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Table of Contents
1. Executive Summary .................................................................................................................................. 3 1. Marketing Plan ..................................................................................................................................... 5 1.1. Description of venture .................................................................................................................. 5 Product .................................................................................................................................. 5 System view .......................................................................................................................... 5 Framework view.................................................................................................................... 7 Mouse Wrapper Routines ..................................................................................................... 9 Sketch .................................................................................................................................. 10 Computer Understandable Sketches (CUS) ........................................................................ 11 Computer Understandable Representation (CUR) ............................................................. 11 Laws..................................................................................................................................... 11 Simulator ............................................................................................................................. 11

1.1.1. 1.1.2. 1.1.3. 1.1.4. 1.1.5. 1.1.6. 1.1.7. 1.1.8. 1.1.9. 1.2. 1.2.1. 1.3. 1.4. 1.5. 1.6.

INDUSTRY ANALYSIS.................................................................................................................... 12 Future outlook and trends ....................................................................................................... 12 ANALYSIS OF COMPETITORS ....................................................................................................... 13 Rational Rose .............................................................................................................................. 14 AutoCAD .................................................................................................................................... 14 ProE............................................................................................................................................. 14 Market segmentation ................................................................................................................. 15 Industry and market trends ........................................................................................................ 15 MARKETING MIX ......................................................................................................................... 20 Product ................................................................................................................................ 20 Pricing.................................................................................................................................. 20 Placement ........................................................................................................................... 21 Promotion ........................................................................................................................... 21

1.6.1. 1.6.2. 1.6.3. 1.6.4. 2.

ORGANIZATION PLAN ........................................................................................................................ 23 2.1. Form of ownership ...................................................................................................................... 23

3.

FINANCIAL PLAN.................................................................................................................................. 25 3.1. Sales Volume Forecasts............................................................................................................... 25 1

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3.1.1. 3.1.2. 3.1.3. 3.1.4.

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Cost of Goods Sold Schedule .............................................................................................. 27 Inflation and Price Adjustments.......................................................................................... 28 Assumptions: ....................................................................................................................... 31 Assumptions: ....................................................................................................................... 31

4. SIZE OF THE BUSINESS ............................................................................................................................ 33 4.1. Location............................................................................................................................................ 33 4.2. Equipment and Personnel ................................................................................................................ 33 4.3. Patent ............................................................................................................................................... 34 4.4. Personnel ......................................................................................................................................... 34 5. BACKGROUND OF THE ENTREPRENEURS .............................................................................................. 35 6. OPERATIONAL PLAN ............................................................................................................................... 38 6.1. Equipment Details ............................................................................................................................ 38 IR Camera ............................................................................................................................................ 38 IR Pen .................................................................................................................................................. 38 Bill Of Materials................................................................................................................................... 39 6.2. Facility locations............................................................................................................................... 40 6.3. Distribution ...................................................................................................................................... 40 6.4. Inventory .......................................................................................................................................... 40 6.5. Maintenance and Service - Order Fulfillment and Customer Service.............................................. 40 6.6. General Operating Hours ................................................................................................................. 41 6.7. Labor ................................................................................................................................................ 41 6.8. Capacity ............................................................................................................................................ 41 6.9. Quality Assurance ............................................................................................................................ 41 7. PRODUCTION PLAN ................................................................................................................................ 42 7.1. Materials/purchasing option ........................................................................................................... 42 7.2. Operations/Manufacturing information .......................................................................................... 42 7.3. Demand fluctuations........................................................................................................................ 42 8. RISK ASSESSMENT ................................................................................................................................. 43 8.1. Contingency Plans ............................................................................................................................ 44 9. REFRENCES .............................................................................................................................................. 46

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1. Executive Summary
TOCCO is a computer-based sketching environment that feels as natural as drawing or writing on the whiteboard, but unlike present system, understands a given scenario and simulates according to it. Muhammad Mustafa Saeed is the CEO and co-founder of MOHR Solution. Syed Muneeb Ali is the Director Operations & co-Founder of MOHR Solutions and he is the IT Administrator and Maheen Khalid is the Product Design Officer & co-Founder of MOHR Solutions. They are the sole employees of Tocco manufacturing for the first two years of operation. Once the business reaches 60% of its operational capacity which is expected in our third financial year they will offer the positions of one project manager, one software developer and three assistants to our project manager also. Main product is an interactive whiteboard software which comes with complementary products such as IR camera and IR pen. A small yet unique feature is that most of the already implemented simulation techniques and techniques proposed in research papers require specific and accurate hardware devices. Our aim is to limit the simulation within software grounds and minimize the use of external hardware. This increases level of portability and cost effectiveness. Furthermore it decreases dependency on hardware devices and provides a more plug-n-play scenario to the concept.

We have decided to opt for a combination of cost-based and mark-up pricing. The total cost of our direct materials for a single unit is Rs.7, 460. The equipment required for the software development includes Computers,Fast speed Internet,Network wires,Printers,Camera,Raw material for the Pen We are going to pursue a below-the-line promotional strategy, which will include business-tobusiness promotion, trade shows, brochures, personal selling, internet advertising and advertisements in trade magazines NBS-BBA-2k7-A |
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To prevent any other party from making, using and/or selling the identified invention Mohr will have to get a Utility Patent for idea for the software that they have developed. The cost of filing an application with IPO-Intellectual Property Organization of Pakistan, for the Utility Patent will be covered by NUST. In the first two years, the major work for the entrepreneurs is the development of the software. After the development of the software, and when the company comes to the stage of commercializing the product, they will take on a marketing manager who will help them in making proposals and selling it to the right parties for the right price. They have decided to go for venture capitalists in the 5th year. Sales forecasts for the 3 years have been done keeping in mind that the business is still in its initial stages and product expansion is yet to happen in the future years. For the immediate future, Toccos market has been localised and in the first year, only the entrepreneurs own university has been targeted, with annual sales of 10 units. In the next year, the market has expanded to other engineering institutions in the Islamabad/Rawalpindi region like QAU and FAST-NU; with the major focus being on related constituents of NUST. In the final year, Tocco will be supplied to its existing market, as well as some new universities will be added to its existing clientele for example GIKI and UET.

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1. Marketing Plan
1.1. Description of venture
1.1.1. Product

TOCCO is a computer-based sketching environment that feels as natural as drawing or writing on the whiteboard, but unlike present system, understands a given scenario and simulates according to it. There are two views of the system, overall system view and software view. Both of them are described as under in detail. 1.1.2. System view

Our suggested system contains both hardware and software modules. There will be manipulative computer screen to imitate a simple whiteboard and an IR Pen to imitate a marker. User will use the IR Pen to draw on the screen or to move the objects around the screen. On the other end, there will be a camera that will be connected to the system through Bluetooth. This camera will track the location of the IR blob on the screen with respect to the boundaries specified. The system in return will respond by invoking the required events. This view can be more clearly understood by the following figure.

