Computer Software Business Plan

Computer Software Business
Plan
http://www.bplans.com/computer_software_business_plan/company_summary_fc.php
Executive Summary
FoodFun Lifeskills Instructional Software (FoodFun LIS) is a start-up organization whose
vision is to create the finest education/entertainment software for non-reading
individuals with developmental disabilities. The software product has been designed and
created by a Ph.D. veteran of the special education industry, to meet the needs of this
special customer segment. The software will be constructive by teaching certain
lifeskills and will be fun to use, encouraging the student to use it as often as possible.
FoodFun LIS was formed as an Illinois L.L.C. by founder and owner is Sue
Altamirankow, Ph.D. and will be based in Chicago.
The Market
FoodFun has identified four distinct market segments that will be interested in the
software product. These segments are the most likely consumers of the software. The
segments are as follows:
Centers for Independent Living- These centers exist to help train individuals
with developmental disabilities to live on their own. The curriculum is often
based around four primary lifeskills that are necessary for the individuals to have
in order to successfully live independently.
School Districts- All states are required to provide education for students of
special needs until they reach the age of 21. The school districts are often the
educational providers until the students are 18 and will be interested in
FoodFun's software as they help the students obtain fundamental lifeskills.
Proactive Parents- Parents who are taking an active role in the education of
their children will be looking for aids that they can use at home to help with their
child's learning progress.
Agencies- Many states have formed agencies that act as brokers to connect
service providers with individuals. The agencies have generally been formed as a
result of a settlement or payout from a lawsuit (including class action).
Parents are expected to purchase only one copy of the program, while the other
segments will generally purchase multiple copies/site licenses and are likely to purchase
upgrades to subsequent versions.
The Product
Grocery shopping and socialization/leisure are two of the main lifeskills which
individuals with developmental disabilities are taught. FoodFun has developed a unique
software product that is an effective teaching aid for these important skills. The first
component of the software is grocery shopping. This takes the form of a digital
cookbook of recipes. Each recipe is represented by a picture. When the student chooses
the picture they desire, they then see a list of pictures which are the ingredients and
utensils needed to make the dish. The student is then able to print out the pictures and
take the pictures to the grocery store, allowing them to shop independently.
The second component is the socialization/leisure time module that provides the user
with a choice of many different social events/parties for which they can prepare food.
This module allows students to plan for a party (and we know EVERYONE loves to plan
for parties) and incorporates music linked to each type of social event to provide
entertainment for the user. Many/most individuals with developmental disabilities will
receive shear joy when they click on a social even and hear the music.
Competitive Edge
There are several companies on the market selling educational products for this target
segment. FoodFun LIS will leverage their competitive edge by incorporating
entertainment into their software product, a means of creating interest and joy while
using the software. This interest and joy will increase the amount of time that the
students use the software, thereby increasing the effectiveness of the program.
FoodFun is convinced that when students enjoy what they are doing they are likely to
use the product instead of having to be forced to use it.
Management
FoodFun has been founded and will be led by Dr. Sue Altamirankow. Sue has a Masters
and Ph.D. in special education and has been teaching in the university setting for eight
years. Her published thesis "Implications in Lifeskill Training for Individuals with
Autism" was a ground-breaking paper that carefully studied all aspects of lifeskills. This
was the foundation of her idea to start a software company. She realized that she could
develop a study aid that would be fun and effective. It would be fun because the
students would enjoy using it, it would be effective because it taught important
necessary lifeskills to individuals with developmental disabilities who begin to live more
independently. FoodFun has forecasted revenues of $400,397 and $490,000 for years
two and three.
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1.1 Mission
To develop fun-to-use educational software for non-readers with developmental
disabilities. Our software will provide lifeskills training that empowers the individuals
and make them more independent. We exist to make products that the market
demands and have a positive impact on society.
1.2 Keys to Success
Develop educational software that is constructive and fun. If it is not fun, it likely
will not be used.
Implement a strong marketing campaign to develop awareness of the software
and its benefits within all of the training centers, school districts, brokerages,
and among parents.
Design strict financial controls for the organization.
1.3 Objectives
Increase sales by triple for the first two years.

