1

I.PROJECTBACKGROUND
Investmentsininformationtechnologyhavebecomecrucialforfirmstoimprove
the quality of their products and services. Investment in information technology or
informationsystemhasincreasedoveradecade.ITspendinghasgrown166percentper
decadesincethe1970sascompanieslookedtotechnologyasthesilverbullettospur
theirbusinessgrowth(Cohan2005).InvestinginIT/ISisverycrucialforallbusinesses
ineveryindustries.Forexample,Thefoodserviceoperatorsmustadopttechnologyas
morethansimplyacostofdoingbusiness.Theymustviewitasatooltohelpthemattain
their strategic business objective. (Rubinstein 1997) At the same time, there are
numerous possible IT projects that firms could invest in, such as,ecommerce, ERP
system, new software development, etc. Due to the limited resources and time,
companiesmustwiselychoosetoinvestintheprojectsthatmatchtheirbusinessand
economic goals. One of the feasibility factors that need to be assessed is economic
feasibility. Management can assess economic feasibility by doing the costbenefit
analysis,aswellasusingfinancialtechniques,suchastimevalueofmoneyorbreakeven
pointanalysis.Inadditiontotheeconomicfeasibilityanalysis,thispaperwillalsolookat
some other feasibility factors, such as technical, operational, scheduling, legal and
contractual,andpoliticalfeasibility.Partofinitiatingasoftwaredevelopmentprojectisto
doarealitychecktodeterminewhetherornottheprojectmakessense.Becauseofthe
successrateonITprojectsisnt100%,theimplicationisthatsomeprojectsshouldendat

2
thisstage,longbeforealargeinvestmenthasbeenmade(andthenlost)attemptingto
buildthem.Manyprojectstendtoskipthiseffort,eitherbecausetheyaretoorushedfor
time or because competition within the market segment places demands in the
organizationtocreatetheapplication.Nevertheless,evenifyouknowthatyouaregoing
todotheprojectitisoftenstillworthwhileattemptingtojustifyit.Iftheprojectmakes
sensethenthereisanammunitionthatthereisaneedtoarguethecasewhenprojectis
calledintoquestion.Iftheprojectdoesnotmakesense,i.e.itlookslikeitisgoingtofail,
thenitisaverygoodindicationthatthereshouldbeanalternatives.Projectjustification
willeitherbeoneofthefirststepsoftheactualprojectitself,oritwillbeasignificant
partofthesystemportfoliomanagementefforts.Itisimportanttohavethisstudyto
drivesthedevelopmentoftheprojectproposal.
eNROLLManagementSystemisasoftwaredevelopmentprojectthatwillcater
computerizedenrolmentsysteminschools,governmentagencies,medicareprovider,and
eveninstitutionalevents,seminarsandconferences.Insteadofmanualcollectionofdata
andfiling,EMSenablestostoreinformationinlocaldrivesandwithcloudcomputing
thatwillhelptoeasilyrecoveredandarchivedenrolledfiles.
Raven Software Solutions is a single proprietorship company founded and
entirely owned by Wilbert Canchela Venzon. The company will currently sell one
softwareproductthatwillcommandimpressivemarketshare.Theownerisinterestedin
taking the company to the next level achieving Seven million Philippine peso (Php
7,000,000.00) in sales by 2020. The companys objectives are ambitious yet
achievable.Salesincreasesof Five million two hundred thousand Philippine peso (Php

5,200,000.00) in 2017, and will continue to increase for the next year.Withtheirflagship
producteNROLLManagementSystem.Thesegoalswillbemaintainedbyadheringto
threekeystosuccess,marketpower,rightmanagementteam,andcustomersatisfaction.
Thebusinesswillbesetupinarentedpremiselocatedin#1369Tabacuhan,Sta.Rita
OlongapoCity,havingacoveredareaofapproximately50squaremeter.Thetotalcostof
theproposedprojectisestimatedat Twomillionninehundredfortytwothousandfive
andfiftythreehundredthPhilippinePeso(Php2,942,005.53.00)withOnemillioneight
hundredfiftyseventhousandPhilippinePeso(Php1,857,000.00)investmentsfromthe
owner,andOnemillioneightyfivethousandfiveandfiftythreehundredthPhilippine
Peso(Php1,085,005.53)borrowedfromloans.

Figure1.ProposedBusinessLocationMap

Figure2.ProposedOfficeSpaceLayout
TheMarket
Raven Software Solutions will be targeting four customer segments: home
offices,smalloffices,professionals,andacademe. Thesemarketsaregrowingat2%,
5%,8%,and11%respectively. Themajortrendinthemarketistowardalocalsale
withinOlongapoCityarea.
TheProduct
RavenSoftwareSolutionscurrentlyhasoneproduct,theeNROLLManagement
System.ItisastandaloneandamobileapplicationforWindows.Itisthebestproduct
availableforcreatingataskandtheonlyproductfordaytodaymanagement.Theproject
mainlyfocusesonpotentialinvestmentopportunityintheareaofsoftwaredevelopment
andmorepreciselydatabasedevelopmentandmultimediacreation.

