B U S I N E S S P L A N

PDAware™ Software Company



B U S I N E S S P L A N




















February 22, 2001




Prepared by:

John Doe
President
PDAWare Software
3456 Main Street
Anytown, US 12345

(999) 555-1212
john.doe@pdaware.com

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PDAware Business Plan
TABLE OF CONTENTS Page



Executive Summary __________________________________________ 1

The Business ________________________________________________ 2

The Market __________________________________________________ 7
Market Analysis ___________________________________________ 7
Market Segmentation _______________________________________ 8
Strengths ________________________________________________ 8
Weaknesses______________________________________________ 8
Target Audience ___________________________________________ 8
Competition ______________________________________________ 9

Strategies ___________________________________________________ 10
Marketing Strategies _______________________________________ 10
Sales Strategies ___________________________________________ 11
Strategic Alliances _________________________________________ 12

The Management Structure ____________________________________ 13
Key Players ______________________________________________ 13
Organization Chart _________________________________________ 14
Staffing Costs (at end of year 1) ______________________________ 15

The Financial Plan____________________________________________ 16
Needs Summary __________________________________________ 16
Revenue Model____________________________________________ 16
Assumptions and Comments_________________________________ 16




APPENDICES ________________________________________________ 17

Financial Statements
Profit and Loss-Year 1 ______________________________________ 18
Profit and Loss-Year 2 ______________________________________ 19
Profit and Loss-3 Year Summary______________________________ 20
Cash Flow-Year 1__________________________________________ 21
Cash Flow-Year 2__________________________________________ 22
Balance Sheet ____________________________________________ 23

Implementation Schedule and Milestones ________________________ 24

Research and Development ____________________________________ 25

Exit Strategy ________________________________________________ 26

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Executive Summary

Development of PDAware™ Project Management Software began in July of 2000 and
the first version was released for beta testing in January 2001. It was developed to
significantly improve the way today’s workforce manages projects. With the rapid
growth of PDA (Personal Digital Assistant) use, the product offers tremendous
advantages to professional project managers, as well as the thousands of other
workers assigned the responsibility of managing projects every day.

PDAware will be positioned as a high-end software package that enables project
managers to review, maintain and synchronize their project data via wireless
technology. There is currently no other company that produces this type of software
with the management features we’ve developed.

It will be packaged and sold in retail markets where PDAs are sold, sold through
traditional online software vendors, sold via the PDAware company website, sold via
targeted direct mail campaigns, and also sold through cooperative agreements with
leading PDA manufacturers.

The potential market for the product is very promising. Palm™ Computing had sold
over 8 million units as of August of 2000 with an estimated 12 million total units in the
market from all manufacturers.

Our financial projection for Year 1 is a net loss after taxes of $174,000. Year 2 is
projected at a net profit after taxes of $1,019,031. Year 3 is projected at a net profit
after taxes of $1,165,987.

The Management Team members have strong backgrounds in both computer
hardware and software development. The CEO was the former Business
Development Officer for XYZ Company, the VP of Product Development was
formerly the Chief Software Engineer with ABC Company, the VP of Finance was
previously Controller for CDE Widgets, and the VP of Marketing was formerly the Sr.
Marketing Director for EFG Software.

The $1.2 million we are seeking will be used to begin production, packaging, and
marketing, and for short term capital and overhead needs. An additional $125,000 is
being provided by the owner.


Confidential Document
1

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PDAware Business Plan
The Business

Business Concept
PDAware has produced a top-notch product that fills a gap in the project
management market. Current PDA project management software does not come
close to encompassing the features that PDAware’s product does. Our software will
not only allow the user to update and track progress on projects via wireless
technology, but will also import project data from other popular project management
software packages. The PDAware's Project Management software along with its
supplemental desktop component is intuitive and full featured, and has gotten rave
revues in Beta testing. The market for these handheld computers is growing quickly
and appears to have great potential for future growth as well.

PDAware Project Management software offers five specific versions that, while still
being totally customizable, are also specifically targeted to groups such as IT,
Finance, Consulting, and Telecommunications. This specialization will make setting
up new projects less time consuming because the framework is already in place.
Other innovative features include the capability for saving customized formats as
templates for use in other similar projects.

