Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $3,000 |
Accounting | $2,000 |
Brochures | $2,500 |
Consultants | $0 |
Insurance | $0 |
Rent | $0 |
Research and Development | $0 |
Expensed Equipment | $15,000 |
Other | $0 |
Total Start-up Expenses | $22,500 |
Start-up Assets | |
Cash Required | $213,500 |
Start-up Inventory | $0 |
Other Current Assets | $0 |
Long-term Assets | $9,000 |
Total Assets | $222,500 |
Total Requirements | $245,000 |
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.
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.
FoodFun LIS has identified four distinct market segments for their products:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Centers for Independent Living | 6% | 3,245 | 3,440 | 3,646 | 3,865 | 4,097 | 6.00% |
School Districts | 5% | 14,856 | 15,599 | 16,379 | 17,198 | 18,058 | 5.00% |
Proactive Parents | 8% | 824,555 | 890,519 | 961,761 | 1,038,702 | 1,121,798 | 8.00% |
Agencies | 6% | 5,354 | 5,675 | 6,016 | 6,377 | 6,760 | 6.00% |
Total | 7.93% | 848,010 | 915,233 | 987,802 | 1,066,142 | 1,150,713 | 7.93% |
These four target segments were chosen because they have the greatest likelihood of purchasing FoodFun’s products.
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.
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).
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.
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.
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.
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.
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.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Centers for Independent Living | $23,439 | $96,957 | $118,616 |
School Districts | $43,405 | $179,550 | $219,660 |
Proactive Parents | $9,983 | $41,297 | $50,522 |
Agencies | $19,966 | $82,593 | $101,044 |
Total Sales | $96,793 | $400,397 | $489,842 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Centers for Independent Living | $1,641 | $6,787 | $8,303 |
School Districts | $3,038 | $12,569 | $15,376 |
Proactive Parents | $699 | $2,891 | $3,537 |
Agencies | $1,398 | $5,782 | $7,073 |
Subtotal Direct Cost of Sales | $6,776 | $28,028 | $34,289 |
FoodFun LIS has several milestones, presented in the following table and chart, which will be instrumental in the success of the organization.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2004 | 2/15/2004 | $0 | Sue | Busines Development |
Beta version completed | 2/1/2004 | 4/15/2004 | $0 | ABC | Programming |
Organizational hiring complete | 3/15/2004 | 5/1/2004 | $0 | Sue | HR |
Public release of software | 4/15/2004 | 5/15/2004 | $0 | ABC | Programming |
Profitability | 5/15/2004 | 5/30/2005 | $0 | Sue | Accounting |
Totals | $0 |
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.
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.
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.
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.
FoodFun LIS will require the following employees:
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Sue | $22,000 | $26,000 | $30,000 |
Accounting | $16,200 | $21,600 | $21,600 |
Software Documentation | $19,800 | $26,400 | $26,400 |
Product Development | $15,400 | $26,400 | $26,400 |
Customer Service/ Tech Support | $19,800 | $26,400 | $26,400 |
Customer Service/ Tech Support | $19,800 | $26,400 | $26,400 |
Marketing/ Sales | $27,000 | $36,000 | $36,000 |
Marketing/ Sales | $27,000 | $36,000 | $36,000 |
Total People | 8 | 8 | 8 |
Total Payroll | $167,000 | $225,200 | $229,200 |
The following sections outline important financial information.
The following table details important financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The Break-even Analysis is shown below.
Break-even Analysis | |
Monthly Revenue Break-even | $20,959 |
Assumptions: | |
Average Percent Variable Cost | 7% |
Estimated Monthly Fixed Cost | $19,492 |
The table and charts illustrate the projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $96,793 | $400,397 | $489,842 |
Direct Cost of Sales | $6,776 | $28,028 | $34,289 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $6,776 | $28,028 | $34,289 |
Gross Margin | $90,018 | $372,369 | $455,553 |
Gross Margin % | 93.00% | 93.00% | 93.00% |
Expenses | |||
Payroll | $167,000 | $225,200 | $229,200 |
Sales and Marketing and Other Expenses | $6,600 | $7,200 | $7,200 |
Depreciation | $1,800 | $1,800 | $1,800 |
Rent | $10,450 | $11,400 | $11,400 |
Utilities | $5,500 | $6,000 | $6,000 |
Insurance | $5,500 | $5,500 | $5,500 |
Payroll Taxes | $25,050 | $33,780 | $34,380 |
Programming | $12,000 | $0 | $0 |
Total Operating Expenses | $233,900 | $290,880 | $295,480 |
Profit Before Interest and Taxes | ($143,882) | $81,489 | $160,073 |
EBITDA | ($142,082) | $83,289 | $161,873 |
Interest Expense | $9,134 | $9,566 | $9,943 |
Taxes Incurred | $0 | $21,577 | $45,039 |
Net Profit | ($153,017) | $50,346 | $105,091 |
Net Profit/Sales | -158.09% | 12.57% | 21.45% |
The following chart and table show projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $24,198 | $100,099 | $122,460 |
Cash from Receivables | $46,108 | $217,218 | $342,905 |
Subtotal Cash from Operations | $70,306 | $317,317 | $465,366 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $40,000 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $70,306 | $357,317 | $465,366 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $167,000 | $225,200 | $229,200 |
Bill Payments | $75,294 | $124,114 | $152,785 |
Subtotal Spent on Operations | $242,294 | $349,314 | $381,985 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $16,227 | $16,227 | $16,227 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $258,521 | $365,541 | $398,212 |
Net Cash Flow | ($188,214) | ($8,224) | $67,154 |
Cash Balance | $25,286 | $17,062 | $84,215 |
The following table presents the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $25,286 | $17,062 | $84,215 |
Accounts Receivable | $26,487 | $109,566 | $134,042 |
Inventory | $1,408 | $5,824 | $7,126 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $53,180 | $132,452 | $225,383 |
Long-term Assets | |||
Long-term Assets | $9,000 | $9,000 | $9,000 |
Accumulated Depreciation | $1,800 | $3,600 | $5,400 |
Total Long-term Assets | $7,200 | $5,400 | $3,600 |
Total Assets | $60,380 | $137,852 | $228,983 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $7,124 | $10,477 | $12,744 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $7,124 | $10,477 | $12,744 |
Long-term Liabilities | $83,773 | $107,546 | $91,319 |
Total Liabilities | $90,897 | $118,023 | $104,063 |
Paid-in Capital | $145,000 | $145,000 | $145,000 |
Retained Earnings | ($22,500) | ($175,517) | ($125,171) |
Earnings | ($153,017) | $50,346 | $105,091 |
Total Capital | ($30,517) | $19,829 | $124,920 |
Total Liabilities and Capital | $60,380 | $137,852 | $228,983 |
Net Worth | ($30,517) | $19,829 | $124,920 |
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 | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 313.66% | 22.34% | 1.51% |
Percent of Total Assets | ||||
Accounts Receivable | 43.87% | 79.48% | 58.54% | 29.71% |
Inventory | 2.33% | 4.23% | 3.11% | 39.18% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 19.28% |
Total Current Assets | 88.08% | 96.08% | 98.43% | 88.17% |
Long-term Assets | 11.92% | 3.92% | 1.57% | 11.83% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 11.80% | 7.60% | 5.57% | 43.83% |
Long-term Liabilities | 138.74% | 78.02% | 39.88% | 9.87% |
Total Liabilities | 150.54% | 85.62% | 45.45% | 53.70% |
Net Worth | -50.54% | 14.38% | 54.55% | 46.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 93.00% | 93.00% | 93.00% | 24.10% |
Selling, General & Administrative Expenses | 251.09% | 80.43% | 71.55% | 15.49% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.58% |
Profit Before Interest and Taxes | -148.65% | 20.35% | 32.68% | 2.35% |
Main Ratios | ||||
Current | 7.46 | 12.64 | 17.69 | 1.86 |
Quick | 7.27 | 12.09 | 17.13 | 0.86 |
Total Debt to Total Assets | 150.54% | 85.62% | 45.45% | 5.06% |
Pre-tax Return on Net Worth | 501.42% | 362.71% | 120.18% | 56.70% |
Pre-tax Return on Assets | -253.42% | 52.17% | 65.56% | 11.68% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -158.09% | 12.57% | 21.45% | n.a |
Return on Equity | 0.00% | 253.90% | 84.13% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 2.74 | 2.74 | 2.74 | n.a |
Collection Days | 54 | 83 | 121 | n.a |
Inventory Turnover | 9.55 | 7.75 | 5.30 | n.a |
Accounts Payable Turnover | 11.57 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 25 | 27 | n.a |
Total Asset Turnover | 1.60 | 2.90 | 2.14 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 5.95 | 0.83 | n.a |
Current Liab. to Liab. | 0.08 | 0.09 | 0.12 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $46,056 | $121,975 | $212,639 | n.a |
Interest Coverage | -15.75 | 8.52 | 16.10 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.62 | 0.34 | 0.47 | n.a |
Current Debt/Total Assets | 12% | 8% | 6% | n.a |
Acid Test | 3.55 | 1.63 | 6.61 | n.a |
Sales/Net Worth | 0.00 | 20.19 | 3.92 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Centers for Independent Living | 0% | $0 | $0 | $0 | $0 | $540 | $1,350 | $1,944 | $2,970 | $3,918 | $4,023 | $4,266 | $4,428 |
School Districts | 0% | $0 | $0 | $0 | $0 | $1,000 | $2,500 | $3,600 | $5,500 | $7,255 | $7,450 | $7,900 | $8,200 |
Proactive Parents | 0% | $0 | $0 | $0 | $0 | $230 | $575 | $828 | $1,265 | $1,669 | $1,714 | $1,817 | $1,886 |
Agencies | 0% | $0 | $0 | $0 | $0 | $460 | $1,150 | $1,656 | $2,530 | $3,337 | $3,427 | $3,634 | $3,772 |
Total Sales | $0 | $0 | $0 | $0 | $2,230 | $5,575 | $8,028 | $12,265 | $16,179 | $16,614 | $17,617 | $18,286 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Centers for Independent Living | $0 | $0 | $0 | $0 | $38 | $95 | $136 | $208 | $274 | $282 | $299 | $310 | |
School Districts | $0 | $0 | $0 | $0 | $70 | $175 | $252 | $385 | $508 | $522 | $553 | $574 | |
Proactive Parents | $0 | $0 | $0 | $0 | $16 | $40 | $58 | $89 | $117 | $120 | $127 | $132 | |
Agencies | $0 | $0 | $0 | $0 | $32 | $81 | $116 | $177 | $234 | $240 | $254 | $264 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $156 | $390 | $562 | $859 | $1,133 | $1,163 | $1,233 | $1,280 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sue | 0% | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Accounting | 0% | $0 | $0 | $0 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 |
Software Documentation | 0% | $0 | $0 | $0 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 |
Product Development | 0% | $0 | $0 | $0 | $0 | $0 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 |
Customer Service/ Tech Support | 0% | $0 | $0 | $0 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 |
Customer Service/ Tech Support | 0% | $0 | $0 | $0 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 |
Marketing/ Sales | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Marketing/ Sales | 0% | $0 | $0 | $0 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Total People | 0 | 1 | 1 | 7 | 7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | |
Total Payroll | $0 | $2,000 | $2,000 | $16,400 | $16,400 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $0 | $2,230 | $5,575 | $8,028 | $12,265 | $16,179 | $16,614 | $17,617 | $18,286 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $156 | $390 | $562 | $859 | $1,133 | $1,163 | $1,233 | $1,280 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $156 | $390 | $562 | $859 | $1,133 | $1,163 | $1,233 | $1,280 | |
