e-aaa-bp-priosoft.doc

Strategic & Tactical Business Plan___________________________________________

Strategic & Tactical Business PlanStrategic & Tactical Business PlanForFor

PrioSoftPrioSoft1816 Rambling Ridge Lane,

Suite 301Baltimore,

Maryland 21109Phone: 410-415-0491 Fax: 410-484-0642

Email:[email protected]

________________________________________________________________________PrioSoft

mailto:[email protected]


Outline Editor – Master OutlineOutline Editor – Master Outline

1 Cover Confidentiality Agreement 3 Executive Summary 3.1 Objectives 3.2 Mission 3.3 Keys to Success 4.0 Company Summary 4.1 Company Ownership 4.2 Company History 4.3 Start-up Summary 4.4 Company Locations and Premises 5.0 Products and Services or Products or Services 5.1 Product and Service Description or Product Description or Service Description 5.2 Competitive Comparison 5.3 Sales Literature 5.4 Sourcing and Fulfillment 5.5 Technology 5.6 Future Products and Future Services or Future Products or Future Services 6.0 Market Analysis Summary 6.1 Market Segmentation 6.2 Target Market and Segment Strategy 6.2.1 Market Needs 6.2.2 Market Trends 6.2.3 Market Growth 6.3 Industry Analysis or Service Business Analysis 6.3.1 Business Participants or Industry Participants 6.3.2 Distributing Products or Distributing Services 6.3.3 Competition and Buying Patterns 6.3.4 Main Competitors 7.0 Strategy and Implementation Summary 7.1 Strategy Pyramids 7.2 Value Proposition 7.3 Competitive Edge 7.4 Marketing Strategy 7.4.1 Positioning Statement 7.4.2 Pricing Strategy 7.4.3 Promotion Strategy 7.4.4 Distribution Strategy 7.4.5 Marketing Programs 7.5 Sales Strategy 7.5.1 Explain Sales Forecast 7.5.2 Sales Programs 7.6 Strategic Alliances 7.7 Explained Milestones

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8.0 Management Summary 8.1 Organizational Structure 8.2 Management Team 8.3 Management Team Gaps 8.4 Personnel Plan 9.0 Financial Plan 9.1 Important Assumptions 9.2 Key Financial Indicators 9.3 Explanation of Break-even Analysis 9.4 Explanation of Projected Profit and Loss 9.5 Explanation of Projected Cash Flow 9.6 Explanation of Projected Balance Sheet 9.7 Explanation of Business Ratios 9.8 Explanation of Long-term Plan 10.0 Web Plan Summary 10.1 Web Marketing Strategy 10.2Development Requirements

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2. Confidentiality Agreement2. Confidentiality Agreement

This agreement is to acknowledge that the information provided by PrioSoft in this business plan is unique to this business and confidential; therefore, anyone reading this plan agrees not to disclose any of the information in this business plan without the express written permission of PrioSoft. It is also acknowledged by the reader of this business plan that the information furnished in this business plan, other than information that is in the public domain, may cause serious harm or damage to PrioSoft and will be kept in the strictest confidence.

Upon request, this document is to be immediately returned to PrioSoft.

Signature ____________________

Name (typed or printed) ________________________

Date ___________________________

This is the business plan for PrioSoft. The presentation of this business plan does not imply an offering of securities.

________________________________________________________________________PrioSoft


3. EXECUTIVE SUMMARY3. EXECUTIVE SUMMARY

There is an opportunity in Baltimore, Maryland to expand and further operate a successful software development company. Byron Zaner recognizes this opportunity and has decided to go forward with the expansion of a company named PrioSoft. The company will further penetrate the residential and commercial construction market in the business of providing the best software package for small- and medium-sized construction contractors featuring a combination of desktop and online offerings that allows for unlimited growth. He also recognizes the opportunities for offering superior quality software that delivers strong estimating, contact management, accounting and project management capabilities with the ability to interface with other estimating software such as drawing, accounting, job scheduling and payroll software. PrioSoft will serve its area of business working to make its lines more productive while at the same time controlling expenses. The money required getting the company organized has been provided by the founder. To make the expansion of this company a reality there will be an amount needed of $360,000.00. The $360,000.00 is the complete amount needed to expand and further operate this business. The money will be allocated to take care of all the requirements, including $180,000.00 for software redevelopment, $15,000.00 for office supplies and equipment, $110,000.00 for salaries, $32,000.00 for marketing, and $23,000.00 for miscellaneous operating expenses. This business plan will show the components that make up and accomplish this exciting business venture. This business is based on two vital components:

1. Excellent management that has a mastery of choosing the right product and the right service at the right time with a mastery of knowing what its total market is and how to keep gaining a greater share of that market.

2. Providing an excellent product or service that is not only well accepted now but also whose acceptance and use will continue to grow at an accelerated rate into the future.

PrioSoft will coordinate worker productivity with increasing market demand to ensure continued company growth and development. Its approach emphasizes the individual participation of every employee and member of this organization and the total process of building the company to acquire an ever-increasing market share. By guiding and helping employees with knowledge and awareness, it will build a solid foundation for achieving its most ambitious goals. PrioSoft realizes that this is an ideal time to expand its business in this growing industry and move forward in a steady progression over the next five years. Some of the highlights of its strategy are here briefly summarized:

PrioSoft has talent and experience that is superior for the marketplace. Profitability is assured by its preparation of knowing what the market

requirements are presently and what they are to be in the next several years. With its strategy and budget in place, sales are expected to multiply rapidly and

the company expects to move in on the leaders in the industry.

3.1 OBJECTIVES3.1 OBJECTIVES

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PrioSoft has definite objectives in order to fulfill its desire to participate and achieve an ever-growing market share of the exciting industry in which it is expanding. What follows is a brief summary of the key objectives of PrioSoft:

1. Further penetrate the residential and commercial construction market in the business of providing the best software package for small- and medium-sized construction contractors featuring a combination of desktop and online offerings that allows for unlimited growth.

