The Company

Handy Helper Inc.

To provide customers with cost effective, stable golf software that is reliable, simplistic and able to capitalize on new technologies to track statistical progress of golfer.

60 % Stakeholder = Jeff Roe, 40 % Stakeholder = Mike Peltzner.

Golf has exploded as a mainstream sport in the 21^st-century. Due to the rising popularity of this sport and obsession with statistics, handicaps and technology new opportunities for profit have emerged. Due to SMS: Short message system technology and the increasing technological trends of cell phones, personal data assistants (PDA), Internet and computers golf software programs have emerged and grown. Our product Handy Helper 2002 incorporates the synergies of technology, statistics, golf and profits to create a cost effective solution to address the untapped market of beginner to intermediate public golfers.

Our product is a golf software program that allows instantaneous updates via: cell phones, PDAs, Internet, and computers of personal golf statistical data.

The market is based primary focused in Canada of the province of Alberta with surrounding cities and towns affiliated in golf market.

Sales and Profit summary

The company will operate at loss for the first two years and show a small profit in the third. The overall financial outlook for this company is unprofitable because of high start-up costs and low profit margins for the first two years.

Funding Requirement

Initial funding of operation will consist of $47,920.46.

Investment Proposal

Mike will invest $12,000 of personal savings, and Jeff will invest $15,000 of personal savings. The remainder will come from love money from Jeff and Mike’s families, and if needed a loan from the bank.

After initial primary and secondary research with respect to this venture looked extremely promising. After extensive financial, marketing, technical and human resource analysis this venture is unfortunately unfeasible and unprofitable.

Currently, golfers can determine their handicap scores via a handicap calculator located at the golf course. The handicap calculator is designed to allow golfers of all levels (beginner to advanced) to compete against each other on an equitable basis. This is an allowance in strokes given to each player based on their past and current performances. The problem with accessing handicap scores is once the handicap score has been calculated, a golf professional must certify the score with his/her initials, ensuring that the playing field is even between players. However, this becomes an inconvenience to golfers, as they have to locate the golf professional to certify the handicap score.

Handicap scores are also exclusive to golf clubs and associations. That is, the handicap calculator and handicap scores are available to those that are members of a certain club or association. For golfers that frequently travel between golf courses, handicap scores are not readily transferable because each golf course has a different database of handicap scores. Also the certification of handicap scores is not common amongst all golf courses.

In order to alleviate the above inconveniences of dealing with handicap software and travelling between various golf courses without a handicap score, some golfers have invested in personal handicap software. Personal handicap software is available via the Internet and is targeted to public golfers who enjoy golfing in various cities and at various golf courses.

According to the survey conducted at the 2002 Golf Show, most personal handicap software has to be portable, accessible, easy to use, efficient and cost effective in order for customers to invest in it (See Appendix A). Golfers from the 2002 Golf Show also specified that software companies such as Golfwits, Handegolf, Intelligolf, and Magadraw have adhered to qualities that they look for in golf software. Using cell phones, PDA’s (Personal Data Assistants), and personal computers these companies make handicap scores portable and accessible where ever a player may go. Most individuals who use cell phones; PDA’s or personal computers will find it relatively easy to calculate their handicap scores as they are calculated by entering golf scores, hole by hole, into the device of your choice. Handicap scores are provided instantaneously whether a golfer may want to access them immediately on their cell or PDA, or view them at a later time on their personal computer. When compared to the cost of a yearly golf membership, the price of personal golf software is drastically cheaper. According to the Royal Canadian Golf Association (RGCA), a golf membership at a private golf club may range from $12,000 to $30, 000 depending on the course and a golf membership at a public golf club from $1000 to $1500 (http://www.rcga.org/). The average selling price of basic handicap software featured by Golfwits, Handegolf, Intelligolf and Magadraw is $54.26 (See Appendix B).

According to the survey conducted at the 2002 Golf Show and secondary research, customers were generally content with the products that these companies offered. Michael W. Smith of the Review Centre stated, "This is a well done, well written program. If you like golf, and want more in-depth analysis of your game, you will love this product."

HandyHelper 2002 is a software application for cell phones, PDA’s and the Internet. HandyHelper will instantly calculate a golfers handicap score after all rounds of golf are completed. The handicap information can then be used to analyze various strategies, which will best help improve play on each golf course. Information can be saved for up to four golfers per round and can be used for competitive use or for recreation. With HandyHelper 2002, a golfer will be able to view, save, print, and e-mail handicap scores.