PDAware will be focused on new product development, as well as enhancements
and upgrades to the Project Management software program. We will begin
development of additional software packages to fill other needs based on our market
research in the coming year. PDAware is also investigating and staying on top of
new technologies and the possibility of software compatibility with other wireless
devices.

Current Situation
The developers and visionaries of PDAware have been working on the product since
January of 2000. The first six months included research into the project management
software market and the PDA markets. The information gleaned from that research
laid the foundation for the key features of PDAware. The programmers of the product
began work in July of 2000 and the product went into beta testing in January of 2001.
The reviews and feedback from beta testing have indicated an excellent acceptance
level for the product, and therefore, funding is being sought to get the product
finalized, packaged, and into the market.

Objectives
Our objectives are:
1. To hold 20% of the PM software market for the IT industry by January of 2002.
2. To see a positive ROI by January 2003.
3. To hold 20% of the PM software market for the Telecommunications industry by
January of 2003.
4. To hold 20% of the PM software market for the Business and Finance services
industries by January 2004.



Confidential Document 2

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PDAware Business Plan
The Market

Market Analysis
During the research phase, preliminary focus groups were conducted, as well as
surveys at the National Project Management Professional Development Conference.
Findings indicated that there was a significant need for a new project management
software product and the added capability of the PDA link was seen as "extremely
beneficial" by 79% of those surveyed.

To arrive at the number of potential buyers of project management software for
PDAs, we first researched the number of PDA’s currently on the market, and
combined that with data on the current number of professional project managers.

As of December 2000, there had been 3.5 million PDA units sold by leading
manufacturers. This number had increased from 1.3 million in the previous year.
Palm™ Computing is by far the industry leader with approximately 72% of all PDA
sales in 2000 (Source: NPD Intellect) With an estimated 12 million PDA units in
customers’ hands worldwide, the base for sales of the project management software,
as well as future PDA software titles is quite large.

According to the Project Management Institute (the largest of all worldwide project
management associations), current membership levels are at 71,000 thousand
professional project managers worldwide. In January 2001, their overall membership
had increased by 28% over the previous January. Over the past six years,
membership growth has averaged 33% each year. So the number of project
management positions is steadily increasing.


Growth Potential
The Project Management Institute’s top 5 industry areas include:
• Computers/Software/DP 10,091
• Information Technology 9,044
• Telecommunication 6,975
• Business Management Services 4,750
• Financial Services 3,525

Using the growth of both the industries and employment within these industries as an
indicator of future project management positions, the following tables show significant
opportunities for future PDAware sales.


Confidential Document 3

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PDAware Business Plan
Projections for Industry Growth for 1996-2006:

Industry
Billions of Chained dollars (1992)
Change
Annual rate of
change

1996
2006
1996
2006
Computer and
158.8
635.6
476.8
14.9
office equipment
Computer and
165.9
403.4
237.5
9.3
data processing
services
Electronic
140.8
285.3
144.4
7.3
components and
accessories
Security and
124.7
215.3
90.6
5.6
commodity
brokers
Communications
63.1
101.0
37.9
4.8
equipment
(Source: BLS, Monthly Labor Review, November 1997)

The fastest growing occupations, 1998-2008
[Numbers in thousands of jobs]

Occupation
Employment
Change

1998
2008
Number
Percent
Computer
299
622
323
108
engineers
Computer support
429
869
439
102
specialists
Systems analysts
617
1,194
577
94
Database
87
155
67
77
administrators
(Source: BLS Employment Projections) http://www.bls.gov/news.release/ecopro.t06.htm

Computer and data processing services industry sorted by Percent change in
employment, 1998-2008.

Change
1998 employment
Projected 2008 employment
1998-2008
Percent
Percent
Occupation
Number
distribution
Number
distribution
Number
Percent
Database
19,666
1.23
66,632
1.92
46,966
238.8
administrators
All other computer
24,029
1.50
78,871
2.27
54,841
228.2
scientists
Computer support
112,609
7.04
362,913
10.45
250,303
222.3
specialists
Computer engineers
122,010
7.63
384,223
11.07
262,214
214.9
Systems analysts
140,816
8.80
404,991
11.67
264,175
187.6
All other professional
33,949
2.12
97,084
2.80
63,135
186.0
workers
All other engineers
21,723
1.36
45,479
1.31
23,755
109.4
(Source: BLS Employment Projections)
http://www.bls.gov/asp/oep/nioem/empios.asp?Type=Industry

The computer/software/data processing industry, and the information services
industries make up the two largest segments of the Project Manager database
(Source: PMI Fact Sheet).
Confidential Document 4

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PDAware Business Plan

Based on the data above, the percent increase in the number of employees in the top
seven positions for the computer and data processing industries is projected to be
197% from 1998-2008.