Figure 1: Overall view of the system NBS-BBA-2k7-A | Marketing Plan

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IR Camera: For this project we are using Wiimote for the IR camera. Wiimote, also known as Wii Remote, is the primary controller for Nintendo Wii Gaming Console. It is distributed together with the gaming console. But can also be purchased separately. It has many capabilities like motion detection, accelerometer, IR camera, etc. The main purpose to use Wiimote instead of separate IR Camera is that Wiimote has a 128x96 monochrome camera with an IR pass filter. This camera is capable of tracking 4 moving objects simultaneously at the frequency of 100 Hz. It can detect objects of wavelength up to 940nm.

Figure(left) Wiimote

Figure(right) Wiimote IR pass Filter

IR Pen: IR pen is a simple IR transmitter. Following figure shows its circuit diagram.

Figure 2: IR Pen Circuit Diagram NBS-BBA-2k7-A | Marketing Plan

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This design requires special IR emitting LEDs with angular dispersion of 50 degrees and wavelength of 940nm. 1.1.3. Framework view

The main duty of the framework is to enable the user to draw the sketch, understand it and then simulate it by applying the laws as required.

Figure: The complete Architecture Diagram NBS-BBA-2k7-A | Marketing Plan

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The first task of the framework is to provide a platform to the user using a sketch can be drawn. Once the sketch is drawn, the system should be able to understand what the user intended to draw and convert to XML representation which will be called as Computer Understandable Representation (CUR). Then the mathematical calculations are applied on these CURs according to the laws being applied and the resulting values will be saved in output XML file. A simulator will convert this XML file to a simulation. Following figure shows the flow of this application.

Input

Mouse Wrapper Routines

Sketch

Computer Understandable Sketches (CUS) Computer Understandable Representation (CUR)

Laws

Simulator

Figure: The complete Architecture Diagram NBS-BBA-2k7-A | Marketing Plan

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Entrepreneurship All these functions can be divided into following main modules. 1.1.4. Mouse Wrapper Routines

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After capturing the IR Blob on the screen, Wiimote will send the image of the current state of screen as a signal to the system. Based on this image, the system will determine the exact location of the blob. Then it will translate this signal and perform the changes to the screen. For this purpose, we need an application that interfaces between the projected screen and the system. This application will be called as Bluetooth Based Mouse Wrapper. The term Bluetooth is associated with it because the Wiimote sends the signal to the system over a Bluetooth connection. This module is also developed using JavaSE 6. Following are the main technologies being used in this module.

MoteJ : This API is a Java library used for Wiimote Communication. Java Advanced Imaging (JAI): The Java Advanced Imaging API (JAI) provides a set of object-oriented interfaces that supports a simple, high-level programming model which allows images to be manipulated easily in Java applications. For mouse wrapper, it takes every IR blob as an image and manipulates it as a signal.

Bluecove: This is a Java Library for Bluetooth which interfaces WIDCOMM with our application. We need this library to link the Wiimote to our application.

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Figure: Class Diagram for Mouse Wrapper 1.1.5. Sketch

This module will provide a platform for sketching. This will be paint like application. The main API used for the development of this module is Piccolo2D. This API is a toolkit that supports development of 2D structures. It also provides supports for Zoomable User Interfaces which allows user to smoothly zoom in and get detailed information. NBS-BBA-2k7-A | Marketing Plan
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1.1.6. Computer Understandable Sketches (CUS)

In this module, the sketches drawn by the user will be identified according to the application then will be converted to figures which are easily understood be the computer. For this purpose, different imaging techniques will be used to recognize the sketch. 1.1.7. Computer Understandable Representation (CUR)

In this module, the CUS will be parsed to XML and will be called as CUR. The reason behind using XML is that XML is highly portable and so each time system will not have to worry for different type of applications that developers will develop. 1.1.8. Laws

In this module, the developers will implement different laws and rules that are required in their applications. This module will take CUR as input and then generate the different values applying the mathematical operations implemented in the laws. These generated values will be saved in output XML file. 1.1.9. Simulator

This module based on the values in saved in output XML file will generate a simulation. This Simulation will run using the same sketch as drawn by the user.

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1.2.

INDUSTRY ANALYSIS

1.2.1. Future outlook and trends

Human-Computer Interaction is that domain in which we study the mode of interaction between computer and human beings. It is considered to be the point where computer science merges with behavioral science. In Human-Computer Interaction involves software and hardware both. Therefore in HCI the goal is to develop such a system (software and hardware) in which the user can interact with the computer in most natural way possible and take the maximum out of it. For this reason, the developer should have complete logic of advantages and limitations of human body. Considering all these factors we can say that HCI is a study of design, development and evaluation of models from a human-centered perspective. Teaching requires a very precise view of the stated problem. In a normal scenario we generally can draw on a whiteboard and verbally explain what the image or sketch are indicating and what action it is due to perform. But many of these scenarios cannot be conceived in a normal environment. We generally have to use off the shelf software for sketching and simulation. This simulation is usually limited to a few options and techniques and is not provided flexibility. However, if we use some form of simulation which actually elaborates the intended sketch or drawing, the intended message can be better conveyed to the audience. This requires that the intended image or sketch be read by the computer, translated into its own understandable format, apply the required simulation laws and finally generate a simulation of that sketch. A very simple and basic example is drawing an apple tree and simulating the apple to fall to the ground. We can simply draw the apple and the tree roughly. The sketches will then be understood by the computer as an apple attached to a tree. The simulation will cause that apple to use the law of gravity to make it fall to the ground. Glover & Miller conducted a study on the pedagogic impact of interactive whiteboards in a secondary school. They found that although interactive whiteboards are theoretically more than a computer if it is only being used as an adjunct to teaching its potential remains unrealized. The authors research was primarily to ascertain the extent and type of use in the classroom. In order NBS-BBA-2k7-A | Marketing Plan
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to determine if any change in pedagogy or teaching strategies was taking place the researchers conducted a detailed questionnaire. The authors found that the teachers used the IWBs in one of three ways; as an aid to efficiency, as an extension device, and as a transformative device. They noted that teachers use of the technology was not primarily affected by training, access, or software availability. According to the findings of a study conducted by the London Institute of Education as part of the DfES-funded study (see detailed information below) to evaluate the educational and operational effectiveness of the London Challenge element of the (SWE), interactive whiteboards have been found to have no significant impact on student performance in Maths and English for Key Stage 3, and a slight improvement Science. At the same schools over Key Stage 4 negative effects for Maths and Science were found and positive effect for English. The authors site several possible causes for the Key Stage 4 findings, which include; a Type II statistical error, disruption to teaching methods leading to reduced pupil performance when IWBs were installed, or a non-random deployment decision of IWB installation resulting in a skew of the data A lot of software firms like Apple, SMART technologies, Optinnova, ReturnStar etc. have already heavily invested in interactive whiteboard simulation and these softwares are focusing more on primary classrooms. Whereas the newness of the technology is welcomed with open arms, the conducted studies have mixed reviews about the potential of this technology. However it is an invention that is in sync with todays needs.

