SOFTWARE DEVELOPMENT

1. INTRODUCTION:

Computer has grown to become essential in the operations of business It has also
demonstrated itself, especially in recent years, to be very powerful tool in design and
manufacturing. Through Software Applications the work of the organizations would be
converted to ‘Smart work’. Software help an organization in each and every stage like staff
management, salary management, clients management, ERP systems, Billing systems, E-mail
and SMS campaigns and contact management and many more.

2. SERVICE & ITS APPLICATION:

Software development services are the basic requirement of organization and any industry.
Number of software applied to different sectors like Manufacturing industry, Food Industry,
Education campus and many more. Basic software like TELLY, ERP, BILLING, are applied to
all the sectors. Software are playing major role in stock market for the brokers as well as
buyers.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Promoter for this service may have higher studies in software development designing as well
as backend coding in JAVA, dotNet or any other language plus background of sales and
marketing can be an value added plus point so that it brings down the cost of building
project and also make the implementation smoother and it will require less time to build with
greater quality.

4. INDUSTRY LOOK OUT AND TRENDS

Gartner predicted early this year that the public cloud market would be worth $204 billion in
2016. The industry is expected to compare to 2015. Estimated global public cloud services
would register a 22% compound yearly growth towards 2020.

The figures seem on track even as we wait for SaaS industry report 2016 numbers to come
in early next year (the trends have been portrayed pretty accurate thus far, you can take a
look at our if you like). At worst, both Gartner’s and Forrester’s figures won’t be far off if we
consider the positive trends in the industry that we’ve seen in the past twelve months.
Growth isn’t everything, though. Let’s take a look at five major SaaS market trends that
deserve your attention.

5. MARKET POTENTIAL AND MARKETING ISSUES:

Requirement for each industry is automation. We need different type of software for
different type of applications to automate work in several organizations. Organization wants
to work fast day by day using software, which can lead them to their goals and targets.
Organizations can achieve several tasks easily with the use of compatible software. Job of a
software developer is to make a task simpler and compatible for the person who is average
educated and have less knowledge about technology. These end users should also able to
operate software easily.

6. REQUIREMENTS – Material/Equipment and manpower

Resources
1. Computers with latest OS and Network Infrastructure
2. Advanced Software such as Visual Studio, Dreamweaver and more according to the
requirement.
Manpower
1. Software developers: 2 or 3 minimum, who are skilled to write code in various
languages according to requirement
2. Tech-Support: 1 who can manage server data and hosting
3. Sales and marketing: 1 or 2 who can work on official documentation and can re-
present project in front of client.

7. MANUFACTURING PROCESS:

• Defining Software Goal: This is probably the most important phase of any
software development project as you define the goals, set up the overall structure,
decide on content and assign roles and the different deliverables throughout the
project.

• Developing Software Structure: The software structure forms the backbone of

the website. It acts as a reference guide for the team during the entire duration of
the project. Use flowcharts to show the flow of the structure.

• Designing and Production: In this phase, make sure the designer works together
with the programmer to ensure the implementation of coherent design elements.
After the client approves the design drafts, the designer and the graphic team work
on the look and the feel of the website. Compression, transparency, efficient use of
color and design combine to create effective web graphics. The production stage is a
point where the actual website is created. After the design and layout of the site is
completed, the site goes into the engineering part of the work. Here, you will take all
of the individual graphic elements from the prototype and use them to create the
actual, functional site.

Testing, collecting feedbacks and fixing bugs: Although testing is something that’s done
throughout the development process as well, there will always be bugs left. And we’re not
only talking about software bugs. Even a design can be buggy. So after giving the final touch
the site will be ready to go live!