Gross Margin | $0 | $0 | $0 | $0 | $2,074 | $5,185 | $7,466 | $11,406 | $15,046 | $15,451 | $16,384 | $17,006 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | |
Expenses | |||||||||||||
Payroll | $0 | $2,000 | $2,000 | $16,400 | $16,400 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | |
Sales and Marketing and Other Expenses | $0 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Depreciation | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Rent | $0 | $950 | $950 | $950 | $950 | $950 | $950 | $950 | $950 | $950 | $950 | $950 | |
Utilities | $0 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Insurance | $0 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Payroll Taxes | 15% | $0 | $300 | $300 | $2,460 | $2,460 | $2,790 | $2,790 | $2,790 | $2,790 | $2,790 | $2,790 | $2,790 |
Programming | $3,000 | $3,000 | $3,000 | $3,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $3,150 | $8,000 | $8,000 | $24,560 | $21,560 | $24,090 | $24,090 | $24,090 | $24,090 | $24,090 | $24,090 | $24,090 | |
Profit Before Interest and Taxes | ($3,150) | ($8,000) | ($8,000) | ($24,560) | ($19,486) | ($18,905) | ($16,624) | ($12,684) | ($9,044) | ($8,639) | ($7,706) | ($7,084) | |
EBITDA | ($3,000) | ($7,850) | ($7,850) | ($24,410) | ($19,336) | ($18,755) | ($16,474) | ($12,534) | ($8,894) | ($8,489) | ($7,556) | ($6,934) | |
Interest Expense | $823 | $812 | $801 | $790 | $779 | $767 | $756 | $745 | $733 | $722 | $710 | $698 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($3,973) | ($8,812) | ($8,801) | ($25,350) | ($20,265) | ($19,673) | ($17,380) | ($13,428) | ($9,777) | ($9,361) | ($8,416) | ($7,782) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | -908.73% | -352.87% | -216.49% | -109.48% | -60.43% | -56.35% | -47.77% | -42.56% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $558 | $1,394 | $2,007 | $3,066 | $4,045 | $4,153 | $4,404 | $4,572 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $0 | $56 | $1,756 | $4,243 | $6,127 | $9,297 | $12,145 | $12,485 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $558 | $1,450 | $3,763 | $7,309 | $10,172 | $13,450 | $16,549 | $17,057 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $0 | $558 | $1,450 | $3,763 | $7,309 | $10,172 | $13,450 | $16,549 | $17,057 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $0 | $2,000 | $2,000 | $16,400 | $16,400 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | $18,600 | |
Bill Payments | $127 | $3,917 | $6,661 | $6,722 | $8,733 | $6,766 | $6,140 | $7,096 | $7,096 | $7,413 | $7,261 | $7,361 | |
Subtotal Spent on Operations | $127 | $5,917 | $8,661 | $23,122 | $25,133 | $25,366 | $24,740 | $25,696 | $25,696 | $26,013 | $25,861 | $25,961 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $1,291 | $1,302 | $1,313 | $1,324 | $1,335 | $1,346 | $1,357 | $1,369 | $1,380 | $1,392 | $1,403 | $1,415 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $1,419 | $7,219 | $9,974 | $24,446 | $26,468 | $26,712 | $26,098 | $27,064 | $27,076 | $27,404 | $27,265 | $27,375 | |
Net Cash Flow | ($1,419) | ($7,219) | ($9,974) | ($24,446) | ($25,910) | ($25,262) | ($22,335) | ($19,755) | ($16,904) | ($13,955) | ($10,715) | ($10,319) | |
Cash Balance | $212,081 | $204,862 | $194,888 | $170,441 | $144,531 | $119,269 | $96,934 | $77,178 | $60,274 | $46,320 | $35,604 | $25,286 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $213,500 | $212,081 | $204,862 | $194,888 | $170,441 | $144,531 | $119,269 | $96,934 | $77,178 | $60,274 | $46,320 | $35,604 | $25,286 |
Accounts Receivable | $0 | $0 | $0 | $0 | $0 | $1,673 | $5,798 | $10,063 | $15,019 | $21,026 | $24,190 | $25,258 | $26,487 |
Inventory | $0 | $0 | $0 | $0 | $0 | $844 | $454 | $892 | $1,033 | $1,246 | $1,279 | $1,357 | $1,408 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $213,500 | $212,081 | $204,862 | $194,888 | $170,441 | $147,047 | $125,520 | $107,889 | $93,231 | $82,546 | $71,789 | $62,218 | $53,180 |
Long-term Assets | |||||||||||||
Long-term Assets | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 |
Accumulated Depreciation | $0 | $150 | $300 | $450 | $600 | $750 | $900 | $1,050 | $1,200 | $1,350 | $1,500 | $1,650 | $1,800 |
Total Long-term Assets | $9,000 | $8,850 | $8,700 | $8,550 | $8,400 | $8,250 | $8,100 | $7,950 | $7,800 | $7,650 | $7,500 | $7,350 | $7,200 |
Total Assets | $222,500 | $220,931 | $213,562 | $203,438 | $178,841 | $155,297 | $133,620 | $115,839 | $101,031 | $90,196 | $79,289 | $69,568 | $60,380 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $3,695 | $6,440 | $6,429 | $8,506 | $6,562 | $5,904 | $6,860 | $6,849 | $7,171 | $7,016 | $7,115 | $7,124 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $3,695 | $6,440 | $6,429 | $8,506 | $6,562 | $5,904 | $6,860 | $6,849 | $7,171 | $7,016 | $7,115 | $7,124 |
Long-term Liabilities | $100,000 | $98,709 | $97,406 | $96,094 | $94,770 | $93,435 | $92,089 | $90,731 | $89,363 | $87,983 | $86,591 | $85,188 | $83,773 |
Total Liabilities | $100,000 | $102,404 | $103,846 | $102,523 | $103,276 | $99,997 | $97,992 | $97,591 | $96,211 | $95,154 | $93,607 | $92,303 | $90,897 |
Paid-in Capital | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 | $145,000 |
Retained Earnings | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) | ($22,500) |
Earnings | $0 | ($3,973) | ($12,784) | ($21,585) | ($46,935) | ($67,200) | ($86,872) | ($104,252) | ($117,680) | ($127,458) | ($136,819) | ($145,235) | ($153,017) |
Total Capital | $122,500 | $118,527 | $109,716 | $100,915 | $75,565 | $55,300 | $35,628 | $18,248 | $4,820 | ($4,958) | ($14,319) | ($22,735) | ($30,517) |
Total Liabilities and Capital | $222,500 | $220,931 | $213,562 | $203,438 | $178,841 | $155,297 | $133,620 | $115,839 | $101,031 | $90,196 | $79,289 | $69,568 | $60,380 |
Net Worth | $122,500 | $118,527 | $109,716 | $100,915 | $75,565 | $55,300 | $35,628 | $18,248 | $4,820 | ($4,958) | ($14,319) | ($22,735) | ($30,517) |
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Creating a business plan is essential for any business, but it can be especially helpful for software businesses who want to improve their strategy and raise funding.
A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components that are essential to its success.
This article provides an overview of the key elements that every software business owner should include in their business plan.
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A software business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.
A software business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.
Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.
The following are the key components of a successful software business plan:
The executive summary of a software business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.
If you are just starting your software business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your software firm, mention this.
You will also include information about your chosen software business model and how, if applicable, it is different from other companies in your industry.
The industry or market analysis is an important component of a software business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
You should also include sources for the information you provide, such as published research reports and expert opinions.
This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.
For example, a software business’s customers may include small, medium, and enterprise businesses. Each of these customer segments will have different needs and wants.
You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.
Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or software services with the right marketing.
The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.
For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.
Below are sample competitive advantages your software business may have:
Keep in mind that your competitive advantages will change over time as your business grows and as new competitors enter the market. It is important to regularly review and update.
This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.
This part of your software business plan should include the following information:
The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.
Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a software business include reaching $X in sales. Other examples include acquiring X number of customers or launching a new product line.
List your team members here including their names and titles, as well as their expertise and experience relevant to your specific software industry. Include brief biography sketches for each team member.
Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.
Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).
This includes the following three financial statements:
Your income statement should include:
Revenues | $ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 |
$ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 | |
Direct Cost | |||||
Direct Costs | $ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 |
$ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 | |
$ 268,880 | $ 360,750 | $ 484,000 | $ 649,390 | $ 871,280 | |
Salaries | $ 96,000 | $ 99,840 | $ 105,371 | $ 110,639 | $ 116,171 |
Marketing Expenses | $ 61,200 | $ 64,400 | $ 67,600 | $ 71,000 | $ 74,600 |
Rent/Utility Expenses | $ 36,400 | $ 37,500 | $ 38,700 | $ 39,800 | $ 41,000 |
Other Expenses | $ 9,200 | $ 9,200 | $ 9,200 | $ 9,400 | $ 9,500 |
$ 202,800 | $ 210,940 | $ 220,871 | $ 230,839 | $ 241,271 | |
EBITDA | $ 66,080 | $ 149,810 | $ 263,129 | $ 418,551 | $ 630,009 |
Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
EBIT | $ 60,880 | $ 144,610 | $ 257,929 | $ 413,351 | $ 625,809 |
Interest Expense | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 |
$ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 | |
Taxable Income | $ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 |
Income Tax Expense | $ 18,700 | $ 47,900 | $ 87,600 | $ 142,000 | $ 216,400 |
$ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 | |
10% | 20% | 27% | 32% | 37% |
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
Cash | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
Other Current Assets | $ 41,600 | $ 55,800 | $ 74,800 | $ 90,200 | $ 121,000 |
Total Current Assets | $ 146,942 | $ 244,052 | $ 415,681 | $ 687,631 | $ 990,278 |
Fixed Assets | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 |
Accum Depreciation | $ 5,200 | $ 10,400 | $ 15,600 | $ 20,800 | $ 25,000 |
Net fixed assets | $ 19,800 | $ 14,600 | $ 9,400 | $ 4,200 | $ 0 |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 | |
Current Liabilities | $ 23,300 | $ 26,100 | $ 29,800 | $ 32,800 | $ 38,300 |
Debt outstanding | $ 108,862 | $ 108,862 | $ 108,862 | $ 108,862 | $ 0 |
$ 132,162 | $ 134,962 | $ 138,662 | $ 141,662 | $ 38,300 | |
Share Capital | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Retained earnings | $ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 |
$ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 | |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 |
Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:
Below is a sample of a projected cash flow statement for a startup software company.
