3.

10 Pre-operation Activities and Costs

MedCeb Express is a new business in the market, therefore pre-operation activities are necessary
in order to begin its operations.

 Capital Acquisition
It is assumed that the proponents will have enough capital to start and fund the business.
For proper allocation of capita, a merged account will be set-up, with a third party accountant
hired to ensure that the capita is safe and secured in the bank.

 Mobile Application Development

The development of the mobile application is one of the most cost-extensive part of the business
process since it is the considered as the backbone of the operation, without which the operations of the
company cannot proceed. The mobile application development will take a 2-4 months, with an estimated
cost of Php 926,195, as seen in Table ___.

Table 1 Estimated Cost of Development for the Mobile Application

Cost
Features Description (Php)
Access Control
On premises Users can register via email/username 15654
By Social Users can register via their social media 15654
OTP Users can register via their mobile number 15654
App Design
Rich Best design with rich appearance and transition effect 52180
Features
User profile Gives users option of editing user profile 20872
Rating/Review App ratings/review system is enabled 18263
Advanced Features
Data Sync Allows users to externally sync data to the app 78270
APNS/GCM Apple Push Notification/Google Cloud Messaging is enabled 31308
Geolocation The appcan access the user's GPS location 26090
Booking Calendar Users can book a meeting/delivery from within the app 52180
App Interaction
Messaging/Chat Users can chat or message within the app 52180
Local Notification Shows local notifications to users 36526
Payment/Earnings
In-app purchase The app is free for download with purchases within the app 41744
Admin Panel
User data control Integrate user control data option in the app 78270
 Add/Block feature Adding/Blocking feature within the app is enabled 36526
Usage analytics Check app's usage chart, figures, and stats 41744
Crash Report Option of generating on-demand bug 52180
Reporting Generate several types of reports related to the usage of app 78270
External Feature
SMS messaging The app has read and write access to SMS messaging 41744
Connect to third-party
API The app has access to third-party API 78270
Secure data travel The app encrypts data transfer between devices 62616
TOTAL 926195

 Acquisition of Business Permits

Important requirements as mandated by the Philippine Government should be acquired
in order for the business to start and run smoothly. The company needs to obtain a business
license and should be registered with the following agencies before the issuance of the business
permit:
 License – National Telecommunication Commission, Dept. of Transportation &
Communication, (DOTC-NTC) – Permit needed for telecom business
 Securities and Exchange Commission - Registration of corporations and
partnerships
 Philippine Economic Zone Authority - Registration with other Investment
Promotion Agencies for availing of incentives
 Social Security System - Securing an employer's SSS number
 Visayan Electric Company - Securing electric service connection
 Philippine Long Distance Telephone Co. - Securing telephone services and
internet connection

 Renovation of the Facility

The facility will be renovated to create spaces that helps improve the productivity
of the employees. The number of employees that will be hired is also taken in
consideration to maximize the space. The renovation of the facility will take two months
to complete. The project starts on September 1, 2018 and is expected to be done on
October 30, 2018.
Since the space to be renovated only covers 68.12 m2 out of the total area of 85
m2, there will be only two construction workers to be hired as per advice of an
experienced mason, to do the development following the regular working schedule with
5 days a week. The table below shows the computation for the total area of spaces to be
renovated.
 Table 2 Total Area Computation of Each Office Spaces

Departments/Rooms Area (sq.m)

Pantry 8.82
Storage Room 5.22
Conference Room 10.2
Comfort Room 4.6
Reception Area 15.18
H.R and Accounting Department 12.4
I.T Department 11.7
Marketing Office 5.6
TOTAL 68.12

Total Cost for Labor Renovation:

There will be two construction workers: construction carpenter and mason. The
two workers will have different wage per day. The constructor carpenter will have a wage of 500
per day while the mason will have 400 per day. The table below shows the labor construction
cost of each departments/rooms.

Table 3 Labor Construction Cost

Departments/Rooms Area (sq.m) Labor Fee

8.82
Pantry 20,000.00

5.22
Storage Room 4,000.00

10.2
Conference Room 7,000.00

4.6
Comfort Room 2,000.00

15.18
Reception Area 15,000.00

5.6
Marketing Office 6,000.00
H.R and Accounting
12.4
Department 9,000.00

11.7
I.T Department 8,000.00

73.72
TOTAL 71,000.00
 Obtaining Utilities
All the utilities that will be used such as electricity and water, will be installed before the
launching of the project. The time allotted for the utilities to be ready will include the application
from different utility providers. The activity will take up to two to three weeks to be completed.

 Hiring of Employees
Finding good employees fit for the job by placing newspaper advertisement,
announcements for job interview, job application and screening. All potential applicants will then
be narrowed down for the final screening and interview. This activity takes up to 3 to 5 weeks to
be done.
 Early Promotion

To reach as much customers as possible, these promotional activities are included before
the official launch of the business. The estimated cost incurred for early promotion is Php 500,000.
The table below shows the breakdown costs of ad budget and ad media.

Table 4 Breakdown Cost of Ad budget and Ad media

Introduction Stage
Item
Sept 2018 -Oct 2018 Nov 2018 -Dec 2018
Ad Budget and Ad Media
Facebook Advertisement 150000 175000
Social Media Personalities 150000 225000
E-Billboard 35000
Newspaper 60000 70000
TOTAL 395000 470000

 Official Launching
After all pre-operational activities and requirements are completed, MedCeb Express is
now all set for the official launching in the industry by January 2019. This time, the
company is ready to provide quality service to the customers. The table below shows
the timeline of each pre operational activities prior to official launching of the app.
 Table 5 Timeline

July August September October November December Jan

ACTIVITY
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Capital Acquisition
Mobile Application
Development
Acquisition of Business
Permit
Renovation of the Facility
Obtaining Utilities
Hiring
Early Promotion
Official Launching