Start-up | |
Requirements | |
Start-up Expenses | |
Legal | P1,400 |
Stationery etc. | P2,000 |
Brochures | P5,000 |
Consultants | P4,500 |
Staff Engagement | P4,000 |
Office Locatioin | P2,600 |
Staff Training | P5,000 |
Expensed equipment | P171,349 |
Other | P11,900 |
Total Start-up Expenses | P207,749 |
Start-up Assets | |
Cash Required | P492,251 |
Start-up Inventory | P0 |
Other Current Assets | P0 |
Long-term Assets | P0 |
Total Assets | P492,251 |
Total Requirements | P700,000 |
I Tech Solutions will provide computer products and services to small, medium, and large businesses. We will also be focused on providing network systems and services to businesses. The systems include both PC-based Land Area Networks (LAN) systems and minicomputer server-based systems. Our services include design and installation of network systems, training, and support.
I Tech Solutions intends to provide the following services:
I Tech Solutions will strive to maintain the latest hardware and software capabilities so as to ensure we are continuously at the forefront in our market arena. The one certainty in our industry is that technology will continue to evolve and develop, changing what we market, as well as how we market it. Our aim is to be aware of the implications of this new technology, and utilize it in our existing framework where possible. Complete presentation facilities for preparation and delivery of multimedia presentations on Macintosh or Windows machines, in formats that include on-disk presentation or video presentation are also possibilities.
Our macro-environment is exciting. We are in the middle of an unprecedented boom in connectivity and communications, as the Internet offers information technology like we never dreamed of. We are concerned with real value, real changes in the way we deal with information.
Meanwhile, all other signs are positive. The current drive by the government towards a more diversified economy presents an opportunity for our business to propel and excel in our intended markets, benefiting from the support of the concerned institutions and trade bodies. In addition to Botswana becoming an increasing economic hub, we foresee the demand for high quality business communication solutions to be on the rise. Through the undertaking of our business activities, we foresee no difficulty, in gaining market acceptance, provided we deliver the final service timeously, of good quality, and at competitive rates.
We must remain on top of any new technology, because this is our bread and butter. For networking, we need to provide better knowledge of cross platform technologies. Also, we will be under pressure to improve our understanding of direct-connect Internet and related communications.
In putting the company together, we have attempted to offer enough services to allow us to always be in demand by our clients. However, technological developments have provided us with a new era of opportunities for the various organizations in which we can only guess at the needs. For example, current rapid innovations/development of Wireless Application Protocol (WAP) technology presents an opportunity to be realized, particularly focusing on WAP-enabled cell phones that allow individuals to access or send email messages on a cell phone. However, the most important factor in developing future services will be market need. Our understanding of the needs of our target market segments will be one of our competitive advantages.
The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for I Tech Solutions to make a valuable contribution towards achieving this goal. This will result in the implementation of modern Information Technology (IT) services and techniques, transfer of knowledge, and availability of quality brands.
We will be focusing on proactive, market seeking organizations that want to ensure an efficient and effective IT system that will assist in the realization of their business objectives.
Our target companies are large enough to require the high-quality IT management we offer, but too small to have a separate computer management staff. However, our most important group of potential customers will be business executives in large, medium, and small corporations. These are marketing managers, general managers, sales managers, and other decision makers who often need to access company data and information in their various business decisions. They will not waste their time or money looking for bargain information, questionable expertise, or cheap computers and accessories. Our potential clients will include: (discussion omitted).
Another intention will be to offer an attractive development alternative to the company that is management constrained and unable to address opportunities in new markets and new market segments, due to technological shortfalls.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
SOHO Executives | 3% | 100 | 103 | 106 | 109 | 112 | 2.87% |
Government Institutions | 12% | 800 | 896 | 1,004 | 1,124 | 1,259 | 12.00% |
Financial Institutions | 17% | 50 | 59 | 69 | 81 | 95 | 17.41% |
Corporations | 22% | 3,000 | 3,660 | 4,465 | 5,447 | 6,645 | 22.00% |
Professional Firms | 3% | 400 | 412 | 424 | 437 | 450 | 2.99% |
Other | 4% | 200 | 208 | 216 | 225 | 234 | 4.00% |
Total | 17.91% | 4,550 | 5,338 | 6,284 | 7,423 | 8,795 | 17.91% |
Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our products and services’ prices take customers’ budgets into consideration, and that these people appreciate the product/service and know that it exists, including where to find it. One of our intentions will be to target those innovative or proactive companies contemplating transferring a part of their marketing activities on the Internet, in order to benefit from the advantages offered by this unique system of communication. We realize the need to focus our marketing message and our service offerings.
Since our target market is the product and service seeker, the most important market needs are support, service, training, and installation, in that order. One of the key points of our strategy will be the focus on target segments that know and understand these needs and are willing to pay to have them filled. We realize that all personal computer users need support and service. Many of our target customers are going to be those who cannot get good products or services from the major vendors who focus on high volume orders only.
The most obvious trend in the market is the increasing number of IT firms on the market. This has been true for years, but the trend seems to be accelerating. We see the major brand-name manufacturers being established on the market mainly through agents. Secondly, the computer has become a basic necessity in the office environment and business set-up. The vast improvements in computer power and storage, means that owners are mandated to up-grade or buy new and improved systems, with the former often being much cheaper. A third trend is ever-greater connectivity. Everybody wants to be on the Internet, and every office is looking at having a LAN. However, the major stumbling block for the majority of theses companies is the high cost of installing such networks.
The following sections provided discussions on who participates in the computer industry, what the competition provides, and what the customer has been purchasing.
We are part of the computer reselling business, which includes several kinds of businesses:
The vast majority of proactive, market-oriented businesses understand the value of having an efficient computer system, as well as the concept of service and support. They are much more likely to pay for them when the offering and benefits are clearly stated.
There is no doubt that we will compete more against the box pushers than other service providers. We need to effectively compete against the idea that once a computer is out-dated businesses should buy new ones, when with ongoing service and support, they can be upgraded.
The most important element of general competition, by far, is what it takes to keep clients for repeat business. It is worth making huge concessions in any single service to maintain a client relationship that brings the client back for future services.
I Tech Solutions intends to win and maintain customers by providing products and services that add value, safety, and are supported by a well-trained professional team with commercial expertise. This is important to the successful implementation of our overall strategy and the need to ensure that all divisions and functions in the organization are working harmoniously towards attainment of the goals and objectives.
Our marketing strategy emphasizes focus. The target customers will include key decision-makers in business, who often order or recommend on behalf of the whole organization, the aim being to obtain an initial order and fully satisfy the customer from then on.
We intend to achieve growth by creating a more enthusiastic customer culture than that of our competitors. The strategy is to grow the business by nurturing customers, differentiating the product/service offering through service and staff behavior.
