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Software Company Business Plan

High margins, low startup costs, global reach, and a recurring revenue model make starting a software company a lucrative and rewarding profession.

Need help writing a business plan for your software company? You’re at the right place. Our software company business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Software Company Business Plan?

Writing a software company business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the software company services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of software company you run and the name of it. You may specialize in one of the following software company businesses:

• Enterprise software companies
• SaaS companies
• Mobile app development companies
• Web development companies
• Cybersecurity companies
• HealthTech companies
• Describe the legal structure of your software company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established software company, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your internet software company business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the software company products or services your business will offer. This list may include:

• Custom Software Development
• Commercial Off-the-Shelf (COTS) Software
• Software as a Service (SaaS)
• Software Development Tools
• Software Consulting
• Software Maintenance and Support
• Software Testing and Quality Assurance
• Training and Documentation

Industry focus:

Quality measures, additional services.

In short, this section of your software company plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your software company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your software company, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, software & tools:.

Include the list of software & tools required for a software company, such as cloud services & infrastructure, project management tools, Version Control Systems, collaboration & communication tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your software company’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your software company services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your software company business plan should only include relevant and important information supporting your plan’s main content.

This sample software company business plan will provide an idea for writing a successful software company plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our software company business plan pdf .

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A Simple Business Plan Guide

Frequently asked questions, why do you need a software company business plan.

A business plan is an essential tool for anyone looking to start or run a successful software company business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your software company.

How to get funding for your software company?

There are several ways to get funding for your software company, but self-funding is one of the most efficient and speedy funding options. Other options for funding are

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your software company?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your software company business plan and outline your vision as you have in your mind.

What is the easiest way to write your software company business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any software company business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a software company business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my software company business plan?

The level of detail of the financial projections of your software company may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a software company business plan include?

The following are the key components your software company business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good software company business plan help me secure funding?

Indeed. A well-crafted software company will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a software company business plan?

Marketing strategy is a key component of your software company business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Home » Sample Business Plans » Technology

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, 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

1. Industry Overview

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.

2. Executive Summary

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.

3. Our Products and Services

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;

• Developing of software according to clients’ specifications
• Sale of software
• Offering of subscriptions for our software
• Charging of license fees for our software
• Charging by transaction
• Advertisements on our software
• Training services
• Technical support

4. Our Mission and Vision Statement

• Our vision at Doodle Tech Inc. is to be distinct from other software development companies by creating software that suits the diverse needs of our end users, and to be the preferred software firm for users in the United States of America.
• In order to achieve our vision, we have on hand the best software developers that will ensure that we attain our goal of being the preferred software company and in meeting all the diverse software needs of our customers here in the United States of America.

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

5. Job Roles and Responsibilities

• Develop overall policies that would provide the right direction for the company
• Ensures that strategies are implemented and weak strategies are removed
• Meets and negotiate with high powered clients on behalf of the company
• Ensures that new software is developed and tested for bugs before being released to the public
• Develops new software for existing software so that clients can upgrade without running into hitches
• Carries out constant tests on software released to find out weak points and work on it.
• Researches on new businesses that will generate more revenue for the company
• Reviews company’s current products and services and decides how to make them better
• Works with the software development manager to give feedback on what the market trends are
• Prepares the budget on behalf of the firm and liaises with the owners to ensure that budget is reviewed and correctly implemented
• Prepares all the financial information and statement on behalf of the firm
• Ensures that tax is prepared and filed correctly to the correct authorities
• Ensures that the company’s books balances with that of the bank at the end of every month and accounting period
• Ensures that the right employees are recruited on behalf of the company
• Carries out orientation and ensures that employees are assigned the right tasks for their responsibilities
• Ensures that all the administrative functions of the company are performed smoothly without any hitches
• Ensures that all customers enquiries as well as complaints are well attended to and promptly resolved
• Keeps an accurate customer database on behalf of the company and ensures that it is regularly updated
• Carries out other duties as determined by the human resources and admin manager
• Conducts a marketing research on the software development industry to identify new markets for Doodle Tech Inc.
• Drafts strategies and reviews weak strategies to ensure that ineffective ones are removed
• Conducts direct marketing on behalf of the firm
• Meets and negotiates with high level clients on behalf of the firm
• Ensures that the premises and all the properties are secured after work hours by conducting patrols
• Monitors the surveillance cameras in line with securing people and property of Doodle Tech Inc.
• Keeps updated about the security information in the locality and pass along important security tips to staff
• Ensures that the premises is kept clean before work resumes
• Keeps the staff and guest conveniences clean at all times
• Ensures that cleaning supplies are always in stock
• Carries out any other duties as directed by the admin manager

6. SWOT Analysis

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.

• Opportunities

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.

7. MARKET ANALYSIS

• Market Trends

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.

8. Our Target Market

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;

• Corporate organizations
• entertainment industry
• Educational institutions
• Accounting firms
• Financial institutions
• Small businesses
• Agricultural sector
• Military and defense sector
• Other software companies

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.

9. SALES AND MARKETING STRATEGY

• Sources of Income

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;

10. Sales Forecast

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;

• First Fiscal Year-: $400,000
• Second Fiscal Year-: $800,000
• Third Fiscal Year-: $1,600,000

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 Strategy and Sales Strategy

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;

• Ensure that we introduce our software development business by sending out introductory letters to technology and manufacturing companies as well as other big software companies and other stakeholders in the industry.
• Network with other software companies by attending software developer conferences
• Advertise our software development business in local newspapers, technology related magazines, and in local radio and television stations
• Ensure that Doodle Tech Inc. is listed in online and offline directories
• Engage in direct marketing and sales
• Ensure that we are actively involved in forums and blogs in marketing our company

11. Publicity and Advertising Strategy

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.;

• Develop a free version of our software and give users an opportunity to upgrade at a cost
• Leverage on relevant social media platforms such as Facebook, Twitter, and LinkedIn. Google Hangout and other developers’ forum in order to create awareness about Doodle Tech Inc.
• Engage in pay per click advertisement on popular software development forums
• Create contests on social media and via our website to generate more publicity
• Distribute our handbills and fliers in strategic locations
• Install our flexi banners in conspicuous and strategic locations all over San Francisco

12. Our Pricing Strategy

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.

• Payment Options

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;

• Cash payment
• Payment via check
• Payment via online payment portal
• Payment via Point of Sale (POS) Machine
• Payment via credit card

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.

13. Startup Expenditure (Budget)

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;

• Total fee for registering Doodle Tech Inc. in the United States of America – $750
• Licenses, permits as well as accounting software – $1250
• Insurance policy (general liability, workers’ compensation) – $2,000
• Leasing and renovating of a facility for use for at least a year – $20,000
• Cost of hiring a business consultant – $2,000
• Operational cost for the first 3 months (salaries of employees and payment of bills) – $200,000
• Other start-up expenses which includes (windows hosting, Linux hosting, bug tracking, graphics design, software subscription and cable broadband) – $15,000
• Marketing promotion expenses (general marketing expenses and promotion activities for grand opening ceremony) – $5,000
• Administrative expenses (stationeries, phone, computers, printers, furniture business cards, office supplies, and stamps)  – $10,000
• Cost of purchasing an official vehicle – $30,000
• Cost of launching a website – $1,000
• Cost of throwing a grand opening party – $5,000
• Miscellaneous – $8,000

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;

• Generate part capital from our personal savings and sale of stocks
• Get soft loans from family members and friends
• Apply for research grants at the state and federal level
• Source for part capital from online crowdfunding sites like kick starter
• Apply for loan from commercial bank

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.

14. Sustainability and Expansion Strategy

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

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

More on Technology

How to write a business plan for a software development company?

Creating a business plan for a software development company is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a software development company business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a software development company?

• What information is needed to create a business plan for a software development company?
• What goes in the financial forecast for a software development company?
• What goes in the written part of a software development company business plan?
• What tool can I use to write my software development company business plan?

Having a clear understanding of why you want to write a business plan for your software development company will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a software development company business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your software development company. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your software development company to be in the next three to five years.

Once you have a clear destination for your software development company, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To get visibility on future cash flows

If your small software development company runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your software development company's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your software development company business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your software development company's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your software development company.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your software development company and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your software development company's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your software development company, let's explore what information is required to create a compelling plan.

Information needed to create a business plan for a software development company

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your software development company business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a software development company

As you consider writing your business plan for a software development company, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your software development company.

You may discover that there is a growing demand for software that can be used across different platforms and devices. This could indicate that consumers are looking for more versatile and cost-efficient solutions. Additionally, your research might reveal that there is a trend towards more automated software, suggesting that customers are looking for ways to streamline their processes.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your software development company.

Developing the sales and marketing plan for a software development company

As you embark on creating your software development company business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a software development company

Whether you are at the beginning stages of your software development company or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A software development company might incur staffing costs such as hiring software developers, testers, and project managers. They might also incur costs for equipment such as computers, software licenses, and other development tools. Additionally, they might need to pay for office space, phone lines, and other associated costs.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your software development company.

What goes into your software development company's financial forecast?

The objective of the financial forecast of your software development company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a software development company are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a software development company shows how much revenue and profits your business is expected to generate in the future.

Ideally, your software development company's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established software development company. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your software development company

The balance sheet for a software development company is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your software development company's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your software development company's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a software development company is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your software development company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the software development company is appropriately funded.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your software development company as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your software development company, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your software development company business plan, let's shift our focus to the written part of the plan.

The written part of a software development company business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a software development company business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your software development company's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your software development company, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

In your software development company business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your software development company, you could emphasize its access to a highly educated and highly skilled talent pool. The company may be located in a region with an abundance of universities and businesses in the technology sector, providing a robust employment market for software developers. You might also point out the area's access to affordable office space, and its proximity to major transportation hubs, making it easy for third-party financiers to visit and stay connected to the company. Additionally, you could highlight the area's vibrant culture and desirable quality of life, making it an attractive place for employees to live and work.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your software development company might offer website design and development services, mobile application development and custom software development services to its customers. Website design and development services could help customers with creating an attractive, functional website. Mobile application development services could provide customers with the ability to design and develop mobile applications to reach their customers in new ways. Custom software development could help customers design and develop custom made software solutions for their specific needs. All of these products and services could help customers achieve their goals and stay competitive in their markets.

4. The market analysis

When presenting your market analysis in your software development company business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your software development company, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your software development company is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include businesses who need custom software solutions for their operations. These businesses can be of any size that have a need for the development company to create a specialized software solution that fits their specific needs. These businesses may need software that is tailored to their industry, such as an accounting firm needing an automated accounting system or a retail store needing a custom point of sale system.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your software development company.

5. The strategy section

When crafting the strategy section of your business plan for your software development company, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your software development company could face the risk of running into technical difficulties that may delay project completion. These technical difficulties could arise from a lack of skilled personnel, insufficient resources, or unforeseen issues that occur during the development process. Your software development company might also face the risk of a security breach that could compromise confidential customer data. This could occur if the company doesn't have the proper security measures in place or if malicious actors are able to find vulnerabilities in the software.