Achieve 20% market penetration by year four.
Assist more than 10,000 different individuals with development disabilities.
Company Summary
FoodFun Lifeskills Instructional Software is a start-up organization, founded as an
Illinois based L.L.C. The company is owned by its founder Sue Altamirankow.
2.1 Company Ownership

The company was founded and is owned by Sue Altamirankow. Sue is a respected,
published, former educator of special education with an emphasis on autism. Sue will
leverage her extensive knowledge and industry contacts to make FoodFun LIS a
success.
2.2 Start-up Summary

FoodFun LIS is a start-up organization. The following assets and professional services
will be needed for the formation and start of operations.
Legal services for company formation.

Accounting services to set up the accounting shell of the company QuickBooks
Pro software.
Computer programmers (3) to rapidly develop the software. An individual
programmer could complete the coding of this product however, FoodFun is
interested in launching the product fast therefore they will employ multiple
programmers to speed the process up.
Eight computer workstations, including one server. Seven of the stations will
have Microsoft Office, one of them will have QuickBooks Pro. Three networked
laser printers.
A broadband Internet connection.
Office cubicle furniture for seven employees.
Seven extension telephone system.
Copier and fax machine.
Lunch room furniture and appliances including a refrigerator and microwave.
Shipping materials including boxes, scales, etc.
Promotional materials.
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business plan.
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
Capital
Planned Investment
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital
Total Capital and Liabilities
Total Funding
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Start-up
Requirements
Start-up Expenses
Legal
Accounting
Brochures
Consultants
Insurance
Rent
Research and Development
Expensed Equipment
Other
Total Start-up Expenses
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
Total Requirements
Products
FoodFun LIS' flagship product is a software package designed for non-readers,
generally individuals with autism and developmental disabilities, and other people with
developmental disabilities. Most transition/lifeskills training programs focus on four key
areas of life: food/cooking/nutrition, money management, health/safety, and social
interaction/leisure. FoodFun's product focuses on food/cooking as well as social
interaction, two of the primary lifeskills needed for independent living.
Non-readers rely on visual images as a form of communication, a replacement for the
more typical text that readers are able to understand. The first component of the
software is a digital cookbook of recipes. The software displays pictures of the different
ingredients needed for the recipe. The pictures are then printed allowing the individual
to take the picture to the grocery store facilitating the purchasing of the groceries. On
each picture is also text explaining what the item is. Within each recipe is the ability to
print the different utensils and pots needed to complete the item. While the recipes are
meant to be cooked with support, the main goal is to allow the individual to have
independent shopping.
The user first sees a bunch of different pictures of food dishes with names below the
pictures. The user then chooses a dish and is brought to a screen where the ingredients
are listed by picture and also the different utensils/pots/pans needed are listed. Once
the user chooses what they want to prepare they can then print up a list of the different
ingredients. The list is picture based (with text) and they are able to take the picture
list to the grocery to assist them in purchasing the ingredients independently.
The second component of the software is the social occasion/party planning module.
This is the fun part (in addition to the fun food pictures). Everyone likes to plan for
party. The screen opens with pictures showing different occassions such as a picnic in
the park, friends and movie night, birthday party, holiday event, pool party, etc. When
the user clicks on the chosen image they hear 30 seconds of background music in a
theme matched to the event that they have chosen. Once they have chosen the event
the software takes them through the different steps of food preparation for the event.
These food preparation steps are the previously explained food component that is now
organized not by dish but by event. If a picnic in a park is chosen there will be several
dishes to be made, all of them cold as there is no way of heating the dishes while you
are in the park. All users of this module will be entertained by the background sounds
as well as the excitement of planning for a party.
This component is especially important in the individual's development. Planning

activities are especially important for a population that is so isolated. Without
socialization skills such as parties, the clients end up learning the skills and then sit in
their apartment alone.
Ultimately, FoodFun's software product combines two of the most important
lifeskills/transition training areas, food preparation and social leisure. The food
component allows the non-reading individuals with developmental disabilities to become
more independent in their daily activities. The social planning module leverages the
existing food module and assists the users in panning for social occassions centered
around food. This module is designed to be entertaining to capture the interest and
imagination of the user, drawing them into the software, creating the desire to use the
product.
The software product will be developed by three contract programmers. The software
will be upgraded yearly.
Market Analysis Summary

