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This three year business plan summarizes the strategy forÂ sales of software planning solutions to medium-to large sized companies. WebArk (WA) will behave as the direct sales support of a software developing organization established in Sydney. WA anticipates a high degree of profitability based on this plan to focus in on companies that have previously communicated the necessity for such services and products to the software developers. WA management is proficient in dealing with corporate decision makers and our partner's reputation will be the based on our success.
The services and products WA offers includes business planning software tools, software developing, consulting, promotion and training.
WA believes that they can propose top quality services and products to their customers as compared to the substitutes.
This plan will outline market analysis and plans, strategies applied to attract profit and cash flow over the next three years.
Promote a business planning software package to company executives and attain $60,000 in the first year.
Modify the software to the particularized requirements of each customer.
Offer instructions and proceedings services to all customers.
Table - WebArk plan revenue plan
Figure - Highlight of WebArk for the subsequently three years
The employees of WA acknowledge that information is essentialÂ for organization and communicating that information in a professional and easily comprehended structure is critical. WA promotes previously validated and verified third-party software planning tool which willÂ be modified to the customer's particularised requirements. Even though WA identifies the detailed association among success and superiority, WA's accomplishment is eventually reliant on the comfort and efficiency of the employees.
Keys to Success
WA's success depends on the capability to:
Forecast customer requirements.
Amend software solutions to these requirements.
Recognize companies that require planning tools.
WA offers business planning software solutions. WA recognizes companies' planning requirements and collaborates with outsourced developers to generate software to meet these requirements. Even though theÂ software is produced out-of-house, WA promises the customerÂ with the accurate software solution.
The sole founder and the investor of the company is Anik Gupta.
WA's start-up expenses include phone calls, office furniture, letterhead and business cards equal $2,850. WA requires $12,000 cash on hand to provide capital to run the business. These expenses will be invested by the owner till the cash flow takes over. See Figure 2 and Table 2 & 4 below.
Figure - Start-up Outline Graph
Table - Start-up requirements
Table - Start-up Funding
Company Locations and Facilities
The company will be situated in office in North Ryde, Sydney NSW. This location is standard in a business park, as it is nearby to the software developer's services and numerous prospective customer offices. The office area is comfortable and suitable for the employees needs.
Products and Services
WA will offer medium- and large-sized companies with corporate-wide collaborative planning solutions. WA will also provide consulting services by facilitating companies to identify prospects for employing technology to restructure their business progression. Finally, WA will offer comprehensive instructions for the use of solutions obtained from us.
Product and Service Description
WA software products include business planning software package that is validated and verified in the end user market. Furthermore, this product is the top-selling business planning package. The corporate version will be similar to the consumer version nevertheless; it will be tailored to meet the requirements of diverse customers. The product will allow company sales services to employ planning tools to attain remarkable competency in their business development. Fundamentally, sales services will be proficient to compose brief business plans for any customer and via the use of an extranet, allow the customer to collaboratively sketch their individual account. The option exists to tailor the product to perform with other tools such as LotusNotes and the customers email applications.
WA will carry out an investigation of all prospective customers planning schemes and procedures as well as their ability to plan software and information technology. The purpose of this investigation is to certify that all customers obtain a solution that best suits their requirements and aptitude.
WA will offer additional importance to the customers by making sure that all product users are correctly qualified to use the software solutions.
Through the software developer, WA will make available a supplementary product which will provide the customer a devoted service representative, removing the necessity for product renewal.
WA comprises of a qualified professionals with wide variety of skills and knowledge. Most of the business planning tools/solutions will be developed/ modified according to the individual need of each customer.
The consultants will provide the customer with solutions and then the outsourced developers will develop tools according to the customer requirement. The process will be agile methodology and thus constant collaboration with the end user is required. Finally, the sales/IT manger will interact with the customer to explain the working of software package in order to meet their needs.
WA's outsources the software development to a partner developing company in Sydney. This allows WA to provide Australian and reasonably priced solutions and services compared to other competitors. The readily available skills and services give WA more elasticity to meet customers' demands in limited time and at a reduced cost.
Substitute products do not propose a complete package of tools. For example, to get comparable product from another provider the customer would have to incorporate multifaceted spreadsheets, word processing software, instructions and Web based collaboration themselves.
The software package runs on Windows XP 95, 98, 2000, Windows NT, and MacintoshÂ platforms.
Business partners have "hands on" experience with software products. They are confident working with products. Hence s strong working relationship will result in more competitive information as they work with competitive companies as well.
Suppliers have a great deal of power in negotiating the price of their products and services. This is due to fact that the suppliers absorb large amounts of cash from software marketing companies.
Due to large number of competitors substitute are high and pricing for the services is very competitive.
The barriers to entry are very high in this business. Cost to enter in the market is very high.