6. The operations section

The operations of your software development company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your software development company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

Your software development company may have a number of key assets and IP. These could include proprietary software code and hardware designs. For example, your company might have developed unique software algorithms that are protected by copyrights or patents. It could also have hardware designs that are protected by trade secrets or trademarks. These assets and IP could be vital in helping the company maintain its competitive edge.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a software development company business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my software development company's business plan?

In this section, we will be reviewing the two main solutions for creating a software development company business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your software development company's business plan

Using online business planning software is the most efficient and modern way to write a software development company business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your software development company's business plan

Outsourcing your software development company business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the software development company business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your software development company's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a software development company business plan is not advisable. Allow me to explain the reasons.

Firstly, creating an accurate and error-free financial forecast on Excel or any spreadsheet demands technical expertise in accounting principles and financial modelling. Without a degree in finance and accounting and significant financial modelling experience, it's unlikely that the reader will fully trust your numbers.

Secondly, relying on spreadsheets is inefficient. While it may have been the go-to option in the past, technology has evolved, and software now performs such tasks much faster and more accurately.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software offers ease in comparing actuals versus forecasts and maintaining up-to-date forecasts for clear visibility on future cash flows, as we discussed earlier in this guide. Such tasks are cumbersome when using spreadsheets.

Now, let's address the written part of your software development company business plan. While it may be less prone to errors, using software can significantly boost productivity. Word processors lack instructions and examples for each section of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they lack automated formatting capabilities.

In summary, while some entrepreneurs may consider Word or Excel for their business plan, it's far from the best or most efficient solution when compared to specialized software.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your software development company's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your software development company. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start a software development company? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Software Company

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How To Start a Software Company

How to start a software company faqs, additional resources in the software publishing industry.

Starting a software company can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful software company.

Importantly, a crucial step in starting a software company is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

Download our Ultimate Business Plan Template here

15 Steps To Start a Software Company

• Choose the Name for Your Software Company
• Develop Your Software Company Business Plan
• Choose the Legal Structure for Your Software Company
• Secure Startup Funding for Your Software Company (If Needed)
• Secure a Location for Your Business
• Register Your Software Company With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Software Company
• Buy or Lease the Right Software Company Business Equipment
• Develop Your Software Company Marketing Materials
• Purchase and Setup the Software Needed to Run Your Software Company
• Start Building Your Team
• Open for Business

1. Choose the Name for Your Software Company

The first step to starting your own software company is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your software company:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your software company.

2. Develop Your Software Company Business Plan

One of the most important steps in starting a software company is to develop your business plan. The purpose of a business plan is to ensure that you fully understand your market and your software business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your software publishing business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your software company.
• Company Overview – this section tells the reader about the history of your software company and what type of software company you operate. For example, are you an enterprise software company or a software as a service company?
• Industry Analysis – here you will document key information about the software industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, do they have a specific job title or work in a particular industry?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your software company? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your business operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your software company make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your software company.

Next you need to choose a legal structure for your software company and register it and your business name with the Secretary of State in each state where you operate your software business. Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the software company and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a software company together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a software company include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a software company is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your software company, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Software Company (If Needed)

In developing your software company business plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a software business to consider are venture capital funds, personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a software company that they believe has high potential for growth.

5. Secure a Location for Your Business

You have some flexibility in deciding whether you want to secure an office space for your software company, build a remote team, or a combination of the two.

If you choose to buy or rent a physical location, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Software Company With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours.

7. Open a Business Bank Account

It is important to establish a bank account in your software company’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your software company to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – A business license is typically required to operate a business in a particular state. The requirements and fees for a business license vary by state, so it is important to research the requirements in your state. Some common requirements for a business license include having a registered name for your company and filing articles of incorporation.
• Sales Tax License – A sales tax license is typically required to collect and remit sales tax in a particular state. The requirements and fees for a sales tax license vary by state, so it is important to research the requirements in your state. Some common requirements for a sales tax license include registering with the state department of revenue and applying for a seller’s permit.

Depending on where you launch your software company, you will have to obtain the necessary state, county and/or city licenses.

10. Get Business Insurance for Your Software Company

Some common types of insurance to consider include:

• General Liability Insurance – General liability insurance is a type of insurance that provides coverage for a business in the event that it is sued for negligence or other wrongful acts. This type of insurance can help protect a software company from lawsuits related to product liability, property damage, or personal injury.
• Errors and Omissions Insurance – Errors and omissions insurance, also known as professional liability insurance, is a type of insurance that provides coverage for a business in the event that it is sued for negligence or other wrongful acts. This type of insurance can help protect a software company from lawsuits related to software development, consulting, or other professional services.
• Product Liability Insurance – Product liability insurance is a type of insurance that provides coverage for a business in the event that its products cause harm to consumers. This type of insurance can help protect a software company from lawsuits related to product defects, design flaws, or improper instructions.
• Workers’ Compensation Insurance – Workers’ compensation insurance is a type of insurance that provides coverage for a business in the event that an employee is injured while working. This type of insurance can help protect a software company from lawsuits related to workplace accidents.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Software Company Business Equipment

To start, a software company really only needs reliable computers and basic office supplies. If you are opening a physical location for your software company, you might also need desks and other office furniture for your team, as well as reception furniture. If you plan to do many virtual meetings, be sure to invest in a decent webcam.

12. Develop Your Software Company Marketing Materials

Marketing materials will be required to attract and retain customers to your software company.

The key marketing materials you will need are as follows:

• Logo – Spend some time developing a good logo for your software company. Your logo will be printed on company stationery, business cards, marketing materials, and may even be seen when users load your products. The right logo can increase customer trust and awareness of your brand.
• Website – Likewise, a professional software company website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how your target market perceives you.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your software company.

13. Purchase and Setup the Software Needed to Run Your Software Company

Your team will need a good software development platform. This can be something like Microsoft Visual Studio, Eclipse, or Xcode. The company also needs a good source code control system, like Git or Subversion. Finally, the company will need some good software development tools, like a compiler, an editor, and a debugger.

Slack is another popular tool among software development teams that allows members to keep in touch and help to build workplace morale among virtual workers. You should also explore bookkeeping and payroll software.

14. Start Building Your Team

Your team should be composed of individuals with the necessary skills and experience to help you build your product and grow your company. When assembling your team, it’s important to find people who share your vision and are passionate about your product.

It is a good idea to hire at least one product manager who can be responsible for creating and managing your product roadmap, defining product features, and coordinating development efforts

Any software development business relies on having a strong development team. You will need software engineers to actually design, build, and maintain the products you create. Likewise, your should plan on hiring sales and marketing team members to spread awareness about your products and make sales.

15. Open for Business

You are now ready to open your software company. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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Is It Hard To Start a Software Company?

Yes, it can be hard to start a software company. One of the biggest hurdles will be coming up with a great idea for software that people will want to use. Attempting to raise money needed to start a software development company can also be difficult. Owning a software company can also be a lot of fun and a rewarding experience, however, and the steps we have outlined above will help put you on the path to success. Just be sure to understand the needs of your particular business before you begin.

How Can I Start a Software Company With No Experience?

One of the most important things you can do to start a new software company with no experience is research. Look into the software industry as a whole, as well as how much it typically costs and the time needed to develop software. You might also consider connecting with experienced software development business owners who can give you their insights into the dos and don't of opening and running a successful software company.

What Type of Software Company Is Most Profitable?

There is no easy answer to this question, as the profitability of a software company depends on a variety of factors, including the type of software it produces, the size and location of the market it targets, and the level of competition it faces. However, some types of software companies are more likely to be profitable than others.

Generally speaking, an enterprise software development business can charge more for its products as the target market is often large organizations. Companies that make custom software may also charge more since they create tailor-made solutions for their customers, which often requires more resources and time than selling a premade software product. 

How Much Does It Cost To Start a Software Company?

The amount you will need to spend to start a software development business will depend on the type of company you want to create, the services you offer, and the location where you plan to operate. 

You will need to pay for office space, computers, software, and marketing materials. You may also need to hire employees or contractors. It is important to remember that you will also need to pay taxes on your income, so make sure you have enough money set aside to cover your expenses.

Startup costs for  software companies range from $30,000 to $150,000 depending on the business scale.

What Are the Ongoing Expenses for a Software Company?

One of the biggest expenses for any software company is employee salaries. You'll need to pay your employees a livable wage in order to keep them happy and productive. In addition, you'll also need to budget for things like office supplies, marketing, and of course, taxes. Key expenses include:

• Wages – Over a third of revenue is comprised of wages.
• Purchases, Research and Development – Over 10% of software publishing revenue is spent for purchases, research and development.
• Other – The other costs in the software publishing industry comprise marketing costs, depreciation, rent, office supplies, furniture, etc.

How Does a Software Company Make Money?

There are a few ways that a software company can make money. The most common way is to sell licenses to the software that they create. This can be a one-time purchase or a fee charged on a subscription basis. In the case of SaaS, customers often pay a regular fee to access software over the internet instead of installing it on a local device. Another way to make money is to create add-on products or services that complement the software. These could be additional features or support plans.

Is Owning a Software Company Profitable?

The answer to this question largely depends on the specific industry and market conditions. However, in general, companies that produce and sell software can be quite profitable. The key is to have a unique and valuable product that meets the needs of your customers.

How Much Do Software Publishing Operators Make?

A software publisher earns an average of $61,000.

Why Do Software Companies Fail?

One of the main reasons software companies fail is that they do not have a clear vision and strategy. A company without a clear vision will lack focus and direction, which can lead to missed opportunities and failure. Additionally, a lack of strategy can doom a company to failure because it means they are not taking the necessary steps to succeed. Other reasons software companies fail include poor marketing, inadequate funding, and no customer base.

How Big Is the Software Publishing Industry?

There are 7,737 software companies in the U.S. and they generated $192.7 billion in revenue last year. This shows an annual growth rate of 3.6% in the past 5 years.

What Are the Key Segments of the Software Publishing Industry?

The main segments of the industry are Application software publishing and System software publishing. Other product segments include re-sale of computer hardware and software, Information technology technical consulting services, custom application design and development, and information technology-related training services.

What External Factors Affect the Software Publishing Industry?

A number of factors affect the performance of the software publishing industry. These drivers include:

• Private Investment in Computers and Software - When the demand for computers increases, the software publishing industry is positively affected. This year, investment in computers and software is expected to rise.
• Number of Mobile Internet Connections - An increase in the use of mobile internet connections make mobile devices more vulnerable to viruses, thus also increasing the need for security software and improving industry revenue. The number of mobile internet connections continues to increase.
• Corporate Profit - When the profit of companies rises, they tend to upgrade IT systems which involves purchases of new software.
• Demand From Video Games - An increase in sales from video games benefits the software publishers. This year, demand for video games will increase.
• Government Consumption and Investment - Government spending benefits the software publishing industry and it is increasing this year.
• Percentage of Households With at Least One Computer - An increase in the number of PC owners means there’s also higher demand for software. The percentage of households with at least one computer is increasing today.
• Per Capita Disposable Income - An increase in consumers’ per capita disposable income indicates that there is a high chance that they will purchase new software for personal use or entertainment.

