ENGS35 Technopreneurship 101

LECTURE 6 FINANCIAL PLAN

MARKETING PLAN

Competitor Analysis

• Information can be gathered through secondary sources and market research

• Technopreneurs can begin to understand competitors’ strengths and weaknesses
• Provides insights into how to position products or services

Criteria GCash Paymaya Coins.ph

Cashback ★★ ★★★ ★
★★ ★ ★★★
Security
(SMS only) (SMS only) (SMS/Email)
★★★ ★★ ★
Load and Bills Payment
(600 biller) (500 biller) (100 biller)
★★★ ★★ ★
Bank Transfer
(+15 pesos) (+15 pesos) (+15 pesos)
Virtual Card ★★★ ★★
Cryptocurrency ★★ ★ ★★★
Android/IOS Apps ★★★ ★★ ★
Website ★★★
Deals
★★★
(Foods/Lifestyle/Shop)
Customer Service ★★★ ★ ★★
Loan and Savings ★★★ ★★ ★

Understanding Marketing Plan

• A written statement of marketing objectives, activities, and strategies to be followed in
business plan.
• It is designed to provide answers to three basic questions:
a. Where do we want to go?
b. Where have we been?
c. How do we get there?

Components in Marketing Plan

• Combination of product, price, promotion, and distribution and other activities needed to
meet marketing objectives.

Variable Critical Decisions

Product Quality of components or materials, style, features, options,
brand name, packaging, sizes, service, availability, and
warranties.
Price Price list, quantity, discounts, allowances for quick payment,
credit terms, and payment period.
Distribution Channels Use of wholesalers and/or retailers, quantity for distribution,
length of channel, geographic coverage, inventory, and
transportation
Promotion Media budget, role of personal selling, sales promotion

Prepared by: Engr. Rhodonelle S. Duatin, ECE, ECT, 4I1HDH

Department of Computer, Electronics and Electrical Engineering
 ENGS35 Technopreneurship 101
LECTURE 6 FINANCIAL PLAN

Example:
Variable Critical Decisions
Product Intel Core i7 6th generation
15.6” display
Intel HD Graphics 5500
Fingerprint Security
Price 4GB RAM, 128GB SSD – PHP 33,000.00
4GB RAM, 256GB SSD – PHP 34,000.00
4GB RAM, 512GB SSD – PHP 35,000.00
4GB RAM, 1TB SSD – PHP 37,000.00
8GB RAM, 128GB SSD – PHP 34,000.00
8GB RAM, 256GB SSD – PHP 35,000.00
8GB RAM, 512GB SSD – PHP 37,000.00
8GB RAM, 1TB SSD – PHP 40,000.00
Distribution Channels Abenson, Octagon, PC Express, Electroworld, and other
Laptop Store nationwide
Promotion Social Media, Youtube Advertisements

FINANCIAL PLAN

Understanding Financial Plan

• It provides the entrepreneur with a complete picture of:
a. Amount of funds and source of funds
b. Allocation of funds
c. Projected financial position
• It explains how the entrepreneur intends to meet financial obligations and maintain
venture’s liquidity.

Importance of Financial Plan

• Common mistake among business owners
a. Fail to collect and analyze basic financial data
b. Run companies without any kind of financial plan
• Financial planning is essential to running a successful business and is not that difficult.

Revenue
• Total amount of income generated by the sale of goods or services related to the
company’s primary operations
• Also known as Gross Sales
• Product of price of goods and number of units sold or number of customers

Example: DX Scientific Calculator (DX570ES Plus)

Revenue 2022 2023 2024
Unit Price (PHP) 2500 2400 2300
Estimated Number of
5000 8000 12000
Units
Total Revenue (PHP) 12,500,000 19,200,000 27,600,000

Operating Expenses
• These expenses are required and cannot be avoided
• Also referred to as opex
Prepared by: Engr. Rhodonelle S. Duatin, ECE, ECT, 4I1HDH
Department of Computer, Electronics and Electrical Engineering
 ENGS35 Technopreneurship 101
LECTURE 6 FINANCIAL PLAN

• Includes materials, labor, machinery, and taxes

• Material expenses is the product of unit cost of materials and number of units
• Material cost depreciated, number of units increases.

Revenue 2022 2023 2024

Unit Price (PHP) 500 400 300
Estimated Number of
5000 8000 12000
Units
Material Expenses
2,500,000 3,200,000 3,600,000
(PHP)

• Technology strategy on choosing equipment must achieve long-term vision

• Equipment expenses is the sum of equipment cost and maintenance fees.
• Equipment performance depreciates, maintenance fees increase.

