[Your Company Logo]

[Your Company Name]

Business Plan
[Date Submitted]
Executive Summary
[Company Name] is one of the leading Software Testing Companies in India operating
mainly in Bangalore, Delhi and Mumbai. For 14 years, the company delivers the best
automated and manual testing services in the software development life cycle. With highly
professional QA engineers and softwarePrepared
testers, By
[Company Name] uses the most reliable
techniques and high-class tools, to provide an unmatched deliverable.
[Name]
The company's target market covers clients under the commercial and industrial businesses
[Job Title]
who need professional software testing services for their daily operations. Using the
Internet to capture its target market, [Company[Phone]Name] aims to deliver the best software
testing services to its clients' satisfaction and business needs. With the recent market trends
and the marketing strategies developed by[Email] the company, [Company Name] expects to gain
more clients and increase its revenue this 2021.

Company Overview
Mission Statement
[Company Name]’s mission is to provide honest and efficient software testing services that
are fitting to its clients' needs.

Philosophy
[Company Name] dedicates itself in delivering the best software testing service to the
public, ensuring to exceed its clients’ expectations with its expertise on the field to produce
bug-free and highly functional software to satisfy their business needs.

Vision
[Company Name] envisions expanding its business operations globally, extending its services
to more clients, and become one of the top-earning brands in the software industry.
Outlook
The vast development of technology and its significant influence on the daily operation of
businesses create greater opportunities for [Company Name] to flourish in the upcoming
years. With more and more software developed daily, [Company Name] shall focus its
software testing services on the development of technology, operations infrastructures, and
marketing initiatives, particularly within the states covered by the company.

Type of Industry
Software Industry

Business Structure & Ownership

[Company Name] is a limited partnership with six shareholders managing the business.

Services
Description
[Company Name] performs the following software development and testing services:

Functional Testing
The company reviews and assesses all the software's aspects and functionality to ensure
that it's working correctly according to its program and features. Using the black box testing,
white box testing, and gray box testing, this software testing service ensures its clients
secured and highly functional software for their business.

Non-Functional Testing
The company tests and verifies the behavior of the software’s system, particularly on its
non-functional aspects, which are not covered by the functional testing. With this service,
the clients expect to have upgraded performance, efficiency, scalability, and usability in
their software.
Maintenance Testing
The company performs all the necessary maintenance on its client’s software with
confirmation maintenance testing and regression maintenance testing to enhance their
software and reduce its product failures.

Value Proposition

Honest service
The company provides an honest and reliable service in performing the software tests,
delivering bug-free and highly functional software to its clients.

Flexibility
The company can quickly adapt to the profound changes in the market and is flexible in
accommodating its client’s needs. With its reliable techniques and high-class tools, the
company delivers an unmatched deliverable to all its projects without losing the quality of
its output.

Marketing Analysis
Industry Overview and Trends
The continued growth in the technology's development and society's dependence on it
provides greater opportunities for [Company Name]. With the majority of businesses and
institutions digitizing their data collection and operation, there would be an increased
number of major companies and organizations that are highly invested in acquiring the
services of software testing companies. Furthermore, with the growing trend of the Internet
of things (IoT), more businesses rely strongly on IoT testing before they can launch their
products and services to their clients.
Listed below are the [Company Name]'s findings on the IT budget allocated by companies
for quality assurance and testing for their software and hardware from 2012 to 2018:

Target Market
It is [Company Name]’s goal to serve the software testing needs of its clients operating in
the commercial, industrial, and residential businesses. [Company Name]’s main markets are
located in the states of Bangalore, Delhi and Mumbai.

Market Size
Listed below is the prospective market size of [Company Name]:

Draw Area Size % of Total

Area 1 625 29%

Area 2 425 20%

Area 3 750 35%

Area 4 350 16%

Total 2,150 100%

Market Segmentation
[Company Name] uses market segmentation to determine its target base:

Demographics Industrial
- Commercial, industrial, and residential - Commercial business
business located in India that require - Industrial business
software development and testing services - Residential business

Psychographic Geographic
- Customers who prefer swift, professional, - Bangalore
and reliable software development and - Mumbai
testing services - Delhi
- Customers who require professional
software development and testing
consultation

SWOT Analysis

Strengths Opportunities
- Highly skilled and professional software - Daily development of new software
testers - Increasing demand for software testing
- Excellent marketing strategies services