Who Are the Key Competitors in the Software Publishing Industry?

Oracle Corp.

Microsoft Corporation

International Business Machines Corp.

What Are the Key Customer Segments in the Software Publishing Industry?

The largest customer segment in the software publishing industry is businesses. Households then make up about a third of all customers and government entities make up a small portion.

For additional information on the software publishing market, consider these industry resources:

• The Software & Information Industry Association: www.siia.net
• US Census Bureau: www.census.gov
• The Entertainment Software Association:  www.theesa.com
• US Bureau of Labor Statistics: www.bls.gov
• Software Mavericks: www.softwaremavericks.com

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Software companies: 10 tips to design a business plan

In this digital age of constant innovation and adaptation, all companies must add and adapt to information technologies. In addition, they must generate new strategies that adapt to the requirements and demands of the clients. Within this dynamic, software companies are a great ally for all types of businesses.

To provide a good service and satisfy these companies eager to fully integrate into the digital market, your software company must have a well-organized business plan. This will help you plan the structure, objectives, and strategies so that all the information is organized, summarized, and clear. At the same time, through its implementation, you will not only be able to establish all the details of your business and solve problems that may arise, but you will also add value to other people by showing them that your business makes sense.

Here are 10 very useful and simple steps to create an effective business plan:

1. Executive summary

Provide an overview of your company . It includes a description of it, its structure, who makes it up, what type of software it sells, for whom (here you can use the information you have about your ideal buyers), what budget it has, and the risks it faces.

Define and detail what your goals are. You must take into account the income needs, periods of high and low sales, profitability, and growth possibilities that your company has during the business year of one year. All the goals you set have to be realistic and achievable so that your team can achieve them.

3. Sales strategy

Come up with an effective strategy . Establish a plan that allows you to meet the objectives outlined in the previous point and helps you increase your sales. For this item, it is essential that you know your ideal buyers in-depth: their profile, tastes, needs, and demands to focus your strategy on who is going to consume your product.

4.   Product

Detail the features and potential of your product. Describe your software and how it solves problems that your ideal customers may have. Also, you must know your competition well. Compare your software to other options on the market and explain how they are different and why customers should choose yours.

5. Market analysis

Research the market in which your software can be implemented. Carrying out a good examination of your buyer personas and new trends in the industry will allow you to create or improve strategies that ensure you offer what is needed and that your marketing is directed to the right people.

6. Marketing plan

Think about how you want to sell your software. The strategies you devise will have a lot of influence on the success or not of your company. We recommend you use an inbound methodology , through which you can educate, teach, help, and generate solutions . In this way, you will build trust in your customers and accompany them throughout their purchase process, without interrupting them with massive messages.

Include your budget. Every business plan must have a financial plan, which is why you must develop the financial model you need to start implementing your business. This should include the initial resources you need, the projections, and an investment plan (if you are looking to attract investors).

8. Implementing a CRM

Automate all your teams' tasks. We recommend HubSpot's CRM , an easy-to-use tool that allows you to organize all the information you have about your customers so you can fully focus on your work. In addition, it can be synchronized with other platforms, systems, or applications.

9. Contingency plan

Create a strategy for emergencies. Devise a plan that includes alternative procedures that guarantee the continuity of the operation of your company in the face of any eventuality. You should include rules, procedures, and basic response actions to deal with any situation that threatens the correct performance of your company in an effective and organized manner.

10. Check and follow up

Constantly check your plan. Specify the metrics you will use to measure the continuity and proper execution of your software company's business plan. In this way, once you define that metric, your employees will know what the success of your company depends on from the beginning.

In conclusion, these are the 10 tips that we offer you to create your business plan. You must make the most of this digital age that greatly favors the software industry. Cheer up, get organized and focus on creating your business plan so that later you can fully focus on your work, having everything planned and organized.

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Software Company Business Plan Template

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This software company business plan template has 27 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our software company business plan template:

Insert Image Here [YOUR COMPANY NAME] [YOUR ADDRESS] [YOUR YOUR CITY, STATE/PROVINCE/ YOUR ZIP/POSTAL CODE] [YOUR NAME], Founder and Owner BUSINESS PLAN 201X

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Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

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Lean Business Plan Template PDF

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

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Simple 30-60-90 Day Business Plan Template PDF

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

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PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

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If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

Download One-Page Lean Business Plan Template - PDF

One-Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

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For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

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Fill-In-the-Blank Small Business Plan Template PDF

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

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One-Page Small Business Plan Template PDF

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

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One-Page Business Plan for Nonprofit Organization PDF 

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

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Sample Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

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Computer Software Business Plan Sample

MAR.03, 2021

Computer software business plan for starting your own company

Do you want to start a computer software business? Well, the business has immense demand these days. Firstly, because of the introduction of software that enhance business efficiency and productivity. And second, due to the coronavirus that has made people work from home.

Starting this business doesn’t require you to occupy a large space. However, the startup costs are still high. Mainly because of the costs of software and the salaries of software experts.

To make sure that your business is started and run efficiently, you must create a business plan computer software. To help you in making an accurate business continuity plan computer software company for your business, we’re providing here a business plan for software product . This sample business plan software for mac and pc is written for a computer software startup, Tech Solutions.

Computer Software Business Plan Summary

2.1 the business.

Tech Solutions will be a registered and insured computer software business. The business will provide all sorts of management, business, engineering, analytics, and computer repair software. The company will also offer software that allows integration with hardware devices. Moreover, some hardware accessories will also be sold by the company.

In this business plan sample of an online computer repair and sales of hardware and software, we’ll be providing all details of Tech Solutions for your guidance.

2.2 Management of Computer Software Company

To ensure the smooth and successful running of your business, it is essential to first create a business plan template for computer software. In your computer software reseller business plan, you should mention all details of how you will establish your business, hire the staff, purchase the inventory, and software for reselling. Moreover, it should explain a proper management structure that will allow you to cater to unexpected orders, staff problems, and financial issues.

2.3 Customers of Computer Software Company

Tech Solutions identified the following groups of people as its target customers:

• Companies & Businesses
• Engineering Schools
• Others (Retail Stores & General Public)

2.4 Business Target

We aim to earn and maintain a CSAT score above 90% within a year of our launch. Financially, we aim at earning a profit margin of $32.3k per month by the end of the three years of our launch.

Company Summary

3.1 company owner.

Tech Solutions will be owned by Dustin Grant. Dustin is a software engineer who has also acquired a master’s degree in business administration after his graduation. He has worked in a software firm for two years but eventually decided to start his own business plan for software product .

3.2 Why the computer software business is being started

Dustin started the computer software business to be an entrepreneur and earn huge profits. Throughout his academic and service years, he remained associated with software businesses. Therefore, at the time of starting his own business plan for software product , he believed the computer software business to be the best choice for him.

3.3 How the pc software business will be started

Step1: Develop computer hardware and software business plan

The first step to start this business would be to create a computer software and technology business plan. Dustin had adequate knowledge to develop the business continuity plan for computer software company, therefore he did the task himself. If you think that you don’t possess the required skillset to develop a business plan software for apple computers or any other relevant service, you must hire a professional for doing so.

Step2: Define your brand

After planning everything about your business plan for software product , you should step into the execution phase. This is the time to acquire licenses, registrations, inventory, and required software and hardware. Meanwhile, you should define your business values and services so that people can know about you.

Step3: Start the recruitment

The next step is to recruit the most component and skillful employees for your business plan for software product . A good approach is to also give them a few months of training so that they can learn to collaborate with each other.

Step4: Promote & market

After establishing your workplace and workforce, the next step is to promote your competitive advantages.

Step5: Establish a web presence

A strong web presence is inevitable for a software company. Since software services can be provided online, your customers are more likely to search about you on Google. Therefore, to offer your services on a wider scale, it is a must to establish a strong online presence.

Products of Computer Software Company

In your computer software retail business plan, you should also include the services you want to offer. To decide your services, you should study some guide to writing a computer software business plan examples. This will give you a broader idea of what other people are offering in the domain.

The products offered by Tech Solutions are provided below:

• Billing Software
• Asset Management software
• Clear Analytics
• Metric Insights
• SAP BusinessObjects
• StudioCloud
• Autodesk Revit
• JavaScript and more.
• Network Interface Cards
• Expansion cards
• Power supply unit
• Motherboard
• Optical disc drive
• Microprocessor
• Hard disk drive and more.

Marketing Analysis of Computer Software Business

Your business plan for computer software is incomplete unless you have done a detailed marketing analysis in it. Since purchasing software and hiring the persons who can run those software is a costly operation. Therefore, it is a must for you to purchase only the software that are demanded by your target customers. Knowing your target market will help you in understanding which type of software you should acquire. Moreover, by analyzing customers’ buying patterns you can figure out whether or not you should purchase a certain software.

In this computer programs business plan we’re providing the market analysis done for Tech Solutions. Dustin carried out a detailed marketing analysis before developing business plan software for mac computers and other devices. His special focus was to offer software products that weren’t offered by his market competitors.

5.1 Market Trends

The market stats for computer software-related companies are extremely good. According to IBISWorld, market size of $564bn is held just by online computer software sellers in the United States. The trends for business analytics software businesses are also highly encouraging. According to the same source, more than 4.5k such businesses are running in the United States successfully. The business has grown by 22.8% in the past five years, from 2016 to 2021. And is expected to grow more by 13.3% in 2021 alone.

5.2 Marketing Segmentation

The groups of target customers identified by Tech Solutions are provided in this computer software business plan sample.

5.2.1 Companies/ Businesses & Organizations

The first group of our target customers will comprise organizations and enterprises that need management and cloud-based intelligent software to manage their business plan for software product . They are expected to be our potential customers as they will need the latest software support to enhance their productivity.

5.2.2 Engineering Schools & Firms

The second group of our target customers will be the universities and firms that make use of engineering software. They may include design engineering firms, software firms, and manufacturing firms.

5.2.3 Others

The third category includes all other people and businesses who may need software and hardware. For example, retail stores are expected to get billing software from us. High school students are believed to purchase hardware accessories from us etc.

5.3 Business Target

Our business targets are

• To achieve a Net Promoter Score above 50 by the end of the two years of our launch.
• To earn and maintain a CSAT score above 90% within a year of our launch.
• To earn a net profit margin of $32.3k per month by the end of the third year
• To achieve and maintain an average ranking above 4.75 throughout our service years.

5.4 Product Pricing

Our prices are a little higher as compared to our market competitors. It is because of the continuous software support and training we’ll be providing free of cost.