As software development is such a volatile business, HandyHelper Inc. will have to update its software applications on a yearly basis. To keep existing clientele, HandyHelper Inc. will provide customers from the first year with upgrades to their packages. A standard that HandyHelper would like to incorporate into its company would be client care. Customers would be provided with technical support 24 hours per day via the Internet or a client care phone number. In addition to that, HandyHelper 2002 also adheres greatly to the quality of its product. An unlimited warranty and a quality product for a decent price give our product a competitive advantage over our competitors (See Appendix C). Finally, simplicity puts our product ahead of other software products on the market. According to 8/10 surveys conducted at the 2002 Golf Show, our customers would mostly likely buy our product if we kept statistical analysis to a minimum and easy to understand. Therefore, simplicity is another "dramatic difference" that we have with regards to our current competitors.

How will you reach the customers?

For the first three years of software production, HandyHelper Inc. will strictly focus on its program Handyhelper 2002. This product offers two different packages. The first package offers handicap software for a cell phone and a personal computer. The second package offers handicap software for a PDA and a personal computer. Both of these packages run at $50 each. All software from the company will also use systems that are applicable with Windows 95/98/Me/NT/W2K

Due to the growing trend of golf from the rich and powerful to a more mainstream activity there presents an interesting social trend. In addition with the meteoric rise of golf’s new superstar Tiger Woods golf has a new ambassador that is ushering the popularity of golf to new levels on a daily basis. The demographic shifts are allowing more people from middle class backgrounds to enter golf. The spread of public and private golf courses in Alberta continues to be a favourable demographic trend.

The obsession with statistics, golf and technology will further allow this venture to capitalize on the opportunities available and increase the probability of success in the golf software market

To ensure feasibility the core technology needs to be broken out for manufacturing or highly technical businesses as per questions listed below. In addition, primary and secondary research is completed where risk or opportunity is identified in stage two, especially in those areas where it could affect the viability of the venture such as government regulations.

• Sell – Design – Build

• Design – Build – Sell

• Design – Sell – Build

As a consumer based software product, the design build sell model must be used where the program is written then put onto compact disks and sold to the general public.

Our dependence on resources is very limited because our product is largely intellectual material. Access to sufficient computer programming is reachable with campuses in Mount Royal, University of Calgary and Devry all producing skilled programmers. Only the compact disks and product packaging would be required and both are in large supply in Calgary.

Would you be able to gain access to them?

In Calgary, there are both retail and industrial suppliers of blank compact disks and hard cardboard packaging. Programmers are in abundance in this city and would readily be available. Student labor would also be acceptable and easily accessed.

Yes, the programming could be contracted out with price agreements although we only have a one-time need to begin and every three years. Price ceilings would not affect us, as all contracts would need to only be a matter of months and inflation affects wages on a yearly basis. For our tangible supply needs, a contract would also be somewhat ineffective as we would be able to produce and warehouse the entire supply in one shipment from the supplier.

There is an enormous price difference when larger quantities are purchased. A single compact disk is priced at $2.80, where a hundred is sold for 80.24, and 1000 for $716.90. For our first stamp we would require six hundred disks requiring us to buy by the hundred with the discount range producing savings of $1198.56.

Labor- the average starting cost for a junior programmer with Legreic and Co. Ltd. is $16.00/hour. They quoted us an estimate of $2304.00 for a program such as the HandyHelper 2002.

What type of overtime labor needs would there be?

As our programming would be contracted out, there would be no overtime cost to us.

How will you manage and control costs?

We are contracting out the majority of our costs allowing us the benefit of know the pre-determined expenses in advance making the amount of unexpected costs minimal.

Quality Control:

What inspection systems would be needed?

The program must run glitch and bug free on a variety of different systems and devices. The program must be tested with all operating systems and with the drivers that transfers information to and from the mobile devices. When new systems come out we will have an upload site for patches to make our product compatible with the new OS.

What will you realistically be able to promise your customers?

The actual tangible quality will be perfect as digital stamping is %100 quality assured. The promise to the customer will be "buy our product and you will be able to use our product without hitch for the next three years".

Is there benchmarking in your industry?

Production Scheduling and Flow

What workflow systems would you incorporate to calculate schedules and meet rising sales levels?

Human Resource Feasibility

Golf manufacturing management will not require technical expertise. The development of the software will be outsourced to a computer software developer. In addition this developer will be responsible for upgrades and trouble shooting of software. With regards to our PC computers, Dell will service our firm and management will learn how to use these systems.

After conducting several inquires with different computer companies the most cost effective and reliable developer is Compusmart. The costs will be $20,000(1) for software development with a development time frame of one week. In addition, the amount of time from development to marketing of the product will be approximately 4 months. Compusmart has a strong track record of innovative software development at reasonable costs.

Producing on time will not be a problem due to the nature of this software. Software will all be outsourced with respect to quality and time will be ensured by Compusmart. The architecture of this programming is based on SMS: short message system will be integrated to be used on cell phones, personal data assistants (PDA), Internet, desktops and laptops. The technology will have to be kept current due to the continual changing trends of this industry. At minimum software upgrades will have to be made on a yearly basis. Additional upgrades can be accounted for depending on the competition or new developments in technology that we can capitalize on. Upgrades will be free for download over the net or available on CD.

