.0 Executive Summary
ABConveyancing- Conveyancing as easy as ABC...
ABConveyancing presents a new software product that is set to revolutionize the way in which conveyancing is done in Queensland. ABConveyancer software is a unique piece of office software soon to be a must have for all solicitors and law firms across Queensland and eventually Australia. By making conveyancing, faster, easier and more reliable then ever before ABConveyancer will become an immediate success.
Conveyancing has been a large part of solicitors for a long time. With the housing boom of recent times the need for conveyancing to be done has increase with more and more houses, land and units being sold. With conveyancing taking up a large amount of solicitor's time, they are eager for an easier and ultimately faster way to complete their conveyancing needs. The initial need for the software will be large and the ongoing fees and charges will ensure that the business is always bringing in money. Private Law firms over the past decade have also increased meaning that there is a large and growing market to sell too.
Currently there is no competition or similar products in the market. By entering this product into the market it will immediately be a unique piece of software taking a large amount of the target market. This will make it difficult for similar products to then be released later into the market. By maintaining accurate information through various updates and upgrades, ABConveyancer will remain current. This will mean it will not become obsolete and new products will find it hard to find a market as the most used and accepted conveyancing product would be ABConveyancer.
2.0 The Business & Industry Analysis
2.1 Mission Statement
"ABConveyancing, it's as easy as A B C..."
Our mission is to help the world by contributing tools to make life easier for all that live in it.
ABConveyancing's values are:
To give excellent support and service to all our customers.
Provide products of excellent quality.
Honesty in all aspects of the business.
A willingness to create the best software we can.
2.2 The Company
ABConveyancing will originally start off small. It will employ a moderate number of employees ranging from computer programmers, receptionists, secretaries, sales executives and customer service employees. The business will then expand as necessary employing and hiring more people as the business grows. By starting small the business will have a lower overhead set up cost, this would involve lower risks when it came to financing the business.
ABConveyancing will be legally set up as a private company. This would make it a separate legal entity under corporation law. Because the company will be a separate legal entity, the owners of the business will not be personally liable for the business' debts and obligations as companies have limited liability. This means that if the business were to be sued or go bankrupt, then the business owners would be protected. Although forming a company is the most expensive and complex way to set up a new business the benefits of the limited liability outweigh the costs.
The business will be set up using a formal pattern. The formal pattern of set up will be used as it is the most efficient way to run the business. There will be separate business departments each responsible for certain tasks involved in producing and selling the computer software. These departments would then be controlled by a management sector to make sure the departments are working as a team together. The business will have a flat structure as this is most effective for the business to start off. (See Appendix 1)
2.3 Industry Characteristics
ABConveyancing will join the ever growing and competitive Information Technology Software industry. It would be joining similar office software such as Microsoft Office, Quick Books, MYOB accounting software and EPAY wage systems. Office software has grown in importance and quantity over the past decade. Office software is now vital in order to run a successful business smoothly.
As well as joining the Information Technology Software industry, ABConveyancing will also join the Conveyancing industry. Conveyancing is a direct result of the housing market. When houses or land is sold or bought, conveyancing must take place. According to the Office of Economic and Statistical Research almost 1000 vacant land blocks, houses and units were sold during 1998 in Hervey Bay alone (See Appendix 2). That would mean there would be a need for almost three conveyancing services per day in Hervey Bay. Furthermore, since 1998, the real estate industry has boomed and house, land and unit sales have increased even further. This would mean that the market for conveyancing and conveyancing software would be increased greatly.
2.4 Trends
The market for ABConveyancer is large and growing rapidly. The current trends in the market make it an ideal time for selling or buying property and when this happens conveyancing must be done.
There is a current need for Conveyancing software and this makes it a potentially high-growth market. This would mean that there is potential for competitors to enter the market. By entering the market early we will get in ahead of our competitors and establish a firm base of users before the anticipated entry of competitors begins. This will help us maintain a competitive advantage over rival companies.
3.0 Marketing
3.1 The Product
ABConveyancer is a software product that gives solicitors a tool that allows them to enter certain variables in order to get a conveyancing price quickly and easily. ABConveyancer would speed up the usually time consuming task of conveyancing making it a very special and valuable tool for solicitors.
The software would have a simple interface which would mean there would be a minimum amount of training required to use it. It would be fast in order to maximise time saved, which would be valuable to time-pressed solicitors. Upgrades would be ...
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3.0 Marketing
3.1 The Product
ABConveyancer is a software product that gives solicitors a tool that allows them to enter certain variables in order to get a conveyancing price quickly and easily. ABConveyancer would speed up the usually time consuming task of conveyancing making it a very special and valuable tool for solicitors.