Communications equipment industry sorted by Percent change in employment,
1998-2008.

Projected 2008
1998 employment
employment
Change1998-2008
Percent
Percent
Occupation
Number
distribution
Number
distribution
Number
Percent
All other computer
127
0.05
212
0.07
85
66.4
scientists
Systems analysts
3,596
1.28
5,966
1.97
2,370
65.9
Computer support
3,730
1.32
5,570
1.84
1,840
49.3
specialists
Numerical control
machine tool operators
118
0.04
157
0.05
39
32.7
and tenders, metal and
plastic
Engineering, natural
science, and computer
3,527
1.25
4,565
1.51
1,037
29.4
and information
systems managers
Combination machine
tool setters, set-up
operators, operators,
212
0.08
263
0.09
50
23.8
and tenders, metal and
plastic
Computer engineers
5,190
1.84
6,317
2.09
1,127
21.7
Database
361
0.13
439
0.15
78
21.7
administrators
Electrical and
43,917
15.60
53,433
17.68
9,516
21.7
electronic assemblers
All other engineering
technicians and
4,285
1.52
5,214
1.73
929
21.7
technologists
(Source: BLS) http://www.bls.gov/asp/oep/nioem/empios.asp?Type=Industry

The communications equipment industry projects an average growth of 36% in the
number of employees for the top 10 positions from 1998-2008.


Confidential Document 5

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PDAware Business Plan
Services, nec industry sorted by Percent change in employment, 1998-2008

Projected 2008
1998 employment
employment
Change, 1998-2008
Percent
Percent
Occupation
Number
distribution
Number
distribution
Number
Percent
All other computer
60
0.11
124
0.18
64
107.1
scientists
Systems analysts
130
0.25
268
0.39
138
106.5
Computer support
738
1.42
1,371
2.00
633
85.8
specialists
Engineering, natural
science, and computer
599
1.15
964
1.41
365
61.0
and information systems
managers
Management analysts
595
1.14
942
1.38
348
58.5
Computer engineers
182
0.35
275
0.40
93
51.5
Database administrators
124
0.24
187
0.27
64
51.4
Electrical and electronics
101
0.19
149
0.22
47
46.6
engineers
All other engineers
525
1.01
768
1.12
243
46.3
All other teachers and
181
0.35
260
0.38
79
43.8
instructors
(Source: BLS) http://www.bls.gov/asp/oep/nioem/empios.asp?Type=Industry

The business services industry is projected to be the fastest growing sector of the
services industry, and expects an average growth of 3.6% annually according to the
BLS Monthly Labor Review from November 1997.

Overall service industry growth is projected to be 66% in the number of employees
for the top 10 positions from 1998-2008.


Banking and closely related functions, nec industry sorted by Percent change in
employment, 1998-2008

Projected 2008
1998 employment
employment
Change, 1998-2008
Percent
Percent
Occupation
Number
distribution Number
distribution
Number
Percent
All other computer
268
0.19
521
0.31
253
94.6
scientists
Systems analysts
1,390
1.01
2,697
1.61
1,307
94.0
Computer support
1,678
1.22
2,931
1.74
1,252
74.6
specialists
Brokerage clerks
3,606
2.62
5,597
3.33
1,991
55.2
Engineering, natural
science, and computer
1,613
1.17
2,441
1.45
828
51.3
and information systems
managers
Management analysts
1,549
1.13
2,307
1.37
758
48.9
Legal secretaries
74
0.05
110
0.07
35
47.7
Computer engineers
309
0.22
440
0.26
131
42.3
Database administrators
228
0.17
324
0.19
96
42.3
Adjustment clerks
2,428
1.77
3,441
2.05
1,013
41.7
(Source: BLS) http://www.bls.gov/asp/oep/nioem/empios.asp?Type=Industry

Confidential Document 6

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PDAware Business Plan
The banking and finance industry projects an average growth of 59% in the number
of employees for the top 10 positions from 1998-2008.

