Start-up | |
Requirements | |
Start-up Expenses | |
Business License & Legal | $1,200 |
Stationery etc. | $100 |
Brochures | $25 |
Consultants | $0 |
Insurance | $150 |
Rent | $0 |
Rental Deposit | $1,300 |
Research and Development | $0 |
Expensed Equipment | $0 |
Display Shelving * | $500 |
Display for Custom-built Systems | $400 |
Display Cabinet * | $450 |
Main Store Sign | $75 |
Store Signs for Windows | $125 |
Installed Security System | $1,200 |
Storage Shelving for Inventory | $50 |
Workstations (4) | $200 |
Workstation Monitors (4) | $400 |
2 Additional Circuits for 4 Total Outlets | $600 |
Carpet | $1,100 |
Painting | $100 |
Other | $0 |
Total Start-up Expenses | $7,975 |
Start-up Assets | |
Cash Required | $2,025 |
Start-up Inventory | $10,000 |
Other Current Assets | $0 |
Long-term Assets | $0 |
Total Assets | $12,025 |
Total Requirements | $20,000 |
Most people today use computers either at work or at home. It is important that people have a quality resource for buying and servicing those computers. Eagle Computers will provide the West Hawaii community with just such a quality resource – a one-stop shop for IBM-compatible computers. Eagle Computers will offer the following products and services with excellent customer service in a friendly, professional, and pleasant environment:
Market research shows that customers on the West side of Hawaii County go to Kailua-Kona for their technological needs. Because of this, if a computer store is located in Kailua-Kona, the prime market is a 20-mile radius, within the North Kona and South Kona districts. Also, Kailua-Kona is the main center for tourism on the Big Island of Hawaii. Eagle Computers will be located in Kailua-Kona. The following demographics were gathered from the official Hawaii County website, the official Hawaii government website and the Kona-Kohala Chamber of Commerce:
These demographics illustrate a favorable climate for the success of Eagle Computers. Also, in 2001, a new transpacific cable linking Australia to the U.S. mainland via Hawaii provided increased bandwidth to the islands, which has increased the availability of high-speed Internet access to Hawaii computer users.
Our market segmentation focuses on residents, small businesses, and tourists to the Big Island of Hawaii. However, the tourist market segment has very different needs, so the income potential is vastly different than the other two market segments. The income potential analysis is as follows:
Though the numbers in our market segmentation scheme show that the tourist segment makes up the largest portion of potential customers, they do not actually represent the largest income potential. The average tourist is in Kona for about a week and will not be in the market to purchase a computer or have one repaired. However, many tourists want to be able to access the Internet and check their e-mail. We will satisfy this need with our Computer Rental Stations. Tourists will be able to rent time at a Computer Rental Station to browse the Internet, check e-mail, and download their digital photos from their camera memory cards onto discs. The fees we will charge to rent the Stations will be modest, but since there will be no actual product leaving the store for this service, the rental fees are straight profit. We expect these Rental Stations to generate approximately 10% of the business’ profit, so the income from the tourist market segment is actually 10%.
In terms of income potential, the largest market segment is actually the local consumers. This segment is represented in the market segmentation scheme under the heading “Resident Households”. According to the official website for the state of Hawaii, in 2000, 52.4% of Hawaii households had computers. In fact, many households have more than one computer. Consumers need a place to repair and upgrade the computers they already have as well as purchase new computers and parts with the latest technology. Currently, the local residents have very limited resources for purchasing computers or parts. Their options are: a) order computers and computer parts over the Internet, which incurs shipping costs and prevents hands-on inspection by the purchaser; or b) buy a computer from Costco, which only offers a handful of different models and there is no option to customize the computer to match the purchaser’s specific needs. Eagle Computers will resolve these issues for local consumers by selling computers and computer parts that are of the latest technology. We will have computers on display so that a customer can do a hands-on inspection before purchasing. We will also sell custom-built computers and do in-store upgrades so that customers can purchase computers that match their specific needs. In addition, we will offer in-store repair service and guarantee our products. Computers sales, upgrades, and repairs generate a much greater income than the Computer Rental Stations will. We expect the local consumer market segment to provide 50% of the business income.
