Supple Software

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Software Publisher Business Plan

Company Summary

Supple Software was founded in 1993 by Ralph Smith to market his Product X software. It was originally installed in a home office, but moved into its present space in 1996. It has added several new products, and has acquired shelf space in the retail market.

2.1 Company Ownership

Supple Software, Inc. is now a subchapter S Corporation owned entirely by founder Ralph Smith and his wife Mabel. It elected to go subchapter S at the beginning of the 1996 tax year, after having previously been subchapter C from founding until then. Its fiscal year is the calendar year. The Oregon corporation was established with 100 shares issued, 51 to Ralph Smith and 49 to Mabel Smith.

2.2 Company History

Supple Software, Inc. was founded in Ourtown in 1993 as Infoplan, a sole proprietorship. In 1994 it was incorporated in Delaware as Infoplan, Inc. In 1996 it was incorporated in California as Supple Software, Inc. Infoplan, Inc. was dissolved.

For most of its existence, this was a one-man consulting company supporting a product company. It kept a very conservative stance on products, advertising with very slim budgets, with marketing depending mainly on published reviews and direct sales, until the market grew.

In 1995 we introduced a new, break-through Product X™, that was the first effective task X software with bundled spreadsheet and word processor along with automatic charts.

Past Performance
1995 1996 1997
Sales $384,113 $464,592 $695,136
Gross Margin $270,062 $342,824 $480,163
Gross Margin % 70.31% 73.79% 69.07%
Operating Expenses $251,471 $290,145 $513,144
Collection Period (days) 0 0 34
Inventory Turnover 7.00 6.00 6.00
Balance Sheet
1995 1996 1997
Current Assets
Cash $0 $0 $625
Accounts Receivable $0 $0 $124,056
Inventory $0 $0 $28,623
Other Current Assets $0 $0 $431
Total Current Assets $0 $0 $153,735
Long-term Assets
Long-term Assets $0 $0 $35,577
Accumulated Depreciation $0 $0 $24,247
Total Long-term Assets $0 $0 $11,330
Total Assets $0 $0 $165,065
Current Liabilities
Accounts Payable $0 $0 $36,557
Current Borrowing $0 $0 $22,336
Other Current Liabilities (interest free) $0 $0 $25,526
Total Current Liabilities $0 $0 $84,419
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $84,419
Paid-in Capital $0 $0 $76,960
Retained Earnings $0 $0 $36,668
Earnings $0 $0 ($32,982)
Total Capital $0 $0 $80,646
Total Capital and Liabilities $0 $0 $165,065
Other Inputs
Payment Days 0 0 30
Sales on Credit $0 $0 $660,379
Receivables Turnover 0.00 0.00 5.32

2.3 Company Locations and Facilities

The company is located in Ourtown, with offices at 100 Main Street. We were started in a home office but we moved to the present space in 1996. We rent 750 square feet for $900 per month. We have a two-year contract limiting rent increases.