Marketing Strategy of Computer Software Business

In your business plan computer software company you should also include the ways, you will adopt to outperform your competitors. Ideally, you should analyze your competitive benefits, sales business strategy , and forecasted sales in this part of computer software training business plan.

6.1 Competitive Analysis

• Our biggest competitive benefit is that we’re providing free training to our customers. People who will purchase software from us will be given 10-12 days of training so that they can use all the features of the software.
• We are highly customer-oriented. Our collaborative staff will remain in touch with you to provide you expert advice whenever you face any technical issues with the provided software.
• Our software offerings are more than all of our competitors. Therefore, we expect to get more customers than them.

6.2 Sales Strategy

• We’ll establish a strong web and social media presence to reach out to a wider audience.
• To advertise our services, we’ll make use of Google Local ads service, and local newspaper.
• We’ll send our sales executive to several companies and organizations to let them know about us.
• We’ll provide a 20% discount on all of our software for the first month of our launch.
• We’ll provide a 30% discount on all of our hardware products for the first two months of our launch.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

The skills and performance of your employees are the things that will impact your business impression in the long run. To make your startup a success, it is essential to hire your employees with great care. And develop a human resource management plan to help them improve over time.

In this computer hardware software business plan, we’re providing the personnel plan of Tech Solutions.

7.1 Company Staff

Dustin will hire the following employees for his business:

• 1 Co-Manager to manage the company’s operations
• 4 Software Engineers to develop software and train people
• 2 IT Experts to maintain IT systems
• 2 Computer Technicians to help maintain the machinery
• 2 Sales Executives to discover new ventures for the company
• 1 Accountant to maintain financial records
• 1 Store Manager to manage hardware sales

7.2 Average Salary of Employees

Financial plan.

Though opening a computer software business doesn’t require you to rent a large space or procure huge inventory, still, the costs of starting and running this business are high. It is because many business software are very expensive especially those which are cloud-based and agile. And secondly, the salaries of highly expert software engineers are also high. Therefore, the finances of this business plan for software product need to be managed.

The best way for managing your finances, investments, profits, and losses is to develop a financial plan. In this computer software business plan sample we’re providing the financial plan that Dustin developed for Tech Solutions.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Computer Software Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as smartphone business plan , computer store business plan, iPhone repair business plan , solid semiconductor business plan , best biotech business plans and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Start a Software Company PDF | Software Business Plan PDF

How to Start a Software Business - Software Business Plan PDF

Are you considering starting a Software and you’re in need of a software business plan PDF? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

Don’t Start a New Software Business Unless You Watch This Video First!

Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template

The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate Printing Business. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a consulting firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

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Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

Click here! to download your Software Business plan PDF book for free

Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Software Business plan :

COMPANY NAME develops a photo cataloging system to assist end-users in increasing efficiency through the use of Web based technology. The Company's customers are 1) people who want to upload, organize and document their personal photos and images, and 2) people who want the ease of creating a movie of their images that were uploaded to their account. COMPANY NAME is a photography / picture capture social networking niche site for families to document growth of a child growing up, a home renovation, photo tracking for weight loss, etc. Because of the time it takes it document any event, the end user will keep coming back making it appealing for advertisers to invest advertising dollars in the site.  The technology will make it easy to create movies and slide shows for end users to display to family and friends.  Comment areas and communities will be available including a comment area under each photo.  COMPANY NAME will slightly resemble a scrapbooking type of site with a twist.  End users can embellish and personalize each photo.  COMPANY NAME offers the expertise an end-user needs in order to create a personal photo catalogue system. The Company's ultimate service would be an automated photo image management system and hosting relationship with customers, in which the customer only needs a Web browser to log on to the COMPANY NAME site customized to their needs. Secondary services will be focused on advertisers. COMPANY NAME will offer other companies the ability to use the site and customer database to advertise products and services to.  The Market COMPANY NAME's customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can upload photo images, catalog them and display as a movie easily for other members, family and friends. The second group is companies providing products and services that wish to advertise them to members using this debut photo cataloging niche social network website. Management The founder, OWNER’S NAME, will be managing and operating the day to day activities for the Company. Initially, everyone will be an independent contractor with the company including outsourced data storage and servers for the website.   Later in time, the founders plan to have everything in house, with employees and computer equipment. Financial Plan COMPANY NAME will require a $178,500 investment. Growth will be slow at first, but once the infrastructure is created through branding and positioning, growth will be explosive. COMPANY NAME should not need additional funding according to projections, because once advertising revenues are generated, a captive market of media and advertisers will generate a revenue stream that will pay for future acquisition of sales.

1.1 Objectives

The COMPANY NAME objectives will evolve in a three-phase concurrent development cycle. Learning Knowing the customer, the product and services offered by the company as well as knowing the competition are imperative for success. Planning, research and development are critical procedures for this cycle. Objectives for this phase are:

• Become experts on the social network website market and have a database of competitors, market analysis, and customer needs.
• Have a trial version completed within three months of capital formation.
• Establish good working relationships with web programmers and developers by meeting with them and plotting a mutual plan for success based on trust, reliability and service.
• Get commitments for support, services and products by May 2011 to support the launch of COMPANY NAME.

Earning Marketing, sales, customer support, execution of action plans and continued learning will ensure COMPANY NAME a market position that will generate earnings and promote growth, both in new customers and new products and services.

• Establishing brand awareness and brand recognition that positions COMPANY NAME as the market leader for safe, simple, creative and reliable web based electronic photo catalogue system to end users of all ages.
• Many end-users are without comprehensive computer knowledge; COMPANY NAME 's easy to use Web based photo catalogue system allows customers to manage personal images and internally document management.
• Market metrics for evaluating market penetration success include, a market presence in the top social network markets in the country, market share, customer satisfaction ratings and click through traffic. COMPANY NAME will strive to double this metrics semi-annually until the company reaches market dominance.
• Begin generating positive cash flow by the end of 2011.

Returning Balancing long-term sustainability and profitability with short-term necessities and change will the Achilles heel of many Internet companies. Therefore, COMPANY NAME believes that with a policy of returning or giving back to the community (employees, customers and shareholders) COMPANY NAME will ensure apportionment of resources without excessive waste and redundancy. Objectives for this cycle are:

• Developing a mission statement which reflects the values of the founders while providing a mandate for culture creation that will attract and retain the best and brightest talent.
• Develop a comprehensive holistic internal structure that is responsive to market demands and rapid change. This model is predicated on the idea of "a continuous learning organization" with the training and marketing functionality binding the entire organization.
• Develop value-added modules that will launch COMPANY NAME from a niche player to the premier photo catalogue social networking site on the Web by 2012. This means creating features that are action oriented, that is, coming up with solutions that allow end-users to document via imagery, easily allowing them to upload them to the web, organize them and displays them to family and friends.
• A balanced and focused approach of developing products with the customer in mind by enthusiastic and innovative employees will ensure the success of COMPANY NAME, ultimately leading to increased shareholder value.

1.2 Mission

COMPANY NAME's  mission is listening to our customers' requirements in order to fulfill their individual needs for photo cataloging. In doing so the Company will strive to become the leading provider of secure and simple to use electronic photo filing systems for end-users, using Web technology.

1.3 Keys to Success

The keys to success in this business are: Marketing:

• Establishing brand name.
• Creating barriers-to-entry by competitors through the building trust based relations between end-users and COMPANY NAME.
• Building credibility.

Simplicity:

• Create a system that is simple to use.

COMPANY NAME develops a photo cataloging system to assist end-users in increasing efficiency through the use of Web based technology. The Company's customers are 1) people who want to upload, organize and document their personal photos and images, and 2) people who want the ease of creating a movie of their images that were uploaded to their account.

2.1 Company Ownership

COMPANY NAME is a sole proprietorship company owned by OWNER’S NAME (60%) and CO-OWNER’S NAME (40%).  The Company plans to file for a limited liability corporation in the State of California shortly before product launch. 

2.2 Start-up Summary

After the trial version is completed, salaries, operating overhead and marketing expenses will kick in. COMPANY NAME anticipates this happening in the second half of 2011. Seed funding will be sought from angel investors.

Table: Start-up

Get Your Leadership Skills On The Right Track By Using These Tips! Leadership may seem like something innate within certain gifted individuals, and which cannot be manufactured or duplicated. However, there are particular traits and qualities possessed by strong leaders that really can be learned and emulated to great result. Review the tips found below and you can learn how to take the lead and achieve business success starting today. You may be a visionary with excellent insight into your company's market sector, but you don't know everything. Your subordinates may be in more intimate contact with part of the market as part of their job. If your marketing director says that your advertising isn't appropriate for your target audience, listen to her. She's probably right. Good leaders must focus on what is to come. You should be able to anticipate things before they occur, so you can handle anything that gets thrown your way. While you aren't a mind-reader, you will find that you can achieve some success this way. Visualize where'd like to be in the future. A good leader should always try to remain optimistic. Even when things aren't going as planned, a leader should be positive so that the people around you will remain positive. No matter what the problem is, a good attitude will give you, and your team, hope that the problem will be handled. If you have an employee that goes above and beyond the call of duty, do not hesitate to give them extra praise and rewards. Even though it may seem like you are playing favorites, you are giving them what they deserve. be open with other employees about it so they are aware of what rewards come with hard work. Be sure to finish everything you start or you risk losing the respect of the people that work under you. Even if something seems particularly difficult, you should give it your all and see it through to the end. No one will look at you the same if you turn into a quitter. As a business leader, every success will be attributed to you and every mistake will fall on your shoulders. You must offer feedback to your employees on a regular basis. They need to know what they're doing right and where the could use some improvement. Ensure that your employees understand what is expected of them. Even when things do not seem to be going very well, a good leader is able to see the positive side of things. While there may be a lot of issues that make something negative, he or she will always be able to find something good in every single situation. Don't hesitate to recognize people for their accomplishments. It is easy to forget to thank people for what they do, especially in a work environment where everything is moving quickly. Make sure you look for reasons to thank people for their good work, instead of simply chiding them when they make mistakes. This will encourage loyalty, and you will find you have an easier time leading when those you lead are loyal. Have a vision. Planning for the future is important. Things might be great now, but will it still be a year from now? What about ten years from now? Try to keep abreast of any change that might be relevant to your business. Shape your plans and your vision accordingly. Maintain a positive attitude. As the leader, you set the tone for your business. You need to make sure that the tone you set is one of possibilities, positivity and patience. Always encourage those under you to think in terms of the solution and not the problem, so that they too can keep an air of positivity as they go about their work. A leader should never be alone. A good leader helps the group to grow in a positive manner. As a leader, bring all of your team members on board to collaborate and offer different perspectives. Having a responsible, hard working staff gives you the opportunity to be an effective leader. There are many types of leadership styles but none of them is the absolute best. The secret to being a good leader is knowing your strengths and weaknesses and working with them. You also need to assess the group that are leading and make the most of their personal skills. Use your ability to make the best of everyone's unique skill set. Great leaders believe in those they are leading. Surround yourself with talented people and then inspire them to greatness by believing in their ability to reach their full potential. When you expect the best of someone, they will typically go out of their way to live up to that expectation. Any role in leadership includes bringing in new team members, or employees. Part of this responsibility is to make new hires feel welcome, included and comfortable. Be sure to introduce newbies to the team, include them in luncheons and meetings. You could even organize a welcome committee to help acclimate new workers to the group. If you are new to leadership, you must accept the fact that you have a lot to learn. You may be an expert in your field, but learning to lead can be daunting. Don't be afraid to take advice from others, including your team, or workforce. Ask questions, and ask for suggestions. Most great leaders began as followers. A successful leader makes decisions quickly. People will respect you more as a leader if you make speedy decisions and you stick with them. If you have little follow through, others will be uncomfortable with you. You work hard to build confidence, and changing you decisions with regard to important matters undermines the confidence. You may feel as though leaders are born, not made. But, the truth is that leadership skills can be studied, practiced and honed to perfection by anyone willing to dedicate themselves to the effort. Keep the tips and advice you have just read close at and, and you can succeed beyond your wildest dreams.