Through the implementation of a fair, effective, and competitive remuneration policy we intend to optimize our human resource output and advancement. We need the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows–a mutually beneficial relationship.
The SWOT Analysis is a necessity to any start-up, it is an in-depth look at your Strengths, Weaknesses, Opportunities, and Threats. We are in a highly lucrative market in a growing economy. We foresee our strengths as the ability to respond to the market and to provide custom designed technological services. Our key personnel will have a wide and thorough knowledge of the technological services we intend to provide, which will go a long way towards penetrating the market. Below is a summary of the SWOT Analysis.
5.3 marketing strategy.
One core element of our marketing strategy will be that of differentiation from our competitors. In terms of promotion, we intend to sell our company as a strategic ally, not just our products. We intend to offer extremely reasonable prices in comparison to competition, and we need to be able to sustain that. Market penetration through lower prices shall be undertaken where need be, while premium pricing in the case of the upper-end of the market.
We have developed two strategy foci, each based on one main fundamental strategy. The first strategy is about ( discussion omitted ).
Our second strategic focus, that of ( discussion omitted ).
Service provision and consulting will be sold and purchased mainly on a word-of-mouth basis, with relationships and previous experience being, by far, the most important factor. In this regard we intend to provide a service that exceeds customer expectations so as to ensure they refer us to potential clients through word-of-mouth. New business shall be developed through industry associations, business associations, and, in some cases, social associations, such as country clubs.
Advertising
In view of the fact that we are new on the market, we intend to undertake extensive advertising of our name and products and services we offer. This is to instill awareness and knowledge of our existence in the marketplace, which shall convert into market share. We intend to advertise in business and IT magazines that are read by our target market and will ensure we are adequately exposed on the market. A constant lookout will be made of any special editions in these various publications, which may provide an opportunity for us to advertise our services and ourselves. Advertising will also be conducted through television, radio, newspapers/magazines, and the Internet. Sponsoring a technology discussion/call-in talk show is a possibility.
Personal Selling
Word of mouth is critical in this segment. We will have to make sure that once we gain a customer, we never lose him/her. To help accomplish this, we must work to establish and maintain relationships. Personal selling will be a powerful form of promotion due to the fact that its flexibility will enable us to match the customer’s needs to specific attributes of our services, as well as giving concise details of what we are able to offer.
Public Relations
Recognizing that we are relatively new on the market, there will be a need to organize an event introducing ourselves onto the market. To this we will invite potential customers, senior officials, possibly including a government minister and other stakeholders, so as to penetrate the market. In collaboration with this we, also intend to place news stories and features in magazines and newspapers to keep stakeholders updated on the latest developments and to increase awareness.
The number of IT companies on the market dictates that the organization needs to promote itself through participation in trade shows and expositions. Not only will these increase awareness of our products and services, but if a particular product or service were to gain recognition, for example through being chosen No. 1 in innovativeness, the organization will be able to take advantage of this in all its promotional campaigns, adding leverage to its reputation and corporate image. An example of a trade show we intend to participate at is BITEC. These expositions will also be a good opportunity for us to network with various organizations and individuals.
Internet Marketing
The company will sell its services over the Internet as it is cost effective to reach a large number of potential clients, regionally and internationally. We also realize that customer/client research is needed before building an effective website, something which is rarely done by existing companies, in order to find out how customers will want to access information and journey through the site.
I Tech Solutions will position itself as a reliable solutions provider and trusted strategic ally who makes sure systems work, people are comfortable and conversant with the system, and down time is minimal. Unlike the other vendors/retail stores, we intend to know the customer and go to his or her site when needed, offering proactive support, service, training, and installation. In addition, I Tech Solutions is an ally to our clients’ businesses, and offers them a full range of services, from installation to support.
We must charge appropriately for the high-end, high-quality service and support we offer. Our revenue structure has to match our cost structure, so the salaries we pay to assure good service and support must be balanced by the revenue we charge. Therefore, we must make sure that we deliver and charge for service and support. Training, service, installation, and networking support–all of this must be readily available and priced to sell and deliver revenue. We will charge ( discussion omitted ). This will ensure we penetrate the market upon entry.
Our promotion strategy will be based primarily on informing potential customers of our existence and making the right information available to our target customer. I Tech Solutions intends to utilize an aggressive promotional campaign to introduce its products and services to the market. The intention will be to take advantage of several media sources in announcing the products and services and in the process enforcing awareness of our existence.
I Tech Solutions will receive its revenue streams from a combination of licensing agreements, sales commissions, monthly subscriptions, registration fees, network access charges, service fees, transaction charges, training, promotional incentive programs, and sales of hardware and software. The derived value of I Tech Solutions will come from the key partnerships established and developed in order to deliver a product and service provision of transactionally-based activities, providing opportunity to build brand and loyalty, around which relationship marketing will play a key role.
The sales forecast monthly summary is included in the appendix. The annual sales projections are provided in a table below. It should be noted that as we become established and known on the market we project sales to increase at a faster rate than the initial year.
Note : All currency values in the charts and tables are expressed in the Botswana Pula (P).
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Products/Services | P1,422,225 | P2,528,400 | P3,034,080 |
Other | P0 | P0 | P0 |
Total Sales | P1,422,225 | P2,528,400 | P3,034,080 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Products/Services | P711,114 | P1,264,200 | P1,517,040 |
Other | P0 | P0 | P0 |
Subtotal Direct Cost of Sales | P711,114 | P1,264,200 | P1,517,040 |
I Tech Solutions intends to go into strategic alliances with several organizations. This will also reassure our customers that they are investing in “winning” products, technology, and service that are maintainable, flexible, and scalable enough to meet future demands.
At this writing, strategic alliances with several companies are possibilities, including X, given the content of existing interest and discussions. By going into strategic partnerships with suitable organizations, we will benefit from being able to concentrate on our core activities in the delivery of our products and services to the end-user, while ensuring that we do not have to compromise on quality of execution or the number of products and services we are able to deliver.
The human resources element shall be an essential component in the delivery of the total service. By having enthusiastic, capable, and empowered people interacting with our clients, we intend to build the competitive advantage of being able to comprehensively meet our clients’ needs. We also intend to give our teams enough leverage in decision-making to ensure that clients are handled promptly and to reduce lead-time in actual delivery of the service. It will be necessary to evaluate jobs and remuneration packages against market benchmarks to employees for their tasks to ensure they are competitive.
Our management philosophy is based on responsibility and mutual respect. We recognize the need to be constantly changing so as to adapt to the prevailing environment. We will have a flexible structure allowing for the above to be undertaken swiftly and smoothly. Please find below the job titles and descriptions we intend to have in place for the key personnel. ( table omitted )
In a highly volatile industry with increasing competition, we recognize the need to be constantly changing to adapt to the prevailing environment. The management team extensive expertise and a broad knowledge of the products/services and markets, which, if well planned, will enable the business to realize its goals and objectives.
