..........

. . . . . . . . . .

SoftwareForTheMasses

Business Plan 2005

A plan for a company to develop, distribute and support software products.

- 1 -

SoftwareForTheMasses5946 E. Fairfield St.Mesa AZ 85205

..........

. . . . . . . . . .

Summary

Business Concept

SoftwareForTheMasses (SFTM) is envisioned to be a company that develops, distributes and supports software programs for various markets.

Current Situation

SoftwareForTheMasses’ first product, currently under development and discussed in more detail later, is a Microsoft Windows based program named WinStocks. The program retrieves stock and mutual fund price information from internet sources and presents the user with graphs derived from price and volume data. It provides the user with buy and sell signals, based upon proprietary optimization rules and parameters.

William Pellerin is the only individual “working” for the company and on the program at this time. His current plan is to register the name “SoftwareForTheMasses” with the Secretary of State for Arizona by the end of September 2005. Within two weeks after registering the name, he plans to open a checking account to handle the day-to-day operations of the Company.

William has built the web site http://members.cox.net/softwareforthemasses that describes the company. At this site, viewers can download a 30-day free trial version or purchase a copy of the WinStocks program. He has employed Kagi at www.kagi.com to handle the Visa or other credit cards transaction.

Investor funds would greatly improve the chances for the business to become established. William would like a $10,000 war chest of funds in the Company checking account. He is meeting with advisors on how to get investors interested in the company so that they might invest money in this promising Company. If after reading this Plan you are interested in investing, please contact Mr. Pellerin at the address shown on the cover page.

- 2 -

Vision

Vision Statement

Life is what you make it. Mr. William Pellerin, the founder of SoftwareForTheMasses, has begun his dream at “making it”. Being a salaried engineer for 25 year plus provides a good living, but the forty hour, 8 to 5 work week has become old for him!

Mr. Pellerin foresees SoftwareForTheMasses to begin as a small company, with its primary objective of selling a stock analysis program over the internet. Three to four people working on a part time basis is all that would be needed to bring the product to market. The internet provides a large customer base with little expense required to reach potential customers in the market. A product that fetches $50 and sells 10,000 copies over a few years results extra income any one would enjoy. Once the company has established a base, yearly upgrade cycles would potentially provide additional income.

After the company has established itself, SoftwareForTheMasses will offer expertise in software development and publishing for hire. It could expand into web page development, end-user specific software, or other opportunities that might arise. Inexpensive data analysis tools could be developed and marketed.

Mr. Pellerin does not envision the company becoming a drain on his personal life – He expects it to add to it. And, when he retires from his “day” job, he’ll have a side job that will be established – not to mention enjoyable to work at.

Milestones

September 2004 – Work begins on the WinStocks program.

June 2005 – WinStocks reaches a point where it is “good enough” to distribute.

July 2005 – The web site http://members.cox.net/softwareforthemasses is published. WinStocks can be downloaded or purchased from this site.

- 3 -

..........August 2005 – Kagi is employed to handle credit card transactions.

- 4 -

Market Analysis

The Overall Market

Mr. Pellerin believes the overall market for a low cost stock buy/sell recommendation program is ripe for exploitation. Nearly 50% of all U.S. households own stocks, either in their 401(k) plans or self-directed or commercial brokerage accounts1. The census division estimates that there will be 115,000,000 household by 2010. If SoftwareForTheMasses can capture one-tenth of one percent of this market, or about 50,000 copies, at $50 per copy, this would result in $2,500,000 income. Considering the start-up cost for the Company to be about $5,000, this represents a possible a 500:1 return.

Changes in the Market

Investors have grown more sophisticated with the availability of personal computers, access to the internet, and because of a need to avoid the losses they may have incurred during the 2000 to 2003 downturn in the stock market. The size of the market share will most likely grow in the future, as more people will have access to computers and the internet.

Market Segments

There are several market segments for a program such as WinStocks.

There is the individual single-end user. This is the user that can be reached via internet searches, mass mailing, in-store displays with on-shelf availability, and word-of-mouth advertising.

Investment Clubs are another market segment that can be targeted. It is assumed that most Investment Clubs likely purchase software to help them evaluate when to buy and sell stocks.

The program can be sold to investment companies. Mr. Pellerin is unfamiliar as to particulars of this market

1 http://www.commondreams.org/views/072600-101.htm- 5 -

..........segment, but he is confident that SoftwareForTheMasses can provide investment companies, especially small ones, with affordable, customizable stock buy/sell advisement programs.