The market for lifeskills training software can be segmented into four groups. The first
is centers for independent living, the second is school districts, the third is proactive
parents, and the last is agencies charged with special education administration. Each of
the four segments is distinct and will be communicated with in different ways. These
four segments have been chosen because they are the main purchasers of products for
individuals with developmental disabilities.
The software industry for individuals with developmental disabilities has just begun to
grow. Only within the last few years has there been a significant increase in the number
of computers found in classrooms using specialized software. Competing with the
software companies are products that have printed pictures on them, typically
laminated cards. While these cards are helpful, they are less interactive.
4.1 Market Segmentation

FoodFun LIS has identified four distinct market segments for their products:
Centers for Independent Living- These are typically not-for-profit entities

that assist individuals with developmental disabilities. The centers help clients
with transition skills, making them more independent. These centers offer a wide
range of lifeskills training for the individuals.
School Districts- All students are guaranteed an education therefore the school
districts must provide the appropriate education until the individual is 21 years
old. School districts are consumers of these products in pursuit of their goal of
providing the students with an appropriate education.
Proactive Parents- These are parents of individuals with developmental
disabilities who are taking an active role in their child's education/lifeskill
training. Reinforcing these skills as much as possible is useful, therefore there
are many parents that will purchase the software for home use.
Agencies- Many states, often as a reaction to a lawsuits (individual and class
actions) have set up agencies or brokerages whose purpose is to dispense
money from the state to the service providers assisting the individuals in need.
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Market Analysis
Year 1
Potential Customers
Growth
Centers for Independent Living
6%
3,245
3,440
School Districts
5%
14,856
15,599
Proactive Parents
8%
824,555
890,519
Agencies
6%
5,354
5,675
Total
7.93%
848,010
915,233

4.2 Target Market Segment Strategy

These four target segments were chosen because they have the greatest likelihood of
purchasing FoodFun's products.
Centers for Independent Living- The centers typically buy aids to assist in the
teaching of lifeskills and other transition skills to their clients.
School Districts- In order to assist the school districts in teaching the students
(a federal requirement) the districts will use instructional tools and
aids. Instructional tools are particularly useful as the ratio of students
to teachers is often high and these aids help the school manage the students
better.
Proactive Parents- Parents that are interested in helping with their child's
education will seek useful devices that they can use at home.
Agencies- The agencies are often given sums of money and must spend it on
the students' education/training. The agencies are always looking for products
that will be useful in providing students with necessary skills.
4.3 Industry Analysis

There are several companies making products that specifically address learning needs
for individuals with developmental disabilities. While some of the companies' products
are also suitable for traditional students, most companies in this industry specialize on
products for developmental disabilities.
Within the industry there are a wide range of products. There are many different
product groups that target specific types of disabilities. There are also different
products targeted on a specific disability. Some might concentrate on spelling, reading
comprehension, counting, sentence construction, etc. Lastly, within each specific
category products take different forms, some may be CDs, software, cards, audio
tapes, etc.
4.3.1 Competition and Buying Patterns

There are three main companies that are direct competitors to FoodFun Lifeskills
Instructional Software, focusing on individuals with developmental disabilities or
individuals with autism (75% of individuals with autism are developmentally disabled
and non-readers).
WordWise- This company makes several products including picture-based

language programs, laminated picture cards, and community success CDs. While
their software has a grocery shopping module, it is very simple and limited in the
choices of grocery items.
Edbydesign.com- This company has several products including: sentence
maker, match maker, counting programs, and sorting programs. These are all
non-interactive CD-based programs.
Autismcoach.com- This company makes software that is designed to
strengthen core cognitive skills such as short-term memory, mental processing
speed, multi-tasking and auditory processing. This is primarily for a younger
customer age of 10-17.
Strategy and Implementation Summary

