I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a new software company located in [Location]. The company develops a cloud based software package that combines an efficient communication platform with project management software. Customers who buy our product will be able to communicate with their teammates via messaging or video chat while also organizing their project with the software’s project management tools. Whereas our competitors need to create two separate products to offer these benefits to their customers, we have been able to integrate both these features into one incredible product.
[Company Name] is founded and led by [Founder’s Name], who has been a programmer for 20 years. One thing that frustrated him throughout his career is the need for multiple programs to do his work. Many companies need project management software and communication software, but rarely are there products that offer all the benefits and features of both products. During COVID, he began designing and developing a program that included all the communication and project management features that most businesses need. He recently finished developing the software and is now ready to launch his business.
Products Served
[Company Name] develops and sells a software product that incorporates all the best features of communications software and project management software. Clients who purchase our software can track all their goals and projects and easily communicate with their teammates and employees.
Customer Focus
[Company Name] will primarily serve small and large organizations in need of easy communication and project management tools. These organizations will have dozens to thousands of employees that all have major projects they need to keep track of and communicate with each other about. We expect many of these businesses to make $5 million or more in revenue annually depending on the size of the organization and the industry they are in.
Management Team
[Company Name] is founded and led by [Founder’s Name], who has been a programmer for 20 years. He was inspired by personal experience to create a program that integrates communications software and project management software seamlessly. He has been working on this idea for several years and is now ready to sell his product to other companies.
In addition to his programming experience, [Founder’s Name] has worked several years as a manager at a major software firm. So not only does have the technical expertise to create and manage our product but he also has the management and leadership experience needed to run the company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] is creating a software product that is hard to find but in great demand.
- [Company Name] will fill a specific market niche in the software industry. In addition, [Founder’s Name] has surveyed businesses in the target market and received extremely positive feedback saying that they explicitly want to make use of [Company Name]’s products.
- The location is in an economically vibrant area where new businesses are starting at a fast rate.
Financial Highlights
[Company Name] is currently seeking $800,000 to launch. Specifically, these funds will be used as follows:
- Office design/build: $250,000
- Software development and management: $200,000
- Equipment and supplies: $200,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