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Marketing Plan for a Software Company

Getting from a brilliant idea to an equally spectacular business success is likely to be a long haul. In the highly competitive IT market , it’s often a solid marketing strategy that determines whether a company will succeed in achieving its goals. 

A B2B marketing plan is the foundation for building a thriving business. In this article, we’ll go over what a marketing plan is, why software development companies should have one, and how to develop it step by step. 

What Is a B2B Marketing Plan?

In the simplest terms, a marketing plan is a kind of a strategic roadmap that indicates what paths your software company should follow in order to achieve its business goals . The overarching aim here is to define the activities that will allow your firm and marketing team to reach their strategic goals and objectives and deliver value to the clients. This may lead, for example, to building a strong brand or help in increasing IT sales by acquiring new clients or improving loyalty of actual ones.

However, one important thing to remember is that a highly effective digital marketing plan is not a schedule or a checklist. Rather, it is a strategic approach that enables, as the name suggests, planning the company’s market activity in the long term. As an integral element of a B2B marketing strategy for software companies , it should be thought out in its early stages to help your business gain a competitive advantage and reach your business goals.

Why Do Software Companies Need a Marketing Strategy?

Strategic planning helps IT companies meet their business goals. But before you do anything, you should first carry out a thorough analysis of your current situation – only then should you proceed with writing an outline to an actionable plan and thinking out its implementation. As a result, you’ll avoid a situation in which a new line of business or tech product is introduced to the market in a chaotic manner and potential B2B clients are acquired by other software companies.

There are many other benefits of planning marketing activities, such as:

a higher ROI from marketing activities,

a more efficient use of the budget, team and resources,

improved customer service and, as a result, customer satisfaction,

the ability to monitor changes on the market and adapt accordingly much faster,

a better coordination of intercompany activities and your marketing team’s workflow,

the possibility of measuring the efficiency of individual activities and drawing conclusions based on data,

ensuring marketing communication consistency.

Marketing Strategy vs. Marketing Plan

The terms marketing plan and marketing strategy are often used interchangeably. Although both documents define the ways of reaching marketing goals, specify marketing activities, and indicate how to measure their effectiveness, they are far from being the same concepts. The key difference between them lies in the level of detail. 

A B2B marketing strategy is oriented towards achieving an in-depth understanding of your software company ’s situation, defining its competitive advantage, and determining how certain operations are supposed to be carried out. A marketing plan , on the other hand, is focused on identifying what your IT marketing team is supposed to do to meet your business goals. In other words, the company’s goals and overall philosophy, as defined in the strategy, are supposed to be translated into and supported by the marketing activities defined in the plan. And while the strategy primarily answers the questions of “why”, “for whom”, and “how”, the marketing plan is intended to provide more comprehensive answers to “how”, “when”, and “where.”

While most CMOs realize that acting without a high-level marketing plan leads to chaos, increased risk, and higher costs, they usually don’t know how to actually write one. What is more, both the document as well as the entire process of creating it are often identified with some of its last stages (such as creating a list of “tasks”), with prior research and analysis often ignored. This is a serious mistake that translates into lower effectiveness of marketing activities in the IT industry . 

How to Develop a Marketing Plan For a Software Company?

Understanding the role and benefits of strategic planning is one thing, creating an efficient plan is much harder. Even if a universal template doesn’t exist, there are some components that should find their way into every IT company’s plan. 

The key elements of a B2B marketing plan are:

• Conducting marketing audit (with an executive summary)
• Defining marketing goals
• Setting strategic objectives for your company
• Choosing marketing mix and tactics
• Defining marketing plan implementation and measurement methods

Below you’ll find a brief description of each of these areas.

Conduct Marketing Research

The first step in preparing a high-level action plan is conducting a market analysis (looking over the current market situation). This is because in order to determine what the best direction for developing your business is, you must first understand where your IT company currently stands.

You can do that by analyzing your company’s environment on two levels: macro and micro. As part of the macro-environment analysis, pay attention to general trends that may affect the market situation specific to your high-tech business . For example, for a company specialized in software development in a specific programming language, information about the dynamic growth of demand for competitive solutions will be of crucial importance.

To analyze the macro-environment , you should consider using dedicated tools, such as a PESTEL analysis, a simple framework of the most important factors (P – political, E – economic, S – social, T – technological, E – environmental, and L – legal) that may affect the development of your IT company . You can obtain data on these from industry reports, media releases, government reports, or conversations with subject-matter experts.

The second step in conducting a marketing audit concerns your company’s immediate environment, including your B2B clients, competitors, and business partners. Here, it’s worth analyzing what your competition is up to and what their offer is. Conclusions from your research and analysis can be presented on several slides, helping those who are not involved in the process to better understand the situation.

During marketing assessment, try to answer the following questions:

What kind of target groups are your competitors trying to reach? Does it coincide with the ones you want to get to?

What are the key differentiators, competitive advantages, and value proposition of other businesses in the IT industry? In which area does your software company provide greater value?

What B2B marketing channels (website, social media, offline) do other IT companies use?

In which direction, in your opinion, are other software development companies trying to develop their businesses?

Gathering this intel (by conducting a marketing research for your IT company ) doesn’t mean, of course, that you should blindly copy what other hi-tech companies are doing. However, it is a good starting point for understanding potential growth opportunities or threats to your IT business .

Moreover, make sure to investigate your target groups during the micro-environment analysis for your software development company. You can, for example, conduct short interviews with selected B2B clients , or develop questionnaires and send them out among your client base. Ask them why they chose your firm in the first place and what value you managed to deliver. Maybe your developers are particularly friendly and communicative, and therefore easy to work with? Or perhaps your company offers convenient forms of payment? Oftentimes, business clients find value in other aspects than the quality of IT services or products you deliver. But don’t stop there – try to really understand their experience and inquire about the reasons why they would (or would not) work with your Software House again.

Also, remember that a key step in conducting a marketing audit for an IT company is to examine the extent to which your business has met its objectives to date. For this, you’ll need clear data on gross profit or sales volume. Ideally, your firm should also have data on brand awareness or your business’s market share – for this, however, you should carry out a separate research (either on your own or by commissioning it to an IT marketing agency specializing in strategy consulting ).

Financial data and conclusions from the micro- and macro-environment analysis should allow you to assess where your software company stands. It’s also worth closing this stage with the so-called SWOT analysis, which indicates the strengths and weaknesses of your high-tech business as well as possible opportunities and threats that await it. As the foundation of the SWOT analysis, you can use information from your PESTEL model or conclusions from the client survey.

2. Define Marketing Goals For a Software Company

The second element of an effective marketing plan is defining the marketing goals of your IT company . Knowing where your business stands is an important foundation for all further activities, but in order to grow your business, you need to think of how you want to move forward.

Such objectives can be related to many areas. However, the direction in which you’re taking your software marketing should be consistent with the high-level strategic and business goals of your IT company . In other words, if you expect to reach a gross profit of $3 million in a given year, the marketing objectives should support this plan.

The areas in which you can set IT marketing goals include:

market share,

sales profitability,

B2B sales volume,

client loyalty,

client satisfaction.

At the same time, each of the B2B metrics mentioned above should be formulated according to the SMART framework – that is, specific, measurable, achievable, relevant, and timely. For example, your B2B marketing goals can be as follows:

an increase of the Software House market share in Poland by 10 pp by the end of the year,

an increase in customer loyalty by 10% by the end of the second quarter of the year,

an increase in IT sales by $5 million in the first quarter of the year.

3. Define Strategic Assumptions For a B2B Marketing Plan

After establishing your business and marketing goals, the next step is to determine how you want to achieve them. For this, you should use strategic assumptions.

Within the strategic part of the marketing plan for your IT company , you should first focus on defining your target audience or target groups. Directing your messages at everyone is simply a waste of time and money.

Think about this in terms of:

the main industries (or segments) you want to reach,

client needs you want to satisfy,

what motivates your potential B2B clients,

the problems your prospects are facing (and the solutions you can offer),

the expectations your potential clients might have towards a software company like yours.

Defining target groups is the first step in understanding who you want to target with your products and/or IT services. For companies operating on the B2B market, it’s equally important to create buyer personas – semi-fictional representations of your ideal clients based on your company’s data and research. One of your buyer personas could be, for example, a specific type of CEO. Understanding the needs, problems, and objectives of decision makers and stakeholders on your client’s side will allow you for more precise actions down the line.

The strategic part of your digital marketing plan is also the place to identify the key advantages you have over your competitors which you’ve previously analyzed. What IT services does your company offer? What kind of competitive advantages does your high technology company hold? An integrated marketing plan must include answers to such questions.

4. Choose the Right Marketing Mix For Your IT Company

Identifying the competitive advantage and target groups of your software company , hoverer, is not enough for an effective execution of your plan. For that you’ll also need to choose the right B2B marketing tactics – or, in other words, specific activities that will help you reach your strategic objectives. For this purpose, consider using the so-called marketing mix , a combination of marketing activities in several key areas.

The 7P marketing mix consists of:

Product – the elements of your B2B company’s offer as well as various branding aspects (colors, fonts, naming),

Price – the general approach to pricing services and/or products and occasional discounts (if applicable),

Place – ways of reaching your audience (such as social media, websites, external services) or, in other words, places where your clients will be able to find or hear about your IT services,

Promotion – what B2B marketing channels you’ll be using to convey information about your services and how you’ll formulate those messages to your clients,

People – guidelines for people who will have direct contact with the recipient,

Process – a list of activities that will lead to the delivery of your IT services/products (such as the time that should pass from acquiring a lead, converting it into a client, interviewing them about the product they want to develop, or actions to be taken in case of problems on the client-side),

Physical evidence – all kinds of visual elements that will reassure the recipient that you’ll deliver your service (such as a well-functioning website, testimonials from other clients, or an impressive appearance of your company’s headquarters where the clients will be invited for crucial talks).

