Business Plan

Set of programs from area of computer graphics and CAD on the basis of new methods.

Panasoft 03/2011

Sergey Leontyevich Panasyuk
Marinesko str. 19A, r.12
Sevastopol 99021
Crimea Ukraine
http://www.imagesgenerator.com
Phone: 380-692-431094
E-mail: p739@stel.sebastopol.ua
Skype: imagen911

Executive Summary

The Company
Panasoft is Ukraine based software development firm that uses results of long-term researches in the field of Graphics and CAD. The firm has developed some programs one of which is the graphic editor Images Generator. The new ideas, used in this program, have provided unique opportunities for editing and creation images. Firm Panasoft consist of two persons. Head of firm Sergey Panasyuk began the career in military research laboratories of former Soviet Union. He is the author of the large amount of scientific works and inventions the most of which relate to electronics. He has written some experimental programs on Fortran in which his routing algorithm was used. After modern computers have received a wide distribution he has registered as the private businessman and organized firm as informal development venture with the purpose of use of his scientific developments. Originally the firm was engaged in development of tourist web sites. After some capital was formed firm reoriented on development of the graphic editor Images Generator.
Company mission
Panasoft has developed software technologies that allow creating applications from graphics and CAD area possessing a number of good unique qualities. Our purpose is development of desktop applications, applications for mobile devices and applications for WEB, in which our technologies would be used. Programs from graphics area give ample opportunities of development of creative abilities to users both initial, and a highly professional level. They combine ample opportunities, some of which are unique, with convenience and simplicity of use. These programs expand a scope of graphic editors.
Programs from area of automatic designing allow to improve quality of designing of printed-circuit-boards and IC and to raise labor productivity.
Products and services
The Company's core product program graphic editor Images Generator is not only the graphic editor with a wide scope, but it allows solving the tasks, concerning to CAD, too. Parts of the program can be executed as separate graphic components and be used in other programs. Program for correcting of photos with use of the developed by firm method of transformation of rasters and program for creation of three-dimensional images are such programs.
These programs can be executed not only as desktop applications, but also as applications for mobile devices and Web applications. We plan to migrate Images Generator to number of mobile devises and in the cloud.
One more developed by firm Panasoft method is topological routing algorithm. This method can be used in systems of designing printed-circuit-boards and IC for designing of interconnections. Firm plan create tool for graph representations on basis this method. You can use it to represent complex directed graphs, such as those found in business management, manufacturing, and network analysis.
Market
The software market for graphic editors and systems of designing PCB is estimated in the billions per year range. Within this vast industry are many smaller, specialized categories.
New and fast-expanded segment of the market is programs for mobile devices. This segment demands new approaches and solutions for traditional tasks. Web services are more and more widely adopted.
Modern Web technologies generate a need of development of new effective software engineering methods for design and development of modern Web-based applications. Methods offered by Panasoft meet these requirements.
Sales
The sales strategy that Panasoft intends to undertake is a multifaceted approach utilizing front-end and back-end revenue streams. Front-end revenue streams are those that are paid directly by the users who will directly utilize Panasoft 's software. Back-end revenue streams are those where incremental "value-added" services are utilized by companies and partners and where Panasoft makes some kind of commission or referral fee from their use. Additional back-end revenue streams include services that are utilized transparently and visitors to the Panasoft's website, such as advertising and click-through revenues.
Promotion
Panasoft's advertising plan is to take heavy advantage of Internet based advertising campaigns, specifically focused on search engine sites. Additionally, Panasoft will take advantage of traditional advertising media's as well, including newspaper, magazine, and possibly radio and television depending on projected growth.
The public relations strategy has been to create a brand identity for Panasoft with the public and business community.
Competitive Summary
We do have significant advantages over our competition. They include:

Our biggest advantage is a range of features and capabilities not offered by competitors. Using of the new developed by us methods provide these advantages. These methods are published in scientific magazines. Some of them can be patented.

In our programs original algorithms and solutions, which are difficult for doubling for short time, are used.

The level of salaries of the Ukrainian experts is less than level of salaries in other countries

Modular architecture - more flexible for size and price scaling

Specific and under-served target markets. We see the greatest opportunity for penetration into such market segment as graphic editors for users of initial and an average level.

Applying Technology
In the project results of long researches are used. The main achievement in the field of graphics is the new concept of construction of the graphic editors. This concept has resulted in necessity of development of new methods. Some of these methods are published in scientific magazines. There are next:

Methods of creating of volumetric images allowing creating such images, which it is difficult or even it is impossible to create other ways.