Then there are the corporate, banking, and financial institutional firms that comprise another market segment.

Target Market & Customer

WinStocks will be targeted to the individual user, the investment club users, and small investment companies. WinStocks is not aimed to be used at corporate, banking or financial institutional firms.

Customer Characteristics

The individual single-end user most likely has the following characteristics: is middle aged (30 or over), has a good, stable income with sufficient disposable income to afford a $50 program, has a company sponsored or self employment retirement account, and has a concern that the buy-and-hold strategy doesn’t always work. He is computer knowledgeable and wants to use computers to help him manage his accounts.

Investment clubs probably purchase a stand-alone stock analysis program or subscribe to a service on the web. Either option probably runs into thousands of dollars a years – WinStocks is more cost-effective.

The small investment firm mostly likely does not have its own stock analysis program, but is probably leasing one. The small investment firm would probably purchase or lease a stock buy/sell advisement program if it was shown to work (free trial) and cost much lease than what they are presently using.

Nature of the Competition

The competition is established and expensive.

Changes in the Industry

Although the industry did change substantially since 1990, the pace of change in the industry has subsided – the market players are established now. What the industry needs is some new blood to make it more competitive.

- 6 -

Primary Competitors

There are existing products in the market place with which WinStocks would have to complete.

Intended for daytraders, Wizetrade 7.0 is a product by GlobalTech SOLUTIONS, INC. They advertise their product on television and radio, as well on their web site www.wizetrade.com. From their website, they state that Wizetrade offers the features shown in the table below. What WinStocks brings to the table is also shown.

Table 1 - Wizetrade v. WinStock Features

From the Wizetrade Website

WinStocks

Accommodates all trading styles and levels.

WinStocks does not accommodate day trading.

Conducts real-time stock trend analysis instantly.

WinStocks uses end-of-the-day quotes.

Easily loads selected stocks Same.

Quickly launches stock trading candidates for analysis.

The QuoteBoard ranks your selected candidates from strongest to weakest.

State of the art chart screens help you select entry/exit points.

Same.

Online tutorial. Help is local.

Outstanding customer service and training support.

Customer service and training support will not be a strong point of WinStocks until the company has grown.

Creates multiple lists with up to 15 stocks at once.

The QuoteBoard displays up to 50 stocks on a page.

Displays multiple trend analysis charts at one time…on one screen.

Not available.

Seamless direct-access trade capabilities

Not available.

Executes live real-time and simulation paper trades instantly.

Not available.

Trade manager tracks trade and account activity instantly.

Not available.

1,000 “unsolicited” satisfied user testimonial.

No “unsoliciated” testimonials at this time.

- 7 -

..........Table 2- Wizetrade v. WinStocks Price

Wizetrade WinStocks$2000

$50 Novice, $100 Expert, $500 Enterprise Edition

Opportunities

WinStocks is not (currently) a day-trading program – It is intended for the short term (20 day) to long term (200 day) trader, ideal for 401(k) plans. The market needs a good, inexpensive program for the common investor.

Threats & Risks

Someone else may notice the hole in the market that WinStocks is trying to fill – and there are millions of able programmers who might decide to enter the market. We have to get to market soon and establish ourselves!

- 8 -

Strategy

Key Competitive Capabilities

SoftwareForTheMasses has the following key competitive capabilities.

1. WinStocks is designed to be used daily to trigger buy and sell signals. It can do this automatically, without input from the user. Mr. Pellerin knows of no other program that automatically runs its analysis in “batch” mode at a preset time, and then presents the user with a buy/sell recommendation. This could be ½ hour before market close, so a user could rebalance his 401K portfolio at work before the market closes.

2. For people who are on the go, WinStocks can run at home, and at the preset time, email its buy/sell recommendations to your office or PDA.

3. The parameters of the buy/sell rules can be optimized by the user.

4. It has a low cost.

Key Competitive Weaknesses

SoftwareForTheMasses has several key competitive weaknesses.

1. It does not yet have name recognition. It has as its main (and currently only product) a program named WinStocks which has not been widely tested in the field.

2. The program must be installed on a machine; A user can not “log” onto a web account and run the program from anywhere in the world.

3. Customer support (besides registration and refunds) will be limited until the company grows.

- 9 -

..........

Strategy Plan & Implementation

The product is ready for initial market release, although improvements to it will be made on a weekly basis for the foreseeable future. A test market is needed. Mr. Pellerin intends to offer the program for free to fellow workers at his day job so that they may evaluate the program and provide him with criticisms, both good and bad, as well as suggestions for improvement.