Physical Evidence (świadectwo materialne), czyli wszelkiego rodzaju wizualne elementy, które upewnią odbiorcę w przekonaniu, że zrealizujesz usługę, której oczekuje – jak choćby dobrze funkcjonująca strona internetowa, referencje innych klientów czy… efektowny wygląd siedziby firmy, w której podejmiesz klientów na decydujące rozmowy o kontrakcie.

5. B2B Marketing Plan Implementation

All that background research is necessary to develop a plan that is well-adjusted to your situation. But you might be wondering how to actually implement a marketing plan in your software development company . 

First, you should figure out how you will monitor progress and evaluate the efficiency of various initiatives at their different stages. Without it, you won’t see how your business is performing and whether or not the effort put in preparing a marketing plan has actually paid off. This is why the final part of creating a marketing plan is to prepare a kind of blueprint for its execution (discussed in more detail in the next section) and defining ways to measure its performance. Thanks to the metrics you choose, you will be able to continually assess your marketing team’s business results. 

The primary measure of effectiveness is when a goal defined on the plan-level has been achieved. However, consider creating additional B2B marketing KPIs (Key Performance Indicators) , which will make evaluating individual elements of the plan significantly easier and, if problems arise, help you determine what has gone wrong.

Digital marketing metrics are different depending on the area you’re measuring. For IT companies operating in the B2B market, you might indicate:

the strategic level – the measurement of high-level marketing business objectives (as defined earlier, market share, sales profitability, etc.),

the marketing-mix level – the elements in relation to the 7P framework mentioned above) such as:

• product (e.g. brand awareness indicator, the number of customers for a particular service)
• price (e.g. price index),
• place (e.g. the number of visits to a page with specific services),
• promotion (e.g. the number of users on the website, social media reach)
• people (e.g. employee satisfaction index),
• process (e.g. the average response time of the customer service, the time it takes for a lead to convert),
• physical evidence (e.g. the percentage of leads gained thanks to client testimonials or word-of-mouth marketing).

Using an IT Marketing Plan in Practice

After developing a marketing plan for your software company , you might be unsure about what to do next. Truth is, even the best plan won’t bring you or your business the desired outcomes if it’s not implemented correctly. Below, you will find two critical documents that may help you in the process.

Executive Summary and Its Benefits

An executive summary of your marketing plan is a short document containing only the most important information. It will serve you and other people (also those who weren’t involved in the drafting process) as an overview of the document’s individual assumptions. How long should an executive summary be? Just one page is enough! When creating it, make sure to include the main objectives, key numbers, crucial tactical activities, and a general overview of the marketing mix you’re using.

A fair share of problems with marketing plans manifests itself exactly during the implementation of their assumptions. This makes defining ways to implement the marketing plan an absolutely key element of the whole process and must be taken into account at the stage of strategic planning. So, consider supplementing it with an executive summary section.

Work Schedule for Improved Communication

In addition to the above, having a clearly defined work schedule will come in handy at the implementation stage. When creating a schedule, consider using a Gantt diagram. It will allow you to place particular marketing activities in time (e.g. preparation of the concept of a new product or service, decision concerning its pricing, the way of communicating it via social media.) and to allocate budgets and employees responsible for carrying them out. Research shows that over 40% of marketers declare that communication problems and difficulties in cooperation are the biggest barriers in implementing the plan. Thus, paying special attention to these aspects is crucial.

A Marketing Plan Cheat Sheet for B2B Marketers

Establish a coherent vision of the future that ensures (although you can never be 100% sure) the successful implementation of the B2B marketing strategy and plan .

Keep the team involved at every stage of drafting the plan for your company.

Set clear timelines for the various stages of implementation.

Ensure that the CEO and the management team are involved in the process (not only the creation but also implementation phase).

Prepare an executive summary of and distribute it to management.

Strategic Planning is worth more than a Plan

Hopefully, the tips outlined here will be useful in creating an IT marketi ng plan that will help your company build an edge in the market. After all, in the IT industry , good strategic and marketing planning is the key to business success. By developing a B2B marketing plan for your software company and executing it step by step, you’ll significantly increase your chances of reaching clients who are the best fit for your business and support its growth. Just remember to do your research!

Does Your Software Development Company Need a Business Plan?

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• Business Plans Handbook
• Business Plans - Volume 09
• Internet Software Company Business Plan

Internet Software Company

BUSINESS PLAN     POGGLE, INC.

14001 Harmony Street San Diego, California 92101

Poggle's vision is to develop software to improve information retrieval and in so doing to provide total freedom and access to stored information, regardless of the language used to create or search for the information. It is the company's vision to extend this capability beyond normal computing boundaries to include text as well as voice recognition information usage.

EXECUTIVE SUMMARY

Marketing plan, organization & operations, financial projections.

E-business today has embodied an electronic transformation of our culture. This transformation has emerged in the use of technology, which has become pervasive throughout our daily life. One of the problems that this use of technology has brought to us is the user unfriendliness that is often its byproduct. One of the latest trends has been to enable users to utilize technology more effectively, with less hassle and to make technology transparent in its use.

Intrigued by the communication and language barriers that would prevent e-business from flourishing, Poggle decided to invent a software technology to overcome the situation. There are over 6,000 languages spoken today in 288 countries. Poggle set out to build a software engine that could easily and quickly facilitate the use of these languages in e-business environments. Poggle subsequently introduced a product at an October 2000 international exhibition to enthusiastic crowds that waited in long lines to see live demonstrations of their technology.

The result has been an overwhelming success. Poggle's new technology has resulted in several new products that are destined to transform the degree to which international users utilize e-business. Poggle's focus is to extend this technology beyond language and geographical boundaries, allowing anyone to participate, be connected to, and effectively utilize the global e-business community.

Poggle has subsequently positioned itself as a dynamic, exciting, growth-oriented software company that designs and develops software focused on making user environments easier and friendlier to use. Today, Poggle's suite of products support the same functionality in multiple languages. Poggle's focus is to make cross-language communication the defacto standard for the future of e-business.

Poggle's Vision—To Improve Information Retrieval

Furthermore, the company's vision includes becoming an e-industry leader in designing communication enhancement' products and services that facilitate e-business, Internet usage, and electronic communication transactions.

Accurate and timely access to information has always been essential for companies and individuals to make sound business decisions. One of the problems on the Internet today is that companies in general have neglected to address the impediments users face when accessing required information in a multilingual global economy. Additionally, Internet users are easily disconnected if they make a simple typographical error or misspell the website names they want to connect with. Poggle's vision is to address this information discontinuity with a solution designed specifically to enhance capability and functionality while improving user friendliness.

In this rapidly changing information age, businesses have been hindered by the "dead-ends" prohibiting the flow of accurate and timely information. As the Internet continues to grow, so does the demand for a more streamlined and time efficient use of the web. Without using the exact website address format or if the search entry contains foreign characters or errors, Internet users are not able to search and retrieve the precise information they are seeking. This is where Poggle comes in.

Poggle's Mission

Poggle's mission is to enhance e-business communication by developing premium products and services utilizing Poggle's technology. Initially, major goals are to provide products that enhance the Internet experience. The Internet itself does not drive the entire world of e-business, but it is a substantial place to start. Ultimately, the company intends to develop products that enhance non-Internet related e-business transactions, and through these to set the standard for the next generation of e-business software technologies.

Specifically in relation to the Internet, Poggle plans to address the difficulties that international e-business customers currently face. Poggle's mission includes:

• Making Access to Information Easier (Enterprise Business)
• Improve Communication and Data Exchange (Business to Business)
• Connect People Worldwide (Business to Consumer)
• Help businesses reach worldwide audiences (Business to Consumer, Business to Business)
• Enhance Internet communication by developing premium products and services

Poggle's Focus— Customer Satisfaction

In e-business today, a loyal customer is one that has had a satisfying experience. Poggle defines satisfaction in this area as having four components: Accuracy, Availability, Advisory, and Partnership.

• Accuracy—The focus of Poggle's products is to deliver accurate information in a timely manner.
• Availability—Poggle's products are designed to facilitate availability of information to market sectors that previously would have had difficulty in accessing that information.
• Advisory—The company's products deliver content that is advisory in nature. In so doing, the customer is assured of a quality response to the information they are seeking.
• Partnership—Poggle remains focused on collaborating with its customers in order to assure that those customers receive the highest level of service available.

Marketing & Growth Strategies

Poggle's strategic growth plan is comprised of three components that will enable the company to obtain its goal as a leading designer, developer, and marketer of low cost, high quality intelligent software.

• The first component is internal new product development. Poggle will develop software for its competitive market edge.
• The second component is external integration of Poggle products into potential strategic business partners' browsers, e-mail systems, websites, wireless devices and applications, global telephone systems and directories, home entertainment devices and database packages.
• The third component is aggressive sales and marketing. Poggle intends to develop a sales and marketing campaign focused primarily on the U.S. Fortune 1000, as well as the top 1,000 international companies, end users of those companies, and their affiliates.

Competitive Summary

Poggle's products are unique in the capabilities they bring to market. There is no direct competition for the company's products. Poggle's products are focused on the globalization of information distribution and access, while competitor's products are more niche focused.

Business Model

Poggle's business model is comprised of three components, Participate, Connect, and Utilize.

• Participate—Poggle's products allow users from any geographic location or verbal language to participate fully in the global e-business community.
• Connect—Poggle's products facilitate international users' connection to e-business, for these users will no longer face a language or spelling barrier.
• Utilize—Poggle's products allow any user to effectively utilize e-business by making it user-friendlier. Being able to communicate in your natural language without worrying about misspelling will greatly enhance users' experience of e-business.

An in-house staff of individuals with extensive experience in all related industries will comprise the operational team. These individuals will have, at a minimum, the following expertise:

• Product Development—focused on the ability to develop and package software products and bring those products to market.
• Marketing—extensive knowledge of merchandising, promotions, advertising, sales, operations, and planning.
• Sales—strong administration and order processing capabilities coupled with day-today sales management expertise.
• Accounting—extensive capabilities in cash flow management, budgeting, and managing receivables in addition to forecasting.

Each of these operational divisions will share a focus on success, achievement, and the creation and maintenance of value and customer satisfaction.

Management Team

The company's management team consists of three highly skilled individuals who together founded the company in September 2000. These individuals have extensive knowledge and expertise in the technology behind Poggle's applications. Furthermore, they share a vision for Poggle's future and they excel at keeping the company on track to achieving that vision.

As the company grows, the three founders intend to bring on an executive team skilled in the daily operations as well as the strategic and tactical management and oversight of the organization. The founders intend to then divide their talents to areas best served by them.