Weaknesses Threats
- Prices are more expensive than - An increasing number of competitors in
competitors the area
- Lack of manpower to handle other clients - Competitors are continually updating their
technological features
Competition
Direct competition - Companies offering the same product or service
Indirect competition - Companies offering alternative solutions, products, or services for the
same problem you are trying to solve

Direct and Indirect Competition

Company Name Direct Competition Indirect Competition

[Company Name]
Software development and [Name of Competitor] [Name of Competitor]
testing services

Competitive Analysis
Strength Weakness Opportunity Threat

Competitors
[Company Highly skilled Prices are more Daily are continually
and professional expensive than development of updating their
Name]
software testers competitors new software technological
features

Offers lower
prices on its
Insufficient Increasing An increasing
software testing
budget to demand for number of
[Competitor 1] services
expand its software testing competitors in
compared to
market services India
other
competitors

A growing
Lack of number of
Increasing
Excellent online manpower to clients
leverage for the
[Competitor 2] marketing accommodate switching to
Internet of
strategies some of its other
Things (IoT)
clients competing
brands
Marketing Plan
With the increasing development of technologies nowadays, [Company Name] seeks to
capture more clients within the year and remove software bugs from disrupting the daily
operation of many businesses in India. To achieve its target market, the company develops a
marketing plan:

Digital Marketing

Increase the company's online presence by advertising its services on social media
platforms, creating blogs on the company website, as well as email marketing. Once these
plans are put into action, it will be easier for the company to extend its grasp on its target
market.

Technology Association Membership

Create a group that is mostly composed of tech-savvy people, computer specialists, or

anyone who is passionate about computers and connects with other organizations. This
strategy helps various people learn more about the trends of technology as well as
introduce the company's products and services, building its credibility and boosting its
reputation to the public.

Building Business Relationships

Attend various business events and introduce what the company offers during seminars
and other business gatherings. Share the benefits available in acquiring the company's
services and play a video advertisement about the company's achievements.
Marketing Strategy

Marketing Strategy 1 Digital Marketing

Creation of blogs for the company website and the advertisements

Activities
for the company's social media accounts

Timeline March 20, 2021, to April 20, 2021

Gain at least 250 website visits, 200 responses, and 50 likes from
Success Criteria
social media accounts every day

Marketing Strategy 2 Technology Association Membership

Create activities and seminars about software development and

Activities
testing and invite people to join the activity

Timeline July 24, 2021, to July 27, 2021

Gain at least 200 responses and have at least 75% of the people
Success Criteria
who responded to attend the activity

Marketing Strategy 3 Building Business Relationships

Attend business events and discuss the company’s software

Activities
development and testing services to the group

Timeline September 21, 2021, to November 21, 2021

Receive queries on the company’s software development and

Success Criteria
testing services during the event
Pricing Strategy
[Company Name] offers two types of pricing strategies for its software testing services:
● Cost-plus fixed fee - The Company shall provide a fixed cost for each customized
software testing project delivered. The price may vary depending on the service
packages requested by the client based on the company's competitive pricing
strategy as well as its level of difficulty.
● Per feature pricing - The Company will also provide different pricing tiers according
to the functionality of each software feature tested by the company, offering
appropriate compensation for the company's deliverables.

Operational Plan

Operating Hours
[Company Name]’s office hours operate from 8 am to 5 pm, from Monday to Friday. During
the holidays, both regular and special, the office will operate from 8 am to 12 noon only.
Location
[Company Name]’s main office is a four-story building located at 1663 Brigade Road,
Bangalore 56001 India [give address]. Below are the details of the company’s main office in
Bangalore:

Location Description

Immediate Area

Type of Area Commercial

Adjacent Uses Shopping, Dining, Offices

Benefits Commercial area with excellent logistics facilities

Proximity

Customer Type Business, Residential, and Industrial

Size of Potential
625
Customers

Competitors [Competitor 1] and [Competitor 2]

Traffic Volume

Patterns Large intersections

Pedestrians Heavy

Periods Traffic is heavy between 9 AM to 1 PM

Accessibility

Proximity to Major
Near the main road
Streets

Entrance/Exit Glass doors, visible exits with clear signage

Visibility
View From the
Easy to spot, near the main road
Road

Exterior The logo is located at the building's entrance and exits, which is
Appearance visible with lighting when it gets dark

The company's brand and logo are planted in front of the building's
Landscaping entrance within the company's garden located near its tinted
windows.