2. Develop employee capabilities to ensure a strong foundation for participation in a rapidly growing company.

3. Increase sales and revenue at a rate no less than 60% per year.

3.2 MISSION STATEMENT3.2 MISSION STATEMENT

PrioSoft is a company that will strive to excel in the business of providing the best software package for small- and medium-sized construction contractors featuring a combination of desktop and online offerings that allows for unlimited growth. Six points differentiate and highlight the attraction designed into the software for PrioSoft in the construction market.

1. PrioSoft offers superior quality software that delivers strong and outstanding estimating, contact management, accounting, bid management, document management capabilities for a clean and thorough project management and business management package.

2. PrioSoft offers the system at a very competitive price so the users can afford to use it and benefit from its capabilities.

3. PrioSoft provides an interface with other industry software the user may already have such as estimating, drawing, accounting, job scheduling and payroll packages giving the user freedom to implement the facilities best suited to their purposes and retain the ability to enter data only once.

4. PrioSoft has the capability to package a drawing software system having a seamless connection with ours to promote smooth flow for the Design–Build market.

5. PrioSoft provides all these capabilities through online and the desktop. 6. Because of the fact that we supply a residential and separate commercial cost

databases PrioSoft can address both markets equally.

3.3 KEYS TO SUCCESS3.3 KEYS TO SUCCESS

PrioSoft is confident of the following attributes that it demonstrates as keys to its success:

1. Founder’s ability to recognize and define the best course of action2. The consistent raising of productivity3. Diligent effort to regularly lower overall cost4. Recruitment of experienced and talented employees5. Ability to effectively market what PrioSoft provides

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Strategic & Tactical Business Plan___________________________________________4. COMPANY SUMMARY4. COMPANY SUMMARY

PrioSoft began its operation in April 1986. The inspiration for the company was the realization that there is a need for a company that can provide an affordable software system with the capability to manage small businesses in a cost effective manner. The company will be headquartered in the city of Baltimore in the state of Maryland.

4.1 COMPANY OWNERSHIP4.1 COMPANY OWNERSHIP

PrioSoft is set up as a Sole Proprietorship and will become an S Corporation. The ownership is held by Byron Zaner, who holds 100%. Any and all questions relative to ownership should be directed to PrioSoft.

4.2 COMPANY HISTORY4.2 COMPANY HISTORY

PrioSoft, formerly, Priority Software, started with software developed for a distribution business by its founder. The initial thrust was to find a target and franchisors was chosen. The existing system was customized for franchisors to sell to their franchisees. Other configurations and targets were pursued between the founding of the company and 1998. The system was customized for a Handyman franchisee and included all the functions necessary for a handyman. They sold 200 systems to their franchisees but, traded their ownership of the custom modules to us for not having to pay for updates. It was soon realized that Handyman was the tip of a major iceberg, The Construction Industry. The system has been consistently expanded to handle all the contractors in the market served.

First an analysis of the trends showed that contractors buy software to solve a pain and continue to solve individual pains. When they do this data needs to be recorded in each system separately causing the contractor more instead of less work. We contacted estimating system companies and went about interfacing our software with theirs so we could have the glue that would hold everything together. Our interfacing continued to accounting, job scheduling and payroll software. Along the way HomeTech, a company whose estimating software we interfaced, contracted to private label our product with theirs and they sold close to 500 systems.

During this time we refined our own version of estimating, accounting and job scheduling each component of which can compete on its own. This gave us a completely integrated, top notch, system for the small to medium size contractor..

4.3 START-UP SUMMARY4.3 START-UP SUMMARY

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Strategic & Tactical Business Plan___________________________________________The basic organization of PrioSoft is due to the dedication of the founder of the company. The money required getting the company organized and underway has been provided by the founder of the company. To bring the company to the next level there will be an amount of $360,000.00 needed, which will come as a loan. The money will mainly be allocated in the following way:

4.4 COMPANY LOCATIONS AND PREMISES4.4 COMPANY LOCATIONS AND PREMISES

PrioSoft will maintain its headquarters where its management staff will be located in the city of Baltimore in the state of Maryland. At no time will management allow a situation to exist where the company is supporting locations or premises that are not absolutely essential to the most effective operation of the company.

Demographics: Baltimore, Maryland

After New York City, Baltimore was the second city in the United States to reach a population of 100,000, (followed by New Orleans, Philadelphia, and Boston). Baltimore was the second largest city in the nation until 1860, when it was surpassed by Philadelphia. Baltimore remained one of the 10 largest cities in the United States from 1790 until about 1970. The city and metropolitan area currently rank in the top 20 in terms of population.

In the 1830, 1840, and 1850 censuses of the United States of America, Baltimore was the second-largest city in population. It was among the top 10 cities in population in the United States in every census up to the 1980 census. Recently, a 2005 census estimate projected that Baltimore was the city with the largest population drop alongside Detroit and Washington D.C., losing over 84,000 residents between 1990 and 2000. As of 2005, the population was 641,943, down slightly from 643,304 in 2004, but higher than the century-long low of 636,251 in 2000. The Baltimore–Towson metropolitan area, as of 2004, was estimated to have a population of 2.6 million. The population density was 3,111.5/km² (8,058.4/mi²). There were 300,477 housing units at an average density of 1,435.8/km² (3,718.6/mi²). The racial makeup of the city was 64.34% Black or African

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EXPANSION EXPENSESPrioSoft AMOUNTDevelopment $180,000.00Office Supplies & Equipment $15,000.00Salaries $110,000.00Marketing $32,000.00Misc. Operating Expenses $23,000.00TOTAL $360,000.00

Strategic & Tactical Business Plan___________________________________________American, 31.63% White, 0.32% Native American, 1.53% Asian, 0.03% Pacific Islander, 0.67% from other races, and 1.47% from two or more races. 1.70% of the population was Hispanic or Latino of any race. This census however does not accurately represent the city's Latino population however which over the past few years has been steadily increasing. This growth is mainly seen in the southeastern neighborhoods around Fells Point, Patterson Park, and Highlandtown and in the city's Northwestern neighborhoods such as Fallstaff, and various neighborhoods of Northeastern Baltimore. 6.2% of the population was of German ancestry according to Census 2000.