Methods of transformation of raster, which are named by author as shaped resizing, and methods of selection of a part of the image. These methods can be used to processing photos.

Creation of images and textures with using of multi-color lines and lines of variable width.

Algorithm of wire routing, which can be used in programs of automatic designing of printed-circuit-boards and IC and to layout of graphs.

The combination of the plenty predefined shape templates allows creating unlimited amount of there.

Risks
There are significant competitive risks. The respect that name brand companies, such as Adopt, command is powerful. Many consumers trust the name - that's what having a brand is all about! Should such a competitor port a popular application to the Web, consumers would certainly be attracted to the name on the box.
Other important factor is use of our scientific development by competitors. We outstrip the competitors on enough big times. However having significant financial resources they can reduce this lead. Therefore patenting of new ideas is a top-priority task.
Management
Founder of the company Panasoft has a wide degree of experience in different corporate focuses. His core strengths are in the engineering and software development areas. Once fully funded, Panasoft intends to hire an experience contract programmers and management team to oversee operations of the company and to assure financial projections are met.
Financial Requirement and Use
The Company is seeking funding of $1 million for 5 years in order to launch and promote the company's products and services. The company's products are currently available through its website. Once this business plan is funded, the company intends to hire an executive management team along with several other individuals in compliance with the implementation of the company's organizational plan. Some Indian and USA firms have agreed to collaborate with us. Additional funds will be utilized to cover operations, sales, marketing, and product development.

The Company

Panasoft is Ukraine based software development firm that uses results of long-term researches in the field of Graphics and CAD. The firm has developed some programs one of which is the graphic editor Images Generator. The new ideas, used in this program, have provided unique opportunities for editing and creation images. Building block principle let you to divide program on the parts and to use parts as independent components or utility.
Firm Panasoft consist of two persons. Head of firm Sergey Panasyuk began the career in military research laboratories of former Soviet Union. He is the author of the large amount of scientific works and inventions, the most of which relate to electronics. He has written some experimental programs on Fortran in which his routing algorithm was used. After modern computers have received a wide distribution he has registered as the private businessman and organized firm as informal development venture with the purpose of use of his scientific developments. Originally the firm was engaged in development of tourist web sites. After some capital was formed firm reoriented on development of the graphic editor Images Generator.

Company mission

Panasoft has developed software technologies that allow creating applications from graphics and CAD area possessing a number of good unique qualities. Our purpose is development of desktop applications, applications for mobile devices and applications for WEB, in which our technologies would be used. Programs from graphics area give ample opportunities of development of creative abilities to users both initial, and a highly professional level. They combine ample opportunities, some of which are unique, with convenience and simplicity of use. These programs expand a scope of graphic editors.
Programs from area of automatic designing allow to improve quality of designing of printed-circuit-boards and IC and to raise labor productivity.
The developed by us program graphic editor Images Generator allows creating 3D images, which are difficult to create by other methods. It allows to correct photos with use of our unique effective method, enables creating of shapes of complex configuration and has other positive properties. These properties can be advanced in programs of narrower scope.
The program of wire routing based on our algorithms can improve quality of designing of printed-circuit-boards and complex directed graphs.

Products and services

The Company's core product is program Images Generator. Images Generator is application for which any of the following definitions can be applied: graphic editor, 3D images creator, portrait maker and photo transformer, program for engineering designing, art creator and collages creator. Program combines ample opportunities with the small sizes and convenience of using. This program is not only the graphic editor with a wide scope, but it allows solving the tasks, concerning to CAD, too. For example, the program allows obtaining control information for machine with program control. The program allows to carry out drawings and to draw circuits. The program even allows obtaining complex mathematical function in a tabulated kind without using of the mathematical apparatus. Though the program requires completion, it is already enough popular and has received a number of awards and positive responses.