The remaining 40% of our business income will be generated by the small business market segment. 77% of the businesses in Hawaii are small businesses with less than 10 employees. These small businesses are large enough to need the high-quality computer technology we offer, but too small to have a separate computer management staff. This segment is largely overlooked by most business-focused computer resources because of its “low end” buying habits, and a reluctance to compete with the major retail chain box movers. This currently leaves the small businesses with the same limited resources as are available to the local consumers. As with the local consumers, we will resolve these issues for the small business market segment by providing affordably-priced, high-quality products of the latest technology, customized according to each business’ unique needs. Our full-service computer diagnosis and repair service will provide quality work within an expedient turn-around time. Small businesses cannot afford to wait very long for computer repairs or servicing. We will also offer full networking solutions, including wireless networking.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Resident Households | 2% | 56,243 | 57,396 | 58,573 | 59,774 | 60,999 | 2.05% |
Small Businesses | 2% | 2,956 | 3,017 | 3,079 | 3,142 | 3,206 | 2.05% |
Tourists | 2% | 1,035,682 | 1,056,913 | 1,078,580 | 1,100,691 | 1,123,255 | 2.05% |
Total | 2.05% | 1,094,881 | 1,117,326 | 1,140,232 | 1,163,607 | 1,187,460 | 2.05% |
Analysis of our market segmentation shows that 90% of our income will be generated by local consumers and small businesses, with the remaining 10% being generated by tourists. Advertising strategy to the local market segments will differ from advertising strategy to the tourism segment in the following ways:
Advertising to Local Consumers and Small Businesses:
Advertising to Tourists:
Eagle Computers is part of the retail computer industry, which includes several types of businesses:
Consumers and small business buyers understand the concept of service and support, and are much more likely to pay for it when the offering is clearly stated.
There is no doubt that we compete much more against all the box pushers than against other service providers. We need to effectively compete against the idea that businesses should buy computers as plug-in appliances that don’t need ongoing service, support, and training.
Research indicates that our target consumers and small businesses think about price but would buy based on quality service if the offering were properly presented. They think about price because that’s all they ever see. We have very good indications that many would rather pay 10-20% more for a relationship with a long-term vendor providing back-up and quality service and support; they end up in the box-pusher channels because they aren’t aware of the alternatives.
Availability is also very important. Consumers and small business buyers tend to want immediate, local solutions to problems.
Our target market consists of consumers, small businesses and home offices (less than 10 employees), and tourists. Our sales and marketing strategy will consist of offering a wide selection of quality products and services, a friendly pleasant atmosphere, and a convenient location in the center of Kailua-Kona with accessibility to locals and tourists alike. We will establish ourselves in the community through word-of-mouth referrals from our satisfied clients, and various forms of advertising.
Our competitive edge is a combination of our wide range of products and services, outstanding location, and our interaction with our clients. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they should both stay with Eagle Computers, and refer us to others in the community. In close-knit communities like the Big Island of Hawaii, reputation is extremely important, and word-of-mouth advertising is invaluable.
Our marketing strategy is a simple one: satisfied customers are our best marketing tool. The first time a customer comes to Eagle Computers, they will know that they have found a one-stop shop for all of their computer needs, including a friendly personal atmosphere with exceptional customer service. We have talked with many friends and associates who are excited about our plans and are anxious to shop with us and use our services. Word of mouth and a good reputation are the best marketing tools in a close-knit community such as ours.
In addition, we will have a website, do radio and newspaper advertising, distribute flyers to local businesses, and advertise in the Yellow Pages. These venues will help us become known as we establish our business.