Net Income (Loss) | $ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 |
Change in Working Capital | $ (18,300) | $ (11,400) | $ (15,300) | $ (12,400) | $ (25,300) |
Plus Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
Net Cash Flow from Operations | $ 21,480 | $ 82,910 | $ 152,629 | $ 256,551 | $ 380,709 |
Fixed Assets | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Net Cash Flow from Investments | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Debt financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow from Financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow | $ 105,342 | $ 82,910 | $ 152,629 | $ 256,551 | $ 271,847 |
Cash at Beginning of Period | $ 0 | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 |
Cash at End of Period | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
You will also want to include an appendix section which will include:
Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your software company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.
A business plan is a critical document for any new software company. If you are seeking funding, your business plan will be a key component of your pitch to investors .
Wish there was a faster, easier way to finish your business plan?
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How to Write a Winning Tech Company Business Plan (+ Template)
Software developer business plan sample.
Do you want to start a software development business and you are looking for a software development business plan sample? Software development business is a business that deals with developing application that would be used with system or phone.
In this article, I present you a software development business plan sample that you can use as a guide to create a business plan for your software development business.
Here is a sample business plan for starting a mobile and PC software development company.
BUSINESS NAME: Sandracast Software developer
Executive Summary
Vision Statement
Mission Statement
Sales and Marketing Strategy
Sales Forecast
Sandracast software Developer Company is a software company that has fulfilled the entire requirement for starting a business in New York, United state of America. The business will do all within the law to fully carry out all it operations. And we are set to offer the best services to our clients.
Stanley Cassandra Cynthia will be the owner and the CEO of Sandracast software developer company. She has contributed a total of $350,000 towards starting the business, while plans have been made to secure the remainder from the bank to complete the total startup capital of $500,000.
Our Product and Services
Sandracast software developer is a system software developer in New York, United State which will be especially interested in providing its services for client not only in New York or the United state alone, but throughout the world. We have made plans that will actually make this possible and presently we are equipped beyond reasoning to start a nice business. Below are some of the things that highlight our preparation:
With this set in place we know our services will not be altered. Our headquarter will be in New York, United state.
Our services will be based on Developing system applications which may include games, and other utilities application that will be used by both the system and phone.
Our vision in the software development company is to attain the height of best software producers in the industry, to also be the leading developer when it comes to updating our applications.
Our mission is to be able build and develop standard application which will be made available on all platform. These platforms include the Windows, Android phones, Apple amongst others. We are ready to take the software world by a storm.
Business Structure
Due to the strong and intense competition in the market and the importance of software to the system, Samdracast will only be employing computer scientist, software developers and some computer engineer who are good and have a beautiful C.V showing applications or software they have previously worked on.
Market Analysis Market Trend
To develop mobile and system applications expertise, commitment, and great sacrifice is needed so as meet the high demand for up to date application in the world. The world has so many developers and the secret to their success is staying relevant. This is what we are preparing to do.
Target Market
Our target market includes:
Our business will be greatly promoted by our great customers who have received the best services from us.
Since our success depends more on proper and good marketing strategies, below are some of the tools we will use in marketing our company:
Financial Plan Source of Startup Capital
To really make our mark, we need more than enough resources materially and financially to begin with. As of present we have been able to realize a total sum of $350,000. In other to complete the remaining fund which amounts to $150,000 we would obtain bank loan.
Below are the sales forecast for our software developing company that is Samdracast software developer. This forecast is for the first three years of operation. This is clearly based on credible statistical data which was obtained from the industry.
First Fiscal Year $380,000 Second Fiscal Year $650,000 Third Fiscal Year $1,000,000
This article contains a software developing which bears the name, Samdracast software developer. The business will operate from New York, in the United State. It will be owned and headed by Stanley Cassandra Cynthia.
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Updated 28 Aug 2023
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Business analyst
Every company is rooted in a unique business concept. However, having ideas isn’t enough for a company's prosperity and success. Many startups fail due to faulty training in their first year. An IT startup business plan is the first thing that can be corrected by organizing your thoughts and even finding the right people to work with, turning your idea into a prosperous project.
We'll cover how to write a startup business plan, thoroughly covering each part, give some advice, section templates, and more.
Before we go into precise statistics and data, let’s have a closer look at the notion of a business plan. It will assist you in better navigating the subject. The tech startup business plan is a document that summarizes strategies and ideas for the new company launch, support, and even an exit.
Now, we’ll look at stats to understand why a business plan is required. Startups fall due to a bunch of reasons: among the most widespread ones, CBInsights mentions running out of funds (for 38% of startups), absence of market need (for 35%), etc. A business plan can raise startup success chances.
Such a document serves companies for different purposes. The most common of them are:
How can the IT startup business plan assist business owners in implementing these purposes into life? It’s possible due to the following benefits such a document brings:
A technology business plan benefits
Remember that to gain these benefits, you must adhere to a specific structure when drafting your startup business plan. It must contain the following parts:
“How to write a startup business plan” is a common question, and many entrepreneurs are looking for an answer. We’ll discuss it in detail, looking closely at each section.
This section serves as an introduction to the entire document. A well-written executive summary grabs readers' attention and instantly illustrates what your technology business plan is all about.
It typically includes the following parts:
Business overview
Introduce your startup to readers, tell them about your plans and offers. This section should be short - about 1-3 sentences.
Target market
Define the target market for your startup company. To make the section more useful and demonstrate your future startup value, provide a detailed market overview and client issues you would solve with your product.
Competition
Portray your possible competitors as well as the attributes that will set your company apart. Describe how you will compete in pricing, quality, or service structure in this part of the executive summary in your software startup business plan.
Emphasize your company's goals and particular milestones, illustrating the said with charts (including profit, sales, and ROI) for greater clarity of prospective investors. Think about financial estimates for different periods.
Briefly describe your team composition or tell about the lack of particular specialists and your possible ways to find them. Portray the existing staff members along with their experience, and don’t forget to mention software development partnership .
The final section tells potential investors how much money you'll need to bring your idea to life. Tell this aspect to stakeholders beforehand, including the appropriate data to the executive summary.
Sometimes even the perfect technology company business plan is not enough for the stakeholders to pay attention to your project. They’ve reviewed piles of such documents, so one more, looking like the previous, may not interest them a lot. But you can change the situation by preparing a presentation of your business plan, where you can mark the vital concepts you’d like to share (e.g., company overview, problems you’d like to solve, startup team composition, etc.).
We've compiled a list of recommendations to help you create an excellent executive summary of the whole technology startup business plan.
Tip #1. Write it last
Executive summaries should be written last as they summarize the entire business plan. That's why you should complete your research for all areas of your startup business plan and then write the executive summary.
Tip #2. Capture readers’ attention
An executive summary's main objective is to emphasize critical information about the tech company business plan. But, it's vital not to overload the summary with unnecessary details regarding the concept. It should grab people's interest and make them want to learn more.
Tip #3. Keep it structured
A well-defined structure of summary will convey your ideas. Consider including an introduction, main body, and conclusion that are short but informative. The important takeaways from your tech business plan would be provided by this structure.
Tip #4. Mention exit strategy
An exit strategy is an essential part for stakeholders. It can be an acquisition by another company after running technical due diligence , share selling, or employee buyout.
Tip #5. Use facts
Your primary goal is to persuade people to invest in your company. If your startup's goals, experience, and market perspectives are based on facts, they will have more impact. For instance, you may give information about market valuation and your expected market share.
Tip #6. Avoid cliches
There are a few hazards to avoid if you want your executive summary to succeed. For example, don’t mention the team’s passion and enthusiasm. Investors already know it. They’ve seen hundreds of passionate startups before. Instead, provide decision-makers with facts and let them say that for you.
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The company description section of a technical business plan exposes its history, aims, team structure, etc. However, it is frequently the shortest part of the business plan.
Company history
This part is based on your company's current stage. If you're an established organization looking for money for a new project, it's a good idea to provide investors with some company background. In case you are a startup business without a rich history, you may tell who is behind the company and how the founders came up with the idea.
Give a brief description of your company's location, including a physical address, or inform investors about your prospective location coordinates. Whether you'll buy or rent an office, as well as how long you'll be using it as a company location. If you have a home office, also indicate this aspect.
Type of business
This section provides information about your industry. It should be brief but not excessively so. Don't write something like, "We're going to sell things." Indicate your domain: travel, healthcare industry, etc. Finish this section off with a domain description.
Management and employees
This is a chance for investors to get acquainted with your team. Mention all staff members and management personnel, defining their duties, abilities, experience, and accomplishments. Also, don't forget to include information about yourself as an opening. Describe any gaps in the team (if you have ones) and explain how you plan to fill them.
Legal structure and ownership
This data is critical for investors because taxation varies based on the legal structure. Specify if you're an LLC, a C-Corp, an S-Corp, a Sole proprietor, or in a partnership. Specify who runs the enterprise and what technical co-founder equity they have.
Company’s mission and principles
Write this part in a creative manner. Come up with one or two lines that precisely define the aims and ideals of your business.
Critical parts of Company description
You can also include the following parts in this section of a tech business plan:
Business scaling strategies
Scaling a business equates to laying the groundwork for your company's future development. So, writing this section of the business plan for technology company, think about appropriate systems, personnel, procedures, technology, or funding — everything you need to scale.
Business opportunities
Prospective investors want to understand why your company’s considered to be profitable. Tell them about your business opportunities, offering information about factors of your future success, specialists you’ve consulted about your business, and their thoughts about it, reasons for selling the certain articles/services, and profit they may bring, etc.
It outlines the company's competitive advantage as well as its marketing objectives. This part of the business plan for startup also aids in the particular domain identification and the development of a viable business strategy.
Moreover, you can define and put down such important data as a qualitative concept description and strategies for attracting clients to show stakeholders how to differentiate your startup activity from your competitors’ and ways you may engage the users to cooperate.
This part of the business plan for a tech startup is typically divided into three sections:
Marketing plan components in a nutshell
Customers are vital to every company. So, you must determine to whom you will offer your services. Begin with easy tasks and work your way up to more complicated ones.
Let's say your firm is an online car parts store that you want to open on the West Coast of the USA. Your potential core audience may look like this after brainstorming:
After determining general characteristics, it is time to dive deeper into the analysis. It can be done in a variety of ways in every sample business plan for tech startup.