There were 257,996 households out of which 25.5% had children under the age of 18 living with them, 26.7% were married couples living together, 25.0% had a female householder with no husband present, and 43.0% were non-families. 34.9% of all households are made up of individuals, and 11.3% had someone living alone who was 65 years of age or older. The average household size was 2.42, and the average family size was 3.16.

In the city the population was spread out with 24.8% under the age of 18, 10.9% from 18 to 24, 29.9% from 25 to 44, 21.2% from 45 to 64, and 13.2% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 87.4 males. For every 100 females age 18 and over, there were 82.9 males.

The median income for a household in the city was $30,078, and the median income for a family was $35,438. Males had a median income of $31,767 versus $26,832 for females. The per capita income for the city was $16,978. About 18.8% of families and 22.9% of the population were below the poverty line, including 30.6% of those under age 18 and 18.0% of those ages 65 or over.

5. PRODUCT DESCRIPTION5. PRODUCT DESCRIPTION

PrioSoft is proud of its main product line and the features and benefits that make up its attractiveness to this ever-growing market. The main features and benefits of its core products to its customers include that the software is easy to learn and use. As the user continues to do estimates and schedule jobs, templates that they build will continue to make their job easier and more refined. The project management continues to get more refined and used more often. Some of the strengths and capabilities of its core products as it pertains to shelf life, durability and availability include that the software delivers strong estimating, contact management, accounting and project management capabilities with the ability to interface with other estimating software such as drawing, accounting, job scheduling and payroll software, which gives the user freedom to implement the facilities best suited to their purposes and retain the ability to enter data only once.

5.1 SERVICE DESCRIPTION5.1 SERVICE DESCRIPTION

PrioSoft is proud of its main service line and the features and benefits that make up its attractiveness to this ever-growing market. The main features and benefits of its main service to its customers include that the system provides integration of all the facilities necessary to run a construction company. It is simple enough to serve the needs of a one-

________________________________________________________________________PrioSoft

Strategic & Tactical Business Plan___________________________________________man operation as well as those contractors doing $5 million/year. Only one system needs to be learned and it will grow with the needs of the user. Some of the strengths and capabilities of its main service as it pertains to potential market, ease of administration and availability include that PrioSoft provides powerful software to the residential and commercial construction market and backs it up with powerful support to assist the customer as long as they use the software. The combination of desktop and online offerings allows for unlimited growth.

5.2 COMPETITIVE COMPARISON5.2 COMPETITIVE COMPARISON

PrioSoft has done extensive research and investigation of all of the aspects of the competitiveness of the existing market in which it will be participating. PrioSoft management team is fully aware of the major competitors who are:

UDA - Looks better to some because of its resemblance to Windows Explorer with a tree structure for navigation. Contains relatively competitive estimating capabilities, no contact management, no accounting with links to QuickBooks and a reasonably competitive job scheduling. It features very good forms as part of the product. There is relatively little top down view of the projects leaving the user to pull it together outside of the system. Only recently did they include a cost database and it is the bottom of the line product. There is no bid management facility

Turtle Creek Goldenseal - Has most of the features of an integrated package but it is difficult to learn and navigate. The estimating function is minimal.

Bid4Build - Very good estimating with facilities for the rest of the integrated system but, has not matured in any of the other areas. We interface with their estimates.

HomeTech - Good estimating but has not kept up wit the market. Lacks a viable support mechanism. We interface with their estimates.

xActimate - Excellent estimating for the fire and water damage restoration market and we recommend their package for those people since we interface with their estimates.

See attachment: Priosoft Comparison Chart.

PrioSoft recognizes these major competitors as a prime focus because they have been evaluated using criteria of price and value given. This company specifically knows that the advantages that it has over its competition include that PrioSoft provides an affordable software system with the capability to manage small businesses in a cost effective manner. This study of its competition has given the company a mastery of the effects of regulatory agencies, business share, pricing strategies, cut-throat or permissive posturing, as well as strengths and weaknesses of the management teams who head up the companies that make up the competition. PrioSoft maintains working relationships with Bid4Build, HomeTech and xActware.

As much as 50% of the audience for PrioSoft’s products has seasons and do work outside. With that audience the spring and summer are reserved for producing their

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Strategic & Tactical Business Plan___________________________________________product. The sales to that portion of the audience are predominantly in the rest of the year. There is a portion of the audience, predominantly, trades that do work inside and buy any time of the year. The remaining portion of the audience also buys any time of the year.

In as much as 95% of the prospects, the owner of the company is the purchaser and user of the software and is also in charge of the field processes for their company so, being available for the sales when they are no in the field is necessary.

We have instituted a processes where the prospect can get a 30 day trial of the software either form our web site or, if there is a problem doing that, by use sending a CD. This is product is activated only when there is payment. We accept any normal form of payment and have a monthly payment plan with a 5% interest for those who cannot afford to pay the entire amount. The activation code given to these purchasers forces the system to stop running at the end of the period of the payments and another activation code need be given when the full amount is paid. These payments are only done with automatic withdrawals on their credit cards. Because of this there are no receivables to handle.

5.3 SALES LITERATURE5.3 SALES LITERATURE

PrioSoft’s present sales literature consists of the web site which includes a viewable presentation and a walk through the operation of the software and a brochure which are prepared to highlight all of the most important benefits and features. This information will present a compelling point of view as well as a detailed explanation why the consumer should exchange their hard earned dollars for the company’s essential products and services. The sales literature will be complete in every way and will answer the questions of who, what, why, when and where of what the company is presenting.

5.4 SOURCING AND FULFILLMENT5.4 SOURCING AND FULFILLMENT

PrioSoft is totally prepared in the preparation for ease and completion of fulfillment requirements. Fulfillment is handled in 4 ways. All products and containers are produced for the company by a fulfillment company.