8. MANPOWER REQUIREMENT:

Sr. No. Designation of Number of Monthly Total

Employees Employees Salary ₹ Amount

1 Software Development 3 15,000 45,000

2 Tech Support 1 8,000 8,000
3 Marketing Support 2 10,000 20,000
1 Quality testing person 1 15,000 15,000
2 Accounts/Stores Assistant 1 12,500 12,500
3 Office Boy 1 9,000 9,000
Total 1,09,500

9. IMPLEMENTATION SCHEDULE:

The project can be implemented in 3 months’ time as detailed below:

Sr. No. Activity Time Required

(in m onths)
1 Acquisition of premises 1.00
2 Construction (if applicable) 1.00
3 Procurement & installation of Plant & Machinery 1.00
4 Arrangement of Finance 2.00
5 Recruitment of required manpower 1.00

Total time required (some activities shall run concurrently) 3.00

10. COST OF PROJECT:

The project shall cost ₹ 2.51 lakhs as detailed below:

Sr No Description Qtty Amount (Rs) Total (Rs)

1 Building Website for software service Centre 1 ₹ 20,000.00 ₹ 20,000.00

2 Computers - with all necessary hardware and 5 ₹ 27,000.00 ₹ 1,35,000.00
installed Windows and MS Office
3 Purchas bulk hosting services 1 ₹20,000.00 ₹20,000.00
3 Software licensing 1 ₹ 16,000.00 ₹ 16,000.00
3 Network Installation 1 ₹ 10,000.00 ₹ 10,000.00
4 Office Furniture 1 ₹ 50,000.00 ₹ 50,000.00
A Total ₹ 2,51,000.00

11. MEANS OF FINANCE:

Bank term loans are assumed @ 75 % of fixed assets. The proposed funding pattern
is as under:
Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution 1.17

2 Bank Finance 1.34

Total 2.51

12. WORKING CAPITAL CALCULATION:

The project requires working capital of 1.69 lakhs as detailed below:

Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance

1 Inventories 0.00 0.25 0.00 0.00

2 Receivables 0.00 0.25 0.00 0.00

3 Overheads 1.69 100% 1.69 0.00

4 Creditors - 0.00 0.00

Total 1.69 1.69 0.00

Turnover
Sr. No Description Cost/Unit Quantity Sales/ Revenue/year
/Month month Rs. In Lakhs
1 Software web applications ₹30,000 8 240000.00 28.80
2 Software desktop applications ₹52,000 10 520000.00 62.40
Total 91.20

13. LIST OF MACHINARY REQUIRD

Sr. No. Description Qtty Amount Total

1 Computers - with all necessary hardware 2 ₹ 27,000 ₹ 54,000
and installed Windows and MS Office
2 Vehicle 4 ₹ 40,000 ₹ 1,60,000
3 Network Installation devices 1 ₹ 5,000 ₹ 5,000

All the Computers, its peripherals and other equipment are available from local
manufacturers. The entrepreneur needs to ensure proper selection of product mix and
proper type of equipments and accessories to have modern and flexible designs. Some of the
suppliers of computers and accessories are as below:
1. Impressive Computers
Hasan Ali House No. 4/41-A,
Noor Baug, Umerkhadi,
Mumbai - 400009,
Maharashtra, India

2. Computer Planet
Shop No. 1, Shaniwar Peth-53,
Opposite AmruteshwarMandir,
Amruteshwar Co Operative Housing Society,
Near Shaniwar Wada,
Pune – 411030,
Maharashtra, India
 3. Visicube Technologies Private limited
Door No. 1-8-315,
Begumpet, Opposite US Consulate,
Hyderabad - 500016,
Telangana, India

4. Micon Automation Systems Private Limited

A-814, Siddhi Vinayak Towers,
Behind DCP Office, Makarba,
Ahmedabad - 380051,
Gujarat, India

5. Adaptek Automation Technology

No. 13, F- 3, 2nd Floor,
Main Road, Adyar Nehru Nagar,
Near H.D.F.C. Bank A.T.M.,
Chennai - 600020,
Tamil Nadu, India