FoodFun LIS will leverage their competitive edge of combining education and
entertainment within their software product to help them quickly gain market share. All
of the competitors' software concentrate on skill development. While this is useful, it
does not always motivate students. FoodFun has added entertaining elements into their
software, encouraging the students to use the software and have fun while they learn.
FoodFun's marketing strategy will be to raise visibility of the software product among
the decision makers who are in charge of purchasing aids and instructional tools. The
campaign will be targeted to reach these people/organizations so that they are aware of
the options they have in developing the skills of individuals with developmental
disabilities. Lastly, the sales strategy will seek to convince the prospective
customers that there can be significant gains in learning through FoodFun's carefully
designed software.
A table with sales forecast information and charts displaying monthly and yearly sales
projections follows.
5.1 Competitive Edge

FoodFun LIS' competitive edge is their clever incorporation of entertaining fun within
the education software. Currently, there are several different vendors that are
marketing software for this niche, however, the software is strictly educational. While
this is well and good for developing skills, the students are not always that eager to use
the software. FoodFun has adopted the philosophy that if they can make the
education/training fun, the students will use it far more often, having fun while they are
learning valuable skills.
Two different studies (not developmental disability specific studies, but the results
are still applicable) have shown that if students are enjoying themselves, they will
spend 2.4 times as long using the software that they perceive as fun. What this means
is that the student is spending 2.4 times as long developing necessary skills when they
are enjoying the software. FoodFun has incorporated entertainment aspects to their
software to utilize this phenomenon.
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5.2 Marketing Strategy

FoodFun's marketing strategy reflects their perception of the industry: that most of the
companies operating today are operated by educators; that they make nice products;
but not many people know about the products, and overall awareness is poor. The
reality is that so many prospective customers in the United States are unaware of the
different available products. FoodFun will employ an aggressive marketing strategy to
raise awareness of their products among customers who are in need of these products,
and thereby increasing software purchases. FoodFun will be advertising heavily in
various industry journals and magazines as a proven method of reaching the target
audience. The ads will generate awareness of FoodFun LIS and will lead the customers
to FoodFun's website where they can demo the software. This strategy is based on the
philosophy that you can have a great product, but if no one knows about it you are not
going to be successful.
5.3 Sales Strategy

FoodFun will use an aggressive sales campaign that will rely on conference participation
as well as target cold calling. There are numerous industry conferences throughout the
country that are specifically for educators. The conferences are the places where people
get together and share strategies that work with their colleagues in different
departments and different states. While the conferences are not typically packed with
vendors, FoodFun LIS will be present since the conferences are a captive assortment of
the right people the educators that are in the trenches working with the special
students. The conferences will be an excellent networking opportunity and should
develop significant sales.
The second prong of the sales strategy will be a campaign aimed at contacting key
decision makers and introducing them to FoodFun LIS and their products. Autism
consultants for school districts comprise one group that will be targeted. The districts
often take the consultants' recommendations when making purchasing decisions for
special education. Research will be done to determine states' education districts
structures to determine if it is the ESD (educational service district) that is providing
the services or if the money has been given to agencies to disperse to various service
providers. This information will be valuable in determining who is the proper consumer
for the special software. These personal contacts will help generate significant sales.
5.3.1 Sales Forecast

The following table and charts present sales forecasts in a monthly format as well as
yearly projections. Forecasts have been conservatively estimated to increase the
likelihood of attainment. Sales has been broken down by customer group.
A fulfillment house will be contracted to produce, package, and ship the hard copy
software product to purchasers. Download of the software from the FoodFun LIS
website will be available. This will drastically reduce cost of goods if purchasers use the
download only purchase option.
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Sales Forecast
Sales
$23,439
School Districts
$43,405
Proactive Parents
$9,983
Agencies
$19,966
Total Sales
$96,793
Direct Cost of Sales
$1,641
School Districts
$3,038
Proactive Parents
$699
Agencies
$1,398
Subtotal Direct Cost of Sales
$6,776

5.4 Milestones
FoodFun LIS has several milestones, presented in the following table and chart, which
will be instrumental in the success of the organization.
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Milestones
Milestone
Start Date
Business plan completion
1/1/2004
2/15/2004
Beta version completed
2/1/2004
4/15/2004
Organizational hiring complete
3/15/2004
5/1/2004
Public release of software
4/15/2004
5/15/2004
Profitability
5/15/2004
5/30/2005
Totals
Web Plan Summary