The software would have a simple interface which would mean there would be a minimum amount of training required to use it. It would be fast in order to maximise time saved, which would be valuable to time-pressed solicitors. Upgrades would be automatically installed and updated weekly in order to keep the software current and accurate as well as protecting against viruses and potential security threats. This would mean that solicitors would not have to worry about laws changing as the software would automatically account for any changes.
There are no other software products like ABConveyancer on the market. It would be a one of a kind product which would revolututionise conveyancing practices by saving time, effort and money. Other like minded products such as MYOB and Quick Books have proven invaluable to small businesses and accounting practices for the past few years.
3.2 Location
The business will be located in Fraser Street, Torquay. The premises are large enough to comfortably fit the business. It has enough room for a main office, a small reception, a staff room, and computer cubicles to work from. There is also enough room for a storage room to keep the software product it is sent over from production in China. The location of the business is not critical as most business will come through mail, phone and internet orders, not through customers walking into the shop.
The product will be distributed to customers by mail. The customer will either ring up, mail or use the internet to send in their order and the product will then be distributed using a secure mail service. This would mean that the product would arrive safely at a low cost. This method of selling would also mean there would be no need for staff to be tied up helping customers that come into the shop looking to order.
The software would be created in the business before being sent to China where it would be mass produced and packaged before being sent back to the business for storage and distribution. China was chosen as the place to produce the product as the overhead costs are very cheap and make it a lot more profitable for the business to be made overseas then here in Australia.
All of the business decisions and operations regarding the running of the business would be done at this location. By having all business dealings and decisions made at one location things will be done more quickly and there would be no need to liaise with other locations regarding major business decisions.
3.3 Promotion
The business's main form of promotion will be in legal magazines and gazettes. This is because the target audience is solicitors and law firms and these materials are read by solicitors. This means that potential customers are being directly targeted by the advertisement campaign. As well as an advertisement appearing in the magazine there is a possibility that an interest story could be written on the product as it is new, unique and would revolutionise conveyancing. This would benefit the product as it would receive extra exposure and gain some creditability in the conveyancing industry.
Fliers and order forms would also be distributed to law firms and solicitor offices so that those who do not read or order these magazines would still be able to be informed of the new conveyancing software available for them. This would be a benefit to ABConveyancing as all potential customers would be exposed to the product for a minimal cost.
The business would have to hire an advertising firm to help with the promotion of the product. They would be able to create the most effective newspaper and pamphlet advertisements as they have professional expertise in these matters. It would cost money to hire the advertising firm, however, it would be well worth it for the amount of exposure and cover the product would receive.
Advertising would start one month before the product is complete and ready to be shipped to Asia for mass production. This would give the business enough time to advertise and promote the product and then let it be known how many units of products need to be produced. This will be beneficial as the advertising has time to reach its target audience.
3.4 Price
The initial cost of the software would be $799. This cost would cover the initial software package, which would include the software itself, all required manuals, packaging and postal costs. After the initial purchase, the software owner could then have the option of purchasing additional software licenses for separate computers for an extra $499 for 2 extra licenses. The owner would then have to pay a monthly fee of $40. This price would cover factors such as upgrades and security updates, as well as pay for a 24 hour a day customer assistance helpline.
The business will use a combination of cost-orientated and consumer-orientated pricing approaches.
The firm will set an initial price based on what the consumer is willing to pay. The initial software product I the only product of its type and so people will be willing to pay a high price for it. The product would save large amounts of time and effort which in turn would save money. This would mean consumers would be willing to pay a high price, as in the long term would save a substantial amount of money.
The price per moth fee would be cost-orientated. The price of upgrades and updates would be taken into account, as well as the customer helpline. A small mark up would be put in place on top of these costs to ensure that a profit is made.
The price of the initial software item itself is very unlikely to change in price. This is because it will have already made a name on the market and consumers would want to use this product as it would be the most popular. The price per month fee however could go up or down depending on certain cost factors. For example, if the price of phone rental and call costs went up, then the cost of the price per month fee could also increase.
3.5 Competitive Analysis
ABConveyancing is a revolutionary piece of software. The product is new, user friendly and will save enormous amounts of time and money.
Currently, the business and product has no competitors. This is a major advantage as consumers will have no other products to choose from, giving the business 100% of the market share (See Appendix 2). This means that when the software is released onto the market it will be successful as customers flock to buy the product. Once they have bought the product and become use to it, other similar products being used by most law firms and solicitors.
However, if rival business does try and break through into this market, then it could result in a price and advertising war. This would cause business profits to drop and could cause a large problem for the business as profit margins become narrower due to lower income.
