Business plan of a software house in order to start a company/software house/business

1. Business Plan
FZ Software House
XYZ Block, Kohinoor, FSD
041-2499201-02

2. 1 | P a g e
Submitted By
FARWA ABDUL HANNAN (12-CS-13)
&
ZAINAB KHALID (12-CS-33)
Submitted To
SIR ADEEL SAEED
NFC – INSITUTDE OF ENGINEERING AND FERTILIZER RESEARCH,
FSD
Date OF Submission: Monday, 25 January, 2016

3. 2 | P a g e
Table of Contents
Executive summary......................................................................................................................... 3
1. Business Concept................................................................................................................. 3
2. Company.............................................................................................................................. 3
3. Market Potential................................................................................................................... 3
4. Management Team............................................................................................................... 3
I. Farwa Abdul Hannan: Owner & Manager ....................................................................... 3
II. Zainab Khalid: Assistant Manager ............................................................................... 3
5. Distinct Competencies ......................................................................................................... 4
6. Required Funding & its use ................................................................................................. 4
I. Company Description.............................................................................................................. 4
II. Industry Analysis ................................................................................................................. 5
III. Market Analysis................................................................................................................... 5
IV. Competition.......................................................................................................................... 6
1. Profiles of Primary Competitors.......................................................................................... 6
2. Competitive evaluation of Product ...................................................................................... 7
V. Marketing & Sales ............................................................................................................... 7
VI. Operations............................................................................................................................ 8
VII. Management & Organization............................................................................................... 9
VIII. Development .................................................................................................................... 9
IX. Risks and Contingencies...................................................................................................... 9
X. Summary & Conclusions..................................................................................................... 9
Appendices.................................................................................................................................... 10
Appendix-A: Sales Forecast .................................................................................................. 10

4. 3 | P a g e
Executive summary
This business plan outlines the strategy for sales of softwares to different companies and
franchises. FZ House has a wide selection of informative software’s including face recognition
system, competent professional staff, a team of talented developers and excellent suppliers. We
expect a high degree of profitability based on our plan to key in on businesses that have already
expressed the need for such services and products to the software developer. Our management
expertise will be the cornerstone of our success in dealing with corporate decision makers and our
partner's reputation.
1. Business Concept
Our business concept is to develop software based on artificial intelligence that is
Automatic face recognition system. Implementation of face recognition idea into some real
world is core theme of this project. The purpose is to design such a system that capture the
pictures (even moving objects), compare them from some pre-defined database and
recognize them. On the other hand, a small logging type database would also be maintained
that will note the time whenever it will recognize some face(s)-can be said “Auto
Attendance System”.
Recognition also includes the ‘side-views recognition’ and face structure recognition
that is bone and jaw structure.
2. Company
Our company name is FZ Software House which is located in Kohinoor.
3. Market Potential
By considering the market potential local & international population will be looking
for to use our software and services. We need more research work which should be
accurate. We are analyzing the secondary research that is attendance system in educational
institutes are biometric but our research is to do it by face recognition. Market is feasible
for our product. We have better experience in software’s development. Our software will
be attractive and less costly that every type of customer can purchase it
4. Management Team
Our management team analyzes and identifies the business goals and objectives in
order to achieve success. Our team includes:
I. Farwa Abdul Hannan: Owner & Manager
Farwa has four years’ experience in software development. She served three
years in web development, databases & programing development. After that she
began research in Artificial Intelligence. She has an undergraduate degree of
Bachelor in Computer Sciences from University of Engineering and Technology.
II. Zainab Khalid: Assistant Manager
Zainab has four years’ experience in software development. She served three
years in Programming and Game Development, Java based Project, Web

5. 4 | P a g e
development & databases. After that she began research in Artificial Intelligence.
She has an undergraduate degree of Bachelor in Computer Sciences from
University of Engineering and Technology.
5. Distinct Competencies
Our company’s staff also have skills in development and marketing of softwares.
6. Required Funding & its use
We need capital/funds for running our business which is estimated 51,450,000 Rs
that’ll be used to
 Purchase Building
 Purchase Equipment
 Renovations
 Working Capital and others
Main Sections
I. Company Description
 The mission of company is to facilitate customers with supreme value on every
software and to achieve the highest level of personal satisfaction by customers.
 The Vision is to provide customer with quality software at a minimum level of
cost.
 The summary activity date:
i. Start date-time:
1st
of December, 2015
ii. End Date-time:
1st
August, 2016
 FZ Company has hold on many software’s i.e. Chat Application which was based
on Java, Web Development, Hangman Game, and Hostel Management System on
Databases etc. And now developing Face Recognition System in artificial
intelligence that will be used for security purpose as well. Right now the software
is at 30% of the total development. We are on the most challenging phase, but also
the most satisfying. We have a polished software, but it lacks a lot of testing work
and also research work.
 Our company’s developers has the knowledge and ability to perform work activities
at a given competency level.
 Our product software which is face recognition system is to detect the face using
live video and it is still on development stage. We will solve the problem of our
customer and give them solutions about the software product we are selling.
According to customer need and benefits we will offer the service of product and