Figure3.eNROLLManagementSystemSoftwareInterface
TheStrategy
Ravens Software Solutions will follow four concise strategies to achieve the
desiredgrowth.Theywillbuildcustomizedversionsoftheirstandardproducts,providing
more value for specific groups of customers.They will develop a strong marketing
infrastructure.Thiswillbekeyforthemtogettheirproductsoutonthemarket.Raven
Software Solutions will remain focused on a small to medium size companies, the
segment that has been largely ignored by the competition. Lastly, Raven Software
Solutionswillfocusonfollowuptechnology,whichismoreappropriateforthemasses,
insteadofleadingtechnology,whichisbestsuitedforexperts.
TheManagementTeam
Theownerisaseasonedmanagerwhoiscapableofexecutingonhisambitious
strategies.Hehas15yearsofsalesandmarketingexperiencefromadvertising,insurance,

6
distributions, software development and web design.In the year 2016 he will start
establishingRavenSoftwareSolutionsasasoftwaredistributionorganization.Hewillbe
assistedbyRobertCharlesRankinwhowillalsobeneededtogrowthecompany.His
more than 20 years of experience as a software developer manager at CocaCola
PhilippinesLagunaandBoeinginSeattle,Washingtonisagreatfactorinthesuccessof
thebusiness.Theproposedprojectisbasedupontwodivisions,eachconsistingofa
softwarearchitect,ananalystanddevelopersworkingonan8hourshiftandgenerating
around 3, 840 value hours for customers with an initial capacity utilization of 50%
efficientlevelduringthefirstyear.Overall,thebusinesswillprovidedirectemployment
opportunitytotwelve(12)individualsincludingtheownermanager.
Table1.ProposedDesignation&NumberofEmployees
Description

No.OfEmployees

Manager

SoftwareArchitect

Analyst

Developers

Accountant

Receptionist/Secretary

Total

12

II.

PROJECTCOMPONENTS

Theprojectmainlyfocusesonpotentialinvestmentopportunityintheareaofsoftware
developmentandmorepreciselydatabase,webandmobileapplications.However,other
products and services related to various sectors such as finance, insurance, human
resourceetc.,canalsobeofferedundertheprojectwithoutanyadditionalequipment.
2.1ProcessFlowofServices
The process flow of software development project services mainly entails the
followingsequenceofactivities:

Figure4.ProcessFlowofServices
2.1.1DesignofProgrambySoftwareArchitect

8
A simplistic view of the role is that architects create architectures, and their
responsibilities encompass all that is involved in doing so. This would include
articulatingthearchitecturalvision,conceptualizingandexperimentingwithalternative
architectural approaches, creating models and component and interface specification
documents,andvalidatingthearchitectureagainstrequirementsandassumptions.Itisthe
mostcrucialphaseinthedevelopmentlifecycle.Systemdesignnormallyprecedesintwo
stagesnamelypreliminaryorgeneraldesignandstructureordetaileddesign.
(a). Preliminary/General design In the preliminary or general design, the
featuresofthesystemarespecified.Thecostofimplementingthesefeaturesandthe
benefitstobederivedareestimated.Iftheprojectisstillconsideredtobefeasible,it
movestothedetaileddesignstage.
(b.)Structure/Detailed designInthedetaileddesignstage,computeroriented
workbeginsinearnest.Atthisstage,thedesignofthesystembecomesmorestructured.
Structuredesignisablueprintofacomputersystemsolutiontoagivenproblemhaving
the same components and interrelationship among same components as the original
problem.Input,outputandprocessingspecificationsaredrawnupindetail.Inthedesign
stage,theprogramminglanguageandtheplatforminwhichthesystemwillrunarealso
decided.
2.1.2DesignDemonstrationtoDevelopers

9
Afterconceptualizing thearchitectureofthedesign,its modelandcomponent
specificationstheideaswillbedemonstratedtothedevelopersforfurtherimplementation
ofthesystemanalysisanddesignlifecycle.

2.1.3Developerswritetheprogram
Aprogrammer,computerprogrammer,developer,coderorsoftwareengineerwill
write,test,debug,andmaintainthedetailedinstructions,calledcomputerprogramsthat
computersmustfollowtoperformtheirfunctions.Programmersalsoconceive,design,
andtestlogicalstructuresforsolvingproblemsbycomputer
2.1.4Testandrunofprogrambyanalyst
Beforeactuallyimplementingthesystemintooperations,atestrunofthesystem
isdoneremovingallthebugs,ifany.Itisanimportantphaseofasuccessfulsystem.
Aftercodifyingthewholeprogramsofthesystem,atestplanshouldbedevelopedand
runonagivensetoftestdata.Theoutputofthetestrunshouldmatchtheexpected
results.Using the test data following test run are carried out:

Unit Test: When the programs have been coded and compiled and brought to
working conditions, they must be individually tested with the prepared test data.
Any undesirable happening must be noted and debugged (error corrections).

10

System Test: After carrying out the unit test for each of the programs of the
system and when errors are removed, then system test is done. At this stage the
test is done on actual data. The complete system is executed on the actual data. At
each stage of the execution, the results or output of the system is analyzed. During
the result analysis, it may be found that the outputs are not matching the expected
out of the system. In such case, the errors in the particular programs are identified
and are fixed and further tested for the expected output. When it is ensured that
the system is running error-free, the users are called with their own actual data so
that the system could be shown running as per their requirements.

2.1.5Programhandlingoverandinstallation
Afterhavingtheuseracceptanceofthesystemdeveloped,theimplementation
phasebegins.Implementationisthestageofaprojectduringwhichtheoryisturnedinto
practice.Duringthisphase,alltheprogramsofthesystemareloadedintotheusers
computer.Afterloadingthesystem,trainingoftheusersstarts.Toeliminateerrorsinthe
systemduringitsworkinglifeandtotunethesystemtoanyvariationsinitsworking
environment,maintenanceisdone.
2.1.6Supportservicestocustomer
Customer service and support (CSS) is the part of a companys customer
relationship management (CRM) department that interacts with a customer for their
immediatebenefit,includingcomponentssuchasthecontactcenter,helpdeskandthe
callmanagementsystem.