1. Direct sales from internet leads are fulfilled directly by PrioSoft. 2. Reseller sales sold by some of the resellers are drop-shipped from Priosoft’s

office.3. Resellers with larger volumes will retain inventories and fulfillment will come

directly from our fulfillment company.4. Sales of the online product will be setup by our support team

5.5 TECHNOLOGY5.5 TECHNOLOGY

PrioSoft has positioned itself in a way to take full advantage of all the technology available for its particular industry. Management has determined that when necessary that

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Strategic & Tactical Business Plan___________________________________________state of the art software and appropriate hardware will be implemented to assist all employees in gaining maximum productivity. To this end the PrioSoft plans for a large portion of the funding to be targeted at redevelopment of the product to keep up with the technology trends and to facilitate easier delivery of online and mobile communication services to be offered to the users.

5.6 FUTURE PRODUCTS AND FUTURE SERVICES5.6 FUTURE PRODUCTS AND FUTURE SERVICES

PrioSoft is currently using its experience and talent to position itself in future markets with the appropriate future products and future services. Its current product and service lines, which include providing the best software package for small- and medium-sized construction contractors, are sufficient in today’s demanding market and will fare very next 2 years as well. In addition to this, the company is developing enhancements as well as creating a new product and services to keep its position in the marketplace ever expanding.

6.0 MARKET ANALYSIS SUMMARY6.0 MARKET ANALYSIS SUMMARY

The construction industry is one of the most exciting industries in the United States. It presents an ever increasing market, a very healthy bottom line, and excellent opportunities for growth. It is, over all, recession proof because when the country is not building, they are remodeling and repairing. The market for our product includes residential and commercial contractors and includes all the trades. This means that every builder, remodeler, general contractor, plumber etc., with income from $10,000 to $5,000,000 is a potential custom for our product. This represents 80% of the construction market. Since only 5% of construction companies are automated, that percentage is expected to explode in the next five years due to many factors, some of which are: 1. A continuingly larger portion of their customer base demand professional contractors

with more accurate estimates, professional proposals and more timely reporting. 2. The ownership of the construction companies is changing to the generation of people

who were taught how to use computers in elementary school and are very comfortable with the computer software and the internet.

3. Software packages are becoming easier to learn and use and much more sophisticated with a retail price that is much less than for the former generation and affordable for even the startup company.

4. The contractor’s accountant is demanding that the data he receives is from an accounting program.

5. The better accountants are guiding their clients in automation of their companies so clients will continue to be in business and, therefore, clients.

6. Most consultants in the industry are aligning themselves with software companies so their clients can run their businesses and report better on the progress the consultant helps design for them. Each of these advisory communities is finding the software packages that streamline operations and save time and money for contractors. They are recommending integrated software so the contractor doesn’t have to do things more than once.

7. Schools that train contractors for licensing and other construction specialties are looking for other avenues of revenue and are aligning themselves with software

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Strategic & Tactical Business Plan___________________________________________companies to make money on instructing the student on business processes and how to use the software. They are also looking to make money on selling the software.

8. Industry associations are promoting the use of software to their members and some are selling the software.

6.1 MARKET SEGMENTATION6.1 MARKET SEGMENTATION

PrioSoft is very much aware of the importance of market analysis as it pertains to market segmentation. At the current time management feels that in relationship to market segmentation the market for PrioSoft is very large and growing. The reason for this conclusion in reference to market segmentation is after careful study of its current and potential customer base. The company strongly feels that the market requires software packages that streamline operations and save time and money for the small to mid sized contractors. By offering a totally integrated construction management software package that will also incorporate data from other software packages and limit data entry to just one time, PrioSoft should be able to capture its market. Through the use of the internet optimization targeting the company’s site to the small to mid sized contractor and through resellers associations and training organizations that target the same audience PrioSoft has designed its marketing pan toward the right audience. 6.2 TARGET MARKET AND SEGMENT STRATEGY

PrioSoft is always interviewing and researching such sources as existing customers, suppliers, bankers, trade groups, and industry trade journals for trends in the industry. All of these say that the market is preparing for an explosion of new software buyers over the next 5 years. Because the company addresses 80% of all contractors in the USA and only 5% of those companies have any automation for their business functions, thought a number of competitors exist in the market, the expansion is large enough to accommodate all of the players.

PrioSoft’s overriding concept is to seed the market with as many free or inexpensive systems and as much internet advertising as possible. The goal is to dominate our targeted segment of the construction industry in 2 years. A major thrust is as many organizations that can distribute as many systems as possible for name recognition.

There are 8 kinds of prospects.

1. Retail sales. Internet sales have been the life blood of the company. The percentage of sales that this segment will dominate will decrease with the thrust to acquire more resellers.

2. Internet users that will buy the use of our software online as a service and pay on a per seat per month basis. This is a priority thrust for the company .

3. On-line leads sales companies having a large audience of contractors to which they could rent the on-line version

4. Associations that buy the $15 estimating module of system. These organizations will use this as an membership incentive and participate in revenue sharing

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Strategic & Tactical Business Plan___________________________________________5. Training organizations, companies that train contractors for any reason, that will

buy the class to teach their students and resell the software for more revenue6. Online product sales companies that will buy and sell the package to their

audience. 7. Industry consultants who do not sell but promote the product to their audience

Some will benefit from individual sales and others will not8. Local System Integrators looking for a product that will help sell their hours their

audience.

6.2.1 MARKET NEEDS6.2.1 MARKET NEEDS

PrioSoft evaluates its market primarily from the standpoint of what the needs are of the individual consumer. This particular user is focused on 3 things.

1. Estimating jobs2. Project Management3. Job Costing

In a large portion of the prospects, approximately 40%, they are new software users who are trying to solve their pain and not implement a system wide product. The next portion of the prospects is those that have an accountant who has recommended that they use QuickBooks. This accounts for about 30% of the prospects. In both cases, their view is not that of a business person trying to make their business run better it is that of reducing a pain. Most of the prospects for the software have not yet separated running a business from being a craftsman. In these cases, the need is to sell to the need and up-sell the rest of the package later. Because of this need, the package is divided into modules that address the separate pains of this audience and allows the sale of each module separately. The pricing or the product is also designed to incentivize them to purchase the entire package and grow with it. For the QuickBooks segment we have built an interface so the quotation built in our software is exported to QuickBooks. With the online user the sale is of the entire package and the training course that will be available will lead them to make more utilization of the product. With the desktop user incentives will be necessary for the sales force to sell the upgrades.