3.6 Opportunities
ABConveyancing will have many opportunities for growth and expansion in the future. At the moment the country is in a real estate boom with many houses and blocks of land being purchased and sold. Conveyancing is needed every time this happens and therefore the need for a quick and easy conveyancing toll will increase greatly. Solicitors and Law Firms will have a large amount of conveyancing to do and so would greatly appreciate a piece of software that increases the productivity of their business.
Real Estate booms like the one the country currently is in come in cycles. This would mean that if there is a boom every five to seven years then this would mean additional peak periods for software sales as conveyancing increases.
In states outside of Queensland you do not have to be a solicitor in order to do conveyancing. This could mean that new software could be developed and sold to real estate agencies that could then do their own conveyancing. This would be a popular option as real estate deals would be completed faster and they would receive their commission earlier.
The software is a low risk product as it would be a relatively cheap to produce and would only go into mass production once definite numbers of purchases were decided.
3.7 Threats
Threats to the business and its product are few but vary over a variety of issues. The threats can be split into two groups; Threats to the business and threats to the product itself.
Threats to the business are threats that can potentially prevent the attainment of organisational goals. These would include such things as competitors bringing out a similar product, economic downturns, and interest rises leading to a drop in housing investment. These could all lead to less conveyancing being required.
These are external threat that the business would have no control over and would have to work around as they came about.
Threats to the product could include things such as compatibility problems on certain computers. Viruses could also cause the programs to crash or become ineffective and hackers hacking into the program and gaining access to private information. Another threat could be people illegally copying and selling the software.
These are threats that can be countered and controlled by the business. To counter the problem of computer incompatibility it would be tested on many different computers and different operating systems including Windows, Linux and Macintosh.
To counter the problems of viruses, hackers and pirate's, new updates would constantly be downloaded whenever their were potential security holes or breaches that would be closed before they could be exploited.
3.8 Marketing Strategies
ABConveyencing will enter the market straight away as a stand alone product. It would not be available or distributed through retail stores but through direct mail order. Those wishing to purchase the product would have to either order the product by phone, internet or in person at the store's main office.
The product would be directly aimed at solicitors and law firms in Queensland when it first goes into the market. This is because these are the target group that need the product and who the business will make most of their money from. To target this market the business will use advertising in legal magazines, gazettes and word of mouth. Legal magazines and gazettes would be ideal to advertise in as these are read by the legal community and so a large amount of the target audience would be exposed to the product.
The product's price would play a large part in the marketing strategy. The price would start high and stay high as it would be the only product of its type. However, if a similar product was released, the product price would drop in order to stay competitive and try and drive the opposition out of the market.
4.0 Operations
4.1 The Process
The initial start-up phase of the business will use an intermittent process. This is where the transformation of raw inputs into products is conducted on a unit of product basis with an apparent start and completion of production.
The product will start with the professional section finding all relevant and needed information for the software. That information is then given to the computer technician team who design a software layout and enter the relevant programming and information to make the software useable. The prototype software is then sent overseas to a manufacturing plant that mass produces the software onto compact discs and packages it into a box with all relevant instruction manuals and paperwork. The finished packages are then sent back to the business for distribution. (See Appendix 3).
This initial start-up will be costly. The labour involved in the development and researching of the product will be the most expensive part of the business. To employ the required employees over a six month development period will cost approximately (I don't have my excel sheets at home, so I will insert the number later) (See Appendix 4). This cost would include the wages of the business employees, the business equipment costs, the renting of the premises and the cost of patenting the product.
Once the product has been developed the process and production costs will drop substantially. The costs would drop to approximately (Again missing numbers) a year (See Appendix 5). This would include the above costs, as well as the shipping and production costs of the software.
4.2 Quality Control
It is imperative that ABConveyancer software is of the highest quality possible. The software will have to be correct and accurate and meet all current conveyancing laws in Queensland, and eventually Australia.
To ensure that the company's software is of the highest quality possible a number of processes and procedures would be put in place:
The first test of quality will be whether the software is able to operate on all computers and operating systems. This is because computer and operating systems in the business world are so varied, and for the software to be used by all it must work on all computers.
To ensure that the software can be used on all computers and operating systems three steps would be taken. The first will be that the software will be specially designed to be as versatile as possible, making sure that it can work on various operating systems such as Windows and Linux. The second step will be to design the software so that it may be loaded onto different computers such as IBM's and Macintosh's.
With the software now designed and programmed it would then be tested on various systems ensuring it works. This would ensure that the software works effectively on all computers and operating systems.
The second test of quality will be whether the information contained in the software is accurate and remains relevant and current. This is because inaccurate and irrelevant information would be useless in conveyancing rendering the software obsolete and unusable. To counter this, the business will be constantly researching and developing updates and upgrades for the software. These updates and upgrades would then be able to be downloaded by clients in order to keep their software relevant and up to date.