Organizational Structure
Illustrated below is [Company Name]’s organizational chart:

CHIEF EXECUTIVE
OFFICER

HUMAN
RESOURCES

SOFTWARE
HUMAN QUALITY ANALYSIS
DEVELOPMENT
RESOURCES MANAGER
MANAGER

TESTER TESTER TESTER

Key Staff

Name [Full Name] [Full Name] [Full Name]

Position [Position] [Position] [Position]

Date Joined September 12, 2010 April 5, 2013 March 21, 2010

Computer
Software Developing, 7 Software Testing, 10
Experience Programming, 10
Years Years
Years

Master of Science in
Highest Information Master of Science in Master of Science in
Qualification Communications Computer Science Computer Science
Technology

Salary INR98,000 annually INR95,000 annually INR47,000 annually

Financial Plan
Assumptions
The financial forecast of [Company Name] is mainly based on the recent trends and demand
for software testing activities in Bangalore. The company shall be financed by the
investments of its investors and bank loans to operate and maintain its cash flow.

[Company Name]
Business Start-Up Costs in INR
FUNDING Estimated Actual Over/(Under)
Investor Funding
[Owner 1] 1,300,000.00 1,300,000.00 0.00
[Owner 2] 1,550,000.00 1,500,000.00 (50,000.00)
Total Investment 2,850,000.00 2,800,000.00 (50,000.00)

Loans
[Bank Loan 1] 1,450,000.00 1,450,000.00 0.00
[Bank Loan 2] 100,000.00 90,000.00 (10,000.00)
[Non-Bank Loan 1] 500,000.00 500,000.00 0.00
Total Loans 2,050,000.00 2,040,000.00 (10,000.00)
Other Funding
[Grant 1] 0.00 0.00 0.00
Total Other Funding 0.00 0.00 0.00

TOTAL FUNDING 4,900,000.00 4,840,000.00 (60,000.00)

COSTS Estimated Actual Under/(Over)

Fixed Costs
Advertising for Opening 2,500.00 2,450.00 (50.00)
Basic Website 1,500.00 1,500.00 0.00
Brand Development 2,000.00 1,800.00 (200.00)
Building Down Payment 350,000.00 350,000.00 0.00

Building 0.00
Improvements/Remodeling
Business Cards/Stationery 700.00 655.00 (45.00)
Business Entity 1,500.00 1,500.00 0.00
Business Licenses/Permits 1,500.00 1,500.00 0.00
Computer Hardware/Software 6,000.00 6,000.00 0.00
Decorating 0.00
Franchise Start-Up Fees 0.00
Internet Setup Deposit 5,500.00 5,500.00 0.00
Lease Security Deposit 20,500.00 20,000.00 (500.00)
Legal/Professional Fees 6,500.00 6,000.00 (500.00)
Machines & Equipment 45,000.00 40,000.00 (5,000.00)
Office Furniture/Fixtures 20,000.00 19,850.00 (150.00)
Operating Cash (Working Capital) 755,000.00 750,000.00 (5,000.00)
Point of Sale Hardware/Software 35,500.00 35,000.00 (500.00)
Prepaid Insurance 15,000.00 15,000.00 0.00
Public Utility Deposits 10,000.00 9,450.00 (550.00)
Reserve for Contingencies 5,500.00 3,000.00 (2,500.00)
Security System Installation 2,500.00 2,500.00 0.00
 Setup, Installation and Consulting
10,000.00 8,500.00 (1,500.00)
fees
Signage 800.00 750.00 (50.00)
Starting Inventory 10,000.00 10,000.00 0.00
Telephone 1,500.00 1,500.00 0.00
Tools & Supplies 35,000.00 34,500.00 (500.00)
Travel 25,000.00 25,000.00 0.00
Truck & Vehicle 20,000.00 20,000.00 0.00
(17,045.00
Total Fixed Costs 1,389,000.00 1,371,955.00
)