Our umbrella sales strategy is to sell Eagle Computers to the West Hawaii community as the best resource for their computer needs, enhancing their lives with our quality, latest-technology products, the convenience of our one-stop shop, affordable pricing and the reliable professional service we offer.
We will sell Eagle Computers through each employee’s expertise, courtesy, and warmth, creating a trusting impression on all customers, and establishing loyalty and return visits. We will ensure each visit to Eagle Computers is a professional and pleasant experience, so that customers can always depend on our brand of service when they arrive.
We expect to have a customer return rate of 90% at the end of the first year and for sales to increase to over a quarter-million dollars by end of second year.
The important elements of the Sales Forecasts are shown in the chart and table below. Initial sales forecast indicate a healthy first year revenue increasing modestly but steadily in the second and third year. These figures are based on revenue from three main areas:
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Computer Sales | $156,500 | $164,325 | $172,541 |
Computer Repairs | $53,000 | $58,300 | $64,130 |
Computer Rental Stations | $10,050 | $10,352 | $10,662 |
Total Sales | $219,550 | $232,977 | $247,333 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Computer Parts | $109,550 | $111,741 | $113,976 |
Row 3 | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $109,550 | $111,741 | $113,976 |
The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan | 9/25/2003 | 10/23/2003 | $100 | Judy | Management |
Negotiate/Sign Store Front Lease | 10/22/2003 | 11/1/2003 | $0 | Jim | Management |
Build Displays & Set Up Store Interior | 11/1/2003 | 12/1/2003 | $6,050 | Jim | Management |
Secure Business Name and Legal | 11/1/2003 | 11/15/2003 | $1,200 | Judy | Management |
Obtain Financial Backing | 11/1/2003 | 12/1/2003 | $0 | Judy | Management |
Print Business Stationary & Flyers | 11/15/2003 | 12/1/2003 | $125 | Judy | Management |
Grand Opening for Store | 12/1/2003 | 12/7/2003 | $50 | Jim | Management |
Distribute Flyers | 12/1/2003 | 12/7/2003 | $20 | Judy | Management |
Research Media Advertising | 1/1/2004 | 1/15/2004 | $0 | Judy | Management |
Print & Distribute 2nd Group of Flyers | 2/1/2004 | 2/15/2004 | $50 | Judy | Management |
Totals | $7,595 |
The management philosophy of Eagle Computers is based on respect for each of our fellow employees, respect for every client, and individual responsibility. We believe in listening to our clients and doing our best to embody their vision of a community-minded business dedicated to meeting all their computer needs. Our management team consists of the owners, who are experienced entrepreneurs possessing a breadth of functional experience in computer technology, information technology, management and retail. Both Jim Johnson and Judy Johnson will share the senior management responsibilities with Jim directing the sales, development, operations and production, and Judy directing the finances and marketing.
We still need to find a networking specialist for our clients who require that service, but as the need for that will be on a job-by-job basis, we will use an independent contractor. We already know of a couple of qualified candidates.
When the need arises to hire employees, we will hire only employees who demonstrate technical aptitude and a dedication to excellent customer service. The organizational structure and personnel plan reflect our intentions to maintain an organization that is customer oriented and technologically proficient, while efficiently managing cost controls and productivity.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Jim Johnson | $33,000 | $36,000 | $40,000 |
Judy Johnson | $16,500 | $21,000 | $25,000 |
Total People | 2 | 2 | 2 |
Total Payroll | $49,500 | $57,000 | $65,000 |
The following subtopics help present the financial plan for Eagle Computers.
The key underlying assumptions of our financial plan shown in the following general assumption table are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
For our break-even analysis, we assume running costs which include our full payroll, rent and utilities, and an estimation of other running costs.
We will monitor gross margins very closely, and maintain them at or above 50% by taking advantage of all promotions and discounts offered by our manufacturers and by our higher-profit revenue generators of computer service and Computer Rental Stations.