What is the strategy to get the product to market? WinStocks must be ‘Google’-ized. When people search for stock trading programs, Google, Yahoo, and other search engines must return a link to WinStocks. Mr Pellerin’s brother, Matt Pellerin, of www.phoenixhomes.com has accomplished such a feat for his business, so Mr. Pellerin believes WinStocks can do the same! He will begin implementing search engine hit strategies after the name SoftwareForTheMasses is registered and the checking account is established. ‘Google’-izing WinStocks will most likely attract the individual and investment club user. To hit the small investment firm segment of the market, mailings, phone calls or personal visits may be pursued.

Products & Services

Product & Service Description

The launching product for the Company is WinStocks. It has been in development since September of 2004. The product presents stock price information (currently obtained from Yahoo) and displays it on a graph. Not to get too technical, but prices can be displayed in several different formats, such as points (open or close), a continuous line, candle sticks charts. Overlaid or included on the graph can be various analyses, such as price moving average and volume. The distinct selling features of the program are its buy and sell cues, and optimization methods.

- 10 -

At launch, there will be three versions of the WinStocks program: Novice, Expert and Enterprise. The Novice edition will have one portfolio with up to 10 stocks, ideal for the user with a 401(k) plan. The Expert edition will handle up to ten portfolios with up to 40 stocks per portfolio, for a total of 400 stocks. This allows the expert to have several accounts: 401K, IRA, (for himself, his wife) and other accounts for his children. The Enterprise edition will allow unlimited accounts, and is intended for small investment firms that have several clients. The three tiers tailor WinStocks to different segments of the market as discussed earlier.

Alerts can be set so that WinStocks run automatically at a preset time – say a half hour before market close. WinStocks will download the day’s action, run the buy/sell rule, and display the signals on the screen. The results can also be emailed to the user!s

It must be mentioned that WinStocks is not a day trading program (although in the future it could be modified to be so). WinStocks is intended to be an intermediate to long term trading aid, ideal for those in 401K, IRA, or other similar accounts.

Positioning of Product & Service

As the company name SoftwareForTheMasses implies, WinStocks is intended to be positioned for the low to mid end of the market: Priced at $50 for a slimmed down version, to a feature rich version, with up to 10 portfolios with 40 stocks each priced at $100, to the small firm version with unlimited accounts at $500.

Evaluation of Competing Products & Services

Since stocks trade daily, most, if not all products, get their data from the internet. There are two basic types of competing products that give buy & sell products: web-based products and locally installed products. There are numerous sites that provide free buy and sell signals for stocks, but none that allows a user you to adjust or optimize their buy & sell algorithms.

Web based program can be slow during peak use time or if the only connection is a dial-up service. WinStocks saves the data is downloads from the web, and builds history files which are stored on the users hard drive. This speeds up response time and makes the program look alive.

- 11 -

..........

Future Products & Services

The Company has several growth paths it can pursue.

The WinStocks program can be converted to run on the web. Users would keep the portfolios either locally on their own machines, or alternatively store them on the WinStocks server. They then could access their information anywhere in the world. Of course, this would be a subscription service, costing about $20 to $40 a month.

The WinStocks program can be modified to handle day trading, with instant real-time quotes. This product would be by subscription, say at a cost of $40 to $100 a month, depending upon various options.

The WinStocks program can be easily ported to other platforms, such as Apple Macintosh or Linux. This would increase the market size and could lead to additional sales.

A monthly subscription newsletter, say at a $15 a month rate, could be written, that gives a reader additional insights on how to use the program and adjust it to the current market conditions. If used properly, optimization models adjusted current market conditions can increase the return of a portfolio.

Mr. Pellerin has several ideas for other software products and services, but he does not mention them here, as this is a public document, and he wishes to keep these ideas private.

- 12 -

Marketing and Sales

Marketing Strategy

The marketing strategy to be used by the Company is to get potentials customer to install the program on their computer, and have the users see for themselves how the program can help increase their returns in the stock, ETF, or mutual fund market. Users, once satisfied that the program is beneficial to them, will purchase the product.

There are several strategies that will be employed to market the product:

1) Web Site – A web site will be developed that will allow the user to download the product, so it can installed on his machine.

2) Of course, search engines will have to be seeded to return our product near or at the “top of the list”.

Sales Tactics

There are three editions of WinStocks available to the customer: Novice, Expert, and Enterprise. The customer needs to download only a single copy of the program. The customer will decide at installation time which version he is interested in.