Conduct surveys
According to your audience assumptions, you may collect focus groups and conduct surveys. It is possible to complete them both online and personally for technology business plans. Surveys can help you learn more about your consumers to provide better service.
Analyze competitor’s audience
Competitors already meet consumers’ needs, and your task is to identify their audience and understand what makes them use their product or service.
Examine your rivals' marketing channels to see how they do it. Visit their websites, follow them on social media, and sign up for their newsletter. These procedures will assist you in identifying the pain areas of your clients.
Create a buyer persona
The final stage in the target audience study is to create a buyer persona based on the research findings from prior steps of every tech business plan example. Let's take a closer look at it.
A buyer persona is an ideal consumer description, including how they use their leisure time, the obstacles they face, and their decisions. Such a description may be created using various methods. For example, HubSpot's Make My Persona product works perfectly for it.
Learn more about how to define target audience in our article!
Competitor research is critical to the company's success. It allows you to have a deeper understanding of your target market, as well as identify competitors, their tactics, and offerings, among other things.
You should follow three phases while conducting a competitive analysis for a business plan for tech startup.
Step #1. Find competitors
Start by searching for basic requests in Google. Make a list of your rivals in the same business as you and have similar ideas. After that, do some in-depth research, analyzing their social media posts, news reports, or consumer reviews.
Step #2. Examine them
It’s time to dig deeper. But keep in mind that you may need special tools like Ahrefs or SimilarWeb. Carefully examine the following criteria essential for every tech business plan sample:
Pricing. Analyze the charges for their services. It will assist you in determining the pricing boundaries for your goods. However, bear in mind that you are not obligated to value your product lower than your competitors in order to win the competition.
Organic traffic. Determine how many visits they receive due to a Google search. These metrics will display the popularity of your competitors. To handle them, you can use tools like Ahrefs, SimilarWeb, and Alexa.
Social media mentions. It's another way to look into your opponents' activities and see what consumers say about them. With tools like Followerwonk, Social Searcher, and Sprout Social, you can monitor engagement rates, keywords chosen, or social shares and mark them in your business plan.
Time on the market. You must determine the time on the market to see if you will compete with a major company or a start-up. The WHOis.net service may be used to examine the domain name registration date, server stats, and contact information.
Step #3. Categorize them
Even having learnt everything about your competition, you still need to watch your rivals and follow their movements. The next step would be to split competitors into three categories based on their “danger level”:
Primary competitors
These are the main ones oriented to the same core audience as you.
Secondary competitors
They can provide high or low-level versions of your services to a different target audience than yours.
Tertiary competitors
They are indirectly related to your company.
It’s the final step of the section in every tech startup business plan example.
SWOT is an abbreviation of Strengths, Weaknesses, Opportunities, and Threats:
The SWOT matrix is a tool used by businesses to compile all their data into one page. To simplify this process, we recommend using the below technology business plan template (namely, one for SWOT analysis).
SWOT analysis template
A financial plan is a projection of future income and costs for your business. It's an important aspect of strategic planning that can turn vague objectives into concrete milestones.
Complete the following parts in your business plan tech startup example or create them yourself:
Balance sheet
This part illustrates your present financial situation. A balance sheet is a wonderful method to forecast your future financial condition and design your growth objectives if you're searching for finances.
Expense projections
You must plan your future expenses classified into fixed and recurring costs to make your concept clearer to stakeholders. In general, estimate how much money will be spent on your idea implementation and how frequent these expenses would be.
Income projections
This part of the business plan tech startup needs summarizes the project's future earnings and sales. To begin with, you must predict your product's sales. After that, forecast the possible revenue for your startup using the sales projection.
Cash flow projections
The cash flow estimates are the last element of the financial plan. In a nutshell, it's a summary of all the money going in and out of the company. It shows your company's financial health at all stages of development, including the company's income and expenses. Depending on it, the remaining cash balance is calculated for a given time.
Monetization strategies
A company establishment and a beginning of the product development flow are only half of the way to market launch, impossible without a proper monetization strategy — a method of future profit gaining. For example, if your upcoming product is a fitness mobile application, you can implement advertisements, in-app purchases, freemium strategy, and others.
For successfully hitting your aims, you should know your destination, as well as the tools and methods you need to achieve established objectives. All this information can be included in your sales plan.
Though it’s considered to be a separate document looking like the business plan, the essential difference is that the business plan contains your objectives, and the sales plan mentions how to achieve them.
You can also include a sales plan as a section in a startup business plan, containing your situation assessment, financial forecasting, resources, revenue targets, etc. Document templates (for example, one from 150 Startups below) will help you understand which direction to choose.
Financial plan section
Preparing a financial strategy for a starting firm might be difficult, but it is essential for any business plan. To make the process easier, we've compiled four helpful hints answering how to write a business plan for a tech startup, namely this section.
Keep your financial plan in line with the business plan
The statistics in your financial predictions should back up all of your verbal goals outlined in earlier parts. For example, if you want to launch your product in the third quarter of 2022, you'll need to budget for marketing, shipping, and other expenses during that time.
Your financial assumptions must be clear
Even if the precision in figures of a financial plan is critical, most investors care about your projections comprehension. Demonstrate your understanding to them, providing enough material to back up your financial assumptions: annual financial statements, market/competitor analysis data, etc.
Be optimistic yet realistic
Even a significant financial plan requires a healthy dose of optimism. But don't go too far with it, or you'll come out as a dreamer to the investors. It's critical to balance the accuracy of the facts and the need to show a financially viable project to stakeholders.
Use templates
Many business owners have no clue where to start when creating a financial strategy or how to present it. If so, use pre-made templates with all of the essential sheets and columns.
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This is the final section of the business plan, informing investors about your startup's organizational structure. It may contain the following parts:
Team composition is essential for a proper startup functioning, as well as for its future growth. If you’re going to launch a software development company, at the beginning of the startup’s existence, your project team formed may include:
The software development team composition should contain the following specialists as UI/UX designers, front-end and back-end developers, QA engineers, and others essential for the product’s appropriate development.
How to build a software development team — revealed! Check our recent guide to know more!
So, list and briefly characterize each key management person in your business. Try to tie their expertise to your company's current responsibilities, using the business plan template tech startup requires, or write this part on your own.
For instance, if your VP of Sales has previously worked for an organization that increased sales from $5 million to $10 million, it would be a wonderful addition to demonstrate their knowledge and value on the team. You'll also demonstrate to investors that you've assembled a strong team they can trust with their funds.
This is common when a company lacks some management team members while developing a business plan. If it's your case, you should make a list of any absent personnel and the particular skills for future candidates, such as experience in the needed sector, duties, etc.
For example, if you want to find a CTO for a startup , you can say that the perfect candidate must have 10+ years of experience, top-class knowledge of modern technologies, and extensive skills to effectively manage the team and develop the product.
The Board of Directors is a hired group of individuals that assist you in running your business properly. Even if a Board of Directors is uncommon for startups, you may spot one in the team structure and care about these gaps to be filled.
If you need to provide stakeholders and other readers of your business plan with additional information about your startup company, you may give it in a supplementary appendix section to your business plan example tech startup needs (or one created by yourself). It isn’t essential; however, your possible investors may need some more data about you and your business (a credit history, for instance).
So, the appendix should be prepared beforehand to save time in the future. You can include in it:
You may also add here:
A production plan: it is your helper during production activity setting tasks that should be completed for aims achievement, every employee function in such a completion, and so on.
An operations plan: it may identify your startup’s primary business needs, such as equipment, requirements to inventory, office building, or location.
Preparing an appendix, care about its simplicity in reading and comfort in use. If it’s too long or contains too many documents to read, make a supplementary table of contents for more straightforward navigation of your plan readers. Disclosing confidential data, please monitor users having access to it and remind them about the necessity of maintaining confidentiality.
On top of that, the readers can skip the supplementary section as it’s the last part of your business plan; your prepared plan should be understandable and self-reliant. Otherwise, it will need reworking.
A way to success and prosperity isn’t a bed of roses. World-famous companies began their way from startups one day, thoroughly planning every step on the road to fame. For you to inspire, we’ve prepared a shortlist of such startups’ success stories.
Samples of startups successful due to accurate planning
In the beginning, Pinterest was an invitation-only service. To go further on their development path, the company planned every business step, thinking about a proper UX for their product: Ben Silbermann even gave users his personal phone number to contact him about the site at any time of day or night. This perseverance paid off. Now Pinterest is a unique platform with $633 million revenue.
Canva is one of the leading graphic design platforms designers love to use for everything. This successful Australian business has raised over $US 1 billion of revenue. Due to proper scheduling policy and belief in workforce empowering, Canva CEO Melanie Perkins could make her company successful, having an audience of more than 10 million customers.
The well-known messenger allowing people to communicate worldwide was invented in a gym. When Jan Koum and his co-founder Brian Acton were annoyed with missing calls while at the gym, they created WhatsApp, which allows users to update their "status" to indicate when they are ready to accept calls. They only wanted to make a good product for customers, which approximately turned into more than $5.5 billion of revenue.
Netflix, which started its way as a rent-by-mail DVD service that required users to pay for each rental, is now worth more than $30 billion. It's a brilliant illustration of how pivoting a business model can significantly affect a company's direction. Netflix was able to further establish itself as the go-to media company by pivoting from DVD by mail to developing award-winning programming and gaining revenue of more than $US 7.5 billion .
Strict planning of business steps was one of the essential things all the above companies had in common to grow and become more successful. We can personally propose a tech startup business plan template from Shopify that most nearly meets the points discussed above.
Shopify tech company business plan template
But remember that such a document will properly work if its critical blocks are created with the help of qualified experts. Cleveroad, a skilled IT consulting company and software solution provider from Ukraine, Eastern Europe, is ready to help you with initial project development phases and further ones. Since 2011, we've been assisting startups and organizations of all kinds in acquiring cutting-edge technologies.
During the collaboration with us, you’ll obtain a wide range of services, containing (but not limited to):
You can also apply to us if you have problems with business plan creation. We’ll help you solve them quickly and efficiently build a software product for your business.
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Developing an information technology startup business plan is a complicated and time-consuming process that practically every company should undertake. You can adapt pre-made templates, but no one-size-fits-all template will work for every company. That’s why you may make your job easier, applying to specialists competent in software development.
A business plan can help you organize your thoughts, ideas, and even find the right people to work with. Even though making a business plan (or completing a technology startup business plan example) is a long and complex process, almost every startup should go through it.
Your startup business must have these sections:
Evgeniy Altynpara is a CTO and member of the Forbes Councils’ community of tech professionals. He is an expert in software development and technological entrepreneurship and has 10+years of experience in digital transformation consulting in Healthcare, FinTech, Supply Chain and Logistics
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Read on for a list of our favorite software platforms for writing a business plan, plus advice on how to choose the right business plan software for your needs.
