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Jennifer Raney Herriage

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Software Publisher Business Plan

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Software Publisher Business Plan


Supple Software Company is an S Corporation founded and entirely owned by Ralph and Mabel Smith. The company was established in 1993. It has not received any outside investments. Supple has three software products, which command a large market share. Ralph and Mabel would like to see the company grow by 2000.

While Supple’s goals seem ambitious, they are achievable. In 1999, sales increased by 20% and the company plans to double its output in 2000. They expect net profit and gross margin growths to be proportional. Their goal is to have one employee for every $250,000 of revenue. Their flagship product, Product X will help them maintain a 30% market share according to PC Data. This goal will be maintained by following three keys to success: Market power, customer satisfaction, the right management and the right team.

The Market

Supple has entered a $3.8B market that will experience a 20% increase in the next three year. Supple will target four customer segments: professionals, academics, home offices and small offices. These markets are growing at 2%, 5%, 8%, and 0% respectively. These markets can support 22,000, 15,000 and 10,000 potential customers, respectively. These numbers are for the USA market. The market’s major trend is towards international sales. This market has experienced a significant rise in international PC product sales, which is largely due to the 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 sells three products. Product X is currently the top-ranked Windows task X software, and also the quality leader. It combines an easy-to-use, step-by-step interface full of guidance, help, and glossaries, with a powerful business analysis model, complete financial analysis, and very strong cash flow analysis. Product Y is a stand-alone task Y application for Windows. It is the best product on the market for creating task Y. Their last product was Product Z, which is a creative business process application.

The Strategy

Supple follows four straightforward strategies to achieve its growth goals. They will make customized versions and offer greater value to certain customer groups. They will create a solid marketing network. This will enable them to launch their products onto the market. Supple will remain focused on small to medium size companies, the segment that has been largely ignored by the competition. Supple will also focus on technology that is more suitable for the masses than leading technology for professionals.

Management Team

Ralph and Mabel are seasoned managers who are capable of executing on their ambitious strategies. Arrog International brings Ralph 10 years of marketing and sales experience. Supple, a software distribution business, was established by Ralph in 1993. He is responsible for its growth. Mabel will also be needed to grow the company. Her years of experience as an advisor will be used.

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. It is remarkable that this was possible with only investments from the owners. There was no outside capital.

1.1 Objectives

  1. To double sales in 2000 and increase sales by 5% in 1999.
  2. To increase gross margin and/or net profit margin accordingly.
  3. For every $250K in sales, to limit the number of full-time employees.
  4. To maintain at least 30% market share of Product X, as measured by PC Data.

Success keys 1.2

  1. Marketing power. Market share. Our products need to be available on shelves with attractive packaging.
  2. Quality product and customer satisfaction. Every product we sell comes with a guarantee.
  3. Our survival depends on long-term customer satisfaction.
  4. A strong management team with solid foundations in finance, marketing, and product development. Enough working capital to survive in the working-capital-intensive retail channel.

1.3 Mission

Supple Software is a company that develops, publishes, markets, and sells business tools and business knowledge together in a product which includes software and documentation. It makes business techniques accessible to millions of business users who would otherwise not have the knowledge to use 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

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Magazine Publisher Business Plan


The Group Publishing, Inc. (Group Publishing) is the publisher of “Artists In Business” magazine. 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 is aiming to have a total combined circulation #8220 of Artists In Business #8221 in year one and a further increase of 310,000 by the end year three. The magazine will be published bi-monthly with increased press runs throughout the first 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. The direct marketing of Group Publishing books will be implemented through its magazine readership base.

Publishing is a high-profit, high-margin business. The key to success is successful marketing. The Group has a highly focused multi-dimensional sales and marketing plan to build its total circulation base quickly. 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 is a success. It will generate sales revenues of $3.1million, $4.8million, and $6.4million for the first year. Over the next three decades, the net profit is expected to increase steadily.

The following chart illustrates the key points of the business strategy. Sales, margins, and net profit increase each year. The first year has the lowest margins due to marketing costs for building the circulation base.

1.1 Objectives

The Group’s initial goals are:

  1. To raise seed capital of $150,000 in order to publish by month two. Also, to establish a cash reserve to cover market subscriptions.
  2. Direct sampling and marketing will allow us to reach 90,000.
  3. Organizational sales will enable us to add 50,000 subscribers before the end of the first year.
  4. To sell 10,000 more 2-year subscriptions.
  5. Two 36 page issues will be published initially, each with 50,000 promotional copies.
  6. To increase the number of promotional copies to 75,000 by increasing press runs to 72 pages per issue number 3.
  7. In issues 5 and 6, there will be 100,000 more promotional copies.
  8. The average ad cost will increase from $1,819 up to $2,618 over the course of the first year.
  9. To sell an average of 17.5 ad pages per issue throughout year one.

1.2 Mission

“Artists in Business” magazine is for any artist who works at any level. The magazine will be a platform to highlight artists who have artistic visions in the marketplace. It will also serve as a role model for other women. Group Publishing, through its magazine, books, and editorial content, will be a vessel to inform artists about artistic principles in everyday business and will encourage interaction among artists as business people. Our mission is promote the notion of ‘#8220’ community in the workplace.

1.3 Keys to Success

These are the keys to your success:

  • Attaining the targeted circulation levels
  • Controlling costs while spending maximum on subscription marketing for the first year.
  • Monitoring the response rates to all media executions is important.
  • Follow-up marketing for two to four books in the first one year.
  • Attaining targeted sales revenues from advertising
  • Each issue must contain high-quality editorial content.
  • Each issue should be produced and distributed in a timely manner.


DISCLOSURES

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About Jennifer

Unlike many who get into the field, real estate has been the only career for Jennifer Raney Herriage, who has excelled in serving clients for over 20 years.  Having grown up in a real estate family, Jennifer was first inspired by her mother, a broker … Read more...