( profiles omitted )
The management style will reflect the participation of the shareholders. The company will respect its community and treat all employees well. We will develop and nurture the company as a community. We will not be hierarchical, especially considering the rate of change in our industry, which makes it mandatory for us to be highly flexible. Management’s ongoing initiatives to drive sales, market share and productivity will provide additional impetus.
The detailed monthly personnel plan for the first three years is included in the appendix. The annual personnel estimates are included here. We believe this plan is a fair compromise between fairness and expedience, and meets the commitments of our mission statement. We want the company to stay lean and flexible so that we can respond to our markets’ needs quickly. As we expand and increase in size we do expect to increase our personnel.
We will compensate our personnel well, so as to retain their invaluable expertise and ensure job satisfaction and enrichment through delegation of authority. Our compensation will include health care, generous profit sharing, and a minimum of 3 weeks vacation.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Directors | P135,000 | P180,000 | P216,000 |
Personal Assistant | P10,800 | P13,200 | P14,520 |
Cleaner | P3,600 | P6,000 | P7,200 |
Total People | 5 | 5 | 5 |
Total Payroll | P149,400 | P199,200 | P237,720 |
In-house training shall be continuous with regular external training being undertaken, particularly following any new developments in the market. This is to ensure that we are continuously able to anticipate our markets needs–a proactive approach, which is so essential if we are to gain and maintain a competitive advantage. External training will also be conducted to ensure we are aware of the latest products and technology. This will also ensure that our personnel are able to set high standards, or benchmark, using these organizations standards.
(a) We will encourage our employees to put forward any suggestions they might have regarding the improvement of any of the company’s functions–an open door philosophy. Such a culture will enhance innovativeness and creativity in turn leading to job satisfaction and enrichment.
(b) We undertake to continuously formalize and measure cross-functional working communication so as to ensure that the various departments work harmoniously towards attainment of corporate objectives
(c) Important notices and developments will be continuously communicated to employees so as to keep them abreast of developments and promoting a sense of belonging and oneness in the organization.
We want to finance growth mainly through cash flow and equity. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days. We can’t push our clients hard on collection days, because they are in larger companies and will normally have marketing authority, not financial authority. Therefore we need to develop a permanent system of receivables financing, using one of the established accounting systems. In turn we intend to ensure that our investors are compatible with our growth plan, management style, and vision. Compatibility in this regard means:
Of these, only the last 2 are flexible.
The following table and chart summarizes our Break-even Analysis. We don’t really expect to reach break-even until several months into the business operation, as illustrated in the financials.
Break-even Analysis | |
Monthly Revenue Break-even | P47,662 |
Assumptions: | |
Average Percent Variable Cost | 50% |
Estimated Monthly Fixed Cost | P23,831 |
The financial plan depends on important assumptions. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the more important underlying assumptions are:
Others include 30-day average collection days, sales entirely on invoice basis, including a favorable deposit policy, expenses mainly on a net 30-day basis, 30 days on average for payment of invoices, and present-day interest rates.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 17.00% | 17.00% | 17.00% |
Long-term Interest Rate | 17.00% | 17.00% | 17.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
We foresee major growth in sales and operating expenses, and a bump in our collection days as we spread the business during expansion.
Collection days are very important. We do not want to let our average collection days get above 30 under any circumstances. This could cause a serious problem with cash flow, because our working capital situation is chronically tight. However, we recognize that we cannot control this factor easily, because of the relationship with our clients.
Initial marketing and training expenses will be relatively high as we seek to become known on the market and staff get trained in provision of our services. This will be brought about by the development of sales literature, advertising expenses, and function expenses. As our market share increases and capital is generated, further marketing programs and the expansion of those in existence at the time will be undertaken, to ensure market development. However, with time, these programs will start generating revenue for the business, which we shall reinvest.
Our projected Profit and Loss is shown in the appendix, with sales increasing steadily from the first year through the second, and into the third year. We do expect to more than break-even in the first year of operation. Our cost of sales should be much lower, and gross margin higher, than in this projection.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | P1,422,225 | P2,528,400 | P3,034,080 |
Direct Cost of Sales | P711,114 | P1,264,200 | P1,517,040 |
Other | P0 | P0 | P0 |
Total Cost of Sales | P711,114 | P1,264,200 | P1,517,040 |
Gross Margin | P711,111 | P1,264,200 | P1,517,040 |
Gross Margin % | 50.00% | 50.00% | 50.00% |
Expenses | |||
Payroll | P149,400 | P199,200 | P237,720 |
Sales and Marketing and Other Expenses | P95,772 | P154,140 | P182,196 |
Depreciation | P0 | P0 | P0 |
Utilities | P3,600 | P3,960 | P4,356 |
Telephone | P6,000 | P6,600 | P7,260 |
Insurance | P14,400 | P15,840 | P17,424 |
Rent | P16,800 | P18,480 | P20,328 |
Insurance | P0 | P0 | P0 |
Payroll Taxes | P0 | P0 | P0 |
Other | P0 | P0 | P0 |
Total Operating Expenses | P285,972 | P398,220 | P469,284 |
Profit Before Interest and Taxes | P425,139 | P865,980 | P1,047,756 |
EBITDA | P425,139 | P865,980 | P1,047,756 |
Interest Expense | P92,497 | P75,684 | P58,140 |
Taxes Incurred | P82,612 | P197,574 | P251,527 |
Net Profit | P250,030 | P592,722 | P738,089 |
Net Profit/Sales | 17.58% | 23.44% | 24.33% |
The chart and table below present the cash flow projections for I Tech Solutions.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | P426,668 | P758,520 | P910,224 |
Cash from Receivables | P763,507 | P1,589,396 | P2,041,349 |
Subtotal Cash from Operations | P1,190,174 | P2,347,916 | P2,951,573 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | P0 | P0 | P0 |
New Current Borrowing | P0 | P0 | P0 |
New Other Liabilities (interest-free) | P0 | P0 | P0 |
New Long-term Liabilities | P0 | P0 | P0 |
Sales of Other Current Assets | P0 | P0 | P0 |
Sales of Long-term Assets | P0 | P0 | P0 |
New Investment Received | P0 | P0 | P0 |
