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Software Publisher Business Plan


Software Publisher Business Plan


Supple Software Company, an S Corporation, was founded by Ralph and Mabel Smith. The company was founded in 1993. No outside investments have been made. Supple sells three different software products that command impressive market share. Ralph and Mabel would like to see the company grow by 2000.

The goals of Supple are ambitious but achievable. There were sales growth in 1999. The next year, they expect to double. They expect net profit and gross margin growths to be proportional. Their goal is to hold personnel to one employee for every $250,000 in revenue. PC Data has determined that Product X is their flagship product and they will continue to hold a 30% market share. This will be achieved by adhering the three key ingredients to success, market strength, customer satisfaction, as well as the right management team.

The Market

Supple is participating in a $3.8 billion market that will have a 20% growth rate for the next three years. Supple will target four market segments: small offices at home, professional offices, academics, and professionals. These markets are growing at 2%, 5%, 8%, and 0% respectively. These markets are home to 22,000, 15,000 or 10,000 potential customers and 12,000 respectively. These are the USA markets. The major trend in the market is toward international sales. The market has seen a significant surge in international PC products primarily fueled by the recent Internet boom. The US market has seen a 22% growth in the last 3 years. But, it is projected that the international PC market will grow at 40%.

Products

Supple Software currently offers three product lines. Product X is currently the top-ranked Windows task X software, and also the quality leader. It offers a user-friendly interface with help and glossaries. Product Y can be used as a standalone task Y application on Windows. It’s the best product to create task Y and the only product that can manage the [omitted] function. Their last product, Product Z is a creative application for business processes.

The Strategy

Supple will adopt four specific strategies to attain the desired growth. They will create customized versions of their products to provide more value to specific customers. They will develop a strong marketing infrastructure. This will allow them to market their products. Supple will continue to focus on small and medium-sized companies, a segment that has been mostly ignored by the rest of the market. Supple will focus more on follow-up technology, which is more applicable to the masses, than on leading technology, which is better suited for specialists.

Management Team

Ralph and Mabel are seasoned managers who are capable of executing on their ambitious strategies. Ralph has 10 years of sales and marketing experience from Arrog International. In 1993 he founded Supple as a software distribution organization and is primarily responsible for its growth. Mabel will be required to help grow the company. Her years as a consultant will be drawn upon.

Supple Software, a dynamic company, was founded in 1993 from humble beginnings and has since grown to $1 million with higher revenue forecasts for 2000. This is impressive, especially when you consider the fact that it was all possible through investments by the owners.

1.1 Objectives

  1. To double sales in 2000 and increase sales by 5% in 1999.
  2. To increase gross and net profit margins correspondingly.
  3. To hold personnel to 1 full-time person for every $250K in revenues.
  4. To maintain at least 30% market share of Product X, as measured by PC Data.

Success Keys 1.2

  1. Marketing power. It is important to ensure that your products are on the shelves in attractive packaging. This will allow you to retain a 30% market share as measured by PC Data.
  2. High quality products and customer satisfaction. We guarantee everything we sell, so the product must live up to our promises.
  3. To survive, we must ensure long-term customer satisfaction.
  4. Strong foundations in marketing, finance, and product design are essential for the right management team. Enough working capital to survive in the working-capital-intensive retail channel.

1.3 Mission

Supple Software develops software, publishes it, and markets it. It makes business skills accessible to millions who may not otherwise be able to access them. It is profitable and generates money. It offers a fulfilling work environment, fair compensation to its employees and a fair return to its owner, as well as a fair royalty to its authors.

Magazine Publisher Business Plan


Magazine Publisher Business Plan


Group Publishing, Inc. (Group Publishing), the publisher of “Artists In Business” magazine is The Group Publishing, Inc. The magazine, which has already printed an initial issue in July/August 1996 is directed at artists at all levels of business throughout the United States. Group Publishing aims to achieve a combined total circulation of ‘#8220’ Artists In Business of 206,000 in the first year and 310,000 by year three. The magazine will appear bi-monthly. Press runs will increase over the next three years. Sample distribution, organizational sales, and direct mail to targeted lists of artists will be utilized to build subscriptions.

Group Publishing will also market books through direct marketing, as well established artist distribution channels. Group Publishing’s magazine readers will provide direct marketing for its books.

Publishing is a high income and high margin business. Successful marketing is the key to success. The Group uses a highly targeted multi-dimensional marketing and sales plan to quickly build its total circulation base. The same channels, methods and strategies were used to establish a circulation level of 500,000 in just one year for Visionary Artist’s periodical.

The Group’s plan will be successful in generating sales revenues of $3.1million in year one, $4.8million in year two and $6.4million in year three. Net profit will increase steadily over the next three years.

The highlights of the business plan are illustrated in the following chart. Every year sales, margins, net profit, and profits increase. The first year has the lowest margins due to marketing costs for building the circulation base.

1.1 Objectives

The Group’s first objectives are the following:

  1. To raise seed capital in excess of $150,000 to publish the book by month 2 and establish a cash reserve for future market subscriptions.
  2. Direct sampling and marketing will allow us to reach 90,000.
  3. To have an additional 50,000 subscribers by the end of year one through organizational sales.
  4. To sell 10,000 additional two-year subscriptions.
  5. To publish two 36 page issues initially with press runs of 50,000 promotional copies each.
  6. To reach 48 pages in issue number 3 and increase press runs by 75,000 promotional copies.
  7. In issues five and six, increase to 100,000 promotional copies
  8. Average ad-page cost increases from $1,819 à $2,618 at the end the first year.
  9. In the first year, to sell an average 17.5 ads pages per issue.

1.2 Mission

“Artists in Business” magazine is for any artist who works at any level. The magazine is dedicated to being a platform for artists who can represent artistic vision in a marketplace and who can both inspire and provide role models to others. Group Publishing through its magazine, books as well editorial content will provide information to artists about artistic principles in everyday businesses and encourage interaction among businesspeople. Our mission is to spread the idea of “community” in the workplace.

1.3 Keys To Success

The keys to success are:

  • Attaining targeted circulation levels.
  • Controlling your costs while still spending as much as possible on subscription marketing within the first year.
  • Monitoring all media executions closely for the highest response rates.
  • Two to four books titles will be followed-up in the second year.
  • Attain targeted advertising sales revenue
  • Each issue should contain quality editorial content.
  • Making all production and distribution dates in a timely fashion for each issue.