ₱1,261,138.00 in 2026.

2024 2025 2026

Total ₱46,050 ₱92,100.00 ₱99,468.00

Cost of
Product

Units to Basic Standar Premiu Basic Standar Premium Basic Standar Premium
d m 5,00 d 2,000 5,00 d 2,000
be 5,00
2,000 0 3,000 0 3,000
0 3,000
Produce
d

Profit 30% 40% 50%

margin

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 STI COLLEGE (KORONADAL)

Basic Standar Premiu Basic Standard Premiu Basic Standard Premiu

Target
d m ₱2,800 m ₱4,200 m
price ₱2,00 ₱5,005
₱11,536
₱7,507
₱17,304
₱8,240
0 ₱3,57
per 5
product

Table 17. Product Cost per Product

This table provides a breakdown of the total cost of the product, the
number of units to be produced, profit margins, and target prices per
product for three consecutive years (2024, 2025, and 2026).

Direct Materials Cost Quantity Cost Unit to

Unit Needed be Produced

Python ₱550.00 1 ₱550.00

[Link]. ₱825.00 1 ₱825.00

MySQL ₱275.00 1 ₱275.00

Azure ₱3,850.00 1 ₱3,850.00

RSA ₱2,750.00 1 ₱2,750.00

Git ₱0.00 1 ₱0.00

Total ₱8,250.00

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Table 18. Software Solutions Materials Expense

This table shows the direct materials required for developing our
software solutions product, along with their respective costs and
quantities needed per unit produced. This information is crucial for
budgeting and procurement purposes during the software development
process.

Direct Materials Cost Quantity Cost Unit to

Unit Needed be Produced

CPUs, GPUs, ₱10,000.0 1 ₱10,000.00

microcontrollers 0

RAM, ROM, Flash storage ₱5,000.00 1 ₱5,000.00

Lidar ₱15,000.0 1 ₱15,000.00

0

Aluminum, stainless ₱500.00 1 ₱500.00

steel

ABS, polycarbonate ₱200.00 1 ₱200.00

LCD ₱3,000.00 1 ₱3,000.00

Lithium-ion Batteries ₱1,000.00 1 ₱3,000.00

Voltage regulators ₱500.00 1 ₱500.00

Wi-Fi, Bluetooth ₱800.00 1 ₱800.00

Ethernet ports, USB ₱300.00 1 ₱300.00

connectors

3D Printing ₱1,500.00 1 ₱1,500.00

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TOTAL ₱37,800.00

Table 19. Smart Device Material Expense

This table provides a breakdown of the direct materials required for

manufacturing our smart device products, along with their respective
costs and quantities needed per unit produced.

Position 2024 (1st 2025(2nd 2026 (3rd

Year) Year) Year)

Manager ₱106,200.00 ₱111,510.00 ₱119,315.00

Chief Technology ₱81,000.00 ₱85,050.00 ₱91,003.00

Officer

Development Officer ₱70,200.00 ₱73,710.00 ₱78,869.00

Marketing Officer ₱70,200.00 ₱73,710.00 ₱78,869.00

Table 20. Salaries and Wages

This table outlines the salaries for different positions within a

company over a three-year period. The table provides a clear overview of
the salary progression for key positions within the company over the
specified three-year period, aiding in financial planning and budgeting.

Particular 2024 2025 2026

Net Income ₱6,262,935 ₱6,889,228 ₱7,922,612

.00 .00 .00

Cash in Flows

Start-up Capital ₱5,000,000. - -

00

Beginning Cash 0 - -
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 STI COLLEGE (KORONADAL)

Balance

Sales ₱60,963,840 ₱67,060,224 ₱77,199,257.

.00 .00 00

Total Cash Inflows ₱65,963,840 ₱73,949,452 ₱85,121,869.

.00 .00 00

Cash Outflows

Repair and ₱4,000.00 ₱4,400.00 ₱5,148.00

Maintenance

Rent Expense ₱60,000.00 ₱120,000.00 ₱180,000.00

Office Supplies ₱10,080.00 ₱20,160.00 ₱30,240.00

Direct Materials ₱46,050.00 ₱92,100.00 ₱138,150.00

Salary Expense ₱327,600.00 ₱343,980.00 ₱368,056.00

Transportation ₱900.00 ₱1,800.00 ₱2,700.00

Water ₱1,300.00 ₱2,600.00 ₱3,900.00

Electricity ₱5,800.00 ₱11,600.00 ₱17,400.00

Internet ₱1,470.00 ₱2,940.00 ₱4,410.00

TOTAL CASH ₱457,200.0 ₱599,580.0 ₱750,004.0

OUTFLOWS 0 0 0

NET CASH FLOWS ₱5,805,735 ₱6,289,648 ₱7,172,608

.00 .00 .00

Table 21. Statement of Cash flow

This table presents the statement of cash flows for Tech Connect
over a three-year period. It provides an overview of Tech Connect's cash

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flows, detailing the sources and uses of cash over the three-year period. It
shows whether the company is generating sufficient cash to cover its
expenses and investments.

2024 2025 2026

Sales ₱60,963,840.00 ₱70,108,416.00 ₱82,026,846.00

Less: Cost ₱54,432,000.00 ₱62,596,800.00 ₱73,238,256.00

of Sale

Gross Profit ₱6,531,840.00 ₱7,511,616.00 ₱8,788,590.00

Net Income ₱6,262,935.00 ₱7,202,375.00 ₱8,426,778.00

Table 22. Statement of Income

This table presents the statement of income for a business over a three-
year period. This is an overview of the business' revenue, expenses, and
profitability over the three-year period, enabling stakeholders to assess
the financial performance and make informed decisions.
Financial Analysis
Year Cost of Net cash flow Remaining
Investment cash needed
to
2024 ₱5,000,000.00 ₱5,805,735.00 0
2025 ₱5,000,000.00 ₱6,289,648.00 0
2026 ₱5,000,000.00 ₱7,172,608.00 0
Total ₱19,267,991.0
0
Table 23. Payback Period
This table shows the remaining cash needed to recover the project's
initial investment and any subsequent investment increases due to the
10% annual cost increase.