The chart shows what we need to sell per month to break even, according to these assumptions. This is about 6% of our projected sales for our first year.
Break-even Analysis | |
Monthly Revenue Break-even | $12,868 |
Assumptions: | |
Average Percent Variable Cost | 50% |
Estimated Monthly Fixed Cost | $6,447 |
There are two important assumptions with our Projected Profit and Loss statement:
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $219,550 | $232,977 | $247,333 |
Direct Cost of Sales | $109,550 | $111,741 | $113,976 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $109,550 | $111,741 | $113,976 |
Gross Margin | $110,000 | $121,236 | $133,357 |
Gross Margin % | 50.10% | 52.04% | 53.92% |
Expenses | |||
Payroll | $49,500 | $57,000 | $65,000 |
Sales and Marketing and Other Expenses | $280 | $280 | $280 |
Depreciation | $0 | $0 | $0 |
Rent | $15,600 | $15,600 | $15,600 |
Utilities | $3,600 | $3,600 | $3,600 |
Security Alarm System | $360 | $360 | $360 |
Insurance | $600 | $600 | $600 |
Payroll Taxes | $7,425 | $8,550 | $9,750 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $77,365 | $85,990 | $95,190 |
Profit Before Interest and Taxes | $32,635 | $35,246 | $38,167 |
EBITDA | $32,635 | $35,246 | $38,167 |
Interest Expense | $3,310 | $2,974 | $2,624 |
Taxes Incurred | $8,797 | $9,681 | $10,663 |
Net Profit | $20,527 | $22,590 | $24,880 |
Net Profit/Sales | 9.35% | 9.70% | 10.06% |
Our projected cash flow includes planned borrowing to increase our capital and thereby ensure a positive cash balance while our business is becoming established. Though the cash flow is negative on and off throughout the year, we will maintain a healthy cash balance, which steadily increases in both the second and third years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $219,550 | $232,977 | $247,333 |
Subtotal Cash from Operations | $219,550 | $232,977 | $247,333 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $35,000 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $254,550 | $232,977 | $247,333 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $49,500 | $57,000 | $65,000 |
Bill Payments | $136,766 | $156,082 | $157,370 |
Subtotal Spent on Operations | $186,266 | $213,082 | $222,370 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $3,504 | $3,504 | $3,504 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $189,770 | $216,586 | $225,874 |
Net Cash Flow | $64,780 | $16,390 | $21,460 |
Cash Balance | $66,805 | $83,195 | $104,655 |
Our Projected Balance Sheet shows we will not have any difficulty meeting our debt obligations as long as our revenue projections are met.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $66,805 | $83,195 | $104,655 |
Inventory | $12,320 | $12,566 | $12,818 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $79,125 | $95,762 | $117,473 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $79,125 | $95,762 | $117,473 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $15,076 | $12,627 | $12,962 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $15,076 | $12,627 | $12,962 |
Long-term Liabilities | $31,496 | $27,992 | $24,488 |
Total Liabilities | $46,572 | $40,619 | $37,450 |
Paid-in Capital | $20,000 | $20,000 | $20,000 |
Retained Earnings | ($7,975) | $12,552 | $35,142 |
Earnings | $20,527 | $22,590 | $24,880 |
Total Capital | $32,552 | $55,142 | $80,023 |
Total Liabilities and Capital | $79,125 | $95,762 | $117,473 |
Net Worth | $32,552 | $55,142 | $80,023 |
The company’s projected business ratios are provided in the table below. The final column, Industry Profile, shows the industry profile ratios based on the Standard Industrial Classification (SIC) code 5734, Computer and Software Stores.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 6.12% | 6.16% | 5.90% |
Percent of Total Assets | ||||
Inventory | 15.57% | 13.12% | 10.91% | 28.69% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 23.57% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 76.76% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 23.24% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 19.05% | 13.19% | 11.03% | 38.11% |
