ASP Software Developer Business Plan

Despite the slowdown in the sector, last year’s record for housing sales in the US was $550.14billion. The sector will continue to grow steadily over the next two years. New single-family housing construction, which accounted for 67% total residential construction in the US, is one of the highest revenue-generating segments in this segment.

The industry’s business model has changed over the years to be more efficient and cost-effective. The industry has seen a rise in service providers due to low entry barriers. But, the competition is mostly based on reputation and demonstrated performance. Many new competitors have difficulty establishing a foothold in this market.

Existing firms offer several advantages over new entrants. They:

• A pool of skilled subcontractors is available to you.
• Establish ongoing relationships with suppliers of materials.
• Maintain good relationships with property developers and financial institutions.
• Showcase completed work in a local marketplace and get word-of-mouth referrals.

KnaelHaed ASPware (KnaelHaed), is a provider Web-based software applications for vertical markets. The DigitalSuspenders is an online software solution to be offered by KnaelHaed ASPware in support of the building construction process.

The Problem

In research and development investment, the construction industry is not as advanced as other industries. R&D investments for mature US companies are typically around 3.5% of sales. Aerospace, for example, may reinvest between 7% and 14% of their sales. The construction industry reinvests only 0.5% of its sales. Although the reasons for low reinvestment are varied, they are usually due to complexity and costs. Many construction companies have fewer than 10 employees and make very little profit margins. Technology is often seen as a costly luxury.

The Solutions

DigitalSuspenders, a suite of integrated Web-based software applications, will support the entire building cycle, from conception through construction and to maintenance. The suite provides online collaboration, digital takingoff, estimating, project management, and other capabilities to small contractors. All of this is presented in an easy-to-understand and use format.

The Market Size

According to the most recent Economic Census, there are 163,703 home construction establishments. This industry employed 796.880 people. According to the most recent Economic Census, the industry has seen a record growth of 175,000 establishments over the past few years. Meanwhile, the US commercial and institutional building industries are comprised of 34,588 establishments. About 8% of US GDP is made up by the construction industry.

Start Up Costs

KnaelHaed ASPware will initially need $120,000 in order to construct the DigitalSuspenders’ beta prototype. The funds will also be used to cover legal and other infrastructure costs as well to develop potential customers. We are looking for angel investors and corporate partners to fund the initial capital.

Potential Payoff

KnaelHaed ASPware predicts breaking-even in just two years. We expect to generate royalty revenue through licensing our position sensing software and product sales. KnaelHaed ASPware expects to sell the company or have it listed on the stock exchange within three to five years. This will allow for further growth and liquidity for investors.

Management Team

Paul Peen (current President & CEO) has over 20 years’ experience in commercial software design, including stints at Microsoft.com and Expedia.com.

KnaelHaed ASPware combines speed, connectivity and interactivity to provide a unique opportunity for subcontractors and builders to save money and be more efficient. KnaelHaed offers outsourcing solutions at competitive prices. KnaelHaed ASPware is committed to the creation of new ideas in the development of its model that is useful in accomplishing clients’ objectives. Together, the owners’ passion and accumulated field work has made KnaelHaed ASPware more than “just-another-outsourcing-hub”, but a catalyst for the next e-commerce re-invention.

1.1 Objectives

The mission of KnaelHaed ASPware is to provide a medium for custom builders, general contractors, design builders, engineer-contractors, joint-venture contractors, and turnkey contractors to outsource their works with greater cost saving efficiency.

This model is designed to be disruptive against construction software companies that charge thousands of dollars per copy. KnaelHaed ASPware’s model is to provide a subset these capabilities free of charge. KnaelHaed ASPware’s ideal mission is to offer better solutions to all stakeholders by using the open-source model.

1.2 Mission

Our target markets are subcontractors and builders who wish to take advantage of outsourcing. Software companies are providing software solutions to the industry, but their products can be very costly for small and large businesses. It is estimated that home builders only build about a dozen homes each year. This means that only a small number of companies are large enough to be able to pay premium licensing.

Our estimates are that 60% of the US market would be covered by small and medium builders. This would translate to approximately 118,980 businesses. Our focus will be directed to these establishments that are prioritizing on cost efficiency and precise results.

1.3 Keys to Success

We have targeted the construction market for several reasons. The construction industry is worth $787 billion. It has significant growth potential. The annual unit growth of the number of establishments in the housing sector averaged 6.45% and commercial/institutional sector 0.46% last year.

Despite the slow growth of the construction industry it remains a fragmented market. Within the US alone there are over 200,000 establishments (both housing and commercial/institutional) on record.

These are our keys to success

• • Establishing and maintaining strategic alliances and business relationships with software vendors and industry-related business partners
  • Adopting a customer- and market-focused sales and marketing paradigm
  • Manage the business by applying, consistently measuring and adapting the fundamentals of a balanced scorecard.

• • Goals of Employee Learning and Growth Results
  • Financial Goals vs. Results
  • Goals of Internal Business Processes Results
  • Customer Satisfaction Goals Vs. Results