6. 5 | P a g e
also service cost or delivery to customer. It is different from current offerings in
quality and cost.
 Our objective is to provide quality information to our clients or customers in the
process of fully satisfying their needs. We will position ourselves as a quality
service provider that provides accuracy. We intend to establish a good relationship.
 The key to success in the company is the
 Quality of software
 Excellence in fulfilling the promise
 Completely confidential, reliable, trustworthy expertise and information.
This dictates that we have the latest technology and software.
 The company will be located in Kohinoor. The facilities we will providing are
offices for every single person. Moreover is Internet services i.e. Wi-Fi connections
and Ethernet cables. Every person will have separate PC and telephone systems.
Offices will be air conditioned and heaters with executive table.
II. Industry Analysis
 There are many barriers and challenges we facing by entering a market that is
location barrier etc. We are considering some barriers and others we will consider
them along the development.
 Small to medium builders are comfortable to cooperating with subcontractors who
they have already employed in past projects. The each expect fair price in their
project, as it is mainly a trust-based business relationship.
 New technology has changed almost everything about the distribution of software
today. The FZ Software makes it easier for construction software vendors to sell
and get customers up and running, offering itself to a more profitable business
model. FZ software wants to become good and more creative provider of Artificial
intelligence applications in the software house market. The Company will do this
by developing an innovative and progressive development and management team.
III. Market Analysis
 Market is big for goods and services what we plan to offer our software according
to customer’s needs. Growth rate is increasing day by day. Our main competitors
are Appcotech, Beaconlmpex (Pvt) Ltd and Bize Line. But customers will buy high
quality, low cost and good reputation from us.
 Market size is big in purchasing software as it become need of every person and
growth is increasing due to latest technologies.
 Our software house location needs marketing. So we will advertise by adds,
newspapers and as well as online help by developing a website.
 Now a day’s market has trend of software houses in different domains like graphics,
development and technology. We will target the software house of IT Developers.
 Market segment involves consumer business and also market needs. Our market
needs well experienced and skill full developers.

7. 6 | P a g e
 Customer having different characteristics they have some values and interest in
technology and we are working on technology that is face recognition using live
video.
 Customer need is increasing day by day. They have utility stores and import export
business in which they need computer technology to establish a good business.
 Our product position is low cost and high quality and efficient work.
IV. Competition
1. Profiles of Primary Competitors
Competitor 1 Competitor 2 Competitor 3
Company Name Appcotech BeaconImpex (Pvt)
Ltd.
Bize Line
Main office
Location
Office No. 7, Odion
Street, Near Bus
Stop, Samundry
Road, Faisalabad.
Universal House,
West Canal Road,
Faisalabad
Off No.8, 1st Floor,
Madina Centre,
Satyana Road,
Faisalabad, Pakistan
Type of employees
do they have?
Developers of C#,
Ruby, JAVA
Team for Data
Processing
Internet Web Page
Designers,
Computer Software
developers
Network Security
Administrators,
Software Developers
Type of Business Service Providers Service Providers Service Providers
How do they
advertise or market
themselves?
Online
Advertisements
Online
Advertisements
Online
Advertisements
Do they have an
online presence (e.g.
website, social
media)?
Yes
(website)
Yes
(website)
Yes
(website)

