Mr.

Tech 24/7

Your reliable machine Doctor.

BUSINESS PLAN
August, 2021

Bascao, Louell Jay

Bonaobra, Edmel
Castro, Joshua
Dagsil, Chris Allen
Dionela, John Gualbert

Mr. Tech 24/7

Gonzalo Puyat St. Quiapo, Manila,
1001 Metro Manila

Tel: 0935-133-2689 (Globe) 0950-796-4936 (Smart)

Email / Website: Mrtech@gmail.com
I. TITLE PAGE - CONTENT
Name of the Business: Mr. Tech 24/7
Names of the Proponents:
Bascao, Louell Jay
Bonaobra, Edmel
Castro, Joshua
Dagsil, Chris Allen
Dionela, John Gualbert
Company Address: Gonzalo Puyat St. Quiapo, Manila, 1001 Metro Manila
Telephone number: 0935-133-2689 (Globe)
0950-796-4936 (Smart)
8255-1129
Email and Website address: Mrtech@gmail.com
The Date: August 8, 2021
The name of the person/s who prepared the business plan:
Bascao, Louell Jay
Bonaobra, Edmel
Castro, Joshua
Dagsil, Chris Allen
Dionela, John Gualbert
II. EXECUTIVE SUMMARY
The recent economic downturn triggered by the pandemic and other negative
effects was mentioned as the biggest challenge faced by most machine tool builders. Dr.
Tech 24/7 is a freshly established technical service that provides installation, repair, and
cleaning maintenance for various machineries that can be found in your home. The
company will target both local and large markets in order to demonstrate its abilities and
the high quality of work that our customers need.
Dr. Tech 24/7 falls under the category of technical services that provides
installation, repair and cleaning maintenance of different machineries that can be find at
home.
The ownership status is general partnership and that means all co-owners is
responsible for all the things that might happen in the business. Dr. Tech 24/7 is available
both home service and to our branch that can be find at Gonzalo Puyat Street Quiapo,
Manila.
Mr. Tech 24/7 will provide services that the general public can afford, with prices
ranging from PHP 150 to PHP 2000. Three new employees will be hired to help with the
development of new services. Mr. Tech 24/7 would fund the company's advertising and
promote on the Internet and radio.
A functional type of organizational structure is used in our business wherein the
employees need to report to all directors as well as the managers. Everything depends
on the relationship between managers to aid internal communication.
Furthermore, the computation of operating expenses that the business incurs
through the business operations is included amounting to P64,000 as our total operating
expenses. In addition, the computation for the capital requirements that is equivalent to
start-up costs plus the ongoing operating costs minus the owner's net worth the
calculation resulted to P1,978,000.
Financial data provides basic information for the control of cash and credit which
are essential for the company's operation. The computation for the balance sheet shows
the current and non-current assets of the business that makes a total asset amounting to
P325,000. Included also the computation for the liabilities and owner's equity amounting
to P325,000 also.
For the income statement, it shows the business earnings for a given timeframe.
The difference of revenue and expenses amounted to P176,700.
For the cash flows, a detailed information on all cash related activities such as the
operating, investing and financing activities. The cash at the end of the year computed
amounted to P110,000.
III. DESCRIPTION OF THE BUSINESS
Short Explanation of the Industry
Capital goods industries are sensitive to general economic downturns. Since
machine tools are mainly used to produce other capital goods, this applies especially for
the machine tool industry, making it vulnerable to economic fluctuations. The recent
economic downturn triggered by the pandemic and other negative effects was mentioned
as the biggest challenge faced by most machine tool builders. In 2019, growing economic
uncertainty through geopolitical events like the US China trade war and Brexit led to a
slowdown of the global economy. Import duties on raw materials, metal components, and
machinery affected the machine tool industry and the export of machine tools. At the
same time, the growing number of competitors in the low-quality segment, challenged the
market.
Technical services are one of the most common services found in all sectors of
any country. We would like to introduce our services. Dr. Tech 24/7 is a freshly
established technical service that provides installation, repair, and cleaning maintenance
for various machineries that can be found in your home. As our company grows, we will
target both local and large markets in order to demonstrate our abilities and the high
quality of work that our customers need.
All of the services that we give have a significant impact not only in your home, but
also on other companies or sectors that require our services
(MIKSCH, S. Machine Tool Market Trends and Challenges: ARC Advisory Group.
Access thru https://www.arcweb.com/industry-best-practices/machine-tool-market-
trends-challenges)