FoodFun will develop a website that will be used as both a marketing and sales tool. On
the site interested parties can receive more information regarding the company and the
current product list. Once the beta version of the software is ready interested
customers can download a trial version of the software for their evaluation. The website
will also provide people with company contact information to allow them to ask any
questions that they may have.
Online sales will be contracted to one of the third party Internet sales businesses, such
as Yahoo! Shopping. The site will provide customers with a download only purchase
option.
6.1 Website Marketing Strategy

The website will be marketed using simple yet effective means. The first method is
inclusion of the URL address in all promotional activities. This will be especially
important because it will allow all interested parties to view screen shots of the
software and download a trial version of the product. FoodFun LIS recognizes that no
ad will be able to communicate everything, therefore FoodFun will rely on the website
to provide the additional information. The second marketing tool for the website will be
comprehension search engine submission. The submission process will provide FoodFun
will many visitors to the website. This will be accomplished when an interested
party searches on "autism software" or some other set of keywords. The search engine
will then list a number of "hits" that correspond to the search terms.
6.2 Development Requirements

FoodFun will employ one computer science student for the design and development of
the website. Development will occur concurrently with the development of the software.
Management Summary
FoodFun LIS has been founded and will be led by Sue Altamirankow. Sue received her
Bachelors in Education from Northwestern University. After graduation she entered
Northwestern's Masters Program in Special Education with her emphasis on Autism.
Recognizing that she wanted to teach at some point, Sue finished her Masters and
entered the rigorous Ph.D. program. Her thesis, entitled "Implications in Lifeskills
Training for Individuals with Autism" won widespread accolade and was published in the
prestigious Harvard Special Education Journal. Having gotten to know most of the
special education department at Northwestern, she was asked to become a faculty
member on completion of her Ph.D.
Sue spent eight years teaching at Northwestern. While she taught a number of general
special education classes, her passion was lifeskills for individuals with developmental
disabilities, focusing on life transitions. In addition to teaching, Sue served as a
member of the board of several different nonprofit agencies. Her time spent on the
different boards was quite pleasing since it provided her with a bit more direct
experience with the individuals in need. In the school setting most of her interactions
was specifically with graduate and undergraduate students.
Sue began to realize as much as she enjoyed teaching, she felt isolated from the
students that she was trying to help. She recognized that her work as an educator
would in effect benefit the students, but she was looking for a different connection.
Because she had an amazing amount of knowledge about the subject of special
education, Sue began to brainstorm some ideas of starting a business that would serve
individuals with developmental disabilities. While this intrigued Sue, she did not feel she
had the requisite business experience, so she took several business courses to help
develop this new skill set. While taking these course (and teaching at the same time)
Sue began to realize that while there were many different study aids on the market,
they were all strictly educational. Sue believed (and studies would indicate) that if a fun
component was added to the aid, students would use it more often and learn more.
With this information in hand, Sue began to create an idea for some software that was
both educational and entertaining at the same time. This was the beginning of FoodFun
Lifeskills Instructional Software.
7.1 Personnel Plan

FoodFun LIS will require the following employees:
Sue- she will be doing a little of everything from HR to business development to

product development to finance.
Accounting- an accounting clerk will be hired.
Software development- two employees will be in charge writing manuals,
instructions, and product bug updates, and version upgrades.
Marketing Sales- two employees will be hired to generate sales.
Customer Service- two employees will be used to field any questions from
customers or address any concerns/problems regarding orders as well technical
difficulties.
Personnel Plan
Sue
$2
Accounting
$1
Software Documentation
$1
Product Development
$1
Customer Service/ Tech Support
$1
$1
Marketing/ Sales
$2
Marketing/ Sales
$2
Total People
Total Payroll
$1
Financial Plan
The following sections outline important financial information.
8.1 Important Assumptions

The following table details important financial assumptions.
General Assumptions
Plan Month
Current Interest Rate
10.00%
Long-term Interest Rate
10.00%
Tax Rate
30.00%
Other

8.2 Break-even Analysis

The Break-even Analysis is shown below.
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Break-even Analysis
Monthly Revenue Break-even
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
8.3 Projected Profit and Loss