Based on these numbers, the projected percent increase in employment positions
within the top 5 industries from which the highest number of project management
positions come, averages 90% growth from 1998-2008.


Other PDA Project Management Usage
While professional project managers will be the initial primary market for the product,
PDAware will also target small business managers and executives who are usually
involved in project management as part of their jobs.


Market Segmentation
PDAware is taking a three-phase approach to market segmentation, initially targeting
the high-end computing/software/data processing and information services industries
as phase one. Once these markets have been penetrated, PDAware will move on to
the telecommunications industry, and finally into finance and business services
industries. This approach will allow our limited sales force and marketing dollars to
more closely target their efforts.


Strengths
PDAware has three significant strengths.
1. The wireless PDA interface. No other product offers this interface.
2. Specialty versions for five major project management markets. Only one other
competing product offers specific versions for different industries.
3. Customization by user. Three of the competing products offer a limited type of
customization, but not with the capabilities of PDAware.


Weaknesses
A potential weakness for the PDA product is the current limitation of the wireless PDA
hardware. Although this technology is spreading quickly and will improve significantly
within the next 9-12 months, it could slow down the initial perceived value of the
PDAware product. The number of <I>wireless</I> PDA products currently on the
market is limited to approximately 15% of all units out there, but is expected to grow
and be the majority within the next 3 years.

In the meantime, the PDAware product does not require wireless technology to be an
effective and efficient tool, it will simply require synching the data manually via the
PDA's PC linkup device if the user does not have a wireless enabled PDA.


Target Audience
According to the Project Management Institute, the profile of those working in project
management is as follows:
Sex: 75% male, 25% female;
Education: 90% have college or graduate degrees;
Age: 40% are 41-50 years of age
30% are between the ages of 31 and 40
Certified: 85% plan to obtain or already have their PMP® credential

Confidential Document 7

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PDAware Business Plan
According to PDA manufactures their typical user is:
Sex: 65% male, 35% female
Educations: 75% have college or graduate degrees
Age: 21-48
PDA Usage: 90% use their PDA for business


Competition
There are six similar project management applications available in the market. The
leader is Primaproj, closely followed by Microbuilt Project, and Arteproj. Below is a
table that lists competing products with a breakdown of the features most requested
by project managers. While most of them have the essential software components
necessary for project management, none offer connectivity to a PDA. There are also
some shareware PDA project management software applications available, but these
are very limited and do not offer the feature sets required by the majority of project
managers.

COMPETITOR
Customizable
Targeted to an
PDA link?
Industry
PrimaProj

X

Artiproj



Microbuilt Project
X


TrackOut
X
X

Ever Plan



WebGroove
X


Project
X
X
X
PDAware PMS


Competing Software Products
PRIMAProj offers an interactive view of activities and relationships, a graphical
interface, colored bands to organize data by activity code, resource, cost accounts,
etc. It lets you define interrelated projects and project groups. Multiproject control
allows users to roll up information to analyze and report on project progress. It offers
scheduling and resource leveling options, and user-definable options. It shows the
effect of progress on remaining work, and has multi-user capabilities, and
customizable reports.

MICROBuilt PROJECT is a Windows-based collaboration tool, allowing two-way
communication between everyone involved in a project and as well as data access to
anyone via the internet.

Arteproj puts project planning, cost control, resource tracking, and project analysis
into a single program. It uses a role-based approach to software design and
implementation. It uses Windows-based interfaces, and offers separate role-based
applications for project planning, resource and activity tracking, project cost control,
and executive analysis and reporting. This allows for feedback on how schedule and
personnel changes will impact productivity downstream—including deadlines, activity
resourcing, and project costs.

Ever Plan includes interactive views, a project interface paradigm for management of
projects, resource pools, codes, reports, etc. It offers hierarchical structures, inter-
project relationships, cross-project resource analysis, and security. Ever Plan
Professional is a multi-user application. If offers graphical manipulation on screen, so
Confidential Document 8

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