11
CRITICALFACTORS
Followingarethefactorscriticalforthesuccessofthisbusinessventure;

Backgroundknowledgeandtechnicalqualificationoftheentrepreneurandkey
staff.

Thoroughunderstandingonnationalregulationsrelatedtopiracyandcopyright
protection.

Hiringandretentionofcompetentandtrainedmanpower.

Higherreturnoninvestmentandasteadygrowthofbusinessiscloselyassociated
withregulartrainingandcapacitybuildingoftheentrepreneurandkeystaff.

Stringentsupervisionofthedevelopmentprocessateverylevel.

Formulationandimplementationofcustomerfollowupandfeedbacksystems.

POTENTIALTARGETMARKET
Inlocalmarketthereisgreattrendtowardsautomationofbusinessprocessesandalotof
small,mediumandlargeorganizationsareconvertingtheirprocessesfrompaperpencil
methodologytoITbasedprocesses.
Table2.ListofTargetMarket

12

ORGANIZATION

ADDRESS

CONTACT

1. AMA Computer

1670 Rizal Ave. Olongapo City

NUMBER
(047) 224 1556

College
2. AMA Computer

3rd Floor KDIC Bldg. 25 Anonas St.

(047)223 2450

Learning Center of

Olongapo City

Olongapo City
3. Asian Institute of

AICS Olongapo 2nd Floor BPI Rotonda

(047)222 9895

Computer Studies
4. Christ the King

Bldg. Rizal Ave. Olongapo City

Clark Street, Sta. Rita Olongapo City

(047)223 7564

Catholic School
5. College of Subic

Bldg. 737, Labitan St. SBFZ

(047)252 3555

Bay
6. Columban College-

#1 Asinan Olongapo City

(047)222 2239

Asinan
7. Columban College

Rizal Extension, Bo. Barreto, Olongapo

(047)222 9360

Barreto
8. First School of

City
Bldg Q7931 A&B Manila Avenue,

(047)252 1509

SBFZ
9. Gordon College

Subic Bay Freeport Zone, Zambales

Gordon College, Old Hospital Road,

(047)224 2088

10. Kalalake NHS

Olongapo City,
14th Street, New Kalalake, Olongapo,

(047) 222 4186

11. Little Angel Study

Zambales
#23 3rd Street, West Tapinac, Olongapo

(047) 224 5491

Montessori Subic

Center
12. Lyceum of Subic

City, Philippines, 3 W 3rd St, Olongapo,

2200 Zambales
Central Business District, Rizal

(047) 252 5940

13

Bay, Inc.

highway, sbma, Lot 73 Rizal Hwy,

Subic Bay Freeport Zone, 2200 Subic
Bay Freeport Zone
No. 63, Fendler Street, East Tapinac,

(047) 223 7875

Olongapo, 2200 Zambales

Subic Bay Freeport Zone

(047) 252 3808

College
15. New Cabalan NHS

Purok 3, New Cabalan, Olongapo City,

(047) 224 3974

16. Olongapo Wesley

Zambales
#890 Rizal Avenue Extension,

(047) 222 2701

13. Metro Subic

Colleges, Inc.
14. Mondrian Aura

School

Olongapo, 2200 Subic Bay Freeport

17. Regional Science

High School
18. Saint Anne Academy

Zone
East Kalayaan, Subic Bay Freeport

(047) 252 6046

Zone, Olongapo, Zambales

Gomez St, Olongapo, Zambales

(047) 223 8607

Itisassumedthat9outof18prospectclientwillpurchasetheeNROLL
ManagementSystemSoftware.

COMPETITIVECOMPARISON

14
Subic Software Solutions, Inc. : Located in Office Space No. 1B and 2E, Subic
TechnoCenter,Building,ArgonautHighway,TechnoPark,BotonArea,OlongapoCity,
2200,Zambales.Itisanewlyestablished
Japanesecompanyprovidinginformation
technology activities in connection with
theanalysis,designandprogrammingof
systems, which involve production,
supplyanddocumentationofinformation
technology and CAD/CAM related
services.
Figure5:SubicSoftwareSolutionsLocationMap

EasyposSolutions,Inc.: Located inUnit409,

TheVenueBuildingLotC5CommercialArea
SubicBayFreeportZone. Asoftwaresolution
company specialize in the provision of POS
(Point of Sale) computer systems for the bar,
restaurant,resortandhotelindustries.
Figure6:EasyPOSLocationMap

III. PROJECTTIMETABLE

15

16

IV. PROJECTBENEFITS
Softwaredevelopmentisanessentialaspectwhichhelpsanybusinesstoworkfinely.
Itallowsyoutoautomatethebusinessandincreaseproductivitywithlesseffort.The
customizedsoftwarepackagesaremadetoflourishthebusinessandhelpfulfillmostof
thecompanysrequirements.Belowarethebenefitsinthefieldofsoftwaredevelopment
1. Cost reduction The technology offers cost economy by reducing
resource requirements thus, improving productivity and decreasing licensing fees.
Whenyouhelpoutinthedesignofthesoftware,itisthendevelopedparticularlyfor
the growth of the business. This reduces the training cost and also improves the
productivityofthesoftware.Whenyoubuyaprewrittensoftwareapplication,you
onlyhavealicensetousethesoftware.Thedevelopmentservicesteamoffersyou
softwareapplicationsthatyouown.Sincetheproductisabsolutelyyourown,you
maychangethecostoftheproductanditsupgradation.
2. LowtrainingcostsItmaybeexpensivetotrainthenewemployees.The
newemployeesmayneedatleastaweektrainingbeforetheyactuallystartworking.
If the business is not very big youmay not have the latest technology forevery
individualsasitwillcostveryhigh.Anoutsourcingfirmcancopeupwiththelatest
technologiesforeveryindividualsinceitisapartoftheirbusiness.