The table and charts illustrate the projected profit and loss.
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Pro Forma Profit and Loss
Sales
$96,793
$6,776
Other Costs of Goods
$0
Total Cost of Sales
$6,776
Gross Margin
$90,018
Gross Margin %
93.00%
Expenses
Payroll
$167,000
Sales and Marketing and Other Expenses
$6,600
Depreciation
$1,800
Rent
$10,450
Utilities
$5,500
Insurance
$5,500
Payroll Taxes
$25,050
Programming
$12,000
Total Operating Expenses
$233,900
Profit Before Interest and Taxes
($143,882)
EBITDA
($142,082)
Interest Expense
$9,134
Taxes Incurred
$0
Net Profit
($153,017)
Net Profit/Sales
-158.09%
8.4 Projected Cash Flow

The following chart and table show projected cash flow.
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Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales
$24,
Cash from Receivables
$46,
Subtotal Cash from Operations
$70,
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$0
New Current Borrowing
$0
New Other Liabilities (interest-free)
$0
New Long-term Liabilities
$0
Sales of Other Current Assets
$0
Sales of Long-term Assets
$0
New Investment Received
$0
Subtotal Cash Received
$70,
Expenditures
Expenditures from Operations
Cash Spending
$167
Bill Payments
$75,
Subtotal Spent on Operations
$242
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
Principal Repayment of Current Borrowing
$0
Other Liabilities Principal Repayment
$0
Long-term Liabilities Principal Repayment
$16,
Purchase Other Current Assets
$0
Purchase Long-term Assets
$0
Dividends
$0
Subtotal Cash Spent
$258
Net Cash Flow
($18
Cash Balance
$25,
8.5 Projected Balance Sheet

The following table presents the projected balance sheet.
Pro Forma Balance Sheet
Assets
Current Assets
Cash
$25,286
Accounts Receivable
$26,487
Inventory
$1,408
$0
Total Current Assets
$53,180
Long-term Assets
Long-term Assets
$9,000
Accumulated Depreciation
$1,800
Total Long-term Assets
$7,200
Total Assets
$60,380
Current Liabilities
Accounts Payable
$7,124
Current Borrowing
$0
Other Current Liabilities
$0
Subtotal Current Liabilities
$7,124
$83,773
Total Liabilities
$90,897
Paid-in Capital
$145,000
Retained Earnings
($22,500)
Earnings
($153,017)
Total Capital
($30,517)
Total Liabilities and Capital
$60,380
Net Worth
($30,517)

8.6 Business Ratios

The following table outlines some of the more important ratios from the Computer
Software industry. The final column, Industry Profile, details specific ratios based on the
industry as it is classified by the Standard Industry Classification (SIC) code,
5045.9903.
Ratio Analysis
Sales Growth
0.00%
Percent of Total Assets
Accounts Receivable
43.87%
Inventory
2.33%
0.00%
88.08%
Long-term Assets
11.92%
Total Assets
100.00%
Current Liabilities
11.80%
138.74%
Total Liabilities
150.54%
Net Worth
-50.54%
Percent of Sales
Sales
100.00%
Gross Margin
93.00%
Selling, General & Administrative Expenses
251.09%
Advertising Expenses
0.00%
-148.65%
Main Ratios
Current
7.46
Quick
7.27
Total Debt to Total Assets
150.54%
Pre-tax Return on Net Worth
501.42%
Pre-tax Return on Assets
-253.42%
Additional Ratios
Net Profit Margin
-158.09%
Return on Equity
0.00%
Activity Ratios
Accounts Receivable Turnover
2.74
Collection Days
54
Inventory Turnover
9.55
Accounts Payable Turnover
11.57
Payment Days
27
Total Asset Turnover
1.60
Debt Ratios
Debt to Net Worth
0.00
Current Liab. to Liab.
0.08
Liquidity Ratios
Net Working Capital
$46,056
Interest Coverage
-15.75
Additional Ratios
Assets to Sales
0.62
Current Debt/Total Assets
12%
Acid Test
3.55
Sales/Net Worth
0.00
Dividend Payout
0.00
Appendix
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Mo
Sales
0%
$0
$0
$0
$0
$540
School Districts
0%
$0
$0
$0
$0
$1,000
Proactive Parents
0%
$0
$0
$0
$0
$230
Agencies
0%
$0
$0
$0
$0
$460
$0
$0
$0
$0
$2,230
Total Sales
Month 1
Month 2
Month 3
Month 4
Mo
$0
$0
$0
$0
$38
School Districts
$0
$0
$0
$0
$70
Proactive Parents
$0
$0
$0
$0
$16
Agencies
$0
$0
$0
$0
$32
Subtotal Direct Cost of Sales
$0
$0
$0
$0
$156