Average Monthly Costs

Advertising (print, broadcast and
2,500.00 2,000.00 (500.00)
Internet)
Business Insurance 2,000.00 1,800.00 (200.00)
Business Vehicle Insurance 750.00 750.00 0.00
Employee Salaries and
35,000.00 35,000.00 0.00
Commissions
Equipment Lease Payments 20,000.00 20,000.00 0.00
Inventory, Raw Materials, Parts 24,000.00 20,500.00 (3,500.00)
Franchise Fee 0.00
Health Insurance 20,500.00 20,000.00 (500.00)
Internet Connection 1,500.00 1,500.00 0.00
Loan and Credit Card Interest &
10,000.00 9,500.00 (500.00)
Principal
Legal/Accounting Fees 10,500.00 9,500.00 (1,000.00)
Merchant Account Fees 0.00
Miscellaneous Expenses 5,000.00 4,550.00 (450.00)
Mortgage Payments 0.00
Lease Payment 3,000.00 3,000.00 0.00
Owner Salary 20,000.00 17,500.00 (2,500.00)
Payroll Taxes or Self-Employment
12,500.00 12,000.00 (500.00)
Tax
Postage/Shipping Costs 1,000.00 995.00 (5.00)
 Security System Monthly Payment 8,500.00 8,450.00 (50.00)
Supplies 500.00 450.00 (50.00)
Telephone 1,000.00 1,000.00 0.00
Travel 2,000.00 1,990.00 (10.00)
Public Utilities 8,000.00 7,560.00 (440.00)
Website Hosting/Maintenance 2,500.00 2,500.00 0.00
(10,205.00
Total Average Monthly Costs 190,750.00 180,545.00
)
x Number of Months 12
(122,460.0
Total Monthly Costs 2,289,000.00 2,166,540.00
0)

(139,505.0
TOTAL COSTS 3,678,000.00 3,538,495.00
0)

SURPLUS/(DEFICIT) 1,222,000.00 1,301,505.00 79,505.00

[Company Name] illustrates a breakdown on its completed projects for the past six months
under the four states covered by the company:

August September October November December

Draw Area July 2020 Total
2020 2020 2020 2020 2020

Area 1 95 98 97 105 113 117 625

Area 2 70 70 65 75 70 75 425

Area 3 115 114 126 135 135 125 750

Area 4 60 57 48 53 67 65 350
Subtotal 340 339 336 368 385 382 2,150
 Statements

Income Statement

[Your Company Name]

Income Statement
For the Year Ended [Date]
Gross Project Revenues 8,450,000

Direct Project Costs on Contracts 6,500,000

Depreciation of Equipment 300,000
Estimating 250,000
Administrative and Other Expenses 600,000
Subtotal of Costs and Expenses 7,650,000

Operating Income 800,000

Interest Expense 250,000
Income Before Taxes 550,000
Tax Expense 200,000
Income After Tax 350,000
Cash Dividends 130,000
Net Income/Retained Earnings 220,000
Retained Earnings, Beginning 750,000
Retained Earnings at End of Year INR970,000.00
Profit and Loss Projection

[Your Company Name]

Profit and Loss (in INR)
For the Year Ended [Date]
FY2020 % FY2021 %
SALES
Revenue 1 - Construction 650,000.00 72% 700,000.00 70%
Revenue 2- Services 250,000.00 28% 300,000.00 30%
Total Sales 900,000.00 100% 1,000,000.00 100%

COST OF SALES
Cost of Contract - Labor 45,000.00 5% 44,500.00 4%
Cost of Contract - Materials 15,000.00 2% 18,000.00 2%
Cost of Contract - Subcontractors 35,000.00 4% 38,500.00 4%
Cost of Contract - Equipment 45,500.00 5% 47,000.00 5%
Cost of Contract - Others 38,500.00 4% 40,000.00 4%
Cost of Service - Subcontractors 25,000.00 3% 35,000.00 4%
Total Cost of Sales 204,000.00 23% 223,000.00 22%

GROSS PROFIT (Total Sales - Total Cost of

696,000.00 77% 777,000.00 78%
Sales)

INDIRECT EXPENSES
Salaries and wages - Vacation, Holiday, etc. 800.00 3% 800.00 2%
Salaries and wages - Salary, Bonus, and Benefits 2,500.00 8% 2,800.00 8%
Payroll Tax 5,500.00 19% 6,000.00 17%
Insurance - Workers' Compensation 7,100.00 24% 7,500.00 21%
Retirement plan- Employer Portion 5,000.00 17% 6,500.00 18%
Insurance - Health and Dental 2,500.00 8% 3,000.00 9%
Employee Tool Allowance 350.00 1% 600.00 2%
Equipment Parts 5,500.00 19% 7,000.00 20%
Equipment Depreciation 3,500.00 12% 6,000.00 17%
Interest and taxes 1,000.00 3% 2,500.00 7%
Indirect Labor Cost (2,500.00) -8% (5,000.00) -14%
Equipment Applied Cost (1,550.00) -5% (2,500.00) -7%
Total Indirect Expenses 29,700.00 100% 35,200.00 100%