Description of the Business

Our business is under the category of technical services wherein we provide
installation, repair and cleaning maintenance for different machineries that can be find at
home such as refrigerator, air-conditioning, washing machines, electric fan units, etc. All
brands and models are accepted.
Dr. Tech 24/7 is a newly built technical service business. It is formed in a general
partnership type of business wherein all co-owners must take responsibility for all the
liabilities and debts incurs in the business.
Dr. Tech 24/7 is a repair and cleaning services that is available on site and in-
Home Service. We also offer to our valued customers an installation of different type of
Air-conditioning. This company aims to help those people who doesn’t have knowledge
on how to repair and clean their home appliances particularly those appliances that have
machines on it. As a company we’re targeting both small and big market, like Residential
Houses, Apartments, Stores, Condominium, Malls, and etc. Dr. Tech 24/7 aims to provide
better services in affordable amount of pay.

IV. DESCRIPTION OF THE SERVICE

As a company aiming the bigger and higher standard of services, our business
offers 24-hour service, day and night we are ready to serve our customers. It is the reason
why our business different to the other competitors, we can serve 24/7, and we can do
this all day.
We also make home services to our clients. What makes our business successful?
Our shop can be successful because we offer a home service that are more convenient
for the customers because they will not go to our store anymore, we are the one that will
be going to their house and if the work can be easily done it is possible that the service
will be done in their own home while they are watching. Our team can also fix almost
every kind of appliances at home, specifically air-condition, refrigerator, washing
machine, television, electric fan, rice cooker, stove, water purifier, vacuum, oven, and etc.
As long as we can fix it, we will make it. We also have hotline numbers for more questions
and no-contact conversations. Our staff are all knowledgeable and skillful about their job.
The price of our service depends on the work that will be accomplish. We guarantee our
customer the best service at a very fair price. The price will be set before making the
service. And the payment will be given after the customer is satisfied for our solution in
their problems.

V. MARKETING ASPECT
Marketing Objectives
The objectives of the company is to provide installation, repair and cleaning
maintenance for different machineries at your home.
Marketing Strategies
The first marketing strategy that we make is that our location is where people
passes by every day. The second plan is to make a social account about our business.
Everything will be posted online so that customers can easily access our shop and they
will know instantly what services we are offering. And lastly, if we reach the peak of our
business we need more staff to work efficiently, we will decide to make a collaboration
with small businesses that are related to us.
Definition of the Market
Our business is a technical services wherein we provide installation, repair and
cleaning maintenance for every people that is using different machineries in their home.
Everyone is welcome to visit the store or contact us every time they will encounter
problems in their machines. We have a wide range of services about machines and also
have a knowledgeable and skillful workers that are every time ready to give service. The
first month is a struggle but the following months will be better because we have a great
service team.

Determination of the Market Share

2 out of 3 people will still choose to consult and go in our shop for their machineries.
66.6% chance of appliances owners will turn over their machines into us, expert, because
they know that we have the skills and knowledge to repair or has a solution to their
problem. We can’t determine the number of times that the customer will consult to as
again about their machineries because we will make the best solution out of their
appliances. But we will contact them a week after the service if they are experiencing
problem again in the machine for their assurance. The potential annual purchase of our
shop might be PHP 1,536,000. This potential annual purchase has a 60% to 80% chance
to achieve.

