Royal’s Software has embarked on an ambitious plan to create a new software product, Royal’s Inventory Basic–a scalable inventory software product. The new product is scheduled to be released in May and will be sold by Pursuit Solutions.

Pursuit Solutions, a $50 million company hardware integration reseller, will distribute Royal’s Inventory Basic to over 1,100 Valued Added Resellers (VARs). The product will go for $2499. Royal&#8217’s Software will earn $1,250 for every unit sold. Pursuit Solutions will likely sell 250 units each month, according to the six-month projection. The first year of Royal&#8217’s Software sales is expected to bring in $313,000

Support and product modifications will play a crucial role in software sales. Royal&#8217, Software estimates that $63,200 will be spent on product modification within six months.

Royal&#8217’s Software also entered into a partnership agreement with Pursuit Solutions and Johnson and Roe, a CPA firm, to develop a MAS90 portable data collection interface for accounting firms. This software product is in development for the past ten month.

John Royal, Dan Whiteaker and other key players in the product development process. MAS 90 is not a packaged product, rather it is bundled with software customization services ($2,000-$3,000) that will be performed by Royal’s Software. This software product will retail for $2,500

Royal&#8217’s Software will be paid 1/3 of gross sales ($833). Royal&#8217’s Software, which includes product sales as well as customization services, is expected to reach $500,000.

John Royal, the co-owner of Royal&#8217, and Dan Whiteaker, each will invest $50,000. A $100,000 short-term loan will be also provided to the company.

1.1 Objectives

Royal&#8217s Software aims to achieve the following:

• Position the company as a leader for inventory software products.
• Increase sales by 20% every year
• Create one new inventory product each year.

1.2 Mission

Royal&#8217’s Software has one mission: to develop inventory software that is affordable and scalable so customers can easily modify it.

1.3 Keys to Success

The ability to produce products on time and on budget, that meet the user’s needs and specifications.