14. PROFITABILITY CALCULATIONS:

Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

1 Capacity Utilization % 60% 70% 80% 90% 100%

2 Sales ₹. In Lacs 54.72 63.84 72.96 82.08 91.20

Raw Materials & Other direct

3 ₹. In Lacs 6.25 7.29 8.33 9.37 10.41
inputs

4 Gross Margin ₹. In Lacs 48.47 56.55 64.63 72.71 80.79

5 Overheads except interest ₹. In Lacs 4.26 4.52 5.05 5.21 5.32

6 Interest ₹. In Lacs 0.35 0.35 0.23 0.18 0.14

7 Depreciation ₹. In Lacs 4.34 3.10 2.17 1.55 1.40

8 Net Profit before tax ₹. In Lacs 39.53 48.58 57.17 65.77 73.93
The basis of profitability calculation:
The growth of selling capacity will be increased 10% per year. (This is assumed by various
analysis and study; it can be increased according to the selling strategy.)

Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per litre.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.

15. BREAKEVEN ANALYSIS:

Sr. No. Particulars UOM Value

1 Sales at full capacity ₹. In Lacs 91.20

2 Variable costs ₹. In Lacs 10.41

3 Fixed costs incl. interest ₹. In Lacs 5.46

4 BEP = FC/(SR-VC) x 100 % of capacity 6.76%

16. STATUTORY / GOVERNMENT APPROVALS

Bureau of Indian Standards (BIS) is operating Compulsory Registration Scheme (CRS) for
Electronics & IT Goods as per the provision of Chapter IVA of THE BUREAU OF INDIAN
STANDARDS RULES, 1987 for the product categories notified by Meaty. Visit official
government website (Bureau of Indian Standards) for notice about products on:
http://crsbis.in/BIS/
Entrepreneur may contact State Pollution Control Board where ever it is applicable.

17. BACKWARD AND FORWARD INTEGRATIONS

It is assumed that the unit will be viable at 75% efficiency on single shift basis considering 5
working days or as per demand of area per week.
The rate of interest in the scheme is taken at 11.5 % for both fixed and working capital. Due
to liberalization and competition among banks, lower rate of interest is possible in future.

The prices of machinery and equipment are approximate which are ruling locally at the time
of preparation of the project. When a tailor-cut project is prepared the necessary changes
are to be made at the local level.

The cost of staff and labour is approximate which is ruling locally at the time of preparation
of the profile. When a tailor-cut project is prepared the necessary changes are to be made.

18. TRAINING CENTERS AND COURSES

There is no specific course in repairing and assembling services, but the most
authorized center is government authorized “ITI” available in all the cities across the
country.
India Training institute of computer technology conducts various technical courses in
different cities to enable students to make a bright career. Most of our vocational programs
are job-oriented with which students can start earning the day they finish their training or
can learn them as a hobby. Students can join for any of these in vacations as all these are
short-term certificate courses.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed
therein. Further the same have been given by way of information only and do not carry any
recommendation.
Use all the templets provide below to
design your own
BUSINESS PLAN
EXECUTIVE SUMMARY

This business plan is a projection for the period from ____ / ____ / 20____ till ____ / ____ / 20____

Name of the business: ____________________________________________________________________________________________________________

Contact address: _______________________________________________ Telephone: ____________________________________________

Type of business: Legal form: _____________________________________________

•• Manufacturer of the following good(s): Owners:_____________________________________________

•• Service operator to provide the following service(s):

_____________________________________________
•• Retailer running the following type of shop:
Managers: ____________________________________________
•• Wholesaler running the following wholesale business:
_____________________________________________
•• Other (please specify):
_____________________________________________
______________________________________________________________ Qualifications and experience in attached CVs

: Sources of start-up capital:

Customers: ____________________________________________________
___________________________________ ____________________
_______________________________________________________________
___________________________________ ____________________
Staff: _________________________________________________________
___________________________________ ____________________
______________________________________________________________
___________________________________ ____________________
______________________________________________________________
___________________________________ ____________________
 1. BUSINESS IDEA

Name of the business: ____________________________________________________________________________________________________________

Type of business:

Manufacturer Service operator Retailer Wholesaler Other: ___________________________________________________