The third test of quality would be the business's customer service and technical help. This area of the business will be imperative in keeping clients signed onto the software, as well as gaining a good name as a friendly, helping business.
In order to ensure customer service is as efficient and friendly as possible staff will be trained to be courteous and helpful. They will be taught the knowledge required to be helpful and to solve any problems that may arise with the software or client problems. This will ensure that customer service and help is of highest quality as possible.
4.3 Production Facilities
The process cycle time for ABConveyancing software can be split into two distinct stages. The first stage will be the initial development period of the software. This will take approximately six months of research and development before the product can thing roll off a production line.
Once this first initial stage of production is over the process cycle time for the product will reduce dramatically. From the time it takes to be produced, to shipping and delivery and se tup the whole process could be completed within two weeks.
In order to meet a forecasted heavy demand several facilities have been put in place. The first is that there will be an initial large shipment of products to the business warehouse just after advertising and promotion starts. This means that when the initial demand comes stock will be ready for distribution quickly to fulfil orders quickly, rather than having to wait for two weeks for stock to be ordered and sent from overseas. Orders would also then be taken and any extra orders could be sent over from overseas. Although these clients would have to wait two weeks, it would be minimal as some software takes up to a month to be produced, delivered and installed.
For the first six months of the software being distributed, the business will be at its busiest as this will be the period where most technical updates and upgrades will have to take place as bugs are found and ironed out. This will also be the period of time when most technical support will be required as firms set up the software and become accustomed to it. In order to deal with such a large amount of work, extra staff will be employed during this time to cope with demand. If demand remains high then these staff will continued to be employed. Once demand drops to lower levels, then staff will be retrenched in order to save money.
4.4 Distribution
ABCconveyancer software will be distributed from the business' premises. The software will be delivered to the business from overseas where it is then distributed by mail or pickup from the business. Consumers will order the product which will then be distributed to them over a maximum two week period.
Production of the product will be dependent on orders and an estimated future demand. The product will be made in an overseas factory, which means that if something were to slow or stop that factory producing products then the business' supply would be directly affected causing problems.
In order to keep an accurate inventory of product all incoming stock will be accounted for and then entered into a database. When sales are made the database will be uploaded with the appropriate details. Stock will be counted weekly in order to make sure that the data and stock is in order and that no theft or loss of stock is taking place.
5.0 Organisational and Human Resources Plan
5.1 Key Management and Staffing Strategy
ABConveyancing will employ a variety of employees, each with specific skills and qualifications to work in specialised sections of the business. These sections will work together as a team in order to complete the business product successfully.
The sections will be split into main categories, each with a specific role in the production of the product. These categories would include:
Management: Management would involve the running and organisation of the business and the product. People involved in management would liaise with each of the sections to make sure everything is running smoothly and efficiently. They would be responsible for the overall production of the product by making sure that it is completed properly and accurately.
As well as organising the product, those involved in management would also look after the financial needs of the business. This would involve business debts, loan repayments, and wages.
Those in the management section would require intense business management experience or a recognised business qualification and work experience.
Professionals: The professional section would involve the gathering and organisation of conveyancing information in order to make sure the software is accurate. It would involve a small team involving two solicitors, an accountant and a team of researchers. This team would be responsible for researching and finding all relevant information needed to make an accurate conveyancing calculation.
Those in the Professional section would require specific degrees and skills. The solicitors and accountant, for example, would require university degrees.
Computer Technicians: The computer technician section will be responsible for the actual compilation of the software and the data on the disk. This section will comprise of software and computer technicians who will use the information gathered from the professional section to make the software. They will then test the software and be constantly updating and upgrading the software to protect against all potential software flaws.
Those in the Computer Technician section would require extensive computer software experience and a degree in software engineering.
Support Staff: Support staff would be required to help in the running of all aspects of the business. Support staff would include people such as customer service staff, software support staff, secretaries and general office staff. These people would do tasks such as answering phones, helping clients, and general office management.
Those involved in the support section would not require any recognised qualifications other than a willingness to work hard and learn.
5.2 Advisors
ABConveyancing will require a number of professional advisors in order to set up and run the company successfully. The business will already employ its own accountant and solicitor. However, these people will be solely responsible for the legal and accounting aspects of the software and would not be responsible for the actual business' legal and financial matters. For these aspects of the business the company would use the services of a solicitor and an accountant from a separate firm. The reason to have the business' legal and accounting matters cared for externally is so that the business' solicitors and accountant can keep focused on their task of working on the software and its information.
The company would also use the services of a marketing company. The business would pay this company to work out the best and most effective marketing and advertising strategies. Although costly, by using this professional advice it will save the business time and be the most effective way of getting the product known.
6.0 Financial Plan
6.1 Financial Forecasts and Analysis
6.2 Sources of Funds
6.3 Risk Analysis