17
3. Increased flexibility As the business grows,the potential customers
usuallydemandsfordifferentchangesintheproducts.Forthis,itwillneedtosearch
for different products and become dependent on them. Custom software solutions
provide the increased flexibility possible since the product is made as per
requirementsandcanbechangedaccordingtothebusinessrequirements.
4. Competitiveadvantage Whenthebusinessflourishesmoreandmore
thecompetitionamongthecompetitorsinbusinessalsoincreases.Ifthecompanyis
differentfromtheothers,therearechancesthatitwillhavemorecustomersandwill
earnmoremoney.Itcanmakeuseofcustomsoftwaretopromotethebusinessand
riseabovethecompetitionlevel.
5. IncreasedcompanyvalueItwillimproveperformanceinthebusiness
toearnmoreprofits.Itwillworkefficientlyandkeepatrackoftheproductsthatthe
companysell.Itwillhelprunthebusinessatitsmaximum level.Ifthecompany
makesauniquewelldesignedsoftwareitwilldifferentiatefromthecompetitorsand
providegoodresultsforthebusiness.
6. Employment generation The potential contribution of information
technologytoemploymentgenerationisbothdirectandindirect.Directly,thegrowth
ofthecomputerhardwareandsoftwareindustriescangeneratenewjobopportunities.
Indirectly,theadoptionofcomputertechnologybyotherindustriesexpandstherange
ofservicestheycanprovideandstipulatesmorerapidgrowthintheITsector.Itis
bothalaborcreatingandalaborsavingtechnology.

18

V. PROJECTCOST
Adetailedfinancialmodelhasbeendevelopingtoanalyzethecommercialviabilityof
the project. Various costs and revenue related assumptions along with results of the
analysisareoutlinedinthissection.
5.1ProjectFinancing
Thefollowingtabledescribethefinancingresourcesoftheproposedbusiness.
Table3.ProjectFinancing

Descriptions
OwnersEquity
BankLoan
LongTermBorrowedLoanInterest
TenureofLoan(Years)

Details
P1,857,000.00
P1,085,005.53
9%
5

5.2ProjectCost
Thefollowingfixedandworkingcapitalrequirementshavebeenidentifiedfor
operationsoftheproposedbusiness.

19

Table4.ProjectedProjectCost

5.3OfficeEquipmentRequirement
Thefollowingtablesprovideslistofofficeequipmentrequiredforsettingupa
proposedsoftwaredevelopmentbusiness.

20

Table5.OfficeEquipment

Description
Laptop(WindowBased)

Quantity UnitCost(Php)
4
28,490.00

TotalCost(Php)
113,960

DellInspiron5455AMDA87410,
4GB,1TB,14",Win8.1,2GB
VRAM
Laptop(iOSBased)

102,990.00

102,990

74,490.00

74,490.00

8,490.00

8,490.00

23,699.00

118,495.00

1
1

2,899.00
6,000.00

2,899.00
6,000.00
427,324.00

MBP15.42.0GHzQuadcoreIntel
Corei7,256GB
ComputerServer(Refurbished)
DellXPS8700IntelI74770,16GB,
2TB+32GB,Win8.1,24
MultipurposeMachine
(Printing/Scanning/CopyingFax)
SAMSUNGM2070FW4in1Mono
LaserWirelessPrinter
DesktopPCs
WorxAstonDesktopIcafe
Telephone/DSL
Biometrics
Total

5.4FurnitureandFixtureRequirements

21
Thedetailsofrequiredfurnitureandfixturefortheproposedprojectareprovided
inthefollowingtable:
Table6.FurnitureandFixtureRequired

Description

Quantity

UnitCost(Php)

TotalCost(Php)

ManagersOffice

50,000.00

50,000.00

FixturesIncluding

150,000.00

150,000.00

45,000.00

45,000.00

60,500.00

121,000.00

Carpeting

1,500.00

7,200.00

DevelopersWork

39,600.00

277,200.00

20,000.00

20,000.00

120,000.00

120,000.00

ReceptionFurniture

80,000.00

80,000.00

AirConditioner(1.5

50,000.00

50,000.00

Renovation
Presentation
Equipment
Analyst&
ArchitectsOffice
Sets

Stations
LightingandAllied
Equipment
ConferenceRoom
FurnitureSet

22

tonSplit)
ElectricFans

1,000.00

2,000.00

Total

922,400.00

5.5OtherAssets
ItisassumedthatthereisacalculatedamountofP85,000.00asotherassets.