Financial Requirement and Use

The company is seeking pre-IPO equity/debt funding of $1.6 million in order to launch and promote the company's products and services. The company is projecting net profit of $944,000 on $3.4 million gross, or approximately 29% of sales, over the course of the first 12 months of operation.

Today's e-business landscape is one that is painted with many companies in many geographies worldwide. In this environment, there is no real solution to the language barriers that exist to totally effective use of e-business.

Poggle's vision is to facilitate global e-business by providing applications and tools that will dissolve the barriers created by the multi-lingual global economy. No company ever has taken on this challenge and presented a solution that is both affordable and easy to access and use. This is what differentiates Poggle's approach and is what generates the value that Poggle intends to bring to market.

Confidentiality and Risk Statements

The information, data, and drawings embodied in this business plan are strictly confidential and are supplied on the understanding that they will be held confidentially and will not be disclosed to third parties without the prior written consent of Poggle.

This business plan represents management's best current estimate of the potential of the business. It must be recognized that no business is free of major risks and few business plans are free of errors of omission or commission.

Market Overview

In its simplest sense, e-business is the use of technologies to improve and transform key business processes. Most companies understand this and are on their way in the evolution from traditional business practices to e-business. They have begun to technologically enable core processes to strengthen customer service operations, streamline supply chains, and reach existing and new customers. The accessibility and broad reach of technology has forever changed customers' expectations regarding support and response. Customers today expect accurate, round-the-clock service. Hence, the requirement for a massively scalable, reliable, and secure electronic foundation that includes reliable and available servers, industry-leading software and middleware, and worldwide consulting services from experts with industry-specific knowledge—all supported by a scalable and robust infrastructure.

In a few short years, e-business has gone from concept to undeniable reality. The reason behind this is that it works for everyone: consumers, businesses, and governments. The primary values of e-business—cost savings, revenue growth, and customer satisfaction—are proving to be just the tip of the iceberg. Having realized the benefit of technologically enabling individual business processes, many companies are now seeking further return on investment by integrating new and existing e-business applications and technologies. For example, two billion Internet-ready devices like smart phones, PDAs, and other pervasive computing applications are expected to be in consumers' hands in the next two years. These devices and applications are prime candidates to better serve customers and improve efficiency. The key to success is finding a way to give customers what they want without the expense of traditional business operations.

Once a business e-business-enables its operations, it can find itself in new terrain, where all of its competitors and customers are also operating as e-businesses (by 2003, the Net will generate two billion dollars in sales). At that point, "buy, sell, trade online" does not apply just to stocks and financial units, but to many transactions in which an enterprise engages. These e-marketplaces have already proven to be the most fluid and changing aspect of e-business leading the next generation of the technology landscape.

International E-Business and Internet Growth

The growth of e-business will drive much more than just the use of the Internet. In the United States, the growth of the Internet is expected to slow down somewhat due to saturation. At the same time, the outlook for growth internationally is excellent. Once the rest of the world comes online, the Internet will face infrastructure issues. One of the qualities that makes the Internet unique—its unstructured approach—is proving to be one of its greatest challenges.

As the Internet grows to billions of users, its infrastructure will need to be improved dramatically to make it more scalable and secure. Small business Internet access projections show that Internet usage will be 54 percent of the population by the end of 2001. A worldwide Internet population forecast by IDC indicates that there will be half a billion Internet users by 2003. This opens the door to companies like Poggle that have developed products designed to simplify the Internet's infrastructure, or at least how that infrastructure is perceived by individual users. It's not the infrastructure that exists that is the problem, it's the user-friendliness of being able to access and effectively utilize that infrastructure, and that is where Poggle comes into the picture.

Worldwide Internet revenue estimates indicate that the United States and Western Europe will lead the way in Internet commerce. The United States currently has almost 60 percent of Internet traffic. This leaves a tremendous amount of growth for international users.

Market Trends

The number of websites, e-mail users, and size of databases increases daily. Customers want a user-friendly online experience, however, this is becoming more difficult because of the sheer number of users. Certain trends have begun to surface that prove the need for Poggle's products. These include:

• An American Internet user survey found that about 15.9 million Americans using the Internet during 1997 canceled their Internet service because web surfing and e-mailing were too difficult.
• Existing Internet search engines do not tolerate typographical errors that users typically make such as adding an extra period or omitting a dot or comma in a website address.
• Online customers are less than satisfied when they find shopping malls bottlenecked with data and language barriers.
• Navigating through a complex network of more than 1 billion web pages full of structured content becomes more frustrating for the Internet user. Since more websites and pages appear while others change faster than search engines can index them, Internet users fail to make the right connection as no search engine has indexed more than 33 percent of them.
• Misspelled product and company names with less than 100 percent accurate web addresses lead users to dead ends. This creates frustration for the end user and means a loss of sales revenue for the company.
• Current search engines are not everything that they profess to be. They do not address a user's grammar, spelling, frequency of word use, etc. Search engines are important to Internet use, but they are intolerant of human errors.

The Poggle Business Model

The purpose of Poggle's business model is to explain the overall philosophy of how the company intends to develop, market, and sell its products. Poggle's business model is comprised of three essential ingredients that, when combined, create a powerful central theme: Participate, Connect, and Utilize.

• Participate —Poggle products are designed to enhance users' participation in the global e-business economy. Prior to Poggle's applications, an international user whose first language was not English started with a disadvantage. Now with Poggle applications, this user will be able to participate more fully, without having to worry about their English spelling capabilities.
• Connect —Poggle products enable users in any location worldwide to connect to technology (such as the Internet) and take full advantage of search engine capabilities, without having to worry about spelling, or about the Internet addresses relating to the information they seek.
• Utilize —Poggle products allow users to more fully utilize the e-business technologies such as the Internet. Poggle's software enables users to work more effectively, moving into the background many functions that previously took a great deal of time and effort to utilize.

Competitive Analysis

There are technological changes taking place in the development of information retrieval and processing. These changes are quickly altering the way Internet technology is processed. Poggle is faced primarily with indirect competition from the companies that offer the information process capability.

Poggle is primarily an Application Services Provider (ASP). The ASP business model is one where the company hosts their application on their website and offers other applications, or users, access to that software remotely. In addition to the ASP model, Poggle products also fit into the Client-Server model, where a remote application makes calls to a centralized application (in this case the remote application is Poggle's browser plug in, and the centralized application is Poggle's ASP software).

Being successful in the highly competitive e-business marketplace today is not about the creativity of the idea or even the capability and functionality of the technology. What makes one company successful over another is how effective their technology is at enabling users and creating value for them. Too many companies have assumed that just because they have a catchy idea or a useful product in their minds, that the public will also think so.

Poggle's technology is practically assured of success because its focus is communications, which is the core focus of e-business. By facilitating enhanced communications, Poggle products will create more efficiency and productivity and will spark a new level of inter-global e-business operations. This success will also be Poggle's success.

Selling Strategies

The sales strategy that Poggle intends to undertake is a multifaceted approach utilizing front-end and back-end revenue streams. Front-end revenue streams are those that are paid directly by the users who will directly utilize Poggle's ASP software from the Poggle website. Back-end revenue streams are those where incremental "value-added" services are utilized by companies and partners and where Poggle makes some kind of commission or referral fee from their use. Additional back-end revenue streams include services that are utilized transparently and visitors to the Poggle website, such as advertising and click-through revenues.

Front-End Revenue

Front-end revenue streams are comprised of the direct sales of Poggle products.

Back-End Revenue

The following revenue streams comprise back-end incremental revenue that are not considered to be the primary sources of income for Poggle, but nonetheless will generate limited income.

• Licensing Programs—Strategic partnerships with leading companies that want to build Poggle's software into their products will create licensing opportunities for the company.
• Products and Services Sold to the Poggle User Community—The company will feature specific products and/or services on the company's website that are relevant to the interests of the Poggle user community. These products will generate additional income for Poggle while providing niche-targeted incremental value to Poggle users.
• Click-Through Incremental Revenue—The company will allow content focused banner advertising on its website that brings incremental value to Poggle users. The company will be remunerated for each "click-through" that a user follows from the Poggle site.
• Sponsorships/Co-Branding—The company will sponsor specific opportunities, products, or services that bring incremental value to the Poggle users. Additionally, Poggle will co-brand other incremental products and/or services.

Strategic Partners

Poggle values strategic partnerships and sees them as a way to leverage brand identity while bringing the company's software to large numbers of existing users with minimal marketing efforts on Poggle's behalf. Additionally, Poggle views its strategic partners as all having value-added technology where Poggle's technology, combined with that owned by the strategic partner, together creates a more powerful value proposition than either could separately.

Strategic partners will be added as the company continues to grow. Strategic partnerships that are currently under development include the following companies: Excite, Lycos, InfoSeek, and Yahoo!

Advertising Plan

Poggle's advertising plan is to take heavy advantage of Internet based advertising campaigns, specifically focused on search engine sites. Additionally, Poggle will take advantage of traditional advertising media's as well, including newspaper, magazine, and possibly radio and television depending on projected growth.

Promotions and Public Relations

The public relations strategy has been to create a brand identity for Poggle with the public and business community.

Launch plans include a Media Tour in the top five "global markets" including China, Japan, Korea, the Middle East, and non-Latin Europe. This will give Poggle an opportunity to personally meet with distinguished members of the trade and consumer press and provide them with one-on-one demonstrations.

Online publicity will increase with the launch announcement, distribution of the free download, and online interviews of Poggle's management team. Press relations will continue with high-tech print trade publications, editors, online e-zines, and press releases, awards programs, high-tech analysts, media events, radio, TV, web casts, editorial reviews/calendars, tradeshows, and promotional opportunities.

Organization

Management team.

Poggle's management team has a wide degree of experience in different corporate focuses. The current team is comprised of the three founders of the company. Their core strengths are in the engineering and software development areas. Once fully funded, Poggle intends to hire an experience management team to oversee operations of the company and to assure financial projections are met.

PRODUCT DEVELOPMENT

The product development department is responsible for software development and product packaging. The company's founders will oversee all operations of this department.

CUSTOMER SERVICE/PRODUCT SUPPORT

The company is committed to superior levels of customer satisfaction. To this end Poggle intends to build an internal customer service department. This department will be staffed by knowledgeable people who are also skilled in being effective on the telephone in interpersonal relationship management.

MATERIALS AND PURCHASING

The responsibility of this department will be the establishment of new sources of supply, management of the ordering process, procurement, and stocking.

The sales department is responsible for the achievement of Poggle revenue targets, management and growth of the distribution channels, and pursuit of corporate strategic relationships.

The marketing department is responsible for implementation of the marketing plan, overseeing the development of pricing and price lists, catalogues, and selling sheets. Additionally, this department handles all research and advertising.

LEGAL & ACCOUNTING

The legal department is responsible for management of Poggle's copyrights, trademarks, and patents, in addition to contract negotiation.