Subtotal Cash Received | P1,190,174 | P2,347,916 | P2,951,573 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | P149,400 | P199,200 | P237,720 |
Bill Payments | P1,002,379 | P1,773,057 | P2,068,003 |
Subtotal Spent on Operations | P1,151,779 | P1,972,257 | P2,305,723 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | P0 | P0 | P0 |
Principal Repayment of Current Borrowing | P0 | P0 | P0 |
Other Liabilities Principal Repayment | P0 | P0 | P0 |
Long-term Liabilities Principal Repayment | P103,200 | P103,200 | P103,200 |
Purchase Other Current Assets | P141,200 | P0 | P0 |
Purchase Long-term Assets | P240,000 | P0 | P0 |
Dividends | P0 | P0 | P0 |
Subtotal Cash Spent | P1,636,179 | P2,075,457 | P2,408,923 |
Net Cash Flow | (P446,005) | P272,459 | P542,650 |
Cash Balance | P46,246 | P318,705 | P861,356 |
The balance sheet shows healthy growth of net worth, and strong financial position. The three-year estimates are included in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | P46,246 | P318,705 | P861,356 |
Accounts Receivable | P232,051 | P412,535 | P495,042 |
Inventory | P92,708 | P164,814 | P197,777 |
Other Current Assets | P141,200 | P141,200 | P141,200 |
Total Current Assets | P512,205 | P1,037,254 | P1,695,374 |
Long-term Assets | |||
Long-term Assets | P240,000 | P240,000 | P240,000 |
Accumulated Depreciation | P0 | P0 | P0 |
Total Long-term Assets | P240,000 | P240,000 | P240,000 |
Total Assets | P752,205 | P1,277,254 | P1,935,374 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | P113,124 | P148,651 | P171,882 |
Current Borrowing | P0 | P0 | P0 |
Other Current Liabilities | P0 | P0 | P0 |
Subtotal Current Liabilities | P113,124 | P148,651 | P171,882 |
Long-term Liabilities | P496,800 | P393,600 | P290,400 |
Total Liabilities | P609,924 | P542,251 | P462,282 |
Paid-in Capital | P100,000 | P100,000 | P100,000 |
Retained Earnings | (P207,749) | P42,281 | P635,003 |
Earnings | P250,030 | P592,722 | P738,089 |
Total Capital | P142,281 | P735,003 | P1,473,092 |
Total Liabilities and Capital | P752,205 | P1,277,254 | P1,935,374 |
Net Worth | P142,281 | P735,003 | P1,473,092 |
The following table shows important ratios from the computer related services industry, as determined by the Standard Industry Classification (SIC) Index #7379, Computer Related Services.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 77.78% | 20.00% | 7.20% |
Percent of Total Assets | ||||
Accounts Receivable | 30.85% | 32.30% | 25.58% | 21.70% |
Inventory | 12.32% | 12.90% | 10.22% | 3.50% |
Other Current Assets | 18.77% | 11.05% | 7.30% | 46.70% |
Total Current Assets | 68.09% | 81.21% | 87.60% | 71.90% |
Long-term Assets | 31.91% | 18.79% | 12.40% | 28.10% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 15.04% | 11.64% | 8.88% | 51.40% |
Long-term Liabilities | 66.05% | 30.82% | 15.00% | 19.10% |
Total Liabilities | 81.08% | 42.45% | 23.89% | 70.50% |
Net Worth | 18.92% | 57.55% | 76.11% | 29.50% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 50.00% | 50.00% | 50.00% | 0.00% |
Selling, General & Administrative Expenses | 32.96% | 27.34% | 26.62% | 80.70% |
Advertising Expenses | 0.97% | 0.42% | 0.38% | 1.20% |
Profit Before Interest and Taxes | 29.89% | 34.25% | 34.53% | 1.70% |
Main Ratios | ||||
Current | 4.53 | 6.98 | 9.86 | 1.27 |
Quick | 3.71 | 5.87 | 8.71 | 1.01 |
Total Debt to Total Assets | 81.08% | 42.45% | 23.89% | 70.50% |
Pre-tax Return on Net Worth | 233.79% | 107.52% | 67.18% | 3.50% |
Pre-tax Return on Assets | 44.22% | 61.87% | 51.13% | 11.80% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 17.58% | 23.44% | 24.33% | n.a |
Return on Equity | 175.73% | 80.64% | 50.10% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.29 | 4.29 | 4.29 | n.a |
Collection Days | 56 | 66 | 78 | n.a |
Inventory Turnover | 10.91 | 9.82 | 8.37 | n.a |
Accounts Payable Turnover | 9.86 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 26 | 28 | n.a |
Total Asset Turnover | 1.89 | 1.98 | 1.57 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 4.29 | 0.74 | 0.31 | n.a |
Current Liab. to Liab. | 0.19 | 0.27 | 0.37 | n.a |
Liquidity Ratios | ||||
Net Working Capital | P399,081 | P888,603 | P1,523,492 | n.a |
Interest Coverage | 4.60 | 11.44 | 18.02 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.53 | 0.51 | 0.64 | n.a |
Current Debt/Total Assets | 15% | 12% | 9% | n.a |
Acid Test | 1.66 | 3.09 | 5.83 | n.a |
Sales/Net Worth | 10.00 | 3.44 | 2.06 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Products/Services | 0% | P31,605 | P31,605 | P31,605 | P105,350 | P105,350 | P105,350 | P168,560 | P168,560 | P168,560 | P168,560 | P168,560 | P168,560 |
Other | 0% | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 |
Total Sales | P31,605 | P31,605 | P31,605 | P105,350 | P105,350 | P105,350 | P168,560 | P168,560 | P168,560 | P168,560 | P168,560 | P168,560 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Products/Services | P15,803 | P15,803 | P15,803 | P52,675 | P52,675 | P52,675 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | |
Other | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Subtotal Direct Cost of Sales | P15,803 | P15,803 | P15,803 | P52,675 | P52,675 | P52,675 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Directors | 0% | P7,500 | P7,500 | P7,500 | P7,500 | P7,500 | P7,500 | P15,000 | P15,000 | P15,000 | P15,000 | P15,000 | P15,000 |
Personal Assistant | 0% | P900 | P900 | P900 | P900 | P900 | P900 | P900 | P900 | P900 | P900 | P900 | P900 |
Cleaner | 0% | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 |
Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | P8,700 | P8,700 | P8,700 | P8,700 | P8,700 | P8,700 | P16,200 | P16,200 | P16,200 | P16,200 | P16,200 | P16,200 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | |
Long-term Interest Rate | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | P31,605 | P31,605 | P31,605 | P105,350 | P105,350 | P105,350 | P168,560 | P168,560 | P168,560 | P168,560 | P168,560 | P168,560 | |
Direct Cost of Sales | P15,803 | P15,803 | P15,803 | P52,675 | P52,675 | P52,675 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | |
Other | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Total Cost of Sales | P15,803 | P15,803 | P15,803 | P52,675 | P52,675 | P52,675 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | |
Gross Margin | P15,802 | P15,802 | P15,802 | P52,675 | P52,675 | P52,675 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | P84,280 | |
Gross Margin % | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |
Expenses | |||||||||||||
Payroll | P8,700 | P8,700 | P8,700 | P8,700 | P8,700 | P8,700 | P16,200 | P16,200 | P16,200 | P16,200 | P16,200 | P16,200 | |
Sales and Marketing and Other Expenses | P6,300 | P2,100 | P2,100 | P7,368 | P7,368 | P7,368 | P10,528 | P10,528 | P10,528 | P10,528 | P10,528 | P10,528 | |
Depreciation | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Utilities | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | P300 | |
Telephone | P500 | P500 | P500 | P500 | P500 | P500 | P500 | P500 | P500 | P500 | P500 | P500 | |
Insurance | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | P1,200 | |
Rent | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | P1,400 | |
Insurance | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Payroll Taxes | 0% | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 |