GENERAL AND ADMINISTRATIVE EXPENSES

Wages and Salaries - Admin 1,800.00 17% 2,100.00 15%
Commission - Sales 3,400.00 32% 4,400.00 32%
Payroll Tax 1,100.00 10% 1,500.00 11%
Insurance - Workers' Compensation 750.00 7% 1,500.00 11%
Retirement plan- Employer Portion 150.00 1% 350.00 3%
Insurance - Health and Dental 500.00 5% 545.00 4%
Office Supplies 450.00 4% 600.00 4%
Utilities 650.00 6% 700.00 5%
Telephone 260.00 2% 400.00 3%
Licenses, Permits, and Fees 1,450.00 14% 1,800.00 13%
Total General and Administrative Expenses 10,510.00 100% 13,895.00 100%

NET INCOME 655,790.00 727,905.00

Profit Margin* 0.73 0.73

* Not part of P&L

Balance Sheet Projection

[Your Company Name]

Balance Sheet (in INR)
[Date of Coverage]
ASSETS
CURRENT ASSETS 2020 2021
Cash and Cash Equivalents 6,090,000.00 4,500,000.00
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, net of allowance for doubtful accounts 2,194,788.00 1,474,799.00
Contract amount 350,212.00 450,201.00
Other 17,540.00 0.00
Inventory 204,000.00 210,000.00
Cost in Excess of Billings 150,000.00 230,000.00
Deferred Tax Asset 35,000.00 30,000.00
Prepaid Expenses 25,000.00 20,000.00
Total Current Assets 9,066,540.00 6,915,000.00

FIXED ASSETS
Property, Land, Building 350,000.00 450,000.00
Equipment and Vehicles 340,000.00 410,500.00
Subtotal 690,000.00 860,500.00
Less: Accumulated Depreciation 250,000.00 240,500.00
Total Fixed Assets 440,000.00 620,000.00

INTANGIBLE ASSETS
Trademarks and Patents
Goodwill
Total Intangible Assets 0.00 0.00

Total Assets 9,506,540.00 7,535,000.00

LIABILITIES AND SHAREHOLDER'S EQUITY

CURRENT LIABILITIES
Accounts Payable 2,166,540.00 1,859,000.00
Accrued Expenses/Deferred Income 1,250,000.00 1,756,000.00
Loans Payable 2,040,000.00 2,500,000.00
Notes Payable
Other Short-Term Payable
Total Current Liabilities 5,456,540.00 6,115,000.00

NONCURRENT LIABILITIES
Long-Term Debt 500,000.00 450,000.00
Others
Total Noncurrent Liabilities 500,000.00 450,000.00

TOTAL LIABILITIES 5,956,540.00 6,565,000.00

SHAREHOLDER'S EQUITY
Invested Capital 2,800,000.00
Retained Earnings 750,000.00 970,000.00
TOTAL SHAREHOLDER'S EQUITY 3,550,000.00 970,000.00

TOTAL LIABILITIES & EQUITY 9,506,540.00 7,535,000.00

Cash Flow Projection

[Your Company Name]

Cash Flow
As of [Date]
Cash Flow from Operating Activities
Cash flow received from customers 719,989.00
Wages and salaries (600.00)
Payments to suppliers and vendors 307,540.00
Paid Interest (1,500.00)
Paid Tax (2,400.00)
Cash generated from operations (100,000.00)
Net Cash from Operating Activities 926,929.00

Cash Flow from Investing Activities

Purchase of land, property, and equipment (170,500.00)
Proceeds from the sale of equipment
Net Cash Used in Investing Activities (170,500.00)

Cash Flow from Financing Activities

Proceeds from common stock
Payment to long-term debt 50,000.00
Paid dividends 130,000.00
Net Cash Used in Financing Activities 180,000.00
Net Increase (Decrease) in Cash 936,429.00
Cash Balance January 6,090,000.00
Cash and Cash Equivalents at the End of Period 7,026,429.00