1.3.

ANALYSIS OF COMPETITORS

There are extremely rare applications in existence which take input handmade sketches from the user, translate them to a computer generated image and perform a simulation. Therefore we dont have direct competitors but on the other hand we do have indirect competitors which are briefly explained below. Microsims MicroSim is a simulation language developed specifically for use on microcomputers. The package is written in Basic, a language commonly found on microcomputers, and is NBS-BBA-2k7-A | Marketing Plan
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a generalized discrete event simulator. The MicroSim language provides the analyst with all of the necessary computational features such as random number generation, time keeping, etc. that are used in simulation. This language is event oriented and allows the user to write subroutines in Basic to describe discrete events. The language also allows for limited continuous modeling by the use of linear difference equations. Rational Rose Rational Rose is an object-oriented Unified Modeling Language (UML) software design tool intended for visual modeling and component construction of enterprise-level software applications. In much the same way a theatrical director blocks out a play, a software designer uses Rational Rose to visually create (model) the framework for an application by blocking out classes with actors (stick figures), use case elements (ovals), objects (rectangles) and messages/relationships (arrows) in a sequence diagram using drag-and-drop symbols. Rational Rose documents the diagram as it is being constructed and then generates code in the designer's choice of C++, Visual Basic, Java, Oracle8, CORBA or Data Definition Language. AutoCAD AutoCAD is a CAD (Computer Aided Design or Computer Aided Drafting) software application for 2D and 3D design and drafting. It is built to help people design buildings, products, or public spaces, without having to draw up plans by hand. It was released in 1982 by Autodesk, Inc., and offered a personal solution to software that was before then released only for larger workstations. While CAD programs prior to AutoCAD required massive amounts of computing power in the form of gigantic computers, AutoCAD streamlined its operating and optimized it for the IBM PC, allowing people to work from home or on their own work computers. ProE Creo Elements/Pro, a product formerly known as Pro/ENGINEER is a parametric, integrated 3D CAD/CAM/CAE solution created by Parametric Technology Corporation (PTC). It was the first to market with parametric, feature-based, associative solid modeling software. The application runs on Microsoft Windows and Unix platforms, and NBS-BBA-2k7-A | Marketing Plan
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provides solid modeling, assembly modeling and drafting, finite element analysis, and NC and tooling functionality for mechanical engineers.

1.4.

Market segmentation

We are launching our product in Pakistan which is our home country, thus granting us easier access to the untapped local market. It is a product that does not cater to the primary level classrooms instead it is an advanced interactive whiteboard that mainly focuses on the advanced learning of Physics, Chemistry and Mathematics. In the initial development stage we are going to test the market and launch it in one of the most highly recognized software institute, SEECS. Weighing the demand and the success of the software we are then going to expand to other related universities and research institutes (public and private). A need was identified in the market. In a classroom, the instructor can never make sure that students perceive the exact concept of whatever is being conveyed. Neither can it be made sure whether or not students are able to visualize those concepts. Visualization of different scientific concepts is very essential to the learning for the students. It helps them to grasp each and every detail more easily and quickly and diversifies their imagination. But even only visualization is of little importance unless it is interactive for the instructors and students.

1.5.

Industry and market trends

MIT Magic Paper: Over the years, scientists have been working to develop such interaction platform which provides highest degree of interaction. But all they have been able to develop are various CAD systems which require such detailed input that the user might not be able to take care of all the time. One important improvement after realizing this shortcoming was made by Massachusetts Institute of Technology. This research was named as Magic Paper. The main aim of this project is to understand raw hand-made sketches. This scheme involved a highly coupled Hardware and software system. Special screens were made to analyze the sketch. Sketch is taken as a signal NBS-BBA-2k7-A | Marketing Plan
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which is separated from the noise using special noise filters on the basis of spatial frequencies. This scheme makes use of two ways to collect the information about the sketch.

First is to identify the lines and the arcs through calculating the noise. Second is to make use of a temporal character of data, i.e. speed slows down around the corners.

MIT group of Magic Paper is actually extending this module where they can use different modeling techniques. This system is extremely effective in analyzing the sketches and simulating them. But it has a major shortcoming. This system is a highly dependent on the hardware. Without the screen (Hardware), the software will simply not run.

SILK (Sketching Interfaces Like Krazy)

With increasing power of computer, the scientists are trying to improve the User Interface as well so that computers bend to peoples way of interacting, not the other way around. Researchers at University of California, Berkeley and Carnegie Mellon University (CMU) have designed, implemented, and evaluated SILK (Sketching Interfaces Like Krazy), an informal sketching tool that combines many of the benefits of paper-based sketching with the merits of current electronic tools. The main idea behind SILK was to grant designers the freedom to sketch rough design ideas quickly, and the ability to test designs by interacting with them, and the flexibility to fill in the design details as they make choices. With SILK, designers can quickly sketch an interface using an electronic pad and stylus, and SILK recognizes widgets and other interface elements as the designer draws them. Unlike paperbased sketching, however, designers can exercise these elements in their sketchy state. For example, a sketched scrollbar is likely to contain an elevator or thumbnail, the small rectangle a user drags with a mouse. In a paper sketch, the elevator would just sit there, but in a SILK sketch, designers can drag it up and down, which lets them test the components or widgets behavior. SILK also supports the creation of storyboardsthe arrangement of sketches to show how design elements behave, such as how a dialog box appears when the user activates a button. Storyboards are important because they give designers a way to show colleagues, customers, or end users early on how an interface will behave. NBS-BBA-2k7-A | Marketing Plan
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SILK recognizes four primitive componentsrectangle, squiggly line (to represent text), straight line, and ellipse. These are single-stroke shapes, which mean that the designer must draw them without lifting up the pen or mouse button until the stroke is finished. These primitive components combine to form basic widgets.

Figure . Interface widgets that SILK recognizes (a) during sketching and (b) in the transformed interface.