The business is going to produce the following products: _____________________________________________________________________________

_______________________________________________________________________________________________________________________________

The customers will be: ___________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will sell in the following ways: _________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will satisfy the following needs of the customers: ________________________________________________________________________

_______________________________________________________________________________________________________________________________

My personal motivation to retain this business idea: _________________________________________________________________________________

 2.1 MARKET RESEARCH

Needs and preferences of Gaps (that competitors

Products Customers Competitors
customers have not fulfilled)
Product 1:

Product 2:

Product 3:

Product 4:
 2.2 Marketing Plan
Product

Good, service or range of products:

1.______________________ 2. ______________________ 3. ______________________ 4. ______________________

Quality

Colour

Size

Packaging

Certification
 2.3 Marketing Plan
Price

Good, service or range of products:

1.____________________ 2. ____________________ 3. ____________________ 4. ____________________

Cost

The price that customers are willing to

pay

Competitors’ prices

Price

Reasons for setting this price

Discounts will be given to the

following customers

Reason for giving discounts

Credit will be given to the following

customers

Reason for giving credit

 2.4 MARKETING PLAN
Place

Location:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

This location is chosen for the following reasons:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The monthly cost of this location is: ____________________( → section 6.3) This cost includes: _________________________________________

Method of distribution:

The business will sell to:

Direct Retail Wholesale Others (please specify): __________________________________________

This method of distribution is chosen for the following reason:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________
 2.5 MARKETING PLAN
Promotion

Means Details Costs

Direct marketing

Advertising

Publicity

Sales promotion

→ section 6.3)
Total promotion costs (
 2.6 MARKETING PLAN
People

Position Recruiting criteria Training plan

 2.7 MARKETING PLAN
Process

Steps Description

1.

2.

3.

4.

5.

6.

7.
 2.8 MARKETING PLAN
Physical Evidence

Physical Evidence Description

Office premises and interior decoration

Internet presence and website

Packaging

Signage

Employee uniforms

Business cards

Mail boxes, etc.

 3. SALES ESTIMATION

Product Distribution Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
1. Direct

Retail

.....

Total

2. Direct

Retail

.....

Total

3. Direct

Retail

.....

Total

4. Direct

Retail

.....

Total

Total sales volume

Total sales in the market

Market share
 4.1 ORGANIZATION STRUCTURE

Tasks and responsibilities Position Staff

1.

2.

3.

4.

5.

6.

7.
 4.2 STAFF REQUIREMENTS AND COSTS
Contributions to
Task Required skills and experience Performed by Monthly pay pension fund and health
insurance

Total number of permanent staff

→ Section 6.3)
Total staff cost per month (
 5.1 LEGAL FORM OF BUSINESS

The business will operate as a: Sole Proprietorship Partnership Cooperative Limited Company

Other: __________________________

The reason for choosing this form of business is:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The owners will be:

Name: ___________________________________________________ Name: ___________________________________________________

Position in the business: ____________________________________ Position in the business: ____________________________________

Description of skills: Description of skills:

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

Relevant experience: Relevant experience:

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________
 5.2 LEGAL RESPONSIBILITIES AND INSURANCE

The following taxes apply to the business: ___________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The following regulations apply to the employees: _____________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will need the following licences and permits: Cost:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________

The business will have the following insurance:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________

Other legal responsibilities of the business:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________
 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 1:

1. VARIABLE COST PER ITEM

1 2 3 4
Estimated Estimated cost
Input Cost of purchase
quantity per item per item

Estimated Variable Cost per item (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (2) (see section 6.3)
Estimated total Variable Cost of the business per month (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (5) = (4) x (1)

3. TOTAL COST PER ITEM (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 2:
1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the whole business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 3:

1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 4:

1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.2 PRODUCT COSTING FORM
(for retailers and wholesalers)

FIXED COST CHARGE (%)

TOTAL FIXED COST PER MONTH (2) (see section 6.3)

= x 100 = %
TOTAL VARIABLE COST PER MONTH (3) (see section 6.6)
FIXED COST CHARGE (4)