5.6EmployeesSalary
Table7.EmployeesSalary

Designation

No.OfEmployees

Salaryper

TotalSalary

EmployeePer

Manager

Month(Php)
40,000.00

40,000.00

23

SoftwareArchitect
Analyst
Developers
Accountant
Receptionist/Secretary
Total

1
1
7
1
1
12

25,000.00
20,000.00
12,000.00
15,000.00
9,000.00

25,000.00
20,000.00
84,000.00
15,000.00
9,000.00
193,000.00

TheManagerwillfocusonmarketing,monitoringproductsalongwithoverall
managementoftheunit.Whereas,businessoperationsandotherresponsibilitieswillbe
managedbyrespectiveprojectstaff.Salariesofallemployeesareestimatedtoincreaseat
10%annually.

5.7EmployerContribution
Thefollowingtableprovidesinformationontheemployerspremium
contributiononthebenefitsmandatedbythegovernment.
Table8.EmployerContribution

24

Mandatedgovernmentbenefitsisassumedtoincreaseaccordingtoemployees
salarybracketestimatedat10%additionannually.
5.813thMonthPay
Thefollowingtableprovidesinformationontheemployees13thmonthpayin
additiontoitsbenefits.

th
Table9.13
MonthPay

Designation
Manager
Software Architect

No. of
Emp.
1
1

13th Month Pay

40,000.00
25,000.00

25

Analyst
Developers
Accountant
Receptionist/Secretary
TOTAL

1
7
1
1

20,000.00
84,000.00
15,000.00
9,000.00
PHP 193,000.00

5.9RevenueGenerationinFirstYear
Followingtableprovideassumptionforrevenuesandgenerationsoftheproposed
projectduringfirstyearofoperation:
Table10.RevenueGenerationinFirstYear

Product

Unit

Description

ValueHours

Hour

SalesPrice

FirstYear

FirstYear

(Php/Unit)

SalesQuantity

SalesRevenue

2,500

(Hours)
1,920

(Php)
4,800,000.00

(50%
Efficiency)
TotalSales

4,800,000.00

Revenue

VI.FEASIBILITYASSESSMENT
6.1IncomeStatement

26
Afinancialstatementthatmeasuresacompanysfinancialperformanceovera
specificaccountingperiod.Financialperformanceisassessedbygivingasummaryof
how the business incurs its revenues and expenses through both operating and non
operatingactivities.Italsoshowsthenetprofitorlossincurredoveraspecificaccounting
period, typically over a fiscal quarter or year. Also known as the profit and loss
statementorstatementofrevenueandexpense.
ThefollowingtableshowsprojectedIncomeStatementoftheproposedbusiness.
Table11.IncomeStatement

6.2CashFlowStatement

27
Cashflowisthenetamountofcashandcashequivalentsmovingintoandoutof
abusiness.Positivecashflowindicatesthatacompanysliquidassetsareincreasing,
enablingittosettledebts,reinvestinitsbusiness,returnmoneytoshareholders,pay
expensesandprovideabufferagainstfuturefinancialchallenges.Negativecashflow
indicatesthatacompanysliquidassetsaredecreasing.Netcashflowisdistinguished
fromnetincome,whichincludesaccountsreceivableandotheritemsforwhichpayment
hasnotactuallybeenreceived.Cashflowisusedtoassessthequalityofacompanys
incomethatishowliquiditis,whichcanindicatewhetherthecompanyispositionedto
remainsolvent.
ThefollowingtableshowsprojectedCashFlowStatementoftheproposedbusiness.
Table12.ProjectedCashFlowStatement

28

6.3BalanceSheet

A financial statement that summarizes a company's assets, liabilities and

shareholders' equity at a specific point in time. These three balance sheet segments give
investors an idea as to what the company owns and owes, as well as the amount invested
by shareholders.
The balance sheet adheres to the following formula: Assets = Liabilities +
Shareholders' Equity.
The following table shows projected Cash Flow Statement of the proposed
business.
Table13.ProjectedBalanceSheet

29
6.4ReturnonAssets
ReturnonAssetsorROAisanindicatorofhowprofitableacompanyisrelative
toitstotalassets.ROAgivesanideaastohowefficientmanagementisatusingits
assetstogenerateearnings.Calculatedbydividingacompanysannualearningbyits
totalassets,ROAisdisplayedaspercentage.Sometimethisisreferredtoasreturnon
investment.Theformulaforreturnonassetsis:
ROA

The following table shows Return on Assets of the proposed business.

Table 14. Return on Assets

30
Figure below indicates profitability rate by industry within technology sector.
RavenSoftwareSolutionsisaboveaveragefromitsindustryrate.

Figure7:ReturnonAssetsStatistics
Source:

Return

on

Assets

Statistics.

(n.d.).

Retrieved

January

3,

2016

from

http://csimarket.com/Industry/industry_ManagementEffectiveness.php?s=1000

6.5CurrentRatio
Thecurrentratioisaliquidityratiothatmeasuresacompanysliabilitytopay
shorttermandlongtermobligations.Togaugethisability,thecurrentratioconsidersthe
total assets of a company (both liquid and illiquid) relative to that companys total
liabilities.Theformulaforcalculatingacompanyscurrentratio,thenis:

31
CurrentRatio=CurrentAssets/CurrentLiabilities
The current ratio is called current because, unlike some other liquidity ratios, it
incorporates all current assets and liabilities. The current ratio is also known as the
workingcapitalratio.
The following table shows Current Ratio of the proposed business.
Table 15. Current Ratio

6.6 Debt Ratio

A financial ratio that measures the extent of a companys or consumers leverage.
The debt ratio is defines as the ratio of total long-term and short-term debt to total
assets, expressed as a decimal or percentage. It can be interpreted as the proportion of
a companys assets that are financed by debt. Also referred to as debt-to-assets ratio.