The customer will be able to use the full featured program during a free 30-day trial period. Once the trial period is over, the program will cease to operate normally, and will display information on how to purchase the product. Online purchase of the program is available.

Once the customer’s funds clear, a registration key is sent to the customer, where he enters the key and unlocks the program for use. The registration key is utilized to help reduce software piracy, a concern to anyone that markets software.

A third party service (such as InstallShield) will be utilized to process the sales transaction.

- 13 -

..........

Advertizing

To test the market, the program may be advertised on the local financial radio station: KFNN.

Promotions & Incentives

To help persuade a potential customer to purchase a product, a 30 day free trial period or 30 day money back guarantee will be available to the customer.

Publicity

As mentioned above, KFNN is a local financial radio station servicing the Phoenix area. There is at least one radio show that can be approached to present the WinStocks product to their audience. The Fabian Financial Show airs on Tuesday afternoon from 4 to 5pm, and presents the same type of buy & sell philosophy used by the WinStocks program.

Trade Shows

Until the product is widely known, it is not anticipated that the Company will participate in any trade show.

- 14 -

Operations

Key Personnel

SoftwareForTheMasses will initially be a small company, with William Pellerin as the proprietor and Software Development Team Lead. It is envisioned that two or three other individuals will join the effort to create a team to assist in the business. Currently, these individuals have not been identified.

One or two individuals are expected to be experienced programmers that can develop new code, support existing code, and write and maintain documentation.

Another individual is expected to aid in the business side of things, such as working with providers of internet services to host web sites and automated billing. The individual is also expected to have experience in accounting and legal matters.

Organization Structure

The diagram below shows the anticipated organizational structure of SoftwareForTheMasses.

- 15 -

..........

Volunteer Basis

For the immediate future, all people “working” for the company will be doing so on a volunteer basis. There are no employees and therefore no paid employees.

Reimbursements

Reimbursement for approved expenses directly for the benefit of the will be taken from the general fund. All expenses must be approved by the main proprietor.

Human Resources Plan

As the company does not have employees, there are no human resource programs available to anyone volunteering time or under contract.

- 16 -

Product & Service Delivery

SoftwareForTheMasses’s initial product, WinStocks, will be delivered to the customer either by downloading the program from the company approved web site, or by compact disk (CD) via the U.S. mail or other comparable service.

Customer Service & Support

As with any new software program released to the masses, several customer issues will arise. It is realized that to build a large customer base, the customer must be satisfied. To meet this need, the customer will be informed that service is the available via following means:

1) eMail, to the WebStocks@hotmail.com. This service is free.

2) U.S. mail, to the SoftwareForTheMasses company address.

3) A telephone number, where the customer is billed for the time.

4) Personal visitation, where the customer pays for travel expenses.

With a small number of people volunteering their time, the general quality of customer service may not be up to the customer’s expectations. To help alleviate this deficiency, a 30-day free trial period or 30-day full money back guarantee is provided for the customer to evaluate the product.

Facilities

The only necessary facility needed to operate the Company is a place to take phone calls and maintain the Company computer. For the foreseeable future, the main proprietor will allocate space in his home for these items. All meetings will be held at his home or restaurants.

- 17 -

..........

Financial Analysis

Income Assumptions and Comments

The financial year for SoftwareForTheMasses for the purposes of this report is from September 2005 through August of 2006. It appears from the analysis below that without investor funds, WinStocks would have a minimal loss of about $1000.

The following sources of income are considered for the first year of operation of SoftwareForTheMasses:

1) Sales of WinStocks – From the earlier discussion, 10 sales per month for 12 months of the $50 product will result in revenue of $6,000.

2) Incidental Income – Income from sources such as interest is minimal. $60 is a reasonable estimate for this item.

Expense Assumptions and Comments

To support the financial analysis for the operation of SoftwareForTheMasses, the following expenses are considered:

1) Marketing, Advertising and Sales Expenses – From an earlier discussion, a total of $2000 should be available for marketing and sales expenses.

2) Installation Software – InstallShield offers an installation package for $500.

3) Computer Equipment and Media Expenses – Some equipment or media may be required to support the Company. As computer equipment is relatively inexpensive, a total of $1000 is set aside for this expense.

4) WinStocks.com – An agency already has claimed WinStocks.com. They are asking $1000 for the rights to

- 18 -

the domain name.

5) Office Space Expenses – No office space is initially required, or expected during the first year of operation.