Johnny Chung Lee: Low Cost Interactive Whiteboard:

Johnny Chung Lee, a research assistant at Carnegie Mellon University, first came up with this concept of using Wiimote as the basis of interactive surfaces. As Wiimote has the capability of motion sensing, it can be easily used for gesture tracking. Johnny Chung Lee also came up with research papers to prove that gestures can enhance the quality of lecturing process. Tracking gestures, in scope of the demonstration and presentation of teaching subjects, will be used to highlight and underline the essence of presenting the material. For example, to point on a particular location saves time and sometimes can be more efficient than a verbal description of it. If the information is presented incidentally in a wrong way, significant loss of information for the end users can be a fatal consequence. In this solution we had a computer projected screen. An IR emitting pen is used to navigate the screen. On the other end, Wiimote is connected to the system over a Bluetooth connection and NBS-BBA-2k7-A | Marketing Plan
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locates the IR blob on the screen using its IR pass filter. It then sends the signal to Wiimote Control Desk which then performs the required event. The Wiimote Control Desk application was developed based on the code of Wiimote Whiteboard, originally programmed by Johnny Chung Lee as part of his experiments. Wiimote Control Desk can be operated on two plans.

The Controller mode was implemented in order to use the Wiimote as both a pointing and presenter device, similar to a free hand mouse. As capturing background, an IR LED array was used. Some Wiimotes buttons were reprogrammed to fire mouse and keyboard events.

The Presenter mode is required when using finger tracking support. This mode enables the user to navigate through the presentation slides of MS PowerPoint or any other applications which support the forward or back function based on keyboard events.

However, for low cost interactive whiteboard we just need the former plan of operation. This demonstrator kit was used as a presentation tool during various lessons and practical lab sessions at Graz University of Technology. Moreover, it was used as an interactivity and cooperation tool during learning and discussion tasks using a visual tracking of mouse movements on electronically shared whiteboards. In comparison to the classic approaches, this method allows the direct intuitive cooperation between all participants within the learning process. Consequently, it offers more comfort and provides more flexibility in everyday eLearning and e-Teaching activities. Furthermore, it can be pointed out that there are no similar low cost products, which contain a higher or equal grade of interactivity and such a wide appliance area that could be as suitable for these purposes. Altogether it can be said that Wiimote is a fascinating collection of sensors that can be used for many purposes, even for recognizing gestures, and which can be adapted freely using adequate open source libraries available at the internet.

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Entrepreneurship Dell S300wi Wireless Short-Throw Interactive Projector

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Recently Dell came up with a product which follows the same approach as Johnny Chung Lees Interactive Whiteboard but it has specialized hardware. The pen is battery-powered, photo-diode based. 3-button interactive pen is designed to operate like writing or drawing tool, serving as a wireless mouse that works on- or off-surface from as far as 30 feet away. Short-throw projection means you can get big pictures in tight spaces: 60" image from 2.2 feet away; 90" from 3.3 feet away. It provides connectivity to the system through LAN, VGA and Wireless Adapter.

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1.6. MARKETING MIX 1.6.1. Product

Our main product is an interactive whiteboard software which comes with complementary products such as IR camera and IR pen. Our suggested system contains both hardware and software modules. There will be manipulative computer screen to imitate a simple whiteboard and an IR Pen to imitate a marker. On the other end, there will be a camera that will be connected to the system through Bluetooth. For more details about the product and its specifications refer to the description of venture module. A small yet unique feature is that most of the already implemented simulation techniques and techniques proposed in research papers require specific and accurate hardware devices. Our aim is to limit the simulation within software grounds and minimize the use of external hardware. This increases level of portability and cost effectiveness. Furthermore it decreases dependency on hardware devices and provides a more plug-n-play scenario to the concept.

For additional resources a lot of back end programming and other resources are required. This is not a job for a few programmers but will require a number of different programmers to provide code snippets which can be integrated to the interaction framework. This can be done by designing modules which can be plugged to the main framework. Programmers can program various actions e.g. real world laws and projections in the form of pluggable modules using APIs.

1.6.2. Pricing
We have decided to opt for a combination of cost-based and mark-up pricing. The total cost of our direct materials for a single unit is Rs.7, 460. The two major components that contribute heavily to this break-down are the wii-mote with an astounding Rs.5, 000 and the batteries which cost Rs.1, 400 for the first year. For the first two years of our operations we also do not have any labor costs. So having a total of our costs (adjusted against inflation etc.), we add a cost mark-up NBS-BBA-2k7-A | Marketing Plan
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of 25% (also, our profit margin), which gives us a price of Rs.9, 325. This being very exact, our initial estimation was an addition of at least Rs.1, 500 above our costs. The price skimming strategy that is used majorly by any technological invention was something that we did consider but then decided against it. This is majorly because we are not incurring extravagant costs in the product development; also we essentially want to Pakistani consumers to readily accept this technological advancement without having to worry about pricing. And, this will also greatly reduce a need for pirated versions. On the other end we cannot opt for penetration pricing because we have no direct rival in the industry.

1.6.3. Placement
We will be distributing our products from the university in particular from the incubation centre of NUST, where our business has been set up. Since our product is exclusive to our home market, we will only utilize a few channels of distribution, more specifically our extensive university network. Initially, in the development stage of the product, we will only target the specialized engineering institutes of NUST, after which we will approach other engineering/architecture/research institutes of Rawalpindi and Islamabad. By the end of 3 years, eventually encompassing the Punjab region.

1.6.4. Promotion
We are going to pursue a below-the-line promotional strategy, which will include business-tobusiness promotion, trade shows, brochures, personal selling, internet advertising and advertisements in trade magazines. In B2B selling initially we will be leveraging our universitys extensive academic and corporate network, in creating awareness about our products usefulness and eventually generating non-pirated sales. Because we are starting a new venture we do not have the capital to hire sales personnel, therefore, we the entrepreneurs ourselves would approach prospective customers. Side by side we will be advertising in different trade magazines, to create awareness about our product. NBS-BBA-2k7-A | Marketing Plan
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Because it is not a necessity, we need to aggressively market our product to create a need. Another successful way for generating awareness and sales about technical innovations is through trade shows. This will help us showcase our product in a cost effective manner. We will distribute brochures and pamphlets to relevant educational and research institutes in the Punjab region. Our product website will continuously be updated to provide the upgraded version of our software. We will also promote it through this medium to a selective audience.