Personnel Plan
Month 1
Month 2
Month 3
Month 4
Sue
0%
$0
$2,000
$2,000
$2,000
$2,00
Accounting
0%
$0
$0
$0
$1,800
$1,80
Software Documentation
0%
$0
$0
$0
$2,200
$2,20
Product Development
0%
$0
$0
$0
$0
$0
0%
$0
$0
$0
$2,200
$2,20
0%
$0
$0
$0
$2,200
$2,20
Marketing/ Sales
0%
$0
$0
$0
$3,000
$3,00
Marketing/ Sales
0%
$0
$0
$0
$3,000
$3,00
Total People
Total Payroll
$0
$2,000
$2,000
$16,400
$16,4
Mon
General Assumptions
Month 1
Month 2
Month 3
Month 4
Plan Month
Current Interest Rate
10.00%
10.00%
10.00%
10.00%
10.00%
Long-term Interest Rate
10.00%
10.00%
10.00%
10.00%
10.00%
Tax Rate
30.00%
30.00%
30.00%
30.00%
30.00%
Other
Pro Forma Profit and Loss
Month 1
Month 2
Month 3
Month 4
Sales
$0
$0
$0
$0
$2,230
$0
$0
$0
$0
$156
Other Costs of Goods
$0
$0
$0
$0
$0
Total Cost of Sales
$0
$0
$0
$0
$156
Gross Margin
$0
$0
$0
$0
$2,074
Gross Margin %
0.00%
0.00%
0.00%
0.00%
93.00%
Payroll
$0
$2,000
$2,000
$16,400
$16,400
Sales and Marketing and Other

Expenses
$0
$600
$600
$600
$600
Depreciation
$150
$150
$150
$150
$150
Rent
$0
$950
$950
$950
$950
Utilities
$0
$500
$500
$500
$500
Insurance
$0
$500
$500
$500
$500
$0
$300
$300
$2,460
$2,460
Programming
$3,000
$3,000
$3,000
$3,000
$0
Total Operating Expenses
$3,150
$8,000
$8,000
$24,560
$21,560
($3,150)
($8,000)
($8,000)
($24,560)
($19,486
Expenses
Payroll Taxes
15%
EBITDA
($3,000)
($7,850)
($7,850)
($24,410)
($19,336
Interest Expense
$823
$812
$801
$790
$779
Taxes Incurred
$0
$0
$0
$0
$0
Net Profit
($3,973)
($8,812)
($8,801)
($25,350)
($20,265
Net Profit/Sales
0.00%
0.00%
0.00%
0.00%
-908.73%
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Cash Received
Cash from Operations
Cash Sales
$0
$0
$0
$0
$558
Cash from Receivables
$0
$0
$0
$0
$0
Subtotal Cash from Operations
$0
$0
$0
$0
$558
$0
$0
$0
$0
$0
New Current Borrowing
$0
$0
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
$0
$0
Additional Cash Received
Sales Tax, VAT, HST/GST Received
0.00%
New Investment Received
$0
$0
$0
$0
$0
Subtotal Cash Received
$0
$0
$0
$0
$558
Expenditures
Month 1
Month 2
Month 3
Month 4
Expenditures from Operations
Cash Spending
$0
$2,000
$2,000
$16,400
$16,400
Bill Payments
$127
$3,917
$6,661
$6,722
$8,733
Subtotal Spent on Operations
$127
$5,917
$8,661
$23,122
$25,133
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
Long-term Liabilities Principal Repayment
$1,291
$1,302
$1,313
$1,324
$1,335
Purchase Other Current Assets
$0
$0
$0
$0
$0
Purchase Long-term Assets
$0
$0
$0
$0
$0
Dividends
$0
$0
$0
$0
$0
Subtotal Cash Spent
$1,419
$7,219
$9,974
$24,446
$26,468
Net Cash Flow
($1,419)
($7,219)
($9,974)
($24,446)
($25,91
Cash Balance
$212,081
$204,862
$194,888
$170,441
$144,53
Additional Cash Spent