Long-term Liabilities | 39.81% | 29.23% | 20.85% | 12.34% |
Total Liabilities | 58.86% | 42.42% | 31.88% | 50.45% |
Net Worth | 41.14% | 57.58% | 68.12% | 49.55% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 50.10% | 52.04% | 53.92% | 32.91% |
Selling, General & Administrative Expenses | 40.75% | 42.34% | 43.86% | 16.33% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 3.48% |
Profit Before Interest and Taxes | 14.86% | 15.13% | 15.43% | 1.13% |
Main Ratios | ||||
Current | 5.25 | 7.58 | 9.06 | 1.84 |
Quick | 4.43 | 6.59 | 8.07 | 0.96 |
Total Debt to Total Assets | 58.86% | 42.42% | 31.88% | 53.76% |
Pre-tax Return on Net Worth | 90.09% | 58.52% | 44.42% | 2.48% |
Pre-tax Return on Assets | 37.06% | 33.70% | 30.26% | 5.36% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 9.35% | 9.70% | 10.06% | n.a |
Return on Equity | 63.06% | 40.97% | 31.09% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 8.98 | 8.98 | n.a |
Accounts Payable Turnover | 10.07 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 33 | 30 | n.a |
Total Asset Turnover | 2.77 | 2.43 | 2.11 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 1.43 | 0.74 | 0.47 | n.a |
Current Liab. to Liab. | 0.32 | 0.31 | 0.35 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $64,048 | $83,134 | $104,511 | n.a |
Interest Coverage | 9.86 | 11.85 | 14.55 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.36 | 0.41 | 0.47 | n.a |
Current Debt/Total Assets | 19% | 13% | 11% | n.a |
Acid Test | 4.43 | 6.59 | 8.07 | n.a |
Sales/Net Worth | 6.74 | 4.23 | 3.09 | 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 | |||||||||||||
Computer Sales | 0% | $8,000 | $10,000 | $12,000 | $12,500 | $12,500 | $13,000 | $13,500 | $14,000 | $14,500 | $15,000 | $15,500 | $16,000 |
Computer Repairs | 0% | $2,000 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | $5,600 | $5,700 | $5,800 | $5,900 |
Computer Rental Stations | 0% | $650 | $700 | $750 | $800 | $850 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
Total Sales | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
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 | |
Computer Parts | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
Row 3 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 |
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 | ||
Jim Johnson | 0% | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Judy Johnson | 0% | $1,000 | $1,000 | $1,000 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 |
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 | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
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 | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
Direct Cost of Sales | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $5,600 | $7,000 | $8,400 | $8,750 | $8,750 | $9,100 | $9,450 | $9,800 | $10,150 | $10,500 | $10,850 | $11,200 | |
Gross Margin | $5,050 | $6,200 | $7,350 | $8,050 | $8,600 | $9,300 | $9,950 | $10,600 | $10,850 | $11,100 | $11,350 | $11,600 | |
Gross Margin % | 47.42% | 46.97% | 46.67% | 47.92% | 49.57% | 50.54% | 51.29% | 51.96% | 51.67% | 51.39% | 51.13% | 50.88% | |
Expenses | |||||||||||||
Payroll | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
Sales and Marketing and Other Expenses | $0 | $0 | $70 | $0 | $0 | $70 | $0 | $0 | $70 | $0 | $0 | $70 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Security Alarm System | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
Insurance | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Payroll Taxes | 15% | $450 | $450 | $450 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,130 | $5,130 | $5,200 | $6,855 | $6,855 | $6,925 | $6,855 | $6,855 | $6,925 | $6,855 | $6,855 | $6,925 | |
Profit Before Interest and Taxes | ($80) | $1,070 | $2,150 | $1,195 | $1,745 | $2,375 | $3,095 | $3,745 | $3,925 | $4,245 | $4,495 | $4,675 | |
EBITDA | ($80) | $1,070 | $2,150 | $1,195 | $1,745 | $2,375 | $3,095 | $3,745 | $3,925 | $4,245 | $4,495 | $4,675 | |
