Software Export Business Plan

1

2
Business Plan for a New Software Development
Company

• 28 May 2000
• The information provided in this business plan is
  confidential. Please do not disclose it without
  checking with me first. Thanks.

3
Personal Goal

• To build an effective and lasting software
  development organization
• The foundation of this organization will be
  formed on a set of professional and social values

4
Values

• Make and meet commitments
• Recognize accomplishment
• Teach and learn from each other
• Keep a balance in your life
• Require quality beyond customer expectations
• Act with a sense of urgency

• Improve continuously
• Communicate without fear of retribution
• Play to win-win
• Think and act like an owner
• Go the extra mile to take care of the customer
• Have fun
• Give back to the community

5
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

6
Innofy Innovative eBiz Solutions

• A developer of custom software
• Focused on eBiz enablement
• An international organization, having offices in
  Washington, Chicago, Singapore, Dubai, Islamabad,
  Karachi, and Lahore

7
Mission (1)

• Planned and sustained growth in

• Number of professionals
• Revenue per professional
• Profits per professional

8
Mission (2)
Build lasting relationships with our clients by
consistently exceeding their expectations
9
Key Objectives
1st Year 5th Year
No. of Professionals 50 800
Revenue US420,000 US45,900,000
10
Strategy
Sales Partnerships with established players
Domain Focus on up to two business domains
Design Innovative solutions
Development Speed Craftsmanship
HR Retention Focus on prof. growth Profit sharing
HR Growth Own training institute Dubai office
11
Main Risks
Short Term Sales
Long Term Growth in the number of professionals
12
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

13
Functional Structure
Singapore
Lahore
Corporate
Washington
Dubai
Institute
Chicago
Islamabad
Karachi
14
Growth in the No. of Professionals
1st Year 2nd Year 3rd Year 4th Year 5th Year
Corporate 3 4 6 8 10
Design Development Lahore 42 96 169 317 490
Sales Support Singapore 2 3 4 5 5
Sales Support Washington 3 10 20 30 40
Design Development Dubai - 15 35 45 50
Sales Support Chicago - 2 3 4 5
Design Development Islamabad - - 25 60 100
Design Development Karachi - - - 45 100
Total 50 130 262 513 800
Institute 5 8 11 14 17
15
Legal Structure

• The Innofy family will consist of five sister
  companies Two registered in Pakistan One each
  in Singapore, the United States, and Dubai
• Initially, all five will have the same Board of
  Directors

16
Start-Up Expenses

• Total start-up expenses (for the Corporate,
  Lahore, Singapore, and Washington offices) for
  the 1st year, including
• Short-term assets (computers, UPSes, generators,
  furniture, etc.)
• Cash required to handle the operations
• US1,044,000

17
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

18
Service Description

• We will develop custom software
• Our key strength will be in business-to-business
  eBiz enablement
• (contd.)

19
Service Description (contd.)

• To start with, we will sit down with our client
  and will carefully review the business process
  that she will be wanting to put on the Web
• Based on our experience, we will suggest a
  minimal number of necessary modifications that
  will be required for an effective ePresence
• (contd.)

20
Service Description (contd.)

• After compiling the requirements and
  specifications, we will help the client in
  devising a deployment plan and an effective
  training, operation, and maintenance strategy
• We will develop the software and deliver it to
  the client after ensuring its quality according
  to the specifications
• (contd.)

21
Service Description (contd.)

• We will help the client train her staff and will
  provide assistance during deployment
• We will offer post-deployment support in
  maintaining as well as enhancing the software

22
Competitive Comparison (1)

• The competition comes in several forms
• No competition at all
• In-house development
• Most significant
• Disadvantages Inefficiency High employee
  turn-over
• Our advantages Speed Cost Long-term support
  

23
Competitive Comparison (2)

• Big-time management consultants
• Disadvantages Generalists They drive their
  clients Cost Lack of innovation
• Our advantages Specialists Innovative
  solutions Speed Fixed-cost

24
Competitive Comparison (3)

• Specialist eBiz consultants
• Focused
• Fast
• Disadvantages None, but they are turning down
  work due to the lack of human resources
• Our advantages None, but demand exceeds the
  supply by quite a distance

25
Competitive Comparison (4)

• Off-shore Software Houses
• Not many
• Low cost
• Disadvantages Inefficient Unfocused Lack of
  domain knowledge Weak marketing
• Our advantages Focused on eBiz Professional
  service On-site presence Methodology
  fine-tuned for speed Partnerships with
  established players

26
Sales Supplements

• The business will begin with a corporate Website
  establishing the positioning, followed by a
  multimedia CD-ROM and a printed brochure

27
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

28
Summary

• We will be focusing on small to medium sized
  businesses wanting to sell into businesses in the
  US
• We will be targeting businesses who are in a
  hurry (2-5 months turnaround time) to get on to
  the Web
• Initially we will be flexible about the
  business-domain that we are going to work in.
  After the first 2-3 projects, we will be focusing
  on 1-2 domains only.

29
Market Segmentation

• Medium-Sized Cos.
• Established players, who want to take their
  existing business process on to the Web
• Standard Rates

• Small Companies
• Startups, bringing innovative and fresh
• business models
• to the Web
• Subsidized Rates Equity

30
Distributing Our Service

• Consulting is sold and purchased mainly on a
  word-of-mouth basis, with relationships and
  previous experience being, by far, the most
  important factor
• The key to the purchase decisions made by our
  initial clients and partners will be the trust in
  the academic qualifications, international
  experience, and professional reputation of our
  top management

31
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

32
Strategy Implementation

• Innofy will start its sales effort first in
  Singapore, then, two months later, in Washington
• The focus in Singapore will be on getting eBiz
  enablement projects through established
  international players. The emphasis in the US
  will be on leveraging those initial partnerships.

33
Pricing Strategy

• One of the advantages of working in partnership
  with established players is that our rates will
  be the same as those
• for their in-house
• consultants
• The goal is to
• gradually increase
• the overall per
• developer revenue

34
Sales Forecast
Details, along with assumptions, in a few minutes
35
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

36
Organizational Structure

• The company will start with 3 key executives
• CEO
• VP Sales
• VP Engineering
• All three will have a high level of international
  experience and expertise in the development of
  cutting-edge software

37
Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

38
Sales Profits Forecasts
Details, along with assumptions, in a minute!
39
Investments
1st Year 2nd Year 3rd Year
US1,044,000 US1,656,000 US959,000
Returns Over Five Years
NPV _at_ a discount rate of 17 US5,125,000
IRR 68
40
Financial Worksheet
41
Appendix The Institute

• A for-profit organization, registered as a
  separate private limited company
• Requires an initial investment of PKR20,000,000
• Instructors hired on the basis of profit/equity
  sharing

42
Institute's Output
Programs 1st Year 2nd Year 3rd Year 4th Year 5th Year
Short Courses (1-10 days) 100 200 400 700 1000
BCS (30 mo) - 1010 5050 100100 100100
Post-BSEE Diploma (6 mo) 2525 2525 2525 2525 2525
MSCS (12 mo) 25 25 25 25 25