MasterPlan 2010 has been promoted as the best business planning tool into the Australian National Market. The customers choose the company because of reasonable price and attractive attributes. The customer always searches for the best package deals with high degree of functionality and quality.
In comparison to other companies, WA's advantage is price and the complete package of tools offered. WA focuses on customer specific requirements and modify according to their needs.
MasterPlan 2010 draws the customers only through their reputation. Due to their focus on a range of products they lack efficiency as compared to WA focusing only on providing the best and customer oriented approach services.
A steady economy will maintain the new business entrant rate elevated and thus increase in prospective customers.
Interest continues to stay affirmative for the next few years estimating a stable rate of new business establishments.
Escalating reliance on the Internet will provide all businesses with the necessity of having a more serious interest in real time business planning software solutions.
The world has become tech-savvy and hence it would be a disadvantage not to have a business planner which can be accessed via the real time world wide web.
All the software requires licensing and hence have to be registered and governed by the registration agreement.
WA runs in the business-to-business part of e-commerce which latest research approximates dealings in surplus of $160 billion. WA market is additionally divided into companies with sales services more than hundred people and companies withÂ divisions.
WA divides the market by size of sales services and amount of company sub-units. WA objective customers will have sales operations in excess of more than 100 organizational subdivisions. For the first three years of operation WA will concentrate on companies in the Sydney. Geographically, the office is pivotal to the corporate area and management has acknowledged vital customer connections in this area. Large customers are possibly to profit from the efficiencies of the product offers and will supply fees that will maintain the productivity. Precise statistics for the amount of businesses are difficult to verify, however, the lean structure of the company will permit profit by making at least two new customers per year.
Figure - Market Analysis Summary
Table - Market Analysis table
Target Market Segment Strategy
WA strategy aims:
Medium- to large-size organizations whose sales services offer their customers with schemes that the customer collaborates on.
Large customers that will grant greater revenues from large amount of software licensing sales and better possibility of selling customer interface solution.
The major trend influencing WA is the expansion of business-to-business e-commerce. More organizations understand the necessity to gain from the exchange of information over the Internet and WA products and services depend on this.
The fastest expanding section of the e-commerce is the business-to-business quarter. This section has risen from less than $50 billion to more than $160 billion in three years.
Service Business Analysis
WA's greatest potency and competitive edge is the success of the complete software product. This product is the market leader in sales and consumer ratings. WA's success will rely upon building on those strengths. WA will also rely on its experience working with decision makers at the corporate level.
Figure - Sales Forecast per Year
Table - Sales Forecast
Below is the SWOT Analysis identifying the strengths, weaknesses, threats and the opportunities of WA.
WA offers specialised solutions with additional services and training.
Our products meet the requirements of the businesses
Solutions are flexible and current
Competitive and reasonably priced
Direct sales to maintain relationships with customers
Maintain good contact with customers and outsourced companies - reduces business cost
24/7 support and account advice
Lack of experience of working as a team
Lack of marketing expertise
Lack of Brand recognition
Limited knowledge on how their business can incre.ase through business planning solutions
We can train them
Service oriented provider
Becoming a major business planning software solution in the industry
Seen as a feature only medium to big companies can afford.
New services introduced
Augmented vulnerability which will entail more time and resources being used up on testing software application
Augmented amount of software organizations proposing a reduced price
Legislative and regulatory changes
Protracted acceptance of new technologies and products
Direction and Objectives
WA's mission is to provide High quality business planning software packages for corporations in Sydney at a reasonable price.
To be the top selling business planning software solution
Be the top selling business planning software solution by end of 2011 in North of Sydney
Achieve 5% market share by 2012
Increase scope to west Sydney/Inner Sydney by 2013
The company currently consists of 1 employee with the goal to grow in the next 3 years. Please refer to the Personnel plan for Current and future structure.
WA plans to set standards to be practised within the company in the first year. This will include identifying conventions, using certified services and so on.
In the second year, WA will make sure the milestones for year 1 have been met and review the standards.
In the third year, WA will conduct audits and configuration management processes and reviews to ensure that the software is developed proficiently. This will enable advancement on quality of the solution.
WA will collect regular feedback at the end of each product and service sale in order to get a rating for the likable and unlikable aspects of the solution/service. The results will be used to perfect the customer service will increasing workload.
WA is a small office with only 1 employee as the developing is outsourced. The office has 6 cabins, Tea room, conference room and toilets on the same level. This is because WA may expect to expand from one to 6 employees but after 3 years of establishment and success.
Currently, there are no plans of national expansion either.
The employee will have personalised desktop, laptop, telephone, software licences, conferencing equipment, internet connection, fax facilities and projector for presentations.
One of the factors that could cause lack of reliability is reduce performance due to limited knowledge/skills, personal problems etc. Training can be provided budgeting time and resources. The owner will contribute solely towards the success of the company.