Other | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Total Operating Expenses | P18,400 | P14,200 | P14,200 | P19,468 | P19,468 | P19,468 | P30,128 | P30,128 | P30,128 | P30,128 | P30,128 | P30,128 | |
Profit Before Interest and Taxes | (P2,598) | P1,602 | P1,602 | P33,207 | P33,207 | P33,207 | P54,152 | P54,152 | P54,152 | P54,152 | P54,152 | P54,152 | |
EBITDA | (P2,598) | P1,602 | P1,602 | P33,207 | P33,207 | P33,207 | P54,152 | P54,152 | P54,152 | P54,152 | P54,152 | P54,152 | |
Interest Expense | P8,378 | P8,256 | P8,135 | P8,013 | P7,891 | P7,769 | P7,647 | P7,525 | P7,404 | P7,282 | P7,160 | P7,038 | |
Taxes Incurred | (P3,293) | (P1,664) | (P1,633) | P6,299 | P6,329 | P6,360 | P11,626 | P11,657 | P11,687 | P11,718 | P11,748 | P11,779 | |
Net Profit | (P7,683) | (P4,991) | (P4,899) | P18,896 | P18,987 | P19,079 | P34,879 | P34,970 | P35,061 | P35,153 | P35,244 | P35,336 | |
Net Profit/Sales | -24.31% | -15.79% | -15.50% | 17.94% | 18.02% | 18.11% | 20.69% | 20.75% | 20.80% | 20.85% | 20.91% | 20.96% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | P9,482 | P9,482 | P9,482 | P31,605 | P31,605 | P31,605 | P50,568 | P50,568 | P50,568 | P50,568 | P50,568 | P50,568 | |
Cash from Receivables | P0 | P737 | P22,124 | P22,124 | P23,844 | P73,745 | P73,745 | P75,220 | P117,992 | P117,992 | P117,992 | P117,992 | |
Subtotal Cash from Operations | P9,482 | P10,219 | P31,605 | P53,729 | P55,449 | P105,350 | P124,313 | P125,788 | P168,560 | P168,560 | P168,560 | P168,560 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 |
New Current Borrowing | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
New Other Liabilities (interest-free) | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
New Long-term Liabilities | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Sales of Other Current Assets | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Sales of Long-term Assets | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
New Investment Received | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Subtotal Cash Received | P9,482 | P10,219 | P31,605 | P53,729 | P55,449 | P105,350 | P124,313 | P125,788 | P168,560 | P168,560 | P168,560 | P168,560 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | P8,700 | P8,700 | P8,700 | P8,700 | P8,700 | P8,700 | P16,200 | P16,200 | P16,200 | P16,200 | P16,200 | P16,200 | |
Bill Payments | P1,599 | P47,302 | P27,893 | P30,821 | P116,958 | P77,660 | P80,061 | P151,085 | P117,387 | P117,296 | P117,204 | P117,113 | |
Subtotal Spent on Operations | P10,299 | P56,002 | P36,593 | P39,521 | P125,658 | P86,360 | P96,261 | P167,285 | P133,587 | P133,496 | P133,404 | P133,313 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Principal Repayment of Current Borrowing | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Other Liabilities Principal Repayment | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Long-term Liabilities Principal Repayment | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | P8,600 | |
Purchase Other Current Assets | P0 | P0 | P141,200 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Purchase Long-term Assets | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | P20,000 | |
Dividends | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | |
Subtotal Cash Spent | P38,899 | P84,602 | P206,393 | P68,121 | P154,258 | P114,960 | P124,861 | P195,885 | P162,187 | P162,096 | P162,004 | P161,913 | |
Net Cash Flow | (P29,418) | (P74,383) | (P174,788) | (P14,393) | (P98,809) | (P9,610) | (P548) | (P70,097) | P6,373 | P6,464 | P6,556 | P6,647 | |
Cash Balance | P462,833 | P388,450 | P213,662 | P199,269 | P100,460 | P90,850 | P90,303 | P20,206 | P26,579 | P33,043 | P39,599 | P46,246 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | P492,251 | P462,833 | P388,450 | P213,662 | P199,269 | P100,460 | P90,850 | P90,303 | P20,206 | P26,579 | P33,043 | P39,599 | P46,246 |
Accounts Receivable | P0 | P22,124 | P43,510 | P43,510 | P95,131 | P145,032 | P145,032 | P189,279 | P232,051 | P232,051 | P232,051 | P232,051 | P232,051 |
Inventory | P0 | P17,383 | P17,383 | P17,383 | P57,943 | P57,943 | P57,943 | P92,708 | P92,708 | P92,708 | P92,708 | P92,708 | P92,708 |
Other Current Assets | P0 | P0 | P0 | P141,200 | P141,200 | P141,200 | P141,200 | P141,200 | P141,200 | P141,200 | P141,200 | P141,200 | P141,200 |
Total Current Assets | P492,251 | P502,340 | P449,343 | P415,755 | P493,543 | P444,635 | P435,025 | P513,490 | P486,165 | P492,538 | P499,002 | P505,558 | P512,205 |
Long-term Assets | |||||||||||||
Long-term Assets | P0 | P20,000 | P40,000 | P60,000 | P80,000 | P100,000 | P120,000 | P140,000 | P160,000 | P180,000 | P200,000 | P220,000 | P240,000 |
Accumulated Depreciation | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 |
Total Long-term Assets | P0 | P20,000 | P40,000 | P60,000 | P80,000 | P100,000 | P120,000 | P140,000 | P160,000 | P180,000 | P200,000 | P220,000 | P240,000 |
Total Assets | P492,251 | P522,340 | P489,343 | P475,755 | P573,543 | P544,635 | P555,025 | P653,490 | P646,165 | P672,538 | P699,002 | P725,558 | P752,205 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | P0 | P46,373 | P26,966 | P26,878 | P114,370 | P75,074 | P74,986 | P147,172 | P113,477 | P113,389 | P113,300 | P113,212 | P113,124 |
Current Borrowing | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 |
Other Current Liabilities | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 | P0 |
Subtotal Current Liabilities | P0 | P46,373 | P26,966 | P26,878 | P114,370 | P75,074 | P74,986 | P147,172 | P113,477 | P113,389 | P113,300 | P113,212 | P113,124 |
Long-term Liabilities | P600,000 | P591,400 | P582,800 | P574,200 | P565,600 | P557,000 | P548,400 | P539,800 | P531,200 | P522,600 | P514,000 | P505,400 | P496,800 |
Total Liabilities | P600,000 | P637,773 | P609,766 | P601,078 | P679,970 | P632,074 | P623,386 | P686,972 | P644,677 | P635,989 | P627,300 | P618,612 | P609,924 |
Paid-in Capital | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 | P100,000 |
Retained Earnings | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) | (P207,749) |
Earnings | P0 | (P7,683) | (P12,674) | (P17,573) | P1,322 | P20,309 | P39,388 | P74,267 | P109,237 | P144,298 | P179,451 | P214,695 | P250,030 |
Total Capital | (P107,749) | (P115,432) | (P120,423) | (P125,322) | (P106,427) | (P87,440) | (P68,361) | (P33,482) | P1,488 | P36,549 | P71,702 | P106,946 | P142,281 |
Total Liabilities and Capital | P492,251 | P522,340 | P489,343 | P475,755 | P573,543 | P544,635 | P555,025 | P653,490 | P646,165 | P672,538 | P699,002 | P725,558 | P752,205 |
Net Worth | (P107,749) | (P115,432) | (P120,423) | (P125,322) | (P106,427) | (P87,440) | (P68,361) | (P33,482) | P1,488 | P36,549 | P71,702 | P106,946 | P142,281 |
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Home » Sample Business Plans » Technology
Are you about starting a computer sales & services business? If YES, here is a complete sample computer sales & services business plan template & feasibility report you can use for FREE . According to a recent report, computer sales and related services are expected to exceed $47 billion this year in the U.S. alone, with computer servicing leading the way.