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2. ORGANIZATION PLAN
2.1. Form of ownership

In the first two years, the three entrepreneurs will be the sole owners of the business with an equal partnership. They will have an equal say in the managing decisions of the company. All the profit, after taking out the money to be reinvested in the company will be divided equally amongst the partners. However, as they start commercializing their business they would require capital, they will have to find additional source of funds. They have decided to go for venture capitalists in the 5th year. Two venture capitalists will be taken on board and the ownership of the business will be broken down into 75-25 with 75% ownership lying with the three entrepreneurs (25% each) and the rest 25 will be divided among the two venture capitalists with 13.5% each. The entrepreneurs are apprehensive about losing the control over their business, so by this arrangement they will retain the majority of the ownership with 75% decision making power as well. Venture Capitalists do have a say in the managing decisions, but these entrepreneurs will have an expectation setting with the capitalists to ensure that they are aware of their minimal role in the managing decisions of the business. Management Team Background CEO

Initially CEO will be Muhammad Mustafa Saeed, who is the co-founder of the company, Mohr, and is currently the team leader. Later, the team will replace him with a person who has previous experience in the industry of management. CFO

The entrepreneurs lack the skills to manage the financials of the company, so the company will need a finance expert in the second year of the business before officially introducing their product in the market. The CFO will draw up Cost Benefit Analysis, Cash Flow Statements, Break-even analysis and will be in-charge of finding the sources of the required funds. He will also maintain the Payable Accounts, along with the Income Statement and Balance Sheet. NBS-BBA-2k7-A | ORGANIZATION PLAN
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Entrepreneurship CTO

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The entrepreneurs will choose amongst themselves as to who will be the CTO. They wont require an external person to fill this position as in this department all the research and development of the software will take place. CMO

The Chief Marketing Office will be hired as soon as the software is completely developed, which should be towards the end of the first year of operation. CMO in charge of handling the price, distribution, promotion, and public relations with the clients. The CMO will need to have good communication skills along with good negotiating and persuasion skills. The CMO will need to have experience in the industry, should be aware of the needs of the consumers and be up to date with other similar products. DO

Director of Operations will be handling all the activities related to the operations of the company.

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3. FINANCIAL PLAN
3.1. Sales Volume Forecasts

Sales forecasts for the 3 years have been done keeping in mind that the business is still in its initial stages and product expansion is yet to happen in the future years. For the immediate future, Toccos market has been localised and in the first year, only the entrepreneurs own university has been targeted, with annual sales of 10 units. The volume was decided upon by looking at the different programs being offered there, for the duration that one batch stays in a particular program and the number of divisions or sections in each year. Since the product was relatively new, the students in their final or third-years were kept as the main focus. This approach of need determination was carried forward in ascertaining the demand for later years in other institutions as well. In the next year, the market has expanded to other engineering institutions in the Islamabad/Rawalpindi region like QAU and FAST-NU; with the major focus being on related constituents of NUST. Some colleges outside of this region have also been targeted like PNEC and CAE. SADA is also included in this list as it has an indirect need associated with the product. Its programs focus more towards the architecture side, for which a virtual whiteboard would be a an important aid in the classroom. In the final year, Tocco will be supplied to its existing market, as well as some new universities will be added to its existing clientele for example GIKI and UET. These are well-known names in the country for their engineering degrees and hold to benefit greatly from our product.

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Entrepreneurship Sales Volume Break-up FY2012 (units) Engineering Institutions in NUST School of Electrical Engineering & Computer Science (SEECS) College of Aeronautical Engineering (CAE) School of Chemical and Materials Engineering (SCME) Military College of Engineering (MCE) College of Electrical and Mechanical Engineering (C of EME) Military College of Signals (MCS) Pakistan Navy Engineering College (PNEC) 10 0 0 0 0 0 0

[BUSINESS PLAN]

FY2013 (units)

FY2014 (units)

2 10 7 15 25 10 5 5

2 15 12 15 35 15 15 15

Institute of Environmental Science and Engineering (IESE - 0 SCEE) Institute of Geographical Information Systems (IGIS- SCEE) Centre for Advanced Mathematics and Physics (CAMP) 0 0

5 0

0 3

Engineering Institutions in Islamabad/Rawalpindi School of Art, Design and Architecture Bahria National University FAST NU COMSATS AIR University Quaid-e-Azam Uuniversity 0 0 0 0 0 0 5 5 5 0 3 8 2 7 12 15 5 12

Related Institutions in Punjab GIKI UET Lahore LUMS UET Taxila RIMMS NCVI NBS-BBA-2k7-A | FINANCIAL PLAN 0 0 0 0 0 0 0 0 0 0 0 0 16 30 8 16 2 3
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Entrepreneurship AMC TOTAL 0 10

[BUSINESS PLAN] 0 110 5 260

3.1.1. Cost of Goods Sold Schedule

The following table shows the necessary components and sub-assemblies required for the manufacture of one unit, as well as for the annual forecasted demand. The labour costs, which are incurred in Year 3 only, are given in terms of annual figures. There are not much significant indirect costs for the business as production is relatively low-scale and takes place in the NUSTSEECS Innovation Centres for the first 2 years and mostly at the home of one of the entrepreneurs or even the office-space provided by the PSEBif they choose to use that facilityin the third year. Moreover, there is not a separate schedule for Cost of Goods Manufactured and Sold as the business does not hold inventory. Whether, raw materials or workin-process or finished goods. Hence, the figures are the same for both.

Cost of Goods Sold Schedule FY2012 FY2013 FY2014 (Rs.) (Rs.) (Rs.)

Direct Materials: Wii-mote Infrared pointer Wires Batteries IR LED SPST switch DM cost per unit Total DM cost 5,000 100 100 1,400 60 800 7,460 74,600 5,000 100 100 1,400 60 800 7,460 5,000 100 100 1,400 60 800 7,460

820,600 1,939,600

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Entrepreneurship Direct Labour: Developer Project Manager Assistants Total DL cost Manufacturing o/h: DSL connection Cost of 0 0 24,000 0 0 0 0 0 0 0 0 420,000 300,000 120,000 840,000

[BUSINESS PLAN]

Goods 74,600

820,600 2,803,600

Manufactured Starting Inventory Ending Inventory COGS 0 0 74,600 0 0 0 0

820,600 2,803,600

3.1.2. Inflation and Price Adjustments

The costs figures shown above have not been adjusted to inflation so far. The following data was used to make the figures more realistic. In the first table, a base inflation rate1 was used and then annual forecasts of rate changes2 were added to the base rate to get to the future forecasts for the 3 years. In the second table, process were calculated for the first year by adding a 25% Gross Profit Margin on the COGS figure. This mark-up reflects the skimming pricing strategy, keeping in mind that the product is new and without any competition in the market, but also considering that establishing yourself in the market requires you to moderate your profits in the beginning years. For this very reason, when the entrepreneurs will require extra help in the third year to help with the rising demand and incur direct labour costs of PKR 840,00 in Year 3, this cost will be adjusted within the mark-up of the initial years and there will not be a price jump. Inflation will be the only factor taken into account in the beginning for increasing prices.