Determining the firms Market Share

Number of Prospects 1000
Frequency of Purchase 20 times
Total number of purchases per year 1440
Average payment per year PHP 2000
Projected total industry sales per year PHP 96,000
Percentage the firm can attain 50%
THE FIRMS MARKET SHARE PHP 48,000
Position Strategy
Our shop offers a home service that are less hassle for the customers because
they will not go to our store anymore, we are the one that will be going to their house. If
the problem can be solved easily it is possible that the work might be finish in their place.
Our staff can repair almost every kind of appliances at home, specifically air-condition,
refrigerator, washing machine, television, electric fan, rice cooker, stove, water purifier,
vacuum, oven, and etc. We have a solution into every problem in this field. Our workers
are all knowledgeable and skillful about their job. The price of our service depends on the
work that will be done. We guarantee our customer the best service at a very fair price.
The price will be set before making the service. And the payment will be given after the
customer is satisfied for our solution in their problems. We will give them 3 months
warranty for our service on behalf of their assurance.
As a company aiming the bigger and higher standard of services, Mr. Tech 24/7
offers 24-hour service, day and night we are ready to serve our customers. It is the reason
why our business different to the other competitors, we can serve our customers 24 hours
a day.

Pricing Strategy
Dr. Tech 24/7 will provide services that the general public can afford. Cleaning,
installation, and Repair are among of Dr. Tech 24/7 main services, with prices ranging
from PHP 150 to PHP 2000. We feel that we offer superior service quality and features,
which encourages the usage of a somewhat higher price. This price plan assists us in
gaining a high market share for a new service.

Distribution strategy
Dr. Tech 24/7 will be introduced in the Philippines, but it will be introduced
throughout Asia inside the Eight-year sell to the national market. We will limit our potential
if we restrict our distribution to certain geographical markets, given our current robust
distribution channels that encompass 50% of service sales countrywide. We'll employ the
standard markups from distributors.
Promotion Strategy
A total of Three new employees will be hired to help with the development of new
services. A trainer will be employed to train the new service's employees. Dr. Tech 24/7
would fund the company's advertising. We'd promote on the Internet and on the radio,
which would generate the most interest. Dr. Tech 24/7 would use a sales promotion
"punch card" in which customers who purchase our service would receive a free service
on their fourth purchase.
VI. ANALYSIS OF COMPETITION

SWOT Analysis is a valuable system for comprehension your Strength and

Weaknesses, and for recognizing both the Opportunities open to you and the Threats you
confront.

Dr. Tech 24/7 is preparing a written evaluation of our competitors that allow us to
compare their performance to our performance. Our managers or Heads of the different
departments analyzed the competitive landscape that will help us to identify what are the
advantages and disadvantages of our business to the other competitors.

This analysis will give the company an idea to know how to adapt the strategy to
counter their strong points and take advantage their weak points.

Dr. Tech 24/7 will learn how to conduct a competitive analysis: understand market
trends, identify our competitors, evaluate opportunities, analyze threats to our business,
and positioning strategy accordingly. Just to prevent competitors to exploiting the firm’s
market. And also Dr. Tech 24/7 will do a research that can help us to identify the quickest
path forward, unearth overlooked gaps and opportunities, and orient our business in the
marketplace.

Why Dr. Tech 24/7 conducting competitive analysis? As a competitor too, we likely
heard the saying “Keep your friends close, but keep your enemies even closer”. “Study
the enemy.” Studying the ‘enemy’ can help to understand the battlefield. It can help to
identify where the “enemies” are and how they’re approaching the business. It can help
to discover strategic areas where our business can position for a win.

(https://jrf.carciumakllisre.pw/business-plan-competitive-analysis.html)
VII. OPERATION AND MANAGEMENT

Organizational Structure
We will use the functional type of organizational structure. Each department is a
function common to the entire organization with its own chain of command. A functional
organizational structure is a structure that consists of activities such as coordination,
supervision and task allocation. The organizational structure determines how the
organization performs or operates. The term organizational structure refers to how the
people in an organization are grouped and to whom they report. One traditional way of
organizing people is by function. Some common functions within an organization include
production, marketing, human resources, and accounting.
The employees need to report to all directors as well as the manager. For instance,
an employee in the marketing department is called by the Commercial and Marketing
Manager/Head to handle a matter. The Head of Administration and Support Services can
do the same by calling the same employee. Everything depends on the relationship
between managers to aid the internal communication:
Edmel Bonaobra as Head of Finance
John Gualbert Dionela as Head of Administration and Support Services
Louell Jay Bascao as Head of Operation
Chris Allen Dagsil as Head of Safety and Environment
Joshua Dava Castro as Head of Commercial and Marketing