Every successful ecommerce business is supported by a foundation of solid business planning. A professional business plan sets the stage for your new business , acting as an internal and external roadmap for brand identity, financial planning, project management, and more.
Writing a business plan is an important and often difficult task for any entrepreneur or business owner. If you can't get your head around a business plan template , business planning software can help. If drafting a business plan from scratch sounds too daunting to tackle on your own, business plan software offers everything you need for business plan creation, including financial reports, sample business plans, how-to articles, and more.
Read on for a list of the best business plan software platforms, plus advice on how to choose the right business plan software for your needs.
Affordable software with business plan templates and samples
One of the most affordable pieces of business plan software on this list, LivePlan allows users to create unlimited business plans and offers more than 500 sample business plans and pages to start with. Get step-by-step guidance on how to write your plan and use templates for different types of business plans, making it easy to tailor your plan to your needs.
LivePlan also offers a robust set of financial forecasting tools, helping you to convert financial data like cash flow statements into easy-to-read charts and graphs.
Business plan software for entrepreneurs who struggle with writing
Enloop has many of the same features as other pieces of business plan software. It automatically syncs financial data and creates financial ratios. And when you write your plan, it assesses it and gives you a performance score, so you can improve it if needed. You can also add users for easy collaboration and sharing. Enloop is especially good if writing isn’t your strong suit, as you can plug in your metrics and let the software do the “writing” for you .
Business plan software for startups seeking investment
Bizplan is a business plan software that caters to small businesses and startups seeking external investment. The platform makes connecting with potential investors easy, and allows users to easily publish a business plan on Fundable, a popular crowdfunding platform.
Other standout features include drag-and-drop tools for creating business plan templates, access to self-guided business courses from Startups.com, and financial tools to help set salaries, forecast revenue, and track expenses.
Best business plan software for planning, forecasting, and scenario analysis
If the focus of your business plan is your business’s financial picture and potential, PlanGuru is an excellent option. In addition to offering most of the basic business plan software features you’d expect, PlanGuru offers tools for budgeting, financial forecasts and reports , strategic planning, and scenario analysis.
While PlanGuru supports additional users, each user also comes with an additional monthly fee of $29/month .
Best contract-free business plan software for new businesses
While it may not have the longest list of business planning features, GoSmallBiz’s solution is part of a larger business continuity planning software platform that includes tools for everything from human resource management to tax payments. GoBizPlan also offers industry-specific business plan templates to kickstart your business plan creation. This is especially helpful if your business idea is destined for a specific vertical market .
GoSmallBiz users can create financial statements and projections for multiple years, including income statements , cash flow statements , and balance sheets . Finally, GoSmallBiz offers step-by-step guidance, prompts, and tutorials to help users get the most out of the platform .
Business plan software with the option to get help from professionals
PlanBuildr is another user-friendly business plan software for people who aren’t as confident with the writing process. This software uses a fill-in-the-blank business plan creator to help you quickly build a simple but solid business plan. PlanBuildr also offers extensive financial reports and features, including charts and graphs and the ability to create various financial projections.
PlanBuildr has 10 business plan designs to choose from, and you can also hire PlanBuildr for additional business plan writing services .
Entrepreneurs use business plan software to guide them through the process of turning a business idea into a complete business model. Only a select group of small business owners go into business for writing—the rest have stronger skills elsewhere. Business plan software can offer the exact support you need to get the wording, structure, and presentation just right.
Likewise, not every entrepreneur is good with numbers. Business plan software can help with financial forecasting by making sense of your cash flow and other financial data. Some software will even automatically generate financial statements for you, making it easier for you and your audience to understand the numbers.
Many business plan tools also offer a range of business plan templates . It’s almost always easier to follow a template or business plan example than to start with a blank page. Writing a business plan is a lot less intimidating this way. Plus, business plan templates can function as a checklist, ensuring that you don’t omit any important sections or information .
While most business planning software can accomplish the same end goal, each has its own pros and cons, depending on your needs. The best business plan software for you may be different than the best option for your fellow business owners. When shopping for business plan software, consider the following:
What is the best software to write a business plan, what are the 4 types of business plans.
Do i need a business plan to start a small business.
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CEO/Co-founder of Jelvix. Expert in the development and implementation of operational policies and strategic plans. Since 2008 he has been dedicated to raising Jelvix company, supervising it and assisting its growth. C lients’ business goals are Jelvix’s top priority. Under his direction, Jelvix has grown from a startup to one of the global leaders in software development .
A software development plan describes the development process step by step. It covers planning, ideation, development, documentation, deployment, launch, and sometimes maintenance.
Software development project plans allow product owners, stakeholders, and developers to optimize development. The goal of a software development plan is to provide clear answers to the following questions:
If there’s a conflict or a team bumped into a dead end, they should be able to come back to the development plan and find the solution to their concerns. Preventing miscommunication and organizing the process is the main SDP meaning .
To write a software development plan, you need to get all participants of the project on the same page. You can organize remote meetings via Zoom or Skype to discuss the plan’s structure and the main points.
After the whole team discusses preferences regarding the plan’s contents, assign a responsible manager who will take responsibility for the plan’s completion. Usually, at this stage, business analysts and project managers carry the most responsibility for the document.
The first step in writing a software development plan is establishing its key components. In this part, we will examine the sections of a typical software development plan, and give you a checklist about their contents with a sample of a software development project plans .
This section describes the purpose of the software development project and product. Your goal is to define which type of development the document describes, finalize the product’s overall concept, and your team’s main expectations.
A software development plan should depict the team’s structure, assign the managers of the project, and their responsibilities. You can create a table with all project participants and describe their functions in detail – here’s an excerpt from a software development planning template .
In this section, the team should describe any involved external groups – other teams and experts that developers will interact with. Typically, a software development project involves the following groups:
The project organization section allows teams to increase transparency. All participants know who works on the project and are aware of everybody’s responsibility. If there’s a bottleneck, you’ll have no issues with tracing the responsible team member.
This section of a software development plan describes the stages of the software development project, estimates the workload , and provides estimates.
The management section of a software development plan should be constantly revisited throughout the project. The team’s estimates, resources, and deliverables will likely change, and software development plans should reflect these shifts. However, it’s crucial to keep the first version of the document intact, so stakeholders can always point at initially planned objectives.
Read more about the most common software development strategies and take a look at benefits and drawbacks.
This section describes actions and approaches that the team and stakeholders will take to oversee the quality of the project and the team’s efficiency. It’s important to define your metrics beforehand, so all members know what they agree to. Here’s a checklist for planning project monitoring – and a software development plan example .
After the development process is finalized, the cooperation between developers and the product owner rarely ends. Technical assistance will likely be required throughout the entire lifecycle of the product . A trustworthy software development partner understands this and documents this process in a software development plan – long before starting the project.
Having a detailed plan on maintenance, support, and documentation practices allows product owners to avoid vendor lock-in. The software development team should describe which information and assistance they will provide to the owner.
Setting up a clear algorithm for further support of the project ensures its long-term viability and scalability.
Obviously, things can go wrong as early as at the planning stage. Some aspects of development can’t be objectively defined before the team actually starts working on the project, whereas others require experience. If you’ve never written a software development plan, take a look at these most common software development risks . In our experience, these are the issues that typically sabotage planning – but the good news is that most of them can be avoided.
A software development team should emphasize that there’s no 100% certainty in cost and time estimates. If a vendor promises to deliver everything at some definite time and on a budget, chances are, these experts lack experience in planning. A trustworthy team always takes margins of error into account.
The size of the project is another crucial aspect that influences the success of a plan. When a team is preparing documentation for large-scale projects, they only see a bird-eye view of the project. The more stages there are in the project, the more bottlenecks can occur. A dead-end on one development phase will cause a delay in another one. It’s a natural process that needs to be taken into account.
A software development plan has to be revisited all the time. When developers and business analysts create software development plans, they still lack a full understanding of project specifics. During the projects, the team’s and owner’s vision of the project can change dramatically. It’s necessary to rewrite a software development plan and make sure it always suits the latest project needs.
Make sure never to skip user research and direct communication. Defining your target audience and talking to potential clients is the key stage of successful software development planning. If the project’s scope and requirements didn’t undergo user validation, you risk developing an irrelevant solution.
If a software development team cooperates with external teams, they should also be included in the process of software development planning. Ideally, the goal is to organize a meeting where all members, internal and external, are present. Having at least 1-2 common calls will help you keep everyone in the loop and understand their vision of product development. Getting everyone up to the same speed early on will help avoid conflicts and miscommunications at the later stages.
To succeed in software development planning, you just need to follow standard best practices. They are very feasible – you won’t need much time to incorporate them into your cooperation, but in the end, these details will make a difference.
Creating the entire plan in one sitting is an impossible mission. You will need to break the process down into manageable chunks. We suggest using a module system: define each section as a module and assign responsible team members. Set a deadline for each module and make sure that all teams are transparent about their work scope.
Research is an indispensable process during software development planning. The results of market research, user reviews, interviews with focus groups, and analysis of similar projects should be available to all team members in real-time. If there are updates, all members must receive them simultaneously.
Software development planning is an ongoing process. The scope of priorities of software development is constantly evolving. Software development has to be relevant, which is why the team needs to revisit it on a regular basis. Be sure to keep the previous versions as well, just in case there’s a dispute during the project. You can use color codes to keep track of different versions – take a look at software development plan examples .
After the feature has been defined as done, a team has to test it on actual users. The findings should be reflected in a software development plan. Interactions with users might inspire the team to shift focus from one developmental approach to another or highlight a need to acquire new resources. All these changes have to be documented in the plan.
Software development planning is just as impactful as the development itself. It sets a foundation for your product’s success and provides the team with an opportunity to introduce stakeholders to their methods, methodologies, and standards. It’s a long-term investment: a software development plan will be one of your main documents for years. You can even reuse approaches in other projects and for other products.
At Jelvix , we take software planning seriously. Our goal is to provide clients with objective project estimates, risk evaluation, cooperate with potential users, and define tangible metrics for evaluating project success. Our business analysts and project managers would be happy to share their insights – just drop us a line with a brief description of your project’s scope.
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How to choose your own software development journey.
CEO and cofounder of ZirconTech , pioneering web3 and web development since 2016.
Embarking on a new project is more than an innovation quest; it's a strategic endeavor where early decisions, notably selecting a software development approach, significantly influence the project's course. Three primary strategies stand out: no/low code development, custom app development and off-the-shelf software, each presenting unique advantages, challenges and ideal scenarios.
For instance, the no/low code development sector is witnessing a significant rise. A Gartner report forecasts that by 2024, low-code platforms will facilitate more than 65% of application development activity. This trend underscores a shift toward more accessible and efficient software development practices, marking a notable evolution in how businesses approach software development.
On the other end of the spectrum, custom app development offers a domain where every nuance of a project's requirements is precisely met, crafting digital solutions that fit like a glove.