1 2

Pakistan Budget 2009-10 Country Intelligence Report CPI change forecasts pg.34

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Entrepreneurship FY2011 Base rate Change Forecasts Inflation rates 14.4% 10.7% 15.9% FY2012 15.9% 9.2% 17.4% FY2013 17.4% 6.8% 18.6% FY2014 2,803,600 19.74% 553,534

[BUSINESS PLAN] FY2014 18.6% 6.2% 19.7%

FY2012 Gross Cost Inflation Rate Inflation Adjustment Adjusted COGS 87,586 Cost Mark-up Price 25% 9,325 74,600 17.41% 12,986

FY2013 820,600 18.59% 152,558

973,158 25% 11,059

3,357,134 25% 13,242

PRO-FORMA STATEMENTS Income Statement FY2012 (Rs.) Revenue COGS Gross Profit Printer Expenses Phone bill Registration fees Printer depreciation Laptop depreciation Operating Expenses Operating Profit Marketing Expenses 93,250 (87,586) 5,664 0 0 15,000 0 22,500 (37,500) (31,836) 400 FY2013 (Rs.) 1,216,448 (973,158) 243,290 1,000 0 7,500 1,500 22,500 (32,500) 210,790 5,200 FY2014 (Rs.) 3,442,919 (3,357,134) 85,785 1,500 6,000 7,500 1,500 22,500 (39,000) 46,785 33,600

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Entrepreneurship Delivery Charges Other Expenses Profit before Tax Taxation Net Profit 0 (400) (32,236) 0 (32,236) 0 (5,200) 205,590 (71,956) 133,633 11,640 (45,240) 1,545 (541) 1,004

[BUSINESS PLAN]

Balance Sheet as at 30th June FY2012 FY2013 (Rs.) Fixed Assets Intangible: Tocco Software Testing Environment Web Domain Tangible: Laptops Laser Printer 157,500 0 207,500 Current Assets Cash 0 0 TOTAL ASSETS Equity Owners' Investment Retained Earnings/Loss Liabilities TOTAL CAPITAL 239,736 239,736 239,736 102,401 0 342,137 207,500 148,633 148,633 341,133 173,637 173,637 342,137 135,000 7,500 192,500 112,500 6,000 168,500 40,000 10,000 40,000 10,000 40,000 10,000 (Rs.) FY2014 (Rs.)

(32,236) 101,397 0 207,500 0 341,133

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Entrepreneurship 3.1.3. Assumptions:

[BUSINESS PLAN]

1. Operating expense of phone bill applies only in the last year when NUST facilities are not being utilized anymore. 2. Business will be registered with PSEB in the first year of operations, hence the start-up fee of Rs. 7,500 along with the annual charge of Rs. 7,500 applies in the first year. In the coming years only the annual charge is required to be paid. 3. Marketing expenses constitute the preparation of their formal business proposal and its distribution to the respective universities. It also takes into account the transportation charges of the business owners to the various institutes in order to present their business proposal as marketing will be done mainly in-house. 4. Delivery charges constitute of the TCS charges3. Rs. 140 and Rs. 170 per 2kg package which is an adequate size for Toccobeing sent to areas in Khyber-Pakhtunkhwa and Punjabmainly Lahore. 5. Standard corporate tax rate of 35% applies. 3.1.4. Assumptions:

1. No inventory or credit-system is used in the starting years. Suppliers are paid at the time of purchase and workers are paid on a monthly basis. 2. The owners invest in the form of cash as well as assets that are required for initiating the business. The laptops and intangible assets are part of their investment in the business too. 3. The intangible assets bear no amortization as the investment in a website domain will not lose any value with time. However, since this investment will be used for a term longer than one reporting period, the expense was capitalized and made a part of equity as well as a fixed asset. It is the same case with the software testing environment. The entrepreneurs will be using it to constantly upgrade their software and since it is a one-time cost with benefits
3

TCS Domestic Shipping http://www.tcscouriers.com/pk/Tools/DomesticCostCalculater.aspx

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Entrepreneurship

[BUSINESS PLAN]

being reaped for a longer term, with no reduction in value to the business, it is also treated as an intangible fixed asset without any amortization. 4. Depreciation on the fixed assets is charged using the straight-line method. There are 3 laptops, worth PKR 60,000 apiece. They have a useful life of 4 years with a residual value of PKR 30,000 at the end of their economic life. This amounts to depreciation expense of PKR 7,500 per laptop and PKR 22,500 for all 3 combined. The laser printer is bought in Year 2 for PKR 9,000 and will be disposed in 4 years too with a residual life of PKR 3,000; hence PKR 1,500 is charged in Years 2 and 3. 5. The owners investment stays constant in all 3 years, as retained earnings are used to meet any other demand of the business; for example the purchase of the laser printer in Year 2. CASH FLOW STATEMENT FY2012 (Rs.) Net Income Add: Depreciation Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Net Increase/Decrease Add: Balance at start of year Cash at end of year (32,236) 22,500 (9,736) FY2013 (Rs.) 133,633 24,000 157,633 FY2014 (Rs.) 1,004 24,000 25,004 0 0 25,004 148,633 173,637

(230,000) (9,000) 239,736 0 0 0 0 148,633 0 148,633

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Entrepreneurship

[BUSINESS PLAN]

4. Size of the Business

4.1. Location
Initially in the first two years of the business, the major work for the entrepreneurs is the development of the software. This will be done on the NUST campus as NUST provides its students with the facility of working on the NUST premises with using its equipment for free. This absolves the entrepreneur of having to pay the utility bills, the rent of the office, the internet and the equipment (especially computers). The plan is to develop the software in the first year and then work on its commercialization in the second year and make it ready to be sold in the market. In the third year, the entrepreneur will move out of the NUST campus and they will start small with minimal expenses. They plan to shift into a small place which might be one of the entrepreneurs house and continue working from there. They will get a landline and the required equipment. For meetings with the clients they have planned to conduct in restaurants or other professional cafs.