The following table shows Debt Ratio of the proposed business.

32

Table 16. Debt Ratio

6.7ReturnonInvestment
Aperformancemeasureusedtoevaluatetheefficiencyofaninvestmentorto
comparetheefficiencyofanumberofdifferentinvestments.ROImeasurestheamount
ofreturnonaninvestmentrelativetotheinvestmentcost.TocalculateROI,thebenefit
(orreturn)ofaninvestmentisdividedbythecostoftheinvestment,andtheresultis
expressedasapercentageoraratio.

33
Thereturnoninvestmentformula:

In the above formula, Gain from investment refers to the proceeds obtained
from the sale of the investment of interest. Because ROI is measured as percentage, it can
be easily compared with return s from other investments, allowing one to measure a
variety of types of investments against one another.
The following table shows Return on Investment of the proposed business.
Table 17. Return on Investment

Figure below indicates profitability rate by industry within technology sector.

RavenSoftwareSolutionsisaboveaveragefromitsindustryrate.

34

Figure8.ReturnonInvestmentStatistics

Source:

Return

on

Investment.

(n.d.).

Retrieved

January

http://csimarket.com/Industry/industry_ManagementEffectiveness.php?s=1000

3,

2016

from

35

LISTOFTABLES

Table 1: Proposed Designation & Number of Employees

Description
Manager
Software Architect
Analyst
Developers
Accountant
Receptionist/Secretary
Total

No. Of Employees
1
1
1
7
1
1
12

Table 2. List of Target Market

ORGANIZATION

ADDRESS

CONTACT

1. AMA Computer

1670 Rizal Ave. Olongapo City

NUMBER
(047) 224 1556

College
2. AMA Computer

3rd Floor KDIC Bldg. 25 Anonas St.

(047)223 2450

Learning Center of

Olongapo City

Olongapo City
3. Asian Institute of

AICS Olongapo 2nd Floor BPI Rotonda

(047)222 9895

Computer Studies
4. Christ the King

Bldg. Rizal Ave. Olongapo City

Clark Street, Sta. Rita Olongapo City

(047)223 7564

Catholic School

36

5. College of Subic

Bldg. 737, Labitan St. SBFZ

(047)252 3555

Bay
6. Columban College-

#1 Asinan Olongapo City

(047)222 2239

Asinan
7. Columban College

Rizal Extension, Bo. Barreto, Olongapo

(047)222 9360

City
Bldg Q7931 A&B Manila Avenue,

(047)252 1509

Montessori Subic

Barreto
8. First School of
SBFZ
9. Gordon College

Subcom Area, Subic Bay Freeport

Zone, Zambales
Gordon College, Old Hospital Road,

(047)224 2088

Olongapo City, Philippines, E 16th St,

10. Kalalake NHS

Olongapo, Zambales
14th Street, New Kalalake, Olongapo,

(047) 222 4186

11. Little Angel Study

Zambales
#23 3rd Street, West Tapinac, Olongapo

(047) 224 5491

Center
12. Lyceum of Subic
Bay, Inc.

City, Philippines, 3 W 3rd St, Olongapo,

2200 Zambales
Central Business District, Rizal

(047) 252 5940

highway, sbma, Lot 73 Rizal Hwy,

Subic Bay Freeport Zone, 2200 Subic

13. Metro Subic

Colleges, Inc.
14. Mondrian Aura
College
15. New Cabalan NHS

Bay Freeport Zone

No. 63, Fendler Street, East Tapinac,

(047) 223 7875

Olongapo, 2200 Zambales

Subic Bay Freeport Zone

(047) 252 3808

Purok 3, New Cabalan, Olongapo City,

(047) 224 3974

Zambales

37

16. Olongapo Wesley

School
17. Regional Science
High School
18. Saint Anne Academy

#890 Rizal Avenue Extension,

(047) 222 2701

Olongapo, 2200 Subic Bay Freeport

Zone
East Kalayaan, Subic Bay Freeport

(047) 252 6046

Zone, Olongapo, Zambales

Gomez St, Olongapo, Zambales

(047) 223 8607

Table 3. Project Financing

Descriptions
Owners Equity
Bank Loan
Long Term Borrowed Loan Interest
Tenure of Loan (Years)

Details
P 2,000,000.00
P 1,085,005.53
9%
5

38
Table4.ProjectedProjectCost

Table 5. Office Equipment

Description
Laptop (Window Based)

Quantity Unit Cost (Php)

4
28,490.00

Total Cost (Php)

113,960

Dell Inspiron 5455 AMD A8-7410,

4GB, 1TB, 14", Win 8.1, 2GB
VRAM
Laptop (iOS Based)
MBP 15.4 2.0GHz Quad-core Intel
Core i7, 256GB

102,990.00

102,990

39

Computer Server (Refurbished)

74,490.00

74,490.00

8,490.00

8,490.00

23,699.00

118,495.00

1
1

2,899.00
6,000.00

2,899.00
6,000.00
427,324.00

Dell XPS 8700Intel I7-4770, 16GB,

2TB + 32GB , Win 8.1, 24
Multipurpose Machine
(Printing/Scanning/Copying Fax)
SAMSUNG M2070FW 4 in 1 Mono
Laser Wireless Printer
Desktop PCs
Worx Aston Desktop Icafe
Telephone/DSL
Biometrics
Total

Table 6. Furniture and Fixture Required

Description

QTY

Unit Cost (Php)

Total Cost (Php)