Parts of the program can be executed as separate graphic components and be used in other programs. These are such programs, as banner makers, gif animators, office programs and so on. These components may be used for developing of the program for processing a photo. The user can to select a part of a photo on color properties of the image or in another way and to apply to the selected part filters or to drag the selected part with mouse for creating collages. Correcting of photos with use of the developed by firm method of transformation of raster will be carried out in an interactive mode. One more direction is development of the program for creation of three-dimensional images.
These programs can be executed not only as desktop applications, but also as applications for mobile devices and Web applications. We plan to establish partner relations for migration of our program to mobile devices and to WEB and for its advancing. Some Indian and USA firms have agreed to collaborate with us.
One more developed by firm Panasoft method is topological routing algorithm. This method can be used in systems of designing printed-circuit-boards and IC for designing of interconnections. We plan create tool for graph representations on basis this method. You can use it to represent complex directed graphs, such as those found in business management, manufacturing, and network analysis, as well as phylogenetic trees, which are used in bioinformatics research. Analog of this tool is Microsoft Automatic Graph Layout tool. Our method has a number of advantages in comparison with that, which are applied in Microsoft Graph Layout tool. Experimental program for graph layout is executed on QB.

Market Analysis

The software market for graphic editors and systems of designing PCB is estimated in the billions per year range. Within this vast industry are many smaller, specialized categories. While our competitors include such industry giants as Microsoft, Corel, Adobe, Goggle and many others we believe that our innovative tools and radical pricing structure will make penetration into our desired segment possible.
New and fast-expanded segment of the market is programs for mobile devices. This segment demands new approaches and solutions for traditional tasks. Web services are more and more widely adopted.
Web-based image editors have several advantages to its desktop counterparts. The most obvious benefit is that they allow you to work on any computer (that has a browser). In most cases, you can save your work online, avoid having to install desktop software, and interface with other web-based services.
Modern Web technologies generate a need of development of new effective software engineering methods for design and development of modern Web-based applications. Methods offered by us meet these requirements.

Sales

The sales strategy that Panasoft intends to undertake is a multifaceted approach utilizing front-end and back-end revenue streams. Front-end revenue streams are those that are paid directly by the users who will directly utilize Panasoft 's software. Back-end revenue streams are those where incremental "value-added" services are utilized by companies and partners and where Panasoft makes some kind of commission or referral fee from their use. Additional back-end revenue streams include services that are utilized transparently and visitors to the Panasoft's website, such as advertising and click-through revenues.
Front-end revenue streams are comprised of the direct sales of Panasoft’s products.
Back-End revenue streams comprise back-end incremental revenue that are not considered to be the primary sources of income for Panasoft, but nonetheless will generate limited income.

Licensing Programs—Strategic partnerships with leading companies that want to build Panasoft 's software into their products will create licensing opportunities for the company.

Products and Services Sold to the Panasoft User Community—The company will feature specific products and/or services on the company's website that are relevant to the interests of the Panasoft user community. These products will generate additional income for Panasoft while providing niche-targeted incremental value to Panasoft users.

Click-Through Incremental Revenue—The company will allow content focused banner advertising on its website that brings incremental value to Panasoft users. The company will be remunerated for each "click-through" that a user follows from the Panasoft site.

Promotion

Panasoft's advertising plan is to take heavy advantage of Internet based advertising campaigns, specifically focused on search engine sites. Additionally, Panasoft will take advantage of traditional advertising media's as well, including newspaper, magazine, and possibly radio and television depending on projected growth.
The public relations strategy has been to create a brand identity for Panasoft with the public and business community.
Online publicity will increase with distribution of the free download, and online interviews of Panasoft 's management team. Press relations will continue with high-tech print trade publications, editors, online e-zines, and press releases, awards programs, high-tech analysts, media events, radio, TV, web casts, editorial reviews/calendars, tradeshows, and promotional opportunities.
Advantage of use of new methods is additional opportunities of advertising and popularization. The description of new methods, which can be given in articles, books or on thematic sites, simultaneously is advertising of the program in which these methods are used.

Competitive Summary

We do have significant advantages over our competition. They include:

Our biggest advantage is a range of features and capabilities not offered by competitors. Using of the new developed by us methods provide these advantages. These methods are published in scientific magazines. Some of them can be patented.

In our programs original algorithms and solutions, which are difficult for doubling for short time, are used.

The level of salaries of the Ukrainian experts is less than level of salaries in other countries
Modular architecture - more flexible for size and price scaling

Specific and under-served target markets

We see the greatest opportunity for penetration into such market segment as graphic editors for users of initial and an average level. Our products fill a niche market, which is being underserved by large, brand name corporations. While we need to establish a corporate brand and "identity," there are many users that will be attracted by our price and quality. Once we establish ourselves in a local niche market, we will be able to expand both vertically and laterally, both locally and nationally. The most perspective task is creation of the universal graphic editor combining properties of vector and raster graphic editors.
Good service is necessary addition to Web applications. No product is salable if is isn't convenient and easy to buy, set up, and use. Setup, support, and an online help system, which is continuously updated, must to accompany to Web applications. Users of Web applications are less likely to pirate software.