Meanwhile, off-the-shelf software stands as a ready vanguard, providing ready-to-deploy solutions that accelerate the project initiation phase, which enterprises often employ to gain a quick market foothold.
The journey through the digital domain is full of strategic decisions, each with far-reaching implications. As ventures set sail on this digital expedition, the choice of the software development approach becomes a compass, guiding them through uncharted territories toward a horizon of success and growth.
No/low code development epitomizes rapid deployment. Its hallmark lies in accelerating the development process, keeping budgets lean and allowing for quick alterations as project dynamics evolve, a fact underscored by Forrester (paywall).
However, it may present hurdles when faced with niche functionalities or scaling requirements. For instance, a startup might employ this approach to test a market hypothesis swiftly but may later transition to a custom solution as the need for scalability emerges.
Custom app development, conversely, is synonymous with meticulous tailoring to meet intricate project requirements. It excels in high customization, future-proofing and facilitating unique features, as InfoQ highlights.
The flip side entails a significant investment of time and finances and a requirement for skilled developers. An SME in the retail sector seeking to devise a unique loyalty program exemplifies an ideal use case where off-the-shelf solutions fell short, and a custom-built application provided the needed market edge.
Commercial off-the-shelf software (COTS) provides a quick start with pre-built solutions. As 18F outlines , COTS excels in potentially short timelines from acquisition to usage, no long-term maintenance requirements that often accompany custom solutions and sometimes minimal or no hosting concerns, especially if the COTS is cloud-based.
However, its generic nature and rigidity could challenge meeting exact project requirements. A narrative of a large corporation swiftly deploying a COTS project management tool and later scaling it up through additional licenses as the project expanded depicts its practical application.
These software development approaches, with distinct trade-offs, cater to a broad spectrum of organizational needs. A reasonable choice among these, aligned with project goals and industry trends, sets the stage for a smooth voyage through the digital expedition, ensuring alignment with strategic goals and industry dynamics.
The alignment of software development approaches with varied industry demands significantly affects project success, with no/low code development notably speeding up digital transformation. On the security front, the choice of software development approach significantly impacts cybersecurity posture. Custom app development excels here, providing robust security features tailored to specific standards, though it requires substantial expertise to embed security throughout the development process.
Commercial off-the-shelf software, with its pre-designed framework, often carries established security protocols. Yet, its one-size-fits-all nature might not measure up to unique security needs or newly emerging threats. Organizations can bolster the security of COTS by integrating additional protective layers, like intrusion detection systems or firewalls.
Conversely, the rapid development enabled by no/low code platforms might harbor security challenges. The layers of abstraction from code could inadvertently mask security loopholes. Mitigation strategies include choosing platforms with robust built-in security features and adhering to low-code development best practices.
A discussion on Microsoft's Power Apps illustrates how integral features like data loss prevention policies and audit log capabilities can fortify data integrity and security within low-code platforms.
Each software development approach carries its own set of security deliberations. By meticulously understanding and evaluating these, enterprises can make enlightened decisions that resonate with industry requirements and uphold cybersecurity standards, fostering a secure and resilient digital setting.
The journey of digital solution development goes beyond deployment, encompassing crucial maintenance and support for long-term sustainability. No/low code development, with its simplified framework, usually eases upkeep and regular updates, keeping the software up-to-date with less effort. However, finding skilled personnel for support, especially during complex issues, might pose a challenge.
Custom app development, on the other hand, presents a different narrative. Its bespoke nature demands a dedicated maintenance and support team capable of addressing unique challenges that might arise over time. While this approach might necessitate a substantial investment in skilled personnel, it often results in a robust support structure capable of navigating the intricate web of custom-built software.
Commercial off-the-shelf software (COTS) typically has vendor-provided support and regular updates. Even with this, the level of customization and the ability to address unique challenges might be limited, often requiring additional investments in third-party support or customizations to bridge the gap.
The longevity and support of a software development approach are as crucial as the initial development, portraying it as a marathon rather than a sprint. Exploring these approaches emphasizes making well-informed choices beyond immediate project needs, aligning with long-term goals, industry trends and evolving cybersecurity threats.
The choice of software development approach is a compass guiding enterprises through the labyrinth of digital transformation. It beckons a meticulous evaluation of the present needs and foresight into the future, ensuring the chosen approach stands the test of time, aligning seamlessly with the enterprise's trajectory toward growth and innovation.
The voyage through the digital domain is laden with decisions, each carving the path toward success or failure. Hence, a prudent, well-informed choice in selecting a software development approach, aware of the maintenance, support and security implications, is not just advisable; it's imperative.
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Are you about starting a software development company? If YES, here is a complete sample software development business plan template & feasibility report you can use for FREE . A software development company is where software is not only developed but distributed for different purposes such as instructional, learning, calculation, entertainment, and assessment purposes.
Before one can start a software company, there are basic things that one needs such as a knowledge of programming, technical support skills, the necessary experience at managing a company and funds. However, before starting a software development business, it would be best to conduct a thorough market research of the industry
The software development industry has grown in the space of a century from an almost on-existent industry to one that is not only a billion dollar industry but an indispensible one, especially as software form the basis of modern gadgets and devices.
Between 2011 and 2016, this industry has been dynamic in growth, especially as there has been increasing demand from businesses and consumers, with more people spending their discretionary income on products such as video games.
The industry is being said to generate $205 billion and has a projected annual income of 3% from 2011 to 2016. There are more than 8,500 software development businesses in the united states of America that employs more than 455,000 people.
Globally as at 2013, according to Gartner, the software revenue was $407.3 billion which was a 4.8% increase from the #388.5 billion registered in 2012. The industry according to Forrester was projected to be the fastest growing in 2014 with a growth pegged at 7.1%.
The software development industry has room for growth as there is considerable demand in this industry with more businesses adopting software programs that will allow for improved efficiency and lower operating costs; this was so as to look for ways to not be affected by the economic downturn.
Cloud computing capabilities have created several advances for companies who have realized the positive effect of virtual offices and the savings implications for the company. This technology has helped companies to not only reduce overhead but increase productivity as well.
Another plus for companies are virtualizations which not only allow them to eliminate several server farms but has made IT infrastructure more economical and flexible while slashing operating costs.
There are moderate barriers for new businesses that wish to enter this industry; however, certain product segments have a higher barrier than others. One common thing in this industry is patents which serve as a means of limiting competition, even though some companies willingly license their patented technology.
Doodle Tech Inc. is a leading software development business that is based in Market Street, Suite 800, San Francisco – California, USA. We are in business to develop software for general purposes and for specific purposes to our various clients. We have in place training services and we also offer technical support in line with our business.
Our location is very strategic in the sense that we are close to manufacturing firms as well as technology giants and other big businesses here in California that will ensure that we have an edge over other software companies in other parts of California.
We are in business to not only make profit but to also compete favorably against other software development companies in the industry and attain our vision of being the preferred software development company for clients all over the United States of America.
We intend to ensure that we demonstrate fair business ethics in every point of our business. We hold ourselves accountable for our high standards and ensure that all our employees are not only attuned to but display this standards at all times in order to positively promote the company.
As a result of this, we are willing to go the extra mile by putting in structures, processes and planes in place to ensure that we get the best professionals who not only have the expertise but are also competent and know how to take our company from where we are to where we intend to be.
Our employees have welfare packages that are currently amongst the best in the whole industry amongst similar start-ups such as ours. We have also provided a conducive environment for all our employees in order to ensure that they remain productive at all times in order to improve the bottom line of the company.
We offer excellent customer services that have been known to retain a high number of our clients. All our customer service executives have been trained to know how to respond to customers and are also updated as regards the industry trends in order to ensure that reliable information is passed to our clients.
Finally, the expertise of both our owners, Jack Taylor and Christopher Warden in software development and business management is a great plus as both are not only Harvard graduates but also have more than 30 years of combined experience that will ensure that Doodle Tech Inc. attains its goals and objectives in time.
Doodle Tech Inc. intends to deal in several services whilst also generating revenue that would boost our bottom line tremendously. These several services will be added to our core service and should keep us favorably disposed to compete against our competitors.
We however intend to ensure that all our multiple sources of income which include training and technical support are in line with what is obtainable in the industry and accordingly to the laws of the United States of America. Therefore some of the services and products we will engage in are;
Our Business Structure
We know how important it is to have the right business structure for our software development company as getting it right from the start will eliminate most hitches that will crop up relating to our structure during the course of running the business. For this purpose, we intend to hire only competent and professionals in the available positions in our company.
Due also to the fact that we intend to run a wide range of services, we intend to ensure that we employ those that are capable of filling in these different positions. All our employees are those who understand the industry well and who are attuned with our vision and are committed to ensuring that we attain these goals and objectives.
We are also prepared to ensure that our workers are well paid and have welfare packages that are the best in similar categories across start-ups such as ours in the industry. We will also ensure that the working environment is not only conducive but is one that will enhance their skills and make them more productive.
Below is the intended business structure for Doodle Tech Inc.;
Chief Executive Officer
Software Development Manager
Business Development Manager
Human Resources and Admin Manager
Customer Service Executives
Marketing Executives
Security Guard
In order to determine if we were engaging in the right concept for our business, we hired the services of brand consultants who were not only reputable but the best here in San Francisco – California to let us know if it was worthwhile going into the business now.
The business consultants took a deep look at our strengths, weaknesses, opportunities and threats to allow the know what we were likely to face starting and running our business here in San Francisco – California, and in the United States of America as a whole. The results of the SWOT analysis that was conducted on our behalf are as follows;
Our strengths are numerous and lie in the fact that we have the right business structure that will ensure that we conquer this industry. Our software developers are the best there is and have the expertise and experience to enable us attain our goals and objectives.
We are also involved in ensuring that our software pass through quality process, reason we have external testers who run several tests on any of our software before it is released. Finally, our owners have the necessary experience that would make our being at the top a piece of cake, as both have more than 30 years experience in the software industry both as developers and in managerial positions.
There are few weaknesses that we identified for Doodle Tech Inc. and they include the fact that we were going to develop software that were not really different from what our competitors were offering. Also, there is the other fact that we are located in an area where there are other software companies, making our location a bit saturated.
We are however confident that we would be able to battle whatever weaknesses might crop up during the course of running or starting the business.
There are so many opportunities available to us as there are new market segments that we have identified which would likely generate money for us. There are so many strategic alliances which we would engage in so as to have a foot into other target markets and generate more revenue for our bottom line.
We also have the opportunity of moving into the international market as our software is such that has no boundary limits. Finally, we would fully tap into the internet in order to promote and increase awareness for our brand.
Threats are external factors that cannot be controlled by a business; however any serious business should not only be prepared for threats but also have ways by which these threats will not be allowed to totally affect the business.