Interest Expense | $289 | $287 | $284 | $282 | $280 | $277 | $275 | $272 | $270 | $267 | $265 | $262 | |
Taxes Incurred | ($111) | $235 | $560 | $274 | $440 | $629 | $846 | $1,042 | $1,097 | $1,193 | $1,269 | $1,324 | |
Net Profit | ($258) | $548 | $1,306 | $639 | $1,026 | $1,469 | $1,974 | $2,431 | $2,559 | $2,784 | $2,961 | $3,089 | |
Net Profit/Sales | -2.43% | 4.15% | 8.29% | 3.80% | 5.91% | 7.98% | 10.18% | 11.92% | 12.18% | 12.89% | 13.34% | 13.55% |
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 | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
Subtotal Cash from Operations | $10,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $35,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $45,650 | $13,200 | $15,750 | $16,800 | $17,350 | $18,400 | $19,400 | $20,400 | $21,000 | $21,600 | $22,200 | $22,800 | |
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 | $3,000 | $3,000 | $3,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
Bill Payments | $136 | $4,306 | $11,252 | $12,953 | $12,038 | $11,857 | $12,833 | $13,329 | $13,870 | $14,339 | $14,715 | $15,140 | |
Subtotal Spent on Operations | $3,136 | $7,306 | $14,252 | $17,453 | $16,538 | $16,357 | $17,333 | $17,829 | $18,370 | $18,839 | $19,215 | $19,640 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | $292 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $3,428 | $7,598 | $14,544 | $17,745 | $16,830 | $16,649 | $17,625 | $18,121 | $18,662 | $19,131 | $19,507 | $19,932 | |
Net Cash Flow | $42,222 | $5,602 | $1,206 | ($945) | $520 | $1,751 | $1,775 | $2,279 | $2,338 | $2,469 | $2,693 | $2,868 | |
Cash Balance | $44,247 | $49,849 | $51,056 | $50,111 | $50,631 | $52,382 | $54,157 | $56,436 | $58,774 | $61,243 | $63,936 | $66,805 |
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 | $2,025 | $44,247 | $49,849 | $51,056 | $50,111 | $50,631 | $52,382 | $54,157 | $56,436 | $58,774 | $61,243 | $63,936 | $66,805 |
Inventory | $10,000 | $6,160 | $7,700 | $9,240 | $9,625 | $9,625 | $10,010 | $10,395 | $10,780 | $11,165 | $11,550 | $11,935 | $12,320 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $12,025 | $50,407 | $57,549 | $60,296 | $59,736 | $60,256 | $62,392 | $64,552 | $67,216 | $69,939 | $72,793 | $75,871 | $79,125 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $12,025 | $50,407 | $57,549 | $60,296 | $59,736 | $60,256 | $62,392 | $64,552 | $67,216 | $69,939 | $72,793 | $75,871 | $79,125 |
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 | $0 | $3,933 | $10,819 | $12,551 | $11,644 | $11,430 | $12,389 | $12,867 | $13,392 | $13,849 | $14,211 | $14,620 | $15,076 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $3,933 | $10,819 | $12,551 | $11,644 | $11,430 | $12,389 | $12,867 | $13,392 | $13,849 | $14,211 | $14,620 | $15,076 |
Long-term Liabilities | $0 | $34,708 | $34,416 | $34,124 | $33,832 | $33,540 | $33,248 | $32,956 | $32,664 | $32,372 | $32,080 | $31,788 | $31,496 |
Total Liabilities | $0 | $38,641 | $45,235 | $46,675 | $45,476 | $44,970 | $45,637 | $45,823 | $46,056 | $46,221 | $46,291 | $46,408 | $46,572 |
Paid-in Capital | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
Retained Earnings | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) | ($7,975) |
Earnings | $0 | ($258) | $290 | $1,596 | $2,235 | $3,261 | $4,729 | $6,704 | $9,134 | $11,693 | $14,478 | $17,439 | $20,527 |
Total Capital | $12,025 | $11,767 | $12,315 | $13,621 | $14,260 | $15,286 | $16,754 | $18,729 | $21,159 | $23,718 | $26,503 | $29,464 | $32,552 |
Total Liabilities and Capital | $12,025 | $50,407 | $57,549 | $60,296 | $59,736 | $60,256 | $62,392 | $64,552 | $67,216 | $69,939 | $72,793 | $75,871 | $79,125 |
Net Worth | $12,025 | $11,767 | $12,315 | $13,621 | $14,260 | $15,286 | $16,754 | $18,729 | $21,159 | $23,718 | $26,503 | $29,464 | $32,552 |
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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
IMAGES
COMMENTS
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Writing a software company business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready ...