Piolo Pascual as staff in Operation Department

James Reid as staff in Finance Department
Alden Richards as staff in the Marketing Department
Just like the example above, all managers can do the same by calling the same
employee. It helps to avoid excessive specialization and centralization tasks in the area.
This organizing of specialization leads to operational efficiency where employees become
specialists within their own realm of expertise.
 CEO / PRESIDENT

Edmel Bonaobra John Gualbert Dionela Louell Jay Bascao Chris Allen Dagsil Joshua Dava Castro
Head of Finance Head of Administration Head of Operation Head of Safety and Head of Commercial
and Support Services
Environment and Marketing

James Reid Piolo Pascual Alden Richards

STAFF STAFF
STAFF STAFF STAFF

STAFF STAFF
STAFF STAFF STAFF

STAFF STAFF
STAFF STAFF STAFF
Operating Expenses:

RENT -------------- 7,000

SALARIES -------- 20,000
SUPPLIES -------- 15,000
ADVERTISING -----2,000
UTILITY BILLS ------ 10,000
Transportation Expense for home service client --- 10,000

TOTAL OPERATING EXPENSES: P64,000

RENT P7,000

SALARIES P20,000

SUPPLIES P15,000

ADVERTISING P2,000

UTILITY BILLS P10,000

Transportation Expense for home P10,000

service client

TOTAL OPERATING EXPENSES P64,000

All of the operating expenses are expressed in the amount of peso that is monthly
basis. Included here are all the costs that have been used up as part of the business
operating activities. It is needed for the computation of income statement to get the net
profit for the year ended where the business started.
Capital Requirements

CALCULATION OF START-UP COSTS

Start-Up Expenses Legal P36,000 Start-Up Assets Cash P450,000

Logo, etc P2,500
Startup Inventory P250,000
Promotional Materials P3,000
Insurance P7,800 Long-term Assets P1,500,000
Repair Tools P10,000
Supplies and Spare Parts P10,000 Other Current Assets P150,000
Marketing Costs P20,000
Others P2,000 TOTAL ASSETS P2,350,000
TOTAL START-UP EXPENSES P91,300

TOTAL REQUIREMENTS P2,441,300

Start-Up Funding Liabilities: Accounts P822,500

Payable
Notes Payable P100,000
Long-term Liabilities P920,000
TOTAL LIABILITIES P1,842,500

Capital: Owner P1,250,000

Investors P0

TOTAL CAPITAL P1,250,000

 ON-GOING OPERATING COSTS P 44,000
MONTHLY OWNER’S NET WORTH P 507,500
Total Assets – Total Liabilities 2,350,000 – 1,842,500 = P507,500

Total P 507,500

Capital Requirements
= Start-up costs + Ongoing operating costs – Owner’s Net Worth