Pro Forma Balance Sheet
Month 1
Assets
Month 2
Month 3
Month 4
Starting Balances
Current Assets
Cash
$213,500
$212,081
$204,862
$194,888
$170,441
$144,53
Accounts Receivable
$0
$0
$0
$0
$0
$1,673
Inventory
$0
$0
$0
$0
$0
$844
$0
$0
$0
$0
$0
$0
$213,500
$212,081
$204,862
$194,888
$170,441
$147,04
Long-term Assets
$9,000
$9,000
$9,000
$9,000
$9,000
$9,000
Accumulated Depreciation
$0
$150
$300
$450
$600
$750
Total Long-term Assets
$9,000
$8,850
$8,700
$8,550
$8,400
$8,250
Total Assets
$222,500
$220,931
$213,562
$203,438
$178,841
$155,29
Long-term Assets
Current Liabilities
Month 1
Month 2
Month 3
Month 4
Accounts Payable
$0
$3,695
$6,440
$6,429
$8,506
$6,562
Current Borrowing
$0
$0
$0
$0
$0
$0
Other Current Liabilities
$0
$0
$0
$0
$0
$0
Subtotal Current Liabilities
$0
$3,695
$6,440
$6,429
$8,506
$6,562
$100,000
$98,709
$97,406
$96,094
$94,770
$93,435
Total Liabilities
$100,000
$102,404
$103,846
$102,523
$103,276
$99,997
Paid-in Capital
$145,000
$145,000
$145,000
$145,000
$145,000
$145,00
Retained Earnings
($22,500)
($22,500)
($22,500)
($22,500)
($22,500)
($22,500
Earnings
$0
($3,973)
($12,784)
($21,585)
($46,935)
($67,200
Total Capital
$122,500
$118,527
$109,716
$100,915
$75,565
$55,300
Total Liabilities and Capital
$222,500
$220,931
$213,562
$203,438
$178,841
$155,29
Net Worth
$122,500
$118,527
$109,716
$100,915
$75,565
$55,300

Computer Software Business Plan

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Computer Software Business Plan

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Computer Software Business

NEED ACTUAL CHARTS?

1.2 Keys to Success

Increase sales by triple for the first two years.

2.1 Company Ownership

2.2 Start-up Summary

Legal services for company formation.

NEED ACTUAL CHARTS?

Start-up Expenses to Fund

Start-up Assets to Fund

Total Funding Required

Non-cash Assets from Start-up

Cash Requirements from Start-up

Additional Cash Raised

Cash Balance on Starting Date

Liabilities and Capital

Accounts Payable (Outstanding Bills)

Other Current Liabilities (interest-free)

Additional Investment Requirement

Total Planned Investment

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

NEED REAL FINANCIALS?

Research and Development

Total Start-up Expenses

Other Current Assets

This component is especially important in the individual's development. Planning

Market Analysis Summary

4.1 Market Segmentation

Centers for Independent Living- These are typically not-for-profit entities

NEED ACTUAL CHARTS?

Centers for Independent Living

NEED REAL FINANCIALS?

4.2 Target Market Segment Strategy

4.3 Industry Analysis

4.3.1 Competition and Buying Patterns

WordWise- This company makes several products including picture-based

Strategy and Implementation Summary

5.1 Competitive Edge

5.2 Marketing Strategy

5.3 Sales Strategy

5.3.1 Sales Forecast

NEED ACTUAL CHARTS?

NEED ACTUAL CHARTS?

Centers for Independent Living

Direct Cost of Sales

Centers for Independent Living

Subtotal Direct Cost of Sales

NEED REAL FINANCIALS?

NEED ACTUAL CHARTS?

Business plan completion

Beta version completed

Organizational hiring complete

Public release of software

Web Plan Summary

6.1 Website Marketing Strategy

6.2 Development Requirements

7.1 Personnel Plan

Sue- she will be doing a little of everything from HR to business development to

Customer Service/ Tech Support

Customer Service/ Tech Support

8.1 Important Assumptions

Current Interest Rate

Long-term Interest Rate