6) Office Supply Expenses – Stationary, packaging, envelopes, stamps, etc. will be required. $250 for this expense is anticipated.

7) Electrical Service Expenses – As the Company has no facility, no fees for electrical services are anticipated.

8) Search Engine Expenses – The Company will pay up to $1200 get hits from search engines.

9) Internet Service Provided – Cox currently charges about $50 per month for internet service.

10) Phone Service Expenses – A business telephone will be required. This service can be provided for about $250 per year if a broadband service is used.

11) Web-site Services Expenses – Upon researching magazines, a year of web site hosting with email support can be obtained for less than $100 a year.

12) Billing Service Expenses – No monthly expense for a billing service is expected. Two services that have been researched do not charge a monthly fee, but rather take a (base plus percentage) of the selling priced of the product.

13) Legal Services Expenses – Legal services should be at a minimum as boiler plate forms exists for almost any foreseen start-up legal issue. An estimate of $500 a year is made for this expense.

14) Accountant Services Expenses – The Company will be required to file federal and state tax returns. This expense is estimate at $250.

15) Banking Services Expenses – Free or minimal fees for checking accounts can be obtained at some banks. An estimate of $250 (or about $20 per month) for this expense is projected.

16) Unforeseen Expenses – As this is a start-up company, 25% of the above total will be used as a cushion.

Starting Balance Sheet

A desirable starting balance sheet to cover anticipated expenses for a year is shown in the table below:

- 19 -

..........

Profit and Loss Projection

Based upon a $6,060 income and expenses of $7,370, the loss for the first year is estimated to be $1310. Future P&L projections are planned to be made in December and June of the following years.

Cash Flow Projection

The table on the next page shows a project of cash flow for the first year of operation.

Schedule

The schedule for growing the company is shown below after the Cash Flow Projection.

- 20 -

..........

. . . . . . . . . .

Table 3 - Cash Flow Projection

  Income                       Outgo Net

 Mrkt Software

Office Space

Office Sup.

Elect PhoneSearch

EnginesWebsite &

EmailLegal Accntg Bank

 

S-05 $505 $0 $0 $0 $50 $0 $80 $100 $0 $50 $50 $45 $375 $130

O-05 $505 $0 $50 $0 $50 $0 $80 $100 $0 $0 $0 $45 $325 $180

N-05 $505 $0 $50 $0 $50 $25 $80 $100 $0 $50 $50 $45 $450 $55

D-05 $505 $0 $50 $0 $50 $25 $80 $100 $0 $0 $0 $45 $350 $155

J-05 $505 $250 $100 $125 $50 $25 $80 $100 $250 $50 $50 $45 $1,125 -$620

F-05 $505 $250 $100 $0 $50 $25 $80 $100 $0 $0 $0 $45 $650 -$145

M-05 $505 $250 $100 $0 $50 $25 $80 $100 $0 $50 $50 $50 $755 -$250

A-05 $505 $250 $50 $0 $50 $25 $80 $100 $0 $0 $0 $50 $605 -$100

M-05 $505 $250 $0 $0 $50 $25 $90 $100 $0 $50 $50 $50 $665 -$160

J-05 $505 $250 $0 $125 $50 $25 $90 $100 $250 $0 $0 $50 $940 -$435

J-05 $505 $250 $0 $0 $50 $25 $90 $100 $0 $0 $0 $50 $565 -$60

A-05 $505 $250 $0 $0 $50 $25 $90 $100 $0 $0 $0 $50 $565 -$60

   

  $6,060 $2,000 $500 $250 $600 $250 $1,000 $1,200 $500 $250 $250 $570 $7,370 -$1,310

- 21 -

..........

Figure 1 - Near Term Schedule

- 22 -

WinStocks.com Web Site Offer

A squatter has the rights the WinStocks.com. While the Company could use WinStocks.biz, which at last check, was available, WinStocks.com would be the better choice because of name recall. An email from the squatter is shown below.

From: Robert Kieren [contact@nameprodigy.com]Sent: Thursday, July 28, 2005 11:36 PMTo: 'William Pellerin'Subject: RE: Inquiry about WINSTOCKS.COM

Importance: High

I can offer WINSTOCKS.COM for $1,000. Sound Fair?

Highest regards,

NameProdigy, LLC. Robert Kieren, Chief Managerrobert@nameprodigy.com Phone - 865-577-8884Mobile - 865-621-4261Yahoo Messenger - nameprodigy

SquareTrade.com Business Member.

END OF DOCUMENT

- 23 -