Royal’s Software has embarked on an ambitious plan to create a new software product, Royal’s Inventory Basic–a scalable inventory software product. Pursuit Solutions will sell the new product, which is expected to be available in May.
Pursuit Solutions will distribute Royal’’s Inventory Basic through over 1,100 Valued-Added Resellers. This is a $50 Million company hardware integration reseller. The product will retail for $2,499. Each unit sold will earn Royal’’s Software $1,250 Pursuit Solutions will likely sell 250 units each month, according to the six-month projection. The first year of Royal’’s Software sales is expected to bring in $313,000
Product modifications and tech support will be critical components of software sales. Royal’s Software projects $63,200 in product modification by the end of six months.
Royal’, Software has also signed a business agreement to work with Pursuit Solutions and Johnson and Roe (CPA) to create a MAS90 portable interface to collect data that can be used by accounting firms. This software product is in development for the past ten month.
John Royal and Dan Whiteaker were integral to the product’s development. MAS 90, while not a packaged product is bundle with Royal’: Software’s software customization services ($2,000 – $3000). This software product will retail for $2,500
Royal’’s Software will be paid 1/3 of gross sales ($833). From product sales and customization services, Royal’’s Software is expected to gross $500,000.
The two co-owners of Royal’s Software, John Royal and Dan Whiteaker, will each invest $50,000. In addition, the company will obtain a $100,000 short-term loan.
1.1 Objectives
These are the objectives of Royal’’s Software:
- Make the company a leader when it comes to inventory software products.
- Each year, increase sales 20%
- Create one new inventory product each year.
1.2 Mission
Royal’s Software’s mission is to make inventory software affordable that can be scalable and can be modified by customers.
1.3 Keys for Success
Produce products on-time and under budget that meet the requirements and specifications of the customer.