4.2. Equipment and Personnel

The equipment required for the software development includes: Computers Fast speed Internet Network wires Printers Camera Raw material for the Pen

They will be using their personal laptops throughout, therefore cutting costs for the company. However, internet will be free for them while they operate from NUST but they will have to bear the cost when they move out of the NUST premises. The cameras, raw material of the pen, printers, and the network wires will have to be bought throughout the years of operation and development and this will be their major cost in the years. NBS-BBA-2k7-A | 4. Size of the Business
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Entrepreneurship

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4.3. Patent
To prevent any other party from making, using and/or selling the identified invention Mohr will have to get a Utility Patent for idea for the software that they have developed. A patent in Pakistan is obtained by filing an application with a complete specification of the idea. Then there is examination and acceptance of application by the Patent Office. The next step is overcoming opposition if there is any to the grant of the Patent and then sealing the Patent. Filing fee for Patent Application is PKR 2250 and an additional Rs. 30 for pages of specification above 40. The cost of filing an application with IPO-Intellectual Property Organization of Pakistan, for the Utility Patent will be covered by NUST.

4.4. Personnel
The technical knowledge that is needed for this software will be provided by the entrepreneurs. However, the additional help that they will require will come in the form of the interns that they take from their university. These interns will not be paid but they will be given extensive practical training during the course of the internship. While operating from the NUST premises the interns will use the universitys equipment and later, after the second year the interns will have to bring their own laptops to work on. After the development of the software, and when the company comes to the stage of commercializing the product, they will take on a marketing manager who will help them in making proposals and selling it to the right parties for the right price. This marketing manager will also guide the team in maintaining their competitive advantage. He will not be a partner, and will be paid a salary as an employee. They will recruit more employees as the need arises. The posts that they will be filling initially include a CEO, CFO, CTO, CMO and DO. The position of the CTO will be taken over by one of the entrepreneurs and the rest of the posts will be filled by employees on a salary. At the start, while trying to keep their costs low, one of the entrepreneurs will take up the role of the CEO.

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Entrepreneurship

[BUSINESS PLAN]

The employees that will be hired will be based on their experience in the respective industry and knowledge.

5. BACKGROUND OF THE ENTREPRENEURS

Muhammad Mustafa Saeed CEO & co-Founder MOHR Solutions Programmer

I did my O-levels and A-Levels from Burn Hall , Abbottabad. Then joined NUST just after that . I am doing my Bachelors degree in Information Technology and am the CEO and co-founder of a startup company named Mohr Solutions. I have done internships in a company called Personforce in 2010 and an internship in Tintash as a game developer for iPhone and iPad. I have a passion for Computer Graphics , Animation and Game Development so I have usually been involved in such work.I am the head Game development in my campus also. I have also worked on major web related projects. One of the significant is called "bbclone". Its an online tool for websites to maintain their customer traffic and statistics related to that. I have done a project of 3D rendering of objects increasing its efficiency to 40%. I dont recall myself not being part of something new or something happening. Even during my college days I had been part of the sports and co and extracurricular activities. Basketball has always attracted great interest of mine which has also given me lessons of making the most out of the available conditions and still aim for the highest possible standards. I enjoy discussing ideas; some are good, some wild, and some maybe senseless. This makes me end up getting into things that are not essentially related to my field of specialization. Having studied computing and concentrated on the conventional programming has not stopped me from getting into unconventional ideas. I have been part of business plan competitions just to get to know the rules NBS-BBA-2k7-A | 5. BACKGROUND OF THE ENTREPRENEURS
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Entrepreneurship

[BUSINESS PLAN]

of the game. I am an admirer of aesthetics and believe that no matter where a person is, he/she can mold their careers in that direction. Music genre that interests me is Rock. I am and have been heading societies and committees which have certainly taught me leadership and management. Still I believe I have the tendency of lacking focus on one particular area which is a negative trait in my opinion. Making technology as natural as possible was our aim. Simulations and graphics has always been an inspiration for me. As a group we wanted to make visualization do the greater job of work. We watched IRON MAN 2 where he had everything as holograms to understand and show to the system. It was something very easy for him to convey and interpret. This was a major inspiration also. We had seen some simulation tools as well so we did a bit research on what things are available and through discussions and research we finalized on Tocco.

Syed Muneeb Ali Director Operations & co-Founder MOHR Solutions IT Administrator

I am a person who takes privilege in making things work and manage logistics. I sense music and literature as a major driving force in my work. I have been an all-rounder as far as maintaining things are concerned. I have pretty good skills of influencing my peers and help achieve its tasks smoothly. I am not an initiator but can take tasks can make them happen. I am currently the President of NUST Volunteers Club which has a branch set up in the College of EME as well. My weaknesses are that I get discouraged by timely failures but overcome them very soon. I am an IBM certified Tivoli Associate.

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Entrepreneurship

[BUSINESS PLAN]

Maheen Khalid Product Design Officer & co-Founder MOHR Solutions Programmer

I love reading books. I believe that through we get a wider view of the world around us. I had idea of what Information Technology and Computing is but now that I look at it, this is what I always wanted to be. Technology fascinates me especially the design. Success to me is the sense of achievement that one gets out of the resources. I am very critical about rules and the way things are handled. I have been the general secretary IEEE SEECS. I want to achieve all that I aim for .For me the sky is the limit. I played baseball in my school and follow a wide range of technologists. Steve Jobs ranks the most inspiring to me. I tend to be impulsive on decisions but I believe I can handle stress effectively.

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Entrepreneurship

[BUSINESS PLAN]

6. OPERATIONAL PLAN
The following section will identify the proposed operational plan for a product Tocco. Included are the Equipment and its details, Facility location, Distribution, Inventory, Maintenance and Service - Order Fulfillment and Customer Service, General Operating Hours, Capacity, Labor and Quality Assurance.

6.1. Equipment Details

Tocco contains both hardware and software. There will be manipulative computer screen to imitate a simple whiteboard and an IR Pen to imitate a marker. User will use the IR Pen to draw on the screen or to move the objects around the screen. On the other end, there will be a camera that will be connected to the system through Bluetooth. This camera will track the location of the IR blob on the screen with respect to the boundaries specified. The system in return will respond by invoking the required events.

IR Camera For this product, Wiimote has been used for the IR camera. Wiimote, also known as Wii Remote, is the primary controller for Nintendo Wii Gaming Console. It is distributed together with the gaming console. But can also be purchased separately. It has many capabilities like motion detection, accelerometer, IR camera, etc. The main purpose to use Wiimote instead of separate IR Camera is that Wiimote has a 128x96 monochrome camera with an IR pass filter. This camera is capable of tracking 4 moving objects simultaneously at the frequency of 100 Hz. It can detect objects of wavelength up to 940nm. IR Pen IR pen is a simple IR transmitter. Its design requires special IR emitting LEDs with angular dispersion of 50 degrees and wavelength of 940nm.