Some of the threats we would likely face at Doodle Tech Inc. are; the arrival of a new competitor into our location, engaging in price wars with competitors, dealing with government policies that might have an effect on our industry. We are fully prepared for any threats we are likely to face, as we have strategies on ground to battle such threats.
The trend in the software industry is that most software firms or companies are located in clusters in identifiable locations. This is due to certain facts such as these companies wanting to be close for competitive and industry purposes and also most software companies depend on one another to be able to carry out certain functions or complete certain specific tasks for clients.
This does not however mean that there aren’t software companies in other locations or that software companies in these other locations cant still get jobs done. To however remain relevant, software companies must always remain innovative and unique in their offerings and services. Another trend with software companies is in its publicity and promotion activities.
To be able to attract the much needed awareness and also attract clients that would pay money for the firms’ products, software companies have engaged in strong promotional activities either by hiring brand consultants or getting an in-house team or deploying both methods to draft the strategies that would enable it be recognized in the industry. Intense promotional activities will also help in getting a huge share of the market.
Lastly, software cannot work without any device and so goes hand in hand with new or existing technology; which is why most software companies try to partner with technology firms so as to create new software or upgrade existing software for these firms. This goes to show that software industry is dependent on the technology and manufacturing industry in order to survive or thrive.
Almost everyone makes use of software and have either bought directly from the developers or indirectly via owning a device. This means that the target market for any software development company is wide. We however have mapped out a strategy that would allow us gain a vital share of the target market.
One of our first strategies is in conducting a thorough market research that would enable us understand the market we are to go into and know what they expect from us and what our obligations are towards them. The result of the market research of the market research showed that we were in business to develop software or offer other kinds of related services to the following people;
Our competitive advantage
Just like any other business that is established to make profit, we hope to be able to compete favorably against our competitors in the same industry. Our vision is to be the preferred software development company for our clients all over the United States of America and to achieve this, we intend to come up with competitive strategies that would enable us attain our goals and objectives.
We intend to ensure that the software developed for general purposes will come in different categories that will be convenient for all our users.
We have assembled a high team of software developers as well as management team who are not only highly experienced and who understand how to handle a start-up and make it become a force to be reckoned with nationally. Our staffs are also attuned to our core values and principles and understand the importance of projecting the image of the company positively to our customers – potential and existing.
Another competitive advantage that we have to our favor is our excellent customer service culture which is already resounding across the industry as one of the best of start-ups of our size. Our customer executives are highly trained and are always updated on industry trends so as to be able to give our customers the correct information at all times.
Finally, because we know how important it is for our employees to be happy always, we are committed to treating them right. Our management team has a stake in the company’s profits and our lower cadre employees have incentives built into their welfare packages. All this is to enable our employees remain happy and productive.
Doodle Tech Inc. just like any other business has been established with the aim of generating revenue and making profit in the technology and software industry, and we are going to ensure that we make software that will help us accomplish this purpose, as well as engage in other services as well.
Doodle Tech Inc. therefore intends to generate income by engaging in the following services;
The software industry has come to stay and can only keep evolving into something bigger and stronger, as there will always be gadgets, devices and templates that would require the use of a new software or an upgrade.
Our strategic location in San Francisco – California has afforded us the opportunity to be close to many technological giants and businesses and this will see us generating and meeting our set revenue in no time, thereby growing our business tremendously.
After conducting a thorough analysis on the software industry and analyzing our chances in the industry, we were able to come up with a sales forecast that has shown strong positives in how we are likely to far in the market.
The sales projections were based on several assumptions and facts garnered across similar start-ups in the industry and across the United States of America as a whole. Therefore, the sales projection that Doodle Tech Inc. conducted to analyze its chances are as follows;
N.B : The above sales projections were done based on major assumptions that some factors that were used in making these assumptions would remain the same. However, should there be any change either positively or negatively, it would likely increase or decrease the above figures.
Marketing is a very important aspect of any business because it is not only a way to generate revenue for a business; it is also a way of garnering publicity to attract new customers whilst retaining the old ones. Every business no matter its level or life cycle of needs marketing in order to thrive, which is why any entrepreneur or business person starting or running a business usually sets money aside for marketing.
Asides creating funds for marketing, it is also important to ensure that effective strategies are created. Creating effective marketing strategies are essential as they would ensure that the funds are channeled the right way. In marketing Doodle Tech Inc., we would ensure that we leverage on all conventional and unconventional means of making sure that our brand and products are marketed to all our existing and potential customers.
We would conduct a market survey that would allow us understand the right strategies to draft and how effective they would be depending on the target market. To conduct a thorough market survey, we would make use of accurate available data so that we would be effectively able to compete with all our competitors all over the United States of America.
We also intend to hire a reputable marketing consultant who should be able to draft the right marketing strategies that would allow Doodle Tech Inc. penetrate the market. Also, our marketing team would be empowered in ensuring that the marketing strategies created are in tune with our corporate goals and objectives as a business.
Therefore, the following are the marketing strategies we hope to adopt at Doodle Tech Inc. in order to sell our products and services;
Carrying out the right publicity and advertisement for our software development business is very essential as it is not enough to just penetrate the market and also create awareness, but to ensure that the strategy will result in Doodle Tech Inc.’s products becoming generic terms for similar products in the same category.
Due to this vision, we have hired a reputable publicity consultant who has the industry knowledge and expertise and who will help in ensuring that our company gets to the top by drafting out strategies that are in line with the core policies of the company and will boost our brand and allow us compete favorably against our competitors.
Below are some of the platforms we intend to leverage on in order to promote Doodle Tech Inc.;
Determining the right price for our various software’s will depend on a number of factors, such as how much the market will willingly pay for such software, how much that category of software is being charged for by competitors, and how unique the software is. Other factors that will determine the prices are if we intend to charge a licensing fee for our software, or enable a pay per transaction or a subscription that is time-limited for the end user.
In view of all the above based factors, we will offer our software at prices that are at the prevailing market conditions. However, because this is a competitive market, we will however lower our prices in the first two months of business so as to attract more customers to our business, and also increase the awareness for our products.
Doodle Tech Inc. realizes that due to improving technology, customers now have different payment options that they can use in paying for services; and so we have different payment policy that is intended to suit all our different customers and their diverse needs.
The payment options we have for our clients are;
The above payment platforms were carefully chosen for us by our bank and we have been told that our customers will not experience any hitches or inconvenience whilst using the above platforms.
Even though some of the equipment that can be used to start and run a software development company can be gotten for fairly used, thereby lowering the costs of start-up, it will however be vital to stress that setting up a standard software development company would require the equipment used to be standard so as to be able to withstand the heavy workload that it might have to carry out.
Also, the bulk of capital in these circumstances usually goes to paying workers and utility bills that the business will incur during the course of its operation. Therefore, the key areas where we intend to spend our start-up capital on are;
From the following report, we would need an estimate of $300,000 to be able to start and successfully set up a software development company in San Francisco – California. IT should be noted the bulk of the capital (90%) went towards payment of salaries for employees for a period of three months.
Generating Funding / Startup Capital for Doodle Tech Inc. Business
Doodle Tech Inc. is a business owned by two geeks and businessmen, Jack Taylor and Christopher Warden. We realize our financing is important for our company if we intend to successfully start, run and become a force to be reckoned with in the industry.
We are however going to be careful in where we source for money so as not to lose a part of our company or get locked in repaying a loan that might hinder the progress of our company. This is why we have decided to limit our sources for income to just 5 sources; The following are sources where we intend to get our start-up capital from;
N.B: from our personal savings and the sale of some of our stocks, we were able to generate the sum of $30,000. The soft loans from our family members and friends amounted to $20,000. We applied for a grant of $50,000 at the state level and have been considered.
We were able to generate the sum of $70,000 from sourcing for funds from kick starter, and we are at the final stages of getting our loan of $130,000 approved for us by the bank. All the necessary documents have been signed and we have been assured by our banker that the amount will soon be credited to our account within two weeks.
Doodle Tech Inc. is established with the aim of making profit and competing amongst others here in the software industry. We are however concerned about the future of our company and so we intend to ensure that we deploy sustainability and expansion strategies so as to keep our business running for a long time.
One of the sustainability strategies which we intend to deploy is in having the right business structure on ground. This we intend to do by hiring competent and professional employees to handle the various tasks that we will assign to them.
We will employ those who understand what businesses such as ours will need to thrive in the industry and the know-how to ensure that we attain our desired goals and objectives. Our employees will not only be well paid and have attractive incentives, they will also continually be trained so that their skills would be enhanced thereby increasing productivity for the company.
We would draft effective publicity and promotional strategies that would ensure that the awareness for our brand and its products are increased to potential and even existing customers. Our promotional efforts will be geared into ensuring that our brand is positively communicated to even our rivals in the industry.
Most of our publicity strategies would be geared towards the millenials by throwing up contests especially on social media as these have the potential to ensure that awareness about our brand is effectively spread even to the baby boomers.
Finally, we take our customers very seriously and to this effect we intend to ensure that we have effective customer service programs which will see our loyal customers getting incentives.
We also would ensure that we attend to all customer enquiries whilst also making sure that all their complaints are resolved speedily depending on the problem. We know that if we carry out these strategies effectively, we would not only push forth our brand but also sustain our business whilst also expanding it at our own pace.
Check List / Milestone
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The IT industry is a strategic segment of the Russian economy, as its growth rate exceeds the GDP dynamics, and this trend is likely to continue in the future. Further development of the IT industry requires skilled professionals, which the government relies on increasing the number of students receiving education in IT and by involving experienced local business mentors and foreign experts.
Discover Top IT Companies in Russia specialized in Software Development including Mobile App Development, Blockchain, IoT Development, Cybersecurity and more.
Software development is the service of creating custom software applications for specific business requirements. This process involves designing, developing, testing, and releasing the applications. Useful in this regard are programming languages, frameworks, and other different methods that are used to ensure the creation of robust software that will handle a large number of users. Software development includes many specific services such as Custom Software Development, Web Application Development, Mobile App Development, Software Testing and Quality Assurance, Software Maintenance and Support, E-commerce Development, Cloud-based Solutions, etc.
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The IT industry is a strategic segment of the Russian economy, as its growth rate exceeds the GDP dynamics, and this trend is likely to continue in the future. Further development of the IT industry requires skilled professionals, and the government relies on increasing the number of students receiving education in IT by involving experienced local business mentors and foreign experts.
One of the key objectives of IT public policy is the creation of favorable conditions for the active development of technological entrepreneurship in Russia, including
the introduction of tax reform and ensuring the availability of grants to finance promising ideas. The number of successful IT-related business projects and contracts in the venture capital market is increasing.
The market of information technologies in Russia forms due to the activity of the companies of the following segments: computer and network equipment, software, and IT services. The continuous development of the sector and new innovations made Russian companies key players access the region and develop IT & software solutions for the internal market as well as businesses that are interested in the Russian digital market.