6.2.2 MARKET TRENDS6.2.2 MARKET TRENDS

PrioSoft is very confident and excited about the timing of the business in its industry. It is the company’s position that this is the ideal time to be on the move in this ever growing market. Evaluating different which companies are getting into the construction service market indicate that many companies having existing markets for their service and product in accounting, manufacturing, etc, are targeting construction. A sample of this is a company called TechTarget that has been very successful in getting leads for companies serving manufacturing and other industries has recently jumped into construction and looks at it as their future leading industry. ServiceMagic is a company that supplies leads to contractors all over the country and has grown by orders of magnitude over the last 4 years. They now have numerous competitors that are growing at similar rates. A number of Handyman franchises have sprung up and have acquired

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Strategic & Tactical Business Plan___________________________________________franchisees all over the country over the last 10 years. At this point that the average consumer is familiar with their names and their franchisees are growing and making money. Only in the last 10 years has there been a selection of software available for the small to mid sized contractor at a price they could afford. All of the preceding illustrates the phenomenal growth that we have seen recently in the construction industry and services being provided to and for that industry and that it is just the first step.

6.2.3 MARKET GROWTH6.2.3 MARKET GROWTH

PrioSoft recognizes that it is participating in a very large industry with a great growth rate. Its projected growth will be set at a rate greater than the industry average. PrioSoft implementation of its business strategy will lend itself to fast paced development and dominance of a significant market share. The company has determined the growth of its market on the basis of an ever-increasing customer base, and dollar volume base as well.

6.3 INDUSTRY & BUSINESS ANALYSIS 6.3 INDUSTRY & BUSINESS ANALYSIS (PRODUCTS & S(PRODUCTS & SERVICESERVICES))

PrioSoft knows that in the final analysis it can only do well if overall sales are there and expenses are capped at a reasonable level. Its particular position in this industry is that the other companies do some of the things correctly but not as many as it feels that it can do to become a market leader. Some competitors include such companies as UDA, Turtle Creek, HomeTech, xActware, Bid4Build and a raft of others with a variety of capabilities, prices and offerings. PrioSoft has found that some of the other companies have higher prices and inferior software that some provide either online or desktop services only. PrioSoft on the other hand, operates in an advantageously different manner as outlined by offering affordable services to residential or commercial clients featuring a combination of desktop and online offerings that allows for unlimited growth.

6.3.1 DISTRIBUTING A PRODUCT & SERVICE6.3.1 DISTRIBUTING A PRODUCT & SERVICE

Because of the nature of this business the company has learned that the best places to promote its products are through online Internet exposure. The advantages are the fact that the company will generate more revenue at a lower cost. Therefore, our targets are direct sales of desktop software and online services as well as resellers whose base is online distribution. The rest of the distribution is dominated by industry associations an industry training companies. Other outlets include industry consultants and system integrators throughout the country.

6.3.2 COMPETITION AND BUYING PATTERNS6.3.2 COMPETITION AND BUYING PATTERNS

PrioSoft is excited about its position in relationship to its competition. The management of the company has discovered some innovative and creative ways of acquiring all the components that make up its product line. The need for a low-based cost that transcends to a lower net cost prior to sale and therefore transcends into a greater profit is what

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Strategic & Tactical Business Plan___________________________________________keeps PrioSoft on the cutting edge of continuously competing on a favorable basis. Such things as inventory control, source of components, fast turnover, production schedules, all contribute to a healthy aspect of competing with other companies.

6.3.3 MAIN COMPETITORS6.3.3 MAIN COMPETITORS

PrioSoft recognizes the following main competitors that affect its industry. PrioSoft has chosen them because of their level of participation, stability, and marketing. The main competitors are:

UDA Turtle Creek Bid4Build HomeTech xActware

7. STRATEGY AND IMPLEMENTATION7. STRATEGY AND IMPLEMENTATION

PrioSoft centers its strategy on the premise that the company resonates with the consumer because it offers an affordable software system with the capability to manage small businesses in a cost effective manner. Always keeping that in mind, it has its management constantly focus on productivity being high and of course expenses remaining very modest. PrioSoft is diligent in dissecting every aspect of this business to make each component productive and contributive to the goal of a highly profitable relationship with its customers.

7.1 STRATEGY PYRAMID7.1 STRATEGY PYRAMID

PrioSoft knows that it’s wise to understand the framework from initial goal back to the essential implementation. The purpose of the pyramid here is to place at the very top an individual emphasis that is the focus of a strategy for the company, such as introduction of a new product line. Picture if you will, the next level down the individual actions or tactics necessary to implement the emphasis or strategy. Finally, at the bottom of its pyramid are the individual programs necessary to support any and all actions that contribute to achieving the emphasis or goal. PrioSoft wants to highlight that it is not only adhering to its understanding of the strategy pyramid, but that it also monitors everything in the process which leads to a logical whole plan.

7.2 VALUE PROPOSITION7.2 VALUE PROPOSITION

PrioSoft adheres to value-based marketing in its conceptual outlook. The value-based benefits of the company that it strives for consumers to acknowledge include that it provides a totally integrated construction management software package that will also incorporate data from other software packages and limit data entry to just one time. In this way PrioSoft is very sensitive to the communication of what it is proposing to its

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Strategic & Tactical Business Plan___________________________________________customers as well as living up to the promise behind what it does. The company demonstrates that it backs up what it does with a 100% customer satisfaction attitude.

7.3 COMPETITIVE EDGE7.3 COMPETITIVE EDGE

PrioSoft is decisive about staying ahead of its competition. The company knows that this is an everyday every hour re-evaluation of what is going on in its marketplace. Its current key advantages in relationship to competitive edge include that it offers a courteous and knowledgeable staff of well trained personnel dedicated to providing exceptional customer service.