Inventory control will be limited due to the nature of software. The primary delivery method will be the Internet via downloadable software. In addition we will print CD software packages that are immediately executable once installed. Therefore our inventories will be low and our method of potential penetration will be global. With regards to inventory control techniques of controlling in process and out finished goods will be outsourced to Compusmart for software. There are no specific techniques at this time.

The managing partner will retain 60% equity in the firm and have final decision-making process. The secondary manager will have 40% control of corporation. The initial team will be investors or silent investors who contribute a set amount of personal funds and love money to the venture. Their ability to make decisions will be limited and they will be paid according to future returns on investments, options and dividends. The ownership structure of the firm is based on a partnership but the firm is incorporated for limited liability and due to the nature of software industry.

The manpower hours required for this venture include substantial loss of personal and professional time. Hours will be expected of 40-80 hours minimum a week for the two owners. They will perform all functions of marketing, sales, finance, accounting, technical and h.r. Only software development and upgrades will be outsourced to Compusmart. The owners will be needed immediately and will even be on call during first year operations.

The costs associated with human resources will result in paying the two primary owners a subsistent wage to live on for the first three years. This will include just enough to survive until the venture is profitable. This will be taken out as business expense thru the firm. Costs work out to be $1920/month (2) between two owners.

1) Cares, Christian: Compusmart: Director of Operations.<www.compusmart.com> (April/6/02)

2) "Salaries for small business": Monster <www.workopolis.com> (april/7/02)

What are the options for developing technology?

Hire university students in computer science to develop program or

Hire Compusmart Software Developing firm to make the program.

Final solution decided to go ahead with Compusmart because of the experience and the reliability needed to develop and maintain the golf software.

What resources are required for development and are they available to you?

Knowledge of golf industry: handicap, statistics and who would want to use software system.

Primary & secondary research would indicate the demand for product.

What are the Laws and Regulations relating to the business?

o Incorporate business for software industry

o Must be careful of patents and trademarks that exist from current software.

Personal certifications?

After research we discovered no certificates required.

Has the research discovered any moral or ethical issues that you are uncomfortable with?

After research we discovered no moral conflict.

What technical changes are changing or emerging that may affect the business?

Rapidly changing technology of cell phones, PDA (personal data assistants), and the internet

SMS: short message service

What technical and management experience is required?

o Developer has to be experienced making stable & compatible software.

o Golf experience is required to market product effectively

o

What are the roles of the owners?

o The owners perform all functions of firm of accounting, finance, operations, marketing & sales.

What is the ownership structure?

o Incorporated firm with two major shareholders.

o Shareholder 60 % and 40 %

What are the manpower requirements?

o Two person operation will require minimum of 40 to 80 hours work/week

What will they cost?

o Salary based on monthly subsistent living wages. No extra salary will be given until break even is achieved.

Do you or can you acquire knowledge of production process, machines, manpower, and space required for this product/service?

Do you have or can you acquire skills in managing production to produce on time within costs and quality ensured?

Inventory control

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http://www.discovercalgary.ca/golf/

Calgary best golf courses

http://www.stewartcreekgolf.com/

http://www.northlands.com/golfshow02/index.html

golf show in Calgary

Name (optional): Kevin Schnell

What is your affiliation with the sport of golf? General Manager – Lacombe Golf and

Country Club

Specific needs and uses:

What need do you have for the use of universal handicapping software?

We kind of already have one but it needs to be improved, the network does not work well, DOS is quite old so it needs to be updated.

Definitely would like to have access to all golfers handicaps, it would cut down on political aspect of tournament play, for example sandbagging and people complaining and accusing people of sandbagging.

Is there a particular need of yours that the current software programs are not meeting?

Having some sort of verification that the handicap on a persons card is really that person, it is very easy to manipulate the system.

The network capabilities of current AGA Golfnet is limited, it needs to be changed or upgraded.

Selling price, service, and support:

What do you believe would be an acceptable selling price for this software per year?

Charge $25 per year to be entered in the computer

Thinks they pay about $12-$13000 dollars for the Fairway program and AGA carding.

What level of service and support would you need?

Someone would need to come in and setup the program on our system, and to train our staff how to use it.

Tech support in case of problems that staff cannot handle

Would pay extra for someone to come in once per year to enter new information.

Are there any other terms that you would expect?

Some sort of Warrantee or Guantee.

Certain degree of service provision, for example if the system was down, help would come in a fairly reasonable amount of time.

A bulletin board may be useful in relaying information that golf courses need for the program.

Current purchasing practices:

What is the current system that you use?