2,441, 300 + 44,000 – 507,500

TOTAL CAPITAL REQUIREMENTS P 1,978,000
VIII. FINANCIAL DATA

MR. TECH 24/7

STATEMENT OF FINANCIAL POSITION
December 31, 2021
ASSETS
Current Assets:
Cash P 80,000
Trade and other receivables. P 74,550
Prepaid Expenses (Supplies & Prepaid Rent) P 5,200
TOTAL: P 159, 750
Non-Current Assets :
Tools and Equipment P 165,250
TOTAL ASSETS: P 325,000
LIABILITIES AND OWNER’S EQUITY
Current Liabilities:
Accounts Payable. P 26,000
Notes Payable P 50,000
Taxes Payable P 1,500
TOTAL: P 77,500
Owner’s Equity:
Mr. Tech, Capital P 247,500
TOTAL LIABILITIES & OWNER’S EQUITY: P 325,000
 MR. TECH 24/7
INCOME STATEMENT
For the year ended December 31, 2021
Revenue:
Repair Income P 280,000
Other Income P 15,450
Expenses:
Salaries Expense P 45,000
Depreciation Expense P 9,750
Other Operating Expenses P 64,000 ( 118,750)
P 176, 700
MR. TECH 24/7
STATEMENT OF CASH FLOWS
For the year ended December 31, 2021
Cash flows from operating activities:
Collections from customers P 196,000
Collections from referrals made P 15,000
Payment for Rent (7,000)
Payment for Utilities (10,000)
Payment for Salaries (20,000)
Payment for Supplies (600)
Payment for Interest Expense (250)
Net cash inflows from operating activities P 173,150
Cash flows from investing activities:
Purchase of equipment and tools
Net cash outflows from investing activities (P 165,250)
Cash flows from financing activities:
Cash Investment of Mr. Tech P 32,850
Cash withdrawals made by Mr. Tech (7,000)
Net cash provided by financing activities P 25,850
Increase in Cash P 30,000
Cash balance at the beginning P 80,000
Cash at the end of the year P110,00
IX. SUPPORTING DOCUMENTS

Service Agreement
This Services Agreement (this “Agreement”) is entered into as of the day of August 23,
2021, by and among/between:

Service Provider(s): Dr. Tech 24/7, located at Gonzalo Puyat St. Quiapo, Manila, 1001
Metro Manila (collectively “Service Provider”) and

Clint(s): Hotel, Condo, and House Service, located at Gonzalo Puyat St. Quiapo, Manila,
1001 Metro Manila (collectively “Client”).

Each Service Provider and Client may be referred to in this Agreement individually as a
“Party” and collectively as the “Parties.”

1. Services. Service Provider agrees to provide and Client agrees to purchase the
following services for the specific projects described below:

Number
Price per
Description of Services of
Project
Projects

Cleaning 4 PHP 300

Installing 3 PHP 700

Repairing 5 PHP 500

2. Purchase Price. Client will pay to Service Provider and for all obligations specified in
this Agreement, if any, as the full and complete purchase price, the sum of PHP 5800

Unless otherwise stated, (Check one) ☐ Service Provider ☐ Client shall be

responsible for all taxes in connection with the purchase of Services in this Agreement.

3. Payment. Payment for the Services will be by: (Check on)

☐ Cash

☐ Personal check

☐ Cashier’s check
☐ Money order

☐ Credit or debit card

☐ Wire transfer
☒ Other:___________
according to the following schedule: (Check all that apply)

☐ Amount previously paid by the Buyer. PHP previously paid by Client.

☐ Down payment. PHP upon the execution of this Agreement.

☐ Payment for the Services. Full payment: PHP upon the completion of the
services. OR Installments: PHP on [Due day of installment payments], until the
purchase price has been paid in full.

4. Right of Inspection. (Check one)

☐ There is NO right to inspection.

☐ Client shall be allowed to examine the final products once received and shall do
so within 2 days after the receipt of the final products. In the event that Client discovers
any problems, shortcomings, errors, or other nonconformance of the services, Client
shall notify Service Provider within 2 days after completion of the services or discovery
of the problems, whichever is sooner. Failure to notify Service Provider by such date
shall constitute an acceptance of Services. In the event the services do not meet the
standards of this contract, Client may at its option: (Check all that apply)

☐ Request one revision of the product provided

☐ Terminate the contract following payment for 50% of the services

The above shall be the sole remedies of Client and only obligations of Service
Provider with respect to any Services.

5. Security Interest. Client hereby grants to Service Provider a security interest in

any final products resulting from said services, until Client has paid Service Provider
in full. Client shall sign and deliver any document needed to perfect the security
interest that Service Provider reasonably requests.

6. Force Majeure. Service Provider shall not be responsible for any claims or
damages resulting from any delays in performance or for non-performance due to
unforeseen circumstances or causes beyond Service Provider's reasonable control.
7. Limitation of Liability. Service Provider will not be liable for any indirect, special,
consequential, or punitive damages (including lost profits) arising out of or relating to
this Agreement or the transactions it contemplates (whether for breach of contract,
tort, negligence, or other form of action) and irrespective of whether Service Provider
has been advised of the possibility of any such damage. In no event will Service
Provider's liability exceed the price paid by Buyer for the Services giving rise to the
claim or cause of action.