7.4 MARKETING STRATEGY7.4 MARKETING STRATEGY

PrioSoft is aware of all of the different choices in relationship to marketing strategy. Because of its research and recommendations from management it has chosen to market what it does through online Internet exposure through search engine optimization, resellers, and by word of mouth. It has chosen this strategy because costs are minimal, effectiveness is extremely high and branding recognition is enhanced.

7.4.1 POSITIONING STATEMENT7.4.1 POSITIONING STATEMENT

PrioSoft takes the position that its primary focus of what it does in the marketplace is to provide more quality at a lower price. This is how PrioSoft distinguishes itself in the marketplace.

7.4.2 PRICING STRATEGY7.4.2 PRICING STRATEGY

PrioSoft has after careful consideration decided to align its pricing at a lower level in comparison to its competition. This fits in perfectly with where the company sees itself positioned in the total marketplace and communication with its customer base as far as getting appropriate value and still maintaining sufficient motivation for high volume.

7.4.3 PROMOTION STRATEGY7.4.3 PROMOTION STRATEGY

The management of PrioSoft believes very strongly in press releases to significantly get the word out of the value of what it does. This will always be a focus of its promotion efforts. However, though this is a crucial part, this is only one part of its promotion strategy. On a consistent basis the company will be promoting what it does through online Internet exposure through search engine optimization, resellers, and by word of mouth. This along with all the individual selling efforts of its staff demonstrates a dynamic way for it to build the penetration of what it does in the marketplace.

7.4.4 DISTRIBUTION STRATEGY7.4.4 DISTRIBUTION STRATEGY

________________________________________________________________________PrioSoft


PrioSoft focuses on all three aspects of distribution concerns, that is, coverage, control and costs. These aspects can all be complex. PrioSoft is certain that it has made the wisest decision in relationship to its coverage and control and cost for its distribution strategy. The coverage and control that it’s striving for is achieved by its various marketing programs. Its cost structure is geared to enhance its distribution based upon its positioning in the marketplace.

7.4.5 MARKETING PROGRAMS7.4.5 MARKETING PROGRAMS

PrioSoft knows that in reference to its marketing programs it needs to tell an excellent story. Its story is compelling, detailed and highlights many of its capabilities. The company knows that its consumers hear its voice loud and clear through every aspect of the company, staff, reputation, and quality control. PrioSoft strives to be indispensable to the consumer. Its marketing programs work to identify this company, highlight competitive advantages, show appreciation for customer feedback, take advantage of marketing resources, and demonstrate that the company is knowledgeable, energetic, and enthusiastic.

7.5 SALES STRATEGY7.5 SALES STRATEGY

As stated earlier, PrioSoft is currently focusing its sales strategy on the implementation of marketing programs, which include online Internet exposure through search engine optimization, resellers, and by word of mouth.

7.5.1 SALES FORECAST7.5.1 SALES FORECAST

PrioSoft has developed a method for not only developing its sales forecast but also the ability to stand behind the numbers. The company has determined that based on its distribution resources, competitive advantages and sound financial analysis, that it expects to do the following sales over the year 2007: $60,000.00; the next year 2008: $500,000.00; and over the following year 2009: $1,700,000.00. This company knows full well that in order to make its business plan happen, everything has to make sense. At PrioSoft, the company is grounded in reality in making reasonable assumptions that it feels very confident it can accomplish. Its strategies are state of the art, clear, and precise.

Projected Sales Growth Expected

________________________________________________________________________PrioSoft


7.5.2 SALES PROGRAMS7.5.2 SALES PROGRAMS

PrioSoft has sales programs that assure that its revenue forecasts are realized completely and on schedule. The person on its dedicated management team directly responsible for sales performance is Byron Zaner. To make this real the company has set deadlines with amounts as well as budget restrictions for a highly profitable sales program. With its comprehensive marketing program and competitive positioning, PrioSoft is confident in concrete terms to see its sales milestones and deadlines become realities.

7.6 STRATEGIC ALLIANCES7.6 STRATEGIC ALLIANCES

PrioSoft is constantly working to build a network of key individuals and companies that work as alliances to accomplish its major strategies. The company management is strongly encouraged to develop relationships with Associated Building Contractors, Builders Websource, NWBuildnet, and all individuals that may have a favorable relationship with any of its working teams. These alliances are to strengthen and broaden the foundation of the company and the assurance that its market share and profitability will continually increase.

7.7 EXPLAINED MILESTONES7.7 EXPLAINED MILESTONES

PrioSoft is very pleased with the accomplishments of the company and the participants of the company. The company is very proud of its loyal wonderful staff and the staff’s dedication to reach all forecasts and milestones on which the staff sets its course. The goals for the company include the following:

Having 5 resellers each selling 10 systems per month at $300 each Having 50 online users at $25.00 each month Having 2 organization sponsors each selling 20 systems per month at $15.00 each

with 10% of systems upgraded at $100.00 each

________________________________________________________________________PrioSoft

Strategic & Tactical Business Plan___________________________________________ Having 2 schools training and selling 3 systems per month at $2,000.00 for the

course and $300 each as well as 40 direct sales from web site at $600 each

8. MANAGEMENT SUMMARY8. MANAGEMENT SUMMARY

Management is the core and nucleus of any organization. It’s not just personnel and individuals’ resumes but so much more that encompasses vision, talent, harmony, beliefs, and commitment. PrioSoft is led by Byron Zaner, the key player of the management team who provides all the talent necessary to complete every aspect of this business plan.

8.1 ORGANIZATIONAL STRUCTURE8.1 ORGANIZATIONAL STRUCTURE

PrioSoft knows how important the organizational structure is to the success of a company. Each position with this company has a detailed job description as well as a defined relationship to the whole. At the very head of the company is Byron Zaner. That position holds the title of Owner. From other management positions to department heads, to first line implementation staffs, the structure of the organization is detailed and complete. Authority is properly positioned to achieve maximum effectiveness of each organizational structure.

8.2 MANAGEMENT TEAM8.2 MANAGEMENT TEAM

What follow are the top position of PrioSoft and his name. A brief description of his duties and responsibilities as it pertains to the successful management and development of this company’s goals is available upon request.