1 2 3
Fixed Cost per item (RS) Total Cost per item (RS)
Product Variable Cost per item (RS) (1)
(5) = (1) x (4) (6) = (1) + (5)
 6.3 FIXED COST FORM

Details Cost per month (RS)

Rent (see section 2.4)

Electricity and water including waste water

Licences

Insurance

Labour (see section 4.2)

Consumables including recycling and disposal

Depreciation ( see section 6.4)

Transport

Repairs

Marketing (promotion) costs (see section 2.5)

Total Fixed Cost per month

 6.4 DEPRECIATION FORM

Equipment Estimated cost of purchase (RS) Estimated life of the equipment Depreciation per year (RS)

Total

Depreciation per month

 6.5 TOTAL VARIABLE COST PER MONTH

Quantity produced per month Variable Cost per item (RS)

Products Total Variable Cost per month (RS)
(see section 3) (see section 6.1)

Product 1:

Product 2:

Product 3:

Product 4:

Total Variable Cost per month

 6.6 MONTHLY PURCHASE FORM

Estimated number of items sold Variable Cost per item Total Variable Cost
Product
per month (RS) (see section 3) (purchase price) (RS) per month (RS)

Total Variable Cost per month

 7.1 SALES PLAN
Product Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Product 1:
Sale volume

Sales price (RS)

Sales value (RS) (1)

Product 2:
Sale volume

Sales price (RS)

Sales value (RS) (2)

Product 3:
Sale volume

Sales price (RS)

Sales value (RS) (3)

Product 4:
Sale volume

Sales price (RS)

Sales value (RS)

(4) Total sales value (RS)
(5) = (1) + (2) + (3) +(4)
 7.2 COST PLAN
Product Details Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total
Product 1: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (1)

Product 2: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (2)

Product 3: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (3)

Product 4: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (4)

Total Variable Cost of the business (RS)

(5) = (1) + (2) + (3) + (4)

Total Fixed Cost (RS) (6)
Total cost (RS) (7) = (5) + (6)
 7.3 PROFIT PLAN
(Unit: )

Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Total sales value (1)

(see section 7.1)

Total Variable Cost (2)

(see section 7.2)

Gross Profit
(3) = (1) – (2)

Total Fixed Cost (4)

Net Profit
(5) = (3) – (4)
 7.4 CASH FLOW PLAN
(Unit: )
Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1. Cash at the beginning of the

month (1)

2. Cash from cash sales

CASH IN

3. Cash from credit sales

4. Other cash in

5. Total cash in (2)

6. Purchase of goods

7. Payment of wages
CASH OUT

8. Purchase of equipment

9. Loan repayment

10. Other payments

11. Total cash out (3)

12. Cash at month end

(4) = (1) + (2) - (3)
 8. REQUIRED START-UP CAPITAL
For the period from: _______________________ to: _______________________
(Unit: )

INVESTMENTS Amount

Business premises

•• Construction or purchase of a building

•• Conversion or reconstruction of business premises

Equipment

•• Machinery and Tools

•• Furniture

WORKING CAPITAL

Stock of raw materials or finished goods

Licenses and fees

Marketing expenses

Salaries

Rent

Electricity and water

Contingency for emergency

TOTAL START-UP CAPITAL

 9.1 SOURCES OF START-UP CAPITAL
( Unit: )

Amount

Required start-up capital

Sources of start-up capital

•• Owner’s equity

•• Other sources

Total (must be the same amount as the required start-up capital)

Collateral (if applying for a loan)

 9.2 LOAN REPAYMENT SCHEDULE

Loan provider: _________________________________________________________________________________________

Total amount borrowed: _______________ Loan period: _______________ Instalment period: _______________

Interest rate: _______________ Grace period: _______________ 1st year capital cost: _______________ ( see section 7.2)

Insurance policy: __________________________________________________________________________________________

Instalment period Outstanding capital Instalment Capital repayment Interest Insurance

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Total