Revenue 2022 2023 2024

Equipment (PHP) 1,000,000 0 0
Maintenance (PHP) 200,000 300,000 400,000
Equipment Expenses
1,200,000 300,000 400,000
(PHP)

Annual Average Salary = Average Monthly Salary x 12

Annual Average Benefits = Average Monthly Benefits x 12
Labor Expenses = (Annual Salary + Annual Benefits) x No. of Employee

Labor 2022 2023 2024

No. of Employee 20 25 30
Annual Average Salary
120,000 132,000 144,000
(PHP)
Annual Average
Benefits & 144,000 192,000 204,000
Compensation (PHP)
Labor Expenses
5,280,000 8,100,000 10,440,000
(PHP)

• As number of employees increase, labor expenses increase.

Total Operating Expenses = Material + Equipment + Labor

Operating Expenses 2022 2023 2024

Material Expenses
2,500,000 3,200,000 3,600,000
(PHP)
Equipment Expenses
1,200,000 300,000 400,000
(PHP)
Labor Expenses (PHP) 5,280,000 8,100,000 10,440,000
Total Operating
8,980,000 11,600,000 14,440,000
Expenses (PHP)

Prepared by: Engr. Rhodonelle S. Duatin, ECE, ECT, 4I1HDH

Department of Computer, Electronics and Electrical Engineering
 ENGS35 Technopreneurship 101
LECTURE 6 FINANCIAL PLAN

Overhead Expenses
• These are the costs to run the business, including rent, insurance, and utilities.
• It should be reviewed regularly in order to increase profitability.

Overhead Expenses 2022 2023 2024

Utilities (P20,000/mo) 240,000 240,000 240,000
Rent (P50,000/mo) 600,000 600,000 600,000
Insurance 120,000 120,000 120,000
Advertisements 200,000 100,000 100,000
Total Overhead
1,160,000 1,060,000 1,060,000
Expenses (PHP)

Income
• Gross income is the total earnings a person receives before paying taxes.
• Net income is the amount that remains after paying taxes.

Gross income = Revenue – (Operating + Overhead)

Net income = Gross income – Tax due

Tax 2022 2023 2024

Revenue (PHP) 12,500,000 19,200,000 27,600,000
Operating Expenses
8,980,000 11,600,000 14,440,000
(PHP)
Overhead Expenses
1,160,000 1,060,000 1,060,000
(PHP)
Gross Income (PHP) 2,360,000 6,540,000 12,100,000
Tax Due
Net Income (PHP)

Revised Withholding Tax Table

Tax Due = 490,000 + 32%(2,360,000 – 2,000,000) = 605,200

Tax Due = 490,000 + 32%(6,540,000 – 2,000,000) = 1,942,800
Tax Due = 2,410,000 + 35%(12,100,000 – 8,000,000) = 3,845,000

Tax 2022 2023 2024

Revenue (PHP) 12,500,000 19,200,000 27,600,000
Operating Expenses
8,980,000 11,600,000 14,440,000
(PHP)

Prepared by: Engr. Rhodonelle S. Duatin, ECE, ECT, 4I1HDH

Department of Computer, Electronics and Electrical Engineering
 ENGS35 Technopreneurship 101
LECTURE 6 FINANCIAL PLAN

Overhead Expenses
1,160,000 1,060,000 1,060,000
(PHP)
Gross Income (PHP) 2,360,000 6,540,000 12,100,000
Tax Due 605,200 1,942,800 3,845,000
Net Income (PHP) 1,754,800 4,597,200 8,255,000
Cost of Investment
(3-years)
Annualized ROI

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝑅𝑂𝐼 = 𝑥100 =
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

Return of Investment
• Ratio between net income and investment

Tax 2022 2023 2024

Revenue (PHP) 12,500,000 19,200,000 27,600,000
Operating Expenses
8,980,000 11,600,000 14,440,000
(PHP)
Overhead Expenses
1,160,000 1,060,000 1,060,000
(PHP)
Gross Income (PHP) 2,360,000 6,540,000 12,100,000
Tax Due 605,200 1,942,800 3,845,000
Net Income (PHP) 1,754,800 4,597,200 8,255,000
Cost of Investment
10,000,000
(3-years)
Annualized ROI 17.548% 45.97% 82.55%

Prepared by: Engr. Rhodonelle S. Duatin, ECE, ECT, 4I1HDH

Department of Computer, Electronics and Electrical Engineering