INTELLECTUAL PROPERTY PROTECTION

Poggle has aggressively moved to protect its developed intellectual property rights such as trademarks, product designs, and proprietary concepts. These rights are protected through patent application trademark registrations, the maintenance of trade secrets, the development of trade presentation and, when necessary, appropriate action against those who are, in the company's opinion, unfairly competing. Several trademarks have been issued by the United States Department of Commerce. The current registered trademark and future patent beneficiary is Poggle, Incorporated. Poggle will be filing additional trademark registrations and patents for their other technologies in China, Japan, Korea, the Middle East, and Europe.

The company's products are currently available through its website. Once this business plan is funded, the company intends to hire an executive management team along with several other individuals in compliance with the implementation of the company's organizational plan. Additional funds will be utilized to cover operations, sales, marketing, and product development costs for the remainder of 2001. Funds will be utilized to cover expenses estimated at just over $1.6 million for the first 12 months of operation. See the following financial statements for the background on this figure.

Statement of First-Year Cash Flow (in thousands)

Statement of Three-Year Profit and Loss

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Everyone deserves to succeed. But today, for too many Canadians, especially Millennials and Gen Z, your hard work isn’t paying off like it did for previous generations. Your paycheque doesn’t go as far as costs go up, and saving enough seems harder and harder. It doesn’t have to be this way. Every generation should get a fair chance to get ahead.

One of the biggest pressures on people right now is housing. Young Canadians are renting more than ever and being priced out of their communities. Families are finding it difficult to get a good place to settle down. The cost to build homes is too high, and the time it takes to finish projects is too long. We need to build more homes in Canada, and we need to build them by the millions.

The Prime Minister, Justin Trudeau, the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, and the Minister of Housing, Infrastructure and Communities, Sean Fraser, today unveiled the federal government’s ambitious housing plan, Solving the housing crisis: Canada’s Housing Plan , supported by new investments from the upcoming Budget 2024. At the heart of this plan lies a commitment to make housing affordable. No hard-working Canadian should have to spend more than 30 per cent of their income on housing costs. No Canadian should have to live without knowing they have a safe and affordable place to live.

The plan lays out a bold strategy to unlock 3.87 million new homes by 2031. This includes a minimum of 2 million net new homes, on top of the Canada Mortgage and Housing Corporation’s forecast of 1.87 million being built anyway by 2031. Federal actions in this plan, in Budget 2024, and taken in fall 2023 will support at least 1.2 million new homes, and we call on all orders of government to build at least 800,000 more homes by 2031.

Here’s what we’re doing:

Building more homes by bringing down the costs of homebuilding, helping cities make it easier to build homes at a faster pace, changing the way Canadian homebuilders manufacture homes, and growing the workforce to ensure we get the job done. This includes:

• A Public Lands for Homes Plan to lead a national effort to build affordable housing on federal, provincial, territorial, and municipal lands across the country. We will partner with homebuilders and housing providers to build homes on every possible site across the public portfolio and ensure long-term affordability.
• $15 billion in additional loans for the Apartment Construction Loan Program to build a minimum of 30,000 new rental apartments, in big cities, small towns, and rural communities alike, will be proposed in Budget 2024. With this additional financing, the program is on track to build over 131,000 new apartments by 2031-32.
• Launching Canada Builds, a Team Canada approach to building affordable homes for the middle class on under-utilized lands across the country. Canada Builds combines federal low-cost loans with provincial and territorial investments to scale up construction on rental homes for the middle class, from coast to coast to coast.
• Supporting Indigenous Peoples in urban, rural, and northern areas . We will also provide additional distinctions-based investments for Indigenous housing to be delivered by Indigenous governments, organizations, housing, and service providers.

Making it easier to own or rent a home by ensuring that every renter or homeowner has a home that suits their needs, and the stability to retain it. We’re putting measures to protect tenants against unfairly rising rent payments, leverage rental payment history to improve credit scores, increase the Home Buyers’ Plan withdrawal limit, extend mortgage amortizations for first-time home buyers buying newly built homes, and more:

• Launching a Tenant Protection Fund to provide funding to legal services and tenants’ rights advocacy organizations to better protect tenants against unfairly rising rent payments, renovictions, or bad landlords.
• Leveraging rental payment history to improve credit scores, helping you qualify for a mortgage and better rates.
• Increasing the Home Buyers’ Plan withdrawal limit by $25,000 and extending the grace period to repay by an additional three years.
• Extending mortgage amortizations for first-time buyers buying newly built homes . Mortgage insurance rules will be amended to allow 30-year mortgage amortizations exclusively for first-time home buyers purchasing new builds.

Helping Canadians who can’t afford a home by creating more affordable and rental housing – including for students, seniors, persons with disabilities, and equity-deserving communities – and eliminating chronic homelessness in Canada. This includes:

• Providing $1 billion for the Affordable Housing Fund to build affordable homes and launching a permanent Rapid Housing Stream to build on the success of the previous three rounds of the Rapid Housing Initiative.
• Launching a $1.5 billion Canada Rental Protection Fund to protect and expand affordable housing.

The Prime Minister also announced new measures included in Canada’s Housing Plan to attract, train, and hire the skilled-trade workers Canada needs to build more homes.

• $90 million for the Apprenticeship Service , creating apprenticeship opportunities to train and recruit the next generation of skilled trades workers.
• $10 million for the Skilled Trades Awareness and Readiness program to encourage high school students to enter the skilled trades – creating more jobs and opportunities for the next generation of workers to build Canada up.
• $50 million in the Foreign Credential Recognition Program , with a focus on residential construction to help skilled trades workers get more homes built. Like our previous $115 million investment, this funding will remove barriers to credential recognition, so workers spend less time dealing with red-tape and more time getting shovels in the ground.

Transforming our housing system and solving the housing crisis will take a Team Canada effort. No one level of government, home builder, not-for-profit, or community can do it alone. We need every partner pulling in the same direction to build the homes Canadians need.

This is about realizing Canada’s promise of affordable housing for every generation – and it’s just one of the things that we are going to be doing in Budget 2024. Alongside these measures, we’re getting healthy food on kids’ plates, delivering stronger public health care, making life more affordable, and creating good jobs to make sure every generation can get ahead.

“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that.” The Rt. Hon. Justin Trudeau, Prime Minister of Canada

“We are announcing today real, tangible measures that are going to help more younger Canadians get those first keys of their own. We are using every tool at our disposal to deliver housing without delay – because we want to make the dream of homeownership a reality for younger Canadians.” The Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Canada can and will solve the housing crisis, and we’re going to do it by getting every home builder, not-for-profit, mayor, city councillor, and premier pulling in the same direction to build the homes Canadians need.” The Hon. Sean Fraser, Minister of Housing, Infrastructure and Communities

Quick Facts

• The Prime Minister today also announced the creation of a new Deputy Minister of Public Lands and Housing position within the Privy Council Office. The Deputy Minister will oversee and report on federal efforts to build more homes for Canadians through the use of public lands, providing a single point of accountability within the public service. An appointment to this position will be announced later today.
• Since 2015, the federal government has helped almost two million Canadians find a place to call home.
• Restore generational fairness for renters, particularly Millennials and Gen Z, by taking new action to protect renters’ rights and unlock pathways for them to become homeowners. Learn more .
• Launch a new $6 billion Canada Housing Infrastructure Fund to accelerate the construction or upgrade of essential infrastructure across the country and get more homes built for Canadians. Learn more .
• Top-up the Apartment Construction Loan Program with $15 billion, make new reforms so it is easier to access, and launch Canada Builds to call on all provinces and territories to join a Team Canada effort to build more homes, faster. Learn more .
• Support renters by launching a new $1.5 billion Canada Rental Protection Fund to preserve more rental homes and make sure they stay affordable. Learn more .
• Change the way we build homes in Canada by announcing over $600 million to make it easier and cheaper to build more homes, faster, including through a new Homebuilding Technology and Innovation Fund and a new Housing Design Catalogue. Learn more .
• The Apartment Construction Loan Program , a $40 billion initiative that will be topped up with an additional $15 billion in Budget 2024 to boost the construction of new rental homes by providing low-cost financing to homebuilders. Since 2017, the Apartment Construction Loan Program has committed over $18 billion in loans to support the creation of more than 48,000 new rental homes. With our recently announced measures , the Apartment Construction Loan Program is now on track to help build over 131,000 new rental homes across Canada by 2031-32.
• The  Affordable Housing Fund , a $14+ billion initiative that supports the creation of new market and below-market rental housing and the repair and renewal of existing housing. It is designed to attract partnerships and investments to develop projects that meet a broad spectrum of housing needs, from shelters to affordable homeownership. As of December 31, 2023, the Fund has committed $8+ billion to repair or renew over 150,000 homes and support the construction of more than 32,000 new homes.
• The Housing Accelerator Fund , a $4 billion initiative that will be topped up with an additional $400 million in Budget 2024 to encourage municipalities to incentivize building by making transformative changes, such as removing prohibitive zoning barriers. To date, the federal government has signed 179 Housing Accelerator Fund agreements which, combined, will fast-track an estimated total of over 750,000 housing units across the country over the next decade.
• The Rapid Housing Initiative , a $4 billion fund that is fast-tracking the construction of 15,500 new affordable homes for people experiencing homelessness or in severe housing need by 2026. The Rapid Housing Initiative also supports the acquisition of existing buildings for the purpose of rehabilitation or conversion to permanent affordable housing units, focusing on the housing needs of the most vulnerable, including people experiencing or at risk of homelessness, women fleeing domestic violence, seniors, Indigenous Peoples, and persons with disabilities.
• Progress on these and other programs and initiatives under Canada’s National Housing Strategy are updated quarterly at  www.placetocallhome.ca . The Housing Funding Initiatives Map  shows housing projects that have been developed.
• On November 9, 2023, we signed a historic Housing Accelerator Fund agreement with the Province of Quebec.
• Building on the success of the 2023 agreement, the federal government will continue to work closely with Quebec to build more homes for Quebecers, including by delivering additional funding through the Housing Accelerator Fund and the new Canada Housing Infrastructure Fund.
• The Government of Canada’s Budget 2024 will be tabled in the House of Commons by the Deputy Prime Minister and Minister of Finance on Tuesday, April 16, 2024.
• Save more young families money and help more moms return to their careers by building more affordable child care spaces and training more early childhood educators across Canada. Learn more .
• Create a National School Food Program to provide meals to about 400,000 kids every year and help ensure every child has the best start in life, no matter their circumstances. Learn more .
• Secure Canada’s AI advantage through a $2.4 billion package of measures that will accelerate job growth in Canada’s AI sector, boost productivity by helping researchers and businesses develop and adopt AI, and ensure this is done responsibly. Learn more .
• Provide the Canadian Armed Forces with the tools and capacity they need to defend Canada and protect North America, advance Canada’s interests and values around the world, and support its members with an overall investment of $8.1 billion over five years and $73 billion over 20 years. Learn more .

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• Solving the housing crisis: Canada’s Housing Plan
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