Where do you currently but this type of product from, a retailer, wholesaler, direct mail, broker, etc?

Not sure where the Jencess software came from but pay AGA every year for card service and computer capabilities.

Names of Competitive firms:

1) What are some firms that are currently competing against each other in this market?

Jencess

Enfocom International

Northern System Inc

Name of customer: Garret Jenkinson: CPGA Professional 22 years in golf swingdoc@home.com 561-0344

Nature and of customer business or role?

Glencoe Golf & Country Club:

What advantages/benefits do they see?

Feasibility of idea is god and there would be market for it.

What disadvantages do they see?

Could have difficulty getting past RCGA & AGA for regulation purposes

What questions do they raise?

Need card certified by professional to get handicap.

Specific needs and uses?

What needs and uses to they have for product such as yours?

Big need golfers love stats like baseball players?

What needs are the current products not meeting?

24/7 PDA updates

Name of customer: Erica Atlee

Nature and of customer business or role?

USA Montana Northern Pines Golf Club & Eagle Bend Golf Club. 8 years golf, intermediate level www.golfmt.com

What questions do they raise?

Costs?

Specific needs and uses?

What needs and uses to they have for product such as yours?

Good for public golfers not for private

What needs are the current products not meeting?

Public golfers may need this product

What do they believe is acceptable selling price?

Idea $40- $50 sounds reasonable.

What level of service & support would they expect?

Upgrade 1 time a year

What other terms would they expect?

Software bug free

Current purchasing practices?

Where do potential customers currently buy this type of product (retailer, wholesaler, direct mail, broker, ect.)?

Store

What competing firms products & services are they currently using?

Not sure.

Yes to all questions no labtop

Current purchasing practices?

Where do potential customers currently buy this type of product (retailer, wholesaler, direct mail, broker, ect.)?

Golf shop, computer store

What competing firms products & services are they currently using?

Private golf clubs for members have service

Yes to all questions

Appendixes

Appendix A-3

Name of customer: Bill Smith

Volunteer Golf Pro in training 10 years intermediate

What questions do they raise?

N/a

Specific needs and uses?

What needs and uses to they have for product such as yours?

Statistics update would also be wanted for beginners, perhaps intermediate and advanced

What needs are the current products not meeting?

Market not filed for public, private filled

What level of service & support would they expect?

Solid reliable service

What other terms would they expect?

24/7 support

Current purchasing practices?

Where do potential customers currently buy this type of product (retailer, wholesaler, direct mail, broker, ect.)?

Internet or direct sales

Name of customer: Frank Crean creanf@cadvision.com

Nature and of customer business or role?

Alberta Golf Association: AGA, Director Golfer advanced, retired, over 14 years.

Customer reaction to your product or service?

What advantages/benefits do they see?

Need for statistics is as insatiable as baseball but programs not present at this time for public

What disadvantages do they see?

What questions do they raise?

Need card certified by professional to get handicap.

Specific needs and uses?

What needs and uses to they have for product such as yours?

Big need golfers love stats like baseball players

What needs are the current products not meeting?

24/7 PDA updates

Selling price, services & support.

What do they believe is acceptable selling price?

Estimated cost range $20-40 seasonally.

What level of service & support would they expect?

24/7

What other terms would they expect?

Reliable software

This program must be idiot proof and simple to use to be marketable

Current purchasing practices?

Where do potential customers currently buy this type of product (retailer, wholesaler, direct mail, broker, ect.)?

AGA

Names of competitive firms?

What competing firms products & services are they currently using?

Current system used is Floating point and Jensese, RCGA currently a monopoly for determining handicap score.

Do you own cell phone, PDA, laptop, desktop, and use Internet?

Yes to all questions

Appendixes

Appendix A-5

Golf software survey

Name of customer: Jordan Smith

Nature and of customer business or role?

Regular golfer, less than 1-year golfing beginner.

Customer reaction to your product or service?

What advantages/benefits do they see?

Most golfers cell sounds like good idea, have to be reasonably priced and idiot-proof phone, some are getting PDA: Personal data assistant

What disadvantages do they see?

What questions do they raise?

N/a

Specific needs and uses?

What needs and uses to they have for product such as yours?

Statistics update would also be wanted for beginners, perhaps intermediate and advanced

What needs are the current products not meeting?

Market not filed for public, private filled

Selling price, services & support.

What do they believe is acceptable selling price?

Depends on the price $40/season

What level of service & support would they expect?

Solid reliable service

What other terms would they expect?

24/7 support

Current purchasing practices?

Where do potential customers currently buy this type of product (retailer, wholesaler, direct mail, broker, ect.)?

Internet or direct sales

Names of competitive firms?

What competing firms products & services are they currently using?

Private golf course stats

Do you own cell phone, PDA, laptop, desktop, and use Internet?

Yes to all questions, no desktop