Managers Office

50,000.00

50,000.00

Fixtures Including Renovation

150,000.00

150,000.00

Presentation Equipment

45,000.00

45,000.00

Analyst & Architects Office Sets

60,500.00

121,000.00

Carpeting

1,500.00

7,200.00

Developers Work Stations

39,600.00

277,200.00

Lighting and Allied Equipment

20,000.00

20,000.00

40

Conference Room Furniture Set

120,000.00

120,000.00

Reception Furniture

80,000.00

80,000.00

Air Conditioner (1.5 ton Split)

50,000.00

50,000.00

Electric Fans

1,000.00

2,000.00

Total

922,400.00

Table 7. Employees Salary

Designation

No. Of Employees

Salary per

Total Salary

Employee Per
Manager
Software Architect
Analyst
Developers
Accountant
Receptionist/Secretary
Total

1
1
1
7
1
1
12

Month (Php)
40,000.00
25,000.00
20,000.00
12,000.00
15,000.00
9,000.00

Table 8. Employer Contribution

40,000.00
25,000.00
20,000.00
84,000.00
15,000.00
9,000.00
193,000.00

41

Table 9. 13th Month Pay

No. of
Emp.
1
1
1
7
1
1

Designation
Manager
Software Architect
Analyst
Developers
Accountant
Receptionist/Secretary
TOTAL

13th Month Pay

40,000.00
25,000.00
20,000.00
84,000.00
15,000.00
9,000.00
PHP 193,000.00

Table 10. Revenue Generation in First Year

Product

Unit

Description
Value Hours

Hour

Sales Price

First Year

First Year Sales

(Php/Unit)

Sales Quantity

Revenue (Php)

2,500

(Hours)
1,920

4,800,000.00

42

(50%
Efficiency)
Total Sales
Revenue

4,800,000.00

43
Table11.IncomeStatement

44
Table12.ProjectedCashFlowStatement

45
Table13.ProjectedBalanceSheet

46
Table14.ReturnonAssets

Table15.CurrentRatio

47
Table16.DebtRatio

Table17.ReturnonInvestment

48

LISTOFFIGURES

Figure 1. Proposed Business Location Map

49

Figure 2. Proposed Office space lay-out

Figure 3. e-NROLL Management System Software Interface

Figure 4. Process Flow of Services

50

Figure 5 & Figure 6. Competitors Business Location Map

Figure 7. Return on Assets Statistics

51

Figure 8. Return on Investment Statistics

52

BIBLIOGRAPHY
CustomerService&Support(n.d.)RetrievedDecember30,2015,from
http://searchcrm.techtarget.com/definition/customerserviceandsupport.
GrahamC.,&David,C.(n.d.).BusinessInformationSystemAnalysis,Designand
Practice(5thEdition).PrenticeHall.
Region3School.(n.d.).RetrivedDecember30,2015,from
http://www.deped.gov.ph/k12/shs?
f[0]=fieldregionprovince:1233&f[1]=field_region_province:1704
Industryrate.(n.d.).RetrievedDecember30,2015,from
http://www.payscale.com/research/PH/Industry=Software_Development/Salary
NetPresentValueFormula.(n.d.).RetrievedJanuary1,2016,from
http://www.financeformulas.net/Net_Present_Value.html
InternalRateReturn.(n.d.)RetrivedJanuary1,2016from
https://www.mathsisfun.com/money/internalratereturn.html
ReturnofAssetsCalculator.(n.d.).RetrievedfromJanuary2,2016,from
http://www.ccdconsultants.com/calculators/financialratios/returnonassetscalculator
andinterpretation

53

Wilbert Canchela Venzon

1372 Tabacuhan Sta. Rita
Olongapo City 2200 PHILIPPINES
Mobile # +63 998 560 2753
Tel. # +63 47-222 4561
Email: wacksvenzon@icloud.com
Objective: To procure a position where I can show my skills and potential for the benefit
of the company and career growth.
SKILLS: Knowledgeable in Computer Software & Hardware Installation, Data
Communication & Networking, Data Administration, Network Security, PC Assembly &
Troubleshooting, HTML 5.0, MySQL, Word press, Joomla, Visual Basic, PHP, Android,
AutoCAD, and Ruby on Rails and Virtual Machine applications.
Sales & Marketing experiences from Advertising firm and Insurance.

EXPERIENCES:

COLLEGE INSTRUCTOR
Gordon College
Old Hospital Rd. Olongapo City
June 2015 Present
Teaching in Computer programming, Database Management, Computer Software &
Hardware Installation, Data Communication & Networking, Data Administration,
Network Security, PC Assembly & Troubleshooting, HTML, Android applications,
AutoCAD, and Business related subjects.
OPERATIONS MANAGER
Rowena Minoo Samurai, Inc.
5F RM Centrepoint Bldg. Rizal Avenue, cor.

54

Magsaysay Drive, East Tapinac, Olongapo City 2200

September 27, 2014 December 10, 2014

Manages and directs the daily activities of the leasing operations department in
accordance with organization policies and standards.
Responsible for all leasing functions, which may include reviewing and negotiating
lease transactions and agreements.
Oversees completion of all necessary paperwork and ensures proper customer service.
Responsible for the productivity and budgetary performance of the leasing operations
department.
Develops and implements policies and procedures to improve efficiency and
profitability of the department.