This goes to show that any entrepreneur who properly positions himself or herself in computer sales and servicing industry would definitely enjoy good business turnover. As a matter of fact, almost all businesses and homes have computers, and these people may not have the skills, time or the desire to do their own computer servicing, repairs and upgrades, and that puts a computer physician right in the middle of one of the fastest-growing industries in the world.
1. industry overview.
The computer sales and servicing industry includes operators that mainly sell and service all forms of computers such as desktops, laptops, notebooks, palmtops and software, as well as accessories like printers, scanners and keyboards. These goods are generally purchased from domestic and international manufacturers and wholesalers and then sold to end consumers, including households and businesses.
Computers have exploded throughout America and the world over the past 30 years – from 2,000 units shipped in 1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million per year by 2003 to over 65 million per quarter in 2015. With this rapid growth, there has been a corresponding increase in the need for computer services.
If you are conversant with happenings in the Computer Sales and Services industry, you will notice that computers are rapidly becoming indispensable household and personal products. In spite of the growing ubiquity of these products, retailers of computers, peripherals and consumer electronics have experienced some time-consuming challenges over the past five years.
Swift technological change, increased production efficiency and a highly globalized supply chain have lowered computer retail prices, hampering the industry’s revenue potential.
In addition, the increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue. More consumers are now taking advantage of online shopping, which facilitates product and price comparisons. Going forward, industry revenue is expected to decrease.
The Computer Sales and Services industry is indeed a large industry and pretty much active in most countries of the world. Statistics has it that in the united states of America alone, there are about 18,173 registered and licensed (big, medium scale and small) computer manufacturing companies scattered all across the United States responsible for employing about 94,791 people and the industry rakes in a whooping sum of $29 billion annually.
The industry is projected to enjoy -0.4 percent annual growth within 2012 and 2017. It is important to state that Apple Inc., Best Buy Co. Inc. and Fry’s have lion shares of the available market in this industry.
Computer sales account for an estimated 44.0 percent of industry revenue in 2017. Products in this segment include desktops and laptops, with laptop sales outpacing that of desktops. While desktops were historically the most commonly purchased computer product, the falling price of computers and computer components over the past five years reduced the premium that laptops once commanded over desktops.
A majority of consumers’ favor laptops for their portability, augmented by the increasingly wireless data infrastructure. However, desktops still maintain advantages in niche market, particularly with gaming enthusiasts and computer power users who prefer a desktop computer’s superior upgrade potential, ease of repair and customizability.
No doubt everybody will quite agree that the computer sales and services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all aspects of what goes around in our world today as long as computers are involved.
Over and above, the Computer Sales and Services industry is an open industry hence a low level of market share concentration. Even though large multiservice agencies operate in the industry, revenue is also spread among thousands of small computer stores and repair centers.
Harry & Barry® Computer Sales & Services Center, LLC is a U.S based computer sales and services company. We have been able to secure a standard store facility in a central business district in Phillips Avenue, Sioux Falls – South Dakota. We are set to compete in the highly competitive computer sales and services industry not only in Sioux Falls – South Dakota, but also throughout the United States market.
Harry & Barry® Computer Sales & Services Center, LLC will engage in the sales and servicing of all forms of computers such as desktops, laptops, palmtops and software, as well as accessories like printers, scanners and keyboards. Our business goal is to become one of the top brands in the computer sales and services industry in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of certified and highly experienced computer sales and services engineers in and around Sioux Falls – South Dakota and also from any part of the United States of America as the business grows. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectations of the company.
At Harry & Barry® Computer Sales & Services Center, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Harry & Barry® Computer Sales & Services Center, LLC is a joint partnership business that is owned by Engr. Harry Jordan a computer engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr. Computer Engineering), and his friend and business partner Barry Martins (B.Sc. Business Management).
They have a combined experience that can help them build Harry & Barry® Computer Sales & Services Center, LLC to favorably compete with other leading computer sales and services businesses in the United States of America.
Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry. We want to compete favorably with companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service rendered meets and even surpasses our customers’ expectations.
We will work hard to ensure that Harry & Barry® Computer Sales & Services Center, LLC is not just accepted in Sioux Falls – South Dakota but also in other cities in the United States of America. Our products and services are listed below;
Our Business Structure
Harry & Barry® Computer Sales & Services Center, LLC, is a computer sales and services company that intend starting small in Phillips Avenue, Sioux Falls, but hopes to grow big in order to compete with leading computer sales and services companies in the United States.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.