Secondly, not meet the deadlines can be significant factor that can cause the uphill or the downfall of the company. WA will focus on fast and efficient solution delivery which will be constantly measured with planned time on the contracts.
WA plans to maintain schedules, budget, and communication through Open source softwares such as Online Microsoft Office.
Finally, outsourcing may impact WA's business slightly. Although the software developing has been outsourced to the external developers, meeting the deadlines and managing the workloads will be a challenging activity. Outsourcing has been opted to save time and reduced costs but may be at the cost of standards.
WA will evaluate the outsourcing company and will conduct regular checks and set checklists for the quality of work being done.
Current Organisation Structure
Anik Gupta, 22, positioned as a CEO/ Senior Software Business Executive established the business in June of 2010. He has gained numerous experiences from previous work occupation and gained skills and knowledge of business management. Currently, he has developed various successful business plans for companies and industries in the manufacturing, e-commerce and entertainment sectors. As for marketing strategies of his business he seeks insurance brokers, e-commerce, and industrialized businesses. He has been working in Singapore for four years and currently resides in Sydney, NSW.
Payroll expenses indicate the income of Anik Gupta.
Future Organisation Structure
CEO/ Senior Software Business Executive
He will manage projects of two office branches in Sydney and Melbourne and supervise the junior employees. Mr. Gupta will also be in charge for looking after cooperation with exterior outsourcing businesses and strategic companionship.
Executive Marketing Manager
He will be in charge for attracting customers and supporting cooperation with all customers. He will be chief for marketing and sales team and is in charge for all association the business has with customers.
Senior Software Sales Developer
He will manage account development sales and monitor all software sales of company. He will also be in charge for chief software salesperson with a superior portfolio of communications technology solutions.
Other team associates:
Sales Team Manager
He will be in charge for looking after software sales and keep an eye on each employee. Having qualification in business law degree he will also be in charge for legal papers of business, policy making, contract forms, legal entity like trademark for products and services and web business arrangement for customers. He will also operate in financial section as a role of financial administrator and be in charge for account and finance.
He will supervise the call sales and maintaining relationships with existing clients through telephone calls, face to face meeting, and email. He will also be in charge for recording sales and order information to the administrator within set deadlines.
Sales representative/Accounts Officer
He is a dynamic sales representative with the portrayal of 'Individual trading'. He will also control a number of individual client accounts and operate as a mediator and diplomat when merging with clients on assignment subjects.
Figure - WebArk Future Organisational Structure
The major key issue affecting WebArk financial plan is the proof of payment of start-up bills for the customization and equipment of the softwares. This forces their business cash flow, and all other features of business functions.
Current Interest Rate
Long-term Interest Rate
Table - General Assumptions
Key Financial Indicators
The following table indicates the comparative relationships, year-to-year, of four company indicators; sales, gross margin, operating expenses, collection days of accounts receivable.
Gross margin (%)
Table - Key Financial Indicators
Figure - Main Financial Indicators
The following figure 7 displays break-even point in sales/month for year along with Assumption and Monthly Revenue Break-even in table 8.
The mean variable cost is the sum of marginal costs measure for number of services to be produced.
Figure - Monthly break-even Analysis
Table - Break-Even Analysis
Projected profit and Loss
Monthly Profit and Loss is highlighted in the following figures and chart. It indicates Profit and Loss is fluctuated significantly due to the closing sales after project is given. Expenses are roughly 35% of costs. They are expected the start-up prices will grow 15% in year two and 20% in year three. Servicing prices are estimated to develop at a steady rate of 15% and training prices at 25%.Therefore, the Net Profit margin is expected to grow at a conventional and practical rate for the first three years.
Figure - Monthly Profit
Figure - Yearly Profit
Figure - Monthly Gross Margin
Figure - Yearly Gross Margin
Pro Forma profit and Loss
Table - Pro forma Profit and Loss
Projected Cash Flow
WebArk cash flow assumptions are reliant on the start-up payment. However, they will obtain 12-18% of the sum payment in commission. Historical charges of start-up prices are from $140K to $190K and the financial records have taken from one to three months to close. Conventional approximations lead them to think that they can achieve sales revenue from start-up prices of between $115K and $130K in year one.
Figure - Projected Cash Flow
Pro Forma Cash Flow
Table - Pro-Forma Cash Flow
Projected Balance Sheet
The following balance sheet table displays a summary of the financial balances, key assumptions and projected sales/cash flow in terms of assets, liabilities and owner's equity. It is managed but sufficient growth of net worth, and an adequately strong financial position. The monthly estimations are included in the appendix section.
Pro Forma Balance Sheet
Table - Pro-Forma Balance Sheet
The following chart displays the estimated business ratios. WebArk expect to maintain strong ratios for profitability, risk and return. The business Profile ratios, illustrated for evaluation, are based on Standard Industrial Classification (SIC) and Information Retrieval Services (IRS).
Table - Ratio Analysis