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Entrepreneurship BILL OF MATERIALS

[BUSINESS PLAN]

TOCCO Wii mote IR Pen Infrared pointer Wires Batteries IR LED SPST switch Projector White Board

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[BUSINESS PLAN]

6.2. Facility locations

SEECS has a policy of providing access to its students to its innovation centers for a period of two years from when they have graduated. Therefore, for the initial two years, the entrepreneurs shall work at SEECS, and with them, to extend the reach of the product. Later, when the period with SEECS has expired, the facility location, which includes the office as well as the assembly of the IR pen, will be moved to Islamabad. A small facility shall be set up, as suited to the demand forecast for the year, although as the demand rises with time, operations shall be moved to a bigger building, which is convenient both for the entrepreneurs as well as the customers.

6.3. Distribution
The initial marketing of the product shall be done by SEECS itself, to all the schools that fall under NUST where the product can be used, like engineering schools and mathematical research centers. The firm however, shall not use any distributers, and the product will be purchased, directly from the company, and will be set up by the company experts, who shall go personally and train the faculty who will use the program.

6.4. Inventory
The company has a zero inventory policy for the forecasted years. However, a buffer stock of ten units will be kept at all times, which will be stored at the facility.

6.5. Maintenance and Service - Order Fulfillment and Customer Service

The orders shall be fulfilled in a period of 15 days, from the date of order, with the transportation charges being charged separately. The university staff will be also given training to deal with minor glitches in the system on their own, however, for major problems that might arise in the program, or for major updates of the system, the experts may have to travel to the institute and solve the problem. Updates of the program shall be released periodically, with bug fixes being free and major program changes or innovations being charged at a nominal price. The users of the product will NBS-BBA-2k7-A | 6. OPERATIONAL PLAN
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be notified of updates regularly, after which they may or may not show interest in obtaining the update.

6.6. General Operating Hours

For our product manufacturing we intend to operate Monday thru Friday from 9 am to 5 pm. It will be operational year round.

6.7. Labor
Muhammad Mustafa Saeed, Maheen Khalid and Amaad Rashid will be the sole employees of Tocco manufacturing for the first two years of operation. When additional human resources are needed, we have identified the four people qualified and able to assist our employees as internees. Once the business reaches 60% of its operational capacity which is expected in our third financial year we will offer the positions of one project manager, one software developer and three assistants to our project manager also.

6.8. Capacity
Refer to the sales volume in Financial Plan. In first financial year 10 units will be sold to SEECS, in second year we are targeting the other institutes also and 110 units will be manufactured according to the demand and in our third financial year 260 units will be manufactured with more developed software.

6.9. Quality Assurance

Software will be one time efforts for our employees and its quality assurance would be checked through a software quality assurance program. So its basic model would be replicated on every additional unit manufactured. Our hardware which is an IR pen, its standards, processes, procedures and correct implementation would be double checked by our project manager.

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[BUSINESS PLAN]

7. PRODUCTION PLAN
7.1. Materials/purchasing option
Software development will have no materials or purchasing costs. However, the supplementary hardware with it will have a materials purchasing schedule. The demand will be gauged according to our target institutes after which we will order our materials, including wiimote and components for the IR pen. The IR pen will be assembled together by the entrepreneurs themselves. Supplier of the components of IR pen will be from Raja Bazaar, RawalPindi. Whereas, the supplier of wiimote will be chosen of price relaxation.

7.2. Operations/Manufacturing information

Apart from the software development, there will be no manufacturing costs. The supplementary hardware, IR pen, will be assembled by the entrepreneurs themselves.

7.3. Demand fluctuations

The demand fluctuations will be handled through a chase strategy. We will produce our software and product according to our demand.

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[BUSINESS PLAN]

8. RISK ASSESSMENT
This is a technical product in an industry which is rapidly changing. The customers want the latest technology available as new innovations enter the market. The entrepreneur would have to be fast paced in introducing new technologies with new advancements and would have to innovate with the changing needs of the market.

Piracy of software is widespread in Pakistan; therefore this will be a major threat to Mohr. They will have to take extreme measures to protect their software. In most countries, companies/entrepreneurs can patent their idea and can be protected from others making, using, or selling the identified invention. The entrepreneurs will patent their idea but if someone imitates their product and violates their patent in any way, a small company like Mohr will not have the resources to fight a legal battle in Pakistan as such cases go on for years without any result.

The interns that Mohr will be hiring will not be paid in the first few years, and they may steal the idea and become competitors of the company. The employees also dont have a stake in the business, therefore, they might learn the ropes of the business and leave the company to work for competitors and give them the vital information.

The entrepreneurs will have to take on other partners who will invest in their company, and they will have to find clients who are able to buy their product. However, with the global recession, this may prove to a tedious task.

They import the wiimote and the leds from USA so they have a huge risk if things go bad due to political turbulence and a trade embargo is imposed. As a result, they will face difficulty in obtaining the parts from USA which they require for completing their product.

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[BUSINESS PLAN]

As the entrepreneurs have planned to expand their business in future, for that they need to have the support from government and this can be a major risk for them .But being a part of PSEB, this risk will be significantly reduced for them coz PSEB will help them in partnering with the govt. bodies and offering them strategic alliances. o PSEB has developed various incentives and programs to assist IT/ITeS companies in Pakistan. In addition to tangible benefits, such as higher revenue and growth, certified companies also enjoy intangible benefits, such as improved customer confidence, greater employee satisfaction, and an increase in shareholder value.

As they plan to expand their business and hire more people in the 3rd year they might face difficulty in finding qualified people to recruit in their business

8.1. Contingency Plans

The marketing manager that the company will hire should keep tabs on the needs of the market and the competitors activities and ensure that the competitive advantage of the company sustains through the years. With the knowledge of the needs of the customers, the software developers should keep on researching and developing new software to cater to new needs in the market.

For the prevention of any possible threat of theft of the idea by interns/employees, the company can make them sign a contract when they start working for the company which would be a Statement of Confidentiality. This would prevent them from sharing, discussing any of the inventions of the company in any way.

In case of the recession affecting the operation of the company, the company will take the option of selling the company or merging it with another company which has the resources to sustain through the recession.

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They will try to find locally available alternatives, for obtaining wiimote and the leds .If not within from Pakistan then from Asian IT hubs like Japan or even India.

Being a member of PSEB their major problem of finding qualified people to hire in their business will be overcome. As PSEB will help them find the qualified people for their company.

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9. REFRENCES
http://www.ipo.gov.pk/Common/FAQs.aspx?DepartmentID=2#138 http://www.ipo.gov.pk/patent/Default.aspx#How to obtain a patent

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