Byron Zaner, Owner

8.3 MANAGEMENT TEAM GAPS8.3 MANAGEMENT TEAM GAPS

PrioSoft recognizes that in any growing company often times management personnel have to wear more than one hat. As a result often times a gap or gaps may exist until the company is developed enough to have a specific person for every task required. PrioSoft currently has everything covered and feels very confident that each task is assigned to a very competent member of its management team. The company will always be sensitive to this issue and prevent any weakness by having and planning a contingency program that overlaps job responsibilities.

8.4 PERSONNEL PLAN8.4 PERSONNEL PLAN

PrioSoft defines its total work force to protect the success of its business plan. All aspects of the business have been sufficiently analyzed to determine each and every position required to run a fully functioning operation that can complete all of the strategies and programs to be undertaken.

9. FINANCIAL PLAN9. FINANCIAL PLAN

________________________________________________________________________PrioSoft


PrioSoft has developed its financial plan with the awareness that cash and the bottom line are key components of any successful company. Revenues for the company will come from charges and fees generated from the sales of software packages. The opportunity to increase revenues is being fully taken advantage of as outlined in its overall marketing strategy. To assure that bottom line adequately follows increases in revenue every cure possible is being taken to control all areas of expenses and overhead. The basis of its financial plan is solid growth, increase in revenues, and controlled expenses.

9.1 IMPORTANT ASSUMPTIONS9.1 IMPORTANT ASSUMPTIONS

PrioSoft makes every effort not to assume any aspect of its operation other than having hard factual data to back up any forecast. The entire management team is constantly reminded to base all programs on highly researched statistical information with the slightest possible margin of variation. One of the reasons that the leadership of PrioSoft chose the industry that it is in was to minimize as many variables in the business community as possible.

9.2 KEY FINANCIAL INDICATORS9.2 KEY FINANCIAL INDICATORS

PrioSoft recognizes that the most important financial indicators are cash and bottom line. This company will be constantly monitoring the flow of revenue to the company as well as the expense requirements that deplete the company of its cash. PrioSoft will always try to improve the ratio of revenue and expenses to generate a healthier bottom line in addition to a more healthy cash base.

9.3 EXPLANATION OF BREAK-EVEN ANALYSIS9.3 EXPLANATION OF BREAK-EVEN ANALYSIS

The break-even analysis for this company calculates at what point the company becomes profitable, and also at what point the company will be operating at a loss. The analysis takes into consideration forecasted revenues as well as regular running fixed costs and average per unit sales price also known as per unit revenue. For simplicity the average per unit sales price is adjusted to $1 and the regular running fixed cost are represented as a percentage of that dollar. The purpose of this analysis is to maintain insight on financial realities. This information is vital for all kinds of things, from deciding how to price products or service to figuring whether a marketing program is worth the investment. The break even point for this company occurs when gross sales in any given month = $12,266.74. Formula: (Gross Profit $55,000.00 / Gross Sales $60,000.00) = 91.67%. Total Expenses $134,939.00 / 91.67% as a decimal .9167 = $147,200.83 / 12 = $12,266.74 (Break even amount monthly).

Monthly Sales Amount Needed To Break EvenMonthly Sales Amount Needed To Break Even

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9.4 EXPLAINED PROJECTED PROFIT AND LOSS9.4 EXPLAINED PROJECTED PROFIT AND LOSS

PrioSoft sales are forecasted to be increasing on a regular basis. Gross margin is also expected to increase on a regular basis. Breaking down the profit and loss projections and monitoring them on a regular basis is essential to the foundation of the company.

9.5 EXPLAINED PROJECTED CASH FLOW9.5 EXPLAINED PROJECTED CASH FLOW

As stated earlier, PrioSoft will focus its attention on bottom line and cash. Its projected cash flow is very positive. With forecasted increasing revenues and controls on overhead and expenses it will look to see an increasing bottom line as well as increasing cash.

9.6 EXPLAINED PROJECTED BALANCE SHEET9.6 EXPLAINED PROJECTED BALANCE SHEET

The projected balance sheet for PrioSoft highlights total assets, total liabilities, as well as capital. With projected cash flow already established the company balance sheet exemplifies a company whose revenues are increasing as well as its bottom line in cash. The leadership of this company offers its financials as proof positive of the workings of this business plan.

9.7 BUSINESS RATIOS9.7 BUSINESS RATIOS

Equipped with income figures, a balance sheet, and a cash flow statement the company can present a complete financial picture of PrioSoft. To clarify and spotlight its financials it presents the following ratios and illustrates an accurate picture with all things having

________________________________________________________________________PrioSoft

Strategic & Tactical Business Plan___________________________________________been considered. The first ratio is the current ratio = current assets $2,100.00 divided by current liabilities $6,000.00. The CURRENT RATIO is 35%. The second ratio is the quick ratio = (cash $2,000.00 + investments $0.00 + receivables $0.00) divided by current liabilities $6,000.00. The QUICK RATIO is 33.33%. The net profit margin = net profit divided by gross revenue on sales $60,000.00. The NET PROFIT MARGIN RATIO is to be determined. The return on investment = net profit divided by total assets $4,000.00. The RETURN ON INVESTMENT RATIO or ROI is to be determined.

9.8 EXPLAINED LONG-TERM PLANS9.8 EXPLAINED LONG-TERM PLANS

PrioSoft believes that its long-term prospects for a very successful company are excellent. The industry chosen and the strong foundation of the company lend itself to nothing but positive results in the long-term future. With a market sensitive management team and excellent systems in place to monitor competitive shifts or changes PrioSoft is ideally positioned to continue its successful plan on through the next decade.

10. WEB PLAN SUMMARY10. WEB PLAN SUMMARY

PrioSoft observes the increasing importance of the Internet in all that the worldwide web encompasses. This company not only is a participant in the worldwide web but also with its management team will continually strive to have a competitive edge by a significant presence and plans for exposure on the worldwide web. Because of the ever-increasing sophistication of the American Consumer and the ever-increasing participation on the Internet by the American Consumer, PrioSoft will apply all of its resources to be the industry leader in utilization of the Internet and its commerce.