Applying Technology

In the project results of long researches are used. The main achievement in the field of graphics is the new concept of construction of the graphic editors. This concept has resulted in necessity of development of new methods. That methods are next:

Methods of creating of volumetric images allowing creating such images, which it is difficult or even it is impossible to create other ways.

Methods of transformation of raster, which are named by author as shaped resizing, and methods of selection of a part of the image. These methods can be used to processing photos.

Creation of images and textures with using of multi-color lines and lines of variable width.

Algorithm of wire routing, which can be used in programs of automatic designing of printed-circuit-boards and IC and to layout of graphs.

The combination of the plenty predefined shape templates allows creating unlimited amount of there.

The program block, which determines novelty of the graphic editor Images Generator, is executed as the separate module - dynamic library imagen.dll. The given library is executed on VC6 and can be used in the programs written on VB6, C ++ and other languages. One more graphic component is executed on VB.NET. Using languages VB, C ++, VB.net in program Images Generator and graphic components allows quickly to develop Web applications with the help Microsoft Visual Studio. The mathematical methods of Optimum Control theory are used in experimental programs executed on the basis on a topological routing algorithm. Using of a method of Dynamic programming allow to reduce number of crossings on topological level.

Risks

There are significant competitive risks. The respect that name brand companies, such as Adopt command, is powerful. Many consumers trust the name - that's what having a brand is all about! Should such a competitor port a popular application to the Web, consumers would certainly be attracted to the name on the box.
Other important factor is use of our scientific development by competitors. We outstrip the competitors on enough big times. However having significant financial resources they can reduce this lead. Therefore patenting of new ideas is a top-priority task.

Managment

Founder of the company Panasoft has a wide degree of experience in different corporate focuses. His core strengths are in the engineering and software development areas. Once fully funded, Panasoft intends to hire an experience contract programmers and management team to oversee operations of the company and to assure financial projections are met.
Product development
The product development department is responsible for software development. The company's founder will oversee all operations of this department.
Customer service/product support
The company is committed to superior levels of customer satisfaction. To this end Panasoft intends to build an internal customer service department. This department will be staffed by knowledgeable people who are also skilled in being effective on the telephone in interpersonal relationship management.
Materials and purchasing
The responsibility of this department will be the establishment of new sources of supply, management of the ordering process, procurement, and stocking.
Sales
The sales department is responsible for the achievement of Panasoft revenue targets, management and growth of the distribution channels, and pursuit of corporate strategic relationships.
Marketing
The marketing department is responsible for implementation of the marketing plan, overseeing the development of pricing and price lists, catalogues, and selling sheets. Additionally, this department handles all research and advertising.
Legal & accounting
The legal department is responsible for management of Panasoft 's copyrights, trademarks, and patents, in addition to contract negotiation.

Financial information

Financial Objectives

The following objectives are for the first two years
1. Development of graphic editor Images Generator of $135,000 by the end of Year 1
2. Advertising, promoting and marketing of $100,000 by the end of Year 2
3. Patenting of scientific development of $25,000 by the first half of Year 1
4. Development of web site of $10,000 by the first half of Year 1
5. Development of help documentation, tutorials, writing articles and books of $60,000 by the end of Year 1
6. Translation of $15,000 by the end of Year 2
7. Publication software on CD of $35,000 by the end of Year 2
8. Development of graphic componenets of $50,000 by the end of Year 2
9. Porting graphic editor to web and mobile devices of $200,000 by the end of Year 2
10. Development of programs for photo processing of $200,000 by the end of Year 1
11. Development of tool for graph representations of $200,000 by the end of Year 2

The following objectives are for the next three years
1. Development of vector-raster graphic editor of $400,000 by the end of Year 5
2. Development of program for 3D image creation of $63,000 by the end of Year 3
3. Creation of utilities from graphic and CAD area of $62,000 by the end of Year 4
4. Development of programs for PCB and IC automatic design of $400,000 by the end of Year 5
5. Development of mathematical models and methods of $40,000 by the first half of Year 4
6. Advertising, promoting and marketing of $35,000 by the end of Year 5

Appendix