Develop A Software Company Business Plan - The first step in starting a business is to create a detailed software company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
The Best Business Plan Software of 2024. Wrike: Best overall. Smartsheet: Best for goal management. LivePlan: Best for financial forecasting. Aha!: Best for roadmapping. Bizplan: Best for ...
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
The executive summary of a software business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your software company. Provide a short summary of the key points in each section of your ...
Click the 'Download Tool' button to gain access to the word document. You can also find the same example in the Business Plan Writer, our free online tool that guides you through the process of starting your business. Just select "computer/software application" as your industry when you register. Good luck and happy writing!
Draft a computer business plan. Creating a business plan is a critical step in laying the foundation for a successful computer business. It serves as a roadmap, detailing your business goals, strategies, and how you plan to achieve them. ... Business Software and Applications - can vary greatly depending on the types of software and ...
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.
Starting a computer software business is an exciting prospect but also challenging. The key to success is careful planning and preparation. A comprehensive business plan helps you outline your vision…
Step 3: Brainstorm a Software Company Name. Here are some ideas for brainstorming your business name: Short, unique, and catchy names tend to stand out. Names that are easy to say and spell tend to do better. Name should be relevant to your product or service offerings.
Explore a real-world computer programming business plan example and download a free template with this information to start writing your own business plan. ... compared to 2000, while PC entertainment software experienced a unit increase of 3.8 percent. The main challenge is that while unit sales are expected to rise rapidly, development and ...
A Sample Software Development Business Plan Template. 1. Industry Overview. The software development industry has grown in the space of a century from an almost on-existent industry to one that is not only a billion dollar industry but an indispensable one, especially as software form the basis of modern gadgets and devices.
As with tax preparation software, it's reassuring when the business planning software solution defines terms, provides sample data, and explains the sort of information expected in each field ...
1. LivePlan. Best overall business plan software. If you want template-rich, modern-feeling business plan software, then LivePlan may be the right pick for you. LivePlan excels with their user ...
It's proven, companies that plan and track against their plan grow 30% faster than those that don't. No matter your industry, location, or size — LivePlan helps you get your business off the ground and grow. "It wasn't my intention to be an entrepreneur or a business person. My intention was to work with dogs.
The best business plan software makes it simple and easy to plan your business finances in order to present them to a bank or investors. Best business plan software of 2024: quick menu. (Image ...
Costs for wholesale computer hardware is expected to have a 2% annual increase. Computer Service - revenue generated strictly from labor fees, so except for payroll, there is no sales cost. We estimate a 10% annual increase in this revenue area from repeat business as a result of customer loyalty.
Delivered in slick, cloud service packaging, Palo Alto Software's LivePlan is a very nice business planning tool that comes complete with loads of customizable features and solid online help and ...
A Sample Computer Sales & Services Business Plan Template 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.
Banks and other funders will want to see a traditional business plan before they loan your company money. A traditional computer repair business plan includes: an executive summary. a company description. a competitive market analysis. business structure and service offerings information. marketing and sales plans.