Due to the accent, the Russian IT professionals put on cybersecurity, the demand for these types of services and products has known growth from foreign companies, according to a study made by T Advisor in 2019.
Bans and restrictive legislation keep Russian IT companies to speed up the growth process of the entire industry and restrain them in exporting digital services and goods. This is one of the reasons why many Russian companies relocated to places with a more accessible market, to the west in Europe or to the south, in China.
Another thing is worth being aware of is the technical skills of IT specialists from different regions of the country. Since the talent is not equally distributed to all regions, many Russian IT companies lack experience and professionalism in communication and project management which may be a challenge for potential clients.
The specific taste of doing business with Russian companies remains nothing more than the ‘90s stereotype but nonetheless plays an important role in conceiving IT companies and startups as reliable.
In their struggle of combatting the stereotypes, many Russian web agencies and IT companies explored other ways of cooperation and attracting customers, including by lowering the prices and offering additional services compared to what Western IT companies and web agencies do.
When it comes to neighboring countries, the Russian IT industry finds it in an interesting position. With China as one of the biggest IT players in Asia and an open Ukrainian market to the west, Russia has not had too many choices to handle mainly the internal market - which creates enough demand for local web companies. This has led even to several attempts to “disconnect” from the World Wide Web network and create their own independent one. However, most IT specialists consider that the Russian IT industry will not be able to exist without a connection to the global market.
Software development is the service of creating custom software applications for specific business requirements. This process involves designing, developing, testing, and releasing the applications. Useful in this regard are programming languages, frameworks, and other different methods that are used to ensure the creation of robust software that will handle a large number of users.
Software development includes many specific services such as Custom Software Development , Web Application Development , Mobile App Development , Software Testing and Quality Assurance, Software Maintenance and Support , E-commerce Developmen t, Cloud-based Solutions , etc.
According to Statista , revenue in the Software market is projected to reach US$659.00bn in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 5.42% from 2023 to 2028.
The importance of Software Development Services is obvious. This results in:
Productivity increase;
Improving the user experience
Increasing efficiency and productivity
Providing solutions that can scale as the business grows;
Ensuring data security and preventing unauthorized access
Selecting the right software development company to partner with can be a difficult task. That's why, it's good, when you make this choice, to consider the following aspects:
Expertise and Experience of the company in delivering similar projects successfully.
Check Portfolios and References to get an idea of their reputation and the quality of their works
Evaluate the technical skills and qualifications of the development team.
Communication and Collaboration are key to a successful partnership.
Discussing costs and budget is important to avoid unexpected expenses.
Timely delivery is crucial to avoid unnecessary delays.
It's important to have ongoing support, bug fixes, and updates once the software is deployed.
By carefully considering these aspects, you can make an informed decision and select the right software development company, because it can rightly be said that Software Development Services represent an investment for long-term success . And it doesn't matter if it is a small startup or a large enterprise, software development can have a positive impact on your business.
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Agile Business Solutions Ltd was declared the winning bidder after being successful in all the stages and quoted a Sh854.7 million fee.
By Sam Kiplagat
Court Reporter
Nation Media Group
The National Government Constituencies Development Fund (NG-CDF) Board has been cleared to procure a Sh854.7 million software after the procurement watchdog dismissed a review filed by a losing bidder.
The Public Procurement Administrative Review Board (ARB) dismissed the application for review by GreenCom Enterprises Solutions Ltd for lack of merit and directed NG-CDF Board to conclude the tender, which was awarded to Agile Business Solutions Ltd.
“The respondent be and is hereby directed to proceed with the tender No. NG-CDF/RFP/02/2023-2024 request for proposal to undertake supply, installation, implementation, testing, training, commissioning and maintenance of an integrated NG-CDF Board Enterprise Resource Planning (ERP) Solution to its logical conclusion,” said the board chaired by George Murugu.
The NG-CDF board invited bidders for the supply and installation of the software to be used to manage key operations and five bidders responded by the close of the tender in June.
The firms that submitted their bids are Impax Business Solutions Ltd, Attain Enterprise Solutions Ltd, GreenCom Enterprises Solutions Ltd, Kingsway Business Systems Ltd and the winning bidder Agile Business Solutions Ltd.
At the evaluation stage, three tenderers were found to be non-responsive while GreenCom Enterprises Solutions Ltd and Agile Business Solutions Ltd were allowed to move to the next stage.
NG-CDF Board supply chain manager Shafee Yaqub Mohamed recommended the firm be awarded the tender, but GreenCom challenged the outcome saying it was unfairly knocked out by being denied marks in some stages.
The NG-CDF Board said the company was successful at the preliminary stage and mandatory technical requirements but failed to meet all the requirements in the technical capacity evaluation stage.
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Business continuity planning software can help organizations create a plan that automates time-consuming processes and accounts for critical aspects such as regulatory compliance..
Developing a business continuity plan can be an overwhelming task, particularly for larger organizations. Business continuity plan software can help ease the process.
Business continuity encompasses the processes that get an organization back to normal operations after a disruption. Depending on the industry, the amount of downtime a business experiences can result in loss of reputation or even legal action from customers. Organizations can manually create business continuity plans , but might not want to risk the possibility of human error in a critical process.
Business continuity software does more than just outline the details that need to be included in an organization's planning effort. It can help identify key risks and existing single points of failure within the organization's operations. A good business continuity plan software package can help the organization maintain regulatory compliance as well as automate some of the more time-consuming tasks associated with the planning process, such as gathering data with a business impact analysis .
The sections below outline some of the more prominent software options for risk management. While some of these options might best be described as full-blown business continuity plan software suites, others focus on specific aspects of the business continuity planning process.
The following list is based on the writer's research and professional insights into the business continuity and disaster recovery market. In choosing featured vendors, the author focused on ease of use and range of features.
This list is unranked and published in alphabetical order.
Agility Recovery specializes in helping businesses acquire the resources they need in times of crisis. This might include replacement IT hardware or fuel for generators. In addition to business continuity testing and tabletop exercises, the company also offers Agility Planner.
Agility Planner is designed to be easy to use and helps organizations create a business continuity plan. Where possible, these plans are prepopulated, using the organization's own data, all with an eye toward maintaining compliance. A built-in reporting engine makes it easy to generate reports on the organization's emergency preparedness.
Agility Recovery does not publicly disclose pricing information.
Archer Engage might best be described as a collaborative platform that is geared toward risk management. The idea is that to be effective, risk management practices must be adopted throughout the organization, and Archer Engage provides a way for stakeholders to participate in the risk management process.
Risk management is all about balancing the potential financial impact of risks against the cost of mitigating those risks . Archer Engage provides decision-makers with information about the potential economic impact of various risks as well as an analysis of risk prevention options.
Archer does not publicly disclose pricing information.
Everbridge provides business continuity planning software, but also focuses on workforce safety, IT-related disruptions, physical security and public safety.
Everbridge provides options for developing business continuity plans, particularly for retail and manufacturing. Everbridge has designed its software so that business continuity plans become part of an end-to-end protective tool revolving around an interactive dashboard that provides risk intelligence. The company also offers a mass messaging feature designed to deliver notifications to employees who are affected by an incident.
Everbridge does not publicly disclose pricing information.
Fusion Risk Management provides risk management software options, but also focuses on operational resilience, third-party risk management, IT and security risks, crisis and incident management, and business continuity management.
The company's business continuity management software, Fusion Framework System, works by charting all of a business's processes. This helps the software map dependencies and identify business impact tolerances . The software also enables organizations to perform what-if analysis and various exercises as a way of improving operational resiliency . Recently, Fusion Risk Management also integrated generative AI-powered assistants as an additional tool that customers can use in the resilience planning process.
Fusion Risk Management does not publicly disclose pricing information.
LogicManager is designed to act as a comprehensive enterprise risk management suite. Business continuity is only one of the software's core functions. The software also helps with IT governance and cybersecurity, third-party risk management, compliance, internal audit management, financial controls and HR risk management. Users can manage all these areas through a central risk management hub.
Because LogicManager is designed for enterprise use, risks can be defined on a per-location basis; for example, an organization might have one location that is especially prone to flooding. LogicManager also provides native integration with more than 500 business applications, making it easier to work with an organization's existing data.
LogicManager does not publicly disclose pricing information, but the company does offer a 90-day free trial.
Riskonnect Business Continuity Management software is designed to assist organizations with disaster readiness.
Riskonnect's software is based around a series of KPIs and enables businesses to experiment with various what-if models. Perhaps more importantly, Riskonnect detects hidden vulnerabilities that an organization has not addressed. It also automates the review, update and approval cycle. This process is critical, since without regular reviews, business continuity plans quickly become outdated.
Riskonnect does not publicly disclose pricing information.
Brien Posey is a 22-time Microsoft MVP and a commercial astronaut candidate. In his more than 30 years in IT, he has served as a lead network engineer for the U.S. Department of Defense and a network administrator for some of the largest insurance companies in America.
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COMMENTS
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Explore a real-world computer software business plan example and download a free template with this information to start writing your own business plan.
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Writing a startup business plan is a complex process for which you need to be prepared. We'll reveal everything you need to know to make a software startup business plan.
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
If you can't get your head around a business plan template, business planning software can help. If drafting a business plan from scratch sounds too daunting to tackle on your own, business plan software offers everything you need for business plan creation, including financial reports, sample business plans, how-to articles, and more.
Software development plan describes the project from the very first stages to post-release maintenance. Check out our guide on how to create project plans.
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The industrial discussion shows that developed business plan is useful for the software companies. It also reveals rather well the practical order how industrial managers are running their businesses.
So, what is that recipe for planning perfection? Like bread and pastry, every business plan has some flair of its own, from custom graphic design to unique financial information.
The journey of digital solution development goes beyond deployment, encompassing crucial maintenance and support for long-term sustainability.
A Sample Software Development Business Plan Template Are you about starting a software development company? If YES, here is a complete sample software development business plan template & feasibility report you can use for FREE. A software development company is where software is not only developed but distributed for different purposes such as instructional, learning, calculation ...
MoSCoW method. The MoSCoW method is a prioritization technique used in management, business analysis, project management, and software development to reach a common understanding with stakeholders on the importance they place on the delivery of each requirement; it is also known as MoSCoW prioritization or MoSCoW analysis .
Schedule a few minutes with us to share more about your product roadmapping goals and we'll tailor a demo to show you how easy it is to build strategic roadmaps, align behind customer needs, prioritize, and measure success. Everything you need to align your team and share your product story: roadmaps, prioritization, integrations, and more.
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The NG-CDF board invited bidders for the supply and installation of the software to be used to manage key operations and five bidders responded by the close of the tender in June.
The company's business continuity management software, Fusion Framework System, works by charting all of a business's processes. This helps the software map dependencies and identify business impact tolerances. The software also enables organizations to perform what-if analysis and various exercises as a way of improving operational resiliency ...