At Harry & Barry® Computer Sales & Services Center, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
Chief Executive Officer – CEO:
Admin and HR Manager
Store Manager:
Head, Technical Services:
Sales and Marketing Manager
Accountant/Cashier:
Computer Repair and Maintenance Engineers (2) and Technicians (8)
Help Desk Officers
Because of our quest for excellence, Harry & Barry® Computer Sales & Services Center, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured computer sales and services business that can favorably compete in the industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Harry & Barry® Computer Sales & Services Center, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Harry & Barry® Computer Sales & Services Center, LLC;
Our core strength lies in the power of our workforce. We have a team of trained and certified computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry and we will ensure that we have all brands and types of computers in our store per time.
As a new computer sales and services center in Sioux Falls – South Dakota, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already highly competitive computer sales and services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
No doubt, the opportunities in the computer sales and services industry is massive considering the number of individuals and businesses that own computers. So also, the launch of new tablets will likely drive consumers into stores to test and compare products. As a computer sales and services company, we are ready to take advantage of any opportunity that is available in the industry.
The increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue and also, the domestic PC market has shrunk due to market saturation and greater competition from tablets, are some of the threats that will confront us.
So also, one major threat that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new computer sales and services center in same location where our target market exists and who may want to adopt same Business model like us.
The extent at which the internet and computer has taken over our world is a pure sign that every computer literate needs the services of a computer repairer when his/her computer malfunctions – be it hardware or software.
The very nature of the Computer Sales and Services industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.
With every individual armed with a computer and with almost all valuable information in our daily lives being stored in the computer, the computer selling business is booming and with this booming comes a need for repair.
Everybody with a computer knows that moment of panic when the hard drive crashes–and for business people, it usually happens when they are staring into the eye of a deadline. The need for computer physicians is growing every day and more people are venturing into this field, making it a competitive and goal oriented industry.
Lastly, the computer sales and services industry will continue to evolve due to the advancement of computer technology and software designs et al.
Before starting our computer sales and services business in Sioux Falls – South Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without computers.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our products and services. Below is a list of people we will specifically market our products and services to;
Our Competitive Advantage
Surviving in the business world as a computer sales and services company requires more than your expertise, knowing how to deliver standard repairs and maintenance but also how to network with key people that matter.
We are quite aware that to be highly competitive in the computer sales and services industry means that you are not only expected to deliver reliable computer supply, installation, repair, networking and maintenance jobs, but you must be able to meet set targets.
No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects. Our competitive advantage lies in our ability to control stock at hand, our experienced work force and proximity to key markets.
We equally have a team of certified, highly trained and experienced computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the computer sales and service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Harry & Barry® Computer Sales & Services Center, LLC will generate income by;
One thing is certain, there would always be corporate organizations and individuals who would need to purchase computers and accessories. We are well positioned to take on the available market in Sioux Falls – South Dakota and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation.
We have been able to critically examine the computer sales and services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Sioux Falls – South Dakota.
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
We are mindful of the fact that there are stiff competitions in the computer sales and services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Harry & Barry® Computer Sales & Services Center, LLC.
Our corporate goal is to grow Harry & Barry® Computer Sales & Services Center, LLC to become one of the top 10 computer sales and services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Sioux Falls – South Dakota but also in other cities in the United States of America.
Harry & Barry® Computer Sales & Services Center, LLC is set to make use of the following marketing and sales strategies to attract clients;
We have been able to work with our in-house brand and publicity consultant to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the Sioux Falls and beyond which is why we have made provisions for effective publicity and advertisement of our computer sales and services company.
Below are the platforms we intend to leverage on to promote and advertise Harry & Barry® Computer Sales & Services Center, LLC;
At Harry & Barry® Computer Sales & Services Center, LLC we will keep the prices of our products and services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would purchase our products or hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off jobs or government contracts like computer supply, installation, repair, networking and maintenance which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
The payment policy adopted by Harry & Barry® Computer Sales & Services Center, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Harry & Barry® Computer Sales & Services Center, LLC will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our clients make payments for the purchase of our products or our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials for this purpose.
From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive computer sales and services company in Sioux Falls – South Dakota and here are the key areas where we will spend our startup capital;
We would need an estimate of three hundred and fifty thousand dollars ( $350,000 ) to successfully set up our computer sales and services store in Sioux Falls – South Dakota.
Generating Startup Capital for Harry & Barry® Computer Sales & Services Center, LLC
Harry & Barry® Computer Sales & Services Center, LLC is a business that will be owned and managed by Engr. Harry Jordan and his friend and business partner Barry Martins. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
N.B: We have been able to generate about $150,000 ( Personal savings $120,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Harry & Barry® Computer Sales & Services Center, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to sell or computers and accessories and offer our computer repair and maintenance services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Harry & Barry® Computer Sales & Services Center, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
Business Plan
by BusinessPlan 3 Comments
Business Center Business Plan in Nigeria – In the Nigerian context, a business center is any business where you can carry out your official secretarial works like type setting, scanning, designing, laminating, etc for a fee. It is true that some people have invested in this business with a level of failure but most investors have recorded remarkable success starting and running a computer business center.
Also read: computer training center feasibility study in nigeria.
For as long as there are official documents to be typed, photocopied, scanned, letterheads designed and passport photography’s taken, there will always be a need for business center services in Nigeria.
Though many people now have computers and printers in their homes and offices but they often run to business centers for one or more of these reasons;
This is one business that you can start with a few thousands and be counting your hundreds of thousands in profit in a matter months. If you are interested in making money, please read along.
Acquire All Necessary Skills and Training
Computer service business is a service oriented business and hence it needs skill, experience and expertise. Therefore, you should acquire both basic and professional certification in different computer applications and programs. I will suggest you learn the following programs; Word Processing package, PowerPoint presentation, excel Spreadsheet, Coreal draw, Access Database, graphics design, etc. Being fully equipped on these computer applications and programs will definitely increase chances of your success as computer business center owner.
Write a Detailed Business Center Business Plan in Nigeria – For N10, 000, we will send you a sample business center business plan in Nigeria. Our business plan can be used for bank loans, grants, and entrepreneurship competitions. This sample business center business plan in Nigeria covers the following aspects: Executive Summary, Business Description, Products and Services, Market Analysis, Competitor Analysis, Sales and Marketing Plan, Operational Plan, Management Team, Financial Plan and Projections
To place order for this business plan, pay N10, 000 to:
BANK NAME: GUARANTY TRUST BANK (GTB)
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 0044056891
After payment, send the following details via text to 07033378184.
Depositors Name
Your email address
The title of the business plan you paid for (i.e. business centre business plan in Nigeria pdf)
Your business plan will be sent to your email within 10 minutes after payment.
Get a Space
It is important that you situate this shop near a well trafficked area. One of these locations will be ideal for a business center; A university environment, any public office such as secretariats, ministries, office complex, local government council offices, immigration office, FRSC, etc. This will guarantee a lot of turnover for you. The space does not have to be in a lock up shop. A small 8 X 8 feet iron container will do (this type that is used for importation and exportation of goods).