8. 7 | P a g e
2. Competitive evaluation of Product
Evaluation
Our Product Competitors’ Product
Our “Face Recognition System” will
provide a complete “Automatic
Attendance System” that will conduct
attendance automatically by detecting
face
Competitor’s product provides manual
face detection and matching only along
with the image processing.
V. Marketing & Sales
 Our company offers
o Musical and Islamic softwares for infants
o Games for people of different ages
o Desktop Apps
o Android Apps
o Web based Apps
 We offer our products in an affordable and reasonable prices by considering the
customers’ characteristics
 The main channel of distribution for our software is through the supplier. They provide
all of our distribution resources and also provide us with itemized accounting for units
sold, units in transit, units in store, etc. This exclusive software arrangement may be
changing as our need for expansion grows, but we fully expect our suppliers to remain
as one of our active partners in the continuing development of our distribution system.
 In order to access/attract more customers we’ll promote our products by advertising
them over the internet, in the weekly newspapers & magazines because these days
almost everyone uses internet. People do use internet for selling and purchasing
purpose also and they also consult the weekly newspapers and magazines in a little bit
more detail as compared to daily newspapers because of their tough working schedule
but on Sundays almost everyone stay at home and can find a little bit more time in order
to consult/study Sunday newspaper and magazine easily.
 As we want to a sell high-value, best quality and a little bit complex products to our
customers, we need sales people with good product knowledge, convincing skills and
the ability to build relationship with customers
 The sales forecast of our company is
Unit Sales January – June July – December
Desktop Apps 10 10
Web based Apps 15 15
Android Apps 20 20
High – value Softwares 5 5
Total Unit Sales 50 50

9. 8 | P a g e
Unit Prices January – June July – December
Desktop Apps 20,000 25,000
Web based Apps 15,000 20,000
Android Apps 25,000 30,000
High – value Softwares 50,000 60,000
Total Unit Prices 110,000 135,000
Sales January – June July – December
Desktop Apps 200,000 250,000
Web based Apps 225,000 300,000
Android Apps 500,000 600,000
High – value Softwares 250,000 300,000
Total Sales 1,125,000 1,450,000
VI. Operations
 For the development of our products we have
o Best development team that have skills in frequently used languages.
o Network Security Administrators
o Web developers
o Android developers
 We provide all these facilities at one place in an affordable price with guarantee to
provide efficiency, robustness, good quality and security as compare to our
competitors.
 As our main product is “Face Recognition System” so for its development we have
good developers that have skills in Matlab and works efficiently. The operations that
this product will perform include
o Automatic Face detection
o Automatic Face capturing
o Automatic Face matching
o Automatic Conducting Attendance
o Automatically Storing the capturing time
o Automatically maintaining history in a log file of database
 The development of our “Face recognition System” consist of three phases which are
o Automatic Face detection and capturing
o Database creation
o Automatic Face matching and conducting attendance
 We’ll provide face recognition system in an affordable and reasonable price with the
extra feature of doing its working automatically.

10. 9 | P a g e
VII. Management & Organization
 We have a team of consultants to provide expertise and direction in key areas. We also
have an Advisory Board consisting of key individuals that will provide expert advice
to our company when making strategic decisions. This board consists of individuals
with particular expertise in new product development and maintenance.
 In our organizational structure there are following key departments which control 90%
of the business activity of the company. These departments are:
o Research and development - The cornerstone of the company.
o Sales and marketing - Promoting our products and our prospects.
o Internet & web design - Designing the tools of tomorrow.
o Finance and accounting - Counting our successes and adding our achievements
VIII. Development
IX. Risks and Contingencies
Risks are involve in every business. To overcome them a risk management plan is
required if we faces any. Some common risks include:
 The software houses are increasing day by day. Because of technology it is
becoming demand of every person to provide them software which fulfills their
needs and gives them facilities. So competition is increasing with growing of
software companies.
 It would be contingence for us if we will lose any employee who is working on a
task efficiently.
X. Summary & Conclusions
Our company FZ Software house will work on demanding software. It includes IT
developers, Web development & software’s on Artificial Intelligence. We have

11. 10 | P a g e
experienced team members and skillful employees. Company will be full of facilities like
Wi-Fi connections and PCs. We will offer the good services according to customer needs.
Our quality is better and costs are not too much high. We will establish a good relationship
with our customers.
Appendices
Appendix-A: Sales Forecast
Unit Sales January – June July – December
Desktop Apps 10 10
Web based Apps 15 15
Android Apps 20 20
High – value Softwares 5 5
Total Unit Sales 50 50
Unit Prices January – June July – December
Desktop Apps 20,000 25,000
Web based Apps 15,000 20,000
Android Apps 25,000 30,000
High – value Softwares 50,000 60,000
Total Unit Prices 110,000 135,000
Sales January – June July – December
Desktop Apps 200,000 250,000
Web based Apps 225,000 300,000
Android Apps 500,000 600,000
High – value Softwares 250,000 300,000
Total Sales 1,125,000 1,450,000