8. Assignment. (Check one)

☐ SERVICE PROVIDER needs permission to assign to a third party. Seller may not
assign any of its rights under this Agreement or delegate any performance under this
Agreement, except with the prior written consent of the Client. Any purported
assignment of rights or delegation of performance in violation of this section is void.

☐ CLIENT needs permission to assign to a third party. Client may not assign any of
its rights under this Agreement or delegate any performance under this Agreement,
except with the prior written consent of Service Provider. Any purported assignment
of rights or delegation of performance in violation of this section is void.

☐ BOTH Service Provider and Client need permission to assign to a third party.
Either Party may not assign any of its rights under this Agreement or delegate any
performance under this Agreement, except with the prior written consent of the other
Party. Any purported assignment of rights or delegation of performance in violation of
this section is void.

☐ Either Party does NOT need permission to assign its rights to a third party.

9. Amendments. No amendment to this Agreement will be effective unless it is in

writing and signed by both Parties.

10. Governing Law. The terms of this Agreement shall be governed by and construed
in accordance with the laws of the State of Philippines, not including its conflicts of law
provisions.
11. Disputes. Any dispute arising from this Agreement shall be resolved through:
(Check one)

☐ Court litigation. Disputes shall be resolved in the courts of the State of Philippines.
(Check if applicable)
☐ If either Party brings legal action to enforce its rights under this Agreement,
the prevailing party will be entitled to recover from the other Party its expenses
(including reasonable attorneys’ fees and costs) incurred in connection with the
action and any appeal.

☐ Binding arbitration. Binding arbitration shall be conducted in accordance with the

rules of the American Arbitration Association.

☐ Mediation.

☐ Mediation, then binding arbitration. If the dispute cannot be resolved through

mediation, then the dispute will be resolved through binding arbitration conducted in
accordance with the rules of the American Arbitration Association.

12. Entire Agreement. This Agreement contains the entire understanding between
the Parties and supersedes and cancels all prior agreements of the Parties, whether
oral or written, with respect to such subject matter.

13. Notices. Any notice or other communication given or made to any Party under this
Agreement shall be in writing and delivered by hand, sent by overnight courier service
or sent by certified or registered mail, return receipt requested, to the address stated
above or to another address as that Party may subsequently designate by notice and
shall be deemed given on the date of delivery.

14. Waiver. No Party shall be deemed to have waived any provision of this Agreement
or the exercise of any rights held under this Agreement unless such waiver is made
expressly and in writing. Waiver by any Party of a breach or violation of any provision
of this Agreement shall not constitute a waiver of any other subsequent breach or
violation.
15. Miscellaneous. This Agreement shall be binding upon and inure to the benefit of
the Parties and their respective heirs, successors and assigns. The provisions of this
Agreement are severable. If any provision is held to be invalid or unenforceable, it
shall not affect the validity or enforceability of any other provision. The section
headings herein are for reference purposes only and shall not otherwise affect the
meaning, construction or interpretation of any provision of this Agreement.This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together, shall constitute one and the same
document.

RIGHT TO CANCEL (Check one)

☐ YOU, THE CLIENT, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR
TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS
TRANSACTION. SEE THE ATTACHED CANCELLATION FORM FOR AN
EXPLANATION OF THIS RIGHT.

☐ THE CLIENT DOES NOT HAVE THE STATUTORY RIGHT TO CANCEL THIS
TRANSACTION.

IN WITNESS WHEREOF, the Parties have executed this agreement as of the date
first written above.
 Client Signature Client Full Name

Client Signature Client Full Name

Service Provider Signature Service Provider Full Name

Service Provider Signature Service Provider Full Name

Layout or Blueprint of location.

Address: Gonzalo Puyat St. Quiapo, Manila, 1001 Metro Manila

(Star representing our store location.)

Permits

BIR

Mr. Tech 24/7

009 - 226 - 985 - 132
Barangay Clearance
DTI Permit

Business Plate