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Year Cost of Net Income ROI

Income after tax
2024 ₱54,432,000.00 ₱6,262,935.00 11.50
2025 ₱62,596,800.00 ₱7,202,375.00 11.50
2026 ₱73,238,256.00 ₱8,426,778.00 11.50
Table 24. Return of Investment
This table provides insight into the business's financial performance,
indicating the cost of generating income, the resulting net income after
taxes, and the return on investment for each year. The consistent ROI
suggests that the business is maintaining a stable level of profitability
relative to its investments over the specified period.

Year Net income After Net sales Profitability

Tax ratio
2024 ₱6,262,935.00 ₱60,963,840 10.27
.00
2025 ₱7,202,375.00 ₱70,108,416 10.27
.00
2026 ₱8,426,778.00 ₱82,026,846 10.27
.00
Table 25. Profitability Ratio

This table shows the company's financial health by detailing its

yearly net income after taxes, total sales revenue, and profitability ratio.
The consistent profitability ratio implies that the company is sustaining a
steady level of profitability in relation to its sales revenue throughout the
designated time frame.

V. Appendices

5.1 Management Schedule (GANTT Chart) and other

management activities.
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5. Management Schedule (GANTT Chart) and other management

activities.
June July August Septemb
er

Brainstormi
ng

Create
Business
Plan

Start
Business
Plan

Market
Research

Competitor
Analysis

Develop
Business

Model

Draft
Executive
Summary

Create
Marketing
Plan

Financial

Planning

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 STI COLLEGE (KORONADAL)

Review and
finalize

Curriculum Vitae
Name: Andrei Sumalpong
Position: Chief Executive Officer
Contact Information:
Email: [Link]@[Link]
Phone: 09539165317

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 STI COLLEGE (KORONADAL)

Address: Purok 2, Dumadalig, Tantangan, South Cotabato, Philippines

9510
Professional Summary:
Visionary leader with extensive experience in technology management
and business development. Dedicated to driving innovation and leading
Tech Connect towards becoming a global leader in technology solutions.
Education:
MBA, Business Administration, [STI College Koronadal]
BS, Computer Science, [STI College Koronadal]
Professional Experience:
Manager, Tech Connect (2024 - Present)
Overseeing company strategy and operations.
Driving growth and innovation initiatives.
Ensuring commitment to sustainability and social responsibility.
Skills:
Strategic Planning
Business Development
Leadership
Innovation Management
Achievements:
Successfully launched and scaled multiple tech ventures.
Recognized for leadership excellence in technology management.

Curriculum Vitae
Name: Aeron Kirck Tiuhuan
Position: Chief Technology Officer
Contact Information:
Email: [Link]@[Link]
Phone: 09128257866
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Address: Center Paredes Street Brgy. Zone IV, Koronadal City, Philippines
9506
Professional Summary:
Experienced CTO with a strong background in software development and
systems architecture. Committed to advancing Tech Connect’s
technological capabilities and delivering innovative solutions.
Education:
MS, Computer Science, [STI Koronadal College]
BS, Information Technology, [STI Koronadal College]
Professional Experience:
CTO, Tech Connect (2024 - Present)
Leading technology strategy and implementation.
Managing development teams and technical projects.
Overseeing infrastructure and software development.
Skills:
Software Development
Systems Architecture
Project Management
Team Leadership
Achievements:
Developed and deployed enterprise-level tech solutions.
Spearheaded numerous successful tech projects.

Curriculum Vitae
Name: Lawrence Blake Templado
Position: Marketing Officer
Contact Information:
Email: [Link]@[Link]
Phone: 09934917607
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Address: Benigno Aquino St. Brgy. Zone III, Koronadal City, Philippines
9506
Professional Summary:
Dynamic marketing professional with a proven track record in digital
marketing and brand management. Focused on driving brand growth and
market presence for Tech Connect.
Education:
MBA, Marketing, [STI College Koronadal]
BS, Marketing, [STI College Koronadal]
Professional Experience:
Marketing Officer, Tech Connect (2024 - Present)
Developing and executing marketing strategies.
Enhancing brand visibility and market reach.
Coordinating with sales and product teams for market alignment.
Skills:
Digital Marketing
Brand Management
Market Analysis
Campaign Management
Achievements:
Increased brand engagement and market share.
Successfully launched multiple marketing campaigns.

Curriculum Vitae
Ylthon Laeno
Position: Product Development Officer
Contact Information:
Email: [Link]@[Link]
Phone: (123) 456-7893

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Address: BagongSikat (GPS), Koronadal City, South Cotabato, Philippines

9506
Professional Summary:
Innovative product development expert with extensive experience in
creating and managing tech products. Dedicated to developing products
that meet client needs and drive company growth.
Education:
MS, Product Design, [STI College Koronadal]
BS, Engineering, [STI College Koronadal]
Professional Experience:
Product Development Officer, Tech Connect (2024 - Present)
Leading product development initiatives.
Managing product lifecycle from concept to launch.
Collaborating with cross-functional teams to ensure product success.
Skills:
Product Design
Project Management
Cross-functional Collaboration
Innovation
Achievements:
Successfully developed and launched several tech products.
Improved product development processes and efficiencies.

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