Your Equipment
Photocopier Machine. This is one of the main equipment you need. You will need to buy a brand new one. Although there will be people who will be willing to sell you a fairly used machine claiming it will serve the same purpose as a new one, I strongly advise that you buy a new one. This will not just last longer, it will save you the stress of frequent repairs which is usually the case with fairly used photocopier machine. Moreso, a new machine will make the photocopied documents come out sharp. To your advantage, there is also manufacturer guarantee on the new machine. Believe me; it is more economical to buy a new photocopier machine than bothering yourself over the constant fixing of an old one.
Paper. You will also need to get different sizes of printing paper. Depending on your capital, its either you buy in rims or a carton of five rims, either of the choices is okay.
Staplers and pins. There is giant paper stapler and also regular sized stapling machine too. It is advisable that you get both as you will be having customers doing high and low volumes of work.
Laptop and Desktop Computers. Your business center is incomplete if you do not own a computer system. So start with one or two systems at first. It is advisable that you acquire a laptop computer instead of a desktop computer. If you do not have enough capital then you can go for a desktop computer. The advantage that a laptop has over a desktop computer is that it saves you power. This is a good deal considering that power supply is erratic in Nigeria. The battery of your laptop can serve you for few hours that you would have spent consuming fuel if you had chosen a desktop.
Internet Modem. You will also need to get an internet modem for customers who will want to print out documents from their email. Be aware though that you are not an Internet cafe. The essence of the internet connection is so that those who want to download or upload documents can do so conveniently without going to the internet cafe.
Digital Camera and Photo Printer. There is need for instant photographs for official and other purposes. For this, you should get a digital camera with at least a lens of 8 pixels and a digital photo printer (You can make do of the “Hiti” digital printer).
Other items you will need are a spiral binding machine (Optional), generator set, UPS, tables, chairs/stools, a ceiling fan/standing fan, etc.
Hire Your Shop Attendants
It is almost impossible for you to do this business alone without hiring an assistant. This is because you have to attend to a lot of customers with different mission who can come at the same time, and most of them are usually in a hurry. Whether you are employing a male or a female, your assistant must have good knowledge of computer operations and how to handle customers. It is not difficult to come across such one. You can put up some “vacancy” posters around your area. Over time, you may need to get more attendants as your business grows. Ensure you monitor them closely because it is easy to be dishonest with the sales record in a business center.
Create Your Price List
You can create your price list by checking out what other computer business center take for a particular service they render to their customers. As a new beginner in the business, you can reduce your price on every service you render so that you can build a customer base.
It Is a Wise Investment
In summary, a business center is a profitable business you can venture into. You can start the business in a small or medium scale and grow into a mega business enterprise. The choice is yours.
Hurry now and get your own business center business plan in Nigeria + feasibility study.
To plan order, pay N10,000 to:
BANK NAME: GUARANTY TRUST BANK (GTB) ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM ACCOUNT NUMBER: 0044056891 OR BANK NAME: FIRST BANK PLC ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM ACCOUNT NUMBER: 3066880122
After payment, send your name, email address and title of business plan (i.e. business center business plan in Nigeria pdf) via text to 07033378184. Your business plan will be sent to your email within 10 minutes after payment. Thank you.
Business Center Business Plan in Nigeria / Starting a Business Center Services © www.businessplan.com.ng
Thank you for the breakdown. I wish it’s possible to go deeper. Actually, my major concern is location as i’ve been going about looking for a befitting location for my business. Pls, kindly advise me on a suitable location in Abuja. Also, will #2million startup this business inside Abuja main town?
Looking forward to your favourable response.
It was helpful but what about someone who do not have money to buy a new photocopy machine which is not less than 200k as a starter?
In case of default on your part how do I get my money back?
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Miscellaneous - $5,000. Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand (450,000) U.S. dollars to successfully set up a medium scale but standard computer training center business in the United States of America.
For a Sample Computer Business Centre Business Plan in Nigeria, Complete Full Marks Consultants Limited as an accounting, auditing, taxation and business consulting firm assists clients with business information; incorporate clients companies and name registration at CAC Nigeria, prepares clients business plans, tax clearance certificates, and ...
This business plan is a 5 years document that spells out the needs, procedures and financial associations of the center towards achieving its goals. We assume ourselves the Visionempower teenage mothers with vocational skills, make : them free and see them capable of making a better life for many& a Motto: Vocational skills
When starting a computer center business, it is crucial to develop a comprehensive business plan. A well-crafted business plan serves as a roadmap for success and provides essential guidance for decision-making and resource allocation. This section will explore the importance of a business plan and the key components it should include.
A computer business centre is a place where services like word processing, data processing, accounting, fax facilities, internet café, photocopying, lamination, typing, scanning, binding, online registrations, digital passports, instant photo printing. With best location, this business can fetch revenues and profit. ...
Find various types of business plan PDF templates and samples for organizations of any size and type. Download and customize simple, one-page, small, startup, or nonprofit business plans.
2.5 Key Success Factors: Investigate the fundamentals that comprise your business plan for a computer shop to set yourself up for success in terms of appearance and design. Download this business plan . 3. Industry Analysis. You may get a detailed look at the state and prospects of the computer shop sector by reading the industry analysis.
1. Describe the Purpose of Your Computer Business. The first step to writing your business plan is to describe the purpose of your computer business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.
Download Business Plan Of Computer Training Centre. Type: PDF. Date: November 2019. Size: 494.2KB. This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA.
P36,549. P71,702. P106,946. P142,281. Download This Plan. Explore a real-world computer support business plan example and download a free template with this information to start writing your own business plan.
Marketing promotion expenses for the grand opening of Harry & Barry® Computer Sales & Services Center, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580. The cost for hiring business consultant - $2,500.
A business plan has 2 main parts: a financial forecast outlining the funding requirements of your business center and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.
Learn how to start and run a computer business center in Nigeria with this comprehensive guide. Find out the skills, equipment, location, price list and sample business plan for this service-oriented business.
21.5 ACTIVITIES FOR COMPUTER BUSINESS CENTRE. The main activities which a computer Business center may carry on are Word Processing: You may do Word Processing jobs like preparing personal/ business letters of individuals, small traders and business firms. Bio-data/resume for the purpose of jobs and marriages may also be prepared.
Michael's Business Centre is a start-up business, providing clients with photocopying, fax transmittal and reception services and access to self-serve computer workstations with a full array of software and Internet capabilities. The Canadian retail business services industry currently generates $350 million in annual sales.
Business Center Business Plan. 2 BACKGROUND of the computer business centre business proposal 2 INTRODUCTION The business enterprise opened for the past five years now, student center University of Nigeria Nuskka campus as a result of assessment studies that there is no standard business centre with complete equipment for operation. CHEKY J ...