IT INSTRUCTOR
CAPSTONE INSTITUTE OF BUSINESS AND ARTS
7TH St. Magsaysay Drive, Olongapo City 2200
October 2013 March 2014
Teaching Computer Software & Hardware Installation, Data Communication &
Networking, Data Administration, Network Security, PC Assembly & Troubleshooting,
HTML 5.0, MySQL, Word press, Joomla, Visual Basic, PHP, Android, AutoCAD, and
Ruby on Rails and Virtual Machine applications.
ACCOUNT EXECUTIVE
USP Advertising LLC - Full frame Photography Magazine
Churchill Office Tower Office 1209
Business Bay Dubai, UAE
January 6, 2013-May 15, 2013

Meeting and liaising with clients to discuss and identify their advertising
requirements
Working with agency colleagues to devise an advertising campaign that meets the
client's brief and budget
Presenting, alongside agency colleagues (particularly the account manager), the
campaign ideas and budget to the client
Working with the account manager to brief media, creative and research staff, and
assisting with the formulation of marketing strategies
Liaising with, and acting as the link between, the client and advertising agency by
maintaining regular contact with both, ensuring that communication flows
effectively
Negotiating with clients and agency staff about the details of campaigns
Presenting creative work to clients for approval or modification
Handling budgets, managing campaign costs and invoicing clients
Writing client reports

55

Monitoring the effectiveness of campaigns

NETWORK AND SYSTEM ADMINISTRATOR

PREDA Foundation, Inc.
Upper Kalaklan, Olongapo City 2200, Philippines
May 29 - December 18, 2012

Diagnose hardware and software problems, and replace defective components.

Perform data backups and disaster recovery operations.
Maintain and administer computer networks and related computing environments,
including computer hardware, systems software, applications software, and all
configurations.
Plan, coordinate, and implement network security measures in order to protect
data, software, and hardware.
Operate master consoles in order to monitor the performance of computer systems
and networks, and to coordinate computer network access and use.
Perform routine network start-up and shutdown procedures, and maintain control
records.
Design, configure, and test computer hardware, networking software and
operating system software.
Recommend changes to improve systems and network configurations, and
determine hardware or software requirements related to such changes.
Confer with network users about how to solve existing system problems.
Monitor network performance in order to determine whether adjustments need to
be made, and to determine where changes will need to be made in the future.
Train people in computer system use.
Load computer disks and install software and printer paper or forms.
Analyze equipment performance records in order to determine the need for repair
or replacement.
Maintain logs related to network functions, as well as maintenance and repair
records.
Research new technology, and implement it or recommend its implementation.
Maintain an inventory of computer equipment and parts for repairs and purchase.
Maintain and updates of Preda Websites (Preda.org, Predafairtrade.net and Preda
Stiftung).
Forward internal and external email to all staff.
Forward article to newspapers and mass mail out to subscribers
Attend to President/CEO's request regarding IT related instructions and
operations.

56

EDUCATIONAL BACKGROUND
Graduate Studies
Ramon Magsaysay Technological University
Castillejos, Zambales,Philippines
Master in Business Administration
2012-2016
Undergraduate
St. Joseph College Olongapo
Elicao St. East Bajac-bajac Olongapo City
Bachelor of Secondary Education Professional Education
October 15, 2015
Comteq Computer & Business College
Bldg. 8722, 7922, 7932 Rizal Gate, Manila Ave.
Subic Bay Freeport Zone, Philippines
Bachelor of Science in Information Technology
April 20, 2012
PERSONAL BACKGROUND
Age

37 years old

Birthdate

June 18, 1978

Birthplace

Olongapo City, Philippines

Citizenship

Filipino

Civil Status

Married - Mary Eresa Catubig Venzon

Religion

Christian

Height

55 ft.

Weight

63 kgs.

57

CHARACTER REFERENCES:
Available upon request
WORK AVAILABILITY: I can start for work immediately.

This is to certify that the above

information is true and correct
according to my knowledge an belief.

Wilbert C. Venzon

58

ANNEXES

59

Business Registration Steps The Easy Way!

If you want to start a business in the Philippines, just follow these simple business
registration steps. Starting a business in the Philippines is easy and does not have to be a
daunting task.
Step 1: Go to any DTI office (DTI) and the Bureau of Trade Regulation and Consumer
Protection (BTRCP) to register your business name.
Requirement: Any valid ID
Fee: Barangay: PHP 200.00
City / Municipality: PHP 500.00
Regional: PHP 1,000.00
National: PHP 2,000.00
Processing time: 1 hour
Step 2a: Go to Municipal hall to get business permit.
Requirements:
DTI certificate
Lease contract (if renting) or tax declaration (if you own the place)
22 ID picture
Fee: P4,000 (approx.)
Processing time: 2-3 hours
Step 2b: Go to Office of the Treasurer of each city or municipality for BMBE*
Application
Requirements:
1. Duly filled up and signed Application form in triplicate
2. Three passport size pictures
3. DTI registration for sole proprietorship; SEC registration for corporations, partnerships
or association; CDA registration for cooperatives
4. Mayors permit

60

Cost of registration: P1, 000

The LGU shall issue the Certificate of Authority and shall be effective for a period of two
(2) years, renewable for a period of two (2) years for every renewal.
Step 3: Go to Barangay hall to get business clearance.
Step 4: Go to BIR office to get TIN/Certificate.
Requirements:

DTI certificate
Mayors Permit
Lease Contract (if renting) or tax declaration (if you own the place)
Fee: P500
Processing time: 1-2 hours

61

62

63

64

65

e-NROLL MANAGEMENT SYSTEM INTERFACE

66

67