10.1 WEB MARKETING STRATEGY10.1 WEB MARKETING STRATEGY

PrioSoft recognizes that there are many parts to a company success and its involvement in the Internet. The first part is a fully functioning presentable web site that resonates with the consumer and the personnel of the company. To that end, the management team has assigned the evolving development and maintenance of the web site for PrioSoft. The second part is a concerted program of search engine optimization to assure that penetration of the marketplace is vast and consistent. Association of company identity and web site presence shall be an integral part of all company promotional activities and materials. The third part is to utilize the company web site in all aspects of sales processing and customer service. The fourth part is to utilize all capabilities on the worldwide web for company banking, training, and procedures. In the future as video conferencing and other technologies become commonplace and developed for the worldwide web, the company shall be among the first to participate.

________________________________________________________________________PrioSoft


10.2 DEVELOPMENT REQUIREMENTS10.2 DEVELOPMENT REQUIREMENTS

PrioSoft sees that the expertise of someone involved with the worldwide web is very specific. The management team is committed to providing ongoing training for those members of the company directly associated with the development of its website, the implementation of search engine optimization, and the adaptability for customer service and other procedures utilizing the world-wide web. In addition to ongoing training, the company will commit an appropriate amount of company resources sensitive to revenues generated by the web site presence. In addition, as it relates to productivity personnel will have access to computer capabilities that tie in the web presence with all of its internal company workings. The development of these programs will be the direct responsibility of an assigned person from its management team.

Balance SheetPrioSoft

Category 2007 2008 2009Assets Current Assets: Cash $2,000.00 $2,000.00 $2,000.00Accounts Receivable $0.00 $0.00 $0.00Inventories $100.00 $100.00 $100.00Prepaid Items $0.00 $0.00 $0.00Investment Portfolio $0.00 $0.00 $0.00Other $0.00 $0.00 $0.00Total Current Assets: $2,100.00 $2,100.00 $2,100.00

Fixed Assets:Land $0.00 $0.00 $0.00Buildings $0.00 $0.00 $0.00Equipment $1,600.00 $1,600.00 $1,600.00Machinery $0.00 $0.00 $0.00Other $300.00 $300.00 $300.00Total Fixed Assets: $1,900.00 $1,900.00 $1,900.00

Intangibles $0.00 $0.00 $0.00

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Strategic & Tactical Business Plan___________________________________________Goodwill $0.00 $0.00 $0.00Copyrights $0.00 $0.00 $0.00Patents $0.00 $0.00 $0.00Total Intangibles $0.00 $0.00 $0.00Total Current, Fixed and Intangible Assets $4,000.00 $4,000.00 $4,000.00

Liabilities

Current Liabilities:Accounts Payable $6,000.00 $6,000.00 $6,000.00Accrued Expenses Payable $0.00 $0.00 $0.00Other $0.00 $0.00 $0.00Total Current Liabilities $6,000.00 $6,000.00 $6,000.00

Long Term Liabilities:Notes Payable $5,000.00 $5,000.00 $5,000.00Balloon Payments Due $0.00 $0.00 $0.00Other $0.00 $0.00 $0.00Total Long Term Liabilities $5,000.00 $5,000.00 $5,000.00Total Current and Long Term Liabilities $11,000.00 $11,000.00 $11,000.00

Net Worth = Assets- Liabilities ($7,000.00) ($7,000.00) ($7,000.00)

Profit & Loss StatementPrioSoft

Category 2007 2008 2009

Revenue Gross Sales $60,000.00 $500,000.00 $1,700,000.00Less Charge Backs, Returns & Negative Adjustments $0.00 $0.00 $0.00Net Sales $60,000.00 $500,000.00 $1,700,000.00Less Cost Of Sales (Costs outside what listed below.) $5,000.00 $0.00 $0.00Gross Profit $55,000.00 $500,000.00 $1,700,000.00

Operating Expenses Sales Expenses: Salaries and Wages $55,000.00 $55,000.00 $55,000.00Commissions $5,500.00 $5,500.00 $5,500.00Payroll Taxes $1,800.00 $1,800.00 $1,800.00Advertising $15,400.00 $15,400.00 $15,400.00Other $0.00 $0.00 $0.00Total Sales Expenses $77,700.00 $77,700.00 $77,700.00

Administrative & General Expenses:Salaries and Wages $30,000.00 $30,000.00 $30,000.00Bonuses $0.00 $0.00 $0.00Employee Benefits $0.00 $0.00 $0.00Payroll Taxes $900.00 $900.00 $900.00Insurance $3,000.00 $3,000.00 $3,000.00Rent $12,624.00 $12,624.00 $12,624.00Office Supplies $1,000.00 $1,000.00 $1,000.00

________________________________________________________________________PrioSoft

Strategic & Tactical Business Plan___________________________________________Telephone $2,495.00 $2,495.00 $2,495.00Utilities $720.00 $720.00 $720.00Licenses, Membership Costs and Dues $2,600.00 $2,600.00 $2,600.00Legal & Accounting $1,400.00 $1,400.00 $1,400.00Depreciation $0.00 $0.00 $0.00Automobile and Travel Expenses $1,900.00 $1,900.00 $1,900.00Entertainment $600.00 $600.00 $600.00Total Administrative & General Expenses $57,239.00 $57,239.00 $57,239.00Total Operating Expenses $134,939.00 $134,939.00 $134,939.00

Profits Or (Losses) Operating Profit or (Loss) ($79,939.00) $365,061.00 $1,565,061.00Adj. For Any Other Income (Interest Income, etc.) $0.00 $0.00 $0.00Net Income or (Loss) Before Taxes ($79,939.00) $365,061.00 $1,565,061.00Income Taxes $0.00 $0.00 $0.00Net Income or (Loss) After Taxes ($79,939.00) $365,061.00 $1,565,061.00

________________________________________________________________________PrioSoft

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Documents

business participants

area of business

personnel plan

service business analysis6

explanation of longterm

web plan summary10

company summary4

company locations